The Fundraising Boogie Man
I was just at a meeting full of small and medium sized nonprofits. We were talking about fundraising; there must have been 250 of us in the room. Development Officers, ED’s and Board Members. We had a distinguished and famous speaker talking about the essentials of fundraising.
When the Q&A came up, being the annoying person I am, I asked about the role of Prospect Research. Nobody there knew what I was talking about. It was like I had spoken Swahili. I explained to the crowd what a Prospect Researcher does, that local university’s and Museum had great ones, that they were essential doing fundraising, they helped you identify your prospects and donors.
I am not sure I reached anyone that day. Because the concept I raised, that one would research prospects and not just ask your friends for money was so alien that I just don’t think anyone understood? Forgive my pessimism, but it never ceases to amaze me the gulf between the for profit world and nonprofit world when it comes to prospect research. None of the folks in that room are hermits, most are successful. When we do anything, we do research. If we are a lawyer we look for precedents, if we are a doctor we look for the right treatments and cures, if we are an accountant we search FASB regulations and IRS rules. Right? So if you’re fundraising why is research so alien and odd? We should want to know EXACTLY where and who we should be approaching for money and how.
From my experience most small nonprofits are foundation dependent. Perhaps that’s the issue? Foundation research with its challenges is less complicated than researching individual personal philanthropy and wealth.
The essential problem here is that one often has people with no Development experience making decisions about development. Plus people are terrified of fundraising, the way we were scared of the Boogie Man when we were kids. I am a Mexican American so we had “La Llorna”… to scare potentially bad kids. She is much scarier than the Boogie man, but you get the idea.
An executive who knows a little about fundraising and loathes the idea of fundraising, especially individual major giving is a deadly combination. That person will insure that a small and underfunded nonprofit stays that way. I would ask these folks to examine themselves and ask if themselves if they fit that description? If you hate fundraising and you run a nonprofit, either learn to love it or find another line of work. Not tolerate it, not put up with it…love it. There is a lot of love in fundraising. If you love what your organization does then don’t settle for mediocrity that is allowed by your mediocre funding!
To many folks in the small/medium nonprofit world when you say “fundraising” they mean…write a grant. These days there is a big hype about “crowd funding”. It seems push button and disassociated from actually asking another human being for money. People seize on it because they really, really don’t want to ask anyone for money.
But that’s the essential problem, our boogie man, fundraising. Why are we terrorized by the thought of soliciting for money? Of course there is much, much more involved in fundraising. The most common myth about fundraising is that of the “arm twister”. That fundraising is all about asking a lot of people for money. Wrong.
Professional fundraisers believe in educating and potential donor till they are ready to be asked. It’s part of the crucial “Cycle of Fundraising”. That cycle is:
Identification, Qualification, Cultivation, Solicitation, Stewardship
A huge missing factor here is Prospect Research or” Identification”. Too many small and medium nonprofits rely on self-identified donors and friends. Let me give you a fictional example.
If you run a Women’s Shelter and you run around asking your friends for money, or focus on who is already giving you money you might keep the lights on. Your friends aren’t going to say no to you. But you’re never going to raise a lot of money to grow. We are talking mainly here about growing your fundraising.
But imagine you have a professional Prospect Researcher tell you exactly who in your town is wealthy and philanthropic and deeply cares about women’s issues in your town? This Prospect Researcher hands you a list of hundreds of names, phone numbers, email addresses and other information on them. You find out that one of the most powerful and wealthiest women in town was a domestic violence survivor and liberated herself! Wow. We call this consultant a Freelance Prospect Researcher (there is a list of them on my website). Large organizations, especially universities have full time professional Prospect Researchers, teams of them.
Now with your list in hand you’re approaching people for an qualification meeting that are already likely to love what your organization does! Not ice cold. And you’re approaching people that can write $10,000 checks not $100 checks. Plus you make keep your friends as a bonus!
Your job now is to get qualification meetings. To “qualify” them and see if they are interested in your specific organization. They may be thrilled or they may be not interested. But the sub group of folks who are interested your next step is to educate them.
We call this “cultivation”. In this case you would take them to your shelter, have them meet and talk with your clients, maybe they would have lunch with a Board Member? Maybe you would invite them to an event? What’s important is to do two things….get to their heart and mind. Tell them your stories and show them you’re well run internally. A good investment.
NOW, once you have identified, qualified and cultivated. They are literally ready and waiting to be asked for a gift.
This is the reality vs the myth of the need for “arm twisting” friends. Cold asking strangers uncomfortably for money. That’s nonsense. That’s like the boogie man, scary but a myth. Real fundraising takes those steps I mentioned before.
Now you’re raising hundreds of thousands of dollars, not hundreds. Now you can hire that Counselor you needed and expand transportation services. Now you’re having impact. That’s why fundraising is beautiful.
The last step is Stewardship. Taking care of your donors, keeping them informed, letting them know what their money is doing. That way a happy donor is an easy renewal. That way they will give more next year !
You can see the often forgotten but pivotal role Prospect Research/Identification plays here. It’s a prerequisite to great fundraising, not a luxury. For all nonprofits regardless of size. So hire a Prospect Researcher, full time, part time or freelance. You can find a Freelancer list on my website or contact your local APRA Chapter. If you don’t know where to start email me and I will help.
That’s my 12 cent tutorial on major giving. I give it because I want to put the lights on when it comes to fundraising fear. There is no fundraising boogie man. It’s not awful, it’s wonderful. Almost anyone can do it. End the fear, start the engines on your nonprofits and do the most you can for the great causes you fight for. Let’s raise some serious game changing money!
www.armandozumaya.com
When the Q&A came up, being the annoying person I am, I asked about the role of Prospect Research. Nobody there knew what I was talking about. It was like I had spoken Swahili. I explained to the crowd what a Prospect Researcher does, that local university’s and Museum had great ones, that they were essential doing fundraising, they helped you identify your prospects and donors.
I am not sure I reached anyone that day. Because the concept I raised, that one would research prospects and not just ask your friends for money was so alien that I just don’t think anyone understood? Forgive my pessimism, but it never ceases to amaze me the gulf between the for profit world and nonprofit world when it comes to prospect research. None of the folks in that room are hermits, most are successful. When we do anything, we do research. If we are a lawyer we look for precedents, if we are a doctor we look for the right treatments and cures, if we are an accountant we search FASB regulations and IRS rules. Right? So if you’re fundraising why is research so alien and odd? We should want to know EXACTLY where and who we should be approaching for money and how.
From my experience most small nonprofits are foundation dependent. Perhaps that’s the issue? Foundation research with its challenges is less complicated than researching individual personal philanthropy and wealth.
The essential problem here is that one often has people with no Development experience making decisions about development. Plus people are terrified of fundraising, the way we were scared of the Boogie Man when we were kids. I am a Mexican American so we had “La Llorna”… to scare potentially bad kids. She is much scarier than the Boogie man, but you get the idea.
An executive who knows a little about fundraising and loathes the idea of fundraising, especially individual major giving is a deadly combination. That person will insure that a small and underfunded nonprofit stays that way. I would ask these folks to examine themselves and ask if themselves if they fit that description? If you hate fundraising and you run a nonprofit, either learn to love it or find another line of work. Not tolerate it, not put up with it…love it. There is a lot of love in fundraising. If you love what your organization does then don’t settle for mediocrity that is allowed by your mediocre funding!
To many folks in the small/medium nonprofit world when you say “fundraising” they mean…write a grant. These days there is a big hype about “crowd funding”. It seems push button and disassociated from actually asking another human being for money. People seize on it because they really, really don’t want to ask anyone for money.
But that’s the essential problem, our boogie man, fundraising. Why are we terrorized by the thought of soliciting for money? Of course there is much, much more involved in fundraising. The most common myth about fundraising is that of the “arm twister”. That fundraising is all about asking a lot of people for money. Wrong.
Professional fundraisers believe in educating and potential donor till they are ready to be asked. It’s part of the crucial “Cycle of Fundraising”. That cycle is:
Identification, Qualification, Cultivation, Solicitation, Stewardship
A huge missing factor here is Prospect Research or” Identification”. Too many small and medium nonprofits rely on self-identified donors and friends. Let me give you a fictional example.
If you run a Women’s Shelter and you run around asking your friends for money, or focus on who is already giving you money you might keep the lights on. Your friends aren’t going to say no to you. But you’re never going to raise a lot of money to grow. We are talking mainly here about growing your fundraising.
But imagine you have a professional Prospect Researcher tell you exactly who in your town is wealthy and philanthropic and deeply cares about women’s issues in your town? This Prospect Researcher hands you a list of hundreds of names, phone numbers, email addresses and other information on them. You find out that one of the most powerful and wealthiest women in town was a domestic violence survivor and liberated herself! Wow. We call this consultant a Freelance Prospect Researcher (there is a list of them on my website). Large organizations, especially universities have full time professional Prospect Researchers, teams of them.
Now with your list in hand you’re approaching people for an qualification meeting that are already likely to love what your organization does! Not ice cold. And you’re approaching people that can write $10,000 checks not $100 checks. Plus you make keep your friends as a bonus!
Your job now is to get qualification meetings. To “qualify” them and see if they are interested in your specific organization. They may be thrilled or they may be not interested. But the sub group of folks who are interested your next step is to educate them.
We call this “cultivation”. In this case you would take them to your shelter, have them meet and talk with your clients, maybe they would have lunch with a Board Member? Maybe you would invite them to an event? What’s important is to do two things….get to their heart and mind. Tell them your stories and show them you’re well run internally. A good investment.
NOW, once you have identified, qualified and cultivated. They are literally ready and waiting to be asked for a gift.
This is the reality vs the myth of the need for “arm twisting” friends. Cold asking strangers uncomfortably for money. That’s nonsense. That’s like the boogie man, scary but a myth. Real fundraising takes those steps I mentioned before.
Now you’re raising hundreds of thousands of dollars, not hundreds. Now you can hire that Counselor you needed and expand transportation services. Now you’re having impact. That’s why fundraising is beautiful.
The last step is Stewardship. Taking care of your donors, keeping them informed, letting them know what their money is doing. That way a happy donor is an easy renewal. That way they will give more next year !
You can see the often forgotten but pivotal role Prospect Research/Identification plays here. It’s a prerequisite to great fundraising, not a luxury. For all nonprofits regardless of size. So hire a Prospect Researcher, full time, part time or freelance. You can find a Freelancer list on my website or contact your local APRA Chapter. If you don’t know where to start email me and I will help.
That’s my 12 cent tutorial on major giving. I give it because I want to put the lights on when it comes to fundraising fear. There is no fundraising boogie man. It’s not awful, it’s wonderful. Almost anyone can do it. End the fear, start the engines on your nonprofits and do the most you can for the great causes you fight for. Let’s raise some serious game changing money!
www.armandozumaya.com