Year-end Strategy: Test Gifts
One of the more posed questions in our workshops or by email is around how to engage someone meaningfully before they're ready to make a significant commitment to the organization.
Of course, there are a lot of tools for cultivating relationships that can and must be used to form relationships that are deep and intentional. I always lead with advice that one must formulate the ideal next-steps with a prospect before even heading to the first visit; the second meeting can be even harder to secure in some cases, and it's imperative to have a multitude of partners or "events" that can be used for further engagement. However, when you're in the fourth quarter, you're challenged with spending your time most efficiently, and that usually means making solicitations.
You have a couple of choices here. With an eye toward a larger vision, the institution's strategic aspirations, you can request a meeting at year-end to specifically discuss aligning the prospect's interests with ideas the organization is considering and get their feedback on that. If they're ready to do something before 12/31, they'll see this as an invitation to have that conversation directly now. If they're not, you're cultivating the relationship intentionally and have planted the seed for a discussion about a commitment in the next calendar year.
The other option is to solicit a test gift. This support is usually given all at once (rather than spread over a handful of years in a pledge), and is a fraction of what the major solicitation might be. For example, if you're working on a relationship who has the capacity to commit to $50k, but has not yet been involved philanthropically with you before, you might ask for $3k or $5k as a one-time gift. You are proactive about communicating that this gift is the beginning of your relationship together, and that you want the opportunity to prove impact and outcomes while you continue your conversation about what could be meaningful to them in the future.
It's a great way to increase participation at the end of the year, raise new money, and above all, cultivate the relationship by proving the value of their investment. You must follow through with consistent and high-quality stewardship of this gift into the new year, and not lose sight in your communication of the larger vision and support.
What should you be mindful of in this avenue? #1: Communicating directly that this is a gift to prove yourself -- to allow the donor to test you. They should know that the conversation around a commitment will continue. #2: Aside from that, you should not be afraid to actually make this ask for fear of leaving money on the table. Of course, you have to use your instincts on this one a bit, and I am all about not leaving money on the table, but if you are ways away from securing a larger commitment, this could be your chance to really prove yourself & your organization before next steps.
