Nonprofit Management & Fundraising Tips

Fund raising is essential for the survival of a nonprofit agency. It is the process of requesting contributions from individuals, foundations, corporations and government sources. Part of fund raising is developing a plan that includes projecting the needs of the organization and selecting strategies for meeting financial goals. The board of directors (the nonprofit's leaders) and the development director, if there is one, are responsible for the plan, which may be carried out by staff, board members and volunteers.

1. Planning
   • The fund-raising plan clarifies the roles and goals of your fund-raising strategy and includes action steps on how to get there. The plan is based on past performance, but targets the future. Each member of the fund-raising team needs to know exactly what is expected of him and the time frame allotted for completion of his particular task. Each team member, as well as board members and volunteers, should be able to clearly state the mission of your organization in two sentences.
     
   Why People Give
   • Individuals give more for private benefits than public benefits. In other words, believing in the work of the nonprofit, trusting the organization and other personal motivators are more significant than the output of the organization. Businesses may be more motivated by recognition for their donation by the community, which will result in positive public relations for the business.
     
   Donor Appreciation
   • The best source of contributions is the people who have already given.  Thus, it is important to cultivate good donor relations by thanking donors and maintaining contact with them throughout the year. Simultaneously, new donors should be cultivated through press releases, public speaking and networking with current donors. Donor management includes prompt thank-you cards, receipts for tax purposes and maintenance of donor databases with all contact information.
     
   Crisis Fund Raising
   • Crisis fund raising is not the best method, but may become necessary on occasion. First contact regular supporters to inform them of the need. Consider running a mini-campaign. That is, form a fund-raising committee, hold a kickoff and implement the committee's plan, carefully tracking progress toward the financial goal. Regular events can be pre-sold by contacting potential donors and offering to list them in a program as "early sponsors." Ask major supporters to host small fund-raising events on your behalf. People often want to help and just need some guidance on what to do.
     
   Considerations
   • Part of nonprofit management related to fund raising is cutting costs. Donors want to be sure that their contributions are spent without waste. Also consider that every dollar saved is a dollar that does not have to be raised.