Hi friends. Today we're talking about understanding how rich people think in a recession. Understanding your donors, people who have wealth, where they can give a thousand dollars 5k, 10 K, 20 K, 50 k plus six figures to your organization. Folks like that, that's who we're talking about. When I say rich people, I mean people.
who could be or already are your major donors, how they think, how they think in a recession, what is going to actually work in terms of talking with donors like this, pitching, sharing your mission, all of that specifically in a recession. I am recording this January 30th, 2023, and we are seeing massive companies, particularly in tech, but really many different kinds of companies laying thousands of employees off. And this is one of the signs of being in a recession. And so I entered.
Fundraising. For those of you who've been listening to the podcast for a while, you know that I entered fundraising in the height of the great recession in 2009, and so I learned how to raise money, how to raise major gifts from individuals and talk to people even though there were massive layoffs and furloughs and people were losing everything. And the truth is that your most generous donors are generous even when there's a recession.
and really wealthy people make a lot of money in moments like these. So even though some people are struggling right now, not everyone is. So that's first off, don't paint with a broad brush stroke, everybody in your donor database because there's a recession and that means they all are tapped out, they're all struggling, they all cannot give more. It's simply untrue. And we don't really know someone's financial situation unless we ask. We can even do the most amazing research online.
We can find out all kinds of stuff about their giving. And what they're most passionate about. But really your best data from your donors comes from their lips and you asking them straight up what they care about most, what really matters to them, and when you uncover what their values are. Their values, meaning what do they prioritize, even when it's not convenient. That's how you know it's a value.
And there are many people you're connected to, people who've given to your mission before who are generous people. A value of theirs is generosity. They wanna be known by this. They practice giving financially even when, they have maybe less money than they did the year before. And so, just know that that is a segment of your, donor database. That, that your donors are generous people and when you treat them like that, that's how they behave. This is my experience.
When I believe that someone is a stingy, s o b the, then I kind of think that way about them and then I end up treating them that way. When I think that they are generous and kind and thoughtful, and I'm inspired by them and they are just people I really admire. I treat them like that too. So those are just things to keep in mind as you're entering this really challenging time. There are gonna be nonprofits that sadly are gonna struggle and probably not make it, and I don't want that to be you.
So I know it's not you. I know you're committed to growth. You're listening to Nonprofit Courage Lab. You've been following along and are part of my courage community. Then you are committed to growth, and I'm right there with you. So let's get into understanding how rich people think in a recession. And first off, know that like your donors, even if they are running a company, let's say they're an executive at a corporation and they are dealing with layoffs there's a lot of stress with that.
Even though they personally might not be struggling financially. There is a lot of stress in a recession and there is more consideration in what to do philanthropically, and so you must have a crystal clear vision. For the future vision for impact and how lives will be changed. And you, you not only need to have that vision, but you need to be able to say what the vision is in a compelling way really quickly.
You need to be super efficient with how you talk about your work and not waste any time. So number one, be able to articulate your big vision and get straight to the point. Practice being direct and straightforward. This is going to pay off, so much. It will allow you to have your outreach be more effective. People are more likely to respond when you're direct, when you're clear, when you get right to the point. No beating around the bush, no wasted words.
And being able to articulate your big vision is going to inspire people, and that's what you want. You wanna be able to inspire people to rise up to a really huge vision that it becomes obvious. That a massive amount of capital is required. So some of you know I am a senior philanthropy officer at News Story, and our big vision is to house 1 million people by 2030. 1 million by 2030. That vision is so massive. Housing is so expensive, and we are planning to affect 1 million people.
Ooh, that's sexy, right? So you can see obviously because housing is an expensive intervention and it affects everything. If you have a safe shelter, then you can actually thrive and pursue your dreams. You have safety, you have health, you have access to clean water and sanitation.
You can focus on education, pursuing your dreams, becoming an entrepreneur, starting your own business, increasing your income, everything in your life changes, and we plan to impact 1 million people by 2030, so it's time bound. Some of you don't articulate a big vision like that because you don't know. You don't know how many people you plan to impact and how and by when, and so you need to figure that out. It could be shorter than that, right? It could be a year 2030. That's a ways away.
You could say, this year we plan to impact 500 lives in our community and we want your help to change 500 lives. So that could be part of your vision. Whatever it is, you need to be able to articulate that clearly, and it needs to inspire people. Wow, you're really shooting for something that is aspirational and it's going to require more from me in order to see that become a reality. That's what your donors need to think. They need to think, wow, that's awesome. I wanna be a part of that.
They're going to need more because they're impacting more people or they're impacting people in a deeper way. They're serving the community in a holistic way, even more than they ever have before. And so that's going to require people to step up and people is me right? That's what you want your donors thinking.
If you have a really tiny vision, you're probably raising tiny money, but I'm willing to guess that you don't have a tiny vision and maybe for some of you, you just need to articulate that vision clearly. It needs to be measurable, inspiring, and it needs to be something that your donors could memorize once they hear it like 1 million by 2030. So get to the point, be really clear and be straightforward in your communication. This could look like just getting right to it.
Like why are you asking them for a meeting? And saying that straight away in the email. Like, why them? Why them in particular? Not just because they're wealthy, but because they can add a unique value that no one else can bring. And so this has to do with qualifying your leads, and this is something that I talk a lot about inside my program. Courage Lab. You need to be able to identify who are your highest ROI opportunity prospects and donors. Who are the people who are mission aligned.
That is so important. Even more than having people who are super wealthy, it's being able to connect with people who are mission aligned, because if you're really passionate about the mission, then even if you're not a high net worth individual, you might be a major donor because you're willing to give, to sacrifice, for the mission because you're passionate about it. So don't write someone off as a major donor just because they do not have a high net worth.
It matters more that their mission aligned and passionate about the mission. So you gotta be able to communicate what the vision is and you have to be able to deliver and report back on the impact of the gift. This is critical. This goes beyond thinking about a recession, and this should be something that you do regardless of whether there is a recession and that is.
You know, I hear so many wealthy people say it's really easy to give money away and get a tax write off, and it is so hard to give money away that it is going to change lives effectively. It is so hard to make an impact with your money. I mean, anyone can write a check who has money and get a tax write off, but that's not really, especially during a recession, that's not what wealthy donors are considering.
They're looking to make an actual difference in the lives of people, in the lives of, animals in the life of our planet. And so your number one job is reporting back to people the difference that their money made and how it actually created an impact. And sometimes this is really difficult because it takes time. Or in order to be able to assess, lives changed, you need to be able to track data and program outcomes.
and then communicate that in a way that's gonna resonate with donors that doesn't have a ton of jargon and doesn't sound like it's super academic, like it needs to sound really human. And so all of these things about messaging and reporting back is super critical, but it can be a really tough, sticky spot for so many.
And you've gotta make a practice and a habit of finding really simple ways to communicate the difference that someone made and the impact, the positive impact, the life change that that money had. This builds immense trust and this is how you raise more money long term because you retain donors and you build so much trust with them that they become a referral network for you.
When you do a really great job of reporting back how lives were changed and the impact that they had, then that allows them to feel really good about being a part of your organization, and they'll organically be willing to open up their network to you because you do such a great job with their money. And some of you are doing a great job with people's donations, you're just not communicating it to them. But they're the ones who are funding the mission. They're the ones helping to make it happen.
So that has to be a priority for you, communicating the impact, not just the vision, but what actually happened. How were lives changed? How many lives? What are some stories of impact? How did this person, they started here and now they're. Can you communicate that with a rhythm of some kind of regularity so that it's something your donors can look forward to? It's what they expect of you, and they'll keep giving as a result of knowing that it's making a difference.
This may seem so basic to you, but so many of you are not doing. and you've got to prioritize the right habits that raise more money and use your time more efficiently. That's what we talk about inside my program, courage Lab. And if you are really, really busy, but you're not raising enough money, it's because you're not prioritizing your time well. If you are an executive director or a C E O or a founder, you have got to be the primary fundraiser and you should be raising major gifts.
And if you're not, then you really need to be able to get a lot of stuff off of your plate in order to make time for that. And so this is something else that I help my clients with is learn how to prioritize your time. So that you are actually raising more money with less effort and less time because you're prioritizing the right activities, you're prioritizing the right donors, and you're no longer doing things that aren't actually going to be the highest ROI activities.
So recap, you have got to be able to communicate your vision clearly, you've got to be able to be super straightforward, direct, and to the point with your donor comms, and you need to be able to deliver impact. People are not just looking for easy tax write-offs. They are looking to give money away that is going to change lives effectively. And I hear from so many donors that that's so hard to do.
And oftentimes it's because nonprofits do not consistently communicate the impact that that donor had. And if we just do a better job of communication, then we'll keep our donors. So, I want you to think about who are the donors that I can just with a story with something that's inspired you lately. I want you to take action today and spend five minutes if you need to write up a story or go talk to someone on your team, get inspired and write out that story and deliver that impact.
You made this difference. This is an example of a life that you helped to change. You help people like Marvin and tell Marvin's story and it's going to bring a smile to your donor's face. They're gonna feel good reading your email, hearing your voice, meeting with you, thinking about how they put their money to good use, that they're actually helping to change lives, and that it feels great to do that. And you get to give them that moment, that feeling. That's what I want you to do today.
That's your challenge. And for those of you who are ready to raise more and you want training, you want mindset coaching, you want a great strategy for how to get your current donors to give more and raise more major gifts than you're invited to. Join me inside Courage Lab. We start February 7th. You can go to julieordonez.com. Julie, j u l i e, Ordonez, O R D O N E z.com, and check it out, see if it's right for you.
We have a lot of fun in there, and people really become a bolder, more clear version of themselves, and I absolutely love it. It's just one of my most favorite things. So if that's the next step that you need to take, then join me Inside Courage Lab. And until next time, happy fundraising friends.