Do you ever feel that fundraising success breads uncontrollable growth? A nonprofit organization reaches a certain level of contributed revenue and decides to send their Executive Director onto the road to raise even more money because it is clearly there to be had, or so they have heard. The Executive Director’s absence means a senior program staff member or administrator needs to assume some of the day-to-day duties, which can be tremendous professional development training for an aspiring Executive Director when done thoughtfully. Now the Executive Director can only reasonably spend so much time focused on advancement so they implore the Director of Development to increase the staff’s time on the road. Money is coming in, connections are being made, new networks are being tapped and everyone feels the momentum. Additional staff are added to cover new regions and handle giving levels that are no longer the domain of the top fundraisers. Leadership levels once thought unobtainable are created. The donor database is exploding with entries and a new website is created to encourage online giving to handle the smaller membership contributions. A new module for the fundraising software priced at twenty-thousand dollars is considered so an even more sophisticated approach can be obtained. Donors are receiving email blasts, customized letters assuring them that their funds have transformed the cause, links to YouTube videos, invitations to special events and a summary of the planned giving opportunities that they might consider in their estate. Mailings are outsourced to large distribution centers, marketing has taken on two consultants, the board just added five new members all of whom made transformational gifts in the last six months and the Executive Director is now a platinum frequent flyer member of a hotel and airline company. The board’s finance committee reviews a draft budget that shows significant increases in administrative costs but the business manager assures them that the revenue they are generating from contributions will clearly be the best return on investment they could ever consider. Graphs are charted, PowerPoint slides prepared and the board votes in favor of an annual budget that makes last year’s bottom line number look like just a line item in this year’s version. The cycle continues, spinning faster with over-the-top galas, regional gatherings with donors who have never visited the enterprise’s headquarters and national conference speaking engagements titled “How to Fundraising With Style.”
In reviewing the organization’s strategic plan one sees modest projections about fundraising growth, conservative staff growth and an initiative to enhance the programs the nonprofit already produces. The Executive Director’s goals speak of doing more with the resources at hand. There is nothing about the meteoric expansion of revenue and expenses.
The big questions becomes, is the organization aligned to take advantage of real-time opportunity that fundamentally enhances the enterprise’s orbit or is all of this growth feed the fundraising beast? Does more money mean more resources and no way of knowing if the organization is really generating meaningful growth. Or has the sensation of forward movement become an addiction to the point that nobody knows who is at the wheel. Has the monster taken over driving and has the organization decided to pay his gas bill?
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