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Daily Nuggets: A For Impact Blog

Nick’s Note: Return on Energy


Here is a simple idea you can use to frame your thinking around your funding plan:

RETURN ON ENERGY.

This seems to be especially big for organizations trapped in a transaction-based system of special events (life-sucking, volunteer-draining) with often and incredibly low RETURN ON ENERGY.

If that describes your organization, then think about this rhetorical question: What would happen if you did away with one event. Then, you focused all that energy (time, urgency, people, resources) on building a great relationships with one or two prospects that could invest $1 million in your vision?

Remember:

  • Special Events As Fundraisers Stink- they’re not special.
  • Major Gifts: Raise the most money at the least cost.
  • 97/3: 97% of the money/investments comes from 3% of your family … focus on
    the 3%

Story:

I was with a school in Albuquerque. The bulk of the funding strategy revolved around special events … in fact, they were running FIVE events. The board was drained. It made a commitment to CHANGE the way it FUNDED the VISION. In only one week, the board generated more than $80,000 to fund student scholarships by working only a few key phone relationships. To really see the ‘WOW’ you need to know that they these events were consuming hundreds of volunteer hours and netting an average of $30K – $50K each (with a funding cost as high as 70 cents to raise a dollar – yikes).

To me, this is a wonderful example of stopping to think about the RETURN ON ENERGY, making a commitment to change and enjoying IMMEDIATE RESULTS.

Final Note:

This applies to EVERYTHING you’re doing. Take a moment today to think about your RETURN ON ENERGY.