Sanctity of Human Life

Avoiding Five Fatal Flaws of Christian Fundraising (Part 1)

by Douglas B. Wicks

(Editor: Finding the resources to implement your organization’s mission is obviously one of the biggest hurdles to effective ministry, so it must be given high priority. This is the first of a 5 part series that will be featured in Boardlink over the next several months. We hope you find it helpful!)

Last year I attended a workshop during which Dr. Paul Schervish of The Center on Wealth and Philanthropy reported, "We are in the midst of the largest wealth transfer in the history of the world." Schervish is referring to the coming intergenerational transfer of wealth ($41 trillion) over the next four decades.

There is no question that substantial resources exist to fund the mission and vision of all of our respective ministries. On the other hand, like bad cholesterol, we can sometimes clog the flow of life-giving resources by failing to give appropriate attention to our fundraising programs.

Fatal Flaw #1: Not Having a Plan

Success in the National Football League does not happen by accident. An article on SportingNews.com says that "one aspect of the game that can put a team over the top is the coaches' ability to design effective game plans." The same is true for Christian fundraisers. Success in our fundraising programs is more likely to happen by following a well thought out game plan. Fundraising guru Jerry Panas says, "There are some in fundraising who aim at nothing—and hit it with remarkable precision."

Even if you happen to be a one-person development team, which happens a lot in both small and large Christian nonprofits, a plan is essential. Resist the temptation to use your organization's lack of resources as an excuse not to have one. You will almost always be effective with some intentional planning and good time management.

For example, even if your organization relies on only one mailing to secure your operating expenses for the year ahead, you will want to put a plan in writing. Here are a few key considerations as you draft your basic plan:

Know the extent of your mailing budget.

How will you segment the mailing into various donor giving levels?

Will you send to everyone who has ever given to your organization, or will you limit the mailing to those who have given in the last 24 months so as to improve your ROI?

What specific story or content will you use? This is a critical choice. Is the story relevant to your audience? Does is clearly communicate the mission and vision of your organization? Is it timely? Will it evoke emotion in your donor? Will it motivate him/her to give?

Before you send the mailing, do you have a "thank you" strategy already in place?

The argument for having a game plan is all the more convincing when one considers the attrition rate for development workers. A survey conducted by the Association of Fundraising Professionals found that approximately 43% of fundraisers stay at their job for only two to three years. That is hardly enough time to get to know your key donors or to learn what approaches work best with your various audiences.

Development officers are often frustrated in some nonprofits due to a lack of resources and staff. Jerry Panas cites research that indicates that the number one cause of stress for fundraisers is having too much to do and too little time.

So what are some elements of a good fundraising plan? Not all of these will apply to your specific situation, but these ideas may get you talking—and planning—with your development coworkers:

Estate planning services to provide deferred gifts that will ensure the perpetuity of your ministry;

An approach to foundations, local businesses, corporations;

A careful cultivation of major donors;

A large net to capture the interest of mass donors;

A communications plan to promote/market your cause: direct mail; e-mails; Web site; newsletter that "tells your story"; ads in newspapers, magazines, trade journals; billboards, etc.;

Donor segmentation for more effective communications;

Events (banquets, receptions, home gatherings, etc.);

An organized and purposeful flow of reporting, thanking, and asking.

Of course, those fundraisers who remain planning-challenged can always take comfort in the approach suggested by Sir John Harvey: "The nicest thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression."

Next: Fatal Flaw #2: Not Articulating the Vision of the Organization

Douglas B. Wicks is the donor communications manager for The Christian and Missionary Alliance in Colorado Springs, Colo. He also helps other Christian organizations assess and improve their communications efforts.

Reprinted with permission from the Engstrom Institute; © 2009 Christian Leadership Alliance - (949) 487-0900. Visit CLA's website to see what they offer your organization to help build leaders and enhance organizational effectiveness!