Michelle Harder

Michelle Harder

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FUNDRAISING | Account-Based Marketing or Major Gift Fundraising?

I started my post-secondary academic career at a local college in Calgary, Mount Royal College (which is now classified as a university). My faculty of choice was economics and business. That is not where I ended up. However, I have always had a keen interest in the psychology of human behaviour in business.

The latest, greatest thing in business right now is ABM, or account-based marketing. Basically, instead of trying to appeal to the masses, identifying high-quality leads who are more likely to become a buyer/client is the strategy. By focusing on one client and tailoring the pitch specifically to them, higher conversion rates are being achieved.

I've never liked the comparison of fundraising and sales because (in my opinion) they are not really the same at all. But more and more, the strategies and tactics used by business to garner the attention (and dollars) of our donors are looking familiar. Why? Because a fundraiser's approach to getting a person's attention so they will listen to what you're selling or offering, works. And this is interesting because the flow of knowledge generally has gone the other way-from business (private sector) to fundraising (nonprofit sector). I always felt that the pendulum swung a little too hard into our sector, so it's nice to see business taking a few tips from the social sector.

According to Jodi Harris, the basics of implementing ABM in a business requires three things: people-centric strategy, killer content and "stacked" technology, meaning you have the ability to integrate and target your communications. This sounds a lot like donor-centric fundraising, targeted communications, and a robust donor database solution to me.

ABM strategy also utilizes a deep dive into client (prospect) research to make sure the ask is aligned to client needs. But further, it demands a level of personalization that involves getting to know the client on a deeper level to be successful. All of this results in a "wow factor" ask for an opportunity to make the pitch. Why go to all that trouble? Because it works. Because it gets you in the door and the conversion rates are higher. Significantly higher.

How can you use this in your nonprofit organization?

This is particularly applicable in corporate sponsorship and giving but the principles are still relevant in all your approaches to fundraising, including major gifts. Face-to-face is always going to give you your best result, and doing your research to show your prospect that you've invested time to get to know who they are and what's important to them (as a person or a corporation). Putting the right project in front of them that they're passionate about is key and should come out of the research.

Targeted engagement is another foundational principle in ABM marketing, and it's vital in fundraising as well. Keeping your potential clients and prospective donors engaged in what you're doing through tailored, targeted communications is crucial to retention rates over the long term. Closing the deal isn't the end of the sale and neither is closing the gift.

This is why it is a must to have a robust donor database solution or customer relationship manager (CRM). Both tech tools will increase and refine your interactions with your clients or donors, with reminders, succinct info all in one spot, and automations depending on the parameters of the software.

I'm not sure who came to this strategy first. I want to say it was probably Jerold Panas in fundraising. The fact that it's being utilized now in business gives further credence to the strategy and principles used in major gift fundraising; know who you're talking to, know what they want, match your offer to what they want, and then don't be afraid to ask. Or, as they say in the sales world... close the deal!

Michelle Harder has over 25 years of experience in fundraising and nonprofit development as a consultant and as part of an executive team. With a Master of Arts degree in Philanthropy & Development from Saint Mary's University in Minnesota, Michelle has both theoretical and practical experience in fundraising. With a focus on small shop and faith-based fundraising, Michelle is driven by a passion to help organizations achieve their fundraising and strategic goals. As a consultant, public speaker, and author of "The Definitive Guide to Faith-based Fund Development," Michelle has the expertise to help you raise the funds you need.

PRO TIP | Major Gift Fundraising Isn’t for Everyone and That’s Okay

I wrote an article a few years ago about the fear of asking for money. In it, I referenced fundraisers who are afraid to ask for money. But this isn't entirely true. In most cases, they are afraid to ask a major donor for money face-to-face. An individual with this fear isn't going to excel with a major gift strategy, but that doesn't mean they can't be a passionate advocate and fundraiser for your cause.

A lot of research has been done on personality and fundraising—mostly related to major gift work. And not surprisingly, there are some personality traits that lend themselves to major gift fundraising more than others. Luckily, even though major gifts are probably the most efficient way to raise funds, there are plenty of other strategies that can be implemented for fundraisers who are not suited and skilled in that arena.

First of all, it must be understood that fundraising basically comes down to relationships. And, no matter what strategy you choose, you are going to have to have some sort of relationship with your donors—even if it's a bad one. However, there are things you can do to mitigate a negative experience for your donors such as timely thank-you's and regular communications.

Secondly, you need to decide who you want to do the fundraising. In major gift fundraising, direct mail, and many other strategies you (as the fundraiser) are doing the work—the planning and the asking. However, in peer-to-peer, or P2P fundraising, you enlist volunteers (who are likely donors too) to do fundraising on your behalf. The relationship in this instance, is with the person fundraising on your behalf (the participant) instead of directly with the donors.

Many large events such as "Relay For Life," are based on the model of P2P fundraising. Participants are raising money on behalf of the organization, the local Cancer Society. The Salvation Army Christmas campaign is another example of this model. In this example, the relationship is with the volunteer who is manning the bucket and asking for donations.

These events can be very successful and lucrative and if the concept catches on. If you really want to dig down on this, Katrina VanHuss and Otto Fulton get into the science and balance of challenge and rewards in their book, "Dollar Dash: The Behavioral Economics of Peer-to-Peer Fundraising."

But there are also other ways to use the P2P model. For instance, a P2P email campaign can be just as effective with the right group of participants. Online social campaigns such as Giving Tuesday can also be very successful with planning and promotions to drive engagement.

So, if you are a passionate fundraiser who has a fear of asking people for money face-to-face, consider what other strategies might be more suited to your personality and comfort level. Maybe you have the skills to inspire others to join your cause and raise funds on your behalf through P2P. But don't stop at events, which can have a high cost to raise a dollar. Consider how you could be more creative and have a larger reach. No one has replicated the ALS "bucket challenge" yet, but that doesn't mean your idea couldn't be the next big thing.

As always, fundraising should entail a few diverse strategies. If there is anything we learned from COVID, it was not to be dependent on any one strategy for the bulk of your revenue. P2P strategies not only widen the reach of your ask but can also give you an army of fundraisers.

Michelle Harder has over 25 years of experience in fundraising and non-profit development as a consultant and as part of an executive team. With a Master of Arts degree in Philanthropy & Development from Saint Mary's University in Minnesota, Michelle has both theoretical and practical experience in fundraising. With a focus on small shop and faith-based fundraising, Michelle is driven by a passion to help organizations achieve their fundraising and strategic goals. As a consultant, public speaker, and author of "The Definitive Guide to Faith-based Fund Development," Michelle has the expertise to help you raise the funds you need.