fundraising

Board Members: Do Your Nonprofits Know How To Engage Business Donors?

By: Eugene Fram          Free Digital Image

Fund development should be a partnership between board members and CEOs/Development Officers, if the latter is available. However, I have noted that board members don’t take sufficient responsibility to make certain that CEOs and Development directors are well prepared when they approach potential business donors. This, in my view, is the first step in building a relationship fundraising approach.

Many involved with NFP fundraising or management have spent their entire careers in the nonprofit environment, resulting in a gap in communicating with those in the business environment. Some may even privately believe that those in business contribute less significantly to society. * While little can be done about the latter, here is what I think can be done to fill or reduce the unfortunate gap in cultures often found between for-profits and nonprofits, especially when it relates to fund development.

Homework: Development officers, executive directors and others meeting potential business donor have an obligation to know a great deal about their firm. The worst opening for those seeking a business donation or grant is, “Tell me about what XXX produces.” It appears the solicitor has no interest in the environment in which the firm operates. In the Internet age, there is no excuse for such lapses. A Google or LinkedIn search is also critical in preparing to understand each of the persons who might be involved in initial contacts.

With this information, a conversation can be appropriately opened with “How’s business been recently?” It can be followed by a discussion of the donor’s industry trends and challenges, establishing a level of comfort for the donor.

What can your nonprofit do for the donor? Sophisticated development officers have ways of asking this important question. Some examples: (1) In the case of a university, this may range from suggesting capable entry-level employees for the firm to answering personal questions such as guidance on seek a relative’s admission to a selective university. (2) In the case of a nonprofit whose mission to assist qualified persons to find locate new employment, its work can be related to the firm when it has significant layoffs.

A Business Posture: A development officer or executive director needs to convey they have grounding in the business world and its basics, especially to be able to quickly show that their nonprofit is well managed. A recent study of Silicon Valley donors and nonprofit leaders cited an empathy gap between the two.  “Without obvious common ground, it is easy for each group to reduce the other to a stereotype. The wealthy become ‘greedy’  or ‘heartless’, while nonprofit leaders are characterized as ‘bleeding hearts’ who don’t know how to think strategically.  The gap might be the most unspoken as well as the most dangerous.” *

The objective is to develop a continuing conversation with the donor related to his/h business interests and outlook. This offers a connection to show that the nonprofit fulfills a human service, professional or social need. These may include:

• Explaining the scope of the “executive director” title directly or indirectly if the operating CEO does have the well-known title “president/CEO.” The ED title puzzles many in the business environment, since the top operational person in a business firm most often is the “president/CEO.” **
• Showing the nonprofit has a viable mission that is being carefully shepherded and the organization doesn’t engage in mission creep.
• Clarifying that an achievable business plan is available.
• Having well managed internal structure that can achieve impacts for clients. Like the Zuckerberg gift to Newark schools, many business people are aware that process goals can be achieved without having client impacts.

Unfortunately nonprofit organizations have a reputation among many members of the business community as being less effective and efficient. These people may not have encountered many local nonprofit leaders, as I have, with significant management savvy. Consequently, nonprofit representatives, need to be sure they begin their relationships with donors by showing interest in their business, industry, or firm. This then offers the opportunity to demonstrate that the nonprofit’s mission is managerially strong and looks to impacts, not processes, as measures of success.  *https://www.openimpact.io/giving-code/

**https://charitychannel.com/executive-director-vs-president/CEO

 

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Is Your Nonprofit Board Fundraising Committee Strategically Oriented? Reissued & Updated

Is Your Nonprofit Board Fundraising Committee Strategically Oriented?

By Eugene Fram, Professor Emeritus, E. Philip Saunders College of Business, Rochester Institute of Technology

Nonprofit boards have struggled for years to develop effective board fundraising committees and strategies. According to the BoardSource 2012 Governance Index, 46% of nonprofit CEOs gave their boards “D” or “F” grades for their fundraising efforts and fundraising is the lowest ranked of 10 board board responsibilities.

Simone Joyaux in a current NPQ Newswire* raises some pertinent questions related to the “struggle to get the board to carry out its fund development role.” I have listed her questions below in italics. My overall response to her questions is that fundraising committees are not always necessary for effective fund raising! Where the committee is doing a poor job (graded average or below), it is best to cultivate and support a few board members to drive fundraising. After all, not all nonprofit directors have a strategic orientation. (more…)