(Adapted from an Article on “Founders Syndrome) Written in 2004)
In his blog, “Consulting Skills,” dated April 23, Carter McNamara asked, “What is a Mature Organization.” I’d like to try and answer that question from the perspective of a fundraising consultant.
I have to base my “answer” on a couple of basic concepts — that a NPO can’t function effectively (no less raise money) without:
1) A set of operating parameters (i.e., by-laws) that enables (and doesn’t prevent) an organization from operating in a manner that is most (cost-)effective and best serves the needs of those being served. Including:
• Term-limits for board members – as the “community” changes there is a real need to have board members who understand the cultures and the needs of the various segments of the community
• Procedures to ensure that board members are selected based on both the current and anticipated needs of the NPO
• Job descriptions for board members and board committees
• Provisions for board member evaluation, training, and removal – to include a focus on the fundraising process and their roles in it
• A clear statement that the CEO (an employee — paid or not) takes direction from the board, IS NOT A MEMBER OF THE BOARD, and can be replaced if s/he doesn’t observe the policies set by the board (This issue does not directly impact the fundraising process, but it’s a pet peeve of mine and I wanted it said!)
2) A set of policies that delineates:
• From whom the organization will/will not accept support
• The types of gifts it will/will not accept
• The types (with examples) of recognition it will/will not grant
• How contributed funds will/will not be retained/spent/invested
• How mission, vision and ethics will impact decision making
And, if in addition to the above, a NPO has a balanced/diverse fundraising program – an appropriate mix of funding sources (foundations, corporations, mass solicitation, special events and major gifts) – without reliance on “fundraisers,” then I’d probably consider that NPO to be a mature organization … from a fundraising perspective.
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Have a question about starting or expanding your fundraising program? Email me at AskDCA@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll work to answer your question.
Hank Lewis with Development Consultant Associates has over thirty years as a fundraising consultant and is a specialist in Board and Leadership Development, Capital Campaign, Bequest Program and Major Gifts.