Fundraising Success Builds on the Right Funding Model
Authored by Peter Kim, Gail Perreault, and William Foster, of The Bridgespan Group, a nonprofit advisor, the bookat 72 pages, actually more of a bookletoutlines steps nonprofits can take to identify a funding model appropriate to them based on their current funding strengths and weaknesses, and then fashion a plan to support long-range funding goals.
The authors don't mince words: Most nonprofit leaders spend an enormous amount of time on fundraising, but typically they have little idea how they will secure the money they need over the next five years.”
Effective fundraising flows from an intentional funding model, without which even the most brilliant program model can suffer, the authors contend: Its all about investing in your organizations funding strategy with the same intentionality as you invest in its program strategy.”
When theyre small, nonprofits often rely on a core of committed donors or cobble together funds from different sources. But, the authors note, as nonprofits grow, personal relationships and catch-as-catch-can wont support larger scale needs. Thats where a funding model comes in.
So, what is a funding model? The authors define it as a methodical and institutionalized approach to building a reliable revenue bases that will support an organizations core programs and services.”
Finding Your Funding Model defines six steps to identify and develop the right funding model:
Organizations with annual budgets below $3 million, the authors say, still benefit by identifying promising funding types and investing in them by, for example, hiring a chief operating officer to free up the CEO for more fundraising activities, hiring development staff, or creating or enhancing a fundraising board.
Regardless how large or small a nonprofit may be, long-term fundraising effectiveness correlates to how much the organization invests in the activity. At the very least, settling upon a funding model enables nonprofits to methodically assess each opportunity, as opposed to seeing every funding lead as a good lead, the authors write.
Detailed appendices provide granular detail on work plans, implementation, and research, which by themselves provide valuable guidance to nonprofits looking to better chart their financial future.
Finding Your Funding Model can be downloaded from The Bridgespan Group.
Reviewed by Peter Lowy