I see it all the time. A nonprofit leader wants to expand services to meet growing demand, or she is frustrated with a stalled fundraising effort, or concerned that a key revenue source is drying up, or lacks the staff or expertise to analyze where to diversify their fundraising efforts. She wants to raise more money, but she doesn’t know how to prioritize resources to do so.
But a Financial Model Assessment can turn the tide.
A Financial Model Assessment can be eye-opening and, ultimately, game changing. It can give your nonprofit a deep understanding of where you need to focus your efforts and a clear road map for growing the financial viability of your organization.
A Financial Model Assessment is for nonprofits that want (or need) to raise more money, but don’t know how to get there.
Here are the steps I go through in a Financial Model Assessment:
Interview Board, Staff, Funders
I conduct in-depth, one-on-one interviews with the executive director, revenue-generating staff, key board members, and some funders and others outside the nonprofit to understand what is working and what isn’t.
Analyze the Current Organization
I analyze all organization documents, policies, procedures, financials, systems, and materials to understand the internal and external processes for raising money. But because a nonprofit’s ability to raise money depends on much more than their fundraising efforts, I look at six areas of the organizational structure to determine how well they contribute to fundraising effectiveness, these areas are:
- Mission and Vision
- Overall Strategy
- Board and Staff
- Program Delivery and Impact
- Marketing and Communications
- Infrastructure and Systems
Uncover Opportunities for Current and Potential Funding
I look at all current and potential funding streams to uncover opportunities for increases. I also review all aspects of the organization’s back-end functionality for raising money (such as donor database, materials, systems, technology) in order to uncover areas for increased efficiencies.
I create a 20-30 page detailed analysis with recommended actions for increasing funding streams. I present the assessment and recommendations in-person to staff and board for an engaging session of questions and discussion.The nonprofits that receive the completed Financial Model Assessment hold in their hands an in-depth analysis of where they need to focus time and resources in order to increase the funding flowing to their organization. Often the Financial Model Assessment is the catalyst for big insights among board and staff and sets the organization on a path toward fundamental changes to how they bring money in the door.
It doesn’t have to be so hard. With a clear road map, your nonprofit can move from financial insecurity to financial sustainability.
Photo Credit: Images_of_Money
It is the ultimate question for many nonprofit leaders. But often one that they can’t answer on their own. Perhaps because nonprofit leadership may be so mired in the weeds, or so used to doing what they’ve always done, or simply lack fundraising expertise or knowledge of new trends and tools. The end result is that they simply can’t figure out how to raise money in new and better ways. Which is where a revenue assessment can turn the tide.
Let me give you an example.
Institute for Human Services (IHS), a large social service agency for homeless men, women and children in Honolulu, Hawaii, enjoyed success in government grant funding, but had been unable to diversify their funding as much as they would like in individual and corporate areas. At the same time, their small fundraising staff was over capacity and struggled to keep up with the volume of work. The board of directors was eager to help fundraise but didn’t know the best way to get involved.
The organization knew they had the opportunity to raise more money, but didn’t know how to prioritize their resources to do so.
IHS hired Social Velocity to conduct a revenue assessment to find opportunities for growing their funding. I interviewed board, staff and external funders to get their insights about fundraising at IHS. Then I reviewed organization financials, materials, technology, staffing, planning, and other processes. From this analysis, I wrote a 30-page analysis with specific recommendations for improving fundraising in each revenue area and presented my findings to the staff and board.
With Social Velocity’s revenue assessment, IHS has hit the ground running making improvements to their fundraising function. They have already hired a new Development Director who has been able to shoulder more of the responsibility for fundraising, freeing the Executive Director to participate in more donor relations activities. They are looking forward to reviving past donors through more targeted fundraising strategies, caring for existing donors and creating broader opportunities for constituents to support the mission more personally. The staff and board are energized by the specific fundraising role and responsibilities I outlined for them. The assessment really turned the tide for them, as executive director Connie Mitchell explained:
The analysis and recommendations turned on the light bulb for me about how an investment in one key development staff could multiply our results over a short time. We’re also confidently using our resources more wisely for a better ROI when it comes to fundraising tools and media strategies.
A revenue assessment is for nonprofit organizations that know they want (or need) to raise more money, but don’t know how to get there. Here are the steps I go through in a nonprofit revenue assessment:
- Interview Stakeholders. I conduct in-depth, one-on-one interviews with the executive director, key staff, key board members, and key funders and other external constituents to understand what is working and what isn’t.
- Review Documents. I analyze all organization documents, policies, procedures, financials, systems, and materials to understand the internal and external processes for raising money.
- Assess Organization. I look at 6 elements of the organizational structure (mission and vision, strategy, operations, etc) to determine how well they contribute to fundraising effectiveness.
- Analyze Revenue Streams. I look at all current and potential revenue streams to uncover opportunities for increases.
- Review Fundraising Infrastructure. I review all aspects of the organization’s back-end functionality for raising money (such as donor database, materials, systems, technology) in order to uncover areas for increased efficiencies.
- Deliver Analysis and Recommendations. I write a 15-20 page detailed analysis with recommended actions for increasing funding streams.
- Present Assessment. I present the assessment and recommendations in-person to staff and board for questions and discussion.
It doesn’t have to be so hard. A revenue assessment can give you a clear road map for moving your organization from financial insecurity to long-term financial sustainability.
Photo Credit: Julia Manzerova