Nonprofit fundraising doesn't work anymore. Here's how to take a more strategic financing approach to create a sustainable financial model for your nonprofit.

1. 7 Ways to
Kiss
Fundraising
Goodbye
©Social Velocity

2. Fundraising
doesn’t work
anymore…

3. Competition is
Growing
More Organizations
1.4 million nonprofits in US, up 19% since 1999
More for-profit social change orgs
Less Funding
Private donations level over last 30+ years
Government spending cuts at every level

4. But Financing
brings
your nonprofit
sustainable funding…

5. Financing is...
A long-term strategy for bringing enough money in the
door to achieve your mission.
“How much should we raise to
accomplish our goals?”
“How much can we accomplish
with what we can raise?”

6. Board, Staff, Donors
Money Strategy
Infrastructure
Sustainability
Funding Sources
Programs
Messaging
Fundraising Vs. Financing
Worn out Excited, engaged
Annual, only programs Long-term, all costs
Inadequate Fully funded
Weak
Few
Strong
GrowingFlat or declining
Diverse, Robust
Community changeNonprofit’s need

7. 7 ways to move
from Fundraising
to Financing…

8. Nonprofit’s
Financial Engine
Nonprofit’s
Core
Competencies
Nonprofit’s
Mission
1. Connect Money
& Mission
Nonprofits
will be most
successful in
this sweet
spot

9. Create a financing plan that…
Ties to your strategic plan
Encompasses 3-5 years
Includes revenue & capital goals

10. Revenue
Ongoing
Supports day-to-day
BUYS services
Vs. Capital
One time
Supports infrastructure, development, systems
BUILDS the nonprofit organization

11. Raised $350K from 6 donors
New database, website
Staff & training
Market research
Marketing materials
Results
Dollars up $1.6 M (40%)
Donors up 36% to 19K+
2. Raise
Capacity Capital

12. A board member
can raise money
by…
Advocating for
government $
Hosting a friend-raiser
Recruiting an
in-kind service
3. Involve EVERY
Board Member

13. A board member
can raise money
by…
Providing info on
prospects
Creating an earned
income business plan
3. Involve EVERY
Board Member

14. A board member can
raise money by…
Advocating for
government $
Thanking a donor
Negotiating a lower
vendor price
3. Involve EVERY
Board Member
And much more…

15. Sources: Nonprofit Almanac and Giving USA
4. Diversify
Funding
Sources of Nonprofit Sector Dollars
Don’t rely too much on a
small piece of the pie

16. 5. Calculate the
Cost of Fundraising
Net Revenue
Total $ Raised − ALL Expenses
Cost to Raise $1.00
ALL Expenses ÷ Net Revenue

17. $20,000 Event
Net Revenue
Income = $20,000
Expenses = $15,000
Direct = $8,000 (venue, food, band)
Indirect = $7,000 (staff & board time)
$20,000 − $15,000 = $5,000 Net Revenue
Cost to Raise $1
$15,000 ÷ $5,000 = $3.00 CTR
It cost $3.00 to raise $1.00

18. A donor
invests in a
nonprofit with
shared values
The nonprofit
translates
that support
into change
to a social
problem
Community
change
occurs
Your nonprofit is just
an intermediary
6. Message
Impact

19. The Message of Impact
comes from a nonprofit’s
“Theory of Change”…
Inputs
($, students,
teachers, st
aff, board)
Activities
(read to
students 2x
per week)
Outputs
(#
students, #
hours, # of
books
given)
Outcomes
(students stay
in school, do
better in
school, gradua
te from
school)
Impact
(stronger
schools, saf
er
streets, bett
er educated
citizens)
Nonprofits
usually stop
here
But this is
where it
gets really
compelling

20. 7. Move From
Push…
Push: Create messages and hope people act
(Direct mail, press release, gala, advertising…)

21. …to Pull
Pull: Create space for people to engage
(Social media, friend raisers, alliances…)

22. In order to move from
Fundraising
to Financing…
1. Connect Money & Mission
2. Raise Capacity Capital
3. Involve Every Board Member
4. Diversify Funding
5. Calculate the Cost of Fundraising
6. Message Impact
7. Move from Push to Pull

23. Learn More…
Build a Nonprofit
Financing Plan
Step-by-Step Guide
Download Here

24. Other
Nonprofit Tools
E-books
Bundles
Webinars
Guides
socialvelocity.net/tools
©Social Velocity