The results were predictable. The program directors did what they knew to do. Donors were approached willy-nilly. Many donors were solicited multiple times in a manner of days. Intense competition between program areas drove the organization to near chaos. For an organization that had for much of its life been dependent upon public and institutionalized funding for the majority of its revenue, the move to a decentralized no-holds-barred fundraising approach was truly the prescription for disaster.
So, how do you handle fundraising in a decentralized environment? Isn't it true that donors like to know where their gifts are going? Isn't it a good thing to have programs live or die on their own merits?
First, it's important to remember that someone — whether a fund development professional or not — must be charged with overall organizational responsibility for fundraising. That's why I like to say that fundraisers are program managers. Far too many organizations see fundraisers as gunslingers, out to clean up Dodge. Whoever is responsible, that individual's chief role is one of coordination and facilitation, whether it be with other staff, volunteers or board members.
Second, a policy of "all source" funding needs to be the order of the day. Simply stated, such a policy says that incoming revenue is treated holistically and applied according to the organization's overall strategies and needs within the limits dictated by the revenue's source. This prevents a dangerous zero-sum mentality from developing.
Third, the healthy organization sees fundraising as facilitating investors' aspirations and dreams, rather than merely funding prescribed programs. This last point becomes even more critical as the millennial generation moves into its prime philanthropic years. For millennials, it's all about their vision and the impact their gifts will have.
I gave Jill encouragement that all was not lost, and although there was certain to be some pain along the way, the transition to a more decentralized approach to revenue generation can work very well, if all the players know the rules and are committed to being on a team committed to furthering the organization's larger goals.
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- Foundations
- Staffing & Human Resources

Larry believes in the power of relationships and the power of philanthropy to create a better place and transform lives.
Larry is the founder of The Eight Principles. His mission is to give nonprofits and philanthropists alike the opportunity to achieve their shared visions. With more than 25 years of experience in charitable fundraising and philanthropy, Larry knows that financial sustainability and scalability is possible for any nonprofit organization or charitable cause and is dependent on neither size nor resources but instead with the commitment to create a shared vision.
Larry is the author of the award-wining book, "The Eight Principles of Sustainable Fundraising." He is the Association of Fundraising Professionals' 2010 Outstanding Development Executive and has ranked in the Top 15 Fundraising Consultants in the United States by the Wall Street Business Network.
Larry is the creator of the revolutionary online fundraising training platform, The Oracle League.
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