Penelope Burk: Create Restricted Funds
Somebody has asked about restricted vs. unrestricted funds. Penelope says, "The accounting office is not your ally in creating restricted funds."* The chief executive officer is. 78% of chief executive officers push development staff to raise unrestricted funds. When asked if it could be proven that restricted fundraising raises more money, 80% of CEOs were willing to change strategies.
Test a restricted ask vs. an unrestricted ask. Penelope says that the restricted ask group will show an increased desire to give in the future, and higher average gift amounts. They may also give more unsolicited gifts.
Use the results of this test to forecast what would happen over time if all asks were restricted asks.
Also, when you offer restricted giving opportunities, many donors will actually opt for unrestricted, but by asking for restricted, you've made it clear that your nonprofit has a clear and strategic focus.
*Fundraising Nerd caveat: but remember the nerds on your team are key to tracking this data consistently and correctly, and making sure that your fundraising system can talk to your accounting system about it.
Click here to see all posts from Penelope Burk's talk. In addition to donor relations, she shared some fascinating information and ideas on talent management: why fundraisers leave, and what organizations can do to keep them.