September 2007
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Dear Friends:
We have turned the corner on summer and for many of us the arrival of fall means renewed attention on fund-raising. When we talk of fund-raising, the conversation typically focuses on campaign plans, donor pools, and budget projections. Yet before we can even ask for that next gift effectively, we need to be prepared to deal with it - and the donor - appropriately. This month then, I outline what I see as "foundational development practices," the systems and procedures which should be fully operational before any soliciting ever begins. Peace, David Five Foundational Development Practices# 1: The Donor/Prospect Database Today even the smallest nonprofit with the simplest annual campaign really must have a database system that is more than a glorified address book. Certainly, the database needs to be arranged and maintained in such a way that contact information is accurate and complete. Yet, more than functioning as a repository, the system needs to be capable of facilitating and tracking interactions and communications with constituents and prospects. It also needs to allow for flexibility in segmenting the whole population as the definition of subgroups will inevitably change over time. And, after all that communicating and interacting, it needs to provide reports that will actually illuminate more than obfuscate how well or poorly a particular campaign did. All this is essential. # 2: The Program Communications Plan If individuals have given or are going to give money to support your program, it means that they have some interest in it. So tell them about it - regularly! Let them know about the program per se and the effect it is having on those it serves. In a previous article I outlined a basic communications plan. (Send me an e-mail at davidnorgard@od180.com and I will send you a copy.) Suffice it to say here that if you don't make the time and effort to let people know what impact their gift has had, the impact on your organization is likely to be a less than favorable response to the next solicitation. # 3: The Regular Financial Report Along with updates about what is happening with and through the program, people who view themselves as members (however defined) of an organization or significant/major supporters of it are often also interested in how the organization itself is doing. Are they supporting an organization that is using its resources effectively? Do they belong to a group that is experiencing serious financial challenges? They are fair questions and answers should be provided in an annual report at minimum. I also recommend a semi-annual update for major donors and especially involved members. And always make both the most recent audit and IRS Form 990 readily available upon request. Don't make it a test of perseverance to acquire one. # 4: Gift Acknowledgment and Donor Recognition Along with updates about what is happening with and through the program, people who view themselves as members (however defined) of an organization or significant/major supporters of it are often also interested in how the organization itself is doing. Are they supporting an organization that is using its resources effectively? Do they belong to a group that is experiencing serious financial challenges? They are fair questions and answers should be provided in an annual report at minimum. I also recommend a semi-annual update for major donors and especially involved members. And always make both the most recent audit and IRS Form 990 readily available upon request. Don't make it a test of perseverance to acquire one. # 5: Gift Type and Allocation Finally, be clear and stay clear on what type of gift you are soliciting or receiving. If it is an unrestricted gift in response to the annual campaign, then that's great. Use it for whatever you need. If the gift comes as a response to an appeal for a special purpose however, it must be used for that purpose. Too many nonprofits have lost the confidence of the public over this entirely avoidable error. Make sure that you always do what you say you will do with what you receive...even it seems so reasonable - and tempting - to do otherwise. It is a matter of trust. To all of you who are embarking on fall campaigns I wish you the very best. And before you even ask...see above! |
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