Coaching for Leaders: Episode 737 Summary
Title: How to Fundraise for Leaders Who Never Wanted to Fundraise
Host: Dave Stachowiak
Guest: Alice Ferris
Release Date: June 9, 2025
Introduction: The Ubiquity of Fundraising in Leadership
In Episode 737 of Coaching for Leaders, host Dave Stachowiak delves into the often daunting world of fundraising with expert Alice Ferris. Fundraising, a skill many leaders never anticipated having to master, is presented as an essential component of both professional and personal leadership roles. Alice Ferris, founding partner of Goalbusters, brings over 30 years of fundraising expertise to demystify the process and highlight its universal relevance.
Fundraising: Beyond the Simple Ask
Alice Ferris: "Fundraising is not as hard as you think it is. And you can potentially translate some of the relationship development pieces to other parts of your life." [03:53]
Alice emphasizes that fundraising extends far beyond merely asking for donations. She introduces the analogy of dating to illustrate the multifaceted nature of fundraising. Just as in dating, where building a meaningful relationship is crucial before making an ask, fundraising requires cultivating genuine connections with potential donors.
Key Points:
- Relationship Development: The bulk of fundraising (90-95%) involves building and maintaining relationships.
- Initial Contact: Identifying and connecting with qualified prospects is critical before the actual request for funds.
- Cultivation and Stewardship: Engaging in two-way dialogues, understanding donor motivations, and ensuring ongoing support are essential for long-term success.
Setting Realistic and Tiered Fundraising Goals
Alice Ferris: "We set goals that aren't necessarily achievable, and that... becomes demoralizing for the people who are doing the fundraising." [10:59]
Alice critiques the common practice of setting fundraising goals based solely on budget shortfalls. Instead, she advocates for a tiered approach:
- Must-Do Budget: The essential funds required to fulfill the organization's core mission.
- Steady State Budget: Funds needed to maintain current operations and programs.
- Aspirational Budget: Funds aimed at expanding services, innovating, or addressing new community needs.
This structured approach allows organizations to achieve incremental success and fosters a more sustainable fundraising strategy.
Balancing Fundraising with Organizational Expenses
Alice Ferris: "We are notoriously bad at doing more with less... the biggest challenge on the expense side is not investing in people." [14:13]
Alice highlights a critical pitfall in the nonprofit sector: the reluctance to invest in dedicated fundraising staff. Often, organizations stretch their existing resources by adding fundraising duties to roles already focused on program delivery. This not only overwhelms staff but also undermines the effectiveness of fundraising efforts.
Solutions:
- Invest in Dedicated Fundraising Roles: Ensure that there are individuals solely responsible for developing and maintaining donor relationships.
- Avoid Overburdening Staff: Delegate fundraising tasks to prevent burnout and maintain focus on core responsibilities.
The Necessity of Dedicated Fundraising Roles
Alice Ferris: "Fundraising is a relationship development process... If you drop the ball on a relationship, they'll give you grace a couple of times, but if you don't pick it back up... you're going to chase the donor away." [27:04]
Alice argues that fundraising requires specialized skills and consistent attention, which is best managed by dedicated staff rather than being dispersed among various team members. She warns that when fundraising is hastily added to other roles, it often leads to neglected donor relationships and decreased retention rates.
Key Insights:
- Donor Retention: Approximately 42-43% of donors continue supporting organizations beyond the first year. Dedicated fundraising roles are crucial for improving these statistics.
- Consistency is Key: Maintaining ongoing communication and relationship-building efforts is essential for long-term donor loyalty.
Effective Communication and Transparency with Donors
Alice Ferris: "If you have a difficult health diagnosis, yes, of course I would tell my immediate family... Nonprofits should communicate transparently with their donors." [18:27]
In times of uncertainty or crisis, Alice advocates for transparent communication with donors. Just as one would inform close family members about personal challenges, organizations should keep their donors informed about their struggles and strategies. This openness fosters trust and prepares donors to support when possible.
Strategies:
- Transparent Updates: Share relevant information about organizational challenges and ongoing efforts to address them.
- Engage Donors as Partners: Treat donors as integral members of the organization’s community who deserve to be kept in the loop.
Defining Roles: Connector, Expert, and Closer
Alice Ferris: "Connector is the person connected to everybody... Expert builds trust through knowledge... Closer makes the ask." [27:50]
Drawing inspiration from Malcolm Gladwell's "The Tipping Point," Alice outlines three key roles essential in the fundraising process:
- Connector: Utilizes a strong network to introduce and connect potential donors.
- Expert: Provides in-depth knowledge and testimonials to build trust and credibility.
- Closer: Responsible for making the actual fundraising ask, ensuring it aligns with the established relationship.
Alice suggests that while volunteers can excel in connector and expert roles, the closer role is typically best handled by dedicated staff members to maintain professionalism and consistency.
Engaging Volunteers Effectively in Fundraising
Alice Ferris: "Most volunteers would be better suited in the connector and expert roles." [32:15]
Volunteers play a vital role in fundraising, particularly in connector and expert capacities. However, Alice cautions against relying on volunteers for the closer role, as it often requires a level of skill and consistency better suited to trained staff members. Properly leveraging volunteer strengths enhances overall fundraising effectiveness without compromising donor relationships.
Recommendations:
- Utilize Volunteers for Networking: Leverage their ability to connect and advocate for the organization.
- Assign Specialized Roles: Ensure that the critical task of making the ask remains with those professionally trained to handle it.
Conclusion: Embracing Fundraising as a Leadership Skill
Alice Ferris and Dave Stachowiak conclude the episode by reinforcing the idea that fundraising is an integral leadership skill, essential for the sustainability and growth of any organization. By understanding the multifaceted nature of fundraising, setting realistic goals, investing in dedicated roles, and maintaining transparent communication, leaders can transform fundraising from a dreaded task into a powerful tool for organizational success.
Notable Final Thought: Dave Stachowiak: "Fundraising just gets added to the list of someone's responsibilities... it's a relationship development process." [27:04]
Resources and Next Steps: Listeners interested in enhancing their fundraising skills or seeking personalized advice are encouraged to connect with Alice Ferris via LinkedIn for complimentary consultations. Additionally, the Coaching for Leaders library offers a wealth of related episodes to further explore effective leadership and fundraising strategies.
For more insights and episodes, visit coaching4leaders.com.