What are the best ways to navigate power dynamics in a fundraising campaign?

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Power dynamics are inevitable in any fundraising campaign, whether you are seeking grants, donations, sponsorships, or investments. As a social impact leader, you need to be aware of how to navigate these relationships effectively and ethically, without compromising your mission or values. In this article, we will share some of the best ways to do so, based on our experience and research.

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1 Know your worth

One of the first steps to navigate power dynamics is to recognize your own worth as a social impact leader. You have a unique vision, a valuable contribution, and a compelling story to tell. You are not begging for money, but offering an opportunity for collaboration and impact. Don't let the fear of rejection or the pressure of competition undermine your confidence or your authenticity. Be proud of your work and your goals, and communicate them clearly and passionately.

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Jose Sergio Torres

Growth Hacker | DASM? | Google Project? Manager
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En una campa?a de recaudación de fondos, comprende las dinámicas de poder identificando a los principales interesados y aliados. Desarrolla relaciones sólidas con donantes clave y colabora con líderes de opinión. Utiliza una comunicación estratégica para transmitir el impacto y la importancia de la causa. Asegúrate de la transparencia en el uso de los fondos y personaliza tu enfoque según los valores y objetivos de los donantes. La empatía y la autenticidad son clave para construir relaciones duraderas y maximizar el apoyo financiero.

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Alexandra Pittman, PhD

I support effective impact tracking and storytelling for global changemakers, donors, and investors. ?? Founder of ImpactMapper, HERO Index, and Havn Hus, a retreat center in Norwegian fjords │ Public speaker │ Investor
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Funding offers an opportunity to collaborate to achieve larger social impact goals. Donors need strong partners, who understand the local context and needs and that have specific expertise required to implement and mobilize social change initiatives, projects and movements. Coming to the table sharing the important work that you are doing and letting them know how they can be involved in activating a collective vision together is a strong start to a funding partnership and understanding their contributions beyond funding can be a good place to start. Ultimately this is about building strong relationships and partnerships. Look for funders who respect your approach, expertise and knowledge and are open to feedback and collaborative approach.

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2 Do your homework

Another key step is to do your homework before approaching any potential funder. You need to understand their interests, values, priorities, and expectations. You also need to know how they operate, what they require, and how they measure success. Doing your homework will help you tailor your pitch, avoid unnecessary mistakes, and build trust and rapport. It will also help you avoid wasting time and resources on funders who are not a good fit for your project or organization.

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Rhea Kanaya

Relationship Manager - Client Coverage at Klay
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Penning down some of the effective ways to manage power dynamics and build positive relationships with potential funders: Conduct thorough research on potential funders to understand their values, interests, and priorities. Focus on building authentic and meaningful relationships with potential funders by engaging in open communication, being a ear to their concerns, and demonstrate a genuine interest in their perspectives. Transparency is key in fundraising. Be honest about your organization's goals, challenges, and financial needs. Demonstrate how funding will contribute to positive change and align with the funder's goals. Demonstrate team's competence and expertise in managing projects.

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Elaine KA

Bridging Customer and Product at Amazon | ex-UNICEF | Columbia | Passion for customer-led tech innovations
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Before approaching any potential funder, I make it a priority to do my homework. Understanding their interests, values, priorities, and expectations, along with their operational methods and success metrics, is crucial. This research allows me to tailor my pitch effectively, avoid unnecessary mistakes, and build trust and rapport. It also ensures that I invest my time and resources wisely, focusing on funders who align well with my project or organization.

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3 Build relationships

Power dynamics are not only about money, but also about relationships. You want to build long-term, mutually beneficial, and respectful relationships with your funders, not just transactional ones. This means you need to communicate regularly, update them on your progress and challenges, acknowledge their support and feedback, and involve them in your decision-making process when appropriate. You also need to be transparent, honest, and accountable for your actions and results. Building relationships will help you foster loyalty, collaboration, and sustainability.

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Stephanie F.

Making meaningful change for learning, leadership, culture and equity within organizations | People Experience | Social Impact Strategist
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Navigating power dynamics in a fundraising campaign requires strategic relationship-building. Identify key influencers, tailoring communication to their interests. Transparency is vital—be clear about goals, impact, and alignment with donor values. Leverage existing power structures, aligning the campaign with broader missions. Collaboration and inclusivity foster a balanced dynamic. Invest in personal relationships and adapt to evolving circumstances. Maintain ethical standards, ensuring honesty and commitment. Essentially be very thoughtful in how you engaged and nurture relationships.

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4 Negotiate wisely

Sometimes, you may face situations where you need to negotiate with your funders, either to secure more funding, to extend a deadline, to modify a deliverable, or to resolve a conflict. In these cases, you need to negotiate wisely, keeping in mind your interests and theirs, as well as the potential consequences and alternatives. You also need to be respectful, assertive, and flexible, and avoid being defensive, aggressive, or passive. Negotiating wisely will help you maintain your integrity, credibility, and reputation.

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Stephanie F.

Making meaningful change for learning, leadership, culture and equity within organizations | People Experience | Social Impact Strategist
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Negotiating in fundraising settings demands finesse and understanding of diverse stakeholder interests. Start by active listening, grasping concerns, and finding common ground. Frame the proposal as a mutually beneficial opportunity, emphasizing shared goals. Flexibility is key; be open to compromise and responsive to feedback. Clearly articulate the value proposition and showcase the positive impact of contributions. Demonstrate a willingness to collaborate and address concerns promptly. Building trust is paramount, so deliver on promises and maintain transparency throughout the negotiation process. Successful negotiation in fundraising relies on empathy, adaptability, and a commitment to forging win-win outcomes for all involved.

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Jonathan Mok (He/Him), PGDE, MHKIoD and CMgr

Driving Fair Trade and Social Impact |good weekend Championing Sustainability, Equity, and Neurodiversity
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In my experience, some donors may wish to barter instead of donating a certain amount of money. I would say if the donors barter what you need - ad space or other things your organisation need, they are worth considering.

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5 Seek balance

Finally, you need to seek balance in your fundraising campaign, both internally and externally. Internally, you need to balance your time, energy, and resources between fundraising and other aspects of your work, such as delivering your services, managing your team, and evaluating your impact. You also need to balance your emotions, and cope with stress, frustration, and uncertainty. Externally, you need to balance your dependence on one or a few funders, and diversify your sources of income and support. You also need to balance your compliance with your funders' demands, and your autonomy and innovation. Seeking balance will help you avoid burnout, stagnation, and mission drift.

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Elaine KA

Bridging Customer and Product at Amazon | ex-UNICEF | Columbia | Passion for customer-led tech innovations
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In my fundraising endeavors, achieving balance is key. Internally, I prioritize efficient time and resource management, addressing stress and emotions. Externally, I diversify income sources to avoid over-reliance on a few funders. It's crucial to strike a balance between meeting funders' demands and maintaining autonomy. Seeking this equilibrium prevents burnout, stagnation, and mission drift.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the best ways to navigate power dynamics in a fundraising campaign?

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1 Know your worth

2 Do your homework

3 Build relationships

4 Negotiate wisely

5 Seek balance

6 Here’s what else to consider

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