How does your nonprofit fundraise?
While there are endless ways to raise money for your organization, one of the most tried and true is writing fundraising letters. However, even though donation request letters have been in use for just about as long as charities have been asking for funds, it doesn’t mean that writing an effective letter is an easy task.
If you are going to take the time and energy to send letters requesting donations from your current and potential supporters, you want to make sure that your letter is well-written and carefully tailored specifically to help you reach your objective. You need to know your audience, making your letters personal and appealing, and how to address a need in a way that inspires donors to support your mission.
Before you start sending out letters, it is important to understand the strategy behind them and the different types of letters your organization can use to best meet your fundraising needs.
What Is a Fundraising Letter & Why Is It Important?
A donation request letter is any type of physical or digital letter sent by an individual or organization asking for some form of donation.
These can be either typed or handwritten and sent to friends, family members, businesses, and corporations as a way of raising money, asking for in-kind donations, or requesting volunteer participation.
Fundraising letters are one of the more formal ways to solicit support from your current and potential donors and are often used in combination with a campaign, event, or other fundraising efforts. They provide the perfect opportunity for your organization to clearly state its needs and give supporters a tangible way to help meet those needs. These letters also give your nonprofit a chance to build stronger ties with donors and make their experience working with you a more personal one.
When Should You Send a Letter Asking for Donations?
While a donation request letter can be sent at any time throughout the year, there are certain times to send out letters that are more effective and bring in a greater response than others.
One of the most common and effective times to send them are when your organization is launching a new campaign or about to hold a special event as a way of increasing awareness, support, and participation. Fundraising letters can also have a powerful impact when sent during times of increased giving like the holidays.
Send Letters Before a Launch
Letters asking for donations are often used in conjunction with other types of fundraising like crowdfunding campaigns and fundraising events. Sending out letters as a way to boost other fundraising efforts is a useful tactic that helps to spread the word about your event or campaign and inform your donors about what you are doing, why you are doing it, and how they can take an active role.
Boost End-of-the-Year Giving
The end of the year is a popular time for charitable giving, meaning your fundraising letters are likely to bring in a much more significant return if sent during the holiday season.
Remember that other organizations are likely to send out messages during this same time period, so you want to make your nonprofit stand out. Give your letter a personal touch and show your donors the tangible impact their support will make.
5 Quick Tips for Writing Donation Letters
Writing a donation letter is not hard, but writing an effective letter that will maximize your organization’s fundraising efforts and better assist you in achieving your financial goals takes time and careful attention to detail.
These 5 tips will help ensure your next donation request letter leaves your supporters feeling excited and inspired to take part in the work your nonprofit is doing.
1. Personalize, Personalize, Personalize
One of the most powerful ways to connect with your donors and inspire them to give is by personalizing your fundraising letters. People want to feel needed and appreciated and are more likely to give if they think that their contribution will truly make a noticeable impact.
Try using the donor’s name at the beginning and throughout the letter so that they feel as if they are being individually addressed and asked to partner with your nonprofit. If the recipient is already involved or has given in the past, make note of those contributions to show that they did not go unnoticed.
2. Segment As Much Or As Little As Necessary to Reach Audiences
Aside from personalizing your letters specifically, it is also beneficial to segment your audience. There are often times when a fundraising letter will be more effective if it is specifically geared toward a certain segment of your support base, and there are certain groups within your audience that you want to be in contact with more frequently than others.
For example, your annual update and appeal letter should only be sent to current donors, but an event invitation might go to a specified group of both potential and current supporters that you think would be most interested in attending. By knowing your audience, you can make a more personal connection and prevent people from feeling as though they are being spammed with irrelevant or too frequent communication.
3. Be Explicit and Specific
Before you start to worry, we are not advising you to use profanity when asking for donations.
Instead we recommend that you explicitly state both why you need the funds you are requesting and why the recipient of your letter should donate those funds (or auction items, volunteer hours, etc.).
Most people work hard for their money and want to know where it is going before they willingly give it away. A well-crafted donation request letter incorporates the necessary facts and figures that donors want to know without bogging them down with unnecessary information.
The key is to keep the tone direct and friendly and be unafraid to ask for exactly what you need.
4. Make Donating So Easy...A Caveman Can Do It
If you take the time to craft a moving letter that inspires hundreds of donors to give to your cause, you want them to actually be able to donate, don’t you?
It may seem obvious, but making sure your supporters have an easy outlet for giving is a task that is often overlooked by nonprofits.
Always include a link to your donation page in your letter and be sure to embed several links when sending out emails, as well as carefully explaining the donation process step by step. If there are multiple ways in which your organization accepts donations, be sure to list them all so that donors can choose the method that is easiest for them.
5. Follow Up, Follow Up, Follow Up
Following up with donors can take many different forms, depending on a donor’s preliminary response. For those who respond to your initial correspondence, it is important to remember to thank them for their contributions and let them know the impact made by their generosity.
You also want to continue to update supporters that did not donate in response to your earlier letters. Just because they didn’t react immediately does not mean your organization is being ignored.
People lead busy lives and often set mail aside with the intention of returning to it, only to let it fall by the wayside in the midst of everything else they have going on. Others may want to give but not be financially able to when they receive your letter. Be persistent and continue to reach out, and you might be surprised by how many people just needed to be given another opportunity to respond.
Rip Off Our 13 Donation Letter Templates
Writing donation letters can be challenging, especially if it is not something your organization has done in the past. There are several different types of fundraising letters, each with their own distinct purpose that is tailored to meet a variety of needs for each type of nonprofit organization.
This list includes simple explanations of the 13 most commonly used donation request letters so that you can decide what format is best suited for your organization, as well as template samples of each type to provide guidance as you learn to craft your own unique donation letters.
1. General Donation Letter
A general donation letter is a the most basic and widely used method of fundraising. This type of message can be sent to family, friends, and members of the community, asking for general contributions to your organization. An effective letter should outline why you are raising money and its intended use, as well as answer any questions potential donors may have, such as how to give or how much you are seeking to raise.
Always remember to be personal when writing a general donation letter. If you are sending them to people in the community that do not know your organization, take the time to introduce yourself or your nonprofit. Include each donor’s name at the beginning and a handwritten signature at the end so that the recipients feel like they are connecting with an individual and not just being solicited by an organization.
General donation request letters can be sent at any time but tend to work best in conjunction with crowdfunding campaigns.
2. Annual Appeal Letter
An annual appeal letter is similar to a general fund request letter in that it’s mainly used to ask for funds for the standard operations of your nonprofit and not for a specific campaign or event, but differs in that it’s only sent out once a year and is specifically geared toward your current donors.
Because this type of letter is only being sent to people who have donated to your nonprofit in the past, it’s unnecessary to go into great detail about who you are as an organization. It is better to focus on what you have accomplished in the past year and how the recipient’s donations made that possible.
An annual appeal letter should not be the only time of year your donors hear from you, or it may leave them feeling neglected and unappreciated. Your yearly report and donation request letter is likely to reap much greater returns if it is just one of multiple messages your supporters receive from your nonprofit throughout the year so that they feel like an active part of your mission.
While many organizations choose the end of the year, there is not a specific time at which this letter needs to be sent. Once you have selected a date, you should aim to be consistent and send it out at the same time each year.
3. Program-Specific Donation Letter
As the name would imply, a program-specific donation letter is used to both inform and involve donors in one of your organization’s programs by asking for donations in the form of money, time, and/or resources, depending on your specific needs. For example, if a school was about to host their annual book drive, the PTO might send out a letter asking for book donations and requesting volunteers to work shifts during the event.
Be sure to include an adequate explanation of the program so that donors know exactly what they are supporting and how they can best contribute. It is also best to provide contact information for the person in charge of the program and additional resources in case they would like to learn more about what your nonprofit is doing.
4. Campaign-Specific Fundraising Letter
Similar to a program-specific letter, a campaign-specific donation request letter is designed to inform your current and potential donors about a new or ongoing campaign in which you would like them to take part. A church, for example, might send out a letter about a new building campaign for which money is being raised to ask congregants to contribute, or a charity like Habitat for Humanity could update local donors about a new project that needs additional support.
The most important things to include in these letters are the details about the campaign, what the money is going to be used for, how much you need to raise and by when it needs to be raised, and clear instructions on how to donate. If the campaign is one that has been ongoing, it is also a good idea to share the progress your organization has already made toward reaching its goal.
5. In-Kind Donation Letter
When people think of making donations, they often think only of monetary giving. However, there are times when your nonprofit needs more than just financial support. An in-kind donation is the provision of a product or service to an organization, which could be anything from baking cookies for a bake sale to donating auction items to help a charity raise money at a fundraising event.
When asking for in-kind donations, always be specific about what type of donations you are requesting and why they are important to your organization and its mission. You will also want to include an address at which the items can be dropped off and contact information in case donors want more information about what can be donated.
6. Invitation to Fundraising Event
Fundraising events are a powerful way to raise money and build community within your network of supporters, but in order for them to be effective, first people have to show up.
An event invitation is a little different than most request letters because it’s not used to ask for an actual donation. Instead, it invites your supporters to take part in your special event and provides all the details they will need for attendance (when and where it will take place, how to purchase tickets if necessary, etc.).
Event invitations should be sent in the weeks leading up to the event, though the exact amount of advance notice necessary will depend from fundraiser to fundraiser. You can also ask for guests to RSVP by a certain date in order to give you a better idea of how many will be attending.
7. Sample Sponsorship Letter
Sponsorship letters are most often used by individuals who are participating in a fundraising event, such as a walkathon, 5K run, or other type of charity race to ask for others to support their participation by donating to the charity hosting the event.
Many individuals are intimidated by fundraising because they think they don’t know how to write a sponsorship letter, but it is really very straightforward. Start by giving people some information about the event in which you are participating and a little background on the organization for which you are raising money. To make it more personal, you can even include why you personally decided to take part in supporting that specific charity.
And don’t forget, you’ll need to give the recipients of your letter all the information they need about how to make a donation and the different options they have when donating (most people will either give a flat sum or pledge to donate a certain amount per lap walked, mile run, etc.).
8. Sponsorship Appreciation
If you want to retain your donors and ensure their continued involvement and support, sponsorship appreciation letters are just as important as those requesting donations. People want to know that they’re making a difference when they give, and it is your job to communicate the significance of their contribution.
This type of letter should be used after any donation, whether it is monetary, in-kind, or a donation of time and energy, and needs to be sent out promptly after the donation is made. If you can add some kind of personal touch or even include a small thank you gift, that will make the letter seem that much more sincere and speak volumes to your supporters.
Saying thank you is a common courtesy that cannot be overlooked when building good relationships with your donors if you want them to continue being your donors long term.
9. Corporate Fundraising Letter
Corporate donation request letters are used to ask businesses and other corporations for contributions to your organization.
This type of correspondence will be more formal than many of the other types of fundraising letters and needs to be addressed to the right person or department at each corporation in order to increase your chances of successfully securing donations.
It is important to do your research before addressing a business to make sure that you are not only sending your letter to the right person but that you are meeting any other requirements the company might have in place for requesting donations as well. In your letter, be sure to give the business a clear idea of how they will benefit from contributing and to ask for a specific amount rather than expressing a general need.
10. Online Donation Request
Now more than ever people are forgoing traditional methods of giving, instead opting to donate online. And it makes sense as an easy and instantaneous way to give, which can also benefit your nonprofit.
Online donation requests will generally be sent in the form of an email rather than traditional mail, and the number one most important thing to remember is to include a link (or several) to your donation page in the message. If you are starting an online campaign, fundraising emails are an absolute must in order to inform current and potential donors about your fundraiser.
Emails can take on various formats and may be more or less formal, depending on your organization and the audience you are trying to reach. Here is more information on how to write a fundraising email if you are looking to start a new campaign for your nonprofit.
11. Sample Letter of Request for School Donations
If your nonprofit is an education-based organization in need of funding, then a school donation request letter is the ideal template for you. This type of letter can be sent any time donations are needed, whether it is for general operations, to request in-kind donations, or to inform donors of an upcoming event.
It is important to include information about your school when sending your letters, but the main focus of the letter should be on your donors. Make sure they know that your educational achievements are only made possible by their support. When you can, include a personal testimony from a student to show the tangible impact of their contributions and remind them that they are giving to children and not just a educational institution.
12. Church Donation Letter
Churches and other faith-based organizations are unique among nonprofits and require their own form of fundraising letter, which is used for any kind of donation request outside of a parishoner’s standard tithing. These can be sent at any time but are usually used in conjunction with a specific event, campaign, or fundraiser.
This is another letter in which you want to be personal and keep a casual, friendly tone, since it will be sent to members of your congregation. Remind them about the campaign or event and include the details and contact information of the person or people organizing it. You can also remind congregants that your church is always accepting donations, so even if they cannot attend or contribute to a specific event, they are still more than welcome to give.
13. Volunteer Letter Template
While fundraising is an important part of maintaining the work of any nonprofit, you also need manpower to be able to accomplish your goals and further your cause. If your organization is in need of more volunteers, whether it is to carry out general operations or for a certain event, you can use this template to craft a letter asking your supporters to donate their time.
The primary focus of the letter should be on the volunteer position needing to be filled and how the work will benefit the cause for which your organization works, though you need to include the event details, such as time and location, as well. If you know the person has volunteered in the past, be sure to recognize this and thank them (again) for previous involvement so that they know the time they give will not go unappreciated.
Gain an Ally in Crafting Your Donation Letters
If you are looking to improve your nonprofit’s donation request letters or seeking additional marketing guidance to boost your organization’s fundraising efforts, the Ally360 marketing team of experts can help. We are a marketing firm designed to help nonprofits succeed through expertise, marketing, and education, and it is our goal to make sure your organization has all the knowledge, resources, and support it needs to grow donations and memberships and further your cause through increased and enhanced exposure.