Why individual donors should become the centerpiece of your fundraising strategy

If you haven't already read Giving USA 2008, you'll enjoy this brief pop quiz:

Q: How much total money was contributed by Americans in 2007 to all types of charitable organizations? (Yes, this includes religious organizations, schools and colleges, healthcare organizations, the arts, human services, etc.)

A: If you're like most of us, you will guess maybe as high as $1 billion to $5 billion. The correct answer is over $306 billion!

Q: How does that $306 billion break down? What percentage of the whole came from corporations, foundations, and individuals?

A: Most people are astonished to learn that corporations comprise 5%, foundations 13%, and individuals over 82%.

To drive this point home, you might want to look at the current private sources of income for your organization and see how closely they reflect these percentages. If you're like most of the other nonprofits out there, contributions from individuals comprise the largest percentage by far.

Q: Why should I spend time on cultivating individual donors when I already know how to raise money from grants and special events?

A: Grants are wonderful. But have you ever stopped to measure their long-term return on time invested?

If you've got a warm and loving relationship with the program or contributions officer at your favorite foundation or corporation, by all means go ahead.

When you're being successful with having your grant requests funded, notice that a good part of that success is probably based on the relationship you've established with a real human being on the other end (precisely the essential ingredient in successful individual giving).

But then there's the committee to contend with, or the program officer leaves and the new person doesn't know you at all. Or the priorities change (just check out that annual report for the latest) and children or healthcare or housing or international aid are no longer their hot buttons. You're back to square one.

Q: What's so great about individual giving?

A: Individuals—they're what's so great! They are key to sustainable funding for your organization's mission.

With individuals, you can look them in the eye one by one and tell them your story.

If they don't understand or agree, they can ask you questions to clarify. They can give you the chance to sell them on your program.

Individuals can get fired up, passionate, and inspired about what you're up to. In fact, they may already be. They just didn't know your organization was there to tackle that issue.

They are thrilled to talk to you about sexual assault or water quality or highway safety or animal rights! It's exactly what they've been upset about.

Furthermore, they are passionate about several issues at once. They know they don't have the time to tackle all of these, and they'd sure love to support an organization that does.

In fact, they can support several causes at once. Far-reaching and diverse causes. They have no committee to report to and no annual report to send out. It's their money, personally, and they can give it to whatever they feel like whenever they choose.

They can give to each of the three private schools their kids go to, not to mention the five collective alma maters of the two happy parents and the many diverse causes that each parent supports.

And they can be loyal. Once they've been lit up to your mission and the great job you're doing at fulfilling it, they can stay with you forever.

Plus, they're out there in the real world just like you. They know about downsizing and new technology needs and the need for unrestricted funds. They know you can't always predict which of your special projects will need their help the most five years down the line.

That's why they're so glad you're there working on the problem.

They trust you to keep the torch burning and carrying it forward towards the finish line. In many cases, you're doing their life's work for them, and they are very, very grateful to you.

It's absolutely their privilege to be supporting you with their money.

Let's move on to Section 2, leaving your legacy.