In The 2010 Nonprofit Fundraising Survey report released in March 2011 by The Nonprofit Research Collaborative*, respondents indicate that investing in fundraising even in a down economy paid off.
The survey of nearly 2,000 nonprofit organizations of all sizes and in all regions of the country equally dispersed by type of organization states: "Most organizations held their investment in fundraising steady in 2010.
However, those that increased expenditures, staffing, or volunteer engagement were more likely to see increases in funds raised.
There is also a relationship between failing to invest in fundraising and failing to meet goals.
That is,investment doesn't guarantee increases, but decreased investment is associated with not meeting goals.
" The results are more telling when you dig into the numbers.
Of the nonprofit organizations that increased investment in fundraising by at least 15 percent, 75 percent saw an increase in financial support, with 48 percent reporting an increase in giving by 15 percent or more.
To put that into understandable terms, if you are an organization that, in 2009 had $1,000,000 in contributions and spent $200,000 (20%) on direct fundraising costs and you increased that investment by $30,000 (15%) in 2010, you were likely to see increased financial support of at least $150,000 on that investment.
Conversely, the report states "about four in 10 (43 percent) organizations that allowed fundraising expenditures to decline by 15 percent or more saw contributions decline by 15 percent or more.
" Just use the example above and put minus signs in front of the investment and return amounts and you get the picture.
There is no question this is a chicken or egg problem for most nonprofit organizations that live on tight budgets.
How do you spend the money before you see the return? Here are four recommendations: Find faithful supporters who "get it" There may be those donors to your organization willing to underwrite this kind of investment with the data in hand to show the impact of that gift.
I realize this can be easier said than done with fewer donors choosing to invest in "overhead" than directly into programs or projects.
However, knowing the passions and interests of your donors will lead you to these potential opportunities and "bottom-line-driven" donors.
Temporarily cut in other areas Again, I understand that this is not an easy decision or desirable approach.
However, cutting back on an overhead item, delaying a project or scaling back a program temporarily is a much better option than permanently.
One of the most impressive fundraisers (and all around individuals) that I had the privilege of working with on many occasions was Archbishop Daniel Buechlein of the Archdiocese of Indianapolis.
When faced with this issue in the late '90s, he made some difficult but wise decisions on cutting in other areas while investing in fundraising infrastructure.
The result was the ability to meet annual goals when others were seeing declines, raising $20 million from foundations and corporations for schools and positioning the archdiocese for a successful $100 million capital campaign, concluded in 2007.
It is a difficult pill, but the prescription can have a healthy outcome.
Leverage staff with volunteers The November 2010 Collaborative Survey reported "approximately 22 percent of charities used volunteers in positions that were formerly paid positions during the first nine months of 2010.
This is up from 15 percent a year ago.
" Anyone who has worked with volunteers knows that this is no easy proposition.
If not undertaken with a very intentional plan for involving, training and empowering volunteers appropriately, a beefed up volunteer effort can actually take more staff time.
However, there are very appropriate and strategic ways to teach and train volunteers to be effective fundraising help if you invest in training, organizing and monitoring those willing and passionate partners.
Use cost-effective outside fundraising counsel Before adding staff and making permanent investment in infrastructure, a very cost-effective way is to engage experienced fundraising consultants to develop and implement a strategic growth plan.
The results can begin to be realized more quickly, and allow you to grow into the right size organization and investment, with revenue streams to match the costs.
In this time of cost and revenue challenges, fundraising efforts and staff time must be directed to the highest impact, highest return activities.
An experienced fundraising consultant that helps devise and execute the appropriate plan for your organization will get the most out of your fundraising investment.
It is an oversimplification to say "you have to spend money to make money.
" Any investment must be made with the greatest care and most thoughtful consideration.
However, as the survey respondents indicate, those organizations continuing to move forward to engage its donors appropriately and continuing to invest in the right fundraising activities continue to grow their missions.
* Members of the collaborative are the AFP, Blackbaud, The Center on Philanthropy at Indiana University, GuideStar, and National Center for Charitable Statistics
The survey of nearly 2,000 nonprofit organizations of all sizes and in all regions of the country equally dispersed by type of organization states: "Most organizations held their investment in fundraising steady in 2010.
However, those that increased expenditures, staffing, or volunteer engagement were more likely to see increases in funds raised.
There is also a relationship between failing to invest in fundraising and failing to meet goals.
That is,investment doesn't guarantee increases, but decreased investment is associated with not meeting goals.
" The results are more telling when you dig into the numbers.
Of the nonprofit organizations that increased investment in fundraising by at least 15 percent, 75 percent saw an increase in financial support, with 48 percent reporting an increase in giving by 15 percent or more.
To put that into understandable terms, if you are an organization that, in 2009 had $1,000,000 in contributions and spent $200,000 (20%) on direct fundraising costs and you increased that investment by $30,000 (15%) in 2010, you were likely to see increased financial support of at least $150,000 on that investment.
Conversely, the report states "about four in 10 (43 percent) organizations that allowed fundraising expenditures to decline by 15 percent or more saw contributions decline by 15 percent or more.
" Just use the example above and put minus signs in front of the investment and return amounts and you get the picture.
There is no question this is a chicken or egg problem for most nonprofit organizations that live on tight budgets.
How do you spend the money before you see the return? Here are four recommendations: Find faithful supporters who "get it" There may be those donors to your organization willing to underwrite this kind of investment with the data in hand to show the impact of that gift.
I realize this can be easier said than done with fewer donors choosing to invest in "overhead" than directly into programs or projects.
However, knowing the passions and interests of your donors will lead you to these potential opportunities and "bottom-line-driven" donors.
Temporarily cut in other areas Again, I understand that this is not an easy decision or desirable approach.
However, cutting back on an overhead item, delaying a project or scaling back a program temporarily is a much better option than permanently.
One of the most impressive fundraisers (and all around individuals) that I had the privilege of working with on many occasions was Archbishop Daniel Buechlein of the Archdiocese of Indianapolis.
When faced with this issue in the late '90s, he made some difficult but wise decisions on cutting in other areas while investing in fundraising infrastructure.
The result was the ability to meet annual goals when others were seeing declines, raising $20 million from foundations and corporations for schools and positioning the archdiocese for a successful $100 million capital campaign, concluded in 2007.
It is a difficult pill, but the prescription can have a healthy outcome.
Leverage staff with volunteers The November 2010 Collaborative Survey reported "approximately 22 percent of charities used volunteers in positions that were formerly paid positions during the first nine months of 2010.
This is up from 15 percent a year ago.
" Anyone who has worked with volunteers knows that this is no easy proposition.
If not undertaken with a very intentional plan for involving, training and empowering volunteers appropriately, a beefed up volunteer effort can actually take more staff time.
However, there are very appropriate and strategic ways to teach and train volunteers to be effective fundraising help if you invest in training, organizing and monitoring those willing and passionate partners.
Use cost-effective outside fundraising counsel Before adding staff and making permanent investment in infrastructure, a very cost-effective way is to engage experienced fundraising consultants to develop and implement a strategic growth plan.
The results can begin to be realized more quickly, and allow you to grow into the right size organization and investment, with revenue streams to match the costs.
In this time of cost and revenue challenges, fundraising efforts and staff time must be directed to the highest impact, highest return activities.
An experienced fundraising consultant that helps devise and execute the appropriate plan for your organization will get the most out of your fundraising investment.
It is an oversimplification to say "you have to spend money to make money.
" Any investment must be made with the greatest care and most thoughtful consideration.
However, as the survey respondents indicate, those organizations continuing to move forward to engage its donors appropriately and continuing to invest in the right fundraising activities continue to grow their missions.
* Members of the collaborative are the AFP, Blackbaud, The Center on Philanthropy at Indiana University, GuideStar, and National Center for Charitable Statistics