The economic situation has forced many organizations to look for more ways to get a bigger bang for their (or their donors’) buck. This can come in merging organizations, or just finding ways to collaborate to avoid duplication and promote efficiency.

This can apply to more than just similar mission, however. Many factors, including fundraising approach, can come into play. After figuring out each of the peer organization’s funding approach, the next step is to identify the key differences between your organization and theirs.

The important information you’re after are the points of difference that contribute to their funding of success. Peter Kim, Gail Perrault, and William Foster in their book “Finding Your Funding Model: A Practical Approach to Nonprofit Sustainability,” explain how to deeper delve into the differences.

• Organizational structure: Figure out if the organization is a stand-alone entity, a network, or part of a broader network. By noticing which one they are, you’ll be able to figure out how their funding is modeled.
• Age and/or brand recognition: A better established and better-known organization will have an easier time attracting donors, particularly individuals and corporations.
• Magnitude of development resources: By figuring out the budget of the organization, it will give you the information needed to implement the peer’s funding approach.
• Results: Find out if the organization gives out its outcome data and if any of their current funders are known for setting a high bar in results. Greater outcome data will help differentiate an organization from others.
• Size and prominence of board: Figure out the prominence and size of the board. Boards, most often, make up a large percentage of the revenue at some organizations.

Share this story

Story tools