9 Reasons You Should Outsource Your Fundraising

 

Thinking about fundraising alone? Thinking about how to get grants for nonprofits? Read this article to discover why fundraising is a job for professionals, and learn how you can make your nonprofit organization prosperous and successful.

This article is brought to you by IDC Giving Group. 

Fundraising is one of the most daunting tasks facing any new organization.  While asking someone to give money to a worthwhile cause may seem simple on the surface, fundraising for nonprofits is extremely competitive and a difficult job to do successfully.  Statistics show that out of thousands of requests received by charitable foundations each year, only 20% actually produce grants for nonprofit organizations.

Why such a low success rate?  Lack of experience in how properly to present grant requests, and lack of knowledge both of what exactly will interest potential donors and also which donors to target, tend to be the most common pitfalls.  Like a business executive at a top company rifling through a stack of hundreds of resumes searching for the right person for the job, foundations and donors have no shortage of worthy causes to support, and, therefore, have to devise a system for narrowing down the requests they receive.  Hence, when choosing who to support, they rely heavily on the initial information provided them, and scan the pile for nonprofits that dovetail well with the foundation’s mission and specific interests.  In addition, donors also tend to fund organizations with which they are already familiar, and, similarly, they will continue to fund organizations that strive to maintain open and communicative relationships with them.

Below are our top nine reasons to outsource your fundraising for nonprofits to professionals.  Each one provides a positive return on your investment, and will help transform your fundraising initiatives into huge assets on which your organization can depend and with which your nonprofit can grow.

  1. Understanding the Market

When it comes to the decision-making process, most philanthropic foundations and private donors operate with an acute lack of transparency.  Thus, it can be extremely difficult for nonprofits to connect with the actual decision-makers, as well as to ascertain what factors influence their decisions.  Professional fundraisers, on the other hand, tend to be successful because they do have this key knowledge.  Not only do they know the specific interests of different foundations and donors, but they have spent years—and sometimes decades—building relationships and rapport with the decision-makers at a wide range of foundations.  Hence, professional fundraisers are able to target your requests to the right person at the right foundation at the right time.  Consequently, by working with a fundraising professional, your nonprofit will be able to boost its chances to find a receptive and willing philanthropic partner from 20% to nearly 80%.

  1. Understanding the Process

If we had to choose the two most important aspects of successful fundraising, we would say personal relationships, and understanding the complicated, and often frustrating, process of applying for, receiving, and reporting on grants.  In fact, in recent years we have witnessed an increase in the personal involvement of donors and foundations in the latter.  Practically, this means there are more steps to the application process for grants for nonprofit organizations, more rigorous evaluations of your nonprofit both before and after you receive funding, and a requirement for more-detailed compliance reports.

Naturally, the best way to help ensure that these processes go smoothly, as well as to increase your chances of obtaining continued funding over time, is to build and maintain a working relationship with the specific foundation or donor.  For example, inviting donors to visit the office of your nonprofit, or bringing them along “into the field” where they can witness your important work with their own eyes will strengthen the feeling that their money is being put to good use, and will allow you to express appreciation for their contributions in a special way.

  1. Personal Relationships

We mentioned the importance of personal relationships in passing, but it is certainly worthwhile to expand on the concept.  The philanthropic world, just like the business world, runs on personal relationships—for better or for worse.  Professional fundraisers, as part of their job description, must develop personal relationships with potential donors and decision-makers at foundations that give grants. The network of contacts that a professional fundraiser can bring to a nonprofit is worth its weight in gold.

  1. Strengthening the Organization

Part of the work done by outside professional fundraisers actually takes places within the nonprofit organization itself.  Professional fundraisers have the knowledge and experience of how to leverage not just the skills of the local resource development staff, but also the specific talents, organizational knowledge, and unique skills of managers of departments throughout the entire nonprofit organization.  In general, nonprofits have one professional or a small team in charge of development.  However, in order to succeed in developing resources and raising significant funds, it is imperative for a nonprofit to improve its overall infrastructure, efficiency, and effectiveness, and to strengthen the abilities and performance of the staff as a whole.  Quite simply, donors invest in organizations with good management and a strong staff.  Furthermore, various organizational managers, members of the board, and even the staff in general must be aware of and embrace the fact that the role they each play in the organization is just as important in the eyes of donors as that of the development team.

  1. Internal Processes

Before donors invest new resources in an organization, they want to be sure that the organization is using their existing resources correctly, efficiently, and effectively.  Professional fundraisers are experts at helping nonprofits develop and maximize their internal organizational resources—including personnel, finances, and material resources.

Is the nonprofit using its resources towards accomplishing its mission?  Does the organization have clear goals and a realistic plan for the future?  How does management deal with the challenges the organization faces during periods when outside resources are scarce?  Is the organization tapping all of its potential resources to the fullest—including non-financial resources?  These are all questions at the forefront of any donor’s mind.

  1. Unique Knowledge

Nonprofits will find that working with fundraising professionals when initially creating a resource development strategy is a very beneficial relationship.  First, the support and guidance of experienced fundraising professionals can prevent costly mistakes at the beginning stages.  Second, the unique knowledge and skill sets of fundraising professionals means they bring to the table valuable advice, support, and training not otherwise found.  For example, how to craft requests for grants and donations, what ideological and ethical issues might arise during the fundraising process, and questions concerning taxes and other financial issues that specifically relate to nonprofits.

  1. Application Protocols

Most foundations have strict protocols for grant applications or funding requests.  On top of that, each foundation or donor works in a slightly different way.  Navigating these protocols can be a nightmare for nonprofits, especially those wishing to target multiple foundations.  If a foundation receives an application that is not accompanied by the correct documentation, or one that does not demonstrate an organized mission and fiscal responsibility, the foundation will often reject the application outright without even reading it.  Professional fundraisers that specialize in grant writing for non-profits know the correct procedures for each foundation, and can help their clients avoid these frustrating procedural mistakes often made during the lengthy process of grant writing for non-profits.

  1. Experience

For successful fundraising, experience runs paramount. This experience is one of the most important assets that professional fundraisers bring to the table. By working through countless application processes, submitting myriads of grant requests, struggling through a fair share of failures, and ultimately compiling an impressive collection of successes, professional fundraisers bring a wealth of know-how that a single nonprofit simply cannot amass by itself. In addition, individual nonprofit organizations often lose valuable accumulated, organizational knowledge, be it from staff turnover, inadequate databases, or some other way. Outside professional fundraisers, on the other hand, are meticulous in their documentation and recording of information, especially about foundations that give grants and other potential funding sources, so that the knowledge is preserved for future use.

  1. Follow up

Fundraising is a relationship, not a one-night stand. Hence, follow-up with a foundation or individual donor is just as important as the initial application process. Professional fundraisers will be there every step of the way, helping your nonprofit navigate the long-term process. For example, it is important for a nonprofit to send regular compliance reports and other appropriate documentation even after receiving the grant, in order to ensure that the funds are being used for their intended purposes. An organization that impresses a donor or foundation throughout the reporting process, and works to maintain a relationship with the donor even after the terms of the grant, will often find it opens a door to continued and additional funding in the future from that same donor or foundation.  Professional fundraisers can certainly help guide and advise your nonprofit through this relationship-building process.

These 9 reasons enumerated above are a lot to process.  In addition, they only touch upon the complicated, multi-layered art of successful fundraising and how to get grants for nonprofits. From experience, we know that a great number of nonprofits are indeed successful in some aspects of the fundraising process listed above. However, it is extremely rare, and extremely difficult, for a nonprofit to master all of the components, and to succeed both in the short term and in the long term.  That level of success requires outside help: professional fundraisers with a winning track record.


Debra Kagan is the CEO of IDC Giving Group. She holds a B.A. in Interdisciplinary Studies, Professional Certification in Non-Profit Management from the New York Institute of Finance and has managed hundreds of client cases and grant requests, successfully bringing millions of dollars to a wide array of nonprofits.  As a member of the Association for Fundraising Professionals (AFP), Debra and the IDC Giving Group team deliver high-quality, professional resource development services and strategies that allow your nonprofit to achieve new heights: no longer compelled to concentrate exclusively on the needs of today, but able to plan for tomorrow create an impact well into the future.

The consultants, writers, researchers, analysts and financial consultants at IDC Giving Group have a range of professional and personal experience. They represent a broad spectrum of academic disciplines and offer resources accrued from relationships with a variety of organizations and foundations.  With proven efficiency and a comprehensive understanding of the grant-writing process, IDC Giving Group is prepared to lead you towards success. For more information, call 1-866-744-4995 or email info@idcgivinggroup.com today!

It's only fair to share...Share on FacebookShare on Google+Email this to someonePin on PinterestTweet about this on TwitterShare on LinkedIn