My main source of income is at risk, now what?
Whether that stream of income is a big foundation, large donor, or federal and state grants, this leaves behind a big dilemma and panic in most non-profits.
I strongly advocate for digging the well before you are thirsty. No sources of revenue should be viewed as infinite. Building a comprehensive development program will create a wider base of support than one or two revenue streams, helps avoid extreme market fluctuations, loss of a key funding stream and gives you more engaged people with your mission.
When 2008 hit, the non-profit I was serving took a hit but a very small one compared to so many others. Why? Because we had a strong base of annual donors by that point that kept their annual gifts coming. In many cases, they even increased their gifts slightly as they understood that we had to keep going when corporate and large donations were not so readily available. Checkbook or annual giving does not have the same impact as major gifts. Yet, when a wide base increases by a dollar or five dollars, it can make a difference.
As you build a comprehensive development program, you build the art and science of the operation that helps maintain large donors and federal/state dollars even when others are getting cut. Why? Because you have gone beyond the annual large report to engaging them, communicating frequently, sending pictures and quick impact updates and helping the people behind those dollars feel a part of your mission. Because you have a wider base that is pushing and pulling those sources with you. Have you ever seen large foundations, state or federal agencies fund a project when they say they do not have any money? There is an ego, a heart, a person behind that decision and a network of political push that good development operations understand is a key component. There is a response to pressure from those passionate about the mission.
I have found that large single source funders appreciate it when non-profits plan for the future, the day when that infinite thought process of funding suddenly becomes not so infinite. A significant and steady large donor passes away, government sources shift focus, or that foundation gets a new board or leader and changes direction. While you have their attention, put a plan in front of them to seed a development program. Ask them for a larger short-term financial commitment that will join forces with their support in funding the long term vision of the organization. Tell them, “We have so much to do that we want to invite others to invest. Can you help us in creating a structure of investment that will attract and engage others to join you?”
As you work to build a base, think about ways you can incorporate fundraising and friend raising into everything you do within your organization. “But my program focused people don’t have money so why should I incorporate that into our daily operations?” you ask. Well, their relatives might and their community does. Think of ways of sharing the stories beyond your walls by utilizing those within your walls. Start with outreach, invite folks to join, engage them through stories and pictures (there are ways!) and share with them the difference they can make. The conscious effort of starting a daily and cultural habit of thinking fundraising can have some amazing results. I am often surprised when people don’t even have a donate button on their website. Why not? I am even more surprised when I hear it is because that organization is state or federally funded! I sigh as I know where that will lead to in the future. An organization focused only on the program delivery-often due to shortage of time and resources-is not planning for that well shrinking.
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