BEST PRINCIPLED SOLUTIONS LLC

On Fundraising

FUNDRAISING FOR NONPROFITS: ENGAGING THE SERVICES OF A PROFESSIONAL

by Kayte Connelly CCP

Understanding the world of nonprofit management can be a mystifying experience for many well
intended individuals. Most nonprofits form because:

• They have an idea that is charitable – They have gained the privilege and the responsibility
from the IRS to operate an organization for the good of the public, agree to abide by standards
set for that industry and in return are given a "tax exempt" status.
• They agree to be tax exempt because they will perform a charitable purpose in return for the
trust of the public.
• A group or individual of like minded citizens form a board of directors, organize themselves,
develop a mission and set about fundraising for that purpose.
• The board’s primary job is to assure fiduciary responsibility: ethical practices for all operations
of which fundraising and accountability are two primary factors.
• Most believe that because they now have "nonprofit" status, that the money will flow to them,
like manna from heaven through a variety of sources. They have all heard about "grants" and
they have all heard about "sponsorship" opportunities which may now be afforded to them.
• They want to solicit a fundraiser to make rain for a "cut of the take."

What well intended individuals may fail to realize is that similar to your legal services, your accounting
services, your printing services, contractors and other "professionals" that you may engage
professional fundraisers are eerily similar to them: training, years of experience in most cases,
memberships in professional organizations to keep up with trends and subscriptions to key
publications for best practices.

Overhead costs include their own proper licensing which they must secure with the regulatory bodies.
Assuring your registration with all of the regulatory bodies so your nonprofit status will not be revoked
AND more importantly that You will be Successful in your mission are also critical to their
performance. You are engaging them in a huge task - finding the money to help you operate your
buildings, your programs and your services.

It's money that will drive your success. Without the professional and/or the money, the sad truth is you
are going to keep your dream paralyzed.

PHONE 484.769.2327
3406 Keswick Way E-MAIL kayte@bestprincipledsolutions.com
West Chester, PA 19382 WEB SITE bestprincipledsolutions.com

First do no harm; then, mission, mission, mission.

REVIEWING TRENDS

Here are some interesting statistics that were presented recently in a webinar sponsored by the
Philanthropy Journal and delivered by H. King McGlaughon, Jr. J.D. The title was "Key to Success in
the Changing Philanthropy Marketplace" and was a summary of a survey conducted by Dr.
McGlaughon, who is a Managing Executive for Wachovia Wealth Management and the author of the
report.

Let me preface his remarks by stating an astounding figure on which you need to reflect. According to
Guidestar, there are 1.7 million nonprofit organizations in the United States as of 2008. You are now
in that mix. What makes you special?

Here’s his information:

In 2006 Overall Contributions were $295 Billion, including grants. The initial breakdown is:

Type of giving Amount distributed Percentage of overall giving

Individuals $222.9 billion 75.6%

Foundations $36.5 billion 12.4%

Bequests $22.9 billion 7.8%

Corporations $13.77 billion 5.3%

You are now among the 1.7 million nonprofit charitable (charitable refers to those who have attained
or are in the process of attaining their 501(c)(3) status) nonprofits looking for money in this equation.

Here’s where they gave the $295 Billion:

Percentage
Nonprofit Amount
of overall
Industry distributed
giving

$93.18
Religion 35.8%
billion

$38.56
Education 14.8%
billion

$22.54
Health 8.7%
billion

$21.70
Foundations 8.3%
billion

First do no harm; then, mission, mission, mission.

 $16.15
Unallocated 6.2%
billion

Public
$14.03
Society 8.7%
billion
Benefits

Arts,
$13.51
Culture, 5.2%
billion
Humanities

Environment $8.86
3.4%
& Animals billion

International $6.39
2.5%
Affairs billion

Depending on which industry you fall under, you should now be able to determine the importance of
why you need a comprehensive plan of attack for fundraising before you go after it in a piecemeal
fashion. It is not a "cut of the take" initiative.

Just as your lawyer, your designer, your accountant and others with whom you have consulted do not
"take a cut" for their services, it is deemed unethical by the Fundraising profession for anyone to
entertain that concept and they expect to be paid for the value of their services.
(htttp://www.afpnet.org/ethics)

THE NEED TO START STRONG

"We live in an era that demands increased accountability and effectiveness from every organization,"
from Why Nonprofits Fail: Survival of the Smartest by Stephen Block.

In a recent article in the Stanford Social Innovation Review, Paul Shoemaker, President, Social
Venture Partners International, strongly suggested "that one hard lesson learned is great people alone
do not guarantee success. Without sufficient infrastructure and consistent leadership, many nonprofits
do not get – and stay – off the ground.

Member-relationship management systems, measurement tools, workbenches and avoiding

leadership vacuums (attracting both aspirational and operational leaders) are all critical component to
success – especially to those founders who often recede after they complete their initial heavy lifting."

So the need to aspire to be the best, to put yourself out in front of those limited corporate and
foundation grantmakers becomes even more evident. But what’s more compelling is your dependence
on building relationships with individuals.

For those venturing to raise significant dollars in a multifaceted campaign, are you tapping into those
four critical areas listed above or are you going for the supposed gold, and seeking grants only, where
your competition is fierce?

PUTTING PEN TO PAPER

First do no harm; then, mission, mission, mission.

Don’t have time to plan? Don’t expect much return. What are you waiting for?

Identify your potential multiple streams of income. Are you starting with individuals, those whom you
could easily lure into your mission? Do you have that member-relationship management system in
place? How about measurement tools? Have you identified what your tangible resources are?

Have you considered:

• Individual donors, memberships

• Operational, endowment, or capital funding
• Government, foundation, corporate funding
• Special projects, annual appeals
• Grants, collaborations or partnerships
• Sponsorships, special events
• Contract management, profit centers
• Major Gifts, sustaining memberships
• Giving Circles

How about your intangible resources? They become cyclical:

• Community Visibility, allows

• Community Awareness, which manifests
• Community Understanding of Your Mission.
• Volunteer Recruitment, permits
• Board Development (auxiliary boards, committees) who attract
• Donor Cultivation through
• Client/customer/member involvement

Please do NOT forget to include the ever present newcomer e-philanthropy and the effectiveness of
social marketing. NONE of these stand alone; they are all an integrated approach to sustaining your
future.

• How do you plan on measuring your success with your fundraising efforts? Your marketing
efforts?
• How will you measure your programs success?
• How will you identify your organization’s overall successes and more importantly, how will you
celebrate them?

PLANNING MAJOR CAMPAIGNS

Your very first step is your feasibility study. Martin L. Novom, CRFE has stated in The Fundraising
Feasibility Study: It’s Not About the Money:

"You KNOW YOU’RE READY WHEN…

• Your organization is prominently recognized and valued in the community

• Your needs are well planned and presented in a compelling case for support.
• Your feasibility study is completed, reporting favorable results of fundraising potential and
leadership support
• Your donor constituency is well informed, interested, and involved in your organization

First do no harm; then, mission, mission, mission.

 • The board and administration are committed to a successful campaign
• You have sufficient staff and budget resources to lead the campaign over 18 to 24 months
• You have identified, qualified, rated, and screened a strong field of major-gift prospects
• You have the ability to recruit strong volunteer leaders to chair important divisions of your
campaign
• You have allowed adequate time to plan and conduct the campaign."

A compelling case is not an idea; it is not a reference to successful acquisition of the nonprofit
charitable status, it is a well scripted, well rehearsed plea.

The right words delivered at the right time to the right people. It is targeted, purposeful and intentional.

It is clear and precise, with answers to all of the potential questions.

It is timely and time-planned with sufficient time for evaluation and re-shifting of resources if and when
necessary. A feasibility study of some fashion is needed to support any major asking campaign.

STRATEGY FOR SUCCESS

If you want to have a professional well funded organization, you must be professional.

Look at who you are up against. 1.7 million other nonprofits are all after the same money.

If you can’t afford staff, and your volunteer force is drained and running on empty, consider your
options. Engage a professional to assist you with each of these approaches.

It is not easy. Just like George W. Bush often says, "It’s haarrrd work." A good plan and an even
better implementation will afford you the greatest success. Fundraising professionals are there to
assist you every step of the way. Overall, they are NOT nonprofit and expect to be treated just as any
other service you are contracting. Consider the chore you are asking them to perform; consider their
value to you. Consider options. How soon do you want to begin?

Grantwriting, guerilla marketing and copyrighting are available NOW at

Kayte@bestprincipledsolutions.com. .

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First do no harm; then, mission, mission, mission.