Matchmaking: How to Know When Funders Are a Good Match for Your Nonprofit?

Reeti Mathur, ICG Senior Consulting Specialist - February 4, 2021

You’re all set to take your nonprofit to the next level. Your efforts on the ground are showing tremendous impact. You have the capacity to manage larger formalized funding. Now, all you have to do is find funders to solidify your programs and reach more people.

It’s at this critical stage that nonprofits and fundraisers invest a lot of time and resources into devising fundraising calendars and creating funder matrixes and databases. After all, there are just so many feasible options out there to choose from, including private foundations, corporate donors, government agencies and international aid organizations. 

The more options we have, the greater the chances of receiving support from a larger number of donors, right? Actually, you may be surprised that the answer to this is ‘no’!

 It all comes back to the age-old saying: less is more! It's hard to imagine that a smaller list of donors could yield better results, but it’s true! It is here that we become Matchmakers (and not the kind from the musical Fiddler on the Roof).

The science behind selecting prospective donors is not complex but requires us to become the Sherlock Holmes of the fundraising world. We must develop a keen eye to see what usually goes unnoticed. 

Honing these skills not only helps nonprofits and fundraisers save time and money, but substantially increases your chances of prospecting better donors. Once you’ve narrowed down your methods, your list of prospective donors is crisp, succinct, and leaves you with a better chance at positive outcomes. All the while developing a better return on investment.

Keep Things Fresh

Similar to how you refresh your skills periodically, refresh your donor lists. An easy way to keep your list of donors active and up-to-date is to start by conducting an annual prospect research at the beginning of the year. Follow that up with quarterly refresher checks to make sure your prized donors have not changed submission dates (many deadlines have been postponed amidst the pandemic, for instance) or refocused their funding to new areas of interest.

The Fine Tooth Comb

Once you come across a funder that seems valuable, don’t just check the thematic areas they support. Go through their website with a fine tooth comb. Funders spend a lot of time developing their missions, the areas they support, funding guidelines, submission requirements, dates, points of contact, and so on.

These resources are built knowing that nonprofits of all sizes from different geographic regions and mission focus will want to approach them. To streamline their process, funders preempt every possible question, query, and requirement that a nonprofit may have. 

Look out for the fine print. Spend that extra 10 minutes reading the FAQs. It could save you serious time and effort down the line, and lead to a more refined list of funders perfect for approaching. 

Eligibility

Now that you’re satisfied with the broader aspects of making the perfect match, look out for the eligibility criteria. Donors go to great lengths to describe what their limitations are—or are not. Whether it is the type of organization—public charity, tax-exempt nonprofit, social enterprise, religious organization—or the kinds of activities they support, donors have predefined criteria for everything!

For instance, if your organization works with abused women, you’ve identified a funder whose sole mission is to uplift women. The amount of funding they provide and the type of organizations they support are also a great match. There could still be a chance that they only sponsor galas to help raise money for the cause. Or they may not provide direct program support.

It will be worth your while to read the eligibility guidelines as thoroughly as possible. Go through all related links and resources the donor may provide. Often, donors will provide you with a quick eligibility quiz that you can take to determine if it is worth moving forward.

The Invitation

Another crucial detail to look out for is whether the donor accepts unsolicited applications. This often unnoticed element of the application process is critical, and sometimes not easy to detect. 

What this means is that your nonprofit needs to be invited by the donor to apply for funding. The grant is usually awarded to an organization from a pool of those with whom the donor already has a long-term relationship.

That is not to say your nonprofit cannot apply to this particular donor. It does, however, mean you will need to build a relationship. Look at this as a long-term investment toward something fruitful.

Prepare for the Unexpected – Always!

Before diving into identifying suitable donors for your organization, it's important to remember that funders, even those that have been around for a long time, sometimes are compelled to modify their guidelines. 

The COVID-19 pandemic is a classic case. Within months of the pandemic, funders who otherwise supported vastly different causes refocused their funding efforts. For instance, funders who previously supported educational programs for low-income children moved their focus to programs providing essential services to low-income families who were hit hard by the pandemic.

Not only did their focus change, but we saw many funders bring down submission deadlines and offer on-going, need-based submissions. Those previously only known to provide program support began offering unrestricted funding for frontline workers, emergency services, and essential services.

As nonprofits and fundraising professionals, what we must take from this is an important lesson in tracking our prospective donors. If there’s anything 2020 taught us, it was to never take anything for granted.

Donor research is fast becoming a specialized field in the nonprofit arena. With tricks aplenty to better serve your community, all you need to do is learn the tricks-of-the-(new) trade! 

To learn more on how to become an ace donor Matchmaker or using our expertise to help your nonprofit, get in touch with us on info@interestcurve.com or visit our website to access the toolbox of templates that we have available!

Bonus

Apart from the traditional donor prospect resources like fundforngos, grantwatch, grants.gov, and globalgiving, be sure to check out Instrumentl. This keyword-specific grant research tool can help you funnel out prospective donors closet to the profile of your nonprofit!