In this tight economy, many nonprofits are considering new ways to generate revenue by redesigning their fundraising strategies to maximize relationships with donors, volunteers and prospects. An important -- but often overlooked -- stakeholder group that provides new funding potential is women.
Women are now financial decision-makers.
Do not think of women as just an accompaniment in donor meetings. Women have increased their earning power, manage profitable businesses and have deeper control over family financial portfolios and giving. On average, women live five years longer than men and they are more likely to control their family's money.
Women now control more than 51% of personal wealth nationally.
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There is a difference in how women approach philanthropy.
Research shows that female donors are more focused on relationship-building than male donors. This translates into longer cultivation time for female prospects. Women want to care about and connect with both the organization and the individuals served. Women are very comfortable in networks and they see philanthropy as a way both to socialize and to forge community.
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Despite longer lead times, cultivating women has large payoffs. Research suggests that women are more generous than men, even after accounting for variations in income, race and education. The Women's Philanthropy Institute at the Center on Philanthropy reports that single women give almost twice as much as single men, and that married women give significantly more than both single and married men.
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83% of all purchasing decisions are made by women.
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How should your nonprofit take advantage of this opportunity?
- Take time to understand your donors' giving patterns and ensure you know who is actually writing the checks. Does the signer of a check reflect who made the decision to support your cause? Are you tracking that decision correctly?
- When cultivating couples, schedule appointments so that both decision-makers are present.
- Make sure that you visit with as many individual women donors as men donors.
- Always ask women donors what they care about and how they would like to connect with your organization.
- Provide opportunities for women to volunteer in meaningful ways and to network.
- Recognize women's contributions of time and talent and celebrate their investment in your organization.
What if your donor base is primarily female?
Look to deepen their engagement. For example, increase ways in which women can develop as leaders and mentors and consult with them on how best to communicate the impact of your organization's work. You can also help women to build donor education programs and teach their children about the joy of philanthropy.
Why bother?
We have seen the growth and power of women's giving circles. Savvy nonprofits have proven that you can get strong financial results by focusing on women. For example, the American Red Cross's Tiffany Circle brings in more than $40 million a year and the United Way's Women's Leadership program has reached $132 million a year. In today's results-driven climate, your organization's bottom line can also benefit from women and their giving.
In addition to improving the bottom line, engaging women as philanthropic leaders provides valuable perspectives at the decision-making level. Women are also staunch champions for their causes. Loyal and satisfied women donors should become every nonprofit's strongest marketing and communications engine.
Don't miss out.
Reflect today on how you are making the most of women donors, volunteers and prospects.
For more information on how Orr Associates, Inc. can help, please contact Kathleen E. Loehr, Managing Director at kloehr@oai-usa.com or (202) 719-8051.