I believe this a good thought piece worthy of full board discussion!
Helping nonprofits scale gen-ops dollars to fund the infrastructure they need to grow. Connect with Sherry Quam Taylor, CEO of QuamTaylor.
Fundraising isn’t easy, but that doesn’t mean it has to be hard.
It’s important to look at the types of fundraising methodologies in the nonprofit sector to better understand which ones bring the most revenue—more importantly, unrestricted revenue—to the organization.
For example, the nonprofit sector often relies on the “give/get” model, which requires board members to either give a financial donation or help raise a specific amount (or services equaling that amount) on an annual basis. While this approach may ensure some level of board contributions, it can also limit a nonprofit's fundraising potential.
Why leave money on the table? As a nonprofit leader, it’s worth exploring other approaches to maximize fundraising effectiveness.
Understanding Limitations Of The Give/Get Model
The give/get model is designed to ensure board members are financially invested in the organization. It has been a staple among nonprofit organizations for decades, so questioning its value can be a difficult path to navigate. Yet, not having that conversation can lead to unintended consequences that hinder more effective fundraising strategies.
One essential factor to consider is that the give/get model is purely transactional, with an emphasis on meeting fundraising targets through direct contributions or securing in-kind goods and services. This approach can undermine fundraising goals for several reasons, including the following:
It Promotes Transactional Fundraising, Not Relational
Give/get teaches board members that fundraising is about transactions rather than relationships. Board members are uniquely positioned to introduce their networks and foster connections with donors, which is critical for cultivating long-term support.
Focusing on transactional activities—such as email marketing blasts, social media campaigns and large events—diverts attention from relationship-based fundraising. Relational activities have a greater potential for unrestricted gifts and sustained support. These might include:
• Meeting in person.
• Sending personalized email updates.
• Conducting private fundraising solicitations.
• Organizing intimate gatherings for small groups.
• Engaging in high-level fundraising conversations.
• Holding one-on-one meetings, including on Zoom.
• Providing tailored impact reports and thank-you messages.
It Overvalues The 'Get'
The “get” portion of the give/get model may seem valuable but can be misleading. For instance, getting $5,000 worth of graphic design services from a local design agency may sound beneficial, but if those services are treated as “charity” work, they might be low priority among agency staff.
Similarly, in-kind contributions, like a transport vehicle, may incur additional costs for maintenance and operation, diminishing their perceived value. This reliance on "gets" can detract from a focus on raising funds through traditional methods.
A better alternative? Develop an annual budget that consistently funds the services and contractors essential for growth. It's well understood that unrestricted donations are most beneficial to your mission. Your team should be trained and focused on meeting the comprehensive financial needs of your organization, rather than adhering to a limited give/get target.
It Blocks Optimal Gift Solicitation
A predetermined give/get target can condition board members to aim low when soliciting contributions from their networks. If a board member's requirement is $5,000, they might not push for more significant donations, even if donors are capable of giving much more. What if that donor could give $10,000, $15,000 or $20,000?
A quota mindset limits fundraising potential and can lead to missed opportunities. However, your board's restrictive mindset might not be entirely their fault. Removing give/get constraints can pave the way for boundless generosity.
It Discourages Board Solicitation
When give/get targets are in place, fundraising staff may avoid soliciting board members, leading to a disconnect in how fundraising should be approached. Board members might be hesitant to ask for donations because they view fundraising as overly aggressive. In this case, leaders should ensure their staff members are modeling what relational solicitations look like. It’s not twisting arms or begging for money. This misperception hinders the development of effective fundraising strategies and reinforces negative stereotypes about the process.
Broader Implications Within The Nonprofit Sector
The give/get model reflects a broader problem in the nonprofit sector, where outdated approaches and transactional thinking can impede growth and innovation. This mindset often focuses on short-term gains and meeting basic financial requirements.
Nonprofits that rely solely on a transactional approach to fundraising may struggle to build lasting relationships with donors, causing them to miss out on opportunities for larger and more flexible contributions. Isn’t it time for more of a “thinking outside the box” strategy?
Shifting Away From Give/Get
To fully capitalize on fundraising opportunities, nonprofits should consider moving away from the give/get model and embrace relational fundraising strategies. This shift involves training board members and staff to cultivate relationships, rather than relying on transactional activities.
Ultimately, the key to successful fundraising is fostering a culture of philanthropy where every contribution is valued and every donor is encouraged to give their best gift. By challenging these outdated legacy traditions, organizations can unlock new fundraising opportunities and ensure their boards are equipped to meet their financial needs.
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Helping nonprofits scale gen-ops dollars to fund the infrastructure they need to grow. Connect with Sherry Quam Taylor, CEO of QuamTaylor. Read Sherry Quam