Ideal Development Operation
The one word that best describes the WHY behind the Ideal Development Operation is FOCUS!
In the new world of fundraising/income development, focus is the key guiding principle – IF you want to raise more money at less cost!
The main reason most people struggle both professionally and personally is simply a lack of focus. This is especially true within nonprofit organizations. We are easily distracted and interrupted by anything and everything that has nothing to do with our main purpose or goals.
What really is the GOAL of any Development Office, Advancement Office, Development Officer, Hospital Foundation or College Foundation???
In our world, it’s to: WRITE A TRIPLE NET CHECK TO THE (BLUE) ORGANIZATION!
Our role in ‘development’ is to provide as much GREEN INCOME as possible to help SCALE and GROW the BLUE IMPACT!
It’s that simple.
What does ‘Triple Net’ mean? We borrowed it from the real estate industry, where it’s usually referencing a triple net lease. (Read more here: Triple Net)
For us, it means that ALL COST OF FUNDRAISING is deducted from the REVENUE generated by the Development Team (Green People)… therefore, resulting in a triple net (actual check) being ‘written’ to the organization. (Again, the Blue People.)
To make this crystal clear:
- This has nothing to do with the IRS, accounting, 990 AR’s or whatever.
- This has nothing to do with CASE (Council for the Advancement and Support of Education), AFP (Association of Fundraising Professionals), CRFE, etc.
- This has nothing to do with what you decide to ‘count’ or not ‘count’ relative to the cost of fundraising.
The only measure of success is determined by how much money (INCOME) you provide to your organization/institution to help them Save Lives, Change Lives, Transform Lives (IMPACT).
Put one more way, our job in ‘Development’ is to FUND THE VISION.
Here are 3 more BIG thoughts around this subject:
- Everyone in our industry knows that the absolute best way to raise the most amount of money… at the least cost… is through ‘MAJOR GIFTS’. This is where we actually sit down, shoulder-to-shoulder, on a visit with a qualified prospect and make a great presentation and ultimately present the opportunity for them to help.The cost is a ‘nickel on a dollar’ while the ‘special events’, golf outings, mailings, etc. cost is ‘three quarters.’We’ve seen far too many Development Operations spending one dollar to raise one dollar in the last few decades.
- The best way to raise $1M in the next year – guaranteed:
- Hire 10 Major Gift Officers, paying them each $100,000 a year to ensure good quality people.
- Have them trained at our Boot Camp (on how to make a visit, how to present the opportunity, etc.)
- They will each raise $100,000 in real money over the course of the year.
There it is. They just raised $1M for your organization. When you look at that silly scenario, you realize that raising money is not the goal/measurement of a Development Office.
In our world, a Development Officer should be doing a minimum of 10X and ideally 20X their respective ‘cost‘.
- ‘Cost of Fundraising’ is not some fuzzy math issue. Again, it’s not how you decide to ‘count’. It’s actually a very easy and simple equation:
R – AE = N³C
Revenue – All Expenses = Net, Net, Net Cash. (To be shipped over in a Brink’s truck to the BLUE PEOPLE.)