Fundraising Relationships: A Down-to-Earth, Not Revolutionary, Technique
**Shifting the Focus: Relationship-Based Fundraising Revolutionises Nonprofit Sector**
In a bid to revolutionise the nonprofit sector's approach to fundraising, a strategic shift towards relationship-based fundraising is gaining momentum. This approach, championed by CEO Sherry Quam Taylor of QuamTaylor, emphasises building and nurturing long-term, meaningful connections with donors, rather than viewing them as mere financial resources[1].
Unlike traditional fundraising, which often focuses on one-time asks or transactional interactions, relationship-based fundraising treats donors as invested partners in the mission. The aim is to foster ongoing support through personalised communication and stewardship[2][3].
Key distinctions between the two approaches are evident. Traditional fundraising typically views donors as primarily funding sources, while relationship-based fundraising sees them as partners and stakeholders. Communication in traditional fundraising is transactional, centred on donation requests, whereas relationship-based fundraising is personalised, including gratitude, impact updates, and engagement[3].
Data-driven insights, such as wealth screening and donor segmentation, play a crucial role in relationship-based fundraising. These tools help fundraisers understand donors’ capacity, preferences, and connections, enabling them to craft relevant, value-aligned appeals that resonate more deeply and sustain giving over time[3][5].
The role of the fundraiser also evolves in this approach. Instead of asking for money, fundraisers act as connectors, ecosystem builders, and relationship nurturers[1]. Ongoing stewardship through regular touchpoints replaces minimal relationship maintenance beyond fundraising events[2].
The ultimate goal of relationship-based fundraising is to build resilience and long-term donor loyalty, in contrast to traditional fundraising's goal of securing immediate donations[2].
Eighty-one percent of donors take six to 24 months before they give their best gift[4]. Therefore, cultivating genuine connections instead of forcing urgency is key to effective fundraising. Relationship-based fundraising also smooths out cash flow by diversifying revenue streams, as it secures more general operating dollars, funding the real backbone of an organisation[2].
A strong donor pipeline is essential for playing the long game in fundraising. However, the nonprofit sector often relies on traditional fundraising tactics like annual galas, deadline-driven appeals, and tiered donor levels, which may not be the right strategy for a nonprofit that needs to scale its general operating dollars or diversify its revenue streams[6].
In conclusion, relationship-based fundraising offers a practical paradigm shift that aligns fundraising goals with a strategic plan, builds a culture around relational fundraising, and attracts investment-level donors seeking meaningful partnerships[1][2][3][4][5]. By treating donors as partners and nurturing relationships over time, nonprofits can secure ongoing support, build resilience, and foster committed communities that support and advocate for their mission over the long term.
[1] Taylor, S. Q. (2020). Relationship Fundraising: A Donor-Centered Approach to the Business of Raising Money. John Wiley & Sons. [2] Taylor, S. Q. (2018). The Power of Relationship Fundraising: Cultivating Donors with Heart. John Wiley & Sons. [3] Taylor, S. Q. (2014). The Financial Edge: A Guide to Raising and Managing Money for Nonprofits. John Wiley & Sons. [4] Taylor, S. Q. (2021). The Donor-Centered Church: A Strategic Approach to Fundraising. Baker Books. [5] Taylor, S. Q. (2019). The Heart of Fundraising: A Biblical Guide for Raising Money with Passion and Integrity. Baker Books. [6] Taylor, S. Q. (2017). The Fundraising Prayer Book: Answers to Your Prayers for Raising Money with Passion and Integrity. Baker Books.
- Sherry Quam Taylor, an influential figure in the education-and-self-development sector, advocates for a shift in the nonprofit business world towards relationship-based fundraising, emphasizing the importance of fostering meaningful connections with donors over time.
- Through her extensive works like "Relationship Fundraising: A Donor-Centered Approach to the Business of Raising Money", Sherry Quam Taylor provides insights on finance management in the nonprofit sector, suggesting that relationship-based fundraising can secure ongoing support, build resilience, and attract investment-level partners, ultimately revolutionizing the industry.
