How to Communicate with Fundraising Investors (vs. Members)

With each passing NCDS fundraising campaign over the years, one key lesson consistently rises to the forefront: the success of your campaign hinges on how effectively you communicate.

Yes, “communication” is both cliché and a buzzword. Leadership will say we need it, and everyone happily nods their heads in agreement. But to be an excellent communicator — in a way that supports your goals and mission — requires experience, thoughtfulness, and skill.  

The most prominent trait we see in great communicators is an intimate knowledge of their audience: what do they need to know, and how do they prefer to receive that information? We’re flooded with noise and words today, and this key question will help you cut through the din.

Your Two Funding Audiences

Depending on your chosen fundraising strategy, an orgaization may have two very unique fundraising audiences. Each have their own level of investment, both financially and psychologically, and expect different levels of communication:

1. Members of your Chamber of Commerce, Economic Development Organization (EDO), or other non-profit
2. Investors inmulti-year strategic initiatives

How do they differ? Broadly speaking, members have a more transactional relationship with your organization and expect/need a different set of communications. In contrast, investors in a Multi-Year Strategic Initiative (MYSI), have a completely different level of investment and unique set of results they seek.

Let's explore these differences and discover together how these differences affect the way you communicate.

Member-Focused Fundraising Communication

Members, such as those associated with a Chamber of Commerce or an EDO, have a vested interest in the community and organization but in most cases have not committed to long-term investments. Their channels of communication carry every bit as much importance as those for investors, they just speak to a different set of needs.

What do your members want to know?

• Event Announcements: Inform your entire membership about upcoming events related to your organization, community, or industry. This allows members to participate and engage in activities that contribute to the growth and success of the community.‍
• General News: Keep your members updated on general news and developments within the community and your organization. This can include updates on local initiatives, collaborations, and noteworthy achievements.

• Awards: Acknowledge and celebrate member accomplishments and their contributions to the community. Recognizing outstanding individuals or businesses fosters a sense of belonging and encourages continued participation.

• Activities: Share information about activities, programs, and initiatives in which members can participate. This may include workshops, networking events, volunteer opportunities, or educational sessions.

• Sponsorship Opportunities: Inform members about sponsorship opportunities and highlight the benefits, such as increased visibility, networking opportunities, and community involvement.

Investor-Focused Fundraising Communications

Investors, in contrast to members, have made substantial financial commitments to your long-term multi-year strategic initiative (MYSI). They expect tangible results and progress reports before, during, and after your campaign — aligned with your expressed goals. What’s in it for them?

For example, a Gold’s Gym member may be anxiously awaiting the grand opening of a location near them, but an investor needs to know how permitting went, if the concrete is poured, if signage will arrive in time, and if marketing communications have been pumping the opening.

To effectively communicate with investors, go beyond regular member communications and consider the following strategies:

Before Your Campaign

Incredible amounts of effort, collaboration, and organization take place before every MYSI to ensure its success. You want to establish a vision for the future that galvanizes support from the key stakeholders in your community who have the most at stake. It’s primarily their fundraising support you’re seeking to attract.

The pre-campaign phase includes communications such as:

• Strategic Agenda: clearly define the challenges you’re trying to solve and the opportunities you’re chasing.
• Plan Building: any long-term fundraising strategy should include not only your objective, but how you will achieve it. Invite likely investors into this process and consider incorporating their perspective.
• Present Your Plan: formally present your outline for how you will track and communicate your progress, setting the stage for how investors will understand the metrics for success.

During The Plan’s Implementation

Investor communications while your MYSI is being implemented can feel like a juggling act, but it doesn’t have to. We take special care to develop project milestones around MYSI goals, so we regularly have purpose-driven reasons to communicate with investors.

These communications include:

• Plan Execution: newsletters, blog posts, and social media posts that keep investors informed about ongoing activities, successes, and potential challenges pertaining to pre-determined milestones.
• Breaking News: any developments worthy of celebration or exclusive opportunities that are relevant to investors and demonstrate progress.
• Key Metrics: an annual scorecard or dashboard highlighting the key metrics established at the beginning of the plan.

Nearing The Plan’s Conclusion

As your strategic initiative approaches its target completion date, anticipation has been building for years. Investors will be anxious to learn exactly what output they received from their input. It’s an exciting time of celebration for a well-executed MYSI.

The last phase of communications includes:

• Final Results Dashboard: compare achieved outcomes with your plan’s established goals. With tangible return on investment, you can be sure investors will be eager to participate in future fundraising campaigns.
• Highlight  Outcomes: highlight and celebrate where the rubber meets the road on their investment, focusing on job creation, capital investment, legislative wins, project wins, community wins, and economic development wins — such as attracting new companies or organizations to the community.
• Direct and Indirect Economic Impacts: illustrate positive return on investment for the local economy as well as specific industry sectors.
• Broad-Sweeping Economic Benefits: emphasize increased personal income, consumer expenditures, local tax revenues, and business output.

Start Your Strategic Fundraising with a Proven Process

Everyone wants to know what’s in it for them. Members and investors each sign up for a unique set of benefits and outcomes specific to their investment. We encourage all of our clients to make sure they communicate those benefits in the appropriate way so they can generate engagement and energy around their initiatives. It’s overwhelming, but you don’t need to handle it alone.

NCDS has been helping Chambers of Commerce and Economic Development Organizations like yours increase their fundraising efforts with a proven process that yields consistent, predictable results. We can help you implement an incremental fundraising strategy that yields big investment and transformational change in your community.

Get started today with a free consultation or download our whitepaper.

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