Resource Development - An Important Approach to Philanthropic Fund Raising

An evolving philanthropic environment warrants a new culmination of decision-making among nonprofit leaders and all stakeholders involved. Resource development is one way that nonprofit leaders can build organizational resilience and adaptability in a changing environment. Nonprofit leaders can practice resource development by using a strategic approach to diversifying its fundraising and philanthropic efforts. Resource development requires a strategic plan, “which is the process designed to support leaders and stakeholders in being intentional about their goals and methods” (Dicke & Ott, 2012, p. 105). The strategic plan and the approach to resource development should be directly connected with the mission of the organization to ensure resilience.

Fund raising involves several functions: “(1) research, (2) planning, (3) cultivation, (4) solicitation, (5) stewardship, and (6) evaluation: (Dicke et. al., 2012, p. 117). Leaders should research all prospective funders whether they be foundations, individual donors, and/or corporations. In researching these funding opportunities, several criteria should be taken into consideration, including aligning agendas with the organization’s mission. Information derived from a comprehensive research effort is essential to developing a strong plan to guide the fund raising process. A SWOT analysis can be used when considering a step-by-step plan to fund raising. Cultivation is a pivotal piece of the fund raising process. The Association of Fundraising Professionals defined cultivation as a way to engage and maintain the interest and involvement of donors. This process can be lengthy and requires high involvement but is well worth the effort. Cultivation is important to make donors feel like they have a stake in the organization. Stewardship goes hand-in hand with transparency. Good stewardship proves to donors that the organization is continuously worthy of continued philanthropic support. The final piece in the fund raising process requires evaluation. Evaluation proves to donors what was accomplished with the funds. The evaluation process actually begins during the planning phase to generate aligning process and outcome objectives. The evaluation process allows room for feedback on the improvement of achieving the organization’s mission.

Nonprofit leaders should be intentional with fund raising efforts and understand the organization’s fund raising environment by applying each step. When assessing the fund raising environment, leaders should diversify its philanthropic and fund raising revenue taking care to maintain a healthy balance in the dynamics of funding. This way the organization can maintain integrity to delivering its mission. In doing so, key stakeholders of the organization can: handle decisions about funding sources set in motion, consider the ongoing chain of consequences to make further decisions as needed, and consider compromises about what the organization will and will not agree to do” (Dicke, 2012). The lack of diversity in fund raising and philanthropy can sometimes cause organizations to stray from the mission. It is important for organizations to remain dedicated to fulfilling its mission to ensure efficiency and credibility. Using resource development in a holistic manner will help organizations build resiliency and adaptability