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Advancing Your Development Program to the Next Level
L. Scott Schultz, President
May 2010

The recent economic downturn has been a wake-up call for many of us, especially in the nonprofit sector. With decreases in major giving and market fluctuations adversely affecting our revenue streams, the dangers of keeping all of our eggs in one basket becomes clearer.

Even in better economic times, many organizations that don’t traditionally rely on broad private support will reach a crossroads when a more diverse philanthropic income stream is needed. Making the move to a professionalized fundraising program that can develop diversified avenues of support involves more than just adding staff.

Like any strategic effort, growing a fundraising program and establishing a culture of philanthropy calls for a focused institutional commitment. Here are a few key steps that are essential to laying the foundation for a successful fundraising effort:

Understand Where Fundraising Fits In. If you’re looking to add a fundraising program, it may be because there are gaps in your revenue picture. Can private support fill those holes in your budget? Or do you need to rethink some elements of your business model and capitalization structure in order for fundraising to make a difference?

Once you can articulate the financial case for contributed support, you will also need to define it programmatically – what can private philanthropy support within your organization that is attractive to individual, corporate and private foundation donors? Finally, make sure that the role of fundraising is understood throughout the organization so that you have buy-in and realistic expectations for the new endeavor.

Engage Your Board in Fundraising. Not even the best staff can raise significant support without a helping hand from volunteers. In fact, the most effective staff are used to, and good at, working with volunteers. Fundraising should be part of each Board member’s job description, and there are many ways they can be engaged in identifying, cultivating and stewarding donors, without having to make the ask.

Build Up Your Systems, Policies & Procedures. Fundraising involves tracking people and dollars, and this affects all areas of your infrastructure – from databases to methods for capturing and updating constituent data. New contributed revenue may also have an impact on your cash handling and internal controls. Policies for gift acceptance, donor recognition, endowment spending, etc. may require Board approval.

Experienced consultants can often be good partners in helping organizations navigate the major steps to prepare for an effective fundraising program. Here are some other ways that executive directors and other senior staff can prepare to engage with their new development colleagues:

• Attend professional development courses geared for senior leadership offered by your local Association of Fundraising Professionals (AFP) or other nonprofit support groups.
• Read Advancing Philanthropy, the AFP’s member publication, and The Chronicle of Philanthropy.
• Speak with your peers who have diverse contributed revenue, particularly to get an understanding of the commitment and expected timelines for a return on your investment.

By recognizing the broad-ranging implications of committing to a fundraising program, you can be ready for the transition.

 

Schultz & Williams is a national consulting firm based in Philadelphia; providing management, fundraising and marketing consulting for nonprofit organizations, along with full-service direct marketing, database and creative/production services.