A lean machine?
February 2010
Hans Wolters explores the importance of combining organisational efficiency with good communication to ensure a successful fundraising programme
Charities know that fundraising is one of the most challenging tasks they face. At the same time, it is one of the most vital. After all, what services can charities and non-governmental organisations (NGOs) deliver if they themselves are not sustainable? So, what is the best way of supporting your organisation’s fundraising programme? I would argue organisational efficiency, transparency and lots of communication. Let me explain.
First impressions
From the very first time I tried my hand at fundraising – when selling Christmas cards as a child in aid of UNICEF in a small city called Assen in the Netherlands in 1960 – I felt inspired by doing something very concrete and tangible in support of a great cause.
In fact it was my father, who ran the UNICEF Christmas card campaign there at the time, who introduced me to this type of fundraising. He told me what I needed to know about selling the cards, selecting the most promising neighbourhoods, keeping records of cards sold and money received. At the dinner table, we talked about UNICEF’s projects and what the money would achieve. As young as I was, I felt directly involved and had the feeling that the money I collected could bring direct relief to other children who were so much worse off than I. It was a great and inspiring experience – one that has stayed with me all my life. Many fundraisers have similar stories to share. Our job as fundraisers is to impart this enthusiasm and commitment to supporters (and volunteers), educating and inspiring them about the amazing work of the organisations we work for, while making the ask.
At the same time, our enthusiasm, idealism and commitment should not prevent us from looking critically at our organisations. Are we delivering tangible results? Are we efficient? Can we do things better? While this might seem self-evident, many organisations do not take the time to really look into these questions. That is a great shame because, in my view, only those charities that combine commitment with organisational efficiency and passion with professionalism, will in the long run be able to convince donors and bind the wider public to their cause. This is true for charities in general and it is particularly evident for fundraising.
Coming from a Dutchman, it may be no surprise to hear that what I consider to be one of the most essential elements for a successful fundraising strategy, is an efficient organisation. In other words, a professionally-run, well-oiled operation where each individual understands the part they play in achieving the organisation’s mission.
Return on investment
In the same way as a shareholder expects to know what is to be done with his or her investment, charity supporters have a right to know what is going on in their charity. Charities have to be ready to demonstrate that they offer value for money at all times. Supporters expect that the organisation they choose to support is operating efficiently and that they are kept sufficiently informed about what is going on within the charity. Fundraisers should keep this in mind, as we are on the front line dealing with donors and potential supporters. While the organisational structure itself may not be our direct responsibility, we do need to make sure that we have the right organisational set-up behind us. Otherwise an already difficult job becomes almost impossible.
What do I mean by an efficiently run organisation? It is an organisation which is able to meet its mission and objectives to the maximum with a minimum of resource input (administrative, overhead, infrastructural costs, staff levels etc), of course without compromising on quality, social and environmental responsibility.
Mind you, this is not about slimming down to the extremes. It may be that the minimum resource level required to achieve the organisation’s mission is greater than that which is already invested. It might mean adding staff to the fundraising or marketing department or to the section managing the database. It might be about more people doing the day-to-day work and less managers, or introducing a flexible staffing structure that enables people to be deployed quickly to those parts of the organisation which need extra support as need arises. Still, every staff member should constantly ask themself can I have the same or even better results by doing this another way? Better yet, could this method save the organisation time, money or energy?
In order to operate efficiently, an organisation must have a self-aware senior management at its helm, which designs clear, realistic work plans, provides the organisation with the right kind of people and skills, and creates an open and critical office culture.
Take a look at yourself
In relation to fundraising practice, organisations must review their strategy continuously, adapting flexibly and fluidly to change. Just because one technique has been part of the fundraising strategy for the past decade, it doesn’t necessarily mean that it should be there for the coming decade. Fundraisers should look to their own organisation, to others within the sector (and beyond) and to the wider marketplace to ensure that they have selected the most appropriate and efficient strategy. Is the supporter database segmented and fundraising activity timetabled accordingly so that the right kind of ask is delivered through the right mode of contact (e.g. letter, telephone, e-mail) at the right moment?
It is easy to see when things go wrong. From direct mail shots containing errors to a sloppily organised event and, ultimately, unachieved targets and declining income levels. But what really matters is that the organisation has the right internal culture to address any such issues, that we create true learning organisations. So we should always schedule an evaluation after a mailing, a telephone campaign, a seminar, a charity run. What went well, what went wrong? Why? What could have been done differently? Learn the lessons and apply them next time.
Too often, failings lie with poor co-ordination or communication. Co-ordination across the organisation is essential to ensure effective fundraising and timely delivery, that will prevent any one department having to wait for another in order to complete a campaign. Organisations are only as strong as their weakest link. Good internal communication is vital to avoid island thinking (where everyone is glued to their own computer without thinking about what other parts of the organisation need) and to commit every staff member to the need to raise funds.
An efficient organisation need not be afraid of outsiders (auditors, journalists, major donors alike) looking at its organisation and questioning how it is run. As such, it can demonstrate transparency and accountability to donors. With the public increasingly demanding greater transparency from charities, it is a huge advantage – not to mention an excellent opportunity to educate the public about your charity, as well as building understanding of how modern day charities and fundraising works.
Transparency
I am in favour of maximum transparency with donors, and I always advise against hiding problems. Donors will accept when things go wrong provided that we can credibly reassure them that the problems have been identified and are being addressed. What is more, the growth in online comparison and benchmarking tools enable the public to compare organisations and – quite simply – no organisation can afford to be left behind. Transparency – a buzzword in the sector over the past decade – is simply a case of communicating well, openly and honestly with supporters and the wider public. And, I firmly believe that openness and transparency will be appreciated and rewarded.
While working as deputy director at the European Council for Foreign Relations (ECFR) [1], I was privileged to be part of a team that managed to double the organisation’s income over a two-year period. Combining efficiency with good communication was the key. We focused upon energising and exciting donors about the work that we were doing. We put our time and energy into an incredibly strong communications strategy to ensure that potential supporters knew what we were doing, what we wanted to do and how this would benefit people.
Good communication has never been more important than it is now. While donors aren’t sitting in the driving seat, they are more and more informed about your organisation, other organisations (locally, nationally and internationally) and they certainly are in control when it comes to their donations. They are able to pick and choose which organisation they give to with relative ease, changing how they donate, the amount and which charity they support with just one click of the mouse.
If we fail to communicate effectively with our donors and engage them with the organisation, they will move on. The time that you can expect an individual donor to support you for an average of seven years is over. Fundraising is increasingly volatile. Donors are becoming ever more demanding and charities must respond to this. The recipe for success must see that charities have the right set-up to actively manage donor relationships, communicating regularly and in a tailored way to each supporter, building their engagement with the organisation every step of the way.
Donor engagement
Therefore, let’s not be afraid of a critical assessment of our organisations. Let’s address our weaknesses. Charities – like so many businesses – can often be resistant to change. We can’t afford to bury our heads in the sand or let pride stand in our way. If things need changing, we must be bold and quick to react. It is my firm belief that, only by doing so, will we succeed in delivering more in terms of the charity’s mission, that we will raise more funds and that our supporters will continue to support us.
Author: Hans Wolters
Hans Wolters is the chief executive of The Resource Alliance, a global capacity building organisation well known for hosting the annual International Fundraising Congress. Previously, Hans has held leading positions at several international NGOs including WWF International and the European Council on Foreign Relations, developing organisational strategy, initiating new campaigns and effective fundraising programmes.
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