Posted 7/6/21
So what is the basic difference between sales and fundraising? It would appear as though a sales person could step right in and become a fundraiser based on similar skills, but it is not that easy and not always the case (and I have done both yet still wrestle with explaining the differences).
Here is how the basic difference was explained to me:
A sale is more of a “linear transaction,” whereas fundraising is “triangular.” In a sales relationship, both the (1)customer as well as the (2)salesperson are the only two participants in the transaction. The customer makes a purchase, and the salesperson ensures that the product or service goes directly back to the purchasing customer, making that customer the direct beneficiary (a linear transaction). In fundraising however, the transaction is triangular, meaning (1)the donor, (2)the charity, and (3)the beneficiary are three distinct participants in the transaction. The donor makes a direct contribution to the charity who in turn provides the programs or services to support someone or something else in need (the beneficiary). Three separate participants.
The main difference that I realized was that fundraising is more reliant on emotionally moving prospects to donate, compared to sales. A fundraiser needs to tell compelling stories, utilize volunteer opportunities, events, tours and other engagement strategies to connect with donors. It would take an extremely talented salesperson to emotionally engage a customer with a dishwasher or vacuum cleaner (and while there is an emotional component in sales, it is not to the level needed in fundraising). It can be a real adjustment at first for a salesperson to move someone to support another in need, requiring a much deeper understanding of emotional connections. It can and has been done, but may take some time, as it did for me.
Look at TV commercials for example. You can easily identify the need that a car dealer is trying to satisfy within the first 10 seconds of a commercial, the target being an existing or future need to buy a car. But trying to stimulate an emotional reaction to help abused animals or shelter the homeless requires much more time to get the message across because of the need to stimulate a sufficient emotional response to bring about a donation.
Both sales and fundraising responsibilities are challenging, but selling a donation to help a cause is different from selling an item or service. The customer typically has a need, or the sales and marketing people try to create a need, communicating good quality at a fair price. The donor really has no “direct need” but it is the responsibility of the fundraiser to identify the philanthropic interest of potential donors and engage them with the mission. Again as mentioned above, selling a product or service where the customer receives the direct benefit based on need, is much different than emotionally engaging a potential donor with a cause. It requires a different skills set, and it is not a given that salespersons and fundraisers can easily move to either role. As I see it, an understanding of emotions holds a key to successfully moving from sales to fundraising.