A nonprofit development culture in four steps
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What’s the status of your organization’s development culture? I ask that question when working with a new organization that wants to focus on solidifying its sustainability. The answers are across the board, with larger organizations generally more prepared. In smaller organizations, the question can generate a sense of embarrassment or guilt, a response that demonstrates they appreciate the concept but have yet to prioritize the actions. However, the hesitant response is not as challenging as a blank stare or puzzled look. The latter is indicative of a much larger problem.
For decades, nonprofits focused on fundraising and quick hits such as special events, annual appeals, and other tools. However, astute organizations came to understand there was more to be realized in developing donor trust and long-term relationships with their donors. Strong development programs served as a means of cultivating gifts less subject to societal and environmental swings. Yet even those with strong “programs” often lacked a true development culture, where the entire organization was aligned and participating in steps to foster development relationships and the resulting gifts.
Organizations with limited or no development staff are often involved in what I like to term a development crisis. They have not taken the time or had the guidance, to draft a development plan that could drive future success, let alone cultivate a true development culture. When discussing future revenues, their dependence upon the perceived success of the next event puts them on a wheel of uncertainty. Ultimately, their sustainability outlook is tenuous at best.
A development culture that permeates every aspect of an organization is often challenging. I experienced a larger organization where some leadership failed to adopt the importance of supporting such a culture. Instead, multiple fundraising efforts ensued which sent confusing messages to potential prospects.
When seeking to move from an inconsistent approach toward a culture of building donor trust and deeper relationships, I recommend the following four steps:
Development Audit
A development audit is crucial in advancing a development program and moving to a more reliable funding source driven by donor relationships. The audit represents an objective review of your development program including leadership, fundraising, public relations, and operational practices related to fund development. The fundamental audit structure may vary but the outcomes it provides are invaluable and provide information that will sharpen your development plan.
Development Plan
Organizations of all sizes must utilize a development plan to drive their efforts. If not using one currently, then the proposal for its creation should appear on the next board agenda. A professional development plan will provide direction, key milestones, and anticipated outcomes to ensure success. It should also cover key responsibility and accountability aspects of the effort. This plan examines the current role of philanthropy in the organization and the opportunities for more impactful efforts. The plan also outlines a system to identify prospective donors, potential key segments, and opportunities to raise additional funds to support the organization’s mission.
Development Team
Ultimately, an organization’s Board is responsible for establishing the goals and strategies for advancing the organization’s financial needs. However, the realities in smaller organizations are that boards need to be more actively involved in networking the organization to the community and building relationships and trust with donors. Effectively this can compensate for the lack of a development staff and capitalize on the connections and experience of the board. In smaller communities the ripple effect of their involvement is inspiring.
Every employee, associate, and volunteer must comprehend their role in advancing the development program in larger organizations. Prospects can turn into donors and donors may upgrade their giving resulting from simple, positive, interactions with those representing the organization.
The success of such a venture starts at the very top of the organization and the lack of such support will contribute to the turnover of development staff.
Development Tracking
Organizations of all sizes have been remiss in tracking development efforts in an impactful way. Even though donor database management systems offer bells and whistles to assist, they are underutilized in many shops.
Tracking starts with the Board’s regular review of the development plan, no less than quarterly, to ensure progress and make any alterations needed. They must appreciate measurements such as the donor retention rate or gift upgrade success. Changes to the plan should be board-approved and documented in the organization’s minutes.
Expectations around reporting and participation should start with the board’s financial support, all of which should cascade from the plan. Goals and objectives must be understood by all involved in the development efforts and be monitored with appropriate coaching provided where needed.
Building a culture of development, like any cultural aspect, takes time, effort, and commitment. Unfortunately, in consulting with nonprofits I see continuums that run from little effort and resources being expended, to those where resources are expended, but the return on investment is lacking. The future of your nonprofit organization depends on getting it right.
David J. Fry, MPS,CDT is Founder/CEO of Effective Advancement Strategies in Greensburg and author of Build a Nonprofit Castle. He consults with nonprofits throughout Indiana. He may be contacted at strategies@etczone.com