I've heard it said that fund raising is both an art and a science. I'd like to discuss the science side of fund raising with you, or, more appropriately, Capacity Building for Fundraising...It's Never Too Soon.
Why capacity building? It's simple. Would you build a house without a foundation? Probably not, since you wouldn't have anything to build upon. The same holds true for your fundraising program. If you don't have the basics in place, you have nothing to build your program on, and chances are you won't be raising the funds you need.
Step I - Why Do We Need Fundraising Software?
In 2007, 82% of all donations (or more than $252 billion dollars) came from INDIVIDUALS! If 1 to 2% of your total giving came from individuals, you are missing the boat! People give to people. If you don't have the relationships with your donors and know how to cultivate them or what their hot buttons are, your fundraising program will stagnate. If you continue to do what you have always done, you will continue to get what you've always gotten.
By investing in a fundraising software program that provides your organization with the ability to track donors and their gifts, provide a mechanism to generate acknowledgement letters for their gifts, and compile reports you need to show where your program is going, you have won half the battle.
What kind of software do you need? I can't answer that. Only you can decide what type of software will meet your needs. Programs that range from Cadillac to Ford and everything in between are available. The research on what type will work best is up to you...I'm just here to tell you that you need it.
One aside: no matter what program you choose, you need to budget for training and annual maintenance fees. The training is a given and the maintenance fees will buy you any needed tech support and any upgrades that come out during the year. Once you are trained, I HIGHLY recommend that you write policies and procedures for data entry and information access and retrieval. This prevents the old adage "garbage in-garbage out" from applying to your database.
When I started at my current organization, we had approx 5,000 names in the database. We're now up to approx. 9,000 and donations from our annual spring appeal have increased by at least $10 k each year over the previous year.
The second topic I'd like to discuss has to do with a formalized fundraising or development program. Each December I compile a Development Plan that details what types of fundraising we will be implementing for the next year. It includes ongoing and special programs or events. A part of the plan is the Development budget. We recently went to a zero-based budget, so that everything the organization spends has to be raised; either by fundraising, through program fees, or our United Way/CFC allocation. This lets me know clearly how many unrestricted and restricted dollars I need to raise for the next year. It isn't easy, but I always know where I stand.
By formalizing your Development Plan and program, you enhance your organization's reputation and ability to raise more money. Your donors will recognize that you are taking fundraising seriously and have advanced to the next phase in your organization's level of maturity.
The Third area to discuss is When Should we Hire a Development Professional?
Chances are if you're asking yourselves this question, you should have already hired one. A development professional moves your organization up to the next level. I looked online and could only find one article that addressed this question. A man named Tony Poderis who has been published numerous times by the Association of Fundraising Professionals (AFP) wrote it. Tony asks a number of extremely insightful questions that an organization must ask itself to help them decide if the time is right. Click here for the article. Speaking of AFP, I also strongly recommend that whoever has fundraising responsibility in your organization, become a member. There are varying levels of membership, depending on your experience, that make it affordable to start.
The bottom line is: commit to the resources - whether it's the Director or software. You'll reap the rewards in the long run.
Capacity Building for Fundraising - Discussion Points
Fundraising is more than just asking folks for money. It is about relationships. Repeatedly we hear that "People don't give to organizations, they give to people." Therefore, the relationships you build with your donors are the cornerstones of your development program. In 2007, 82% of all donations came from individuals (including bequests), followed by 13% from foundations, and 8% from corporations. Why then, do we put all of our resources into writing grants when we should be cultivating those individual relationships?
