Asking for Money for Your Nonprofit

In this short blog, I’ll share an introduction to some of the things I’ve learned in my years of working with donors who have a passion for the work of nonprofit organizations. Whole books are written on the subject, but I will address just a few fundamentals in my blog. This is fresh in my mind because our board at Rooftop 519 just asked me to share a presentation on how to appeal to a donor or potential donor for funding. Today’s post relates to my recent article on Starting a Nonprofit.

The population of the U.S. is far more generous than other people groups. This isn’t because of our wealth, as we have had a history of compassion and philanthropy for centuries. I believe our biblical foundations for philanthropy as a Christian nation has created an environment for blessing, and we are currently reaping the benefit of our forefather’s stewardship.

Americans donate more each year than Portugal, Greece, Finland, Ireland, Austria, Switzerland, Belgium, Denmark, Australia, Norway, Sweden, Canada, Italy, Spain, Netherlands and China combined. We contribute exactly twice as much as the next most generous population: Germany. There are other statistics that show we have drastically declined in our generosity (percentages of per capita and GNI giving are both on the decline in the U.S.), but we are still a very generous people. We have contributed in excess of $300 billion each year for at least the last three years.

People give to their passions. The key to helping advance an organization or cause is connecting people to that organization around their passions. For instance, it’s easy to ask a carpenter who loves his church, his community and his children to volunteer his time and talent to build a swingset for the children of the church to use. It probably creates a lot of joy for the pastor or lay leader to ask the carpenter to donate some or all of the work necessary to complete the project. Couple his work with other people of complimentary passions (a gardner, a concrete worker, a sign maker and a landscape retailer), and you have the makings of a wonderful “barn raising” party that will create a tremendous amount of synergy and accomplishment.

In the same way, financial resources can combine to do something synergistically that cannot otherwise be done. This requires someone to present a case for support to a donor for a financial contribution. An appeal like this is never singularly minded (we never just want money). The best appeal is to someone who would fulfill their passions and receive joy and purpose in their gift, as well as their giftedness. Money should never be the central theme of any relationship.

The process of determining who to ask should always start with careful understanding of your organization’s Guiding Principles. Trying to connect a potential donor to something that does not match their passions is a miserable thing to do. Asking our hypothetical carpenter to design a flyer for the local kenel club, assuming he doesn’t use Photoshop and care much about dogs, is a totally unrealistic appeal. Likewise, philanthropists are limited in their investment interests.

Here is the Board of Directors Presentation I gave this Friday that explains the roles of directors and the CEO as it relates to funding your organization. The introduction is borrowed heavily from Dr. R. Scott Rodin’s “Four Theological Foundations for a Capital Campaign”.

Whether you are raising money for a mission trip or a youth sport, you have to understand that people give to people for people. The power of matching passions is usually connected to a story that gives a compelling illustration of your mission in action. In the powerpoint above, Dr. Rodin shares the five rights of an appeal: The right person ask the right donor for the right amount for the right project at the right time.

One of our core values at Rooftop 519 is “Relationship is the Prize”. Understanding the relational nature of fundraising helps to break away from transactional thinking. Fundraising is an essential part of any nonprofit, but it is never the primary reason for a relationship.

I would love questions about nonprofit fundraising in the comments section. I’ll do my best to respond quickly.

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2 thoughts on “Asking for Money for Your Nonprofit

  1. Good job Shawn! Now everyone should know how to raise money and all of the worthy non-profits should have money coming out “their ears.” We both know that relationships are the key and people raising money need to take the time to build relationships with their donors. Most of the time people like to short cut this foundational step. Donors also need to feel like they are valued for more than their money; if they think you are just trying to build a relationship so that you can get their money they and their money will soon be gone!

    People raising money need to connect donors with the people being “ministered to.” That is why “vision trips” are so effective.

    Blessings, Randy

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