In his post DIY Fundraising Tom laid out a significant challenge faced by many nonprofits that engage in peer-to-peer fundraising and other friend-inspired approaches: realizing the full potential of Third-party Donors.

For those organizations new to dealing with this type of DIY fundraising, there are two principal sources of donor value: 1) the ‘team leaders’ or friends who organize their personal world to help you; and 2) their friends who help them.

Thanking, recognizing and staying in touch with the team leaders should be a no-brainer. And hopefully you’re investing substantially in maintaining and renewing their interest in sponsoring/leading a fundraising effort for you year after year. After all, a committed team leader has the multi-year potential equivalent of a mid-value or major donor.

BUT…what about their friends who respond to these leaders’ calls for help on behalf of your cause?

You shouldn’t assume they’re like the new donors you attract directly through your mail, online or other media campaigns. So, don’t go automatically putting them in your regular appeals track because you’ll simply annoy and drive them away.

Here’s the better alternative according to a terrific post on Classy, the online and mobile fundraising and event platform company: “Instead, nurture this new relationship by building initial rapport and trust. Develop a communication strategy that will gradually deepen their relationship with your organization and cause, and eventually turn these first-time donors into regular supporters!”

Classy has also prepared a terrific — and free — guide titled Courting Third Party Donors. It’s a veritable fundraising cookbook for DIY fundraisers. Download it free right here.

In addition, Claire Axelrad, loyal Agitator, fundraising vet and prolific blogger has a great post regarding Third Party Donors. Claire has not only distilled the 40+ pages from the Classy Guide, she’s added her own special touches.

Check out Claire’s piece on her blog Clarification. Here are some excerpts that cut to the chase:

“First, follow up with a personal thank-you email after the campaign is over. It should:

1. Thank the third-party donor for their gift.
2. Refer to the fundraiser the person gave to (to highlight the trusted fundraiser’s relationship with your organization).
3. Offer resources to help them learn more about your cause and organization (e.g. blog posts, videos from the field, an impact report, news on the cause sector, etc.).
4. Thank the donor again.

“Shower the people you (might) love with love

Third party donors are less connected to your nonprofit than donors who find you on their own, so you must go the extra mile if you hope to ever renew their giving. It’s well worth your effort!

In a recent Burk Donor Survey, veteran fundraising researcher Penelope Burk’s firm surveyed 15,900 donors who had sponsored someone in an athletic fundraising event sometime within the previous year. While their primary motivation for sponsoring was to support a friend, relative or colleague who was participating in the event, 50% said the organization behind the event also played a role in their decision to sponsor. When that 50% were asked whether they would make a direct, philanthropic gift to that nonprofit if asked, 17% said yes; another 14% said they might. That is much better than today’s typical acquisition rates, so it is certainly worth testing the potential for converting third party donors to ongoing, loyal ones.

Unless you show people you like them, value them and want to get to know them better, it’s easy for them to look the other way.

Your job is to make it easier for folks to look your way. And meaningful. And fun.”

And Claire continues with these ACTION TIPS:

“Remember, these donors came to you through someone else. Remind them of that primary relationship when you send your thank you, invitation to another event, and even your next appeal.

“Rather than a “Thank you for your support of [name of your organization]” try “Thank you for supporting [friend’s name] in the run for a cure on behalf of [name of your organization].” Third party donors may not even remember they made a gift to you, but they will remember they supported their friend.

“When you ask them for another gift, once again point out how and where you first met. They’ll be impressed, and appreciative, that you pointed out how you are connected to them. Better yet, ask the friend who they sponsored to write a personal note on the appeal letter.”

Thanks Claire. Thanks Classy. An Agitator Raise for you both.

And for all you Agitators engaged in peer-to-peer, friend-to-friend and other forms of DIY fundraising, please share your experiences. Thank you in advance.

Roger