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Four Fundraising Models for Development Strategy
Transcript of Four Fundraising Models for Development Strategy
Within a non-profit development office, there is a culture created that is reflected in the types of metrics tracked, the tools used to attract and retain donors, and how the organization and its programs are presented to prospects and the community at large. There are four main types of philosophies that dictate that culture: the Sales Model, the Investor Model, the Donor-centric Model, and the Matchmaker Model.
All four models incorporate the established best practices for development, multiple funding sources and strategies, and the fundraising cycle.
Now, to the fundraising models:
The Sales Model
Much like it sounds, the sales model is based on the idea that a fundraising is "selling" their organization to donors. Fundraisers are judged based on the quickness and quantity of closed gifts as well as the total number of gifts. This model has generally been looked down on by the non-profit world as a "corporate" view of fundraising. Instead of using connectors, development officers are encouraged to do cold calling as well as warm calling and move through the cycle with more speed than the other models.
The Investor Model
In the Investor Model, donors are treated as investors in the organization. Concrete outcomes with a measurable ROI (return on investment) are key. This model is most seen when working with corporate giving programs and are from a more high-level corporate background. However, more private and community foundations have started requiring more outcomes-based evaluations. Fundraisers are measured by the programmatic and organization outcomes, ratio of leverage gifts, efficiencies, general savings to the community and formal stewardship, such as annual reports and financial analysis.
The donor-centric model is the one most liked by modern fundraisers. Within this model, the fundraisers acts as an advocate for the external donors, working to establish new or find existing programs within the organization that match the donor's interest. This is largely based on the personal relationship built between the individual fundraiser and the prospective donor. The metrics for the fundraiser in this model are typically the number of meetings with a donor, number of on-site visits, and increasing the level of engagement with the donor. This is most used in major gift fundraising and there is a long-term cultivation needed.
The matchmaker model is one that positions the development officer as a middle man with limited bias. The fundraiser seeks to match the donors interest with an existing program, which can include going outside of the organization and/or facilitating external collaborations. In doing so, the fundraiser is matching the needs of the donor with the needs of the organization without putting a priority of the needs of either party. This generally lends to a longer term relationship and more involvement with the individual prospect in all their social commitments. The development office is positioned a valuable resource by the donor and a service provider by internal program staff. Fundraisers are evaluated by their level of engagement with the community and donors as well as the donor's level of engagement with the institution as well as strong individualized stewarding of gifts.
The tools of the trade for development officers can be used by any of there models, but are primarily found as seen below: