Every nonprofit organization relies upon the philanthropic support of others to ensure that the necessary resources are available to carry out their mission. Yet despite all the knowledge about fundraising, most nonprofit organizations struggle.<\/p>\n
Hundreds of articles and books have been written about the subject of fundraising along with extensive research on the subject as well. Thousands of professionals attend annual conferences hosted by professional fundraising associations covering a wide range of topics on annual giving, major gifts, capital campaigns, donor software and online donor technologies.<\/p>\n
Yet despite all the knowledge and research, why do so many organizations continue to fail to achieve any real level of success?<\/p>\n
Perhaps it is time to dramatically re-examine how we think about fundraising, and finally learn what it really takes to create a successful culture of philanthropy.<\/p>\n
Let us start with understanding the principles of philanthropy – why people really give money. We know that people give to make a difference; they give because they want to make the world a better place; and most give because they were asked by someone they know and respect. Some people also give for tax benefits. But there are two major reasons why people REALLY give money that we need to understand and change our organizational behavior:<\/p>\n
People give to high performing successful nonprofit organizations because they want to see a \u201creturn on their investment\u201d. They do not want to give to help you address constant operating losses. The more your organization communicates your achievements and successes the higher the probability donors will give to you as compared to others.<\/p>\n
So how does your organization communicate the positive impact you are having in the community you serve, whether local, national or global? Do you discuss your achievements and successes at each board meeting? Are your board members passionate and committed to serve as your community ambassadors? How often do your stakeholders hear directly from those who have benefited from your services? Do you have video testimonials from them expressing their gratitude to you on your website\u2019s home page?<\/p>\n
When I was a young boy my mom occasionally took my brothers and sister into New York City to see the Radio City Music Hall Spectacular Christmas Show. We travelled into the city by bus and outside the Port Authority bus terminal and there was always this poor disheveled person sitting on a cardboard box selling pencils in a tin cup. He was always begging for money.<\/p>\n
Far too many organizations still practice the \u201ctin cup theory of fundraising\u201d by asking for money because of their financial distress than asking them to invest in your organization\u2019s success. Now, your organizational needs for facilities, staff and program and services support are important. However, if you truly understand that people rarely give to your \u201cneeds\u201d, but to success and the opportunity to make a difference in the lives of others, you will be on the road to creating a true culture of philanthropy.<\/p>\n
Now is the time to transition to the \u201cinvestment theory of fundraising\u201d. Board members from organizations that practice the \u201cinvestment theory of fundraising\u201d no longer fear rejection or prefer to \u201chave a root canal than help raise money. They will no longer view the Development Office as a department like finance and human resources, but more of part of your organization\u2019s culture.<\/p>\n
When you develop a high performing nonprofit organization that is constantly striving for excellence in everything you do, your board members will become active partners with your CEO and chief development officers in cultivating and soliciting donors. They will have become passionate about the impact your organization is having on others.<\/p>\n
Board members from high performing nonprofit organizations also experience their board service as more meaningful and fulfilling. They have a strong sense of ownership or partnership with you in helping you achieve your strategic goals. The more your board feels responsible for your success the more engaged with you they will become.<\/p>\n
About a decade ago I founded a university leadership program called the Center for Excellence: Leadership, Governance and Philanthropy. I taught a course called \u201cHow to Avoid the Fundraising Bermuda Triangle\u201d. The fundraising Bermuda triangle is when the three parties, chief executive officer, chief development officer and the board, all point fingers and blame each other for their organization\u2019s lack of success. Apparently, it is easier to blame others than to own up to their own personal responsibility.<\/p>\n
The overwhelming number of volunteers who serve on your boards are well meaning individuals, they want to do the right thing \u2013 they want your organization to succeed -but we must admit we do a pretty ineffective job of training our board members on how to become successful in philanthropy. We often have unrealistic expectations of our board members too. Just because someone is successful as a business or community leader does not translate to success in the world of fundraising. In addition, constantly reminding them of their role as fundraisers is like reminding your kids to clean their room. It rarely is effective (maybe your kids but not mine).<\/p>\n
Common complaints from development officers are \u201cmy CEO won\u2019t help me out\u201d or \u201cmy board expects me to do it all myself, they won\u2019t offer to make any introductions to their friends and colleagues for me\u201d. Another solution to the nonprofit fundraising dilemma is to ensure that you have created a Tri-Partnership for Philanthropy.<\/p>\n
The Tri-Partnership of Philanthropy is when all three parties understand the basic principles of \u201cwhy people really give money\u201d and the role each is expected to perform to avoid the Bermuda triangle.<\/p>\n