What is fundraising? Making a profit!

A good cause needs money to carry out projects in line with the organization's mission. And to make (more) impact, charitable organizations engage in fundraising. Fundraising always requires an investment to organize it, whether it's time and/or money. The better the fundraising, the more revenue is generated. This way, the investment is recovered, and you subsequently make a profit. A profit for the mission.

In individual giving, for example, money is invested in inspiring acquisition and donor experiences so that donors are satisfied with the service they receive, committed to the organization's mission, and trust that the organization fulfills its promises about the impact. This increases their loyalty, so they stay longer.

The goal of almost every fundraising program is to maximize net income in the long term and in a sustainable manner. The ultimate goal is to make the greatest possible profit for the organization's mission. Not for shareholders, but to improve the world. Fundraising is therefore about long-term returns. The term "non-profit" is somewhat misleading. The aim of the for-profit sector is to make a profit for shareholders. The goal of the non-profit sector is not to make no profit. That's why I've heard the term "for-impact sector" mentioned at a conference. Seeking the change we all work so hard for. Much better!

To make that impact, profit must be made. Making a profit involves a few key aspects: calculated risk, manageability of results, assessing profitability. And all of this is facilitated by a donor-focused and data-driven approach.

Investing in fundraising is not a blind gamble. At least, it shouldn't be. It's a well-thought-out decision by fundraising professionals, involving calculated risks based on past experiences, data analysis, market trends, and detailed long-term calculations.

The return on investment has a very manageable nature and heavily depends on specialization in fundraising methods within the organization. The expertise of the fundraisers making these decisions is crucial to the end result. Under equal conditions, the best fundraisers always achieve the best results. Without a doubt. Results are manageable and therefore strongly linked to the experience and expertise of the fundraisers present.

It is up to the charities to assess whether the return is sufficient to continue with their fundraising methods. As fundraisers, we make choices about which programs to invest in because some segments or channels are more profitable than others. You wouldn't be a good fundraiser if you didn't optimize the limited resources you have, right?

All of this is facilitated by being donor-focused, where the donor and the (long-term) relationship are the most important principles. Only when you understand that the profit you are looking for is not in acquisition but in the loyalty phase can you do everything in your power to give donors the best donor experience so that they stay with you for as long as possible.

Naturally, a data-driven approach is then an absolute requirement to make the business case transparent, along with the levers that can be adjusted to improve it. An organization, or rather the fundraisers working there, must be able to explain both internally and externally why a fundraising channel is being used. And that answer revolves around enough long-term returns so that the organization's mission can be funded.

Profit for change.

It is not without reason that Forward's full name embodies the goal of change: Forward for change.


Do you want to understand where in your fundraising program you make the biggest profits?

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Reinier Spruit

Gek op fondsenwerving sinds 2001. Sindsdien probeer ik mijn eigen fondsenwerving skills en die van anderen te verbeteren. Het centrale thema in mijn werk is hoe we lange termijn inkomsten groei realiseren door donateurs op de juiste manier te servicen. Initiatiefnemer van o.a. De Toekomst van Fondsenwerving en fondsenwerving.blog. Overdag Interim Fondsenwerving Manager & Senior Adviseur bij tal van geweldige goede doelen via Reinier Fundraising.

https://reinier.fr
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