When it comes to fundraising, nonprofits have a lot of questions. In a webinar we hosted with nonprofit fundraising expert Vince Connelly of Connelly & Assoc. Fundraising, LLC, we received several questions from nonprofits with concerns about all too common fundraising issues.
Q&A With Fundraising Expert Vince Connelly
Here are just a few of the questions we discussed during the webinar:
Q: Do you have any tips on how my organization can build its list of donors, especially if we haven’t done solicitations in the past?
A: I think both the largest and smallest nonprofit in town should always be asking themselves this question – how can we start building or keep building our list? My advice is to go to the folks who are currently contributing. Go to your board chair, CEO, your organization’s staff and volunteers, and ask these people who they know who might be willing to donate to your nonprofit. Some folks may not be able to give you a single name, but some may give you ten names. The most important thing you can do is ask for that input.
Q: What if a group doesn’t have a specific program to solicit donations? Any suggestions on that?
A: If I’m understanding that correctly, it sounds like you’re trying to raise money for general operating support, which can be a little tougher. One of the reasons capital campaigns (like raising funds for a new turf field for your school or a roof for your church) are so successful is because people like to give, for the most part, to very specific things.
And I know it can be frustrating at times that it’s easier to raise money for a new building when you might actually just need the money for the folks walking in and out the front door. However, the important thing here is that you go to people and talk to them about what your organization is doing day by day. It might not be as sexy or as glamorous as a new building, but it can be very compelling.
Q: We have board members who support our organization through the donation of professional services but are reluctant to get involved in the fundraising side. Is this a potential problem?
A: Yes, this is definitely a problem. Being on a board is an honor and privilege, and it’s all about advancing the mission of the organization. I’m not saying everyone on your board should give X amount of dollars each year because with a good, diverse board, you’re going to have some people who can’t afford to give as much as the person sitting next to them. However, you have to have board members who are going to walk the walk and talk the talk and set that example of donating.
I’ll tell you right now, if you don’t have 100% board participation, and by that I mean, board members giving actual cash, writing checks or pledging funds, it’s going to make it very difficult to solicit money from many foundations and philanthropists. These outside funding sources will ask if 100% of your board is donating; and trust me, they’re going to follow up. While they probably won’t delve as deep to ask how much each individual board member is giving, they are going to want to know how much the board is contributing in total each year. The more impressive that number, the better.
When your board is donating, it shows their investment in your organization, and that your people are really behind your nonprofit. Gifts of services and gifts in-kind are definitely important, but honestly it’s going to be hard to communicate the true value of those gifts to someone who is not an immediate member of your organization.
Q: My organization is looking to start focusing more on individual donors instead of just foundations. What tips do you have?
A: I think part of this goes back to going to your board and stressing how important it is to start bringing in individual support. However, you have to be careful of putting all your eggs in one basket. A lot of smaller organizations have one big foundation donor, government grant or corporate donor, and they fail to get the necessary diversity needed to really secure their funding pool.
I would be very nervous if any organization was primarily funded through one type of funding (foundation, individual, corporate, etc.). Fund availability can change in a heartbeat. Diversifying is the right thing to do in every instance, and it’s very much the right thing to do in a fundraising arena. I would go to your board members and explain the importance of increasing your donor pool. Most likely they are going to understand and can give some names of potential donors who could help.
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