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A funder's point of view: Use trusted data to build your case.
By Carolyn H. Roby, Wells Fargo Foundation Minnesota
Carolyn H. Roby is vice president of the Social Responsibility Group, Wells Fargo Foundation Minnesota. Carolyn is a member of the Twin Cities Compass Governance Committee, and spoke at a recent Twin Cities Compass brown bag seminar, "Fact-based fundraising." These are her remarks from the event.
If I had to choose one word that would characterize the reason fact-based fundraising is important, that word would be trust. The deeper the level of confidence and trust people have in your work, the greater the potential that they will invest financial and volunteer resources over a sustained period of time.
The development and maintenance of trust is not simple. It requires sustained attention to multiple factors, within multiple constituencies: program participants, staff, contributors and the community.
Everything you do or say either builds or compromises trust. For example, you would expect the following issues to be on the list of "trust builders."
- A mission statement and strategic plan which are clearly connected;
- Clear evidence that your programs are directly tied to your strategic plan;
- Outcomes and results based on your goals and objectives;
- Fiscal accountability and honesty about addressing challenges as they arise;
- A commitment to the growth and development of your staff;
- Regular updates about recent accomplishments and achievements for your stakeholders – including contributors, elected officials, government contacts, program participants, volunteers, community partners and the neighborhoods where you are located.
Unfortunately, the step I believe that would inspire tremendous confidence and trust, and would provide evidence that you want to have the greatest impact possible with your resources, is all too rare in many of the proposals I see. The step I am referring to is the use of relevant facts and research from trusted sources about the community need or the problem the organization is addressing. I frequently see proposals where there is an assumption that the community need is understood and therefore not stated at all, or I see the careless use of data that is either clearly out of date, or at such a different scale that it is not relevant.
The lack of data, or the misuse of data, makes me wonder if it is possible for the organization to develop effective programs with meaningful outcomes, and makes me wonder if the organization has been careless about other issues as well. I automatically assume that this lack of attention could indicate a lack of attention in other areas.
The meaningful application of relevant data and research from trusted sources can provide the edge required to influence an individual or institutional funder to contribute for the first time or increase a contribution. Individuals and foundations are overwhelmed with requests and have dwindling resources. They are using every factor possible to help them differentiate where to dedicate scarce resources.
Research-based context included in a proposal is also important for new foundation staff and potential funders whom you find through many of the new technological strategies. Of course, you still have to do the research to determine that your work fits within the interest areas of the potential funder.
These are extraordinary and unprecedented times. There isn't anyone who doesn't feel like they are "drinking out of a fire hose." I realize there is hardly enough time for you to respond to all the questions from clients, colleagues, and the community, much less time to do research. However, I propose that this is exactly the moment that you must take the time.
Twin Cities Compass was created to be a trusted, single source of data and research to help the community – nonprofits, foundations, businesses and individuals – identify trends, measure progress, and take action. There has never been a more efficient source of relevant data and research for the community to address. Foundations and individual contributors are also increasingly using Twin Cities Compass as a guide for their own strategic planning and to double-check statistics mentioned in proposals.
The challenges we are facing feel unprecedented: The importance of quantifying the impact and the effective use of resources has never been more crucial, while the competition for limited funds has never been greater. Your attention to earning and sustaining the trust of your clients, staff, colleagues, the community and your contributors will result in the most positive long-term outcomes.
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Opinions in the For Discussion columns are the authors' alone and do not necessarily reflect the views of Minnesota Compass. Compass welcomes a range of views about issues pertaining to quality of life in Minnesota.
