The term donor dates back to the mid-15th century with roots from Anglo-French, Old French, and Latin. The word means one who gives, bestows or makes a grant.
While nonprofits have been using the term donor for decades, newer generations of “donors” are more attracted to impact than charitable altruism. Just as nonprofits must adapt to changing technology and societal norms, so too must they adapt to how supporters see and think of themselves.
Not just “givers,” today’s donors are impact investors who seek both social impact and financial sustainability.
While it may be difficult at first to make this mindset shift, consider these five strategies to approach donors more like impact investors.
5 Strategies to Approach Donors as Impact Investors
1. Value Proposition Over Charity
When communicating with supporters and potential supporters, nonprofits must move beyond an appeal for funding to presenting a compelling case for measurable, lasting impact. It is not about your organization; it’s about how your nonprofit is changing the world.
Frame your organization as a partner in solving systemic challenges that your potential impact investor is interested in, not as a recipient of charity.
2. Impact Measurement
Impact investors care about an organization’s ability to innovate and scale solutions. Nonprofits must develop robust systems to track and report outcomes in clear, quantifiable terms to be attractive and garner support (e.g., lives improved, systems changed). Be sure to balance quantitative data with qualitative story telling.
3. Sustainability Mindset
When presenting opportunities, emphasize strategies for financial resilience and sustainability, such as earned income streams, social enterprise, or partnerships that reduce dependency on one-time gifts.
Demonstrate your long-term vision for creating lasting social change. Reinvigorate your intended impact strategy in alignment with your mission.
4. Professionalized Approach
Adopt business language and tools to engage your investors who are familiar with corporate models.
Highlight organizational efficiency and strong leadership. Greatness is attractive.
5. Partnership and Return on Investment
Finally, focus on the mutual benefits of collaboration, showcasing the “social return on investment” (SROI).
Understand your investors’ goals and align them with their values and desired impact areas.
Adopting even one of these strategies could help your nonprofits engage a broader base of support while maintaining your mission-driven ethos in the months and years to come.
Engage More Impact Investors
Ready to attract more support for your nonprofit? Join the Nonprofit Leadership Center for an upcoming class or certificate in Fund Development.
