Where Nonprofit Meets For-Profit: Sustainability Through Results July 8, 2010

Meet expert Tom Ralser, principal of Convergent Nonprofit Solutions. Tom’s work with nonprofits and his latest book, ROI for Nonprofits: The New Key to Sustainability, provide cutting-edge methods and processes to move nonprofits successfully forward into today’s environment, one which increasingly demands accountability, transparency and results.

 

     
 
Convergent has recently announced its new partnership with GiftWorks. Through this partnership, and the integration of their Investment-Driven Fundraising Model with GiftWorks tools, Convergent’s consultants are able to achieve even greater returns for their fundraising and sustainability plan clients.  Here’s how it all began:

 

When a nonprofit in Colorado where Tom Ralser taught Finance was deciding to move forward on a third campaign in the early 90’s, they asked Tom to step over into the nonprofit world and help them devise a winning strategy. Tom worked a little of his business-world magic and was able to demonstrate that for every $1 the nonprofit had spent, they had returned $17 in benefits to the community. With this outcome-driven philosophy, Tom moved into the nonprofit world on a full-time basis in 1993 and started the ROI revolution for nonprofits.

 

Who wouldn’t like to make an “ask” with a proven 17/1 return?

 

In today’s economic climate, every nonprofit needs to both maximize its impact and to communicate that impact in order to sustain ongoing investment. (Yes, Tom calls them “investors,” not “donors.”) Return on Investment is a strategy for the future in fundraising. Not to abandon the time-tested connections and the emotional appeals of the past, but adding the business case for investment completes the fundraising toolkit.

 

“Nonprofits and for-profits are not really all that different,” Tom explains. “Both seek to deliver outcomes that investors value.” If the cars you make aren’t fuel-efficient, you won’t sell many. If your homeless project doesn’t make a difference in your community, your grant probably won’t be renewed. “While the nonprofit arena may be a bit more subtle,” Tom continues, “the mechanism of rewarding the efficient and penalizing the inefficient still applies.”

 

When Convergent’s consultants are “on the ground” working directly with a client, according to Ralser’s colleague Frank Bennett, “we use GiftWorks to manage investor and prospect lists. When we complete our primary work, we train our clients and they continue to use GiftWorks. The ability to have all investor/prospect/stakeholder information in one place—in a format that is easy to manage—ultimately leads to more cohesive fundraising efforts short and long term. For most clients, the customized GiftWorks system is their fundraising hub.”

 

While impact itself is pivotal, the demonstration of that impact is just as important. For example, if you have a program to help school dropouts to earn their GEDs and 50% of the 200 students finish the program and get their GEDs (admirable community, education and social goals)—is this going to compel a local banker to invest in your program? On the other hand, if 80 of the 200 kids get a job, earning say $25,000/year, the banker will immediately see that those earnings translate into $2 million into the community (and an economic impact of $3.5 million). The banker (and the business community) will have no problem seeing how this outcome benefits them. “This is the classic win-win that we try to achieve with every client,” explains Ralser.

 

For more information on ROI and Convergent Nonprofit Solutions, visit their website at www.convergentnonprofit.com.

 

Also, GiftWorks is presenting a free webinar on August 11 featuring Tom Ralser on The Investment-Driven Model: Strategic Advantages in a Tight Economy. Please register here:  https://www1.gotomeeting.com/register/856523016