Nonprofit Adviser

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Facing financial uncertainty, some nonprofits are refocusing on everyday donors, people who give less than $500. But it can be challenging to build lasting relationships with these supporters because it is hard to give them one-on-one attention.

Allison Fine, president of Every.org, says AI tools can help fundraisers practice “relational fundraising” at scale. That means prioritizing genuine connections over efficiency. Through responsible use of AI tools, fundraisers can customize their outreach based on donor preferences, communicate in a timely and thoughtful manner, and free up time to engage in conversations with donors. To adopt a more personal approach with small-dollar donors, Fine recommends focusing on three things: mindset, reset, and practice.

The first step requires a shift in mindset for how your nonprofit defines success. Is an impersonal direct-mail appeal that draws dollars successful? Or is sharing stories with donors and asking them what they think? Fine says it’s the latter.

Next, organizations need to rethink their goals. That means becoming laser-focused on donor retention rates — not the amount of cash that comes through the door. Organizations, Fine says, should be asking: How do we make you feel as a donor?

Lastly, relational fundraising requires practice. Get in the habit of asking donors before acting — learn to talk with donors, not at them, she advises. That might mean asking for gifts less often, which is no easy task in today’s uncertain financial climate. But groups that stick to this strategy will be rewarded.

Read the full article to learn more tips, including the story of a nonprofit that boosted campaign revenue 23 percent by practicing relational fundraising.

Have a great week,
Emily Haynes
Senior Editor, Nonprofit Intelligence

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