Strategic Fundraising
Why Investors Offer So Much More Fundraising Potential than Members
The most common (and most detrimental) cause for suboptimal fundraising is strategic – not a lack of available funding.
Your fundraising potential is as powerful as your vision.
For decades, NCDS has worked with Chambers of Commerce, Economic Development Organizations (EDOs), and other non-profit organizations that get stuck raising enough funds for their projects and initiatives.
While there are a few core reasons you may experience year after year of suboptimal fundraising, we’ve found the most common (and most detrimental) cause is strategic – not a lack of available funding. Most organizations build their fundraising strategy with a member-dependent, transactional approach that focuses exclusively on providing “member value” instead of delivering impact and value to the entire community.
This member-dependent fundraising is also organization-specific, which leads to “capped” fundraising goals and narrow participation – excluding participation from a broader base of investors who have a stake in the community and region, but may not see the value of “membership” in your organization.
Members tend to be primarily focused (although not exclusively focused) on the individual needs, networks, and benefits they receive from their membership. This makes them more willing to contribute to specific projects, events, and/or activities in which they participate, but the investment is typically limited to a dues formula and the perceived marketing value of any additional sponsorships.
We refer to this type of fundraising as “capped” because the relationship is measured and transactional, and in most cases not ambitious enough to secure large funding commitments.
In contrast, investor-focused fundraising strategies offer so much more fundraising potential than memberships alone, and this one strategic shift can help you open a whole new world of fundraising potential.
In most communities, the individuals and private sector companies we identify as “investors” tend to participate in individual organizations’ fundraising efforts to the extent that it benefits their company and/or employees through direct - and indirect - impacts. They are big-picture stakeholders who are much more interested in economic growth, sustainability, and business climate.
Potential for growth and prosperity in the city, community, and region is their primary motivating factor (among others, of course), which positions them as far more willing to invest in initiatives that can bring about positive change at scale – vs. organization-specific events and activities whose impact starts and stops with perceived marketing or PR benefits.
Private sector investors, in particular, offer significant fundraising potential for your organization. Many companies are not interested in becoming members of a Chamber of Commerce or EDO, as they do not see the value in the benefits that membership offers.
It’s not uncommon to see private sector companies shy away from membership (or choose not to renew their membership) when an organization’s list of peer membership is underdeveloped or its culture does not resonate with the company.
When your strategic vision for community and economic development includes meaningful and long-term improvement - often through partnerships and collaborations with other organizations - these prospects tend to be much more inclined to invest. It’s far more likely that this approach aligns with their business goals and values.
In contrast to a member-dependent fundraising strategy that’s tied to your organization’s annual, internal objectives, NCDS developed the multi-year strategic initiative (MYSI) that is now the industry standard for strategic fundraising. A MYSI aligns multiple strategies and tactics under a set of broad-reaching objectives across four to five years to tangibly move the needle of community and economic development.
These objectives often include:
The breadth of a given MYSI draws in a much larger pool of investors who – because of the greater vision – have a greater stake and reason to invest in its success. It’s a foundationally different strategy from day one which, once communicated to your community, increases fundraising potential tremendously.
The first step in any MYSI is a comprehensive feasibility study to evaluate how much the community supports your proposed program or project and to help you succeed in raising funds. This is the most important prerequisite for any fundraising campaign.
Importantly, the feasibility study identifies and cultivates potential leaders that are known, trusted, and qualified to lead a MYSI. Investors will only participate when it has credible leadership they trust to deliver on their promises. This means your MYSI must have a clear and compelling vision to attract such leaders, as well as a fundraising partner with a track record that will instill confidence in a successful outcome.
NCDS is always here to help you maximize your fundraising potential. Our proven fundraising process provides a range of services including feasibility studies, strategic planning, economic impact analyses, and capital campaign management to help your organization deliver on its mission.
Get started today with a free consultation or download our whitepaper.
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