Tens of thousands of nonprofit and charitable organizations shape our society daily and make our quality of life possible. Together, these civil sector groups are indebted to the fund development organizations, the post-secondary programs, and the many authors that have brought professionalism to the fundraising field. Over the past few decades, we have witnessed the crafting of a body of knowledge that demonstrates how best to be effective in our efforts to fund the causes that mean most to us and the communities we serve.

In recent decades, the number of charities has grown exponentially, and for many organizations, so has the gap between the expertise and competency of their fundraising professionals, and the expectations and desires of their boards. Competition for the philanthropic dollar is intense.

Fund development managers and the volunteer governors of their organizations recognize the simple equation in play for nonprofit organizations. The ability of nonprofits to grow and deliver services to address their mission is dependent on the resources they have available. With stable government funding usually in question, the focus is turned on the organization’s effectiveness at raising private resources, to which philanthropic support is a major contributor.

The equation is simple. The more money raised, the more services are delivered and mission addressed. The less money raised, the greater is the risk of not delivering on the mission. CEOs, executive directors and boards operate at their peril if they do not recognize this simple reality.

So enters the Fund Development Audit.

Evaluation improves fundraising

The fund development audit is a simple tool that can make current best practice thinking in fund development accessible to all, by providing for relatively easy entry into an increasingly complex game. Every organization that plays on the nonprofit field must at least be aware of the fundamental strategies and tactics that are being used by others, and be well versed on the best practices that will take their fund development program from good to great. Groups that still fundraise in the traditional, narrow sense will not raise the money needed to fully fund their mission, and are in danger of being left behind by those that have embraced comprehensive fund development strategies. 

Many organizations do not have the extensive development team or powerful volunteer teams of the big organizations, but they must, and can, adopt many of the same fundamental techniques to be even modestly successful. All face the best practice imperative – and a fund development audit can help.

An audit, as a self-assessment tool, is not meant to be judgmental – even though you might be scoring and measuring your performance. The intent of an audit is to nurture exploration into better ways of going about the business; to support the desire for constant, incremental improvement; to support a decision making about where to start, what priorities to address first.

Rewards of a fund development audit

• Leaders in your organization will develop a common understanding of development fundamentals and appreciate the need for continuous improvement, even significant change; 
• Individuals responsible for the development program will be clearer on the areas that need attention, priorities for investment in building success; 
• Fund development teams, both staff and volunteer, will agree on how to modernize, move forward and become more competitive;  
• Best practice theory will take root and live as standard operational practice; and 
• A culture of philanthropy will take root and grow, allowing your organization to more successfully address the opportunities and challenges outlined in your mission.

The audit can be a powerful tool to review performance and bring about dialogue for positive change in your organization. It can be deployed as a simple discussion starter, a means to promote dialogue about what’s going on and what’s next. Or it can be a key step in larger processes related to training and education, performance management, fund development planning, or building a culture of philanthropy within your organization.

Regardless of how you might consider using the audit, you will find that once you initiate the dialogue you are engaged in a change leadership opportunity. Automatically and instantly, you will find you have created a positive tension between what is today and what could be tomorrow. How you handle this tension and opportunity to move forward will ultimately be the key to progress, or lack thereof.

This article is excerpted from Guy Mallabone’s upcoming book, The Fund Development Audit Handbook, to be released by Civil Sector Press in May. To pre-order a copy at the pre-publication discounted price of just $27.99, visit http://www.canadianfundraiser.com/Bookroom/productDescription.asp?crypt=DXpwDhYdd2t9f2seeHduBAMUfxgdFXhwdH92cwUQdXZ9eWYDFmULBwE=. Please note that your book will not arrive for six to eight weeks.

Guy Mallabone has been a fundraiser for almost 30 years and is acknowledged as a leader in major gifts fundraising. He is presently the vice-president of external relations for SAIT Polytechnic, a leading institute of advanced technology in Calgary, Alberta.