Balance, it’s what life is all about. In recent posts I’ve been focusing on growth and innovation. My conversations last week reminded me that it’s important to ensure a solid foundation of understanding in new fundraising professionals to provide the building blocks for future growth. It’s easy to get excited about AI, cryptocurrency, or the impact of social media influencers. New innovation can also be distracting. Without a strong foundation, it’s difficult to understand the delicate balance between trend and trap.
Every nonprofit organization is working with limited resources. We are all bound by time and resources. Culture can be another limiting factor. An organization’s propensity for risk can limit opportunities for innovation. Some of those decisions are beyond our control. Knowing when to push ahead with a new idea stems from your own knowledge of best practices. To that end, I want to share some foundational aspects of fundraising that are the best of best practices.
If you fail to plan, you plan to fail.
Fundraising is all about planning. At the strategic level, fundraising plans need to support strategic vision. Fundraising plans are not built around individual interests, they are rooted in shared goals for the future. When you are setting goals at your organization, particularly financial goals, use data to inform decision making. One example of this I have embraced is in annual fund planning. An organization’s annual fund supports operational expenses in a given fiscal year. There are creative ways to market the annual fund but essentially, the funds raised are budget offsetting. One best practice that has stood the test of time in my experience is a diamond shaped model when visualizing annual fund strategy.
The early focus of annual giving efforts are on the largest prospects who are regular donors. By securing a majority of funds at the outset, an organization can broaden its focus in the middle of the fiscal year, represented by the widest part of the diamond shape. During this time more attention can be paid to expanding the donor base, acquiring new donors, and testing new strategies. As the year comes to a close and the diamond narrows, this is an important time to evaluate outreach efforts to ensure achievement of the fundraising goal.
You have two ears and one mouth so you can listen twice as much as you speak.
Greek philosopher Epictetus is credited with this important ratio. For me, my former boss Geoff taught this foundational guiding principle of frontline fundraising work. Keeping this ratio in mind serves as a reminder that you are striving to get to know a person and their story. Adding to the conversation is important but this ratio helps you stay mindful in your contributions. Allowing a person to be heard deepens the connection and is essential to good relationship building.
Always ask for something.
If this is sending up alarm bells and red flags are flying in your brain, hold on. I’m not suggesting you solicit every person you speak to. I would strongly encourage you not to do that. What I am suggesting is that you set yourself up for success. In every donor conversation there are always a few important takeaways. Perhaps the donor suggested a classmate you should meet or maybe you agreed to reconnect about a piece of research. Asking for something gives you permission and purpose to reconnect. This ensures you stay in communication with your new contact but also at a cadence that is mutually agreed on and understood.
While this is not an exhaustive list of best practices, these core tenants are certainly top of my list of favorites. Personalities, propensity for risk, and institutional culture may shape formulas for growth or program expansion but these three best practices have worked in every organization I have served. When considering your program, I encourage you to think about your foundation. Is your program rooted in the best of best practices? If you need additional resources check out CASE or AFP.
