Ok, what the hell just happened!?
If you’re feeling a bit whiplashed from last Tuesday, you’re certainly not alone. And though we’re generally split as a nation politically, the outcome gave us some FASCINATING data about where people are sitting mentally.
And since I’m a politics dork, I have some thoughts.
Like, I love the wonky-data-of-election-results and analyzing why things happened the way they did kind nerd.
And oh, boy did this election season deliver on interesting things to dive into.
Regardless of how the results hit you in the brain and heart, there is an incredible storyline that we need to examine:
Everything we know about the traditional rulebooks on how to engage humans was seemingly wrong.
The greatest prognosticators failed miserably.
The traditional media was caught flatfooted.
And nonprofits can learn a TON from this.
From a fundraising perspective, using the same old tactics as we race into the new year (as if you needed even more proof that “the way we’ve always done it” should be ignored as a great suggestion) needs to be reevaluated.
One strategy in particular needs the MOST attention: The Annual Fund.
Sure, we can send out mass emails and letters (and text messages every 4 hours) to engage the public…but that seems to be a giant turn off.
Sure we can spend a lot of time talking to people who might consider supporting your organization by literally or figuratively knocking on their doors to convince them that you deserve funding…but that seems to be a waste of monetary and time resources.
And sure, we can avoid engaging our supporters in a meaningful or deep conversational way…but that seems to suggest that everyone knows what you do and like all the programs you are working on…which, they don’t.
But what if this recent election – and the subsequent results – proved we have been wrong about what individuals want? And what if there was a way to adjust, and embrace the most frustrating (but probably your biggest surprise asset to your fundraising organization) the annual fund.
It might not be sexy (yet), but it’s certainly something that we need to talk about.
That’s right. It’s time.
MAFGA: Make the Annual Fund Great Again.
Why The Annual Fund Matters
Nonprofits love to chase shiny things. Someone dangles a new restricted gift opportunity (like a specialized art program or highly specific scholarship), and we’re all in.
But here’s the thing—if we rely too heavily on restricted funds, we’ll end up with the nonprofit version of a kitchen junk drawer. (Or, in my case, a sock bag – filled with just lonely socks of all shapes and sizes.)
Sure, you have a cool pen collection and some random batteries, but no one knows what works or how it fits together. We need unrestricted funds—because that’s what keeps the lights on, the paper stocked, and the mission moving forward.
Annual funds fuel this year’s – and next year’s – operations, plain and simple. They cover the mundane but crucial parts of our work that restricted funds never touch. And do you know who cares deeply about this?
Your board.
They love a balanced budget.
No matter how many random scholarships you have designated, your organization still needs general operational dollars to make it all run smoothly. And when your annual fund dries up, you risk losing that stability.
The Problem with a Billion Separate Funds
The truth is, many nonprofits have over-merchandised their restricted funds, creating specific buckets for everything.
Yes – I realize that in previous blogs I talk about hyper-specific funding – but that is for conversations with donors, not developing or fully creating hyper-specific funds. It’s talking about things that matter to the donors, and having the general funding pay for those programs…AND other things that make the organization thrive.
Next thing you know, you’re stuck with a restricted fund for coffee filters, another for IT cables, and yet another for “executive pens”—all while your annual fund dwindles into irrelevance.
The result?
You’ve lost flexibility, forced to make convoluted budget gymnastics just to pay for core services.
And here’s the kicker: Funders don’t always see this as a problem because we haven’t pitched the annual fund properly. We’ve let it get stale—"It’s just for operations,” and what’s worse, some nonprofits actively avoid talking about their annual fund, worried it’s not sexy enough to pitch to donors.
Newsflash: paying for staff salaries, heating bills, and program supplies may not sound thrilling, but that’s what keeps the mission alive.
How to Sell the Annual Fund
So, how do we Make the Annual Fund Great Again?
Well, we may need to merchandise it like the successful national campaign did, and avoid, like the plague, the way the less-successful side did. Here are some thoughts:
Tell Stories About Impact
Every day, I would get countless texts from the Democrats regarding how if the other person got elected, the world was going to come to an end. And that if you don’t give, horrible things will happen.
Typically we have fundraising themes that border on the “woe as us” or “just look at what we are working with” stories.
That was failed messaging. The voters cast their ballots for paths forward (regardless if you agree or not with the roadmap is irrelevant), not potential crisis - or in the case of most voters, more of the current crisis they were facing domestically.
Well, what on earch do we learn from that?
We need more impact and proof that what we are doing is working. We need to show results. And we need to connect that impact and those results with the people that make it happen.
Your annual fund isn’t just for "operations"—it’s for the very real people your organization serves. When you ask for annual fund gifts, tell a story about how those funds fuel everyday impact.
Make it personal, real, and tangible.
The time you spend chatting with funders, sponsors and donors should be one of celebrating those that are doing the hard and amazing work.
And you can’t just have a single script you repeat.
Its not authentic. The public is skeptical of a more robotic sounding message. They want, despite it’s flaws, passion.
And they want that passion to match impact and results.
They also don’t want to give to sinking ships. So give them honest and transparent communications about how your nonprofit thrives because of them, not about how it will fail without them.
Look to Aligned Humans, Rather than Convincing Others
One of the biggest “oh, this is a totally new ballgame” of how people engage with others after this election was the ground game.
Democrats spent billions of dollars knocking on doors and trying to convince undecided voters that their candidate was the best. It takes 5-8 touchpoints to move someone from undecided to committed. And that type of repeated communication in a short period of time, feels like desperation, more than strategy.
Also, as Jehovah’s Witnesses and door-to-door plastic kitchen storage salesmen know…annoying families during dinner time is really a terrible plan.
The Republicans on the other hand did something unique. Instead of concentrating on convincing the uncommitted, they just expanded their base. They went to fraternities and organizations (like the Amish!) to register like-minded people who had never voted before.
They developed an annual plan that looked very specifically at demographics of who would love their message and just spend time and money there.
And it worked.
Your nonprofit isn’t going to be liked by everyone. And that’s ok. But instead of CONVINCING folks of why you are great to support, your annual fund needs to start by engaging folks who would be the most receptive. They don’t need to know EVERYTHING about your nonprofit – but alignment is more critical than ever.
If your nonprofit helps at risk youth to develop business skills to get better jobs, spend your time talking about it with entrepreneurs who understand unique skills rather than social organizations that may not share a passion for workforce.
If your nonprofit helps re-home cats, spend time with people who actively talk about their love of cats, rather than appealing to any human being who likes animals. (As a dog lover, I’m not a big feline fan…so no need to spend your cat marketing to me – as an example.)
Alignment. Start there
Incentivize Matching Gifts – but not in a Reverse Robin Hood Kinda Way
I saw a great interview that bemoaned the over $1 billion raised by the Democrats this year that sent these giant matching gift challenges to get folks who could only give $10 at a time to give urgently, while these mystery individual donors would “ONLY GIVE” if you helped them reach the goal.
It was the secrecy of where the money was coming from, these political wonks suggested, that made it feel as if the rich were grabbing smaller gifts from the smaller donors and almost holding their massive funds hostage without their commitment.
Think – Reverse Robin Hood.
Now, everyone loves a match.
But everyone wants transparency more than they want an incentive.
Anonymous funding, or smoke and mirrors about who is behind the curtain is seemingly on the table for discussion of being a major no-no in fundraising.
If you are an organization with a giving day coming up, and you collect a series of donations that you’re using for leverage and excitement – Amazing! Don’t stop doing that!
However, make sure you are listing the gifts, and using the passion of these matching gift donors to inspire the public rather than feeling like they are conspiring to make a goal.
Also, what a great way to celebrate your incredible donors, give your business leaders a little bit of extra love, and showcase your coalition of supporters from an array of diverse backgrounds!
And those donors who love restricted gifts? This is a great way for them to contribute a matching gift to the annual fund.
It’s a two-for-one feel-good deal.
End-of-Year Fundraising: It’s Go Time
Now is the perfect time to launch your annual fund appeal, especially as we approach the end of the year.
The stock market and crypto currency took the results of the election and took off.
People who feel more financial secure feel more generous.
Holiday spirits are high.
Donors are actively looking for meaningful causes to support.
Your end-of-year solicitation letter is one of the most powerful tools you have to tap into that generosity. Here’s how to make it count:
Be Specific in Your Ask.
Don’t just say, “Support our mission.” Get specific about how their annual fund gift will make a difference today. People want to know their money matters—tell them exactly how.
Make It Personal.
Use storytelling in your letter. Share real examples of how the annual fund impacts lives. A personal touch builds emotional connections, which leads to donations.
Create Opportunity to Support
Frame your appeal around deadlines and goals—“Help us raise $50,000 by December 31st to ensure we start 2025 strong.” Adding a sense of urgency (not desperation!) will encourage people to act now instead of later.
Offer Transparent Matching Gift
Get donors like him involved by setting up matching gift opportunities and lift up your supporters too. “Your gift will be doubled today thanks to Phil’s Garage match!” Matching gifts not only inspire giving—they make donors feel like their contribution has twice the impact and those that match get to celebrate publicly why they love your mission!
If you’ve made it this far in the blog – congratulations! You’ve now proven another one of these weird points made during this election season.
Long form content might be back!
Hell, this blog is now over 2,000 words. And you’re still here! WAHOO!
No, you don’t have to record a 3-hour podcast to send to your entire audience, but while you develop your annual fund story, you don’t have to worry about ONLY speaking in soundbites.
Taking your time and having your aligned potential donors get to know you is much better than not talking about who you are as an organization or who you are as a passionate person for the mission.
So, as you head into this end of year fundraising season, remember to MAFGA: Make the Annual Fund Great Again.
Your board will love you, your donors will get it, and your organization will be stronger for it.
Let’s ditch the junk drawer mentality and focus on what really keeps us moving—because without fuel, even the flashiest programs stall out.
Make your annual fund pitch.
Tell the story.
Balance the budget.
Rinse and repeat.
Now go make it happen!
-Patrick
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