Let’s talk about a common fundraising pitfall in the non-profit community: the idea that you can reach your fundraising goal by simply asking a lot of people to give a little. While it sounds logical on paper, in reality, this approach often leads to disappointment. Donors aren’t ATMs, and successful fundraising requires more than just math—it requires strategy, relationships, and an understanding of what motivates people to give.
Take Bright Futures*, for example. This nonprofit serves children ages 5-15 in Rivertown with impactful afterschool programs. Their board has set an ambitious goal to raise $1 million for program expansion and operating support. However, there’s a big challenge: the board is uneducated about fundraising best practices. They skipped the critical step of conducting a feasibility study to assess the community’s capacity and willingness to support this goal using this strategy. What’s more, they’ve overlooked the expertise of their fundraising professional, whose guidance could have helped them avoid some significant pitfalls. Instead, they’ve opted for a simple, one-size-fits-all plan: asking every resident in the town of 30,000 to give $10.
While their enthusiasm and commitment are admirable, this approach is flawed and could jeopardize the campaign’s success. Here’s why Bright Futures needs to rethink its strategy and how it can turn things around.
Why $10 from Everyone Doesn’t Work
- It’s Transactional, Not Transformational.
Bright Futures’ approach treats giving as a one-time transaction, not a relationship. When donors aren’t engaged or connected to the mission, they’re less likely to give again. The Association of Fundraising Professionals (AFP) reminds us that cultivating relationships and showing donors their impact leads to repeated—and often larger—gifts. - The Math Doesn’t Add Up.
Even if every single resident gave $10, Bright Futures would only raise $300,000—far short of their $1 million goal. Plus, the cost of reaching all 30,000 residents (marketing, staff time, materials) might eat up a significant portion of the funds raised. - It Lacks Urgency and Personal Value.
When the ask is small and nonspecific, it fails to inspire action. Donors want to feel their contribution is meaningful. A vague appeal to “give $10” doesn’t show how their gift will impact Rivertown’s kids. - It Misses Key Audiences.
Not everyone in Rivertown is connected to Bright Futures’ mission, and that’s okay. Effective campaigns focus on those most likely to care deeply—parents, educators, local businesses, and philanthropic leaders. - It Leaves Big Money on the Table.
By focusing only on small-dollar donations, Bright Futures ignores major gifts, grants, corporate partnerships, and planned giving—proven strategies for reaching ambitious goals. Unfortunately, if stakeholders are not already committed to the mission, they will opt for a small donation, when they can make a more significant gift.
Turning It Around: A Smarter Strategy
Bright Futures can learn from fundraising best practices and embrace a plan that focuses on relationships, segmentation, and diversified revenue streams. Here’s a roadmap to achieve the $1 million goal.
The Revised Donor Pyramid
To raise $1 million, Bright Futures can strategically focus on donors at three levels:
- Major Donors: $500,000 from 10 Donors
- Each donor gives an average of $50,000.
- These might include local philanthropists, corporate partners, or families with a strong connection to the mission.
- Mid-Tier Donors: $300,000 from 50 Donors
- Each donor gives an average of $6,000.
- Engage local businesses, alumni, and community leaders through sponsorship opportunities or special events.
- Grassroots Supporters: $200,000 from 1,000 Donors
- Each donor gives an average of $200.
- Mobilize the broader community through peer-to-peer campaigns, monthly giving programs, and events.
Steps to Achieve the Goal
- Start with a Feasibility Study.
Too many skip this critical step. Before launching a campaign, assess Rivertown’s giving capacity. Who are the high-net-worth individuals, corporate partners, and grant opportunities? A feasibility study answers these questions and sets realistic expectations. - Segment Your Donors.
Think of the Donor Pyramid:- Major Donors: Focus on individuals or families who can give $25,000–$50,000. Build personal relationships and tailor your asks to their interests.
- Mid-Tier Donors: Engage local businesses and alumni who might give $1,000–$10,000. Offer sponsorship opportunities and recognition.
- Grassroots Supporters: Encourage the broader community to contribute through events, peer-to-peer campaigns, or monthly giving.
- Communicate with Heart and Data.
Develop a compelling case for support that answers the big questions: Why $1 million? How will it change lives? Pair moving stories of kids in the program with hard numbers about impact and outcomes. - Partner with Local Businesses.
Bright Futures is in the perfect position to leverage partnerships with Rivertown’s biggest employers, like major healthcare facilities, an oil company, and a tire manufacturing plant. Show them how their investment benefits the local workforce and economy. - Celebrate and Steward Donors.
Donor retention is key to long-term success. Recognize contributions with heartfelt thank-yous, impact updates, and events that make supporters feel like part of the mission.
The Donor Pyramid in Action
Imagine Bright Futures secures $500,000 from 10 major donors—local philanthropists and major employers. This momentum inspires 50 mid-tier donors to contribute $300,000 through event sponsorships and alumni gifts. Finally, 1,000 grassroots supporters raise the final $200,000 through crowdfunding and community events. In total, Bright Futures hits its $1 million goal while building a diverse and sustainable donor base for the future.
A Final Thought Fundraising is hard work and requires following well-thought-out best practices. Campaigns take time to properly execute before seeing results. Fundraising isn’t a quick fix or about the dollar amount; it’s about the connection. When we focus on what moves people—stories, relationships, impact—we build something bigger than a one-time campaign. We build a community of supporters who care deeply about the mission and are ready to champion it for years to come. And that’s how you fund a brighter future.
We can help you and your organization craft realistic funding strategies following best practices. Contact us to get started.
Disclaimer:
*The case study featuring “Rivertown” and “Right Futures” is entirely fictitious. Any names, locations, or scenarios mentioned are solely for illustrative and discussion purposes. The data, examples, and situations presented do not represent or resemble any actual entities, organizations, or communities. Any similarities to real-world counterparts are purely coincidental. This case study is intended for educational and conceptual exploration only.