Fund Raising for Newcomers to Nonprofit Boards

Fund Raising for Newcomers to Nonprofit Boards
by Charles D. Brown
Accomplished Fundraising Professional
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FUND RAISING FOR NEWCOMERS TO NONPROFIT BOARDS

by Charles D. Brown

Newcomers to nonprofit boards may think of development as an obsession with gathering money.
Forget what you’ve been told and what you may have been led to believe. Fund raising is one of the
most natural, enjoyable, satisfying, important activities you can undertake. What could be better than
discovering shared values with another person and offering them an opportunity to act on their values,
specifically in support of your organization’s mission?
This chapter will explore some of the principles that contribute to fund raising success as well as the
basic elements of a professional fundraising program. Gaining a better understanding of these
principles will make it possible for you to help create the environment and programs that will bring
financial security to your organization.
What are these principles of fundraising success? Experience suggests you need three things to
motivate people to give time and financial resources for mission-based activities. They are:

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1. A worthy cause;
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2. A personal commitment to the cause;
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3. A philanthropic mind set.


A Worthy Cause

It is a revered custom in America to support the things that matter to us. We consider it a privilege to
do so, and our government encourages philanthropic activity by granting tax exemption to
organizations that serve the public good. Inviting others to join you in a meaningful activity is
ennobling. In effect, you’re saying, “This organization matters to me, and you matter to me, and I’d
like you to be involved with me in the enterprise.”

If you have agreed to give your time to an organization, you probably already believe it is a worthy
cause. Reflect on why the organization was founded and, specifically, what difference it strives to make
in the world. Is this something that is important to do? Will others find it a meaningful activity? If
you can answer yes to these questions, you have a chance to persuade others they should invest in the
organization’s mission.

Drafting a “case statement” can help members of the board and other leaders organize their thoughts in
formulating a compelling presentation. The case statement is a document that articulates the passion
you and others feel for the organization, and it expresses the dream of a better future through the
efforts of the organization. It also lays out the purposes for which funds are being sought. It is, in
short, the world’s window into the organization on whose board you serve.

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Fund Raising for Newcomers to Nonprofit Boards – Charles D. Brown – © 2005, Al Rights Reserved.
Your Personal Commitment

What is the role of the board member when it comes to fund raising? You may become uncomfortable
when some well-meaning person cites the adage that a board member should “get, give, or get off,”
meaning that the job of a board member is to raise money (get money for the organization, give money
to the organization, or get off the board). It’s not a view without some merit, but it seems to me it’s
looking through the wrong end of the telescope.

Let's look at it the other way around. What is it about the organization’s mission that interests you?
Why have you agreed to be linked with the organization? Think about why you are involved and why
the organization is important to you personally. You need to be able to feel passionately about it if you
expect others to support it. You will want to understand and be able to articulate the organization’s
needs. The personal investment you make in understanding the organization will be important to
prospective donors.

Your own financial commitment to the cause is critical: you need to be able to show that you have,
relative to your means, made a gift as meaningful as the one you are asking others to make. Why is this
so important?

We express our values through the organizations with which we become involved and where we spend
our time. But where we really come face to face with our values is in our checkbooks. Do you act on
your beliefs and values by providing resources to advance them? Are you investing in the programs
you say are important and which you want others to support? I’ve made a meaningful financial
commitment to each organization for which I’ve sought support, including those that have employed
me as a member of staff, and I’ve made a provision for those organizations in my Will. I find it much
easier to ask someone to elevate our cause among his list of philanthropies if I have done so myself.


A Philanthropic Mind Set

The third element essential to fund raising success is the proper mindset. If the cause is important and
if you yourself are committed to it both in terms of financial support and philosophy, you will be able
to make a strong and persuasive case that others will respond to.

John D. Rockefeller Jr. probably received more appeals during his lifetime than any of us. Here’s
what he had to say about giving:

I have been brought up to believe, and the conviction only grows on me, that giving ought to
be entered into in just the same careful way as investing, that giving is investing, and that
it should be tested by the same intelligent standards.

There is no reason to be shy about seeking support for your project or organization. As Rockefeller put
it:
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Fund Raising for Newcomers to Nonprofit Boards – Charles D. Brown – © 2005, Al Rights Reserved.

When a solicitor comes to you and lays on your heart the responsibility that rests so heavily
on his; when his earnestness gives convincing evidence of how seriously interested he is;
when he makes it clear that he knows you are no less anxious to do your duty in the matter
than he is, that you are just as conscientious, that he feels all you need is to realize the
importance of the enterprise and the urgency of the need in order to lead you to do your full
share in meeting it; he has made you his friend and has brought you to think of giving as a
privilege.

Nearly everyone has a basic desire to make a positive difference in the world, and many of us would
like to leave some kind of mark behind. How do you want to be remembered? What kind of mark do
you want to leave behind? You can make a positive difference through support for the organization
you’re involved with, and you’re offering others an opportunity to make a positive difference through
your organization, too.

It is often noted that John Harvard’s body is buried in South Carolina, but his monument is in
Cambridge, Massachusetts. Where will your monument be?


Competition and the Fundraising Climate

Board involvement in fundraising programs has always been important to charitable organizations,
and the importance will only continue to grow, for two reasons: increasing competition for donors’
attention, and increasing demands for evidence of measurable impact.

According to the IRS, there are twice as many charitable organizations today as there were 10 years ago.
It is hardly surprising that 37% of small organizations – those with less than $1 million in charitable
contributions – saw charitable revenue decline in 2004, up from 29% the year before (the 2005
edition of the annual Giving USA survey). Whereas 60 percent of the largest organizations – those
with charitable contributions totaling $20 million or more – reported an increase in giving, fewer than
half of small organizations saw an increase in charitable revenue in 2004.

Large charitable organizations generally have larger, better trained, better resourced development offices
than small organizations, and they have been at the business of donor cultivation longer; thus it makes
sense that large organizations would fare better than small ones in the competition for donor support.
Smaller organizations typically rely to a greater degree on volunteers – including board members – to
secure the resources needed to fulfill their missions.

For several years, Professor Paul C. Light of NYU’s Robert F. Wagner Graduate School of Public
Service has tracked the public’s confidence in charitable organizations. He decries the loss of public
confidence in nonprofits that followed a surge of support in response to the September 11, 2001
terrorist attacks on the World Trade Center. Professor Light’s research shows that only 19 percent of
Americans believe charitable organizations do a very good job of running their programs and services.
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Fund Raising for Newcomers to Nonprofit Boards – Charles D. Brown – © 2005, Al Rights Reserved.
Only 11 percent believe nonprofits spend their money wisely, versus 66% who think they waste a
great deal or a fair amount of money.

Dr. Light prescribes several actions that fall under the purview of the nonprofit board: ensuring that
the organization is making measurable progress toward its objectives; investing in the organization’s
infrastructure to secure the resources needed for making programs and services work effectively; and
reassuring donors and other volunteers that they are actually solving problems.


The Harvest is Plentiful, but the Laborers are Few

People involved with fund raising often want a cookbook solution to the problem. They are bored by
the details; they just want the “recipe” so they can get to it. Regrettably, there’s no sure-fire recipe for
raising money successfully because every organization is different and the milieus within which they
operate are different. Fund raising isn’t like baking a cake, where you add this to that and get a good
result each time. It’s more like painting. Or gardening. Gardening, now there’s a useful metaphor.

The Eastern philosopher Osho has said, "The flower comes by itself." In other words, we can't make a
flower bloom. All we can do – all that is required – is to create the conditions where the flower can
express itself. If philanthropy is an expression of the human spirit, what is required of us is merely to
create the conditions so that expression can manifest. Given the right conditions, the flower will grow;
and given the right conditions, people will want to give time and resources to make a positive
difference in the world. It isn’t up to us to make it happen, but rather to create the conditions so that it
can happen.

The gardener’s work, like that of the development officer, consists largely of planning, preparation,
and cultivation. The time for harvesting the fruits of one’s labor is relatively brief compared to the
larger season, and although the harvest may be the raison d’être for the garden, the gardener focuses
primarily on cultivation. That’s because the role of the gardener is not to produce the fruit, but to
create the conditions that will allow the fruit to emerge and mature.

Planning is the fundamental task for development, just as it is for the gardener. Planning begins with
an assessment of the needs of the community; only then can one determine the proper layout of the
garden whose produce will meet the need. Planning doesn’t end with making a plan, however. Each
day’s assessment of progress and needs in the garden suggests new measures or modifications to the
existing plan.

There are many threats to a successful harvest, among them pests and pestilence and too little – or too
much – of any essential ingredient. But the greatest threat to yield is neglect. We’ve all seen what
happens when someone who is ignored by an organization for years is suddenly asked to make a larger
gift than he has ever contemplated. Nurturing is most effective when it begins early and continues
without significant interruption.

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Fund Raising for Newcomers to Nonprofit Boards – Charles D. Brown – © 2005, Al Rights Reserved.
One cultivates, and sows, and cultivates, and nurtures, and cultivates some more, bringing all one’s
skill and talent to the purpose at hand. And, believer or not, one prays. This is not a cheap play for
insurance; it is an act beyond rationality, centered in the knowledge that our work binds us to
something larger than ourselves and gives meaning to our lives. Having done all one can do, one feels
compelled to reach out beyond human endeavor, to invoke the mysteries of creation and life.

After all one’s efforts – and with luck – the harvest will vindicate the effort required to produce it. The
time for harvest soon passes, however, and the yield is measured against expectation. If it is
particularly bountiful, jubilation; if not, disappointment. In either case, work begins anew, for one
never finishes in the garden.


Getting Started

An old saying, oft repeated, is, “People give to people.” It’s a reflection of the fact that the best
development efforts are relational, not transactional. What is important is giving people the affiliation
they desire: in other words, treating people the way they want to be treated. If this is done, the dollars
will take care of themselves. In fact, if this is done, you couldn't stop the dollars from coming in.

A common mistake, however, is treating people the way WE want to be treated. It’s not the same as
treating them the way THEY want to be treated. Authors Penelope Burk (Donor Centered Fundraising)
and Ken Burnett (Relationship Fundraising) have transformed the way we think about engaging
individuals. Donor-centered fundraising isn't an option: it is the only way to ensure success for your
fundraising programs.

How do people want to be treated? The simplest way to find out is to ask them. But until you’re able
to do that, here’s a guideline: People want to feel known, welcome, and important. And they also want
to believe they are able to make a positive difference in support of activities that matter.

Let’s examine some basic strategies for nurturing an individual from un-involvement through
support; then you can begin to think more specifically about creating a program that will make sense
for your organization.

Much has been written about the “solicitation cycle” or “cultivation cycle,” and people who write about
fund raising emphasize different components. For our purposes, the basic components are these:
identification, information, cultivation, involvement, solicitation, and stewardship. Some would expand
the list and include activities like the rating of a prospect’s capacity to give, but it is preferable to look
at the relationship from the point of view of the prospective donor rather than that of the organization.
Like a good gardener, we’ll start with recognizing the need to develop a plan: in this case, a fund
raising plan.



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Fund Raising for Newcomers to Nonprofit Boards – Charles D. Brown – © 2005, Al Rights Reserved.

Identification

It’s important, first, to be sure of one’s target audience: Who can give to your organization? Who will?

Support could come from individuals, foundations, corporations, and various government agencies.
According to C. Ray Clements, chair of the American Association of Fundraising Counsel, living
individuals account for three-quarters of total charitable giving in the U.S. and have done so since
1956. Of the $249 billion given in 2004, 75.6% ($188 billion) came from living individuals; so it
makes sense to think individuals will be your best supporters.

As for likely supporters, whom do you know? Start with your friends – and friends of friends. Assume
that people are already supporting worthwhile activities and that if you suggested they join you in
supporting a cause that matters you wouldn’t be asking them to do anything they aren’t already
happily doing. Wouldn’t they like to know about an organization in which you’re so interested that
you give your time – that most precious asset – as well as money?

Other prospective supporters might be found on donor lists of organizations with missions similar to
yours, and it may be that you, your fellow board members, or friends have access to these individuals.
You can get donor lists from annual reports of organizations, from playbills, and from fund raising
auctions and galas for nearly any charity in your community merely by asking.

You might consider organizing a “Rolodex Meeting” for your board, where everyone brings his or her
marketing list, holiday card list, or alumni list for extending the organization's outreach.

The individuals your organization serves (and their families and friends) are obvious potential
supporters. People who sell to your constituents should also be added to the list. This is particularly
important for disease-related charities and hospitals.

There are, in fact, a huge number of prospects out there. I thought of saying that everyone in America
is a potential donor for you; it’s just that some are more likely to give than others. In fact, we live in a
global economy, and we are a nation of immigrants. Your parent company in Bonn or your great uncle
in Bombay may also be interested in your organization’s mission.

Aim to make an incremental improvement in your list of possible supporters. See if you can add 100
names to your organization's mailing list, to start. Or see if you can find a way to double the list. At
the same time you are expanding your list of prospects, you will be trying to improve the ratio of
prospects who become donors; and once they become donors, you can focus on getting them to give
again, or to upgrade. If you aim for incremental improvement in each area of your fund raising effort,
you can keep the tasks manageable and still make real improvement.

Most foundations give within a fairly narrowly described area, either geographically or
programmatically. You may be able to locate a foundation that provides support to organizations in
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your state with missions like yours, and it would be worth checking this out. Foundations generally
give start-up money for new organizations, programs, or initiatives, as opposed to general operating
support. They are trying to maximize the impact of the funding they give; that is why they
circumscribe support and why they are generally loath to give to operations. They want to prime the
pump, as it were, but then they leave it to others to keep funds flowing. As you can imagine, funders
receive requests for many more projects than they could possibly undertake, even if each one were
deemed critical.

One of the best resources for information on grantmakers’ interests and requirements for submitting
requests is the Foundation Directory. It is available at many libraries and can be purchased directly
from The Foundation Center, 79 Fifth Avenue, New York, NY 10003-3076 (see their web site at
www.fdncenter.org).

Before approaching any grantmakers, do your homework to ascertain their current interest and an
appropriate level of support. Recognize that it may be easier to get a larger grant the second time
around if you apply for a smaller amount and make something to show of their investment. Take note
of the funder’s interests, and try to find a way to match their interests with your programs.

For example, if a foundation is keen on public/private partnerships, explore whether there is a
possibility to affiliate with a community organization or hospital or public school to provide a joint
venture that would appeal to the funder.

Having identified a target constituency, how do you approach them to begin the process of education
and involvement?


Information

Most charitable organizations have developed a variety of ways to inform their constituencies,
including Newsletters, Direct Mail, the organization's Web site, personal contact, and events. The
best organizations are always looking to expand their reach, and sharing news of the organization's
programs and services can lead to expanding the base of support.

Religious institutions, retirement communities, service clubs and business clubs are possible places to
seek new supporters. Consider corporations, too: a fine-arts or performing arts organization might be
able to do a presentation in the atrium of a corporate office building and thereby gain valuable
exposure.

Most churches and synagogues have outreach programs, and it may be that they would be willing to
sponsor support for your organization. Perhaps they could donate space, or perhaps they would allow
you to make a presentation to their congregations for a special offering, or perhaps they would allow a
member of the congregation (a person also involved with your organization) to talk about the work of
the organization and ask those interested to identify themselves.
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Sororities, Fraternities, and Service Clubs like Kiwanis and Rotary (and other business luncheon
clubs) often have a speakers program, and their program chairmen are always looking for interesting
presentations.

The point is to seek out opportunities to share your story and to invite people to become interested.

Three Steps to Gaining a Platform for Sharing Your Story
⋅ 1. Call to see if the club or organization has a speakers program, and obtain the name of
the program chairman.
⋅ 2. Ask friends and board members of your organization whether they know a member
who could propose to the program chairman that your organization be invited to make a
presentation. If it isn’t possible to make a presentation, perhaps they would be willing to
share your newsletter with their membership. If you have no contacts within the club,
don’t hesitate to call directly. An introduction is useful, but not necessary.

⋅ 3. Ask the club sponsor or program chairman to make a pitch for support – either to
those present or to the club’s board – as part of their outreach/ community service effort.

By sharing your mission with service-oriented individuals, you have a good chance to build a network
of interested volunteers and donors.


Cultivation

Cultivation is the essence of building a personal relationship with an individual. As such, it is the
most important part of the process of securing support for your organization. Kirk Unruh, director of
donor relations at Princeton University, says, “Cultivation is not an event or even a series of unrelated
events; cultivation is a process.”

The process has to do with developing a special relationship. Josiah Bunting III, president of the
Harry Frank Guggenheim Foundation, puts it this way:

I mean “cultivation” that is not sporadic and haphazard, which is not fundamentally a matter
of “having a drink” or “having dinner with” a donor, but which is a matter of becoming his
friend, and exciting and sustaining his interest in some aspect of our work and needs here. It
is a matter of earning trust, yes; but it is also a matter of regular, thoughtful communication
about matters that have nothing ostensibly to do with “fund-raising;” it is a matter of
discovering the donor’s interest in certain things intellectual or musical or scientific or
pedagogical or athletic, and basing at least part of a relationship on that interest.

Thoughtful communication is directly related to making people feel known, welcome, and important.

One way to make someone feel known is to add a personal note to a letter or invitation that is being
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sent to her. Another way is to clip an article from a magazine or newspaper about a topic of interest to
her and to send it to her with a note (“knowing of your interest in Spanish cuisine, I saved this
restaurant review for you”). If the article bears on your organization, all the better; but it isn’t necessary
in order to make someone feel as though you took the trouble to think of what she would find
interesting and then took the time to tell her.

When you encounter an individual at one of your events – whether it is a dinner or a sports outing or
a reception – you can tell him how wonderful it is to see him, and make sure he is introduced to
several other people so that he can carry on a conversation comfortably. We’ve all seen people at
benefits for which they’ve paid a hefty admission fee, who don’t seem to know anyone; no one seems
to notice whether they stay or leave early. How much better it would be if you or another board
member were to stride up to the person and say, “John, I’m so glad you could join us this evening.
I’ve been looking forward to having a chance to get to know you better, and I’d like to introduce you to
some of our friends.” That’s how you can make someone feel welcome.

You make a person feel important simply by valuing her interest and showing her she matters to your
organization. You look for opportunities to involve her with projects, and you seek her counsel as
plans are being made for new activities. In short, you make her feel important by treating her the way
she wants to be treated.

Soon after I returned to my alma mater as a staff member in the annual giving office, I attended a
lecture on Shakespeare given by my favorite English professor. When I encountered my colleague Jerry
Horton on the way back to the office, I was beaming. He asked what I was up to, and I told him I’d
just been to a fabulous lecture given by a former professor. I said it made me feel like I was in college
again, with a world of possibilities before me. The experience was tremendously inspiring. Jerry asked
me if I’d told the professor or written him a note to let him know how much the lecture had meant to
me. The thought hadn’t occurred to me, and I said, “No. Should I?” Jerry responded, “Don’t you
think he’d like to know?”

It doesn’t do any good to remember that you left the oven on when you headed out for vacation if you
don’t go back to turn it off. Likewise, there’s little virtue that comes of thinking of someone if you
don’t let her know. You don’t have to write a long letter of deathless prose or even trouble to make a
phone call. A brief note will suffice to let the person know you’re thinking of her and, in turn, to put
yourself in her thoughts.

⋅ “Jane, I was reading through my journal on vacation and came across your name, recalling
our last visit, and I wanted to check in to see how you’re getting along.”
⋅ “Ward, in conducting a reference check the other day, I spoke to a man named Flanders
who used to work for your company. He remembered you and was hopeful you would
remember him.”
⋅ “Frank – we’ve been thinking about how thoughtful you were to phone the other day to
say hello…”

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