Can Nonprofits Have Sustainable Funding?
Sustainable funding is something that every nonprofit wants. It is also present to some degree in most nonprofit’s donor base. There are donors who give regularly out of habit, loyalty, or passion for the mission. They are the source of sustainable funding. How do you create more?
| Posted in Fundraising on Oct 7, 2010 by
|| 4 Comments |
Before you can create more, a few precursors are important, perhaps necessary.
- There must be a belief that it possible to have a sustainable funding plan without relying on grants or bequests.
- The mission statement and strategic plan must be rich in community benefits and client benefits.
- Along with intentionality, there must be a process.
- Part of the process is igniting donor passion, or said another way, there must be intentionality and a focus on creating sustaining donors.
Many people tell us that sustainable funding is a dream, like world peace. However, there are examples of organizations that have sustainable funding.
One of the little recognized examples is Goodwill. Many Goodwill agencies rely entirely on donation for what they sell. Yes, they have earned income, but it comes from the sale of something someone gave to them.
Another point to remember is that the average donation to Goodwill has a low dollar value. While there are thousands of repeat donors, they are irregular in frequency and size. Your donors are probably more predictable and provide a higher value gift.
Goodwill is successful because they provide a service to their donors. Their donors express their gratitude by telling others. “Goodwill stopped by this morning and picked up the girls’ toys. It is so nice to have more open space in the basement."
How many of your donors say things like, “I stopped by the food bank on the way here. It is so nice to know that my gift will feed a hungry family for a week.” Yes, feeding a family for a week is a service to that donor. The donor has a need to give and a need to help others just like the Goodwill donor has a need to give and a need to help others.
The Goodwill donor could have sold the items on eBay, donated them to another organization, or thrown them in the trash. They chose Goodwill.
Goodwill works hard to cultivate a relationship that makes them the donor’s first choice. They believe it is possible to be the first choice. Do you believe that your organization can be the first choice for your donors?
Goodwill also provides significant community and client value. They provide employment and employment training for those in need. They provide people with limited income an opportunity to purchase needed items. Goodwill was recycling, reusing, and repurposing before it was fashionable.
- Make the cultural shift required to believe that sustainable funding is possible.
- Build donor processes so that your donors feel as well served as the Goodwill donor.
- Either express your mission so that the community recognizes the value or revisit your mission so that it provides community value.
Creating sustainable funding is hard work but it's worth it. Having sustainable funding is a major step toward having a sustainable organization.
Sustainable Funding Nonprofits Goodwill Donors Fundraising
Submit A Comment