The Link Between Negotiation, Sales, and Fundraising

Whether you realize it or not, you are a negotiator.

Your days are full of negotiations, one after another. Some are small, like persuading your kid to eat a little breakfast before school. Some are bigger, like getting your team on board with the idea you want to pitch to your boss. And some are even bigger, like buying a house or asking for a promotion.

Life is all about negotiation — and negotiation is happening all the time.

Want to get that car at the best price? Then you need good negotiation skills. Want to get paid what you’re worth? You’ll need good negotiation skills for that, too. Want to become a better fundraiser? Then you’ll definitely need good negotiation skills.

The bottom line is this: If you want to be successful at fundraising, at life, at just about anything, you need good negotiation skills.

Here are three of my own personal negotiation principles: 

1. Show up to your meetings early. Being late puts you in a weaker position.
2. Ask for more than you can expect, but not a lot more.
3. Never say yes to the first offer (unless your life is involved).

The problem is, a lot of nonprofit folks just don’t like to hear the word “negotiation” in the context of fundraising. It’s just like the many people in this sector who don’t like to hear that fundraising is sales.

I understand. The term “sales” makes most of us think of shady used car dealers, or the guy who rings your doorbell to ask if you’re thinking of getting your windows replaced.

But I’ve always thought of fundraising as sales—and it’s not a bad thing! A company sells products or services in order to raise funds, increase its bottom line, and stay in business. And if it’s a good product, you don’t mind being “sold” to, do you?

Instead of goods or services, a charity or nonprofit sells a cause in order to increase its endowment and continue its mission. If it’s an honorable mission and a trustworthy nonprofit, your donors aren’t going to mind being “sold” to one bit.

And in any type of sales—fundraising included— you need good negotiation skills. You’re going to run into donors who can’t (or won’t) donate the first, or second, or maybe even the third figure you suggest. Some donors will want to specify where every last penny of their donation goes — even if that’s against your nonprofit’s policy. Others will want some kind of recognition — a plaque on the wall, or naming rights.

And every one of those scenarios will require serious negotiation skills.

I’ve always said that people skills are the most important tool in a fundraiser’s kit. Negotiation skills go hand-in-hand with that.

Ignore negotiation at your (and your nonprofit’s) cost. Just don’t be surprised when you pay full price for your next car — or when you walk away empty-handed from a meeting with a prospective donor.