Fundraising FUNDRAISING: Roles & Responsibilities: nonprofit managers (and the board of directors) must engage in fundraising in order to meet the fiscal needs of their organization. Generally, fundraising is not one of an executive directors favorite tasks. It can be an all-consuming activity, tapping an executive directors creative and social energy. Executive directors are constantly challenged to strike a balance between the time they devote to fundraising and program management. Too little attention to one area can leave an organization bereft of cash or quality services. There are several basic sources of funding in the nonprofit sector. The first is a grant. Grants may be given by government agencies, foundations or corporations, usually to operate a specific program. As noted earlier, agencies receiving government grants to operate human service programs base their reimbursement on fees for the services. Grants from foundations or corporations are generally provided up front and require a report on program activities and expenditures at the end of the grant period. Nonprofit organizations will solicit individuals for funds, also. Individual donations may come from an organizations membership or constituents (e.g. viewers of public television or residents of a neighborhood community). These are generally small donations, ideally from a large number of people. Sizable gifts may come from individuals who are referred to as major donors. Cultivating relationships with major donors requires the energy and resourcefulness of the board and director. Many nonprofits will hold special events to raise dollars. These vary from bake sales to major events. Fundraising can be a full-time job (or a full-time obsession) for nonprofit executive directors. Executive Directors are challenged to balance their time between raising money and program management. If too much time is spent on fundraising, programs and staff may not get the direction and coaching they need. On the other hand, if fundraising takes a back seat to program management, the organizations cash flow will suffer. Two factors will enhance fundraising efforts. One is good programs. Programs that are meeting important community needs and demonstrating results will sell themselves. A board that is committed to its fundraising responsibilities will also be an asset to the organization. Board members who take their role in fundraising very seriously will promote the organization and help bring resources to it. It is important to note, however, how the political climate can affect an organizations fundraising. Foundations and corporations may choose specific issues or causes for priority in grantmaking. In the 1980s organizations working with the elderly received major support from foundations and the government. These same organizations saw their support decrease as youth issues became a major focus in the 1990s.
Posted on: Sat, 26 Apr 2014 18:52:45 +0000
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