Development and fundraising are the center of the universe for nonprofits. Understandably, these specific aspects of nonprofit organizational effectiveness are often put under the magnifying glass when challenges arise.
In fact, some of the most common projects we are approached with at Good Scout are those that focus on increasing the quality and quantity of fundraising efforts. And while it’s certainly possible that you don’t have the right people or resources at your disposal, we have found that, in most cases, the cause of lackluster fundraising is much more foundational than anticipated.
Fundraising is not an isolated activity. It’s an integrated part of your organization’s overall health and effectiveness, impacted by everything from the HR department to the website development team. Despite best efforts, organizations can often fall into the trap of viewing departments in separate containers with distinct responsibilities rather than a joined team with a common goal.
Charisse Brown-Marcus, President and Managing Partner at Good Scout, shares insight into asking the right questions, identifying the problem(s), and creating holistic solutions that get to the root and open up new pathways to success.
Why Does Organizational Health Matter for Successful Fundraising Efforts?
Fundraising is undeniably the lifeblood of nonprofits, but it is not a siloed effort.
“Fundraising touches everyone in the organization,” Brown-Marcus explained. “It’s not just Development’s responsibility. They are the executors of it, but everyone in the organization is a fundraiser in some way; understanding that is often the key to moving your organization forward. Everyone is in Marketing, everyone is in Fundraising, and everyone is in Program Delivery.” Appreciating and participating in the work done by each department builds trust and respect between all staff members.
Understanding the multidimensional shape of fundraising can significantly enhance an organization’s ability to meet its mission. It builds synapses in the brain of your organization, giving it the power to function as a whole rather than as individual parts; it develops a collective strength that dispenses your resources with wisdom and care and amplifies the impact of fundraising efforts; and it saves you time and energy that could have been wasted on solving problems where there were none.
It’s not impossible for fundraising and programming to be the problem, but beginning with the mindset that those are not the issues ensures that your organization is at its healthiest.
“Starting with the assumption that fundraising and programming are secure can help you avoid hitting a ceiling of program growth,” said Brown-Marcus.
Some Key Dimensions of Nonprofit Organizational Effectiveness
1. Mission Clarity and Mission-Centered Alignment
Clearly articulating your organization’s mission makes certain that programming aligns with your mission and vision for the future. Not only does this create a compelling narrative that motivates and engages supporters, but it also gives you a filter through which to sift your opportunities.
“Just because you can doesn’t mean you should,” Brown-Marcus said. She shared the story of an organization whose experience reflects the value of mission-centered programming:
“Through really tough times, they determined they were doing too much. They were offering great programs, but these programs were outside of their realm of expertise and it was confusing. Their donors didn’t even know what they did anymore. It required being honest about who they were and what they were good at, and recognizing what value they brought to the world, and trimming things down to focus on those values.”
2. Strong Leadership and Governance:
As you evaluate the health of your organization, look at those at the top: are there healthy governance structures within your organization? Is there a culture of transparency, accountability, and ethical conduct? Do board members have a sense of ownership? The mindset, behavior, and interaction with leaders will affect the culture and communication of the entire organization as a whole.
3. Strategic Planning and Goal Setting:
Producing a step-by-step plan for decision-making processes and program implementation focuses fundraising efforts to align with clearly outlined goals that point toward your mission. This includes setting measurable targets, creating action plans to track progress, and regularly evaluating success.
Even in “new horizon” scenarios, having strategies in place can give structure to their implementation and measure their success in the long run.
“There is a place for risk and innovation,” Brown-Marcus said. “But there’s a disciplined approach to decide when and how to do that.”
4. Resource Management and Stewardship:
Strategies aren’t just for programming and fundraising. Developing healthy stewardship tactics to acknowledge and appreciate donor contributions helps foster long-term relationships.
Nonprofit organizations should place a high priority on transparency and accountability. Despite the discomfort, it makes a major impact on the relationship you have with your donors and gives them a reason to trust you and advocate for you.
5. Effective Communication and Marketing:
Communication is an elephant in any organization—its impact is significant on your brand identity both internally and externally. Crafting compelling stories that align with your organization’s mission convey impact and inspire donor support. Tailor your messaging to different donor segments and personalize interactions to create a sense of genuine connection.
When it comes to internal communication, make sure that your teams feel connected to your brand identity and your mission. Are they advocates for your brand? Do they feel like they’re a part of important work? Is there a culture of community and camaraderie for the mission? Even these internal factors can affect the visual expression and, in turn, the success of your organization.
6. Donor-Centric Relationship Building:
Adopt a donor-centric approach, focusing on cultivating strong, long-term relationships. Ensure that contact with your organization is personal, that they feel like a part of the team whose preferences and interests are taken into account.
Implement personalized stewardship strategies, including recognition, engagement, and donor appreciation activities. Fostering these relationships will affect their long-term commitment to your organization.
7. Innovation and Adaptability:
In the midst of all this talk about structure and strategy, there is still a place for innovation and adaptability. Adapting to evolving trends in fundraising and donor engagement can maximize your reach and create new avenues for opportunity.
Encourage experimentation and encourage a culture that appreciates learning from both successes and failures. This in itself will optimize fundraising efforts.
To truly excel in fundraising, executive leaders must recognize and address the multiple dimensions of nonprofit organizational effectiveness.
By focusing on mission clarity, strong leadership, strategic planning, resource management, effective communication, donor-centric relationships, and adaptability, you can create a solid foundation for successful fundraising.
Good Scout Group offers a comprehensive Organizational Impact Assessment to help your organization maximize its potential and identify areas of opportunity. To learn more, reach out to our team today.