Few things create a power imbalance more precisely than money. Fundraisers encounter this power imbalance acutely, perhaps more than people in other professions.

Wealthy people tend to socialize and congregate with people like themselves (as most people tend to do). Because successful fundraisers are successful relationship builders, navigating this dynamic can be particularly tricky as you need to be conversant and comfortable in their environment, but understand and accept that their daily reality and yours may differ greatly.

It can be easy to get caught up in the trappings of the wealthy and make assumptions about their quality of life versus yours. You may need to do some personal work around acceptance  because, as a professional fundraiser, your job is motivating the donor to move a portion of that wealth to your nonprofit. To do so, you need to know how the wealthy relate to money.

In a word, it’s leverage. Most wealthy people built up their asset base by leveraging a portion of it to generate more wealth. They take risks both large and small with their capital to realize a return on investment. Bottom line: money is a tool to generate more money.

So, when asking a person of significant means to invest in your nonprofit, how are you talking about leverage? There are two key leverage points every fundraiser needs to incorporate into an ask for a major gift.

How will the donor’s investment leverage:

1.  A better outcome for the people/animals/environment your nonprofit supports? If you don’t have a clear, crisp answer to this question that evokes a sense of both emotion and logic, then pause and take time to develop a succinct answer before making your approach.
2. Additional support for your cause? In other words, what is your investment strategy? Think about concrete ways you can use their gift to leverage additional support. For example, many foundations will not consider an application until you are at 50 percent of your goal. Your donor’s investment will help get you closer to that 50 percent threshold, thus leveraging those funds.

Coming in prepared with a few thoughts about how to leverage their investment shows you are someone who knows the dynamic of how money works. Your donor will appreciate the care and thoughtfulness you bring to their potential major gift and investment in your mission.

 

Learn more about how to talk about money in Chapter 9 of my new book “Finding Funding: How to Ask for Money and Get It.”
Want to talk? Email me at jplourde@jpfundraising.com. I’d love to hear from you.