Which Would You Choose?
Larry C Johnson
Marquis Who's Who World Humanitarian showing nonprofit leaders how to achieve financial security through sustainable philanthropic revenue.
It's about net, not gross.
Here’s the big bad truth.? Fundraising costs money.? Sometimes a lot.
There’s no escaping it.
Although you must spend money to make money, the aphorism goes, how much you spend isn’t necessarily proportional to how much you raise.
Fundraising methods have consequences.
Let’s say you’re about to embark on a fundraising project.
You need $300K to fund it.
How do you raise it?
If you use method 1 , you’ll raise about $600K.? Wow.? Everyone celebrates.? ?But you spend $450K to raise it, giving you a net of $250K.? You’re shy of your need—the real reason to seek the funds in the first place.
Use another method, method 2 , you raise only $400K but spend only $56K to raise it.? You’ve exceeded your need with $343K.?
Which method nets you more?? Method 2, by a mile.
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Unless you’re selecting the most strategic, productive methods you’re spending a lot for a little. Don’t worry, organizations do it all the time.? And they congratulate themselves on the “big numbers” they raise.? Without considering the costs, however.
Think about that as you build your fundraising program.? How do you raise the most for the least—consistently?? Consider The Eight Principles .? Take a look at the results .?
Want to know what “method 1” and “method 2” are? Check out the cost comparisons HERE. ?
To Your Fundraising Success,
Larry C Johnson, Founder, The Eight Principles
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I’m interested in learning about you, your fundraising challenges and how we may be able to collaborate to solve them..? Arrange a time to talk.
In need of more permanent growing revenue Create a fundraising plan that delivers the results you WANT and NEED.? Enroll in our Five Step Plan ?create your plan and join The Eight Principles Community.? At $275/year it’s the perfect place to learn—and execute.
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1 年Many organizations get stuck in a pattern of "we've always done it," so they keep doing it. Sometimes, they justify it by stating, "Our constituents/donors will be upset if we don't do it." The reality is that your donors, who care about your cause, will understand if you explain that the costs to run an event have gotten to the point of making an event a poor usage of organizational funds. Another reason these events carry on is a lack of new event ideas. It is the "since we can't think of something new, we will keep doing what we've been doing." The most valuable and limited commodity in fundraising today is innovative thinking.