How Unrealistic, Untethered Asks Lose Donors (and Dollar Handles Bring Them In)
In our last post, we introduced a concept Kara and I talk about often: dollar handles. Donors need to be able to conceptualize both the need and their impact. When we report on impact, it has to be tangible and personal.
The same principle applies when we talk about raising money.
This shows up clearly in fundraising goals. “Help us raise $2 million.”
It sounds impressive, but it immediately raises questions: Is this the full budget, or a portion of it? Is this new funding or gap funding? And most importantly for donors, where does their $500, $1,000, or $10,000 fit into that story?
If donors can’t answer that last question, connection breaks down.
Greatest-needs funding doesn’t have to mean vague or unspecific. Instead of simply saying, “We’re raising $2 million,” offer clarity:
“We’re raising $2 million to complete our $10 million microloan program. A gift of $5,000 fills a critical funding gap by supporting one woman, as she starts her business.”
Now donors can see that the work is already underway. They understand their gift is part of something bigger. And most importantly, they know exactly how their support makes a difference and how their investments solve a problem they care deeply about.
There’s a long-standing fundraising principle that says people don’t give to goals they can’t see themselves in. They will, however, step into a gap they can understand. When we present massive totals without context, we leave donors standing outside the story, watching rather than participating.
This is especially important when we’re putting together greatest-needs messaging throughout the year. Too often, organizations ask for $20,000 or $30,000 without explaining what that number actually represents. Donors aren’t thinking in line items or budget categories; they’re thinking in outcomes. Without context, large asks feel distant and impersonal.
Dollar handles help us explain that greatest needs often mean gap funding. They show donors how their support fills the space between what’s already in place and what’s required to fully meet a real, urgent need. They also allow smaller gifts to matter in visible, meaningful ways.
One final thought. Kara and I believe in asking for big gifts and stretching both the donors and ourselves. We see organizations stumble when they try to move a donor from $5,000 annually to $25,000 based solely on capacity rating. (I wrote a blog last month about why these ratings can be misleading).
A donor may have the capacity to give more. But if we don’t understand their passion, and if we can’t clearly explain how increased giving will create greater impact, they’re unlikely to say yes.
When we ask donors to stretch, it helps enormously to show them what that stretch makes possible. Using the microloan example again, we might say:
“Thank you for your past gifts. This year, would you consider giving $25,000 – supporting five women as they start their businesses.”
Whether you’re reporting on impact or sharing goals and funding needs, creating a specific picture through a dollar handle helps donors see their role. And when donors can see their role, they’re far more likely to step in – and step up.