Tips For Nonprofit Mission Accomplishment - Avoid Chasing the Money

Avoid the “Chase the Money” trap.

Too many small nonprofits fall into the trap of adjusting their programs or projects to fit a grant opportunity, mostly to bring more money into the organization. The temptation to chase the money or become involved in partnerships or programs that I refer to as “Shiny Objects” rather than attracting donors to your cause is great and inviting. If your organization and board of directors are new, the temptation to follow the money, at any cost, will be overwhelming and can lead you down a path that you may never recover from. And, the further you go down this path the more that your donors will come to think that that is your mission. This is something that you can’t afford.

Two Tips to avoid the “Chase the Money” trap;

1. Only about 20% (no more than 40%) of your annual revenues should come from grants. This of course is just a guide, but the main thing to remember is, and make sure that your board of directors understands, it is extremely important that you build your nonprofit such that as few grants as possible will be necessary to support and sustain your organization. Grants come and go. Sustainability is permanent.

2. This may not be easy at first but once understood, your board can easily help adjust strategies to raising funds and sustainability including building a donor base, planning and scheduling fund raising events and even developing for profit schemes to help your cause. Focus on long-term and re-occuring funding sources. The more Long-Term support that can be developed and secured such as planned giving will provide a staple to sustainability. Stanford Social Innovation Review demonstrates ten nonprofit funding models that can help you define how your nonprofit organization can successfully raise consistent and sustainable funding. Which model does your organization resemble the most?