When you cultivate relationships with the High Net Worth Donor (HNWD), you need to be very aware of their philanthropic habits and motivation.
It’s not about your mission or fundraising goals, if you want an HNWD to engage with you. You need to discover what their giving goals are so you can determine if they are compatible with your nonprofit. If they are, then you have the basis of a meaningful dialogue.
On the other hand, if their goals do not coincide with your nonprofit, then you have to have the sense and integrity to thank them for their time, and tell them that it doesn’t appear they are a good fit at this time. But, that may change down the road in six months or a year. They might even want to write you a modest check for your time because they feel obligated. DO NOT take the check because you may be passing up a much more significant check later. Stay in touch every few months and check their temperature. Remember, building a relationship takes time and effort.
Let’s explore some interesting facts you need to know.
Studies consistently show that HNWD’s are very charitably wired. More than 90% of their households support a charity as compared to about 60% of the general population households. In other words, they are very giving oriented. That’s good news for you if you are marketing them on behalf on your nonprofit.
They also tend to support more than one charity during the year. In fact, on average, they support 8 charities each year. If the HNWD is over 70 years of age that tends to increase to 12 charities per year.
It gets better. Over 80% of these households plan on giving even more donations in the next few years than they have in the past.
How does this information help you? First of all, if you know they support several charities a year, that certainly increases your odds of them including you in their future giving plans. So don’t give up! Set up an automated marketing system that keeps your name in front of them regularly. Who knows which of your messages will arrive at a time when their considering other nonprofits to support.
Knowing that they will increase their gifts in the future gives you the insight that they may be agreeable to multiple gifts if you can show them how your nonprofit fits their goals. You may be able to suggest an operation gift along with a capital gift and a long term endowment that could be collateralized by an insurance policy and be part of their estate plan.
But, you have to keep cultivating that relationship. And, you know how long it took to set up the first meet and greet. What was it, 6 months or a year? Did you know someone they knew and suggested they at least meet you?
HNWD’s tend to value and guard their time much more than other donors. Therefore, it makes perfect sense to develop an automated system that does the contacting for you so they can respond to you in their own time without you pestering them for a face to face. Does that sound like a better option than what you have been doing by wasting time, effort, and money hoping to catch them for a few minutes at Starbucks?
I thought so! Yes, we can help you accomplish that. Click on the link below and we’ll send you a free report to help you get started.