5 Reasons Your Fundraising Isn’t As Successful As It Can Be
| Posted in Fundraising on Feb 9, 2012 by |
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The most successful organizations always have a specific plan in place that they adhere to when working to accomplish any facet of their operations - a roadmap they can follow which leads them to where they want to go.
And when it comes to fundraising - the most critical element required to support the individuals, communities and/or causes of the organization - having a well-articulated strategy to implement is crucial. Yet once the plan is in place, there are a wide range of things that organizations do (or don't do) that sabotage their fundraising strategies and tactics, and prevent them from reaching their financial goals. Here are five common mistakes made by boards, along with potential solutions to help alleviate them.
ISSUE #1: Your Board Members Refuse To Play An Active Role In Raising Money
This issue is listed first because it is usually the most critical to the overall success of the fundraising efforts. Often times board members do not completely understand their roles and expected responsibilities when it comes to raising funds. They may have expectations that the Development Director is "in charge" of fundraising efforts, and their own active participation is not required. "That's the reason we hired the Development Director in the first place, right?" Wrong. For the most successful organizations, this attitude could not be further from the truth.
One of the board's primary responsibilities is to secure adequate resources for the organization to fulfill its mission. Research indicates that number one indicator of fundraising success is board giving, period. If a board is not fully committed to their own financial support of their organization, it becomes increasingly unlikely that their fundraising goals will be attainable.
Beyond their personal giving, board members typically have considerable reach and influence among their peers as well. Equipping and motivating board members to actively engage in soliciting funds, and in relationship development on behalf of your organization, is an incredibly powerful strategy for you to pursue. Each member must understand that they share accountability for resource and revenue development, in addition to their role in providing proper financial oversight to the organization.
Beyond the participation of the entire board, of utmost importance to fundraising success is the reputation of the CEO. This encompasses a wide range of characteristics and activities, both inside and outside the organization. Internally the CEO's willingness to play an active role in fundraising efforts and the commitment of their own personal financial support sets "the Standard" for the entire organization - the role model that others in the organization should emulate.
ISSUE #2: You Have Unrealistic Expectations Of Your Development Director
As we've been discussing, the ultimate responsibility for fundraising must fall on everyone in the organization for optimal success. And while it is certainly true that a Development Director needs to begin actively building new relationships while leveraging existing ones their first day on the job, it's unrealistic to expect the Director to begin bringing in large amounts of money, or sometimes even small amounts, during the first 3 months in their position. Depending on the organization, even this timeframe may be too short.
Boards must remind themselves that they hired their new Director for a reason – because they proved to be the best fit for the job – and they must give their new staff member the time truly necessary to fulfill their duties. It's not just about today or tomorrow, but about accomplishing great things over the long-haul.
Another mistake that leads to unrealistic expectations is to assume that "development" is only about fundraising. Intuitively board members know there is more involved than simply making the ask, but they need to remain mindful of the many other responsibilities – explicitly stated or not – that fall on their Director's shoulders. These myriad other duties and tasks preclude them from spending all of their working hours ask for funds and must be considered when establishing realistic financial goals and timelines.
The bottom line here is that great results usually take time. If you know the financial goals you've set are appropriate and attainable, and also that you have the right person in the job actively striving for them, have a bit of patience in getting there.
ISSUE #3: You Don't Give Your Director The Tools They Need
Your Development Director does not operate in a vacuum, and needs to have both the working resources and financial support of your organization to succeed in your fundraising efforts.
This may mean purchasing new donor development software or training, or providing promotional materials and other collateral and resources that your Director needs to get the job done. When tasked to complete any job, each of us is only as good as the tools we have at our disposal. Work to ensure that your Director has the tools they need to achieve the best results, and if you are unsure - ask.
ISSUE #4: You Don't Listen To Your Director
It happens in all types of positions and organizations, but often times once an employee is brought onboard, they immediately transition from "This is the best, most-qualified individual to excel in this role," to "We know far better than they do, and their opinions and ideas don't count for much".
Pause for a moment to consider the absurdity of that situation, and then think about how often it happens in real life, and probably within your organization at one time or another.
Your Director is there not only to implement plans and execute directives, but to provide their own energies, passions and experience in the fulfillment of their critical role in your organization. Many board members have extensive resumes of experience in fundraising (along with most other facets of business), and their contributions are most definitely vital. But you must make sure that you leave enough room for the ideas and opinions of the person tasked with actually performing many of the fundraising activities that support your organization, and let them know they have a voice that will be listened to and considered.
ISSUE #5: You Don't Follow Through On The Commitments You Make
How often has your organization asked for the expected contributions or support that each board member will pledge to provide over the coming year? And then how often are those commitments met? If the answer is not "almost always", you have a problem.
When members of the board make commitments that they do not honor, it makes one wonder why they were made in the first place. Perhaps in some organizations there is never any consistent follow through or accountability, so pledges aren't taken very seriously to begin with. This is obviously a glaring sign of an organization that will never reach its full potential. Sometimes individual members also lack the discipline to actually make their follow through a priority, or perhaps even lack the financial resources to honor their pledge. No matter the reason, if financial commitments are not being met it's essential that you find out why.
Other commitments that are asked of board members include scheduling or facilitating meetings with colleagues and other valuable business contacts; providing leadership and resources to fundraising efforts; and soliciting silent or live action. The list goes on from there. And following through on these commitments your board members are making, or at least should be making, needs to be understood as a basic expectation of board membership if an organization is ever going to reach its full potential.
If a lack of follow through on any of the commitments listed above applies to your organization, or if they aren't being made in the first place, it's probably a good idea for the board to take a step back and reassess their overall commitment level. A review of what expectations are and what the perceived importance is of fulfilling these board responsibilities is probably in order, with changes being made which work to correct the issues identified.
These 5 issues are just some of the most obvious ways that organizations frustrate their fundraising. But taking the time to assess if any of the previous five situations exist within your own organization can go a long way in helping you better accomplish your financial goals – and ultimately provide more impact to the clients, communities, and/or causes you serve.
Tiffany Applegate is President at Applegate Consulting, she has provided thousands of nonprofits expertise and practical guidance for building, strengthening, and growing their organizations and increasing their impact. In addition to working directly with nonprofit organizations, Mrs. Applegate has served as a lead trainer for two federally funded capacity building initiatives and provides training and technical assistance for a variety of State and Federal programs. Get more information at ApplegateConsultingInc.com
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Fundraising Nonprofit Board Development Director Financial Strategy
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