Steps in developing donor relationships  

The 5 main steps in developing donor relationships: 

1. Identification 
2. Cultivation 
3. Solicitation – making the ask 
4. Recognition 
5. Stewardship 

Donor relationships don’t always follow this order. They can start and go through different steps. But the aim is the same – to build trust and connection to help get donor support. 

Below is information about each step and the approximate amount of time you need to invest.  

Step 1. Identification 

The first step is to identify potential donors. It takes up about 20% of the effort in developing donor relationships. 

Start with people already connected to you. Focus on: 

• audiences 
• subscribers 
• social media followers 
• volunteers 
• local businesses 
• suppliers 
• professional networks  
• board member contacts. 

Understand potential donors  

Research potential supporters to decide where to focus your efforts. Consider the following factors: 

• Interest: how interested are they in your work, the artform, the mission or the community? Do they already give to similar causes or projects? 
• Connection: do they have a personal connection to your work or someone involved in it? 
• Capacity: do you know whether they’re able to provide money or in-kind support, and at what level? 

These factors can help you decide who to prioritise and what you next step might be. You may need to build their interest, strengthen their connection or learn more about their capacity. 

Step 2. Cultivation 

This step is engaging the potential donor. It's one of the main steps in developing donor relationships, taking up about 35% of effort.  

Cultivation is to build donor: 

• interest 
• understanding 
• trust. 

When people feel engaged, they’re more likely to donate. 

Invite them to an experience 

Offering personalised experiences is a great way to start. For example, invite potential donors to: 

• a rehearsal or performance 
• a small gathering at your studio 
• an exhibition opening.  

It’s an opportunity to connect and develop their interest in you, your work and your goals. 

As people learn more, help them feel part of your work. Invite conversation, share progress and connect around shared values. This builds understanding and trust. 

Step 3. Solicitation – making the ask 

This step is asking for a donation. It takes up about 5% of the effort in developing donor relationships. 

Asking may be a small part of the process, but it needs preparation. Before you ask, get clear about: 

• what you’re asking for 
• what you want to achieve  
• how your goals align with the donor’s interests. 

Preparing to make the ask 

Plan to make the invitation: 

• in the right way: such as online, by email, over the phone or in person  
• at the right time: when you have built interest, understanding and trust with the potential supporter 
• for the right reason: be clear about what you want support for, why it matters and how it aligns with their motivations and interest 
• at the right amount: based on the potential supporter’s capacity 
• by the right person: this could be you or, if you work in an organisation, someone in a specific role like a board member, artistic or executive leader.  

The bigger the donation you're asking for, the more thought and care you should take in your approach. 

Ways to make the ask 

You can make the ask in different ways. Generally, the more personal it is, the more effective it can be. Personal asks give you more opportunity to build connection, tailor the request and respond to the potential supporter. 

Methods that are more personal  

• Person to person – a one-on-one conversation 
• Telephone – a direct phone conversation  
• Person to group – a presentation, event or gathering 
• Direct mail or email – a letter or personal message sent directly to potential supporters 

Methods that are less personal or impersonal 

• Websites – a donation page or online appeal  
• Social media – posts, campaigns or advertising  
• Mass media – advertising, radio, television or other public appeals 

Step 4. Recognition 

This step is thanking and acknowledging the donor. It takes up about 5% of the effort in developing donor relationships. 

How to thank the donor 

Once you receive the donation, a personal, warm, sincere and timely thank you is critical. Decide how you will thank donors and who is responsible for doing it.  

Personal messages are best, like a phone call, a handwritten note or a visit. The bigger the donation, the more personal your response should be.  

In organisations, board members or senior leaders may be responsible for thanking major donors.  

How to acknowledge the donor  

It’s important to decide how gifts will be acknowledged. This might include publishing donor names publicly, such as: 

• in annual reports  
• on your website 
• in performance programs  
• in newsletters  
• on recognition boards. 

Step 5. Stewardship 

The final step is managing the donor relationship. It's one of the main steps in developing donor relationships, and takes up about 35% of the effort.  

Strong stewardship can turn donors into long-term supporters. It’s the ongoing way you communicate and engage with them to: 

• maintain and deepen your relationship with donors 
• encourage continued support.  

Keep donors informed, appreciated and connected. This might involve celebrating milestones together, inviting them to events and acknowledging the impact of their support.