With more charities turning to major gift fundraising, you might think that increased competition means that donor pools are shrinking. But this isn’t the full picture. There are still plenty of wealthy people in the UK, so why are charities struggling to find them? It’s not that there are fewer potential donors overall, but it may well be that fewer are visible and accessible to charities. From our experience, charities don’t have a donor problem; they have a pipeline problem.
Are donor pools really shrinking?
Donor pools may appear to be shrinking, but not because there are fewer potential major donors. The typical philanthropist profile is shifting, and charities need to do the work to engage new donors.
So what can charities do to ride out this storm?
Rejuvenate major gift pipelines
Luckily, wealth in the UK hasn’t disappeared. Donors are still here, but because they are under-researched, they are less visible. Established relationships need to be rejuvenated, and opportunities with new supporters identified.
Instead of relying on exhausted trustee networks and major gift events with recycled attendee lists, it’s worth taking the time and resources to rebuild your major donor pipeline.
By investing in research and identifying younger prospects, charities can replace exhausted relationships and bring in new major donors. The attitude towards pipeline development needs to shift from a one-off piece of work when it’s already too late, to continuous development so your pipeline never dips into the red.
Building relationships takes time
The next generation of philanthropists likes to get fully involved with charities’ work. They are impact-driven and may start by giving small gifts while the relationship develops. They want to see the impact their money can have on your organisation before committing to a major gift.
For charities willing to do the research, develop their pipelines, and nurture new donor relationships, there is still plenty of opportunity for successful major gift fundraising.
Wealth screening is often the first step in pipeline development.
On Thursday, 30 April, we’re hosting a free webinar to help you get the most out of it.
Our CEO, Kerry Rock, will answer many of the most commonly asked questions about using wealth screening to identify new donors. We’ll also cover:
– Wealth screening and data protection
– Planning your wealth screening to be GDPR-compliant
– Key steps for undertaking a screening
– How to make the most of your screening results
– Convincing colleagues that screening is right for your organisation
Places are going fast, so book now to secure your spot.