Donor Base Enlightenment!

August 28, 2008 6:36 PM

What does "donor base" really mean?

I am in the process of starting a health/wellness non-profit and have started discussions with someone who looks to be a good source for start-out funds.
I want to speak to her clearly and in her language. One of the questions she's asked is who my "donor base" would be. I have always thought this to be, "people with money" It seems that a "donor base" it is a more segmented and specialized than that.

The non-profit will be a resource and archive for people interested in the benefits of raw dairy.

What actually is a "donor base?" Are there actual labeled segments in the philanthropic world that one needs to know about in order to fine tune request. Or does the definition remain general.

posted by goalyeehah to work & money (8 comments total)

You're not going to find a suitable definition. Your "donor base" is whatever group you think will give you money. As such you can make up your own name if you like.

"Wal-Mart Republicans"
"Security Moms"
"NASCAR Dads"

You must have some idea of the demographic your dealing with. Make up a catchy name for it. "Yoga MILFS"
posted by wfrgms at 6:44 PM on August 28, 2008

It's a polite way of saying, "Who in hell would want to give you money, and how are you planning to keep the money flowing?"
posted by Class Goat at 7:44 PM on August 28, 2008

Your donor base is probably something like "educated health nuts" or "environmentalists".

(And an aside to wfrgms... yogamilfs.com is available, you know. Just saying.)
posted by rokusan at 8:14 PM on August 28, 2008

Many charitable foundations (the ones with the money) are focused on specific segments of the charitable world, rather than just tossing money out to the United Way. For example, one of the charitable foundations I've worked with only focuses on local organizations that help low-income families with children. Another focuses only on autism-related organizations.

So, your donor base would be those people likely to give you money, or foundations that are focused on your "niche," so to speak.
posted by Cool Papa Bell at 8:29 PM on August 28, 2008

It's not just "people with money."

For starters, it's at minimum:
- people with money,
- who have a generous heart or public spirit (ideally, who have a track record of giving)
- to whom you can be introduced
- who care or who can be persuaded over time to care about your issue

I think a great way to start to answer her question would be to think through, for example, who gives to similar nonprofits. I'd also think through connections that you or your board members have.

I think part of her question is "who else is going to give you money? -- I can't keep you afloat forever." So, her real question may not be "who," but "how," as in "how are you going to raise more money?"
posted by salvia at 8:33 PM on August 28, 2008

It's not just "people with money."

For starters, it's at minimum:
- people with money,
- who have a generous heart or public spirit (ideally, who have a track record of giving)
- to whom you can be introduced
- who care or who can be persuaded over time to care about your issue

I think a great way to start to answer her question would be to think through, for example, who gives to similar nonprofits. I'd also think through connections that you or your board members have.

I think part of her question is "who else is going to give you money? -- I can't keep you afloat forever." So, her real question may not be "who," but "how," as in "how are you going to raise more money?"

Kinda. You're donor base is ALL THE PEOPLE WHO HAVE GIVEN YOU MONEY BEFORE and ALL THE PEOPLE WHO EXPRESSED INTEREST IN YOUR CAUSE OR IDEA AND WHO COULD BE APPROACHED FOR MONEY OR RESOURCES. It is not: a listing of people in your community who have money but do not know who you are nor is it people who have money and are involved with other ventures that are like your own. People with money - anybody with any money - is not likely to start supporting your venture until they see your venture begin to do something in the community; people with money who support like-causes are unlikely to support you because they already have a long-term-vested interest in a group that already provides the same kinds of services.

You should divide your Donor Base into four pools:

1. People who have donated.
2. People who have expressed interest and/or support (to be converted to donors for Pool 1)
3. For-profit organizations that support the interests of your non-profit (and from that pool build a base of new donors that can be cultivated into pool 1).
4. People who have been recommended to you by your donors but have not expressed support and need to be cultivated individually.

Do not go after money from other non-profits. This is a really bad idea.

I'll get the name of a book for you to read tomorrow, but I recommend that you pick up "Intentional Stewardship" from case.org. Workshops on fundraising may be available in your area as well. It's very important that as an executive director of a young, small non-profit that you are not only willing to meet donors and potential donors and make asks yourself, but that you are willing to intentional steward these people into becoming annually gifting individuals. If you are unwilling to make cold calls to potential donors and unwilling to do your homework and get everything you need prepared before you meet a donor in person, then you should go into a different line of work.
posted by parmanparman at 9:33 PM on August 28, 2008 [1 favorite]

Do not go after money from other non-profits. This is a really bad idea.

If you were referring to what I said, I'm not suggesting he ask them for money, nor that he pick people off competitors' donor lists one by one. I'm suggesting that after exhausting the people they immediately know, he also identify community members who already give broadly -- the people who give to the museum and the neighborhood park improvement campaign and to the Christmas Gifts for Children fund and the Snuggles for Puppies fund. If any of those people are individuals whom someone on the board knows, they would be prime candidates for your Category 4. Most people who give already give somewhere else -- converting a miser into a philanthropist is fairly hard. And those people who are giving $12,000 apiece to four different groups can probably give her a few hundred to her group without slighting the puppies or the children, if they were persuaded that the cause was worthwhile and the organization sound.
posted by salvia at 12:50 AM on August 30, 2008

If you're looking for a definition of your donor base some good stuff upthread. If you're looking for specific sources, you want to start by thinking about who is directly affected/benefited by your cause. For the benefits of raw milk you'd be looking at small dairy farmers looking for a niche market, organic dairy farmers and other organic farmers, patrons of alternative and organic markets, farmers markets, even up the chain to a place like Whole Foods, certain types of childrens' and/or parents' groups, etc. You see where I'm going. In terms of cherry-picking off other non-profits, as a direct tactic this is a bad idea for the reasons noted above, but in general it's just what you want to do. Trade lists with organizations that have similar or related goals and add them to your mailing list (for information only, first communications cannot be solicitations). You need to build an audience before you start building your donor base. Tell your angel that you are hoping she will provide "seed money" while you are building that base. Give her a time frame if she needs it (but not an end to her donations; only a point at which her gift becomes an "annual gift" rather than "seed money." We fundraisers can be somewhat shameless.)
posted by nax at 8:41 AM on August 31, 2008