Video Transcript
Red flags are often used as a sign of warning or danger.
Unfortunately, most red flags are not literal, but figurative, and are often missed by the people who need them most.
Once you know the red flags of major gift fundraising, they might be easier to identify and tackle.
5 Red Flags when Raising Major Gifts
Here are the top red flags to watch for at your organization. Once you eliminate these red flags, you’ll be ready to raise major gifts in a major way.
1. The development director doesn’t attend board meetings.
From time to time, I receive a call from a development director looking for advice because they aren’t allowed to attend board meetings or speak with the board members. This is an indication that something is terribly wrong. It shows a lack of trust between the executive director and the development director, and there is no way to raise major gifts in this environment.
My advice is, generally, it’s time to look for another job.
2. Board members don’t give or help with fundraising.
Board members who are able need to give leadership level gifts. All board members need to give something, and they also need to give early in the year.
Board members should be engaged and involved in the fundraising process, including helping identify, cultivate, solicit and stewarding donors. This is challenging for most board members, so it is up to you to create easy and engaging opportunities for them to get involved.
Another big red flag is the overwhelming sense of…
3. Needing money NOW.
Every organization needs money, however there is a difference between being desperate — like not being able to make payroll, and having an urgent need — like finding a cure for cancer.
If your organization is desperate for money, you won’t be able to raise major gifts because you won’t be able slow down enough to focus on the donor’s needs.
Which leads me to the next red flag:
4. Not focusing on the donor.
If you are more concerned about your organization than your donors, then you won’t be able to raise major gifts.
Recently, I got a call from one of my coaching clients who was frustrated because she was having a hard time securing a visit with a donor named John. John was unavailable to meet because his wife is terminally ill. The development director was frustrated because she was focused on her organization and her need to raise money. Instead, she should have been focused on John’s needs.
I recommended sending John and his wife cards and cookies made by her clients.
John is much more likely to make a gift in the future if he feels loved and supported during this stressful time in his life. On the other hand, if the development director continues to contact John for a meeting while his wife is ill, there is little chance of ever getting a gift.
Focusing on the donor is just as important as focusing on the needs of the organization.
And finally, the last red flag is…
5. No compelling case for support.
If your organization doesn’t have a great story, it’s going to be hard to raise major gifts.
Take 30 minutes at your next board meeting to ask board members key questions, including why your organization is important to them. Ask why they joined in the first place, and why they continue to serve. This will help reignite the passion and help you develop a compelling case for support.
Once you eliminate these red flags, you’ll be ready to start raising major gifts and join the #MajorGiftMoment.
Are you facing any of these red flags? I’d love to hear about it in the comments.
Very helpful summary of things we probably know instinctively, but it’s good to have them spelled out clearly and with examples. Thank you Amy.
I must say this article is incredibly impactful, if not just a little depressing. I’ve been subject to every one of these scenarios in my 12 years in the biz, and still have colleagues who contend with this. Sharing immediately 🙂
Thanks, Jonathan!
Yes, I agree. Thanks for spelling these out, Amy. It’s so important that people know and internalize these five red flags so that they recognize them when they see them. Great points and excellent stories, Amy!
Good to know the red flags, if and when they start to happen, you know how to correct them before they get out of hand, thanks for the tips.
I found the article very useful as it provides the rather obvious areas we normally ignore but which can have either high positive or negative impact on our fundraising activities. Thank you Amy!
My ED: “We need money now!! I need you to write a lot of grants!”
I am unsure if she understands how oxymoronic that statement is. Unfortunately, she was completely serious and expects me to write at least a grant a week, and thinks that will magically make money appear right now.
How do I make her understand that this is unreasonable?
Hi Brenda – If you are a full time grant writer, then writing a grant per week (depending on how complicated they are) could be reasonable. What seems unreasonable is the “get money now” part. I would explain to her that some foundations only review grants/make decisions annually. Others quarterly. And expecting it to produce money now is unreasonable.
I wrote about 60 grants this year so a bit more than one per week. Grants (government, corporate and foundation) are our major source of income. I separate these from foundation and corporate donations and sponsorship, as the grant programs have specific applications, program criteria and reporting requirements. Grant-writing is my major area of focus in my organization, supported by a Special Events person who also can help with foundation appeals and reporting.
Thank you Amy, this was very useful information and like someone else commented, I too have experienced these red flags someone in my career.
Side note: I found your hand movements very distracting. It appeared very stiff and almost “scripted” –not natural. However, the presentation was very clear and to the point.
I have another red flag to add. The organization’s individual giving program is not well-developed and is the smallest source of revenue. Where one might expect 5,000 donors based on budget size, the organization has 200 and the contact list/database is not well-maintained. The database in use is not able to generate segmented lists based on donor criteria. Not only that but communications with the few individual donors is always generated by the ED or the communications coordinator. The Development Manager has no contact or access to the individual donors nor does she write or have input into the annual appeal letter, however the Board is pressing for the development of a Major Gift campaign and a Planned Giving campaign!
Great points, Linda! Important to fix all those things… often one thing at a time.
Its very helpful. It touches on the real life situation. For instance most oof the board members are too reluctant especially to assist in fund raising campaign. This is part and parcel of many projects
Numbers three, four, and five remind me of how not to look for a job. If your approach to the hiring organization is motivated by desperation (3) or self-centeredness (4), your professional case for support is probably incoherent (5). Nobody wins. Whether major gift fundraising or job-hunting, focusing on what you have to offer the donor/employer sets up a better value proposition for that relationship.
Hello Amy,
I am working for a relatively new nonprofit, which is just getting off the ground. I am in an interesting position as their fundraiser because as a new nonprofit that is starting from scratch, the company does technically need money asap, since they are almost literally starting from zero.
What would you recommend in my case? I am moving slowly with donors and corporations, because I do not want to sacrifice relationships for the company’s current needs, but am sometimes unsure of the best plan of action to really get some cash flowing for them.
Many thanks for any insight you can provide!
Check out my books on Amazon (type in “fundraising” and my last name). Hopefully all 3 come up and would be a great starting place.