THREE WAYS TO RAISE MORE MONEY

As you probably know I enjoy reading articles, tips and hints from Market Smart, so here’s another one – I’m sure you’ll gain some insights from this.

 

THERE ARE ONLY THREE WAYS TO RAISE MORE MONEY

Every nonprofit organization needs more of two things: time and money. Okay, every organization (nonprofit or for-profit) could use more of those two resources. Hey, now that I think about, I could use more of those two myself…

Time and money are the most valuable resources in the world, and for nonprofits the impact of having more of either can be immeasurable. Of course, time is finite — we all are limited to just 24 hours in a day, but money (funding) is theoretically uncapped, and having more of it generally equates to having a larger impact on the world. That’s not to say that uncovering efficiencies, prioritizing activities, and increasing productivity are all for naught (they aren’t), it simply means that “saving time” plays a direct role in increasing funding. If I’m more efficient, I can raise more money.

Fundraising professionals power the financial engine that sustains millions of nonprofits across the globe, but they all face one common question: how do we raise more money? Of course such a broad question can’t be addressed in a blog post, nor should it be. Increasing the “growth in giving” is an issue worthy of industry boards and committees, not blog posts or ad hoc analysis.

Yet, as with most things, there is one simple answer to this question that can have a resounding impact and actually make a substantial difference on your funds raised. Yes, the answer to the “how do we raise more money?” question is incredibly complex, but no that doesn’t mean there isn’t anything you can do today to affect it.

Let’s start with a universal truth; there are only three ways to raise more money. Now, before you scroll to the comment section of this page and begin typing your, “there are more than three ways to raise money, bozo!” comment, please bear with me.

Any organization, nonprofit or for-profit has only three ways to increase the amount money they receive. They could:

  1. Acquire new donors/customers
  2. Retain existing donors/customers
  3. Monetize their donors/customers

It’s really that simple.

I’ve appended “/customers” to each of the three strategies above for a reason. As you continue reading this blog post we’ll address each strategy with both a nonprofit example and a for-profit example. You’ll quickly realize that for-profit companies are employing each of these three strategies on you every day.

 

Keep reading here

How Long Does It Take to Start a Major Gift Program?

Came across the following on veritusgroup.com and thought was worth sharing, some great insights/pointers.

It’s a serious dilemma.

The organization needs the money; they have the donors to deliver the money, but there is no major gift strategy in place to secure the money. This confluence of need, opportunity and planning usually results in a lot of impatient leaders.

Just last week I sat in a meeting where a manager was visibly upset at the slow pace of revenue generation. When I tried to explain that relationships take time, she brushed me aside and said: “Look, all you have to do is ask.”

And therein lies the organizational problem for many major gift programs. Management needs the money, and major gift people are told they need to deliver it “right now!”

This is a path to certain failure because the MGO, in this type of hostile and urgent environment, will focus on the money rather than helping a donor fulfill her passions and interests. And we all know that a focus on the money is a sure way to alienate a donor.

Reasonable managers and leaders know that good relationships take time – that you don’t just pounce on a donor and squeeze the money out of him. But these same managers often ask Jeff and me how long it should take to gain traction in a major gift program. “How long,” they ask, “does it take to have a fully functional program in place?”

We think it takes a minimum of 18-24 months to start a major gift program and have it become fully functional. Why so long? There are several reasons:

  1. The organization needs to hire the right MGO. This could take six months when you consider the time it takes to agree on the job description, get the proper authorizations, search for candidates, interview and vet the candidates and then finally hire them. I haven’t seen this process take less than four months. So let’s say it takes four months –although many times it takes longer.
  2. The MGO needs to qualify donors for a caseload. Why? Because only 1 in 3 donors who meet the major gift criteria will actually want to talk to the MGO. So the MGO has to go through a labor-intensive process to find 150 donors who will relate to him. This step alone will take 6-8 months. Let’s say six, even though that is being generous.
  3. Relationship building takes time. While the MGO will qualify donors early in her tenure with the organization, 8 to 10 months will have passed before she actually starts engaging seriously with donors. And building relationships (as you know) takes time – more time than most managers think it will take.

Keep reading full article here

Corporate Giving, Makes Corporates Smell of Roses

We all like to see individuals and business get behind a community organisation, those who give do so for a variety of reasons. And, the feedback, the feeling they get for their giving is varied too.

This article on www.nzherald.co.nz is a good read, it isn’t new findings, but worth the read nonetheless.

Read the article here Successful corporate giving

2016 Fraud Survey – BDO

I’ve talked about fraud in the charity sector before, and my personal take on it is that it under reported, because charities don’t want their donors to know that there are people committing fraud (no matter the level.)

Yes, there is a risk to funding if general donors (mums and dads) learn that there has been fraud committed at a charity they support, but in reality isn’t honesty the best policy, shouldn’t donors be told what’s been happening?

It seems that the majority of charities have systems in place, especially given the new reporting standards required of them, and know they can get help and support from Charity Services; so maybe the message is getting across, especially with smaller organisations, that there is help available to them and that there’s no shame in asking .

Read the summary of the BDO Not-for-Profit 2016 Fraud Survey here.

If your organisation detected fraud, what would you do, would you take action, would you let your supporters know? Either leave a comment below or email me charitymattersnz@gmail.com.

 

 

 

Grant Thornton Survey

The Grant Thornton Survey is conducted every two years, and from my take on the results non-profits are still facing the same issues as were indicated in the last survey results.

Smaller non-profits are still concerned about where they are at, where their money will come from.

And, again the issue of how organisations relate to their Board is also an ongoing concern (something I am concerned about – to me a Board should be more than a group of people who “”sign off” a Board should be active).

Read the full report here 

What are your concerns, issues … what needs to change? I’d be keen to know what your take is on where your organisation is now, and what you need to get it from where you are now to where you want it to be. Either leave a comment or email me charitymattersnz@gmail.com.

 

 

Not an ATM

I’ve used the phrase quite a bit … your donor is not an ATM, or similar. To receive a link to an article by Marc Pitman ”I’m not your ATM” was timely.

Have a read of what Marc says:

I’m not your ATM

As the economy continues to falter (or barely grow), we need people’s donations more than ever. But if we operate from a place of “need,” we can start sounding like we think we’re entitled to people’s money.

We never are.

So it’s more important than ever that you have your donor relations system in hand.

Here are some things to be thinking about as you review your plan.

Send acknowledgements quickly

Time after time, bloggers report making 10 donations at the end of the year and only getting 3 acknowledgements.

Don’t let this be you.

Best practice is to get those out within 24 to 48 hours. Some nonprofits aim for a week, allowing them to dedicate one day for receipting.

Just get them out.

Have a stewardship system decided in advance

Acknowledgements are expected. Stewardship is much more. Here are some things I help clients consider:

What level gifts get a handwritten note from the development director? The ED? The board chair?What level gifts get a phone call from the development director? The ED? The board chair?Do you have board members or staff do a thankathon?

These should all be spelled out so that, for instance, the ED can have a list of $1000 donors to call each week.

Continue reading here

Problem Boards or Board Problem?

We’ve probably had that feeling that there’s an issue with the Board of an organisation, perhaps we’ve become frustrated that the Board just aren’t getting it …

The following paper from www.npqmag.org is well worth the time to read, it covers things like “underperforming boards are the norm, not the exception,” that sometimes the Board of an organisation sees itself as a legal need, making the role mundane, having a sense of a lack of purpose.

Rather than dissect the paper, click here and download and read it for yourself. I’m sure you will have a few light bulb moments about your Board, or a Board of an organisation you may have had some dealings with.