About the Author: Michelle Stein is a fundraising consultant and trainer specialising in high-value fundraising from major donors, corporates and trusts & foundations. She is also a faculty member at The Mensch Academy (a curriculum for social change) where she trains on Fundraising Strategy.
IF WE KNEW THERE WAS ENOUGH MONEY, WHA WOULD WE DO DIFFERENTLY?
I recently met with one of South Africa’s leading management consultants. She works for the country’s biggest corporate foundations, measuring the impact of their funded programmes. Her reflections with over 30 years in the sector: There is enough money to fund projects. That isn’t the challenge. The real problem? There are not enough organisations thinking big to solve problems at scale.
Her words surprised me. It seemed counter to the narrative that there is never enough money. So, if we know there is money but it is about solving problems at scale, what can we do differently to attract funding especially as a small not for profit organisation (NPO)? Here are five suggestions:
1. HOLD A BIG VISION
Go back to the drawing board and start thinking big. What would it look like if we scaled this? What would we need to reach even more? If we believe the money is there, what is stopping us from making this happen? Once you’ve created that big vision then start talking about it. Even if your income or activities don’t reflect it right now, continue to believe in and communicate the big vision you imagine and are working towards, whether for your community or the whole country.
2. COLLABORATE WITH OTHERS
Partner with organisations doing similar work or organisations doing adjacent work. Your big vision will only be achieved by aligning with others. The saying, ‘If you want to go fast, go alone, if you want to go far, go together’ holds true! Funders love collaboration because impact is multiplied, skills are complemented and new solutions become possible. More funders are also increasingly pooling funding into donor collectives to maximise funds and learn from one another. If donors are doing it, they want to see organisations doing it.
3. FOLLOW THE DATA
Use data and impact measurement to show why your solution works, not anecdotes or stories, but actual data. It means investing in and valuing impact measurement not as a nice to-have but as a necessity for securing funding. Daniel Kahneman’s book ‘Thinking Fast and Slow’ details how people make decisions. Kanehman’s research showed that people make decisions based on emotion and then use facts, figures and logic to justify and explain their decisions. Organisations need stories to draw funders in, but they also need data, for donors to explain why they funded a particular solution.
4. DEVELOP PARTNERSHIPS
Big, long-term funders want to be valued as partners in tackling society’s biggest issues. They don’t want to be viewed as at best, a donor that you contact once a year or at worst, a necessary evil. It means finding out what they value, and then communicating what’s in it for them as a partner. Once they are on board as a funder, it is about finding ways to bring them closer to the work. This is about much more than a once-a-year report. It will look like phone calls, meetings, reports, events, cards and other touch points that show them they’ve made a wise investment.
5. INVEST IN YOUR ORGANISATION
Big visions and solutions take work to make happen. Our organisations are solving some of the most complex societal issues. And yet, we expect them to run on a shoestring. In the for-profit sector, if Apple is launching a new iPhone we have no problem with how much money went into innovation and development because the outcome is a great product. In the charity sector, we limit spending on innovation and development because this can feel reckless even if it undermines our ability to achieve our big vision. Invest in your organisation, the scale of your work demands it.