But first…
Let’s cover transactional fundraising first, so we know what NOT to do.
In a transactional donor relationship, the donor gives a gift, and the nonprofit says “thank you,” often without much engagement afterward. It’s a one-off, almost like buying a product—something quick, simple, and temporary.
The plea from fundraising experts to move away from the transactional to the transformational is a good thing. People aren’t (and don’t like to be) ATMs.
That’s because transformational giving goes much deeper. It’s about creating a sense of partnership and shared purpose (vs a one-sided relationship).
Transformational fundraising also means having a long-term relationship with a donor. Their first donation is the start, not the end (if you do it right).
Both sides win.
But how do you DO transformational fundraising?
Let’s look at 6 strategies:
1: Thank Donors in a Timely and Human Way
Donations of any size should be acknowledged with gratitude, but personalizing the Thank You and making sure it’s sent in a timely fashion is vital.
Research shows that donors prefer being thanked in two ways:
- Show their impact: Make it clear how their donation is helping your cause by sharing specific stories or results. Instead of just thanking them generically, explain how their contribution made a difference.
- Personalize the acknowledgment: Whether it’s a handwritten note or a personalized email, recognize them as individuals. Avoid sending generic, automated messages.
If you’re considering a public Thank You of a donor – be sure to ask first. I’ve met plenty of donors who never wanted their name mentioned anywhere!
Honoring their preferences can build on trust, which will strengthen your long-term relationship.
2: Co-Create Solutions with Donors
Today’s donors want to feel and be part of the solution. Transformational fundraising involves engaging donors as thought partners, not just financial supporters.
I’m not talking about letting them design your next program or telling you how to do this or that in the organization – your team members are still the experts.
It’s about making them part of the conversation, so they can see the big picture alongside you. You might invite them to engage on an advisory board, weigh in on your organization’s next strategic plan, or just chat over coffee about your organization’s challenges and future.
3: Share Impact Year-Round
Don’t wait until you send your organization’s annual report to showcase your impacts to your donors. Talk about impacts year-round.
Highlight how donor support is making a difference—through newsletters, personalized emails, community gatherings, and social media.
And when you talk about impacts – include your numbers (how many people were helped, etc.) but don’t skimp on the storytelling. Impacts come alive when we can empathize with a person or family’s situation. Tell those stories where possible, while maintaining dignity for those you serve.
4: Share a Glimpse Behind-the-Scenes
Giving donors a “behind-the-scenes” look can make them feel more invested and connected to your mission.
This might look like inviting them to meetings where they can meet the board and team, tours of your physical spaces (where applicable), volunteer opportunities to see the mission at work, or to get an early draft of your latest strategic plan.
This kind of transparency turns donors into insiders. This can lead to consistent giving, and also larger contributions.
Even virtual experiences, like webinars or video meetings with the communities you serve, can be powerful. The goal is to create moments that leave a lasting impression, fostering a desire to keep supporting your cause.
5: Build a Sense of Community
Donors often want to feel part of a community.
Hosting social events, volunteer opportunities, or informal get-togethers can help create that sense of connection. For example, invite donors to volunteer alongside staff or meet other donors at networking events. You could even give your group of supporters a name, like “The Changemaker Circle” or “Hope Givers.” (Something applicable to your unique brand, of course!)
Building a community around your cause makes donors feel like they belong. Belonging can increase their likelihood to continue supporting your work.
The more invested they feel in the community, the more transformational their giving can become.
6: Have (and follow) a Donor Stewardship Plan
Finally, put all these strategies into a formal donor stewardship plan – one you’re confident your team can follow.
This plan should outline the step-by-step process for how you and your team will engage with donors after they give, and throughout the year. For example:
- How / when will you thank them?
- How will you recognize them based on their giving level?
- What kind of communication will you send throughout the year?
- What events or special opportunities will you offer?
Putting your transformational fundraising strategy on paper as a donor stewardship plan can help get everyone on your team on the same page – and help build lasting relationships with your supporters!
