In a recent episode of the Livability Podcast, Tom DiFiore, President & CEO of National Community Development Services (NCDS), shared insights from more than 25 years of experience on the often overlooked yet critical role of strategic fundraising in economic development. 

Here are the top seven takeaways from his conversation with Amanda Ellis, Livability’s Editor in Chief, highlighting how Chambers and Economic Development Organizations (EDOs) can secure far more than token financial resources to punch above their weight class and drive transformative change.

1. Fundraising Isn’t Just About the Money—It’s About Empowering Communities

Tom began by dispelling the misconception that fundraising is merely a transactional activity. NCDS helps organizations secure resources that enable them to achieve far more in their communities than they could through traditional funding sources like memberships and sponsorships. 

By helping communities “punch above their weight,” NCDS enables Chambers and EDOs to more closely align with their stakeholders and execute ambitious, aggressive initiatives that truly move the needle on local prosperity.

2. The True Cost of Fundraising

Many organizations hesitate to invest in a fundraising consultant due to the perceived high cost. Tom addressed this common concern by explaining that NCDS’s approach is far from the stereotypical hired-gun fundraisers, telemarketers, and mass-appeal fundraisers that keep a “criminal” portion of the funds raised. 

Instead, NCDS clients typically see a cost of 5% or less of the total amount raised, even in smaller communities. This efficiency allows organizations to focus on impactful projects without the burden of excessive fundraising expenses.

3. Strategic Planning and Fundraising Go Hand in Hand

According to Tom, you can’t effectively ask for money without a clear plan on how you’ll spend it. NCDS integrates strategic planning into the fundraising process by involving community leaders early, ensuring that the plan includes the cost of implementation and market-testing the plan with stakeholders to ensure relevance. This approach refines the plan, optimizes objectives, and plants seeds with potential investors before any solicitation, ensuring a strong case for support.

4. DIY Fundraising: Proceed with Caution

While some organizations may consider handling fundraising internally, Tom likened it to doing your own taxes—it’s possible, but do you really want the pain and suffering that comes with it? DIY fundraising is unavoidably challenging for any organization, and can be particularly challenging for organizations already stretched thin on staff, time, and resources. 

Rather than dedicating most, if not all, of an organization’s leadership to developing, leading, and managing a fundraising initiative, NCDS offers a streamlined process, completing fundraising campaigns in 8-10 months. In exchange, organizations can secure 4-5 years’ worth of resources, making it a cost-effective, experienced alternative to internal efforts.

5. The Shift from Industrial Recruitment to Quality of Place Initiatives

Tom highlighted a significant shift in stakeholder expectations in recent years, moving from industrial recruitment to quality-of-place initiatives. Today’s organizations are increasingly focused on making their communities more livable, with goals like appearing on Livability’s top ten lists or attracting talent with improved local amenities. 

This shift reflects the evolving priorities of communities striving to enhance their appeal to residents and businesses alike.

6. The Power of Return on Investment in Fundraising

At the heart of successful fundraising is the ability to build strong relationships and make a compelling case for support. NCDS has an economist on staff who uses IMPLAN software to create detailed economic impact analyses, demonstrating the direct benefits of proposed projects to potential funders. This data-driven approach ensures that NCDS clients can present a robust business case for their initiatives, making it easier to secure capacity-level investments.

7. Engaging Volunteers: The Secret Sauce

Volunteers play a crucial role in NCDS’s campaigns, but their involvement is carefully curated. Successful volunteers are those who are fully bought into the plan, have made a fair and proportionate investment themselves, and possess high influence and credibility within the community. NCDS leverages the credibility of these volunteers while handling the professional ask, ensuring that campaigns are both effective and enjoyable for those involved.

Focus on the Community, Not Just the Organization

Tom’s parting advice was simple yet profound: Focus on the community, not just the organization. Organizations often fall into the trap of focusing on membership numbers or budget growth, but true impact comes from building the capacity to deliver real benefits to the community.

For anyone interested in learning more about how strategic fundraising can elevate your community, this episode of the Livability Podcast with Tom DiFiore is a must-listen.

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