{"id":30667,"date":"2022-06-23T18:34:11","date_gmt":"2022-06-23T22:34:11","guid":{"rendered":"https:\/\/www.qgiv.com\/blog\/?p=30667"},"modified":"2022-06-23T18:34:13","modified_gmt":"2022-06-23T22:34:13","slug":"fundraising-cycle","status":"publish","type":"post","link":"https:\/\/www.qgiv.com\/blog\/fundraising-cycle\/","title":{"rendered":"Understanding the Fundraising Cycle"},"content":{"rendered":"\n<p>To be the most effective fundraiser that you can, it\u2019s important to know about the fundraising cycle. The fundraising cycle or donor cultivation cycle is the key to gaining, engaging, and retaining donors. It can help you cultivate strong relationships with your donors and increase your donor retention. In other words, it\u2019s how you make and keep your donors happy.&nbsp;<\/p>\n\n\n\n<p>The fundraising cycle has six stages and is the key to your fundraising success. Throughout the fundraising cycle, your focus will be on engaging and building relationships with your prospects. Here are the six steps of the fundraising cycle that will help you turn potential supporters into lifelong donors.&nbsp;<\/p>\n\n\n<p><!--HubSpot Call-to-Action Code --><span class=\"hs-cta-wrapper\" id=\"hs-cta-wrapper-47c9a20b-6265-4083-89da-aa72b1508865\"><span class=\"hs-cta-node hs-cta-47c9a20b-6265-4083-89da-aa72b1508865\" id=\"hs-cta-47c9a20b-6265-4083-89da-aa72b1508865\"><!--[if lte IE 8]>\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/8356283\/47c9a20b-6265-4083-89da-aa72b1508865\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"hs-cta-img\" id=\"hs-cta-img-47c9a20b-6265-4083-89da-aa72b1508865\" style=\"border-width:0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/8356283\/47c9a20b-6265-4083-89da-aa72b1508865.png\" alt=\"Building a recurring giving program that nurtures and expands donors'  relationships with your nonprofit will set you up for success now and for years  to come. Download the Radical Recurring Giving Guide to find out how!\"><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(8356283, '47c9a20b-6265-4083-89da-aa72b1508865', {\"useNewLoader\":\"true\",\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Identification&nbsp;<\/h2>\n\n\n\n<p>The first step of the fundraising cycle involves finding the donors and potential donors you want to cultivate. If you\u2019re not sure where to start, consider the people in your network who would be most likely to support your organization\u2019s mission. Then, ask your team to do the same with their networks as well.&nbsp;<\/p>\n\n\n\n<p>Once you\u2019ve exhausted your personal networks, start conducting prospect research. <a href=\"https:\/\/www.qgiv.com\/blog\/data-analytics-for-nonprofits\/\" target=\"_blank\" rel=\"noreferrer noopener\">Collect data<\/a> about your current donors and potential donors including information like their age, backgrounds, wealth indicators, giving histories, and motivators. You can then use that information to determine whether your potential donors are able and willing to give.&nbsp;<\/p>\n\n\n\n<p>A helpful tool that can aid you in organizing the data you collect is a CRM database. With a good nonprofit CRM platform, you can store and organize all of your data and use it to <a href=\"https:\/\/www.qgiv.com\/blog\/donor-communication-essential-guide-to-segmentation\/\" target=\"_blank\" rel=\"noreferrer noopener\">segment your donors<\/a> with different filters. This is a cycle, so storing all of your data somewhere you can come back to and revisit will help you maximize your time and make the identification step easier.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Qualification&nbsp;<\/h2>\n\n\n\n<p>Once you\u2019ve completed your list of potential donors, it\u2019s time to start narrowing it down and prioritizing the donors you want to cultivate first. Look at factors like how invested your potential donors are in your mission, whether they\u2019re likely to donate, if they\u2019re able to donate, and how they\u2019d like their donation to be used by your organization.&nbsp;<\/p>\n\n\n\n<p>During this step, don\u2019t forget to consider what donation methods your potential donors prefer. Do any individuals prefer giving cash over making a credit card payment? Are <a href=\"https:\/\/www.qgiv.com\/blog\/nonprofit-trends\/\" target=\"_blank\" rel=\"noreferrer noopener\">digital wallets<\/a> popular in your donor base? Is there a lot of interest in cryptocurrency? These are important things to consider and remember as you move forward through the fundraising cycle.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Cultivation&nbsp;<\/h2>\n\n\n\n<p>Cultivation is one of the most important steps in the fundraising process. Once you\u2019ve prioritized your list of donors, it\u2019s time to start building a relationship with them. This is the step where you treat the donor as a whole person and cater to their interests.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Engage your donors by sharing <a href=\"https:\/\/www.qgiv.com\/blog\/4-storytelling-tips-from-a-master-nonprofit-storyteller\/\" target=\"_blank\" rel=\"noreferrer noopener\">resources, articles, and stories<\/a> with them. Invite donors to activities and events you\u2019re hosting to give them an idea of how your nonprofit raises money. You can also invite your donors for a behind the scenes look at the work your organization does by extending volunteer opportunities or giving them special access.&nbsp;&nbsp;<\/p>\n\n\n\n<p>While you\u2019re engaging donors, ask them to share their thoughts, opinions, and any feedback they have. Send out surveys or meet one-on-one with donors to get to know them better. Keep track of all your interactions with potential donors, and make sure you keep note of what they share with you.&nbsp;<\/p>\n\n\n<p><!--HubSpot Call-to-Action Code --><span class=\"hs-cta-wrapper\" id=\"hs-cta-wrapper-dcd0fd2f-ea3c-493e-8ca3-69e90a79fd60\"><span class=\"hs-cta-node hs-cta-dcd0fd2f-ea3c-493e-8ca3-69e90a79fd60\" id=\"hs-cta-dcd0fd2f-ea3c-493e-8ca3-69e90a79fd60\"><!--[if lte IE 8]>\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/8356283\/dcd0fd2f-ea3c-493e-8ca3-69e90a79fd60\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"hs-cta-img\" id=\"hs-cta-img-dcd0fd2f-ea3c-493e-8ca3-69e90a79fd60\" style=\"border-width:0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/8356283\/dcd0fd2f-ea3c-493e-8ca3-69e90a79fd60.png\" alt=\"Download our recurring gift email templates to start growing your recurring  giving program!\"><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(8356283, 'dcd0fd2f-ea3c-493e-8ca3-69e90a79fd60', {\"useNewLoader\":\"true\",\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Solicitation&nbsp;<\/h2>\n\n\n\n<p>Now that you\u2019ve laid the groundwork and built a solid relationship with your potential donors, it\u2019s time to ask for donations. With all of the information that you\u2019ve gathered about your prospective donors in the first three steps, tailor your asks to their communication preferences, whether they prefer direct mail, email, text, social media, one-on-one meetings, or any combination of channels.&nbsp;<\/p>\n\n\n\n<p>Personalizing your ask is a very effective way of encouraging your donors to give. Rather than sending out communications en masse with general language, try to put your donors\u2019 names on every piece of communication. You can also suggest appropriate gift amounts based on your prospects\u2019 financial backgrounds, so they don\u2019t feel pressured to give more than they\u2019re able or comfortable with.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Recognition&nbsp;<\/h2>\n\n\n\n<p>Thanking your donors is integral to retaining your donors and continuing to build strong relationships with your donor base. Every time someone makes a donation of any size, make sure to send a <a href=\"https:\/\/www.qgiv.com\/blog\/a-donor-thank-you-letter-template-plus-extra-tips\/\" target=\"_blank\" rel=\"noreferrer noopener\">thank you email<\/a> or even a handwritten note or phone call. Recognize your donors by putting their names in a public place like your website and in your annual report. When you host events, make sure to invite your donors and recognize them in event programs. All of these actions make your donors feel valued by your organization and will strengthen your relationship with them!&nbsp;<\/p>\n\n\n\n<p>Another way to show your donors you value their support is by being authentic and transparent about how you\u2019re using their donations. Demonstrate your donors\u2019 impact by posting pictures, videos, and stories about how their gift is being put to work on your social media accounts and in <a href=\"https:\/\/www.qgiv.com\/blog\/nonprofit-newsletter\/\" target=\"_blank\" rel=\"noreferrer noopener\">nonprofit-wide newsletters<\/a>. With this kind of transparency, your donors will trust you and will be more likely to continue donating in the future.&nbsp;<\/p>\n\n\n<p><!--HubSpot Call-to-Action Code --><span class=\"hs-cta-wrapper\" id=\"hs-cta-wrapper-b98ef782-63d8-4e1e-96a5-dfdf3ed80da6\"><span class=\"hs-cta-node hs-cta-b98ef782-63d8-4e1e-96a5-dfdf3ed80da6\" id=\"hs-cta-b98ef782-63d8-4e1e-96a5-dfdf3ed80da6\"><!--[if lte IE 8]>\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/8356283\/b98ef782-63d8-4e1e-96a5-dfdf3ed80da6\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"hs-cta-img\" id=\"hs-cta-img-b98ef782-63d8-4e1e-96a5-dfdf3ed80da6\" style=\"border-width:0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/8356283\/b98ef782-63d8-4e1e-96a5-dfdf3ed80da6.png\" alt=\"Download these donor appreciation email templates to help you build stronger  relationships with all of your donors!\"><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(8356283, 'b98ef782-63d8-4e1e-96a5-dfdf3ed80da6', {\"useNewLoader\":\"true\",\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Stewardship&nbsp;<\/h2>\n\n\n\n<p>Now that you\u2019ve created a relationship with your donors, it\u2019s time to ensure your donors stay engaged and connected with your organization. Continue recognizing donors and <a href=\"https:\/\/www.qgiv.com\/blog\/5-quick-and-simple-ways-to-show-donor-appreciation\/\" target=\"_blank\" rel=\"noreferrer noopener\">showing your appreciation<\/a> for their support regularly. Implement regular stewardship activities in your nonprofit like sending birthday wishes and holiday cards to your supporters every year and compiling reports for your donors on the work they\u2019re helping to make possible.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Just because you\u2019re at the end of the cycle, that doesn\u2019t mean that the work stops here. Even as you steward your donors, remember to put them back through the cycle so you can continue building strong relationships with your donors and give them opportunities to upgrade your support.&nbsp;<a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/8356283\/716fadc8-6266-4069-9079-5fed5a0c4cf2\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><\/p>\n\n\n<p><!--HubSpot Call-to-Action Code --><span class=\"hs-cta-wrapper\" id=\"hs-cta-wrapper-716fadc8-6266-4069-9079-5fed5a0c4cf2\"><span class=\"hs-cta-node hs-cta-716fadc8-6266-4069-9079-5fed5a0c4cf2\" id=\"hs-cta-716fadc8-6266-4069-9079-5fed5a0c4cf2\"><!--[if lte IE 8]>\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/8356283\/716fadc8-6266-4069-9079-5fed5a0c4cf2\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"hs-cta-img\" id=\"hs-cta-img-716fadc8-6266-4069-9079-5fed5a0c4cf2\" style=\"border-width:0px;\" height=\"225\" width=\"750\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/8356283\/716fadc8-6266-4069-9079-5fed5a0c4cf2.png\" alt=\"New call-to-action\"><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(8356283, '716fadc8-6266-4069-9079-5fed5a0c4cf2', {\"useNewLoader\":\"true\",\"region\":\"na1\"}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final thoughts&nbsp;<\/h2>\n\n\n\n<p>Not every nonprofit\u2019s fundraising cycle will look the exact same, but just remember that the cycle is a never-ending process. While it does take time to run donors through the process, your outreach to potential donors and upgrades to existing donors should always be an ongoing effort. Ultimately, by focusing on the fundraising cycle, you\u2019ll be able to cultivate lifelong supporters for your mission and continue growing as an organization.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>To be the most effective fundraiser that you can, it\u2019s important to know about the fundraising cycle. The fundraising cycle or donor cultivation cycle is the key to gaining, engaging, and retaining donors. It can help you cultivate strong relationships with your donors and increase your donor retention. In other words, it\u2019s how you make [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":30669,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[264],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Understanding the Fundraising Cycle - Fundraising Blog for Nonprofit, Educational, and Faith-Based Organizations<\/title>\n<meta name=\"description\" content=\"To be the most effective fundraiser that you can, it\u2019s important to know about the fundraising cycle. Learn about the six steps here!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.qgiv.com\/blog\/fundraising-cycle\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understanding the Fundraising Cycle - Fundraising Blog for Nonprofit, Educational, and Faith-Based Organizations\" \/>\n<meta property=\"og:description\" content=\"To be the most effective fundraiser that you can, it\u2019s important to know about the fundraising cycle. 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