Mailbag: How to raise money for “overhead”
- Wed, May 11 2011
- Filed under: Fundraising essentials
A reader of this blog sent me an email in reaction to my post on making modules of your mission, and for today’s post, I’m going to reply to it.
(In case you missed it, the post is here. I advocated breaking apart a broad mission into understandable pieces that appeal to different donors.)
Here’s the question I received concerning an arts organization:
Katya,
For some nonprofits, one of the major expenses are salaries of employees. Any suggestions for how a nonprofit’s CEO can “make the ask” in a fundraising campaign, without sounding too self-serving?
D.
Dear D.,
The most critical aspect of any organization is its people and what they make possible. Nothing wonderful happens without a creative, committed team.
This is not about salaries. This isn’t about overhead. It’s about your heroic staff, creating amazing arts programs that transform the people you touch. The end results of your efforts is the story you tell in your fundraising pitch. That’s not self-serving! Your CEO talking about the lives you change is not self-promotion—it’s the beating heart of your mission. Say it loud and proud.
If I were at your arts organization, I’d tell an incredible story about one child touched by a single performance. And I’d say what made it possible was my small, dedicated team. With a donor’s support, more of that magic can happen.
You raise money by talking about the impact of your work—not about budget line items. If a donor demands to see the numbers and asks about pay, tell a great story about one of your staff to illustrate my point: that nothing wonderful happens without a creative, committed team. (I assume your staff isn’t being paid $1 million a piece—that’s something I can’t spin.)
The bottom line: Don’t be afraid of talking about your people. They aren’t overhead - they are change agents. If they do great work, put them front and center in your stories of transformation. To use a theater term, they deserve center stage.
You can do it! I once worked with an environmental organization on how to make their lawyers into heroes people would want to support. Surely this is easier!
Katya
Comments
Katya - Fantastic response to D! I am new to your blog and have thoroughly enjoyed reading and reflecting on your posts. As a fellow professional helping nonprofits realize their potential, I wanted to take a quick moment to thank you for your insight and talent. You are wonderful example of what a “change agent” is all about.
Sunshine!
Val
Thank you for this article. It is very encouraging to hear support for the advancement and respect of nonprofit professional salaries. If you want the best people you have to pay them what they are worth. It is by no means the same scale as a large corporation but must reflect the value, talent and skills that the individual brings to the organization. I hope this trend will continue in the discussion on nonprofit management and human resources.
Great response! Everyone involved in the nonprofit sector—staff, volunteers, donors—needs to be engaged in this conversation. I wrote a brief blog post on this issue recently—http://bit.ly/hdqAeY
Katya, you are so right on with this advice! The ability to weave staffing needs into stories about their success is an extremely helpful component toward raising money for ‘overhead’. Tell a truthful success story that your donors can connect to. They connect and see the value of your programs much more when real outcomes are shared than just the numbers and facts.
Your posts are ALWAYS worth the time I spend everyday reading them - thank you! Any advice for situations like the one our organization is in? We’ve been around for 23 years - the board just hired me 1.5 years ago (first & only staff person), so we now have an “overhead” to explain.
Thank Sundra! I think you should follow the advice in this post - It’s not about your job but about what lives are changed because you’re there.
Good explanations, you are helping grass root organisations on how to make their calls for support more heard. Since these work on meagre resources but do a lot of good in the community. Any more advice on how my grass root organisation can improve its fund-raising efforts. It is locally registered in Uganda. Iam doing on-line fundraising to get resources for a few needs on a fundraising site in Germany? Any other sites where small organisations registered locally can host their needs to be supported globally?
Hi Katya,
What you wrote is true, and is great advice when you’re talking about program staff.
But most nonprofits do have overhead costs that aren’t directly related to helping the people you serve—utilities, accounting, and office supplies, for instance. (And fundraising!) Those expenses really are hard to raise money for, and this post doesn’t really address that. (Understandably, since the person asked about employee salaries). Do you have any advice about that?
Muhwezi: You should check out Global Giving!
Amy: I wouldn’t set out to raise money earmarked for my utilities and accounting departments—I’d be focused on raising money for the difference my cause makes in the world. Some of that money keeps the lights on and dollars counted, unless it’s restricted. Most donors get that. Talk about the people you help, not the process that makes that possible. Is the issue that you have big capital need? If that’s the issue, it will help to frame that new building or renovation in a way that is tried directly to the outcome of your programs.
That said, there was a charity I met a couple of years back that successfully raised money for an air conditioner!
Our Pantry in the inner city of Kansas City KS is all volunteer, not one of us is paid. And the church that hosts us charges us “rent” for utilities, internet connection, security, etc.
I have gone to asking separately for things like photocopy paper, a 3 hole punch, etc. a “wish list” and that’s working.
Great stuff! I’m interested to know if you recommend a separate appeal to mission related rquests to request funds for overhead. If so, how do you do this? Thanks.