Making the Case for an Investment in Fundraising

I went to a presentation the other day about how to persuade your executive director and board to invest more resources in fundraising.  It made me reflect on my own experience over the years.  It’s a tricky thing, when you work for a small nonprofit with a very tight budget, to make the case for spending more on anything.  Especially when the last couple months of the fiscal year have your finance director biting her nails and reporting daily to the executive director and board chair.

But I want you to set aside the organization’s needs for a moment and think about YOUR needs.  What would it take for you to be more successful in your current job?  What would make you want to stay in your position for another year?  For another five years?  Make a list.  Seriously. 

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Now divide your list into the things that cost money (professional development, software) and the things that don’t (culture changes, a voice in the budget process).  Further divide the list of things that cost money into one-time costs and ongoing costs.  Now you have a solid wish list and vision for your department.  Is it something you could go to your executive director with?  Maybe not yet.  Although there is some value in investing him or her in your thought process.

If you are fortunate enough to work for a nonprofit that has a steady stream of earned income, or one that consistently ends the year with a surplus, lucky you.  This blog is not for you.  One of the panelists the other day said she convinced her executive director and board to pull money out of their endowment to invest in fundraising and infrastructure improvements.  That’s all very well and good, if you have a pool of unrestricted funds sitting around in your endowment, and a board that’s willing to spend them, but not so practical for someone from a small organization with a shoestring budget.

If you’re at a nonprofit where the director of development has changed every year or two, there is a strong case to be made for some strategic investment to stop that cycle.  Some of the factors that influence short development tenures can be solved through the budget process – professional development for yourself and your development colleagues (if you’re lucky enough to have any), basic infrastructure improvements such as a written fundraising plan and database.  Others require culture shifts that can take a lot of time and energy.

Take a moment to review and prioritize your wish list.  What is at the top of the list?  That’s the thing to tackle first. 

Let’s say it’s better fundraising software.  Take a few minutes to write down all the benefits that new software would bring:  more efficient use of staff time, better integration with other software systems, improved reporting to keep you focused on the right donors, automated functions and reminders, online donations and event registration, etc.  Identify a few software options that have the functionality you want (Idealware is a great source of reviews).  Ask around to your development colleagues to find out who has used them and whether they would recommend (or not recommend) them.  Once you’ve chosen software, get a price quote for both the conversion and the ongoing use.  Now you’re ready to approach your boss.

This last part is the hardest.  Request some time to talk to your executive director.  Try to anticipate any questions or concerns you might get in response.  When I was graduating from high school, my

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sister gave me some solid advice.  I wanted to attend an event out of town.  She said, when you go to mom and dad about borrowing the car, have a plan for where you’re going to park it overnight, how you’ll cover the cost of gas, etc.  You’re much more likely to get a ‘yes’ if you can show that you’ve thought everything through.

I imagine the conversation would go something like this: “I’ve really enjoyed my first year at ABC Organization.  We’re doing amazing work and I love the staff and our clients.  I do feel like there are some improvements to be made that would greatly enhance my ability to raise money.  Here’s an overview of the changes I would like to make.  There are a lot, so I recognize that it’s going to take time to get to all of them.  That’s why I’d like to suggest that we start with [new fundraising software].  Here are all the benefits that could bring.  The initial cost is $xx and the annual cost would be an increase of $xx over what we’re currently spending.  I’m invested in seeing our fundraising results grow.  How can we find the funds to make this change?” 

Sometimes there’s a recent donation that was larger than expected, or a budgeted expense that didn’t happen.  Or a surprise bequest.  Often you can find one or more board members who believe in capacity building and might be willing to make a one-time investment if you can make an effective case.

Your organization may have huge needs when it comes to capacity building.  If you can articulate exactly what those needs are for your department, what benefits you will see from increased investment, and what the highest priorities are, you are much more likely to convince the decision makers to say yes, giving you the tools you need to be successful.