Too many rich people don’t give. Why not? Because too many charities are getting the ‘ask’ all wrong, says Theresa Lloyd.

There are many rich people who could afford to give, but don’t. Why not, when without exception those that do say how rewarding it is?

Too often “prospects” are asked and looked after by the wrong person, at the wrong time, in the wrong way – and for the wrong amount. So, if you have identified those who are significant prospects, what is the best way to engage and retain them?

Firstly, make sure they are approached in an appropriate way by the appropriate people. More than two-thirds of those interviewed in my research will at least consider a request if it comes from a peer they know and respect, and is themselves a giver.

Fundraising organisations should engage their trustees and existing significant donors in introducing and nurturing potential supporters. Time must be taken to foster an interest, and early experience of giving at lower levels must be as fulfilling as possible – while being aware of the risks of reciprocal giving.

Secondly, people giving significant sums expect to have regular opportunities to meet not only fundraising professionals, but also those running the charity such as trustees and senior management, and those involved in delivering the projects they are funding. Most said that a gift of £10,000 ought to open doors to the charity leadership, although a third thought it unreasonable to expect high-level access until they had given at least £50,000. Regardless of the “price of access”, what is clear is that most wealthy supporters expect a personalised relationship at a senior level.

Thirdly: signing cheques is not enough. Almost all who give substantial amounts of money also give substantial amounts of time. Donors want to engage directly with the causes they support because their entrepreneurial flair and the passion that drives them to become major supporters means they have ideas, expertise and energy to contribute, as well as funds. The desired level of participation varies, and changes over time, but a charity that cannot involve important donors beyond banking their cheques will struggle to retain them. Donors who have visited projects, met beneficiaries and other donors, or those who can share first-hand insights into the work, are more likely to become committed supporters and are far more likely to become the ambassadors and peer advocates of the future.

Bespoke approach

There are three other points to consider: Sometimes charities ask for too little, not too much! And while a common approach is that someone who has given £5,000 should be allocated to the ‘major donor’ fundraising team, when we asked rich donors how they define a major donation, two-thirds said it had to be £50,000 or more. Indeed, many people used terms such as “token gift” or “nominal amount” to refer to initial contributions of £5,000 or £10,000. Sometimes such donors become fervent supporters, but some feel irritated that what to them is a relatively small gift is misinterpreted as a sign of serious interest and they are then fruitlessly, and expensively, pursued. There must be a bespoke approach based on research.

Furthermore, while tax incentives matter, matched funding from public or private sources is important. There is now wide experience of this, with government programmes to encourage donations in various sectors, along with schemes supported by private philanthropists such as The Big Give Christmas Challenge. Donors responded very positively to the idea of a “deal”: that the value of their donation will be multiplied by a factor.

And finally, all this means that a culture of both giving and asking must be led from the top and deeply embedded throughout charities that seek significant and recurring philanthropic investment. The development and management of relationships with significant donor partners will only succeed if it is viewed as an institutional responsibility. Finding the funding to pay for a “major donor fundraiser” and then assuming the newly-recruited person can be left to get on with it is simply not an option. 

Theresa Lloyd is a philanthropy expert, and co-author of Richer Lives.