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7 Ways to Kiss Fundraising Goodbye

Nonprofit fundraising doesn't work anymore. Here's how to take a more strategic financing approach to create a sustainable financial model for your nonprofit.

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7 Ways to Kiss Fundraising Goodbye

  1. 7 Ways to Kiss Fundraising Goodbye ©Social Velocity
  2. Fundraising doesn’t work anymore…
  3. Competition is Growing More Organizations 1.4 million nonprofits in US, up 19% since 1999 More for-profit social change orgs Less Funding Private donations level over last 30+ years Government spending cuts at every level
  4. But Financing brings your nonprofit sustainable funding…
  5. Financing is... A long-term strategy for bringing enough money in the door to achieve your mission. “How much should we raise to accomplish our goals?” “How much can we accomplish with what we can raise?”
  6. Board, Staff, Donors Money Strategy Infrastructure Sustainability Funding Sources Programs Messaging Fundraising Vs. Financing Worn out Excited, engaged Annual, only programs Long-term, all costs Inadequate Fully funded Weak Few Strong GrowingFlat or declining Diverse, Robust Community changeNonprofit’s need
  7. 7 ways to move from Fundraising to Financing…
  8. Nonprofit’s Financial Engine Nonprofit’s Core Competencies Nonprofit’s Mission 1. Connect Money & Mission Nonprofits will be most successful in this sweet spot
  9. Create a financing plan that… Ties to your strategic plan Encompasses 3-5 years Includes revenue & capital goals
  10. Revenue Ongoing Supports day-to-day BUYS services Vs. Capital One time Supports infrastructure, development, systems BUILDS the nonprofit organization
  11. Raised $350K from 6 donors New database, website Staff & training Market research Marketing materials Results Dollars up $1.6 M (40%) Donors up 36% to 19K+ 2. Raise Capacity Capital
  12. A board member can raise money by… Advocating for government $ Hosting a friend-raiser Recruiting an in-kind service 3. Involve EVERY Board Member
  13. A board member can raise money by… Providing info on prospects Creating an earned income business plan 3. Involve EVERY Board Member
  14. A board member can raise money by… Advocating for government $ Thanking a donor Negotiating a lower vendor price 3. Involve EVERY Board Member And much more…
  15. Sources: Nonprofit Almanac and Giving USA 4. Diversify Funding Sources of Nonprofit Sector Dollars Don’t rely too much on a small piece of the pie
  16. 5. Calculate the Cost of Fundraising Net Revenue Total $ Raised − ALL Expenses Cost to Raise $1.00 ALL Expenses ÷ Net Revenue
  17. $20,000 Event Net Revenue Income = $20,000 Expenses = $15,000 Direct = $8,000 (venue, food, band) Indirect = $7,000 (staff & board time) $20,000 − $15,000 = $5,000 Net Revenue Cost to Raise $1 $15,000 ÷ $5,000 = $3.00 CTR It cost $3.00 to raise $1.00
  18. A donor invests in a nonprofit with shared values The nonprofit translates that support into change to a social problem Community change occurs Your nonprofit is just an intermediary 6. Message Impact
  19. The Message of Impact comes from a nonprofit’s “Theory of Change”… Inputs ($, students, teachers, st aff, board) Activities (read to students 2x per week) Outputs (# students, # hours, # of books given) Outcomes (students stay in school, do better in school, gradua te from school) Impact (stronger schools, saf er streets, bett er educated citizens) Nonprofits usually stop here But this is where it gets really compelling
  20. 7. Move From Push… Push: Create messages and hope people act (Direct mail, press release, gala, advertising…)
  21. …to Pull Pull: Create space for people to engage (Social media, friend raisers, alliances…)
  22. In order to move from Fundraising to Financing… 1. Connect Money & Mission 2. Raise Capacity Capital 3. Involve Every Board Member 4. Diversify Funding 5. Calculate the Cost of Fundraising 6. Message Impact 7. Move from Push to Pull
  23. Learn More… Build a Nonprofit Financing Plan Step-by-Step Guide Download Here
  24. Other Nonprofit Tools E-books Bundles Webinars Guides socialvelocity.net/tools ©Social Velocity