In the fourth installment of our five-part series, we continue to demystify community and economic development fundraising with five essential – yet largely unknown – truths. Today, we’ll dive into the most important factor we’ve witnessed over decades of fundraising: leadership and champions. 

Before moving forward, here’s what we’ve covered:

1. Fundraising Can’t Just Be About Money
2. Your Community and Organizational Dynamics are Unique
3. The Plan Matters

If you’ve come this far, you know anyone can solicit membership dues and one-time event sponsorships to maintain their organization’s efforts. These traditional fundraising efforts carry little to no risk, and similar reward. 

The Multi-Year Strategic Initiative (MYSI)

In contrast, embarking on a MYSI involves inherently sizable, ambitious goals. Their transformative success depends on attracting people who can invest in these plans. With commitments of this magnitude, it’s only natural that skepticism, reluctance, questions, and uncertainty arise among the very stakeholders who will be asked to fund them. 

To ease this skepticism and reluctance from your target investors, you need the right leaders in place who have skin in the game and take an active role executing your campaign. 

The Right Leaders and Their Qualities

Leaders come in all shapes and sizes, but the right leaders for your MYSI have defining characteristics that will make or break your fundraising potential:

1. Full Buy-In 

Leaders that inspire investments and follow through must do more than merely endorse or approve of the MYSI and campaign; they have to fully buy in. This means they are not just giving a nod of approval but are actively involved and committed to the cause.

2. Influence and Credibility 

Your leaders should have influence, credibility, respect, and high esteem among their peers in your business community. Their reputation lends weight to the campaign.

3. Significant Investment 

Some, but not all, of your leaders should commit major, capacity-level investments – not just a token contribution. With their own skin in the game, they will not let the effort fail; they're personally invested.

4. Diverse Representation 

To ensure a broad support base and different perspectives, choose leaders that represent different industry sectors, company sizes, ages, and genders whenever possible. This relatability enhances your campaign's relevance and reach across your community.

Why These Qualities Matter

There’s a critical moment in your MYSI when the rubber meets the road and it’s time to start asking for investment. Having the right leaders in place unlocks strategic advantages that low-level and/or uncommitted leaders can’t deliver:

1. Instant Credibility 

Recognizable, well-known leaders give instant credibility to the plan and the campaign, making it easier to gain wider support.

2. Network Leverage 

Influential leaders both know and can open the right doors, get past gatekeepers to decision makers, and provide access to a better network for your MYSI efforts.

3. Maintain Urgency 

With their own investment at stake, they help ensure a sense of urgency and keep the campaign on pace, avoiding a common pitfall of any long-term capital campaign: losing momentum.

4. Promoting Safe Investment

When your leaders commit with early and substantial investments, it sends a message that it’s safe for others to jump in and invest, too.

5. Oversight and Assurance 

Lastly, your leaders provide more than just fundraising influence and name recognition – they act as a proxy or steward for all investors, ensuring effective plan execution and that investors' money is spent appropriately and efficiently.

Leveraging Leaders

Avoid this mistake when choosing effective leaders: limiting their commitment to just names, faces, and/or endorsements on your campaign brochure. Instead, select top-level leadership willing to buy in early with capacity-level pledges and plan ownership. This is the driving factor behind investor confidence (or skepticism).

By the same token, your leaders should not be tasked with legwork and do not have to perform the unpleasant task of asking others for money. Save that for professionals and consultants with training and a third-party, neutral perspective.

The Magic Formula

Your MYSI comes to life when you mix influential, credible leaders with proven processes and professional solicitations. This blend maximizes your fundraising potential with everything in place leading up to your MYSI’s final step, which we’ll explore in our next piece: "#5 Truth About Fundraising: The Ask Matters."

We’ll Help You Find Your Best Leaders

With the right leaders on your side, you can set the stage for fundraising success, transforming investor skepticism into confidence and reluctance into enthusiasm.

At NCDS, our objective, proven approach to capital campaigns over the last 45 years makes us uniquely qualified to help you find the best leadership available in your community. We’re always here if you’d like to explore your options for pursuing lasting progress in your community.

‍Contact us any time for a free consultation.