Nonprofit’s Great Disruptor: Embracing Risk
Guest Post by Sherry Quam Taylor
Here’s something I ask all of my clients and potential clients to consider (get ready, it’s a mind flip!):
The revenue trajectory of your organization has way more to do with the leadership's comfort level with investing in spending than some of their revenue-generating ideas.
People come to me all the time saying:
We’re not growing.
We need more money.
We just can’t seem to get ahead.
But, too often they haven’t been truly honest with themselves. They haven’t considered if they’re spending enough money to equip their teams to make more money.
You see, when you want to raise more money for your nonprofit, this is simply self-sabotage. And often, this approach tends to yield mostly restricted revenue—a double whammy.
So, how would you secure more unrestricted revenue, so you can invest in the growth of your organization. Not just from a “What are the needs of this program?” perspective, but also in terms of operational expenses, administrative expenses, and my favorite word . . . OVERHEAD.
Where do we start?
With the numbers.
For example, how would you ever put together a fundraising plan—or know which activities you need to be doing all year long—if you don’t know you have a $14 million need? How would you ever raise to a balanced budget?
Successful organizations, successful fundraisers know exactly what they need. And, they know how to align their time with the types of donors who can actually fulfill that need.
It’s non-negotiable: You have to know your true budgeted need. And then you have to create a true Financing Plan of how to hit that number. This is where fundraising teams go wrong.
What else does that involve?
Investing in your people.
Many organizations I’ve worked with have an entire advancement team supporting their fundraising efforts… team members who have “grown up” through the ranks. They’re great grant writers, or event planners. People who are experts at securing contracts. Digital marketing mavens. But, they’ve never had to know how to scale an individual giving program.
You don’t want to lose their expertise, so it takes investing in their professional development; skills development. Because let’s be honest. It’s rare to find someone who says, “I went to school for major gift fundraising, and I know exactly how to do it.”
(Even though that would be the dream, wouldn’t it!)
Next…
You must invest in turning your fundraisers into high-revenue generators.
A lot of leaders I work with are in the mindset of “the sum of parts drives the whole mission.” So, all the tactical activities like golf outings and galas, or a direct mail + digital marketing campaign, are working to bring in the big bucks. When, in fact, it should be the overall (finance/budget) picture strategizing the operations.
So… Is everything you’re doing/budgeting for aligned with your business plan? Can you think about your budget as a financing plan that funds your organization?
Then, it’s time to…
Photo by Loic Leray on Unsplash
Embrace Risk
It’s easy to give in to the status quo. We do it all the time in life, even when we know it’s keeping us from achieving our goals.
But, embracing risk is the great disruptor (in a good way, of course). This can come in many forms, but foundationally, it really starts with thinking about:
What you should stop doing. What’s not helping anymore?
What can you start doing that is different, and beneficial?
“If you’re dedicating 90% of your budget to programming, but your revenue is only inching along, something needs to change.”
There’s no miraculous event that’s going to bring about a surge in revenue.
What if you embraced the risk of bumping that figure down to 75% for a season? Yep, 75%.
As an investment in your organization’s growth—an intentional year or two of investing in growth—you can actually double your revenue (My clients do this all the time).
Ultimately, you need to shift your fundraising plan into a financing plan.
But, you might need to shift your funding model and mindset, first.
When you’re ready…there are three ways you can connect with Sherry:
👣 Follow me on LinkedIn where I give away insider info every week - the same lessons I teach my clients about attracting larger gen-ops dollars and adding 7-figures + to their bottom line.
🍎 Read my NEW GUIDE! THE TRUTH ABOUT GIVE/GETS :: Top 5 Reasons Your Board’s Give/Get Is Leaving Thousands (Sometimes Millions) on the Table. See how limiting board members to the Give/Get model restricts gifts in so many ways and keeps your staff from reaching their full fundraising potential. Here to get it.
📈 Work with me to diversify your revenue, scale your charitable dollars, and fully fund your growth budget // If you’re a business-minded CEO already GROWING but still need more gen-ops revenue from individuals, family foundations, and businesses, just email (Sherry@QuamTaylor.com) with the subject line “grow.” Tell me your budget next year and why you need to scale.
Sherry Quam Taylor’s unique approach and success combine her background of scaling businesses with her decade-long experience advising nonprofit leadership teams. With out-of-the-box principles, a myth-busting methodology, proven results, and an ability to see solutions to revenue problems that others overlook, her nonprofit clients regularly add 7-figures of general-operating revenue to their bottom line.