The Art and Science of Fundraising: Fusing Emotion and Evidence
Scrabble tiles on a wooden surface spell “Investment”
Guest Writer Profile
This month, Sarah is passing the mic to a special guest writer. As a dedicated nonprofit professional with a background in donor relations and fundraising, Improved Insights Research and Evaluation Consultant, Carol Martincic, MNO, brings a wealth of experience to the table. Carol has an established track record of managing major giving initiatives, developing donor solicitation strategies, and conducting prospect research. In this guest blog for Improved Insights, Carol gives her expertise on how nonprofits and other informal education organizations can more clearly align their storytelling efforts with funder priorities, and the role that evaluation has to play in communications strategies.
Introduction
When seeking financial support, whether through loans or other avenues of opportunity, it's understood that such asks are sensitive and requests for investment are part of a delicate process. The third sector is no exception. How should an organization approach discussion with its stakeholders in these situations? I have found that the key to engaging funders lies in a storytelling approach that intertwines the emotive power of individual testimonials with the persuasive clarity of data. By drawing on the strengths of both program participant stories and quantitative insights, organizations can illustrate the profound effects of their work, ensuring funders feel directly connected to the success and progression of the programs they financially support and fund. In the following sections, I will discuss some key strategies and elements for effective funder communication, combining storytelling and evaluation to create a compelling case for funder investment, fostering trust, and securing sustained support for mission-driven work.
What do funders want to know?
Like any other financial contributor, funders are keen to understand the tangible outcomes and real-world benefits of programs, seeking assurance that their investments (monetary and otherwise) are facilitating meaningful change and sustainable impact. Beyond immediate outputs, funders scrutinize whether programs align with their values and goals, the measurable long-term impact of initiatives, and the sustainability and capacity of the organization to continue delivering results.
How do you effectively tell stories of impact about your program(s)?
Bridging the gap between funders’ interests and effective communication entails translating the intricate workings of a program into digestible pieces of key information. I’ve found success with three strategies: creating a narrative arc, involving your audience, and maintaining cultural sensitivity and ethics.
Creating a narrative arc is formulaic and progresses with a beginning, middle, and end. When employing this strategy, I recommend outlining the challenge or need (the beginning), the program itself as an intervention (the middle), and the outcome or improvement the program had (the end).
Involving your audience is usually posed as a call to action, such as inviting them to participate in the organization’s mission by supporting the program, whether through volunteering, donations, or advocacy efforts.
When sharing testimonials from program participants, it is critical to maintain cultural sensitivity and ethics. Informed consent must be obtained to share these stories and experiences. I also recommend engaging with a sensitivity reader as well. A sensitivity reader is an individual who reviews the organization’s materials, including narratives and other communication pieces, to ensure cultural accuracy, inclusivity and respect toward diverse communities and perspectives. This individual may be a professional, such as a consultant, past program participant, or other volunteer-led role.
What is convincing and compelling?
Effective storytelling is only one piece of the puzzle. Persuasive narratives include convincing and compelling elements, including: humanizing the story with personal testimonials; incorporating data and outcomes to illustrate effectiveness and highlight transformation; and showing the funder’s role and impact.
Humanizing the story: Personal stories and testimonials are often at the heart of a program’s storytelling. They put a face to the cause and allow funders to connect on an emotional level. These narratives should be authentic, respectful, and demonstrate a clear before-and-after scenario to highlight the transformation.
Incorporating data and outcomes to illustrate effectiveness: While emotional engagement is crucial, it needs to be balanced with empirical, concrete evidence that the program is effective. Data and measurable outcomes give credibility to the stories and show that the organization is not only inspiring but also results-oriented and successful in its mission. A well-designed data visualization, table, infographic, and succinct impact report (like a one-pager) can effectively convey this information.
Showing the funder’s role and impact: Funders want to know that their contributions are making a difference. By clearly illustrating how funder support has led to specific outcomes, nonprofits can create a direct link between the act of giving and the success of their programs. This could be in the form of stories that show the journey of a dollar from donation to impact, or explicit explanations of how funding gaps were filled. It’s also important to articulate the potential for future impact with continued or increased support, thereby giving the funder a sense of being part of the ongoing story.
These elements, when woven together, complement effective storytelling strategies and can be highly persuasive to funders. They offer a complete picture that combines the emotional pull with the rational assurance that their investment is well-placed and will continue to yield positive results.
How can evaluation help enhance the above?
Evaluation plays a crucial role in enhancing the effectiveness of storytelling for nonprofits in several ways, serving as: evidence of impact, accountability (continuous improvement as well as transparency), and funder engagement.
Evidence of impact: Once again, it cannot be understated that evaluation provides the data and evidence necessary to demonstrate impact. By systematically assessing the outcomes and effectiveness of their programs, organizations can quantify the change they’re making. This data can be used to support the stories of individual or community transformation, adding credibility to personal anecdotes with expert-vetted data.
Accountability: Evaluation helps organizations understand what is working and what isn’t. This continuous learning allows them to adapt and improve their programs. Sharing this process of improvement and program refinement can make for a convincing narrative, as it shows the funder that the organization is committed to maximizing its return on investment. Likewise, evaluation fosters accountability. It shows the funder that the organization is serious about achieving results and is monitoring its progress. This can reassure funders that their contributions are being used responsibly and encourage future philanthropy.
Funder engagement: Through evaluation, organizations can identify specific areas where funder contributions have had a meaningful impact, which can be a powerful way to engage, motivate, and activate funders. This type of targeted storytelling, backed by evaluation data, helps funders see the value of their investment and feel more connected to the organization’s work and its program participants.
Conclusion
In summary, conveying the significance of an organization’s program(s) to funders is multifaceted, both an art and a science. The art is the personal stories and connection. The science is the validating power of data and evaluation. It is important to craft narratives that not only tell a story but also engage funders as integral characters in the unfolding plot of positive change. Through this synthesis of strategy and storytelling, coupled with rigorous evaluation, organizations can assure funders of their pivotal role, fostering an environment of trust and ongoing support for the mission at hand.
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