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A donor’s widow is suing a New York hospital to enforce the terms of a $10 million gift, according to a recent article in The Chronicle of Philanthropy. Red Cross chapters across the country saw dramatic declines in giving, at least partly because of donors’ disappointment over the misuse of the 9/11 funds. And the Washington area United Way’s $13 million shortfall in 2002 has been attributed to financial mismanagement by the charity. These examples and many more like them point to the fact that today’s donors are less likely to make a gift and walk away. A recent Business Week feature summed up this trend by saying that today’s donors are more ambitious and businesslike: They get more involved and demand results. While the negative connotation of lawsuits and reduced donations makes headlines, there
organization. Therefore, approach fundraising from a business perspective with a plan that outlines how you intend to advance your mission this year—or over a period of years. You may accomplish this by taking a few days to develop a good strategic plan. In Strategic Planning for Nonprofit Organizations, Michael Allison and Jude Kaye write that successful strategic planning improves the focus of an organization by generating an explicit understanding of the organization’s purpose, businesses and audiences; it provides a plan for action, broad milestones with which to monitor achievements and assess results, and information that can be used to market the organization to potential funders. Just as important, planning helps you actually make progress toward your mission—and that’s the reason we work for nonprofits. Report back. Tell donors how their “investment” has been spent. Many foundations
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FUNDRAISING TODAY: THE GROWING TREND TOWARD DONOR INVOLVEMENT
by Ann Klucsarits
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are definite advantages to increased involvement by donors in the nonprofit organizations they support. Of course, this will also pose new challenges for organizations that directors, development officers, and trustees must be ready to face. Here are some guidelines to help you navigate these new waters. Know thyself. Make sure you understand your organization’s mission and take it seriously. If you don’t define your organization’s mission clearly and compellingly, donors will define it for you— either incorrectly or in vague terms. And when your programs don’t live up to their definition, donors either won’t be motivated to give or will be disappointed with the gift they have made. The best gift is one that meets both the needs and interests of your organization as well as the donor. Act like a business. Donors view their charitable giving today as an investment in an effective
require formal reports, but don’t ignore the individual donor. It has been said that you should thank donors seven times throughout the year for their gifts. So think of formal and informal ways to say “thank you” and report on the progress of the projects that most interest them. This can be done by a simple phone call or e-mail, by sending written reports, or by providing information on media coverage your organization has received. Set up systems. Recognize that more donors may be interested in project-based giving, and be ready to respond to that. This may require more detailed proposals that include specific budgets. Make sure to work with your accountant to get an accurate picture of a project’s cost. Also, communicate regularly with the person or department in your organization that is carrying out the project. If there are any changes to a funded project,
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you have an obligation to let the donor know before all the money is spent. Be willing to walk away. In these difficult economic times, it is hard to turn down a gift, but you must be willing to do just that if the donor’s interests do not match your organization’s needs and interests. The driving force of your organization should be your mission and vision—not money. To be successful, this strategy requires the complete support of your organization’s directors and trustees. Work hard. When she was prime minister, Lady Margaret Thatcher said, “I do not know anyone who has got to the top without hard work. That is the recipe. It will not always get you to the top, but should get you pretty near.” She is exactly right. There are many ways to be a good fundraiser, but few people are truly successful without persistently working hard at it. Ann Klucsarits is Director of Development at The Heritage Foundation
“ IN THESE DIFFICULT ECONOMIC TIMES, IT IS HARD TO TURN DOWN A GIFT, BUT YOU MUST BE WILLING TO DO JUST THAT IF THE DONOR’S INTERESTS DO NOT MATCH YOUR ORGANIZATION’S NEEDS AND INTERESTS.”
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