Debunking the Myths of Fundraising
If you’re just starting out, fundraising can seem inaccessible and overwhelming. The two fundraising issues that I hear about most often are; 1) Fundraising is only about getting cash, and 2) Raising money is only about knowing rich people. I’m here to tell you these are myths!
Tom Wolf is founder of WolfBrown, a consultancy, and a former lecturer at Harvard University. He authored the book, "How to Connect with Donors and Double the Money You Raise."March 20, 2018
IN HIS UPCOMING PHILANTHROPY UNIVERSITY COURSE, INTRODUCTION TO FUNDRAISING, TOM WOLF, VETERAN FUNDRAISER AND AUTHOR OF THE BOOK, “HOW TO CONNECT WITH DONORS AND DOUBLE THE MONEY YOU RAISE,” IDENTIFIES SEVEN OF THE MOST PERSISTENT MYTHS ABOUT FUNDRAISING. IN THIS POST, HE’LL DEBUNK TWO OF THE COMMON FUNDRAISING CHALLENGES FOR NONPROFITS.
This excerpt is from our free fundraising course online, Introduction to Fundraising. It has been edited and condensed for clarity.
MYTH NUMBER 1: FUNDRAISING IS ONLY ABOUT GETTING CASH.
One fundraising challenge for nonprofits is the constant worry about whether or not they’re getting enough cash donations. Sure, we always think about soliciting money when we think of fundraising, but money is only one of the most obvious forms of support. Fundraising support can also come in the form of people donating time, manufactured goods, food, space, or a host of other things that furthers the work of the organization.
In philanthropic fundraising, we use the term in-kind donations to describe those that are not cash. In the end, you are just as successful if you get the things that the cash was supposed to purchase.
Here is an example: Anita wants to start a school and she needs donated temporary space and equipment. She can ask for cash, but receiving donated space, computers, desks and chairs, is also a success with the same result. In many communities, cash is scarce, but the things cash can buy are not.
Remember this important caveat. In-kind gifts are only valuable if you can use them. For example, I have seen situations where food banks have piles of cans of food whose expiration dates have passed. Similarly, I’ve seen offices were old surplus computer equipment has been donated, but it’s obsolete and unusable. Sometimes a gift will have some monetary value; consider a painting. But it will take a lot of time and expense to turn it into cash.
When learning to work around this first fundraising challenge for nonprofits, I always advise people to solicit in-kind gifts that you need and to be careful about accepting those that you do not.
MYTH NUMBER 2: RAISING MONEY IS ALL ABOUT KNOWING RICH PEOPLE.
I have had many students say: “I can never be a good fundraiser because I do not know people who have a lot of money.
Do you have a loving family? Do you have good friends? If the answer to either question is yes, then you can probably start a fundraising program.
“But wait,” they say, “I cannot ask people I know and that I am close to for money! Besides, they don’t have much.”
You have to start somewhere, and you should not expect a lot when you start.
Remember, fundraising is about finding supporters – as many as you can – who can spread the word. Each time you find a person who will support you, that person has a family and friends and the circle can grow.
Think about fundraising like a pebble in a pond. When you throw that pebble, there are concentric circles. The closest ones are family and friends and then people that they know. And then eventually those concentric circles get wider and wider until you do meet up with those donors that have a great deal of money who you didn’t know at the beginning.
Starting with some simple fundraising event to which you invite family and friends could be a low-risk start to combating this fundraising issue. Remember: the more donors you have, the more funding you can get – and the more donors you can find, the more prospects they will lead you to. Eventually, they will lead to the wealthy people you thought you didn’t know.
To learn about the remainder of Tom Wolf’s seven myths of fundraising, how to combat fundraising challenges for nonprofits, and the essential knowledge that you need to start fundraising, enroll in Introduction to Fundraising from Philanthropy University today.
To learn about the remainder of Tom Wolf’s seven myths of fundraising, and to get the essential knowledge that you need to start fundraising, enroll in Introduction to Fundraising from Philanthropy University. Tom Wolf is also the instruction in our Fundraising Strategies course and our Fundraising: Connecting with Donors course.
Not quite ready to enroll in a course? Check out our community pages on nonprofit fundraising to speak with others who might be facing similar fundraising issues.
How to Develop An Innovative Fundraising Strategy for Impact
How do you get started with fundraising strategy? Whether you are new at fundraising or an expert, we’re here to help you stay ahead of the game and maximize your impact.
New Partnership with Sustainability Knowledge Group To Power Upcoming Course
Sustainability Knowledge Group to advise on upcoming “Stakeholder Engagement Strategy” course slated to be available Summer 2019.
It’s official: Philanthropy U is a great place to work!
Philanthropy U receives Great Place to Work® Certification. Only a small percentage of companies that take the company-wide Trust Index survey receive certification.
Using Free, Online Courses to Support Your Internal Fundraising Training Programs
Improve the effectiveness of your organization’s fundraising training programs by incorporating free, online learning into your strategy.