• Published on October 29, 2018
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Status is onlineRobert Grabel
Nonprofit Leadership Coach and Consultant
106 articlesFundraising is tough. I know I’m not the only one to write those words. There are countless books out there offering magic formulas and secret sauces that will make the dollars come cascading in like a never ending waterfall. Can’t you just picture that? Come on - let’s take a second and picture that…
OK back to reality. Fundraising is tough. But in my experience there’s something even tougher than growing a fundraising program. And that’s Launching A Fundraising Program. There are multiple paths ranging from the seemingly easy route (i.e. let’s hire a superstar and their rolodex) to organizations that take a thoughtful and intentional approach to putting the proper building blocks in place. If you’re in the former category, I hope I can stop you in your tracks. If you’re in the latter group, congrats and be sure to pass on these options:

1. Hiring a rainmaker to do all the fundraising: I ranked this #1 because way too often, this approach becomes the substitute for starting a development program.  Rather than do the work of establishing a diversified fundraising operation, the idea surfaces that all we need to do is hire an amazing fundraiser! Naturally, this pro will come complete with a killer Rolodex and a distinct distaste for board participation in fundraising. This is the lone wolf that can do it all on their own. Bottom line, a fundraiser is only as strong and compelling as the mission of the organization. And like it says on those financial disclosures: Past performance is no guaranty for the future.
2. Miss-Hiring a consultant: A close second to #1 above. I’m not saying don’t hire a consultant - that would be pretty crazy as I’m a consultant! The big mistake is the idea that the consultant can literally do the fundraising for you and fix everything.  Neither the rainmaker nor the consultant can do all your heavy lifting. And how is a consultant going to fix your development program if you haven’t given it a fair shake at getting it started? If you’re hiring a consultant in the first stage of fundraising, you’ve hired well if they start off with a diagnostic discussion that leads to options to explore as you launch. Taking it one step further, you want realistic and effective ideas on implementing the components that will comprise your program.
3. Focusing on structure over execution: Structures matter. Processes and procedures matter. But don't make the mistake of looking at the these structures and processes as real development activity. These are just the constructs for fundraising activity taking place. For example, let’s say you’ve recruited the most prestigious Development Council with well attended meetings that adhere to Robert’s Rules of Order. Congratulations! But the BIG question remains: Is this prestigious and diligently organized group out there networking, having development conversations, and setting up the ASK? Only the latter will drive donations, not the former.
4. Having ongoing board participation as optional:  Too many organizations (not yours of course!) make the mistake of mandating a minimum contribution or give/get and leave it at that. This is a great first step in terms of board participation in fundraising. But it can’t stop there.  Having board members actively engaged in the ongoing identification and solicitation of prospects and donors is essential to the success of your fundraising program.
5. Assuming you know your constituency:  When it comes to structuring your program, don’t start by tailoring it to an assumed constituency i.e. very broad with smaller contributions or narrow with large gifts.  For example, maybe the bulk of your most natural network is comprised of newly minted graduates settling into their first job. You might automatically think that their seemingly limited earnings capacity eliminates their ability to make a significant gift. Accordingly, you set up your development program with a focus on lower-dollar campaigns and almost ignore creating a major gifts process. But what about their network and contacts? Or the possibility of a monthly pledge or gift? Don’t take options off the table till you have enough history to know their off the table. 

That’s it. There are no other mistakes to avoid. Just kidding... This was a start and hope it was helpful. Let me know if I can help you and your organization avoid these and others. 

I was recently coaching an individual who had an incredible experience.  While visiting a friend at an out of town hospital, she saw an amazing arts program and its impact on the patients.   She was inspired, eager to launch a similar program in a local hospital and wanted my thoughts on how soon she should get her 501c-3.  I’m always in awe of individuals with such passion, courage and conviction. At the same time, having gone through the experience myself several years ago, I knew there might be a step or two in-between.  Fortunately, she was well-grounded and we agreed there were just a few other things to do before forging on to her IRS designation. 

The moment we are hit with an inspired idea is priceless.  At the same time, we need to be forward thinking about how we put it into action.  As such, here are 5 of the most common mistakes to avoid when launching a social endeavour.  I’ve also offered solutions and hope you find them helpful:

1. Thinking passion is enough: There’s much to be said for passion.  But taking that epiphany and moving it from the dream stage to a living, breathing organization that is executing on a mission is hard work.   I have no doubt that anyone determined to make a difference can do just that. Just be ready to do some heavy lifting while dreaming your big dream.   
2. Assuming you need to launch a nonprofit organization: I’ve met many amazing social entrepreneurs and one thing they all have in common:  they see launching a 501c-3 as a critical goal. I’m not saying it isn’t. I am, however, suggesting that there are times when it might not be necessary.  Your idea might work as a program with an existing nonprofit. Or you might do well being fiscally sponsored. Explore all options before moving into the 501c-3 zone. 
3. Failing to Plan (and in essence planning to fail):  Cliche I know but true.  Understand how your vision translates into an actionable and fundable program with a beginning, end and reportable results. This is critical if you’re going the 501c-3 route.  For example, when I started my nonprofit Teens Run Westchester, I just wanted a program where adults partnered with teens and ran. I was fortunate to have a pro bono attorney who helped me map out a program, mission-driven activities and measurable results.
4. Recruiting family, friends and close contacts as your starter board:   In my opinion, this is the leading killer of new nonprofits.   It leads to lack of vision, work and worst of all, an impossible fundraising situation.  Can you hear it? The sound of that enthusiastic founder telling his friend “I just need you to show up at meetings - don’t worry about the work or fundraising.”  Don’t this let this be you! Start with the right board members - even a small group - and you’re building from strength.
5. Thinking you’ll wait to start fundraising:  There is no time like the present to start your fundraising.  Well, that’s not totally true. The minute you have these two things in place, you should start fundraising:  1) You have a program that has the ability to impact lives - whether one or thousands and 2) You have a legal entity that can accept donations on your behalf.  Don’t wait till “you really need the money”. You have a mission and you need funds to make it happen. 

​I hope avoiding the above will get you off to a good start.  If you want to hear about a few other things to avoid or I can help, please let me know.