Michael Bloomberg – The truth of the matter is: you can create a great legacy, and inspire others, by giving to philanthropic organizations.
According to Giving USA, middle-class families donate about 3.4% of their income to charities each year. Most of these donations are made between October and December, which is a giving season in most countries. Not just for a billionaire.
Billionaires are in the financial position to donate more. Warren Buffett and Bill Gates realized this when they invited billionaires to pledge more than half of their wealth through Giving Pledge. To date, about 137 of billionaires reacted positively to this initiative. This shows that the ultra-rich are willing to donate to charitable causes. Now all that’s left is for charity leaders to find good ways of attracting them.
How can a charity attract billionaire donors?
Nonprofit experts, Beth and Theresa Lloyd, co-authored a book titled “Richer Lives: Why rich people give” to answer this question. The book is packed with valuable information for charity leaders to use in their quest to attract wealthy donors. The book highlights real-life experiences of rich donors. It explains all the motions rich folks go through before parting with their money.
This is what Beth and Theresa found:
Tweet this: Write a proposal that sets your organization apart from the rest.
- Billionaires don’t like their arm being twisted
When presenting your proposal to wealthy donors, be creative without coming across as a con artist. Avoid using tired coercive tactics. Remember this: they’ve hosted many other ambitious fundraisers before yours, so they’ve seen it all. They are well-aware that the nonprofit world is littered with con artists.
This crowd will donate if they see a fit between your organization and their business objectives. Donating will largely depend on whether:
- They like you.
- They believe in your cause.
- and They can trust you with their money.
Billionaires prefer to interact with leaders
Other research done by Beth and Theresa shows that 69% of the billionaires will consider a request only if it comes from a credible fundraiser. They also found that the well-off are likely to donate more if they have confidence in the leadership of the charity organization.
The affluent are inundated with funding requests and they have no time to sift through all the clutter. In order to attract their attention, consider the following:
- Write a proposal that sets your organization apart from the rest.
- Keep the introduction section of your proposal concise.
- Call their office before emailing the proposal.
- Make an appointment to formally meet them.
- Always thank them for their time.
Wealthy people expect fundraisers to have done their research
Technology has made research on potential donors faster than before. Information gathered from the Generosity Index (annual report published by the Charities Aid Foundation) can give you an idea of which billionaires are more likely to donate.
Beth and Theresa advise charities to be wary of asking for money immediately. Wealthy donors expect fundraisers to get to know them before asking for money. Start off by understanding their personal interests and businesses objectives.
Billionaires appreciate a “thank you”
Andrew Carnegie “No man can become rich without himself enriching others, the man who dies rich dies disgraced.”
The rich have taken to Andrew Carnegie’s philosophy by supporting different charitable causes. In 2015, Dell’s CEO, Michael Dell pledged $25 million to fund the construction of a new teaching hospital in Texas. There are several billionaires emulating him by distributing their wealth to improve the lives of those less fortunate.
If their generosity is not appreciated, it will discourage them from donating again in the future.
How do you plan to attract wealthy donors?