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The cycle of relations with the donor, impact, and personal stories: Yuliya Tychkivska and Olga Kudinenko discussed effective fundraising strategies

Yuliya Tychkivska, executive director of Aspen Institute Kyiv, and Olga Kudinenko, Chair of the Board of the Tabletochki Foundation, discussed tools for effective fundraising for Ukraine, in particular, in the West. The dialogue was held for the members of the CEO Club, a partner of Aspen Institute Kyiv. Below are the key theses in a question-and-answer format.

What is the crucial feature of fundraising?

Fundraising is inseparable from impact—the outcome the fundraiser wants to achieve. This impact that he/she will make on society or a certain area with the help of the received money is an investment.

In communications about attracting funds to Ukraine, as a rule, it sounds like “We urgently need help.” But the need to simply give money is short-term. The long-term need is to do this and see your impact. Therefore, when attracting funds, it is important to show how they will work and what they will change.

How should fundraising be communicated?

There are six emotions at work in fundraising that influence our decision to contribute money. The most effective of them is anger. Others are sympathy, fear of being in the same situation, surprise (a surprising fact is something that a person did not know), joy, sadness, and disgust.

It is difficult for our brains to imagine a large number of people. The maximum is 10 – as many as you can count on your hands. Therefore, large numbers, such as the number of children suffering from the Russian invasion of Ukraine, should be broken down. For example, to say how many small Ukrainians are forced to go abroad every day? In addition, it is necessary to personalize the person whom the donor will help as much as possible.

What does the fundraising cycle look like?

Search for donors (formation of the list) — development of relations with them — request — thanks — report. If we are talking about a new need with the same donor, you should go through the whole cycle again. Concerning donors, it is crucial to talk about yourself and them in a ratio of 1 to 3. The donor needs to understand what he will do to change the situation and what will be his role in influencing the problematic situation.

Which fundraising model is more effective – many small donations or a small number of large ones?

It is difficult to find large amounts of small money. There are only two types of organizations that can attract it: health-related and universities and other similar institutions that have a large base of people who have had some experience with them. In addition, it is worth understanding that collecting small amounts requires a large team and significant investments in communication.

What do Western donors pay attention to?

First, you must clearly understand why you are asking for funds and why you need them. Secondly, there should be a clear plan for their distribution (expenses). The third is a big idea. For example, donors in the USA like it when a fundraiser gives them a big perspective — bigger than just Ukraine.

What queries may be relevant now? In particular — for large Western donors?

No one perceives their future as something terrible. The donor also imagines him as the best. Therefore, the vision of change will work.

A topical conversation with big donors can start from the perspectives of the future. The focus of such a conversation is everything related to the restoration of Ukraine. The principle “big projects attract big funds” also works here.

What other tips for working with donors in the US can you give?

American donors don’t want to give money to organizations they don’t know. It can be effective to partner with a large organization based on a 3-way contract – they fundraise for you and pass it on to you accordingly.

In addition, it is necessary to take into account the peculiarities of the legislation. For fundraising in the USA, it is necessary to register the fund there and issue the tax form 501С3. Registration will take 2 weeks, and the form will take several months or longer. But some agencies allow the use of 501C3, as well as Ukrainian organizations in the USA, which are already conducting such activities and can help.

From the point of view of communication, it is important to understand that America loves the word “stories”. Personal stories of Ukrainians can allow them to stay in trend in this country.

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