Developing Your List (Part 1 of 4): Stakeholder Family

[Darryl Swain]

It can be challenging to find donors to make contributions to your organization or project. Procuring funds from strangers is a tough sell and has a high failure rate. So why do so many charities try to do just that? Why do they seek sponsors, host events and solicit indivuals with whom they have no prior relationship? Why do they simultaneously not appraoch the people who are most likely to make donations - people they already have a relationship with? Why do they ask strangers instead of their family of stakeholders?

A stakeholder family is not an actual biological family, but rather an organizational web of individuals who are closely connected to the charity that’s raising money. Examples of members of the family (past, present and future) are board members, committee members, volunteers, staff, and other people that are part of the organization’s operations.

Members of the stakeholder family already care the most about what the organization does, require less education to teach them about the needs and the cause you’re raising funds for and have already demonstrated a commitment to the organization. That’s what makes them such good potential donors!

It’s a common misconception to feel that someone who is already giving shouldn’t be asked again to give more. Current donors might be providing money or time as they serve as board members or volunteers, but it’s remiss to think that if they’re already donating their time, that they shouldn’t be asked for a cash donation. Often it is the organization that feels uncomfortable asking for further commitment rather than the prospective donor. Asking someone to do more is not an imposition but another opportunity to help a cause they care about succeed.

Another misconception is that staff members and employees won’t give to their own organization. It’s believed that asking them to contribute would be akin to having them donate to pay their own wages. Well this simply isn’t true. Staff may not contribute money to pay for their own salaries, but they will give to support programs and services that help the clients of the organization.

Far more so than the new donors (strangers) usually approached, an organization's board members, committee members, staff and volunteers make the best potential donors and will contribute at a higher success rate IF they’re asked to donate. This is the best possible place to start looking for donations.

In Part 2 of this article series we'll look at who else is connected to your organization in the second tier of donors.

To learn more, visit EXCEL Fundraising Inc.'s website for information on training opportunities.