The Brief
A new generation tech giants with deep pockets are looking to invest—right now. Billions of dollars are being donated by Silicon Valley entrepreneurs, with a caveat—they want control over their donations, which means nonprofits need to start rethinking how they recruit and nurture this new donor type. Taken from our new white paper, here are three (and a half) strategies to do just that.
A new generation tech giants with deep pockets are looking to invest—right now. Billions of dollars are being donated by Silicon Valley entrepreneurs, with a caveat—they want control over their donations, which means nonprofits need to start rethinking how they recruit and nurture this new donor type. Taken from our new white paper, here are three (and a half) strategies to do just that.
1. Be transparent.
Many successful tech leaders build their businesses from the bottom up; they know every step in every process in every enterprise with which they’re associated. And they’ll expect to understand your organization from top to bottom before giving. That means transparency is key in establishing trust among the entrepreneurial set. Be clear about where their dollars are going and what they’ll be doing, and these big donors will be more likely to give.
2. Hand them the reins.
By giving your donors a voice in how their donations are spent and seeking their advice on management, you can tap into a phenomenon called the endowment effect, which may increase the value your donors place on their relationship with your organization. This in turn can increase donation amount and frequency, or even drive your donors to take on a larger advisory role within your nonprofit.
3. Capitalize on their expertise
If you really want to make your donors feel like they’re in control, take a hint from the Silicon Valley Community Foundation. With assets nearing $5 billion, SVCF has seen enormous success by giving donors agency over how their dollars are used. The Foundation does this by offering donor-advised funds, which may not work for every organization, but the lesson is clear: Give your donors control, and they’ll give you commitment.
4. Leverage philanthrocapitalism
What is this you ask? Find out in the full white paper, “Innovative Fundraising: Three Strategies for Attracting the Next Generation of Donors.”
RelSci provides a relationship capital platform that helps create competitive advantage for organizations through a crucial yet vastly underutilized asset: relationship capital with influential decision makers.
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