My Nonprofit Mantra: Spend Money to Raise Money
“You have to spend money to make money” is a common phrase in the business world. The same rings true in the nonprofit sector. Yet, many nonprofit leaders don’t see it that way.
Why is there such a different perception among nonprofit teams? It’s a topic I recently spoke at length about, with Teresa Huff on her Grant Writing Simplified podcast. Teresa encounters many of the same challenges I see in the nonprofit sector, so she was the perfect person to dive into this conversation with.
The Numbers Speak Volumes
During our discussion, what rose to the surface for both of us is that many donors don’t know the financial story of the organization. Equally debilitating is that many internal nonprofit team members are also in the dark about the organization’s true financial need. It’s no wonder there’s a hesitation to “spend money” if there's a lack of understanding surrounding the financial strategic plan of the organization.
Which brings me to another factor: transparency. There has to be an openness and eagerness to discuss and present financials—among internal teams, board members, and donors. Remember, a lot of investment-level donors are CEOs, COOs, and CFOs in their “real life.” They want to understand how the numbers shake out; it’s what they do on a daily basis. They also know numbers don’t lie. When fundraising teams speak to donors in their own language, with transparency and trust as a foundation, they are leading those donors to give their best gift.
The life-changing stories, evidence the mission is working, is only a portion of the fundraising strategy. We have to be better about telling the financial story.
Invest in Your People, So You Get Investment-Level Donors
So, how do we help the individuals doing the fundraising to be able to have those financial conversations? By investing in them. Spending the money for professional development—so you know you’re giving your people the tools they need to have the confidence they need to have game-changing financial discussions.
Those are the types of interactions that put nonprofits on another level; that allow them to break ceilings. Most of all, it attracts investment-level donors because they are mission aligned. They “get it” on a level that then inspires them to talk to their friends and colleagues about the mission.
It’s also important to make sure everyone within the nonprofit organization is given the opportunity to uplevel their education, knowledge base, and skill sets surrounding fundraising. One related question Teresa asked me (that I don’t get asked often in interviews) was how organizations can effectively address turnover. What happens when one nonprofit leader or team member has built a strong relationship with a donor and then, “poof,” they’ve moved onto another job? It’s a really relevant question, given we are still in the wake of The Great Resignation.
Fundraisers should be having regular one-to-one conversations with donors and potential donors. That doesn’t mean they are the only person invested in that relationship. I always advocate for a shared portfolio, where staff on all levels have the opportunity and confidence to engage with donors—whether that’s the executive director, development director, or other staff member. As they say, “all hands on deck.”
Spend Money, and the Spoils Will Follow
Of course, one of the sticking points in fundraising (and all of business, to be honest) is patience. It may take anywhere from six months to two years to lead a donor to their best gift. From my perspective, as long as everyone in the organization—from an intern staff member to the executive director to the board—is marching to the same beat of the organization’s need, patience comes naturally.
You’re doing the work, and you’re doing it in the most effective and efficient way possible. Does that mean spending money? Yes, but I promise you: When done strategically, spending money will raise money… a lot of it.
I invite you to listen to Teresa and my conversation, as it really does capture what nonprofits need to be doing in this era to be successful in their efforts.
And, if you think your nonprofit could benefit from hearing more about my approach to fundraising and nonprofit success, I’m happy to have a conversation about your goals. In the meantime, here are some resources that might be of help.
Whenever you’re ready, here are THREE things you can do next:
👣 Follow me on LinkedIn where I give away insider info every week - the same lessons I teach my clients about attracting larger gen-ops dollars and adding 7-figures + to their bottom line.
🍎 Read my GUIDE! THE TRUTH ABOUT GIVE/GETS :: Top 5 Reasons Your Board’s Give/Get Is Leaving Thousands (Sometimes Millions) on the Table. See how limiting board members to the Give/Get model restricts gifts in so many ways and keeps your staff from reaching their full fundraising potential. Here to get it.
📈 Work with me to fund your organization’s Strategic Plan and scale your budget by 2 - 5X // If you’re a business-minded CEO already raising MILLIONS but still need more general-operating revenue from individuals and family foundations to invest in growth, you can apply to work with me here.
