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| Some Straight Talk on Fundraising | |||||
| By Bob Loehne | |||||
| According to the Foundation Center, in 1998 some 44,000 grantmaking foundations gave away $19.5 Billion dollars. How much of it did your nonprofit organization get? | |||||
| None? Wait a minute. In a time of incredible economic growth, when the equivalent of $72 for every man, woman, railfan, and child was there for the taking, you didn't get ANY? Still waiting for that TEA21 grant your congressman or state legislator promised? Is Ol' 999 still sitting in the open, waiting for overhaul because you have no money to buy flues, much less acquire or build a shop? | |||||
| Then you have no one to blame but your Board of Directors. And you need a professional fundraiser working for you. | |||||
| Every nonprofit needs a go-getter, a Robin Hood, a pickpocket, a sweet talker ... someone who loves going out and raising money. A few of our not-for-profits are blessed with such people, but most are not. That particular fund raising personality is hard to come by, and most of them are swayed to the bigger bucks they'd get paid for raising money at heftier organizations. | |||||
| So, let's assume you don't have such a go-getter associated with your 501.c.3 volunteer rolls. "What cha gonna do?" | |||||
| First, get over your prejudices against fundraisers if you have any. The "poor but proud" syndrome will ensure that you remain just that. Fundraisers are not evil. They have a very specialized skill, and you need it. | |||||
| Second, find one. Unless you are connected with your local philanthropic community -- you'll know if you are and if you don't know you aren't -- this will take some doing. While a number of individuals or organizations pass themselves off as fundraisers, finding a great fundraiser, especially one that will fit with your program, is about as easy as finding big steam on the Blue Ridge these days. | |||||
| Once you find a prospective fundraiser, be sure to check references thoroughly. Be wary of a fundraiser with several short-term arrangements on his resume, no matter how successful they were. You are looking for a fundraiser with not only an ability to raise money, but also with long term abilities both in mixing with your group and in returning to your donors to ask again and again. | |||||
| Before you start interviewing, your Board of Directors must get your house in order. Do you have a firm set of achievable goals already developed for the money you want to raise? If not, put it together. It should look ahead five to ten years, and include a mix of small and large projects. | |||||
| Your fundraiser will need a meaningful story to tell prospective donors. While a quality fundraiser can help you develop your story, you need to present him with a strong basic concept. The story is a key part of the donor's decision making both for commitment and how much to commit. | |||||
| When you interview potential fundraisers, do not make knowledge of railroads a litmus test. It does not matter that they don't know a lap seam from lapping seats -- you are hiring them because they know the right people and organizations, not because they understand the intricacies of Walshaerts valve motion. | |||||
| There are two basic working arrangements (and many variations) you might form with a fund raiser. You might choose to bring in a person who becomes part of your staff. He works on a contract or is a paid employee and works side-by-side with your top people. He lays out a plan and your organization with him applies the plan. With the other choice, you find a fund raiser who works on his own and returns to you a percentage of the money he raises in your name. You meet with him, he tells you his plan and he delivers the cash as per a schedule. | |||||
| I prefer the professional fund raiser who works with you. He's your handshaking genius; he can back slap with the best of corporate big wigs, foundation grantors, and politicians. Keep in mind, if he's any good he won't come cheap. Take good care of him, and, if you cannot pay him enough to work full time with you, you probably can hire him as a consultant. | |||||
| Many a suffering or brand new not-for-profit has risen from the ashes through similar professional fund raising means. In most cases the relationship between the nonprofit and the fundraiser becomes a long term one because the need for even more cash, in increasingly bigger amounts, can be met. In either case, I would want my fundraiser to have a significant financial stake in the success of the fundraising project. | |||||
| Believe me, the spoils of successful fund raising are fantastic. I have been associated with a venture that raised nine million dollars when five million was the original goal. Too much is not a problem so long as you apply it according to your 501.c.3's approved purpose. Of course, too much is a great problem to have. | |||||
| Coast-to-coast, look at the successful railroad or transportation museums many of us adore. What is the primary shortcoming that sets them apart from most nonprofit rail projects that do not succeed? Fund raising! | |||||
| Bob Loehne is a member of the Board of Directors of the North Carolina Transportation Museum Foundation, and President of the Winston-Salem Chapter NRHS. | |||||
| Help us fill in the Fundraising Tutorial with your successful ideas. | What's your reaction? Send your comments to mail@steamcentral.com. | From Gary Landrio, Vice-President - Rail Operations, Stone Consulting and Design: | "Every year millions are given away by local, state and the federal government through grant programs. Rail preservation projects have not to date gotten their share. These funds will not fall in your lap. You must fight for them. This includes lobbying your elected representatives, learning about the various grant programs available in you state or province, and proper follow through with applications. Applying for a grant does not start with a grant application. It must start earlier with an understanding of what kind of projects are usually funded. You must learn what makes a project go to the top of their list for funding. You need to have a clear understanding of what words to use to sell your project. As an example, some grants are given based on job creation. How does your project encourage tourism and tourism spending? Do you understand the commonly used job benefit multiplier factors? Rail preservation can get a greater share of the available grant dollars. You can make it happen if you set it up as a goal, and allocate both manpower and seed money for it. | | YOU ARE BROWSING THE OLD STEAMCENTRAL.COM. TO SEE OUR LATEST ENTRIES, CLICK HERE. |