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ProSpeak

By Who's Up Next?

About ProSpeak

Essays about the nitty-gritty of fundraising, written by the people who do it every day

 

Pay It Forward

F. Duke Haddad
Plan A, Plan B or No Plan?
Aug 29, 2014

Do you have a written operational plan to follow for you and your team? Having a plan helps you see...



Get What You Give

Joe Boland
Final Call: 2014 FundRaising Success Gold Awards Entries Due Tomorrow!
Aug 28, 2014

The final deadline for the 2014 Gold Awards for Fundraising Excellence is tomorrow, so overnight those entries and join in...



Old Dog Fundraising

Pamela Barden
When Donors Come to Visit
Aug 28, 2014

We may not have a “Welcome — come on in!” sign hanging at the door, but from time to time,...



Ruthlessly Practical Fundraising

Gail Perry
How to Learn From the Ice Bucket Challenge and Make Social Media Work for Your Cause
Aug 27, 2014

What made the Ice Bucket Challenge so successful? There were a few key factors of the challenge that all fell...



Bedrocks & Beacons

Jeff Jowdy
Take Time to Celebrate Fundraising Success With Everyone
Aug 27, 2014

We all love to celebrate! Find appropriate ways to constantly celebrate your fundraising success with those who make a life-changing...



Outrageous Hope

Margaret Battistelli
You Could Win a Free Pass to IFC in the Netherlands!
Aug 22, 2014

The IFC is taking place Oct. 14-17 this year and, in an exciting turn of events, is giving nonprofit fundraisers...



Navigating Off the Napkin

Angie Moore
I'd Like to Order Some Social Influencers
Aug 26, 2014

Oh, and can I have a side of “how to find them” and “what to do with them”?...



Connections

Richard Perry
Who Should Be on My Caseload?
Aug 25, 2014

What kinds of donors should be on your caseload? By kinds I do not mean gender, age, ethnicity, political or...



Outside Counsel

Willis Turner
Everybody LOVES the Fundraising Pacakge. You Should Be Worried
Aug 25, 2014

If getting people to do what we went them to do was easy, there'd be no need for nonprofits....



Donor Trippin'

Nick Allen
Is There an App for Us?
Jul 1, 2014

Got an idea for an app that could connect a charity or nonprofit with its supporters and beneficiaries in an...



Raising the Possibilities

Thaddeus B. Kubis
Recurring Themes: The Case for Integrated Marketing Communications, Part 2
Dec 27, 2013

Recent discussions focus on a myriad of topics, but in the past two months, the recurring targeted topics seem to...



Hump Day Hullabaloo

Jo Sullivan
Hump Day Hullaballoo: Sometimes It's Hell in the Hallway
May 22, 2013

This week, as I transition into my new position as interim executive director at Save the Chimps, we're talking about...



The Difference Between Fundraising and Development

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Fundraising. Resource Development. It's the same thing, right? Or is it?

Many people use these terms interchangeably, but I think there's a significant difference, especially for folks working in a small shop. When you're overworked and maybe overwhelmed, it's easy to get caught up in the frenzy of raising money. You need the dollars, right? Gotta make budget, right? Programs can't be delivered without funds, right?

Right, right, and right.

Except that sometimes it's wrong to focus just on the dollars. Consider these situations:

Case A: The executive director of a small nonprofit is responsible for everything — administration, fundraising, supporting the board, and overseeing operations. The organization hosts a variety of small fundraising events throughout the year, which generate a considerable amount of publicity and attract lots of people through ticket sales.

Case B: A regional nonprofit produces a very popular 5K race that is highly anticipated each year among area runners. A local restaurant is the main sponsor and provides a lavish picnic at the end of the race to all the runners.

Case C: A well-known and respected local organization sends out an annual direct-mail piece in the fall. The appeal brings in a small amount of money, which goes directly toward the bottom line of its annual fundraising campaign.

This all sounds good right?

Except that it's not. In each of these cases, money is being raised. But that's about it. None of these activities are sustainable they way they are. None are being leveraged to their capacity. And there are problems that need to be addressed.

Here's the rest of the story.
Case A: This organization has gotten itself on the special event hamster wheel. In the absence of knowledge, the board focuses on events. That's all the members know how to do so that's what they do. And while the community supports each of the small events, many people consider their ticket purchase as their "gift" to the organization, which leaves no room for individual donor development. And frankly, some people in the community are getting tired of all the events (not to mention how tired the staff and volunteers are from working them!).

What development might look like: If this organization cut out half of its events and instead spent the time on developing relationships with its best individual donor prospects, it would come out way ahead in the long run. All of these events don't provide sustainable funding for the organization and the important work it does in the community. Committed individual donors do. Individuals who feel a connection to the organization and a loyalty to its mission will give year after year. It's like having a group of good friends who will stick with you no matter what.

Case B: At first glance, this seems like a good event. But when you consider staff time in the budget, this event could be losing money or at best breaking even (which is very common with this kind of event). Also consider that the audience is very limited and are focused on improving their running time, not necessarily supporting the cause.

What development might look like: This organization needs to go one of two ways: Either modify the event to appeal to a wider audience or stop doing the event. To modify the event, the nonprofit might add a walk, encouraging participants to seek pledges and focusing on how the money from the event will make a difference. This will help increase both the quantity and quality of participants. With careful strategy, the walk participants can become donors to the organization.

Case C: This is a case of smoke and mirrors. The organization is so focused on hitting its annual fundraising goal that it counts every dollar it possibly can add to the final total. Its direct-mail appeal isn't particularly well done and goes out to a list of people who aren't regularly communicated with. The result is a lackluster response, and when you look at the expenses, the nonprofit is losing money on this activity.

What development might look like: The organization needs to do a better job overall of cultivating relationships with donors throughout the year, including keeping them updated about the work being done in the community to change lives. A strong appeal mailed after a series of meaningful communications will likely generate significantly more revenue for the organization.

In each of these scenarios, looking at just the dollars raised doesn't reveal the whole story. These activities are focused on the immediate money raised and are considered fundraising activities. In order to build for the future, each organization needs to shift its focus away from fundraising and instead pay attention to development — developing donor relationships that lead to long-term organizational sustainability.

Sandy Rees is a nonprofict coach and consultant fundraising coach and consultant, specializing in helping small nonprofit organizations raise more money, strengthen theirb oards, and build relationships with donors. Reach her at sandy@sandyrees.com

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