Strategy

Fundraising Starter Kit

Funding: it’s a tireless chase that can exhaust a nonprofit, sucking up resources for insufficient financial gain and limiting the organization’s ability to achieve social good. It’s no wonder, then, that Executive Directors and Board members alike often approach Wellspring for answers to their funding challenges. Our approaches vary and depend upon their needs. They can range from in-depth analysis of government sources to identifying program outcomes that are most attractive to foundations.

While an organization’s development strategy is, by definition, client-specific and non-transferable, through our client work at Wellspring, we have come to realize that there are certain practices that are noteworthy. For example, as part of our recent work with a longstanding, youth development organization, we generated a list of best practices for attracting foundation dollars. These practices, developed through conversations with organization leaders with strong fundraising records, apply to many different organization.

So, without further ado, the list of suggestions:

  • It’s all about the data: Organization leaders were clear: without strong demonstration of impact, you’re risking chances of funding. Like all savvy shoppers, foundations, and donors and corporations too, want to know that their dollars are going to good use. Identifying clear metrics and building robust technology systems to track performance are critical. Without them, many foundations won’t entertain the idea of supporting your organizations. And so, while these efforts may be time consuming and expensive, the upfront cost and hassle will pay off in the end.
  • Make friends: One Executive Director put it best: “Don’t treat foundations like ATMs.” Winning grants is not transactional. It’s about building relationships. It’s about spending time in funders’ offices and bringing them along in your vision to affect the world. As a result of these efforts, you will have someone to turn to – someone who understands your organization and values its impact – when you need funding in two years’ time. 
  • Welcome them into your home: No matter how good of a storyteller you are, nothing illustrates a program’s power better than seeing it in action. So invite funders to watch the magic happen. Let them see what drives your organization. Let them see what compels you to show up at their door, asking for money – and they’ll be more likely to oblige. 
  • Be innovative: What’s new is always attractive – and this can be particularly frustrating for longstanding, even if high-impact, organizations. While acknowledging this frustration, experts noted that you can appease funders’ desire for novelty by injecting elements of innovation into the regular update of programs. Some also advocated for being strategic about program growth, incorporating areas of foundation interest. At the same time, they warn against bending to the every whim of foundations. Doing so could leave you with incoherent growth and programs that are not mission aligned – and, consequently, with an organization that is less appealing to funders.

To be sure, these suggestions are not a panacea; they won’t cure your every funding woe. But it is a strong starter kit that will put a new “oomph” in your development efforts, even those that are already strong.

Strategy consulting in Wonderland = Asking the right questions

Tennel_Cheshire_proof
Tennel_Cheshire_proof

This past year, I worked with a nonprofit organization to develop a strategic plan, and as part of the process, we at Wellspring Consulting facilitated a full-day retreat, bringing together key Board and staff members who were committed to the organization’s future. The President of the organization was a master storyteller. His reputation for exceptional tale-telling and side-splitting punchlines was known by all in his field. During the retreat, the President recounted a story that I had heard many times before, but within this context, I was able to hear it in a new way. Now, his gem of wisdom allows me to explain what outstanding strategy consulting is.

When introducing Wellspring at the Board retreat, the President started with a passage from Lewis Carroll’s Alice in Wonderland. [see here] At this point in the story, Alice has entered the woods and arrives at a fork in the road. She looks around to see if there are any clues as to where the paths might lead and is suddenly startled to see the Cheshire Cat sitting on the bough of a tree.

"Would you tell me, please, which way I ought to go from here?"

"That depends a good deal on where you want to get to," said the CheshireCat.

"I don’t much care where…" said Alice.

"Then it doesn’t matter which way you go," said the Cat.

“And this,” declared the President of the organization, “is why we have Wellspring with us.”

As the story unfolds, we see that the Cheshire Cat’s role in guiding Alice on her adventures was to pose the right questions. From the vantage point of his perch up in the tree, the Cat could see the landscape of Wonderland and could watch Alice traverse the terrain. At each vexing crossing, the Cat would pop into the scene to push her thinking again and again. As her guide, he enabled Alice to navigate her way through Wonderland by posing the right questions to elucidate the right insights. Though seemingly disorienting at times, his astute, logical line of questioning brought Alice through a process by probing further and further, allowing her capital-T Truth to rise to the surface, until Wonderland began to make sense to her.

This is what outstanding strategy consulting is. Excellent strategic planning entails asking the right questions, which in turn requires strong skills in logic, in analytics and in “organizational therapy,” the term I use to describe the process of reflecting on what is seen from an objective outsider’s perspective.

The Cheshire Cat’s extraordinarily talent in bringing Alice through a process by posing the right questions is no surprise given Lewis Carroll’s expertise as a mathematician, logician and teacher. Carroll understood how asking simple, mindless questions lead to simple, mindless answers, whereas asking great questions can invoke great answers and, in turn, lead to great decisions.

Pushing your thinking until the vision for where you want to go becomes clear is the power of outstanding strategic consulting. At its core, strategic consulting is about asking the right questions – ones that are nuanced and thoughtful – in order to make the right decisions. Through this process of questioning, a shared understanding among organizations’ leadership unfolds, and like Alice with her eventual new-found orientation, you can get to where you want to go.