Cold-calling foundations: how to build a relationship with foundation prospects

Cold-calling foundations: how to build a relationship with foundation prospects

By Jonathan Weber-Mendez, Director of Mission Impact

Approaching a prospective donor with whom you have never previously made contact can be intimidating, but “cold calling” is an effective way to obtain information about the donor and begin to build a relationship. Before you pick up the phone and start calling all the prospective donors on your list, you should know a few things. 

The first and most important thing to remember when making a cold call is that it is not the appropriate time to ask for a donation. This fact alone should help ease some of the fear around cold calling. A cold call is just an opportunity to get to know the person on the other side of the phone. It is not a conversation where you are waiting for the right moment to pounce and “make the ask,” so just relax, be yourself, and make a new connection.

The goals of a cold call are two-fold. The first goal is to learn about the prospective donor and their purpose for giving. The second goal is to connect with the donor and set up the next planned interaction with them.

To accomplish the first goal, the task is simple: be curious. The instinct of many fundraisers is to call a prospective donor and immediately start telling them about your organization and its needs. However, this instinct runs contrary to the purpose of a cold call: to learn about the prospective donor and their funding goals. Instead of telling them about your organization, ask questions about theirs. Like your organization, foundations have a mission and purpose they are trying to accomplish. During the conversation, discover as much as possible about them and their grant-making goals. Asking questions will help inform you of the appropriate alignment to focus on as you build up to “making the ask” in subsequent interactions.

The second goal requires some preparation before making the cold call. The objective is to set up the next interaction with the prospective donor. To accomplish this, you must first prepare a menu of potential interactions so that you can use the conversation to determine the most effective strategy. For some nonprofit organizations, a site visit, volunteer opportunity, or special event may effectively showcase the mission. For other nonprofit organizations, simply setting up a subsequent in-person meeting, lunch, or coffee may effectively showcase the mission. For other nonprofit organizations, a newsletter, case for support, or grant proposal is an effective way to cultivate a prospective donor. The important thing is that you use the conversation to determine the most appropriate and practical next step, making every effort to engage the donor prospect in further cultivation as you build up to “making the ask” in subsequent interactions.

Understanding the goal of a cold call conversation with a prospective donor can help ease some of the tension and make cold calling a bit easier, but the act of picking up the phone and calling a stranger can still be panic-inducing. So, before you pick up that phone, let's explore a few tips to deal with some of the anxiety you may feel about making a cold call.

Tip #1 - Research

Before making the call, research the person you will be talking with. Are you talking to a foundation namesake, trustee, or staff member? Because the conversation can be very different depending on the person's position within the organization. Secondly, knowing who you are talking to will help inform the questions you ask and help you strategize the most effective interaction to set up during the call. Lastly, knowing who you are talking to will help ease some of the anxiety and make the conversation less like a cold call.

Tip #2 - Script/Outline Your Opening Statement

While it is best practice to let the conversation flow naturally and not be over-scripted, knowing what you will say when the donor prospect picks up the phone is often helpful. Your opening statement should clearly and concisely state who you are and why you are calling and include a request for their time. For example:

“Hello, my name is Jonathan Weber-Mendez. I am calling on behalf of Helping Hands. I came across your organization while researching foundations that serve people experiencing homelessness in our community. Do you have a few minutes to discuss your foundation and its purpose?”

This simple script acknowledges the foundation’s efforts in the community, sets the precedent that the call will be about the donor, not the nonprofit, and allows the prospective donor to consent or not to the call. These things put the prospective donor at ease about the interaction while taking the pressure off the fundraiser and avoiding the “salesperson” perception.

Tip #3 - Stack Calls 

When making cold calls, the prospective donor may not pick up or may ask to schedule a different time for the conversation. This can be disappointing for the fundraiser, especially if you spent so much time preparing for a conversation. Having a list of 3 - 5 prospect calls to make will help ensure that you didn’t get worked up for nothing and that you have the opportunity to have at least one conversation. It will also allow you to get into a rhythm and get comfortable with cold calling.

Tip #4 - Relax

Once you have done all the prep work, taking a brief moment to relax before you pick up the phone is helpful. Perhaps this means silently meditating at your desk, watching funny cat videos online, or reading a news article. Whatever helps you relax will help you approach the call more naturally and not in a heightened state of anxiety. 

Tip #5 - Pick up that phone

You are now ready. Nothing is left but to “rip the band-aid off” and pick up that phone. Don’t worry, donors are accustomed to these conversations. Remember your mission and why you got into this line of work. You are doing great work for your community and the people you serve and should feel no shame in calling and building relationships on their behalf.'

If you need any further assistance or training for fundraising for your organization, please check out the Write On Fundraising Shop for courses on grant writing, fundraising, and making the ask, or email education@writeonfundraising.com to set up some time to discuss our custom training and coaching opportunities for your organization, staff, and volunteers.