Episode 81: How to Build an Effective Mid-Level Donor Team That Can 10x Your Investment
Podcast: The Fundraising Masterminds Podcast
Hosts: Jim Dempsey & Jason Galicinski
Release Date: February 19, 2025
Introduction
In Episode 81 of The Fundraising Masterminds Podcast, hosts Jim Dempsey and Jason Galicinski delve into the critical role of mid-level donors in nonprofit fundraising strategies. Drawing from their extensive experience with over 5,000 nonprofits and $2 billion raised globally, the duo explores effective methods to build and manage a mid-level donor team that can significantly amplify fundraising efforts.
Understanding Mid-Level Donors
Definition and Importance
Jim and Jason begin by defining mid-level donors, emphasizing that these individuals contribute between $1,000 and $4,999 in a single donation. Unlike grassroots donors who give smaller amounts regularly or major donors who contribute larger sums, mid-level donors bridge the gap, providing substantial support that can be scaled over time.
Jim explains, “The standard size is an individual has the capability of writing a check of $1,000 all the way up to $4,999” (04:36). This segment is crucial as it allows nonprofits to transition donors from smaller commitments to more significant contributions, effectively building a sustainable funding base.
Challenges in Building Mid-Level Donor Teams
Jim recounts his initial struggles in establishing a successful mid-level donor team. “This was my fifth try and I probably would have given up if this one didn't work” (01:31), he admits. The primary challenges included:
- Leadership Deficiencies: Early attempts failed due to the absence of a strong team leader who could effectively guide and motivate the team.
- Unrealistic Expectations: Expecting full-time commitment without considering the grueling nature of constant fundraising calls led to burnout and inefficiency.
- Operational Constraints: Full-time models were unsustainable, prompting the need for more flexible, part-time arrangements.
Jim highlights, “They would be the saviors of the world for your organization. Yeah. You're setting them up for failure” (02:04), underscoring the pitfalls of over-reliance on team members without adequate support.
Successful Strategies for Mid-Level Donor Teams
1. Flexible Scheduling and Part-Time Models
Recognizing the limitations of full-time positions, Jim and Jason transitioned to a part-time model, allowing team members to contribute 20 hours a week. This flexibility led to increased motivation and effectiveness, as callers could work during optimal times, often in the evenings or weekends when donors are more receptive.
Jim shares, “They started to call from home, to be remote, they don't have to be in our office” (10:12), illustrating the benefits of remote work arrangements that accommodate diverse schedules and time zones.
2. Strong Leadership with Analytical Skills
A successful team leader must not only excel in communication but also possess the ability to analyze donor data and strategize accordingly. This dual skill set ensures that the team remains focused on both relational and analytical aspects of fundraising.
3. High-Touch Communication
While phone calls are a primary mode of interaction, incorporating personalized communications such as thank-you notes, holiday cards, and detailed reports on fund usage enhances donor relationships. Jim recounts a memorable team activity where they created personalized alpaca-themed thank-you cards, fostering a deeper connection with donors (16:03).
4. Relationship Building Over Time
Mid-level donor engagement is a long-term strategy, often spanning 5 to 10 years. The goal is to gradually increase donor contributions by nurturing relationships through consistent, meaningful interactions rather than immediate financial requests. Jim emphasizes, “Development is always about playing the long game” (06:54).
5. Leveraging CRM Systems
Utilizing Customer Relationship Management (CRM) systems allows teams to track donor interactions, preferences, and personal circumstances. This information is crucial for personalized follow-ups and maintaining genuine connections. For instance, remembering a donor's personal challenges and inquiring about them in subsequent conversations demonstrates sincerity and care.
Notable Success and ROI
Jim and Jason illustrate the effectiveness of their approach with impressive results. Despite paying five callers a cumulative salary of $125,000, the team raised $1.4 million (13:19). This 11.2x return on investment underscores the potential profitability of a well-managed mid-level donor team.
Jim remarks, “I am sold on this right now” (13:41), reflecting his confidence in the mid-level donor strategy after multiple iterations and persistent efforts.
Practical Advice for Smaller Organizations
For smaller nonprofits with limited resources, Jim provides actionable insights:
- Start Small: Initiate with a single part-time caller or even a dedicated volunteer. “You can start incrementally. Bring on one part-time worker who is your team leader” (27:02).
- Utilize Volunteers: Engage stay-at-home parents or passionate supporters who can dedicate time without financial compensation.
- Focus on Top Donors First: Prioritize the top 20% of potential mid-level donors to maximize impact without being overwhelmed.
- Balance Communication: Ensure that not every interaction is a solicitation. Building genuine relationships should be the primary focus, with fundraising requests appropriately spaced throughout the year.
Jim advises, “You don’t have to start big. You can start small with one caller” (27:02), encouraging smaller nonprofits to adopt scalable strategies tailored to their capacities.
Conclusion
Episode 81 offers a comprehensive guide to building an effective mid-level donor team, emphasizing the importance of flexibility, strong leadership, and relationship-focused strategies. By sharing their personal experiences and proven tactics, Jim Dempsey and Jason Galicinski provide valuable insights for nonprofit leaders aiming to enhance their fundraising efforts and achieve sustainable growth.
Final Thoughts from Jim: “Make it yours” (29:23) – a reminder to adapt these strategies to fit the unique needs and capacities of each organization.
Additional Resources:
- Major Donor Mastery Course: For those seeking deeper insights into major donor strategies, the hosts recommend their newly released online course, available at fundraisingmasterminds.net.
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Note: All timestamps refer to the podcast episode's transcript provided.
