CHAPTER 3
FINANCIAL RESOURCE DEVELOPMENT: SOME IDEAS ABOUT BEING REALISTIC ABOUT WHAT YOU’RE GETTING INTO

If you decide that raising money and/or developing other resources such as non-cash or in-kind goods and services is for you, or expected of you by others, we’d like to share some notions about the nature of the business based on long experience with both grantmakers and grantseekers. Whether for your nonprofit or yourself, think of what follows as some of the requisite qualities for successful resource development:

• Be enthusiastic in your research and development of funding opportunities. If you approach the Nonprofit Resource Library with a sense of dread, you’re in the wrong racket.
  
  
• Be passionate in supporting your organization or cause. If you aren’t, there isn’t a grantmaker or gift-giver in the world who won’t see through you. No passion, no money.
  
  
• Be persistent. If you understand that there are more askers around than givers, you’ll understand why this is a virtue. Grantmakers and individual givers say “no” far more than they say “yes.” Reasonable persistence can turn a “no” into a “yes.”
  
  
• Try not to personalize your results. Remember, being told “no” is the worst thing that can happen to you in fundraising. You don’t have to enjoy it, but you can get over it. Remember also, the real work in carrying out a project starts after you get a “yes,” so don’t dwell on the joy of receiving for too long.
  
  
• Try to be tolerant about ambiguity. Little other than change is assured in the grantseeking/grantmaking arena. Guidelines can change; so can priorities. People may come and go. So, if you are going to succeed in seeking support sanely, you’ll have to summon some flexibility to go along with your firm resolve.
  
  

Organizational readiness is another prerequisite for any measure of success in reaching out for financial support. Bear in mind the following as you begin to search for funding:

• Make certain your organization is eligible to receive grant support. You must seek and secure nonprofit, tax-exempt status as discussed in CHAPTER 2.
  
  
• Be sure that your organization has a clearly defined purpose or mission. Specific objectives and program plans directly related to accomplishing them should be evident as well.
  
  
• A track record or some history of activities and accomplishments tends to comfort many potential funders. New organizations or those in the process of formation may run into difficulty approaching funders for this reason. As a practical matter, newly formed organizations may find it beneficial to affiliate or collaborate with well-established, credible nonprofits in reaching out for funding support—to borrow credibility, in effect. (One successful model for first-time grantseekers is one in which volunteers have come together to initiate development of the organization’s programs for a period of time before seeking funding.)
  
  
• Remember the importance of volunteers. A staff may not always be needed. Even when staffing is essential, evidence of support by volunteers indicates community backing and conveys organizational credibility to potential funders.
  
  
• Since nonprofit status necessitates the existence of a volunteer Board of Directors or Trustees, make certain that your board operates with a well-defined set of responsibilities. These should include representing your organization in the community and responding to community interest in the organization. The board should take an active, realistic role in your fundraising through planning, making contacts, soliciting donations and making them, where possible. There is potential for significant impact on prospective funders if non-compensated board volunteers work hard to advance your organization. As for the importance of their own donations to the organization, remember that external sources of funds might hesitate to support your efforts if your own board won’t do the same.
  

One of the pitfalls for anyone considering options for developing financial resources for nonprofit organizations — or for themselves, if the circumstances warrant individual pursuits — is being overly focused on one area or type of potential funding. Successful resource development in a highly competitive environment will only come with appreciation of the full range of possibilities for support. Therefore, you must consistently work at developing a broad base of financial support. Few funders will want to be your sole source of support. Obviously, no organization, individual learner or artisan can thrive without some kind of funding; there are always bills to be paid for rent, supplies, salaries or stipends. The more potential and actual funders you can cultivate, the better able to pay the bills you will be. A diverse funding base must be developed. You will read about Public Sector support in Chapter 7 and Private Sector funding sources in Chapter 8.