The current strain on the social sector is real whether you are a small shop run by volunteers or a large multi-million dollar budget organization…or anything in between.

Day after day I see that the organizations faring the best have a high level of “social capital” — meaning they have a vast and committed network of relationships built with people inside and outside the organization. Why this is so important is that the success of the organization doesn’t rely just on a charismatic engaging board chair or executive director but on the value of the whole organization and their networks’ willingness to be involved.

Here’s an excerpt and recap from a great read: “Social Capital” is a Charity’s Best Investment by Shirley Sagawa and Deborah Jospin published in The Chronicle of Philanthropy, November 27, 2009:

Social capital matters because it leads to all other forms of capital that nonprofit groups need to make a difference, including financial, political, and human capital. Attracting resources is far easier if a nonprofit group has a strong network of dependable relationships at the ready.

To build their social capital, charismatic organizations do several things. Study after study finds that people who support nonprofit organizations, whether as donors, volunteers, or staff members, do so because they want to make a difference. Therefore organizations that want to build their social capital must not only work hard to carry out their charitable goals but also be prepared to show their results with hard numbers and engaging stories. Becoming more focused on results and data makes a nonprofit group more, not less, peoplefocused. Telling their stories compellingly makes them all the more attractive.

Second, people want to be part of a community, and they feel a greater sense of community when they are asked to participate in multiple ways. Charismatic organizations build an appealing culture and make it easy for people to become engaged in their cause, not just as donors but also as volunteers, advisers, and advocates.

Nonprofit groups that want to survive the downturn should:

• Ask for something other than money.
• Keep in mind that while donor dollars may be limited, volunteers may offer an embarrassment of riches.
• Make sure they’re getting results.
• Keep a can-do culture.
• Figure out social networking and other new technologies.
• Collaborate with other organizations to expand a charity’s reach and stretch every dollar
• Invest in people.

I recommend using this list to have meaningful discussions with board and staff about how you are not only striving to raise more dollars, but increasing your level of social capital so that the next time you invite your community to take action they do.

I’ve been asked questions like this often, but recently received this specific question and it seemed like a good one to share at the beginning of the year when you are making plans about your development efforts for the year:

“The organization that I work for has a great base of donors but the top of our pyramid only has 3 donors that we heavily rely on for support. How can we move some of our donors up the donor pyramid?” – from Sacha.

The easy answer is: Ask. Ask more of your donors to increase their gift size at in person meetings AFTER you have spent time with them one-on-one to learn more about WHY they give in the first place.

And, there is more to it than that.

Getting donors to give MORE once they start supporting and investing in your organization is part of what I call the “fun” of development work. Here are a few suggestions on how to create a system to always be working on this:

1. Take a look at your donor list and identify who has given faithfully over a few years, at a significant level, which might be $100 for some organizations or $500 in others and even $1000+ in others. Choose a group of 15 or 20 to start with.

2. Review this list with key leadership (board & staff and even former board members). Identify who would be the very best person to approach each donor to get to know them more deeply and engage them in the work of your organization.

3. Do some donor research next. Either use a firm who handles this or use this list of sites that I identified awhile back to help you dig around and learn more about capacity to give and their interests. Digging For Gold

4. Armed with that data and information, set a goal for what size give you want to invite from each person on the list.

5. Simultaneously, make sure the written messages on your newsletter, website and print materials is very, very clear about what you need the money for…and why more dollars are needed. Don’t ask, but share the facts about cost of your services, waiting lists, and so on.

6. Begin to set visits or phone calls with those identified on your list. Most important in those meetings is to LISTEN to them. Learn more about them. Learn what it is about your work that gets them excited and feeling connected.

7. I’m a big fan of letting the person know that I’d like to ask them to increase their gift, but that I believe they are not ready to do that yet, so I’ll be asking them to do that later, when we’ve spent some time together and I’m certain they ARE ready.

8. Always, on each visit, phone call, email and thank you letter or note, let them know about the waiting list for your services or what you are not able to do today due to limited resources.

9. Keep in touch with these special people gently, so as not to annoy them. Have a board member put a personal note on their thank you letter for their next contribution. Have someone phone them personally to invite them to see the graduation ceremony of your students or volunteers. Expect that only 20-25% will ever attend such functions, but that the phone call alone is doing the work to keep this person connected and engaged.

10. When you KNOW for certain that this person really does love your organization and has the means to say yes to what you want them to do: ASK. But WHO asks is key. It must be the very person they can’t say no to. That could be a client, a former board member, a friend of theirs or you.

11. When they do say yes, for whatever amount they agree to, acknowledge them quickly and personally. AND keep in touch all year long after the gift is given. Don’t forget them and ignore their investment.

This is a short list with lots more I could share about moving people up the donor pyramid. Check out these books for more great tips and strategies about both retaining donors and inviting gifts:

Donor Centered Fundraising, Penelope Burk
Yours For the Asking, Reginald Levy
Asking: A 59 Minute Guide, Jerold Panas

Last week I was surprised that most of the organizations I came into contact with had not yet taken time to create their annual fund development plan for 2010. Lots of “to do” lists were being created but they seemed based on reaction and not on reaching an actual goal.

Whether you take 30 minutes, 3 hours or 3 days, it’s one of the best investments you can make to create the framework for your annual development efforts by drafting a plan.

Some questions to ask to figure out the plan:

• What is the shortfall in each of our program areas?
• What is our total goal for fundraising?
• What methods of fundraising do we have in place that we can count on? i.e. grants, government funding, multi-year pledge payments, etc.
• What does each fundraising appeal or event need to generate in dollars, new donors, new money and retained donors, to be successful?
• What communication will support our goals?
• How will the board be involved in helping reach our goals?

I’ve posted two sample annual fund development plans here on my site to get you started. Use one of these, or combine them and make them better, or use your own framework. Just use something to plan so you can be sure you DO make your goals this year.

A thoughtful read on the topic that I tweeted out recently: It’s a New Year — Do You Need a New #Fundraising Plan?

My goal is to help YOU be successful in raising the dollars you need. Let me know if you have other ideas on how to create an annual development plan that work better for you.

Go forth and multiply!

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