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"Challenge" Your Campaign!

Many campaigns can utilize “challenge gifts” in order to meet or surpass their goals. A “challenge gift” can be in many forms (see below) but it involves creatively using a lead gift pledge, with stipulations, from an individual, couple, foundation or corporation. In order to receive the gift, the stipulations may require others to give at a certain level or donate in a specific time frame, in order for the nonprofit to receive the initial gift.

The following are some creative challenges:

     •   Matching Gift Challenge
         Contact a lead gift donor or company and ask them, for example, to consider          a stretch gift of $1 million if you can find an additional four donors who will          each give at the $250,000 level, matching the original $1 million gift. This is a          creative and motivational way to double the funds raised at the outset of a          campaign.

     •   Plateau Challenge
         This allows a lead gift donor an opportunity to challenge the entire community          to become involved in the nonprofits’ campaign. For example, the donor may          give an additional $500,000 for every $500,000 raised by the nonprofit. The          lead gift donor will match every $500,000 plateau up to $1.5 million, again,          doubling or tripling the funds raised.

     •   Reverse Challenge
         To help push a nonprofit over its final campaign goal, a reverse challenge is an          effective strategy. Personally visit with one of your lead gift donors or          businesses and ask them to consider bumping their initial pledge, for example          by $50,000, if the nonprofit can raise an additional $50,000 on its own. It’s a          dollar for dollar match which can significantly boost the back half of a          campaign. For added momentum, try putting a specific time frame on the          “reverse challenge” to maximize the leadership and volunteers’ time and          talents.

What are the advantages and/or why start a challenge?

     •   The “Founding Fathers” syndrome can be overcome by getting new people           involved in the nonprofit and encouraging others to participate.

     •   Successful nonprofits should be continuously expanding their major donor           databases. One effective tool to raise a donor’s level of participation is           through challenges.

     •   Challenges allow all donors to maximize their gifts.

     •   Challenges can help a campaign establish or regenerate momentum to           accomplish goals.

     •   This strategy challenges current donors to “up their ante” when they know           they can double their gift.

Example:
A recent community campaign went back to its top donor, who had the capability, and asked them to consider a reverse challenge in order for the nonprofit to reach its “miracle goal.” A $100,000 reverse challenge was designed with the following stipulations. The nonprofit had to raise $100,000 on its own, in less than 30 days, for the donor to match it. The time constraint made the campaign leadership work harder and smarter and even challenged the nonprofit’s board to get involved at a level they did not originally anticipate. The incentive and momentum created ownership and generated excitement. In less than a month, the nonprofit celebrated its “miracle goal” after a successful reverse challenge!

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