Blog: Fundraising for Nonprofits

This is a three-part story of a small Historical Society that embarked upon a Capital Campaign at the urging of their current President and her husband, who donated $1M for a major project. The campaign was undertaken without a Planning Study; and, in their second year of fundraising only $156,000 has been raised… $100,000 of which is from one donor.

(Again, this is a response to an email, with my comments in bold.)

Please understand we still do not have blueprints and specs on this – so it has not gone out to bid. We have no hard numbers yet.

I have three questions:
1.  Conflict of Interest as it relates to our President holding that
     office while she & her husband are pitching this project.

Any board member can pitch any project or course of action.

It’s not a conflict of interest unless the president and her husband stand to benefit from what’s being proposed. It is an example of board members with money bullying the board on which they are not a majority; and, it’s an example of a board that’s hiding behind very thick rose-colored glasses.

2.  The soundness of our ED’s and a few others’ statements on how
      “in their experience” the money will come in after we break ground
      because of the excitement.

In my 40+ years as a fundraising consultant/mentor/educator I have never seen the excitement (defined as an interest in and/or willingness
to give to the project) build after the groundbreaking. Typically, the perspective is that if you’re breaking ground you must have enough money to complete the project (which you should), so you don’t need
my money.

3.  How and whether a Donor’s Capital Campaign contribution is
      returned when it is requested. Can the threat of this continue
      to drive decisions?

Keep in mind that your organization’s reputation is at risk, and the reputations of the individual board members. Returning contributed funds shows good faith and transparency. The organization may look like it failed at the project, but good faith can go a long way toward long term survival.

I have serious doubts as to whether we can raise the remaining funds for this project. Our Town has not had that depth in the past and we compete with a number of other nonprofits with more sex appeal.

I think that your last paragraph sums it up. It’s what I gathered from reading the rest of your note.

Final Note: It must be emphasized that a properly done Planning Study would have uncovered the extent of support (or lack thereof) to be expected from the Society’s constituency/community, and it would have uncovered the extent of the board’s acuity and/or naiveté. There’s no substitute for Planning.

That’s it for this year.
Wishing You All the Happiest of Holidays,
and the Best for the New Year.
We’ll see you on January 6th.

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