Team

The Funding Roadmap: Align Your Story, Team and Sales Process

The For Impact Funding Roadmap has been built, tested, and refined in working with thousands of organizations to raise over $2Billion. Though each organization is unique, we believe the Roadmap has universal application – Whether you’re a startup, a college running a large campaign, or an international NGO – every funding initiative needs a STORY, a TEAM, and a FUNDING PROCESS.
[Download the PDF.]

Here are some quick thoughts on the Roadmap. [We’re also leading a teleseminar this Tuesday with more explanation, examples and help to APPLY the Funding Road Map to your funding. Register here.]

Design your STORY

The funding roadmap begins with STORY.  A great story is anchored in hope-filled purpose, simplifies what you do, and serves as a litmus for action.

  1. Simplify your MESSAGE. Message is what people HEAR, not what you SAY. What do we want people to HEAR? Ultimately, this should be a message about CHANGING, SAVING, or IMPACTING lives.
  2. Create your FUNDING RATIONALE. A Funding Rationale is why you need the money, and what you will do with money. Another way of thinking about this is around defining the ask. (Most organizations don’t have a good ‘ask’.)
  3. Design your PRESENTATION. The ‘ASK’ is an experience. We actually stop to think about the complete experience, from predisposition, to the environment, to the materials.

Really important point about STORY. This is not just a ‘funding thing’ – It guides your IMPACT and provides MEANING for your TEAM.  Organizations so often enter a cycle of strategic planning – I wish there was a norm to enter into a cycle of STORY planning!

Develop your TEAM

Jim Collins says, “First WHO, then WHAT.”  With our Funding Roadmap we might say, “First WHY, then WHO, then WHAT!”  

  1. Commit to SALES.  Every organization needs to STOP and make a commitment to sales. What does this mean for your team? For your organization? For your strategy/resources?  
  2. Engage LEADERSHIP.  Leadership needs to be bought into the STORY and likely even the source of the STORY. Leadership also needs to be bought into the model.  
  3. Model TEAM SELLING.  This is about defining roles and responsibilities for staff, board and champions.  

    Important note: In a true sales model, your board is not responsible for fundraising! In a true sales model there is a role for board members that is very different from saying they are responsible for fundraising.

FUND your VISION

  1. Identify/ Prioritize/ Strategize your PROSPECTS.  Prospects. Drive. Everything.
    There is a lot to say on prospects (that’s why we have a whole guidebook) but here are some key points:

    • Focus on your top prospects
    • Focus ‘top-down’
    • Present the Opportunity (And don’t make decisions for your prospects!)
    • When building a strategy ask this question, “What would it look like to maximize this relationship?”
    • Maximize relationships at this given moment
  2. Just VISIT. In the words of the prolific sales trainer, Brian Tracy, “Spend more time with better prospects.” We’ve been teaching this for years. There is so much value in the old maxim, “JUST SHOW UP.”
    The visit is the entire context for the ASK. It has three parts:

    • Predisposition
    • The Presentation
    • Follow-up
  3. Just ASK. This is kind of an alpha/omega to everything we teach.

Finally, it’s worth tying this all together as it relates to the For Impact Point of View:

Impact Drives Income.  

Impact is about your STORY.  

You need a PROCESS to make the INCOME happen.  

And, PEOPLE drive everything!

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The Price of Management Debt

“Every really good, really experienced CEO I know shares one important characteristic: They tend to opt for the hard answer to organizational issues. If faced with giving everyone the same bonus to make things easy or with sharply rewarding performance and ruffling many feathers, they’ll ruffle the feathers. If given the choice of cutting a popular project today, because it’s not in the long-term plans or you’re keeping it around for morale purposes and to appear consistent, they’ll cut it today. Why? Because they’ve paid the price of management debt, and they would rather not do that again.” – From the Hard Thing about Hard Things by Ben Horowitz

I’ve never heard anyone talk about ‘management debt’.  What a powerful concept! It smacked me between the eyes! This is a powerful frame for leaders because it puts the notion of DEBT on indecision. Decision/indecision doesn’t just have a ‘cost’; it has a ‘debt’! It allows us to ask, “What debt will I incur in NOT dealing with this tough issue?”

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The #1 Measurement for a Successful Development Operation

Reposting one of our most popular nuggets from Tom about how to measure success and productivity in your Development Operation.

RETURN-ON-INVESTMENT: What every Investor wants from their investment and what every For Impact organization should want from its development/advancement/fundraising effort.

I feel this concept is completely absent or totally misunderstood from our sector – Something I want to help change.

With all due respect to the industry, I just don’t get it. An organization invests money and resources in their development/fundraising operation (whether it’s a one-person shop or 50 people in the college advancement division) but doesn’t measure that RETURN-ON-INVESTMENT. I’m not sure how else you would measure productivity or success without making ROI the #1 barometer.

ROI is very simple to calculate. It’s a numerator/denominator math problem:

  • Here’s how much money we Raised (the numerator).
  • Here’s how much money we spent/Total Expenses (denominator).
R – TE = NET, NET, NET CHECK/FUNDS to support IMPACT!

In the For Impact approach, the development function ‘write checks’ to the IMPACT.

R ÷ TE = ROI and COST OF FUNDRAISING.

For example, if you are a hospital foundation raising $2M a year in ‘fundraising Revenue and your total expenses are $1M then your ROI is 2X or 100%; and your cost of fundraising is 50%.

There are two ways to increase your ROI and decrease your cost of fundraising:

  • Increase the Numerator (Revenue)
  • Decrease the Denominator (Expenses)

In our For Impact world, our own benchmarks are as follows:

  • 3X is minimum model/benchmark.
  • 4X is great.
  • 5X is something you should be very proud of.

If you’re running a Campaign within an existing development operation or as a separate initiative, I believe the cost of fundraising should be a nickel (five cents on the dollar.) That would give you a 20X ROI.

If you are a For Impact leader, senior staff, executive director or a board member, I hope the above gives you some sense of comparison.

Note: One last example of why ROI is a completely different level of thinking than simply “This is how much money we raised this year.” I can guarantee a small not-for-profit organization an additional $100,000 this year – Hire two ‘major gifts officers’ at $50,000 apiece. Send them to For Impact Boot Camp. I guarantee that they can go out and raise $100,000 in the next year (combined.)Same thing would be true with a larger organization at $1M. Hire five major gift officers at $200,000 each. I’m fairly confident if they followed any sales process they would each be able to raise $200,000 in the next year for a total of $1M.

Ok, I think you get the point.

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