Understanding Fundraising as a Form of Sales
For me, fundraising is an extension of sales, and to excel, one must grasp the shared elements and skills needed in both fields. This understanding forms the basis for successful fundraising strategies.
Sales: A Comprehensive Landscape
Sales come in a variety of types, and understanding these types is key to creating an effective sales strategy. Here is a closer look at some of these types:
- Inside Sales: This form of sales happens remotely. Salespeople communicate with prospects through telephone, email, or web conferencing to sell their products or services.
- Outside Sales: This form of sales requires salespeople to meet prospects face-to-face. It typically involves traveling to clients’ locations.
- B2B Sales (Business to Business): In this form, companies sell their products or services directly to other businesses. This often involves higher-priced products or services that require more complex sales processes, such as consultative selling.
- B2C Sales (Business to Consumer): This is the traditional retail model where businesses sell directly to consumers. It can happen in a store, online, or through direct sales.
- Direct Sales: This method involves selling products directly to consumers outside of a traditional retail environment. For instance, sales might happen at home, at work, or at a client’s location.
- Channel Sales: Here, a company uses third parties, like resellers or affiliate marketers, to sell its products or services.
- Online Sales: These sales happen over the internet, either through a company’s website, an e-commerce platform, or through social media channels.
- Consultative Sales: In this method, the salesperson acts as an advisor and aims to solve a customer’s problem with their product or service.
- Complex Sales: This type involves multiple stakeholders, high-value transactions, and lengthy decision periods.
- Transactional Sales: These are simple, short-term sales where a customer buys a product or service after minimal interaction with a salesperson.
- Enterprise Sales: A type of B2B sales where products or services are sold to large corporations.
Each of these types of sales requires different skills, strategies, and techniques. However, all are founded on understanding customer needs and providing a solution that addresses those needs.
The Sales Cycle in Fundraising
Just like in sales, fundraising involves a process or cycle that fundraisers must go through to successfully secure donations. This cycle can be broken down into several stages, similar to the sales process:
- Research: Identify potential donors and learn about their interests, capacity to give, and connection to the cause or organization.
- Prospecting: Narrow down the pool of potential donors to those who are most likely to donate.
- Approach: Reach out to potential donors, often with a personalized message about why they might be interested in supporting the cause.
- Presentation: Provide more in-depth information about the organization, its work, and how the donor’s support would make a difference.
- Handling Objections: Address any concerns or objections the potential donor might have about making a donation.
- Closing: Secure the donation. This might involve providing information about how to make the donation, discussing donation amount, and confirming the donor’s commitment.
- Follow-up and Stewardship: After a donation has been made, maintain a relationship with the donor. This might involve thanking them for their donation, keeping them informed about how their support is making a difference, and possibly discussing further donations in the future.
Sales techniques can be adapted to the world of fundraising. For instance, the consultative sales approach can be used to understand a donor’s motivations and tailor a fundraising pitch to their interests and values. By viewing fundraising as a sales process, fundraisers can become more effective in their roles.
The Versatile Fundraiser: Jack of All Trades
Fundraising is a multifaceted role that requires a broad set of skills and competencies. The ability to wear many hats is paramount in this field.
- Lead Generation: Fundraisers must proactively identify and qualify potential donors. This requires research skills, the ability to understand donor motivations, and the use of strategic communication methods to initiate contact.
- Inside Sales: Much like an inside sales representative, a fundraiser often conducts a significant amount of work over the phone or via email. This could include initial donor outreach, follow-ups, or stewardship calls to maintain relationships.
- Outside Sales: Fundraisers often conduct face-to-face meetings with potential donors. This is particularly true when cultivating high-net-worth individuals or corporate partnerships. This aspect of fundraising requires excellent interpersonal skills and the ability to present and communicate effectively.
- B2B and B2C Fundraising: Fundraisers must be comfortable working both with businesses (B2B) and individual donors (B2C). Each requires a different approach and understanding of unique motivations and pain points.
- Account Management: Once a donation has been made, fundraisers must maintain and nurture that relationship. This could involve regular updates on the impact of the donor’s contribution, recognizing and thanking the donor, and potentially securing further donations.
- Client Servicing: Fundraisers often act as the point of contact for donors. They handle inquiries, provide information, and ensure a positive donor experience. This requires good customer service skills and attention to detail.
Challenges and Similarities: Fundraisers and Salespeople
There are many parallels between the roles of fundraisers and salespeople. Both require a similar set of skills, including excellent communication, the ability to build and maintain relationships, and the capacity to persuade and influence. Both roles also involve meeting targets or KPIs, and both may operate on a salary-based compensation plan.
However, there are key differences:
- Product/Service vs Cause: Salespeople typically promote a tangible product or service, whereas fundraisers advocate for a cause or a community. This means that fundraisers often have to sell an idea or a vision, which can be more challenging.
- One vs Many: Unlike salespeople who often focus on a single product or service, fundraisers may be required to promote and raise funds for multiple programs or projects. This can mean that they need to be knowledgeable about a wider range of topics and able to switch between them fluidly.
- Motivation: The motivations for purchasing a product or service can be different from the motivations to donate to a cause. While the former is often driven by personal benefit, the latter tends to be driven by altruism or personal values.
- Rewards: In sales, the transaction often leads to immediate gratification for the customer. In contrast, the “reward” in donation is often the positive feeling of contributing to a cause or community, which can be more abstract.
Despite these differences, both roles require a deep understanding of the target audience, their needs and motivations, and the value that can be provided to them. As such, fundraisers can benefit greatly from adopting sales strategies and techniques in their roles.
B2B and B2C Fundraising: A Dual Approach
Fundraisers often have to interact with both businesses (B2B) and individual donors (B2C), each requiring a distinct approach.
- B2B Fundraising: When dealing with corporate entities, fundraisers need to understand the business’s objectives and how supporting their cause aligns with those objectives. This could be in terms of Corporate Social Responsibility (CSR) goals, employee engagement, or brand image enhancement. It’s also important to understand that decisions in B2B fundraising often involve multiple stakeholders, which means the fundraiser needs to manage a more complex decision-making process.
- B2C Fundraising: When engaging individual donors, fundraisers need to tap into personal motivations, values, and emotions. This often requires a more personalized approach, with a focus on storytelling and demonstrating the impact of the donor’s contribution. Understanding the individual’s connection to the cause, their giving capacity, and preferences are crucial elements of B2C fundraising.
Navigating both these landscapes simultaneously adds another layer of complexity to the fundraiser’s role. It requires a deep understanding of both business objectives and individual motivations, along with the ability to tailor communication strategies accordingly.
Introverts and Extroverts in Fundraising
While extroverts, with their outgoing and sociable nature, might seem to be natural fits for fundraising, introverts can be equally successful in this role. The key lies not in the ability to command a room or be the life
of the party, but in the ability to build deep, meaningful connections and navigate the fundraising sales cycle effectively.
- Listening Skills: Introverts are often great listeners. They are more likely to let potential donors take center stage during conversations, which allows them to better understand the donor’s motivations and concerns.
- Preparation: Introverts often shine when it comes to preparation. They are likely to do thorough research on potential donors, anticipate questions, and prepare thoughtful responses. This can make donors feel valued and understood.
- Deep Connections: Introverts typically prefer deep, meaningful conversations over surface-level chatter. This can help build strong, lasting relationships with donors.
- Resilience: Fundraising involves a lot of rejection. Introverts, who often spend time in introspection, can be more resilient and learn from each rejection, improving their approach in the future.
- Passion: Whether introverted or extroverted, the most successful fundraisers are deeply passionate about their cause. They believe in the work they are doing, which shines through in their interactions with potential donors.
In the end, whether introverted or extroverted, successful fundraising requires the ability to understand potential donors, build relationships, and effectively communicate the value of supporting the cause.
Mastering Fundraising Strategies
Fundraising mastery necessitates more than understanding the steps in the cycle; it demands immersive learning of skills and their tactical execution at each phase, akin to sales strategies. The process initiates with lead generation or identifying potential donors. Then it transitions to inside sales where the fundraiser communicates the organization’s mission and goals effectively to kindle interest among prospects. This is followed by outside sales skills for personal interactions, strengthening bonds, and enhancing the chances of securing donations.
Fundraisers also need proficiency in B2B and B2C fundraising, being compelling in corporate presentations and personally connecting with individual donors. Lastly, they manage accounts, ensuring donors stay engaged and informed about the impact of their donations. Regular communication, updates, and expressing gratitude also serve as vital aspects of this journey. Seeing fundraising as a variant of selling allows us to leverage proven sales techniques to enhance fundraising outcomes and make a greater impact.
- Mastery in fundraising requires proficiency in lead generation, inside and outside sales, B2B and B2C fundraising, account management, and client servicing.
- Fundraising strategies are essentially sales strategies modified for the nonprofit sector.
- Viewing fundraising as a form of selling allows the application of successful sales techniques to improve fundraising outcomes.
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