How Much Money Should You Ask For?

The age old question that fundraisers and nonprofit leadership face when engaging with potential major donors is, "How much money should I ask for?". We think to ourselves, “Well, I know that they could give a lot if they wanted to, but I don’t know what’s the right amount to ask for, and I also don’t want to bother or offend them…”. The key to successful one-on-one fundraising lies in asking for a specific amount — but determining that amount is where the art and science of fundraising come into play.

The Importance of Asking for a Specific Amount

First and foremost, it's crucial to always ask for a specific amount when soliciting donations. This approach not only shows that you have a clear plan for the funds but also makes it easier for the donor to make a decision. A specific ask is more compelling and actionable than a general request for support.

This is also especially effective when thinking of specific naming opportunities as well. If the gift you are requesting is $50,000+ and you are asking the donor to consider a naming opportunity, try to find a naming opportunity that would be meaningful to that donor. This allows you to present the ask as an offer rather than a request.

Aim High, but Be Informed

When in doubt, it's better to ask for more rather than less. This might seem counterintuitive, but experience shows you're unlikely to offend someone by asking for too much. If anything, a higher request can flatter the donor, implying you see them as someone of significant means and as someone capable of substantial impact. However, this doesn't mean you should pick a number out of thin air. The amount you ask for should be informed by careful research and consideration.

Using Peer Information and (Sometimes) Wealth Screeners

The main effective way to determine an appropriate ask is through peer information. This involves a discussion with one of their peers (ideally one of your fundraising volunteers) as far as their capacity and inclination to give to your organization. It can also involve researching if the donor has contributed to similar causes. If a donor's peers are giving in the tens of thousands, it's a strong indication that a similar ask might be appropriate for them as well. Same thing with if they are giving in the six figures range, and so on.

Wealth screeners can also provide insights into a donor's capacity to give. However, it's important to note that wealth screeners are accurate about 60% of the time. These tools evaluate various data points, including property ownership and historical donations to political campaigns, to estimate an individual's potential giving level. A significant portion of their analysis is based on visible assets and public donations, which don't always paint a complete picture of someone's financial capacity or philanthropic inclination. Wealth screeners can be a useful tool in your fundraiser tool belt when researching someone’s capacity, but they are not the be all end all when it comes to determining the amount you should ask for.

The Imperfect Science of Determining the Right Amount

The truth is, we can never know the perfect amount to ask for. Peer information, wealth indicators, and philanthropic histories can guide us, but they don't account for the myriad personal factors influencing a donor's willingness and ability to give. Perhaps they're feeling particularly generous this season, or maybe they have undisclosed financial commitments. The complexity of personal finances means there's always an element of uncertainty no matter how good of research you have done.

Gathering Information and Aiming High

Given this uncertainty, the best approach is to gather as much information as possible about the potential donor. This includes their giving history, information from the community, and connection to your cause. Engage in conversations to gauge their interest and capacity subtly. Then, with the information at hand, aim high in your ask. If you know for almost certain that someone’s capacity to give is $50,000, go ahead and ask them for $100,000. If you know that they could give $1000, go ahead and ask for $10,000. You lose nothing by taking a shot at it. Even if the donor can give nowhere near that much, you will still probably end up with their personal giving ceiling.

Remember, the goal is to maximize support for your nonprofit while respecting the donor and their situation. A high ask can always be negotiated down, but a low ask leaves money on the table that could have advanced your cause.

Determining how much money to ask for from a donor is more art than science. It requires a blend of research, intuition, and courage. By gathering as much relevant information as possible and aiming high with your request, you position your nonprofit to achieve greater fundraising success. While the perfect ask may remain elusive, a well-informed, ambitious approach ensures that you're making the most of every fundraising opportunity. Remember, in the world of nonprofit fundraising, boldness, backed by research, is a virtue that often leads to remarkable outcomes.

Need help strategizing on how much money you should ask your potential donors for? We can help with that! Schedule a call with us and we would be happy to chat with you about how we help can raise more money for your nonprofit.