Vince Stehl from the Surdna Foundation, which was instrumental in the creation of TechSoup, moderated this panel on nonprofit revenue strategies at NetSquared.
Clara Miller from the Nonprofit Finance Fund (NFF), which focuses on the growth needs of nonprofits. They started out as a bank, but now also provide working capital through a variety of financial products for nonprofits. Smaller nonprofits need help doing individual fundraising at scale, and the newer generation of tools can help them to get there.
Lee Davis of NESsT (the Nonprofit Enterprise and Self-Sustainable Team) spoke of harnessing the market. People in the nonprofit sector run around looking for scraps of philanthropy, and often don't build business models that align with the full spectrum of funding strategies. Small, progressive nonprofits can also work to diversify their funding base.
Benetech CEO Jim Fruchterman spoke to the problem of "small n." (Disclosure note: Omidyar Network is a funder of Benetech.) Nonprofits don't realize that fundraising is really about retail marketing. Can nonprofits build an overarching business model that pays for what it costs to operate the mission-based core business?
As Miller notes, place-based nonprofits such as the local Boys & Girls Club are essential - but business models are changing, and technology integration is required to operate successfully. Whether advertising, memberships, or ticket sales are germane, there needs to be some sustainable source of income, and current technology tools have driven the cost of these solutions down dramatically. (This all sounds well and good, but I can tell you as a LINES Ballet trustee that it is not nearly as easy it sounds.)
In general, it seemed that it would be easier to raise funds when
your customer and your donors are the same individuals. But what
happens when your customers are not your donors? Amnesty International
is one example of this, since the ghosts in Guantanamo Bay are not
paying Amnesty to get them out of prison. Unfortunately, there isn't a
quick or easy answer to this question.
Tags: christine herron christine.net space jockeys netsquared net2 nonprofit best practices fundraising
