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April 2006 eNews

Dear Friends:

Continuing the pattern of introducing you to my colleagues at od180, this month I am delighted to place the spotlight on Rachel Greenhouse. Rachel and I were colleagues in Minnesota for several years and over the course of that time not only learned much from each other and but also laughed a lot with each other. As with my other colleagues, she works both through her own practice and through od180. Either way, the strength of her expertise in the arena of marketing and fund-raising is matched only by her integrity. She makes commitments where (and only where) she can make a positive difference. In the article below, she shares a collection of some of the insights she has gained about fund-raising in particular – a subject that is nearly always a current one for non-profits.

If you are struggling with questions about how to raise the resources you need to have in order to fulfill your mission, then perhaps your organization would benefit from an assessment of development & marketing practices. Contact me for further information about just what such an assessment would entail and the benefit it could provide.  Too often, leaders are so busy with immediate fund-raising concerns that the bigger picture is lost – along with opportunity. Taking a thorough look at current and possible revenue patterns is the first step toward both broadening and deepening the funding flow.

Peace,

David Norgard

Observations on Fundraising

By Rachel Greenhouse

Prevailing myths about fundraising

1. You have to know rich people to be able to participate in fundraising.

2. Foundation grants are the best way to raise money quickly.

3. If we communicate our needs to people, they will be offended and feel that we are always asking them for money.

Key truths for increasing support

1. Start with what you’ve got.

The most effective way to grow support for your organization is to start with current and past Board Members, staff, volunteers, current donors and people who directly or indirectly benefit from your program(s). Everyone involved with the organization has the passion to share its story with others. It takes a team of inspiring people to be effective in raising support. Everyone has a role to play within his or her own sphere of influence.

2. Support means a lot more than financial donations and grants.

In fact, your organization needs a solid base of diverse kinds of support in order to be successful and sustainable for the long haul.

Types of support include:

• In-kind donations (anything useful and relevant, from napkins at events to instruments for lessons)
• Groups of volunteers from churches, service groups, schools, businesses and corporations to assist with events, offer program support, raise awareness in the community, and conduct drives to collect items needed for programs
• Individual donors at all levels, from $25-$25,000
• Foundation grants and corporate gifts at headquarter level
• Corporate gifts at store or small business level
• Churches and service groups which have granting or annual outreach funding programs
• Relevant advocacy groups, politicians, community leaders and media to publicly share the mission of the organization and its role in the community
• People who will share the message of the agency through word-of-mouth with people who might be able to help in some way
• Community and business partnerships to add to the credibility of the organization, vouch for its importance to society, and to generate opportunities for earned income

1. Anyone who has benefited directly or indirectly from their experience with your organization or program(s)

3. There is strength in combining our efforts to cross-promote the organization with its different programs and efforts.

When the public has a clear sense of the umbrella organization, you will garner broader support from a greater number of supporters. Some people or groups may be interested in supporting one or the other of your individual programs; some may be interested in the entire mission of the entire organization. It is beneficial to give people options. And, communicating all that you have as an organization makes each of your programs look stronger individually.

4. Communication is the key to cultivation.

You need to be communicating regularly and consistently with all of your key constituents in order to keep the message of the organization--its clients and their needs--in the forefront of their minds. On average, a donor has to hear about a mission seven (7) times before making a financial commitment. Cultivation of new people to become donors and volunteers is the key to expanding the base of support, and to ensuring the long-term sustainability of your services. Cultivation requires communication. You must communicate consistent messages about the importance of your work and offer ways to show people the inner workings of the organization (i.e. stories of the people you serve) so that they feel involved in it personally. This is what moves people from the role of interested bystanders to passionate participants.

5. If people understand the importance of your mission and you communicate with them regularly, they will not be offended when you ask them for support.

In general, people are looking for a way to make a difference in the world. If your mission connects with them emotionally and intellectually, they appreciate being given the opportunity to help. If they have the financial capacity to get involved in that way, you need to provide opportunities for them to do so. If they have the capacity to get involved as a volunteer in some way, they should be given the opportunity to do this.

6. You can create accessible “points of entry” for potential donors by offering less daunting opportunities to get involved. 

Opportunities to give with lesser requirements in terms of time and expense commitments will get a broader range of people involved, not just those who are willing to jump in feet first. The more people you can get involved, even in a small way, the more quickly you will cultivate them as supporters of your work on all levels.

od180

Suggested Reading

Running a close second to fund-raising on the list of concerns of most non-profit leaders is how to manage effectively the financial dimension of their organizations. We do what we do for the sake of the art or the people or the neighborhood and the proper accounting of and reporting on our finances is a task we know is necessary yet wish we could avoid. In that vein, my reading recommendation this month is Finance for Non-Financial Managers by Gene Siciliano. It won’t prepare you for talking fine points with your CPA Treasurer but it will provide you with enough of a working knowledge of financial reports that you can make better decisions based upon better understanding of your organization’s financial realities.