A short guide to fundraising for founders and officers
While the big NPOs in America have political, economical, and marketing clout that rivals their “for profit” counterparts, the vast majority of NPOs in the country are small and constantly and need to be constantly searching for new revenue streams. Competition for dollars means survival or bust.This quest for dollars against the big NPOs may seem like a David and Goliath clash, but the small NPOs need to remember all is not lost. Size shouldn’t matter as much as wit, nimbleness, flexibility, and strategy. Think David and Goliath… the smallish David only had a couple of rocks and a sling, while Goliath’s big sword and axe, though potent weapons, had to be used up close and personal to be effective…. We all know how that turned out.
Like David, the nation’s smaller NPOs have to use their vision and on-the ground resources, to gather money in their battle for survival… heck, maybe they might even thrive. Should THRIVE really.
Money talks and walks so let’s look as a near dozen ways to pull in dollars, resources and allies.
- Whether it’s one person, or a group of dudes, your non-profit idea has to have a clear, concise, vision. Maybe only one in a hundred people share your vision. If your idea is compelling, that one person will pitch in; find a thousand people and you have a ten donors. That vision has to be as contagious as a cold. Well, you get the idea: No Vision = Pipe Dream.
- A good Board of Directors initially packed with the visionary founders’ instincts is an excellent place to start building the organization, but as the NPO progresses, a strong Board of Directors dotted with professional experience can help guide the NPO’s long term success. Professionals, meaning lawyers, accountants, technicians, managers, love to add a line on their resumes that says, “Member. Board of Directors” of such and such NPO. These experts probably won’t be giving you the professional services that they would otherwise commercially provide, but their advice, hints, and suggestions are worth their weight in gold. Often times Directors donate and even more often, get their professional colleagues to donate, Quid Pro Quo is a reality in the professional world. Sometimes these Directors will offer advice you don’t like, but “yes sir” on weak and foolish ideas is a formula for failure. In the end, Professionals are always a win-win asset (unless your NPO name is Goliath )
- Grant writing money is the lifeblood of many NPOs and sometimes one of the founders will have to do the heavy lifting in researching and writing the first funding grant effort. But having a professional Grant Writer is a great leap forward, and is probably free to the NPO. How so, you ask? Every Grantor, be it a foundation, university, agency or individual understands that nothing is free and good Grant Writers budget creation costs into the project proposal. At first the NPO may have an option to hire free lancers to do the job but, in the long run, a full time position should be created within the organization. In any case the key founder(s) should not take the job permanently… founders provide the vision, expertise and day-to-day administration of the NPO that keeps it going forward. They have a vested interest in success.
- Social, Professional and Business connections enhance the founders’ ability to tap outside financial resources. These connections alert the NPO to outsiders with money… be they agencies, companies, institutes or people with similar interests and perhaps goals that your NPO can provide. Never underestimate the outside “insider” who knows his or her organization has needs that they can’t internally solve… and you can. Constantly be on the lookout to promote your NPO’s expertise and solution strengths. Keep eyes open and minds alert.
- Cool names and trophies bring in money, I call this whole process the “Challenge Cup” syndrome. There is no end to hobbies, interests, sports and crafts that people endeavor to master every day with a competitive edginess that drives them to excel. Bikers, runners, gardeners, hobbyists, etc really love their particular unpaid (and maybe unrewarded} interests. BUT they love awards that recognize their expertise and sooth the lack of monetary compensation. Organize a charity “Run for the cure of …” and you’ll see runners tap their friends and families for $$$ Per Miles just for a chance at a trophy. “Roses for [whatever]” contest will bring out that vibrant community’s lust for the limelight, again for simple trophies. Almost any hobby, any interest, any competitive activity will provide people with a rationale to part with their money for an award that proves how first rate they are… but more about egos later on. True story: many years ago an NPO I worked with, had a pretty sharp President looking into just the Challenge Cup concept we discussed. He had an even sharper office secretary, just out of high school, who he tasked her with the “coordinator chairman” label and told her to have at it. Within a few years she was running successor events as well as other income generation activities. Millions of dollars later she became corporate secretary, then Vice President and finally President with even more success than her old boss. Never underestimate the ability of a “sharp” employee to take a simple task to new heights. Bring on good employees, trust your people, give them meaningful tasks, and finally give them your vision.
- Speaking of egos, in the last 30 years the “naming rights” gig has risen to new levels. Every sports venue has a name attached to the building, stadium, field… whatever. King Soopers is the “grocery store of the Broncos," Coke “is the drink of the NFL," Pizza Huts is… [you guessed it]. Ordinary people (well, at least ordinary rich people) get into the name game to push their ego. Every hospital has a building name, a plaza name, some research center named after a family or loved one… for a hefty naming fee of course. Most families have less money but the same ego. Why not a worthy NPO naming their headquarters (or rented building) the “XYZ Family Research Center” or somebody funding an NPO internship called the “ABC Memorial Fellowship” for a position you need filled by a super intelligent young student. Egos have no bound when people have money looking for a new home…yours.
- Telemarketing is a dirty word to some people… but it brings in money. Lots of it! Telemarketing firms will (for a giant slice of the pie) call every household and telephone in your area with a heartwarming story about your NPO. They do the work, hire the telemarketers, collect the money and cut you a small share of the proceeds for your NPO’s name and image rights. Say the telemarketers collects $100,000 and refunds back to the NPO a measly $15,000 cut. Seems small, but it is $15,000 just for the use of the NPO’s name and storyline. Think about this: almost every retailer would be happy for a profit of $15,000 for every $100,000 spent on inventory, rents, marketing, employees and other expenses of store operation. Who cares what the telemarketer did with his money? The donor gets the tax break, the IRS is satisfied, society feels good and the NPO has money to carry out its mission.
- Make your Web Site one of your profit centers. A web page tells your story and the services you offer. It often becomes your public face, especially to strangers. Make sure you have an easy touch “Donate Now” button. If readers don’t donate, OK… maybe later. If you don’t ask, the answer is “NO.” A hit means donations go straight to the NPO bottom line
- E-mail is the new postal service. Never talk with anyone without getting an email address. Then use it to promote your ideas, events, news, and name. Facebook is another avenue to get your message out… and don’t forget to ask for a “share” and indicate an address for a direct donation.
- As you go along,think about the idea of having friends, clients and other people bequeathing all, or part, of their estate to your NPO. Use the ego building naming tool noted above. No one gets to take their estate with them. And if you have a worthy NPO their wealth and name lives on in the form of site names, special gifts plaques, etc. Be worthy of that consideration.
- Research projects are another source of funding. No matter what, your NPO does, it has expertise in something. The NPO’s people might do the actual research itself or it might be a cooperating research agency for a university, company, other NPO, or government body. Never give up, and always promote the idea that your NPO is the “Go To Expert.” Money will follow.
Build a “Field of Dreams” that is full of fans ready to help your NPO reach its funding goals and needs. Your vision is the key to success, but be nimble and quick.