Strategies For Effective Fundraising

Want to raise money from foundations? It's not just about persistence—it's about speaking their language. When I first started seeking foundation support for Mongabay, I faced a wall of silence. No responses. When I was lucky, I got a "No thanks." At the time, I thought I was taking the right approach. I targeted foundations aligned with our work in journalism and conservation. But I quickly learned that good alignment isn't enough. The way I framed our work needed to change. Program officers aren't just looking to support great causes; they want to achieve impact. Once I shifted my outreach to focus on how Mongabay could help them achieve their goals, my success rate increased—though there are still far more non-responses and nos than yeses. Here are a few lessons I've learned: 1/ Focus on their objectives, not yours. ↳ Foundations are often trying to solve complex challenges. Instead of leading with what Mongabay does, I began emphasizing how our work supports their mission. 2/ Be concise and clear. ↳ Program officers are busy. Long-winded pitches didn’t get me far. Clear, succinct messaging worked better. 3/ Cold outreach is tough. ↳ The reality? Most cold messages go unanswered. Whenever possible, I leaned on introductions where I could get them. 4/ Relationships matter. ↳ In philanthropy, as in life, trust is built over time. Regular updates, even when not tied to an ask, help maintain connections. 5/ Measure impact. ↳ Reporting back on how foundation support has translated into tangible results has been key to securing renewals. Even now, I don't have all—or even most—of the answers. But over the years, I've seen Mongabay's foundation support grow from zero to several million dollars annually. This increased support has allowed us to expand from a team of two to about 120, dramatically scaling our impact. It's clear proof that refining your approach can lead to meaningful results. For those navigating the fundraising landscape, remember: Foundations aren’t just writing checks; they’re investing in outcomes. Speak to that, and you’re on the right path.

As a founder who raised a $500K pre-seed 💰 Here are my biggest (updated) takeaways about fundraising: 1) 𝐄𝐚𝐫𝐥𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐛𝐞𝐭 𝐨𝐧 𝐲𝐨𝐮, 𝐧𝐨𝐭 𝐲𝐨𝐮𝐫 𝐢𝐝𝐞𝐚. It’s about trust...they need to believe you can figure it out and make it happen. You matter more than your pitch deck. 2) 𝐃𝐨𝐧'𝐭 𝐰𝐚𝐬𝐭𝐞 𝐭𝐢𝐦𝐞 𝐨𝐧 𝐕𝐂𝐬 𝐭𝐨𝐨 𝐞𝐚𝐫𝐥𝐲. Unless you have multiple exits or significant traction, focus on your product and users. Early VC calls should be about understanding the milestones you’ll need to hit. Don’t ask for money, ask: “At what point would a business like ours be exciting to you?” They’ll tell you. 3) 𝐑𝐚𝐢𝐬𝐞 𝐚 𝐬𝐦𝐚𝐥𝐥𝐞𝐫 𝐫𝐨𝐮𝐧𝐝 𝐟𝐢𝐫𝐬𝐭. Don’t aim for a $4M seed round out of the gate. Too many founders try and fail. Start with angels or your personal network. 4) 𝐘𝐨𝐮 𝐝𝐨𝐧'𝐭 𝐧𝐞𝐞𝐝 𝐨𝐮𝐭𝐬𝐢𝐝𝐞 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐭𝐨 𝐛𝐮𝐢𝐥𝐝 𝐲𝐨𝐮𝐫 𝐌𝐕𝐏. If you think you do, you’re probably not being resourceful enough. 5) 𝐅𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐭𝐚𝐤𝐞𝐬 𝐥𝐨𝐧𝐠𝐞𝐫 𝐭𝐡𝐚𝐧 𝐲𝐨𝐮 𝐭𝐡𝐢𝐧𝐤. Plan accordingly, and don’t underestimate the time commitment. 6) 𝐃𝐨𝐧’𝐭 𝐭𝐚𝐤𝐞 𝐫𝐞𝐣𝐞𝐜𝐭𝐢𝐨𝐧 𝐩𝐞𝐫𝐬𝐨𝐧𝐚𝐥𝐥𝐲. I made this mistake early on. A “no” isn’t always about you. Sometimes it’s about them—investors often like to appear wealthier than they really are. 7) 𝐑𝐚𝐢𝐬𝐢𝐧𝐠 𝐦𝐨𝐧𝐞𝐲 𝐰𝐡𝐞𝐧 𝐲𝐨𝐮’𝐫𝐞 𝐝𝐞𝐬𝐩𝐞𝐫𝐚𝐭𝐞 𝐢𝐬 𝐚 𝐥𝐨𝐬𝐢𝐧𝐠 𝐠𝐚𝐦𝐞. I know sometimes this is hard to avoid but investors can sense desperation from a mile away. Walk into meetings with confidence, believing they’re lucky to get on your cap table. 8) 𝐊𝐞𝐞𝐩 𝐲𝐨𝐮𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐮𝐩𝐝𝐚𝐭𝐞𝐝. Investors are people, and knowing others are excited about your idea gives them comfort. Set expectations upfront, send regular updates, and don’t just rely on email...pick up the damn phone. 9) 𝐑𝐢𝐝𝐞 𝐭𝐡𝐞 𝐦𝐨𝐦𝐞𝐧𝐭𝐮𝐦. When you secure one investment, it’s the best time to close another. Keep the energy going. This is underrated. 10) 𝐒𝐮𝐜𝐜𝐞𝐬𝐬 𝐚𝐧𝐝 𝐟𝐚𝐢𝐥𝐮𝐫𝐞 𝐥𝐨𝐨𝐤 𝐭𝐡𝐞 𝐬𝐚𝐦𝐞 𝐚𝐭 𝐟𝐢𝐫𝐬𝐭. Both are full of “no’s.” The difference in a successful raise is they didn't give up. To all the founders out there fundraising...Stay positive, stay persistent, and keep building. 💙 #startups #venturecapital #fundraising

I compared data from 25 nonprofit fundraising events. Traditional galas averaged $45,000 net. Peer-led experiences averaged $127,000 net. The event model you choose isn't just a format decision—it's a revenue decision: • Experiential events have 68% higher attendee satisfaction than traditional galas(1) • Peer-hosted events acquire 3X more new donors than organization-hosted events (2) • Virtual/hybrid components increase event revenue by 24% on average (3) One organization replaced their annual gala with a series of board-hosted experiences and doubled their event revenue while cutting expenses by 40%. (4) The future of event fundraising isn't in ballrooms—it's in authentic experiences. What's your most successful fundraising event format? Share below. ¹ Based on post-event satisfaction surveys across 25 nonprofit events comparing traditional galas to experiential fundraising events. ² Analysis of donor acquisition data from peer-hosted vs. organization-hosted fundraising events among surveyed nonprofits. ³ Comparative revenue analysis of events with and without virtual/hybrid components across the sample. ⁴ Case study from a mid-sized educational nonprofit that implemented this strategy in 2023-2024. Full length report will be out early next week: Sign up now to receive report - https://lnkd.in/eHdBA38m

Fund houses think they are selling a product. That's not what allocators are buying. Product-led sales was "the Wall Street way" for a long time. It's what we were taught. -- Pitch this fund -- Sling those stats -- Focus on these features The firms that succeed going forward are unlearning that "old way." Sales isn’t about what you built. It’s about who you built it for. Your buyer. Their journey Their story Their why Check it: → 74% of buyers choose the rep who shows insight into the buyers business. Not the one who talks about their product. (Source: Forrester) In a world where trust is the currency, we can't lead with the thing we're selling. We must lead with the people we are serving. Here’s what that mindset shift actually looks like (for all of us in sales and for fund managers raising capital): 1. Start with who it’s for, not what it is    ↳ The best sales meetings feel like consulting sessions, not product demos    ↳ Fund managers: Don’t open with statements about your fund. Open with questions about what your prospect is working on in their business right now. 2. Lead with trust, not terms    ↳ People buy from people they believe in, not from decks they don’t remember    ↳ Fund managers: Allocators aren’t just investing in your strategy. They’re investing in your team, your ethos, your edge - what makes you different not what makes your product work 3. Sell the story before the solution    ↳ The “why it matters” moves more money than the “how it works”    ↳ Fund managers: Your origin story is not fluff. It’s the foundation of your different. It gives allocators a glimpse of your "why" 4. Humanize your meetings    ↳ Meeting agendas need a massive glow-up. Personal > perfect. Tailored > templated. Asking > telling.    ↳ Fund managers: A one-size-fits-all dog and pony show is a missed opportunity. No one wants to be talked at. No one wants to be sold. Ask questions about that allocator’s mandate and mission. Meaningful specific. 5. Connect first, convert later    ↳ When people feel understood, they lean in    ↳ Fund managers: It’s not about convincing. It’s about belonging. Show prospects what its like to be a client of yours, how meetings and interactions would go. Give them a window into who else is a client. (Huge behavioral impact here) The best sales strategy isn’t a script about a product. In fact, it's the opposite. The best sales strategy is an anti-script. Because making our product the hero shows we might be older but not wiser. 📌 What "old way" from Wall Street's sales script would you send to the bin? 🗑 ---- 💾 Save this post if you are part of a fund house in growth mode ♻️ Repost to help someone in your network

There’s a growing set of resources that teach you how to fundraise once you’ve started, but not much that answers a very common question: Where do I start? If you’re thinking about fundraising for your startup and asking you’re asking the same question. here’s a simple framework that you can use: When I started to raise our pre-seed for Chezie, I was lost. I knew that we needed money, but I didn’t know much else after that. After a few days, I realized that I needed to answer the ‘where do I start?’ question with 3 new questions: how much, who, and when. 1. How much do I need to raise? Every investor conversation ends with an ask → I’m raising XX thousand dollars to reach YY milestone in ZZ time (usually 18-24 months). Investors won’t take you seriously if you can’t back up that number. So how do you know how much you need to raise? Work backwards! Figure out how much you need to pay your team for 18 months. Assuming 2 co-founders are making $75k and 2 engineers making $125k a year, you need $600 to cover payroll and another $120k to cover taxes/benefits → $720k total Payroll will probably be 80-90% of your monthly spend. The rest will go to software subscriptions like Gmail and admin expenses like legal counsel. Let’s assume $5k/month for those → $90k total. That’s 720+90 = $810k total. Let’s assume that things don’t go totally as planned (they won’t) and add a ~25% buffer. You need $1M for an 18-month runway. 2. Who am I going to raise money from?' This depends on how much money you need and on who’s in your network. At a high level, you can think about it this way: - $0-100k → accelerators, friends and family, pitch competitions (or any combination of these) - $100k-250k → angels + the above - $250k-1M → VC + the above 3. When do I need to raise? I’ve always approached fundraising with a desire to have next-stage milestones at my current stage. So if you’re pre-seed, you should try to get to seed-stage milestones. At the very least, raise when you have a product to show investors and some signs of customers willing to pay you. At best, raise when you have legitimate traction - anywhere from $50-250k revenue - and an idea of how you’ll get to the next milestone of $1M ARR. OR… don’t raise at all. Just had to throw that in there. This is not concrete; every company and founder is different. But, if you’re an underrepresented founder thinking about raising and unsure where to start, hopefully, this helps! #fundraising #blackfounders #startups

I have had the opportunity to serve on several nonprofit boards over the years. There's always a period of time -- as is the case currently -- when there is real concern over government funding. That's why it is so important for nonprofits, especiallty those in healthcare, to diversify its revenues streams. Just like businesses, nonprofits need financial resilience to sustain their mission and expand their impact. Here area few ways nonprofits can diversify revenue streams and create long-term stability: 1. Develop Strategic Partnerships – Collaborate with corporations, foundations, or healthcare organizations to co-develop research, technology, or community programs. These partnerships can lead to sponsorships, grants, and new funding opportunities. Too often, folks want to forge their own path. Now is the time for partnerships. 2.  Invest in Mission-Aligned Ventures – Consider sustainable investments such as impact funds or health tech startups that align with your mission while generating financial returns. It's key to have a good financial team to help assess opportunity and manage risk. Many nonprofits have started to create such funds, and more need to do so. 3. Expand Subscription or Membership Models – Offer premium content, exclusive research, or advocacy networks for a subscription fee. Organizations that provide unique insights can turn knowledge into a reliable revenue stream. 4. Utilize social media -- This way can be way to find new funders, who may not be familiar with you work. There is a science to utilizing social media -- you just can't post and think the money will come rolling in. Invest in a seasoned team who knows how to convert metrics into dollars. A diversified nonprofit isn’t just more financially stable—it’s better equipped to innovate, adapt, and drive meaningful change.  It is easier said than done -- and it takes time. What strategies have you seen work in nonprofit revenue diversification?  #NonprofitLeadership #RevenueDiversification #HealthcareInnovation

This is one of the most profound fundraising documents I've read. Fundraisers and fundraising as a profession have the power to heal our "crisis of spirit." The Surgeon General's final report reveals that loss of community is driving widespread illness and despair. But we can change that. Here's how top teams turn fundraising into community building: ✔️ Reframing the mission: Healing the "crisis of spirit" ✔️ Redesigning donor engagement: Focus on fostering genuine relationships, not just transactions ✔️ Creating purposeful volunteering: micro-opportunities for donors to find meaning through service ✔️ Leverage the power of love: Frame giving as an act of love that strengthens community bonds ✔️ Measuring community impact: social connection can be tracked and can be seen as part of our impact in addition to fundraising goals These approaches address what the Surgeon General calls our "defining health challenge": the loss of community. Who's ready to lead this fundraising revolution?

Let’s talk “Ways to Give” pages - and how to make sure they’re not just website filler 💉 If you’re at a nonprofit and not sure what that is, definitely keep reading 👀 There’s a whole lot of ways someone could give beyond a credit card - a dedicated page to lay out those options (DAFs, Stock, QCDs, Bequests, etc.) is table stakes for nonprofit websites these days 🍽️ You might be thinking “but Mitch, you’re always going on about how critical it is to have a DAF payment option in the actual donation form, why do you care about Ways to Give pages?” 🤔 DAF Strategy is like improv - it’s always yes, and! 🎭 Yes, you’ll catch the most new DAF donors by having DAFpay in your donation forms, AND existing supporters are more likely to be poking around your website. You want to meet donors wherever they are with the easiest pathways for giving 🚂 All that to say, I’ve gone through 100s of examples & have a few tips: 1️⃣ Have a Ways to Give Page There are so many good precedents readily available to be inspired by - I’ll link some below 🌟 In deciding what types of giving to include, start with the ways you’re already receiving support & some areas you’re focused on expanding into 🥇 2️⃣ Assess how it’s used to have strategic ordering A client recently asked their digital team to move DAFs to the top of their ways to give page & the response was “oh that makes sense, people click on that way more than anything else” 😮 Evaluate what is getting the most interaction & iterate. I’m confident that most orgs are getting more DAF gifts than anything else (it’s nearly 20% of philanthropy these days!) 🏆 3️⃣ Have standalone pages for those highly trafficked options When a donor searches “your org name” + “giving method” you want an SEO optimized place for them to land. With DAFs for example, your website/donor-advised-funds or /dafs is incredibly valuable real estate. Invest in it! 🏡 4️⃣ Include key information In addition to a DAFpay button, or link to your org’s verified page on the DAF Day giving site (where donors can also complete a DAF gift in 3 clicks & you’ll get notified immediately with their email), there’s some other key items: 👉🏼EIN 👉🏼Full legal name 👉🏼Official address  👉🏼Point of contact with email & phone number - this is the most controversial & yes you’ll get some spam, but you’ll also present as a real & available human being which will be key for some donors. If you do nothing else after reading this post, go check your website and see how long it takes you to find your EIN… this is the easiest way to lose a DAF donor if they’re not giving through DAFpay! 👻 They have to look you up in their portal & since so many organizations have similar names or legal names that differ from their marketing names, it’s hard to give confidently without confirming your EIN ✅ What do think is most critical for a Ways to Give Page? What’s worked best in your experience? #nonprofit #fundraising #philanthropy

Relationships first. The revenue will come. As the founder of a grassroots organization, I spend about 90% of my time focusing on building relationships—learning who people are, not just what they can do for me. I’ve learned the best way to build long-term partnerships isn’t by focusing on the partnership, it's about focusing on the PERSON. 💡 My approach to building authentic, long-term partnerships: ✔ Give first. I never enter a conversation thinking about what I can gain. Instead, I ask: How can I give? ✔ Understand their ‘why.’ What captivates them? What is their mission? What do they desire to accomplish? ✔ Build for the long-term. How do we go beyond short term wins, and focus on long term impact? The biggest funding opportunities don’t typically come from chasing currency. They come from building lasting community. #Fundraising #CorporatePartnerships #CommunityBuilding 

Welcome to the Future of Fundraising. I’ve talked extensively about the challenges fundraising organizations face not being able to personally engage with the majority of their donor base. One question my team and I still get asked regularly is “how is autonomous fundraising different from a segmented, multi-point marketing campaign?” Email and text marketing are essential fundraising tools that allow organizations to quickly share updates with supporters and promote time-sensitive events or campaigns. These campaigns do have their place, but they lack the ability to adapt to the individual preferences needed to meaningfully engage a donor. While segmentation and automation tools that personalize names or donation amounts exist, they do little to mask the fact that the communication is, in fact, a mass broadcast. In contrast, Autonomous Fundraising uses Virtual Engagement Officers (VEOs) to treat each donor communication as 1:1 and unique, the same way human relationship managers do. But unlike their human counterparts, VEOs are not challenged by scale because they tap into the power of Large Language Models (LLMs). LLMs are advanced AI systems that understand and produce messaging that feels natural and conversational, much like how we communicate with one another. They power the VEO’s ability to understand the context of past interactions, giving history, and more to generate personalized content based on that data and circumstances. Whether it’s a birthday message, stewardship note, or tailored ask, LLMs craft messages that resonate with the donor on a personal level. As a former major gift officer, I find what’s equally important about LLMs is that they "listen" and “remember” donor engagements over time. This creates a meaningful back-and-forth that builds stronger connections between donors and organizations. This extends all the way through to capabilities like multi-lingual communication, giving the VEO the ability to reach out and respond to donors in their preferred language, breaking down previous barriers to inclusion and participation. When we first introduced fully autonomous fundraising, we were told that the opt-out rate would be extremely high, somewhere between 5-10% because donors would not want to interact with AI. However, in practice, we’ve found the complete opposite. In marketing, direct mail has a 0.5-2% response rate, SMS has a 1.5% opt-out, and email .25%. In comparison, of the 17,000+ communications the VEO has sent, there is just a .12% opt out. The truth is, people don’t opt out of personal communications. We know 1:1 engagement is the best way to bring donors closer to the missions of our organizations. Increasing donor retention by even a few percentage points can have an exponential impact on the lifetime value of an organization’s donor base, which translates to long-term sustainability of an organization and its ability to fulfill its mission.