Understanding the world of nonprofit management can be a mystifying experience for many well intended individuals. Most nonprofits form because:

• They have an idea that is charitable – They have gained the privilege and the responsibility from the IRS to operate an organization for the good of the public, agree to abide by standards set for that industry and in return are given a "tax exempt" status.
• They agree to be tax exempt because they will perform a charitable purpose in return for the trust of the public.
• A group or individual of like minded citizens form a board of directors, organize themselves, develop a mission and set about fundraising for that purpose.
• The board’s primary job is to assure fiduciary responsibility: ethical practices for all operations of which fundraising and accountability are two primary factors.
• Most believe that because they now have "nonprofit" status, that the money will flow to them, like manna from heaven through a variety of sources. They have all heard about "grants" and they have all heard about "sponsorship" opportunities which may now be afforded to them.
• They want to solicit a fundraiser to make rain for a "cut of the take."

What well intended individuals may fail to realize is that similar to your legal services, your accounting services, your printing services, contractors and other "professionals" that you may engage professional fundraisers are eerily similar to them: training, years of experience in most cases, memberships in professional organizations to keep up with trends and subscriptions to key publications for best practices.

Overhead costs include their own proper licensing which they must secure with the regulatory bodies. Assuring your registration with all of the regulatory bodies so your nonprofit status will not be revoked AND more importantly that You will be Successful in your mission are also critical to their performance. You are engaging them in a huge task - finding the money to help you operate your buildings, your programs and your services.

It's money that will drive your success. Without the professional and/or the money, the sad truth is you are going to keep your dream paralyzed.

Here are some interesting statistics that were presented recently in a webinar sponsored by the Philanthropy Journal and delivered by H. King McGlaughon, Jr. J.D. The title was "Key to Success in the Changing Philanthropy Marketplace" and was a summary of a survey conducted by Dr. McGlaughon, who is a Managing Executive for Wachovia Wealth Management and the author of the report.

Let me preface his remarks by stating an astounding figure on which you need to reflect. According to Guidestar, there are 1.5 million nonprofit organizations in the United States as of 2006. You are now in that mix. What makes you special?

Here’s his information:

In 2006 Overall Contributions were $295 Billion, including grants. The initial breakdown is:

You are now among the 1.5 million nonprofit charitable (charitable refers to those who have attained or are in the process of attaining their 501(c)(3) status) nonprofits looking for money in this equation.

Here’s where they gave the $295 Billion:

Depending on which industry you fall under, you should now be able to determine the importance of why you need a comprehensive plan of attack for fundraising before you go after it in a piecemeal fashion. It is not a "cut of the take" initiative.

Just as your lawyer, your designer, your accountant and others with whom you have consulted do not "take a cut" for their services, it is deemed unethical by the Fundraising profession for anyone to entertain that concept and they expect to be paid for the value of their services. (htttp://www.afpnet.org/ethics)

"We live in an era that demands increased accountability and effectiveness from every organization," from Why Nonprofits Fail: Survival of the Smartest by Stephen Block.

In a recent article in the Stanford Social Innovation Review, Paul Shoemaker, President, Social Venture Partners International, strongly suggested "that one hard lesson learned is great people alone do not guarantee success. Without sufficient infrastructure and consistent leadership, many nonprofits do not get – and stay – off the ground.

Member-relationship management systems, measurement tools, workbenches and avoiding leadership vacuums (attracting both aspirational and operational leaders) are all critical component to success – especially to those founders who often recede after they complete their initial heavy lifting."

So the need to aspire to be the best, to put yourself out in front of those limited corporate and foundation grantmakers becomes even more evident. But what’s more compelling is your dependence on building relationships with individuals.

For those venturing to raise significant dollars in a multifaceted campaign, are you tapping into those four critical areas listed above or are you going for the supposed gold, and seeking grants only, where your competition is fierce?

Don’t have time to plan? Don’t expect much return. What are you waiting for?

Identify your potential multiple streams of income. Are you starting with individuals, those whom you could easily lure into your mission? Do you have that member-relationship management system in place? How about measurement tools? Have you identified what your tangible resources are?

Have you considered:

• Individual donors, memberships
• Operational, endowment, or capital funding
• Government, foundation, corporate funding
• Special projects, annual appeals
• Grants, collaborations or partnerships
• Sponsorships, special events
• Contract management, profit centers
• Major Gifts, sustaining memberships
• Giving Circles

How about your intangible resources? They become cyclical:

• Community Visibility, allows
• Community Awareness, which manifests
• Community Understanding of Your Mission.
• Volunteer Recruitment, permits
• Board Development (auxiliary boards, committees) who attract
• Donor Cultivation through
• Client/customer/member involvement

Please do NOT forget to include the ever present newcomer e-philanthropy and the effectiveness of social marketing. NONE of these stand alone; they are all an integrated approach to sustaining your future.

Your very first step is your feasibility study. Martin L. Novom, CRFE has stated in The Fundraising Feasibility Study: It’s Not About the Money:

"You KNOW YOU’RE READY WHEN…

• Your organization is prominently recognized and valued in the community
• Your needs are well planned and presented in a compelling case for support.
• Your feasibility study is completed, reporting favorable results of fundraising potential and leadership support
• Your donor constituency is well informed, interested, and involved in your organization
• The board and administration are committed to a successful campaign
• You have sufficient staff and budget resources to lead the campaign over 18 to 24 months
• You have identified, qualified, rated, and screened a strong field of major-gift prospects
• You have the ability to recruit strong volunteer leaders to chair important divisions of your campaign
• You have allowed adequate time to plan and conduct the campaign."

A compelling case is not an idea; it is not a reference to successful acquisition of the nonprofit charitable status, it is a well scripted, well rehearsed plea.

The right words delivered at the right time to the right people. It is targeted, purposeful and intentional.

It is clear and precise, with answers to all of the potential questions.

It is timely and time-planned with sufficient time for evaluation and re-shifting of resources if and when necessary. A feasibility study of some fashion is needed to support any major asking campaign.

If you want to have a professional well funded organization, you must be professional.

Look at who you are up against. 1.5 million other nonprofits are all after the same money.

If you can’t afford staff, and your volunteer force is drained and running on empty, consider your options. Engage a professional to assist you with each of these approaches.

It is not easy. Just like George W. Bush often says, "It’s haarrrd work." A good plan and an even better implementation will afford you the greatest success. Fundraising professionals are there to assist you every step of the way. Overall, they are NOT nonprofit and expect to be treated just as any other service you are contracting. Consider the chore you are asking them to perform; consider their value to you. Consider options. How soon do you want to begin?