Fundraising and Finance

An engaged Executive Board wants to fulfill its fiduciary responsibility to the organization. Non-profit financial reports (particularly for three-fund accounting) can be very complicated and difficult to read, thus frustrating Board members. Additionally, the need for full transparency and for a regular accounting of cash flows relative to budgeted operations has never been greater.

The Finance Plan, as shown below, is a template designed to show the Executive Board and those who may be on the Budget committee, serving as Treasurer, or on any of the fundraising committees, how revenues compare with expenses in a real-time look at the operations and functions of the organization. Though each section is called a "quarter" (example: 1st Quarter, etc.) these are functional time periods of the Council that may be two months, three months, or four months, because of the revenue generating functions of the Council as they relate to the known expenses of the Council. The vertical number in the second column is the average, or expected, expenses for that time period. This shows the Board and committees how much revenue is needed to continue to produce a balanced budget.

It is critical for the Executive Director, Finance Director, Development Director(s), and Treasurer to understand the financial statements in detail and to be able to explain any given account or timeline to any member of the Board as they seek to understand the finances of the organization and fulfill their fiduciary responsibilities.

Innovative fundraising requires a deliberate thought process and the input of as many staff and volunteers as possible. One might ask: What are the unique features of our organization (or foundation)? Where has revenue been generated in the past and what gaps persist in increasing that revenue? What is the organization know for and what reputation do we have for excellence that we can leverage? What natural resources are unique to the area? What experiences or resources can we leverage that others cannot - or at least cannot do as well as we can?

Additionally, those who fund the organization (donors/investors/customers/beneficiaries) are increasingly diverse in their age groups, generational uniqueness, and methods of contribution. Far too much time is needlessly wasted each year in trying to "reinvent the wheel" or in trying to recommit those who have supported us in the past. I created a path of contribution that is repeatable and sustainable for multiple years in a row without having to do the work over and over again each year. It is called "Pillars". It is based on a 5-year commitment to the organization at a certain level that will simply repeat each year at an agreed upon time frame.

Also, personal research with donors revealed that some methods of donor commitment are not highly favored, and in many cases, elicited very negative emotions. I worked with donors on their suggestions for change. From these efforts was born the campaign "Investment in Character". I discovered that individuals, family trusts, and even businesses contribute to causes as an "investment". Like any investment, they want to have a return on their investment. Most organizations have these returns built in, and that is why people support them. The unique and intrinsic value of the organization needs to be stated and re-stated over and over in every form of communication available. Donors/investors need to be reminded at least seven times each year about the "why" of their contribution. They also need to be thanked in unique ways - not just with a plaque on the wall.

We ask the investors to identify their favorite Scouting moral or ethic and call that their "PILLAR"!

Part of the relationship building with investors is a regular reporting system in which their specific "PILLAR" is identified and the organizational functions we are producing supports that investment.

I also discovered that the current generation will participating in regular giving if it is done the way they want to participate. Other organizations have been successful at this and have best practices that can be emulated.

Following is the control sheet for our "WORDS TO LIVE BY" campaign. Similar to the Pillars campaign - the Words to Live By campaign maximizes the twelve most important words in my current organization, Scouting - the Scout Law. The idea is simple: ask thousands of individuals and families to contribute a very small sum each month for one year, and make it completely renewable each year if the contribution stream is not cancelled. Many of these donors will continue to contribute monthly, year after year, without wanting or needing to cancel enough to go through the effort. This is how the current generation, and others, do charitable giving.

The marketing is also simple: create 12 separate, 60 - 90 second videos emphasizing one of the "WORDS TO LIVE BY" (example: Trustworthy) in a dramatized scene with young people showing how they have learned the moral or ethic and use it in key situations. These are intended to get the attention of viewers and heighten their reaction to these kids who have learned to do the right thing in emotionally charged situations. Thus moving them to donate.