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April 1, 2008, 04:24 PM ET
Fund Raisers Should Study Negotiation Strategies
Keys to successfully negotiating with donors to win large gifts can be found in research from other fields, according to Shaun G. Lynch, a fund-raising consultant from St. Lazare, Canada, who spoke Tuesday at the Association of Fundraising Professionals’ annual conference in San Diego.
As an example, Mr. Lynch pointed to research published by Harvard Law School’s Program on Negotiation. It shows that when two parties are negotiating over the price of a product or service, the mention of high figures in the conversation by the seller — even if those figures have little or no relation to the item’s actual value — result in the buyer paying more than he or she would otherwise.
The lesson for fund raisers: After the relationship with a donor is cemented and it is time to ask for a gift, start negotiating over the amount of the contribution by mentioning an “anchor” figure that is higher than the amount that the organization actually plans to request, advised Mr. Lynch.
The anchor figure, he said, can be unrelated to the potential donor’s desired contribution. For example, a fund raiser could mention a bigger gift from another donor or the cost of a large project that would be named for a supporter, before asking the donor to give a specific amount the prospective donor is capable of giving.
Using this practice, said Mr. Lynch, is one way to offset the fact that a donor often has a figure in mind that is significantly lower than the amount he or she is capable of giving.
Although some fund raisers prefer to let the donor take the lead in proposing an amount, the research underscores the importance of using specific figures in solicitations with donors, Mr. Lynch said.
“There is science to back this up,” he said. “Tell your fund raisers and board members: This is why you need to go in with a specific amount.”
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