“The Annual Fund Is Obsolete”

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    After thirty years in the non-profit sector, I often find myself questioning, not what we do, but how we label what we do — and how those labels often limit us. The best example of that concept, I believe, is the label “Annual Fund.”

    It seems as if, for as long as there have been formal development programs, there have been “Annual Funds.” Each year, goals are set, development staff gears up for another year of activity, constituents get letters and/or phone calls asking for a gift, development staff worries about making/exceeding their goals and they look forward to the end of the fiscal year, when they can put it all to bed and take a deep breath….

    While going through this process, however, we are sending the wrong message, not only to our constituents, but also to ourselves. The message is that we should only ask for one gift per donor per year, and that the donor should only give once each year !

    Somehow that seems contrary to what fundraising is all about.

    By focusing on the (single) annual gift, we and our constituents lose sight of why the giving is important — what and who it supports. People become focused on the process, not on the reason for the process.

    Let’s name the process (of raising money on a fiscal year basis) in honor of a founding member of our organization, after the organization itself, or what the funds support, but no more “Annual Fund.”

    Let’s not allow what we call an activity to limit what we can accomplish via that activity. And let’s not stifle the creativity that takes us beyond mere process.

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    Have a question about starting or expanding your fundraising? Email me at AskDCA@Major-Capital-Giving.com. With over 30 years of counselling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll work to answer your question.