Understanding Nonprofit Structures and Relationship-Building
Nonprofits come in all shapes and sizes, ranging from a one-person shop to a large organization with hundreds of employees spanning multiple departments. It can be tricky as a donor to establish initial contact with nonprofits, let alone maintain an ongoing relationship that allows a donor to really get to know the group and its mission. Here are some tips for establishing and maintaining productive relationships with nonprofits:
1. Know the roles: Nonprofit jobs are typically divided into three general categories: program, fundraising (commonly called “development”), and administrative (which includes Executive C-suite management, such as the President or CEO). Typically, fundraisers handle relationships with donors, but there may be times when it makes more sense for donors to speak directly with program or administrative staff. At the first meeting, ask for a staffing summary to understand who does what at the nonprofit, understanding that in smaller nonprofits there may be a lot of overlap.
2. Know the leader: A nonprofit’s success or failure often depends upon the quality of its leadership and its bench of talent. There is no single factor more important in our experience. Further, donors often become confused and frustrated when there is turnover with one relationship at the nonprofit. For these reasons, consider trying to establish a relationship with the nonprofit’s leader in addition to other staff members. While not immune from turnover, it is more likely that a nonprofit’s leader will stay longer than others. However, donors should recognize that the larger the nonprofit, the more difficult it may be to get time with leaders. As a stakeholder, you should have at least some access to the leadership, recognizing that the size of your gifts may determine that amount or type of communication a leader is willing to provide.
3. Maintain flexibility: Nonprofit staff often wear a lot of hats. If possible, offer flexibility regarding application and reporting deadlines and encourage openness regarding problems or concerns that come up during the grant period. This approach will benefit you in the long run by establishing trust with nonprofits.
4. Take time to understand the nonprofit legal and financial landscape: Although nonprofits can learn a great deal from successful business models—such as setting a vision and achieving milestones (stay tuned for a future blog on this topic!)—donors must also recognize that there are different legal and accounting standards for nonprofits vs. for-profit businesses. For example, when a nonprofit receives a grant intended for a specific program, it is legally required to use the funds only for that program and must demonstrate that it did so in its financial statements. Nonprofits also must abide by specific rules when it comes to lobbying and advocating. Familiarizing yourself with these rules can help donors better evaluate the financial and legal status of the nonprofit.
5. Meet face-to-face: Whenever possible, consider meeting with nonprofits face-to-face. Even if the nonprofit does not have direct service programming available for you to observe, having an in-person conversation with the fundraiser or nonprofit leader allows for a much more authentic and in-depth conversation than over the phone or on video calls.
The team at Hoplin Jackson has many years of combined experience in building strong relationships with nonprofits, allowing donors to feel at ease with their giving. Contact us today if you are interested in learning how to improve relationships with the nonprofits you support!