Financial investment is usually identified with big business, but can be a great way to increase a charity's funds. Here is how to explain the importance of an investment strategy to skeptical supporters.
1. Explain why you want to invest
Is this something that works for your charity and, ultimately, can you explain the need to your donors?
2. Explain where you will invest
Maybe you can justify investing for long-term gain. But you also need to exercise ethical responsibility when choosing your investments.
3. Communicate the need
Be overt about why you think this is a good idea. Trust your donor to want the best for your charity as much as you do.
4. Communicate the objective
If you are investing for a legitimate, well thought out goal, there is no reason your donor should object. But you have to be clear and transparent.
5. Make it a USP
A transparent strategy in this area could help you to stand out from the crowd. Donors are not as clued up on this as they should be and the reason is they haven’t heard of anyone doing it. Tell them.
What do donors really think about charities making investments? Read 'Are charities justified in investing?' to find out.
This article first appeared in The Fundraiser magazine, Issue 7, July 2011