Mission Focused Giving

It is generally accepted that the most loyal donors are the ones who give to the mission. So how do you encourage all donors to become mission supporters?

This following process will work equally well for connecting any project-oriented giving (capital campaign, new bus, funding crisis, capacity building, upgrading technology, etc.) to the mission.

Let us assume that a donor is drawn in by a crisis appeal (We have run out of money and will close without help!). Without connecting the donor to the mission, it is reasonable to assume that when the crisis passes the donor will think their job is done and redirect their giving.

A parochial school has two broad categories of income. One is tuition income. The accountants think of this as earned income or fee for services. The other source is donations from individuals, corporations (sponsorships, grants, etc.) and grants (government and foundation).

The tuition is unrestricted income. Some of the donation income is restricted and some is unrestricted. The donor's instructions, wishes, and expectations must guide the use of their restricted gifts.

The allocation of the unrestricted income is at the leadership's discretion. The practical side of this is that one can choose to make tuition the primary source of support for operational and non-mission related expenses. Mission related expenses will receive support primarily from the unrestricted donations.

This simple policy decision makes it possible to report to the donors about their mission impact. The crisis funds now become mission-driving funds. This is consistent with the donor's expectations. They wanted their crisis funds to cover underfunded expenses and critical bills. By design, all of the underfunded expenses and unpaid critical bills are mission related.

Now it is possible to report periodically (at least monthly) to the donors about their dual impact. They are furthering the mission as the crisis subsides. Once the crisis passes, a strong emotional tie will exist between the donor and the mission. You will also have sustained the mission connection throughout the crisis with the other donors. Your school will emerge stronger than before.

Obviously, it is best to have the policy in place before the need arises. Passing it after the need arises, runs the risk of looking manipulative regardless of how pure the motive might be.

Next Step:

Ask the board to create a policy that guides the spending of tuition income and unrestricted funds (Now is the time to do this. Every organization experiences a need for project funding periodically.)

Report on how the donors are strengthening the mission while the project proceeds

Treat the end of the project as a footnote rather than an event

Once everyone rallies (donors pledge their assistance) to support the project, force the project to the background. Let the mission be the foreground activity. Keeping the attention on the mission sustains the passionate, loyal supporters and helps redirect the project donors and other donors' attention to the mission. Compelling stories about the success of the mission will also help to connect the donors to the mission.

The goal is to use the project to strengthen the school and increase sustainability while laying a foundation for success. Creating a broader and stronger donor base is an important step.

Don and his partners started Mission Enablers (http://missionenablers.com/) in 2001 to help nonprofits increase their capacity to serve those in need. Mission Enablers is one of several successful businesses that Don has started. He has also served on a variety of for profit and nonprofit boards. His primary focus today is helping schools (private, parochial, Christian, and faith-based schools) increase enrollment, develop strong leadership teams, improve their governance, and increase their fundraising effectiveness. When away from the office he enjoys spending time with his daughters' families, grandchildren, and working in his gardens or cooking.