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Wednesday, January 7, 2009
The Development Function Audit: Raising Money from the Inside Out
Today's economic climate brings unique challenges to the nonprofit sector reliant on philanthropic dollars. Foundations are refocusing their priorities, individuals have decreased capacity to make charitable donations and corporate giving is even more strategic. The stress on development departments and officers of nonprofits can become seemingly insurmountable. Raising money in a recession begs the question: How can an organization rise above an economic crisis to raise essential revenue for operations?
Historically, the reaction of Board members and Executives has been to increase external efforts in fundraising. Find more donors, write more grants, develop more promotional material, spend more on marketing, hire more staff, ask more of current donors, and implement more special events. Development professionals are swimming in a sea of "do more."
"Do more" is not a panacea. Stressed staffs and a community that is financially stretched can not respond to "more". "Do better" holds much more promise. A step in the process of development efforts doing "better" is a Development Function Audit.
Organizations that examine themselves internally well before any external efforts are made are more likely to maintain their current levels of revenue with far greater potential for increased funding support. A Development Function Audit is an internal assessment of operations, practices, and methods. Often seen as a luxury of time, a periodic examination of self is anything but superfluous. It is critical to the health and growth of the organization and in financially trying times, it is essential.
Development Function Audits ask and answer questions such as:
- How do we prospect/mine for new donors? Are all public/free tools being utilized to reach new constituents?
- Is our constituent donor base clean, accurate, accessible and user–friendly?
- Are we utilizing all communication tools currently available?
- What does our development calendar look like? Is there balance in activity, people touched and who in the organization is responsible for the activity?
- Are we efficiently running an Annual Campaign? Are we doing too many mailings? Is our message timely?
- Are our Special Events lean and efficient?
- Are we positioned to launch a Planned Giving program?
- Is our Board well briefed on the development functions of the organizations and prepared to fully participate?
- Are we leveraging the skills and abilities of volunteers?
- Is the staff properly trained to do their jobs?
- Is the staff structure in alignment with the activity and goals of the department?
This is just a sample of the questions that are asked during an internal audit. By taking the step to assess the operations of the development effort, organizations provide new vision to employees and lay the groundwork for more successful fundraising.
Michelle Pagano Heck is a Senior Consultant working with Interim Management Services and Succession Planning. Contact Michelle at mheck@deweykaye.com.