BUILDING TRUST WITH FUNDERS

STRATEGIES FOR BOTH NEW AND EXSISTING RELATIONSHIPS

Establishing and maintaining trust with funders is a crucial element of successful fundraising and long-term organizational growth. Whether you’re aiming to build a relationship with a funder who doesn’t yet support your organization or nurturing a partnership with an existing funder, trust and reliability are the foundation of these interactions. Brilliant execution of the work doesn’t hurt either! Here are some tips on how to build and sustain trust with funders, including strategies for engaging with funders who don’t accept unsolicited applications and tips for maintaining strong ongoing relationships.

Building Trust With Potential Funders

1. Understand Their Interests and Priorities

  • Research Thoroughly: Before reaching out to a potential funder, invest time in understanding their mission, values, and funding priorities. Review their website, annual reports, and any available publications to gather insights into what drives their funding decisions. See whom else they have funded and try to interpolate their approach and worldview, and how you might fit into or usefully enhance them.
  • Identify Common Ground: Find areas where your organization’s goals dovetail with the funder’s interests. This alignment is crucial for crafting messages that resonate and demonstrating how your work supports their mission.

2. Engage in networking and use your network!

  • Attend Events and Conferences: Participate in events where potential funders are present. Conferences, workshops, community gatherings and even webinars are excellent opportunities to make initial connections and learn more about funders in a less formal setting.
  • Leverage Existing Connections: Use your network to get introductions. Reach out to mutual contacts who may be able to facilitate a meeting or provide insights into the funder’s preferences. A warm introduction from a mutual connection can open doors and spark the conversation. Reach out to program officers or other staff members to learn more about the funder’s interests and explore ways to align your work with their strategic goals.

Networking is particularly important for funders who don’t accept unsolicited proposals. Branding and marketing your work are the other important pieces to making sure you catch their attention.

3. Craft a Personalized Approach

  • Tailor Your Outreach: When making initial contact, personalize your communication. Reference specific aspects of the funder’s work that you admire and explain how your organization aligns with their mission. Avoid generic pitches, don’t overdo it, and focus on building a genuine connection.
  • Request a Meeting: If possible, request a face-to-face meeting or a call. An in-person or virtual conversation can help build rapport and provide a platform for a more meaningful exchange.

In some cases, you may want to bring a funder roundtable together, likely with other partners and stakeholders, to build up a big new strategy or to  brainstorm approaches to addressing an emerging threat or opportunity. This high-bar outreach requires careful preparation and substantial coordination, and personal and organizational credibility.

4. Provide Value Upfront

  • Share Relevant Information: Offer valuable insights or reports that might interest the funder, even if they are not directly related to a funding request. This demonstrates your organization’s interest and capacity for advancing their impact and expertise.
  • Showcase Successes: Highlight your organization’s achievements and the impact of your work. This can include sharing case studies, success stories, news articles or data that illustrates your effectiveness in addressing key issues.

5. Collaborate and demonstrate thought leadership

  • Share Expertise: Contribute to industry discussions or providing thought leadership on topics related to the funder’s interests can bring you to their attention. Publishing articles, hosting webinars, or participating in panels can showcase your organization’s expertise and help them imagine your work in their portfolio.
  • Collaborate on Research: Explore opportunities to collaborate on research or initiatives that align with both your organization’s goals and the funder’s priorities.

Building Trust With Exsisting Founders

1. Communicate Regularly and Transparently

  • Update on Progress: Keep funders informed about the progress of the projects they support. Regular updates, including both successes and challenges, help build trust and demonstrate accountability. Make sure that you adhere to deadlines and provide high-quality progress reports and evaluations the funder may require, at a minimum. These can be a lot of work: budget staff time in advance to make space for this responsibility, and be aware of what the funder needs (and what good monitoring, evaluation and learning practices require) so that you are collecting and documenting relevant information on an ongoing basis, rather than scrambling to pull together data at the last minute.
  • Keep funders engaged with periodic updates, newsletters, or invitations to events. This ongoing communication helps maintain a connection and keeps your organization on their radar.
  • Be Honest and Open: Address any issues or setbacks transparently. Funders appreciate honesty and are more likely to continue supporting organizations that communicate openly and are on a high-ambition learning journey together.

2. Demonstrate Impact

  • Provide Detailed Reports: Deliver comprehensive reports that highlight the outcomes and impact of the funded project. Use data, anecdotes and visual elements to convey the success and significance of the work.
  • Share Stories: Personal stories and testimonials from beneficiaries can be powerful tools for illustrating the impact of the funder’s support.

3. Seek and Act on Feedback

  • Request Input: Ask for feedback from funders on your reports and overall partnership. This shows that you value their perspective and are committed to continuous improvement.
  • Implement Suggestions: Act on the feedback provided and communicate any changes or improvements made as a result. This responsiveness reinforces your dedication to the partnership.

You may also wish to seek feedback from a variety of stakeholders and experts – and summarize this feedback for funders, too: they may find it valuable to get deeper insights into the field, as they are often operating with more of a bird’s eye view of their field.

 

Some funders know they cannot fully fund you, but they may be able to recommend you to other funders or suggest additional options for resources or partnerships. Their network and convening role can be invaluable.

4. Address Issues Proactively

  • Resolve Conflicts Promptly: Address any issues or conflicts promptly and professionally. A proactive approach to resolving problems helps maintain trust and demonstrates your commitment to the partnership.
  • Seek Solutions Together: When challenges arise, involve funders in finding solutions. This collaborative problem-solving approach reinforces the partnership and shows that you value their input.

5. Foster a Collaborative and Generative Relationship

  • Engage in Strategic Discussions: Involve funders in strategic discussions about the project or broader organizational goals. This collaborative approach can lead to new ideas and strengthen the partnership.
  • Invite Participation: Offer opportunities for funders to participate in events, site visits, or other activities related to the funded project. This engagement fosters a deeper connection and investment in your work.
  • Share Innovations: Inform funders about new initiatives, innovations, or changes in your organization. Keeping them informed about your evolving work can lead to new opportunities for collaboration.
  • Show Appreciation: Regularly express gratitude for the funder’s support. Acknowledge their contributions publicly (if appropriate) and privately to reinforce the value you place on their partnership.
  • Celebrate Milestones: Celebrate key achievements and milestones with your funders. Sharing successes and recognizing their role in those accomplishments fosters a sense of shared achievement.

Building and maintaining trust with funders is essential for both securing and sustaining support. By understanding funders’ interests, engaging in meaningful networking, and providing value, you can establish strong relationships with potential funders. For existing funders, transparency, impact reporting, and collaboration are key to maintaining a robust partnership. Even when funders don’t accept unsolicited applications, proactive engagement and thought leadership can pave the way for future opportunities. Remember, trust and collaboration are built over time through consistent, open, and genuine interactions – and form the foundation for successful and enduring funding relationships.

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