Three Core Functions

The following is from my friend Richard Perry, and it’s too good not to share:

There are three core functions of a nonprofit:

1. Deliver programs to solve a societal problem.
2. Inspire and retain supporters to fund it.
3. Build internal systems that support both.

That is so clear, and so true. 

What I like about what Richard says, and why I want to see it spread, is that this thinking convincingly makes the case that Fundraising (“inspiring and retaining supporters”) is equally important to Program.  And it specifically calls nonprofits to “build internal systems that support both.”

But if your experience is anything like mine, you feel that most nonprofits do not treat Fundraising equally to Program. 

That happens for lots of legitimate reasons: most Founders are program-oriented and naturally focus their time & effort in that area, plus fundraising is by nature uncomfortable to most people.  Additionally, fundraising education has not kept up with the explosion of nonprofits in the U.S.

Fine.

But the shift to “treating Fundraising equally to Program” is one that immediately helps the organization.  The “flywheel effect” is obvious: the fundraising becomes more effective, the organization is better at retaining fundraising talent, the organization retains more donors each year, and the organization raises more money.

The mature, national organizations I served at the beginning of my career had all made this shift.  I think that tells you something.

If you’re a leader of an organization that hasn’t made this shift, it’s worth exploring what’s stopping you.

If you’re working at an organization that hasn’t made this shift, it’s worth sharing this thinking and having a conversation.

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