Politics of Fundraising

This is a question I often ask myself.  Are we in the world of philanthropy working together or working against each other.  Are we in competition or in collaboration?

Lets say for an example that you work for a nonprofit that provides food for children in Africa. There are hundred of non-profits doing that vary thing why should I give my money (or why should I raise money) for you instead of another organization? I am really happy with many organizations that focus their organization on a specific niche group of people that they know how to serve or issue because it allows them to specialize. What about when two organizations that have a similar or overlapping missions do they go after the same dollars?

I know many nonprofits pride themselves on how collaborative they can be. And sometimes I believe this is true when you see a couple organizations coming together to serve a family in need, or an organization has a staff member who’s salary or work area is directed from an organization outside of the nonprofit.

I have found that when it comes to fundraising there is a very small amount sharing that is going on. Try calling up a local nonprofit and telling them that you would like to see a copy of their sponsorship levels and benefits (and don’t forget to tell them you work for a nonprofit) and you’ll get a no almost every time.

What do you think? Should nonprofits be open to collaboration and shared information on everything? Should nonprofits take a more serious business approach and see their partners as competition? Or is it a mix between the two?

I think that every person that gets into fundraising has the same heart as a program staffer. We believe in the issues and people that our non-profits serve. It is those issues and people that drive us to continue to do the very work we do. And we believe this so strongly that we commit to finding sustainability for the work that we do. Money is one of the closest things to our hearts and can be one of the most heartfelt responses to a need. We all want to lend a helping hand but when that helping hand is supported by financial resources we can often start to really solve problems.

Those of us that are in fundraising believe so strongly in what we are doing that simply addressing the direct issue is not enough. We need to gather other people around us to do the same thing. That is what our donors are they are the community advocates, the “evangelists,” the story tellers, of the important work that we are trying to do.

When I say that I want to treat my donors in a different way (All Donors as Major Donors) I am saying that real world change, really making a difference, happens because the entire organization is behind the same idea. This includes the donors and realizing that their giving cannot just be a one-time “payment” it has to be an “investment.” That their gift needs to signify more than just a transaction but a commitment to the mission of the non-profit. And if that investment is really going to effect the organization and make change then the development officer needs to understand and support why that investment is being made.

Fundraising is just as much about people and changing the world as a program staff position. We need to take a real and personal interest in the lives of those that are joining us in what we do… our donors.

What does your non-profit stand for? How do you raise money? As donors ask more and more for outcomes and details about programs what sets your organization apart? What figures, stats and stories do you use to tell your story? Do you know if your programs are better than the programs of other organizations?

Too often many organizations focus to strongly on administrative rate to judge if a non-profit is a good steward. I’ve always had a really hard time with administrative rates because it can be such a relative number. The administrative rate is traditionally the percent of money that goes to fundraising and administration versus to service provision. It bothers me because many times getting a good administrative rate has nothing to do with good fundraising or good program development. I also find that it’s hard to separate what dollars are “service dollars” and what dollars are “administrative.” Administration and fundraising has a lot to do with service provision.

So what’s the answer? What do you think? Post a comment and share your thoughts. One answer is to set up measurable outcomes. Non-profits need to be able to clearly articulate what is happening with the money donors are giving. How are lives being changed and how is the organization continually improving? Are you the best at what you’re doing or is someone else? Make sure that you are setting up measurable outcomes to help you and your donors know you are doing a good job.

A few conversations on this topic that might interest you related to the topic of outcomes:
Give Well- a foundation that is breaking the mold regarding donor outcomes. They are pioneering some radical ideas on what organizations make the most difference for your dollar.
Tactical Philanthropy- Google Finance has started a listing of organizations and Tactical Philanthropy has been talking with them about what kinds of measurable outcomes to use to list non-profits.

Follow up calls use to be the least favorite part of my job. It can be a lot of mental work to sit down with a list of phone numbers and make call after call after call. But, the more I started to make follow up calls the more I started to like them.

How else can an organization keep in touch with a large number of constituents in a short period of time? You might say I can reach thousands of donors via email, direct mail, or blogging (if you read an earlier post). I think those are great tools but none of them are as personal as a phone call. Before I go on don’t use phone follow up as your strongest platform for solicitation. Especially for your major gifts program it is important that you meet in person with your donors.

Before starting your phone follow up make sure you have all the information you will need to answer questions within immediate reach. Have all the phone numbers, names, donor statistics (do your research before your phone call), and program details. Then rehearse a few times what you are going to say. I have often found that it takes a few messages or conversations with a few donors before my message is really polished. It is important that you speak plainly. Do not try and be smarter or more articulate than you naturally are. Donors know when you are reading a scrip or if a message is not your own. Ask questions while you are on the phone don’t do all the talking. This is a great time to learn why someone gives to your organization, how they first found out about you. This kind of conversation helps your future solicitations because you know more about what interests a donor has.

If you have a really long list of people split it up. Get a few board members to help you make calls. Set aside time to make these calls. Plan ahead a few hours every day for a week or set aside an entire afternoon to make calls. One final pointer is a little bit corny, so forgive me, but I have found that it does make an actual difference. Donors can tell by the tone in your voice if you are smiling, frowning, or bored when you are on the phone. I am not sure what it is but if I am having a conversation with someone, especially after I have said the same thing 15 times before, a smile on my face creates a better message.