by Mary Ann Mcgivern

Created on: July 01, 2010   Last Updated: August 05, 2010

Most people give generously.

Most people make contributions to at least five nonprofit groups every year. They often give a couple of times a year. They may give to their faith community weekly.

Most donations come from individuals.

Most of the money given to nonprofits, about 75%, comes from individuals. That's about $184 billion dollars in 2002 in the United States. The rest comes from corporations, foundations and bequests in about equal amounts.(Source: Gill Foundation)

So while nonprofits should leave no stone unturned in their search for dollars, it makes sense to put most effort where most of the money is, focusing on the individual ask.

The costs and benefits of the individual ask.

Of course, it is labor-intensive to ask individuals for gifts to support an organization. The group has to create a list of people to ask, research the appropriate amount to ask for, and decide the method of asking. We know that if a person is judged likely to give, there is a 50-50 chance they will say yes if they are asked face-to-face. By phone that ratio drops to one in four saying yes. A mail appeal to a good list will yield about 3%.

This means one would need to ask 20 likely wealthy donors for $1000 to raise $10,000; and in reality, since some who say yes will give less than $1000, 25 or 30 potential donors must be visited. This is a lot of work. But it is work with a lasting effect. These donors will give year after year, gradually increasing their gifts. Even those who said no initially, may give when their cash flow improves or when other obligations are met.

Many groups use a membership model to create a donor base of 200 members who give $50 a year - plus responses to mail and email appeals and participation in events such as concerts and awards dinners. Raising small gifts is even more labor-intensive, but again, these are gifts that will be renewed again and again over the life of the organization.

The key to maintaining a strong base of individual donors is maintaining a relationship. The persons must be asked. They must be thanked. They should receive reports, the same way foundations receive reports. They should be invited to funding events and to talks about the group’s work. They should be asked to volunteer to further the work themselves. They should be asked why they give. Some of them should be invited to head task forces and serve on the board of directors. Maintaining a relationship is labor-intensive, but the rewards are great.

The costs and

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