How to Balance Nonprofit Needs and Resources
Nonprofit organizations invariably suffer from limited resources and a small staff trying to do the work of many. The resulting workload, as well as the personal connection many executives feel toward the group’s mission, can cause staff members to focus their attention within distinct boundaries. True objectivity can be clouded by fierce loyalty and passion for the mission. One of the challenges of nonprofit management is that leaders are acutely aware of their organization’s needs. That is a critical vantage point, but it must be viewed through the lens of what is most attractive to potential supporters. To achieve effective fundraising results, you need to balance nonprofit needs with the available resources.
Every organization should have a list of major improvements they would like to fund. Unfortunately, fundraising based only upon need can often lead to problems. That comprehensive wish list might represent a case for support that is vague, complicated, and unpopular. This can cause organizations to be disconnected from their donors.
A staff person’s personal connection to the cause can lead to assumptions about what level of support others might offer. The length of the wish list and the inflated hopes for tremendous support can combine to create unrealistic goals for campaigns. Organizations must balance what they want against what is popular among their supporters, and fit that into a challenging but realistic goal.
1. Figure Out Needs
The first step in a successful fundraising process is for the organization to develop a list of potential line items for inclusion in the case for support. At this early stage, this can be developed among the organization’s insiders. In fact, well-organized groups often have a synopsis, or list of prioritized needs they might fund with a windfall of money. Awareness of needs is the first step in raising people’s sights to lofty heights!
2. Gain Feedback
Once the organization has assembled its wish list, they must test the popularity of those needs among their best prospective supporters. Such individuals can help the organization prioritize their needs. What better source of feedback about fundraising goals than the very people who will be asked to contribute toward those plans? These people will identify further like-minded people who might also offer support.
3. Draw up a Preliminary Table of Gifts
Clearly determine the possible scope of a campaign. This can be a difficult process for the organization. Certain priorities, if not shared by potential supporters, can be given a lower priority or set aside. There should also be a clear indication of how much the organization might hope to raise through a well-directed capital campaign. Capital campaigns succeed based on a rather small number of very large gifts. As such, a great deal of effort is placed on trying to identify viable prospects for some of those key gifts.
Create a preliminary table of gifts to serve as a powerful visual aid for this process. Next, share this preliminary table of gifts with the potential supporters for a campaign. The goal is not to run a tally sheet. Instead, aim to fill in the key positions on the leadership roster and table of gifts.
For example, an organization may be testing the possibility of raising $5 million. Having three viable prospects for the lead gift of $1 million, and sufficient prospects for each of the gifts at the $500,000 and $250,000 levels, suggests that $5 million may represent a challenging but realistic goal for the campaign.
4. Choose a Professional Study Director
Similarly to in a campaign feasibility study, have this study directed by a professional study director. The addition of a person solely dedicated to this task ensures its quick completion. An outsider can often get people to open up with greater candor. The study director can focus on their commitment to the project, without worrying about their personal feelings or their dedication to the organization’s mission.
Finally, a professional study director brings a great deal of experience. A professional director moves from one study and campaign to the next, honing their specialized skills to a keen edge. Often, it is that professional edge honed through years of experience and combined with strong, fundamental fundraising principles, that makes the difference.
Contact CDS Fundraising for more intensive help with your major gift fundraising, strategic planning, or capital campaign.