As fundraisers, we wish donors would focus on the IMPACT of our work — not the operating costs. And yet, sometimes, as nonprofit leaders, we’re focused on the wrong things too.
Focus on Impact, Not Fees: A Personal Example
Recently, I was contacted about consulting by a development director named Sam. Sam had already interviewed several consultants and wasn’t sure their methodology was right for her organization. She happened upon my website and was delighted to learn that I provided exactly what she needed.
When we discussed my fees, she seemed disappointed that my quote was higher than the other consultants she’d been considering. When I asked about her decision-making process, she seemed frozen. The fact that my fees were slightly more, but not outside of their budget, gave her pause.
I pointed out that she should pick based on the potential outcome of my services, rather than the cost. In fact, I emphasized that she shouldn’t be picking based on fees at all, but by the overall impact my work could have on their organization.
I told her that I wouldn’t want her to pick a consultant solely because their fees were lower. Rather, she should consider how the services I provided were stronger and a better match for her nonprofit. As a result, the outcome would be better.
Unfortunately, I’m not sure she got it.
This feels a lot like the frustration you feel with your donors when they focus on the cost to raise a dollar, rather than the impact their gift will have on fulfilling your mission.
Focus on Impact, Not Fees: A Nonprofit Example
So let’s look closer at how this same flawed thinking effects nonprofits. Take this example:
- Organization A claims that 100% of donations go to programs and services, implying that they have low or no overhead costs. Unfortunately, they don’t have sufficient staff or equipment to run high-quality services and certainly can’t afford to invest in the evaluation of their services, so no one really knows if they are making a real difference in the lives of their clients.
- Organization B on the other hand has overhead costs of 25% because they pay top salaries to ensure they have the most qualified staff possible. Not only that, they invest in regular evaluation of their programs and services and are able to pivot when appropriate and necessary. They know they are making a difference and having a significant impact.
As a donor, if you focus on the fees, you’d likely give to Organization A. But if you really want your donation to have far-reaching impact (which most donors do) you’d give to Organization B. It’s no different when choosing a consultant or another service to improve your nonprofit.
Bottom Line
When you choose a service, program or consultant to help your organization, don’t focus on the fees — focus on the overall impact it can have on your nonprofit and your ability to raise money over the long term. Use “impact” as the primary criteria to evaluate how helpful that service, program or consultant is.
Similarly, make sure your donors are aware of the impact their gift has upon the work you do.
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