Key pillars of effective fundraising
Effective fundraising is not having a list of potential donors or investors and calling them up hoping one will hear you out. For the organisations that rely on this, the odds are stacked against them. The ripple effect of this is detrimental to the organization as a whole as the funds are not rolling in and the members of staff are fatigued and demoralized from trying so hard yet nothing sticks. This approach of fundraising is what we refer to as “Tin-Cup” fundraising.
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Tin-cup fundraising is a method whereby organisations raise resources from desperation with little regard for their value as an organisation.
Fundraising requires a deliberate and strategic approach; a deep understanding of the organisation’s value proposition and building meaningful relationships with resourcing partners. This approach to fundraising is referred to as Values-Based Fundraising.
The values-based fundraising is an approach that strongly emphasises aligning the values of an organisation with the values of potential donors and supporters. At the core of this approach is that individuals and organisations are more likely to contribute and become actively involved in causes that resonate with their personal values and beliefs.
Embracing a values-based fundraising approach assumes a posture of recognizing one’s organisation as a worthy investment. In the book Beyond Fund Raising by Kay Sprinkel Grace (John Wiley & Sons, Inc. 1997), the author prefaces cultivating relationships, sharing stories, and connecting donors to the mission and purpose of an organisation as the key to successful fundraising. The best-proven approach to this is values-based.
How, then, can organisations shift to a values-based approach in their fundraising practices? In supporting organizations, in partnership with CNK, the Lusoma team was able to derive the following key pillars that organizations should consider towards building a value-based approach to fundraising.
Positioning
To succeed in fundraising, organisations must strategically position themselves. This involves understanding their value proposition - the reason they exist, and their purpose. What is that thing that your organization strives for every day – in bringing about social change? Establishing this empowers an organization to recognize its niche in the growing non-profit space. It is equally important to understand prospective partners, donors, and investors, and establish shared values and interests. Treating external awareness and recognition of the organization is crucial for attracting support.
Principles
"Six Rights" principle in fundraising questions if we have the right ask (prospect), engage the right person, requesting for the right amount for the right project at the right time, in the right way! In addition, it is vital to define what guides the organization in building long-term relationships, expressing gratitude, and maintaining ethical standards.
Skills
Fundraising requires specific skills to achieve organizational goals. Key skills include case development, identification of prospective funders, research to understand donor motivations, strategic planning, cultivation of relationships, effective marketing and communication, stewardship of funds, retention of donors, and monitoring and evaluation of performance.
Fundraising is not a one-person function; it requires organizations to establish teams to support resource mobilization efforts. The board provides oversight, the executive director promotes resource mobilization, and the organization team executes the strategies.
Entrepreneurial mindset, strategizing abilities, networking skills, effective communication, presentation skills, team-building, organization, and monitoring skills are subtle yet essential for team members to have.
Tools
Tools play a crucial role in acquiring donors, building partnerships, establishing systems, and tracking resource growth. Donor cultivation tools focus on understanding the donor interests, building interest, and establishing trust. To effectively track resource growth, organizations should monitor fundraising efforts, record costs and contributions accurately, analyze return on investment, and document resource mobilization strategies. Tools such as donor profiles, donor pipelines, visibility strategies, concept templates, monitoring and tracking tools, and partner/donor interface management systems facilitate these processes.
As author Seth Godin puts it, good fundraising is not done by begging, good fundraising is done by connecting the disconnected. Adopting a values-based approach and implementing the key pillars of effective fundraising positioning, principles, skills and tools, organizations can maximize non-profit impact and achieve sustainable growth.
Lusoma Advisory services provides strategic and design thinking support to institutions interested in growing their value-based fundraising practices. Feel free to get in touch with us here.
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