BLOG POST

Why you should invest in "charity overhead"

Building internal capacity to fundraise well.

Article from the Growth & Co Blog   |  Posted on April 6, 2023 by Larissa

As you know, successful fundraising requires far more than just asking donors for donations. It requires an organization's internal capacity to manage all the systems, processes, and people that make those donations possible. 

Concerns often arise when an organization considers working with a fundraising consultant to guide their staff through enhancing their fundraising operations. Here are some that we hear frequently, and what our clients have come to believe during or after our work together. 


1) 'It's too expensive!' Past clients have been worried to spend money on things considered to be "overhead" expenses like consulting, training, and coaching because they think stakeholders like to see a majority of the money going directly to services being provided. 


The truth is, those services can't be provided unless the people delivering those services get paid, and organizations can't attract talented people unless they get paid well. If leaders know how to explain to their donors, colleagues, directors, and other stakeholders that the ability to conduct an audit on fundraising operations and build a fundraising plan that can evolve as long as the organization exists, donors are more likely to be excited to build internal capacity rather than upset about the use of funds. (Thankfully, more funders are willing to fund initiatives like these post-COVID.) 


Messaging can be drafted to address this misperception among stakeholders if it truly is one. The truth is, organizations cannot grow without the internal capacity building we can create together. While many stakeholders have started to understand the importance of investing in organizational infrastructure and sustainability to ensure more charities are prepared for emergency situations, at times a little education can go a long way for some nay-sayers. 


2) 'Fundraising staff may leave so we shouldn't invest money in training and coaching.'


While it is true that the nature of recruiting for fundraising positions is challenging, focusing on building internal capacity through strong systems, processes, and planning will make recruitment and turnover easier. It can create an environment where any intelligent person with communications skills can be trained and coached to perform the tasks associated with maintaining the actions that create fundraising growth. The plans, systems, and processes put into place will work regardless of someone new fills a position in the future, so worrying about one trained team member being able to derail the fundraising department isn't necessary. 


3) 'It will be too much work!' Some nonprofit leaders think that they are the person who has to lead the project, and their time isn't well spent doing that when they have so much else going on.


The CEO, President, Executive Director, Chief Fundraiser, etc. doesn't need to invest more time in learning how to establish and maintain the organization's fundraising department. We can work through our consulting process with one key contact in a way that lets the leadership of the organization participate minimally while also achieving maximum results. If you don't have a fundraiser on staff and simply need to get your time back, Growth & Co. can also conduct the audit, build the fundraising plan, and craft a case for support in a done-for-you way that gets work off your plate. 


4) 'The consulting project or training and coaching program will take resources away from other priorities!' (Unsurprisingly, often team members managing other departments voice this concern).


Although leaders of nonprofit organizations oversee many different departments, without funding, none of those departments can function. It is vital to remember that setting up the fundraising department to be efficient and raise more money is an organization-wide win. A strong fundraising department will have continual financial benefits for the other departments moving forward as long as the organization exists.


If any of these concerns exist for you, reach out to discuss how we can minimize these challenges for your organization! 


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