Getting to the Root of Your Fundraising Rut
The unsexy world of systems and operations for nonprofit organizations
Let's kick this series off with a story.
The setting is the monthly board meeting for a small nonprofit (annual budget of around $500K). We’re heading into Q3 and revenue is looking a little shaky.
Board member #1: We did the online raffle last month but that didn’t really do as well as we’d hoped 😒
Board member #2: What about crypto currency? Anyone know how that stuff works? 🤔
Board member #3: I tried becoming a monthly donor but couldn’t find the option on our website 🧐
Executive Director: I’m not sure individual donors is where we want to spend our time. I already spend 8 hours a month doing tax receipts. Grant season is coming up 😳
Everyone:
This will likely sound familiar to anyone who has spent time working or volunteering for a small nonprofit.
It’s frustrating because these organizations are generally pretty amazing. They are full of caring people who want to do good in the world. Unfortunately nothing is free, and doing good things for many people costs money.
So we must fundraise.
But there are a couple of problems:
#1 👉 Many people who work or volunteer in the charitable sector (excluding professional fundraisers, of course) do not actually want to fundraise*
(This first problem is about culture and mindset, and that is something that can be fixed, but it takes time. We can get into that another day.)
#2 👉 Often (even for organizations with multiple fundraisers on staff - I promise you this), there is no functional system for fundraising.
Repeating that: Even for organizations that have more than one person on staff whose job is to raise money do not have a system to raise money.
Why? I’d say the main reason is a lack of understanding of the importance of operations and systems. There is SO much pressure to bring in revenue (an increasing amount every year) that back-end processes are put on the back burner. Indefinitely.
The result of this is that fundraising stagnates. Strategies flop. Talented staff get frustrated and leave.
With that brief intro/story/word of warning, I’d like to welcome you to the first entry in my “Root Systems Series”! Join me please on this journey as we explore the unsexy world of fundraising operations and systems for nonprofit organizations (did I just come up with the title of my future book?).
I tend to use “operations” and “systems” interchangeably, either way this is what I mean:
Any nonprofit tools or strategy where the ultimate outcome goal is to increase external support for the charitable cause.
This is my definition.
In An Executive’s Guide to Fundraising Operations, the only book ever dedicated to fundraising operations (that I know of), Christopher Cannon, CFRE writes:
“Fundraising executives must realize that fundraising operations is a means to an end. Raising more money, supporting mission work, and ensuring the future for the organization are the reasons that data, technology, reporting, processes, and operations team members matter.”
In other words, investing in your systems will:
🌈 Enable you to build better relationships with your donors
🌈 Help you increase your revenue for the mission
🌈 AND set you on a path to raising more money year over year
In my 5-part series, we’ll take a look at the “Root Systems” that every nonprofit (regardless of its size!) must have in order to fundraise successfully:
I bet you’re already excited. I fully understand and own that systems and operations are not everyone’s idea of a good time. BUT think of this like you’re eating that big salad so you can get to the ice cream for dessert. It’s good for you and will help you get to the sweet stuff. A diet solely consisting of ice cream will only leave you with regret and cavities.
I have many of these metaphors up my sleeve. Be prepared.
Coming up next: Case Development - does that count as systems & operations? Not according to any textbook out there but, by the authority of this blog I am officially declaring that IT DOES COUNT. I’m rocking the boat here, people!
PS from the * above - When I say they don’t want to fundraise, I should clarify. Many people working or volunteering for a nonprofit understand that they *should* fundraise, or that they “have to”. This can sometimes stem from a very damaging internal mindset that asking for money is a bad/uncomfortable thing. This mindset can lead to decisions like: only applying for grants or only asking a very select group of individuals for donations once a year. This is a whoooole other (yet related) kettle of fish and something the amazing Cindy Wagman has a whole book about. But I also can’t wait to wade in!
