Improving your Unrestricted Fundraising

The Clemons-Associates team has learned a primary truth after serving 40+ clients comprising of nonprofits, educational institutions and ministries.

When you raise funds in a major gift campaign, it is mission critical to also raise monies to operate the new or remodeled facility, staff the property, and fund deferred maintenance. In other words, capital, program or project campaigns need to be ‘augmented’ with an unrestricted fundraising element beyond the brick and mortar cost.

To create an unrestricted fundraising environment, it’s essential to focus on donor education. This entails messaging the benefits of unrestricted giving and how it ties into the organization’s overall mission; you can even align unrestricted funds with operational budgets, staff support and programming successes. Encourage donors to direct gifts to where they are most needed throughout a campaign (in other words, you can help donors direct gifts/pledges based on where you are against capital, programmatic, project campaign goals).

Here's a breakdown of how one might message the unrestricted giving element:

#1: Educate Donors:

• Explain the value of unrestricted funds:

Highlight that unrestricted gifts allow the organization to address its most pressing needs, adapt to changing circumstances, and make the most impact. 

• Share success stories:

Use storytelling to demonstrate how unrestricted funds have been used to achieve significant results, showcasing the organization's impact and the importance of flexible funding. 

• Provide examples:

Offer concrete examples of how unrestricted funds support the organization's mission, such as covering operational costs, investing in new programs, or responding to unforeseen emergencies. 

• Address common misconceptions:

Explain that unrestricted giving does not mean the organization is not accountable. Instead, it allows for strategic and effective use of resources. 

#2: Frame Fundraising Appeals Strategically:

• Emphasize the overall mission:

Frame fundraising appeals around the organization's overall mission and goals, rather than focusing on specific projects or programs. 

• Use clear and compelling language:

Avoid jargon and technical terms. Use clear, concise language that resonates with donors and inspires them to support the organization's work. Showcase ‘lives changed’ through unrestricted giving.

• Offer donor options:

Provide donors with the option to designate their gifts to a specific area like capital, programmatic, endowment, general support or specific areas of need within the organization. 

#3: Make Giving Easy:

• Provide clear donation instructions:

Make it easy for donors to understand how to make capital, programmatic AND unrestricted gifts, including online donation pages and clear instructions on reply devices.

• Offer recurring giving options:

Encourage recurring donations to provide a steady stream of unrestricted funds through multi-year pledges.

• Steward donor relationships:

Build strong relationships with donors by communicating regularly, thanking them for their support, and demonstrating the impact of their gifts. Use digital assets which are inexpensive and scalable.

#4: Consider Creative Strategies:

• Message unrestricted giving at ___% of capital campaign progress

Let’s say leaders/Board is comfortable with breaking ground once the capital campaign reaches 75%a percent of campaign goals; you can begin also concentrating fundraising efforts in unrestricted fundraising. You can also ‘tax’ each gift by bifurcating funds into capital, operating (unrestricted) and even endowment. This must be strategically thought through when involving Naming Opportunities.

• Host fundraising events:

Organize events that raise awareness about the organization and its mission, encouraging donations to support its work through unrestricted giving.

• Sell products or services:

Generate income through the sale of products or services related to the organization's mission, with proceeds contributing to unrestricted funds. For example, the Prix de West Art Sale at the National Cowboy & Western Heritage Museum generates $1M annually – 10% of their annual budget.

• Seek unrestricted grants:

Apply for grants that specifically support the organization's unrestricted funding needs. Again, showcase ‘lives positively impacted’ and/or include your Case for Support in grant submissions

• Partner with other organizations:

Collaborate with other organizations to leverage resources and expand fundraising efforts. 

BONUS TIPS: 

Concept One: In your messaging tactics, “enlarge” what the donor’s gift will do

Focus on the big picture. Ensure the donor is included in a narrative which encompasses how ALL fundraised dollars will be deployed. This may include capital, programming, endowment, deferred maintenance, staffing, operating and unrestricted.

Concept Two: Have a policy and share it

Insert a line of copy in your disclaimer or somewhere on your reply instrument that openly describes your policy. It could say something like…

1.    A portion of each gift is earmarked for unrestricted funding. The policy says something like “Your donation supports the entire mission of this organization.”

2.    We are raising restricted funds for [fill in the blank], but if we raise more than needed for this area, here’s what we’ll do with your donation. The policy says something like: “In the case where funds raised exceed the capital campaign goals, the organization will use the money where it is most needed.” (There are many variations of this.)

While this is a straight forward post noting some best practices and key takeaways,

consider engaging Clemons-Associates for advanced consultative services. Our team has helped organizations from Dallas to South Korea. We fully understand the power of Unrestricted Fundraising and how this can be integrated into campaign design, planning and execution. We leverage best practice campaigns bringing out the best of an organization's impact for amazing results.

Want to hear from our former customers? See what our clients have to say.

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Craig Clemons with Friend, Philanthropist and President/Founder/Board Chairman of Express Employment Professionals, Bob Funk, Sr.

Seeking expert assistance from seasoned professionals?

Contact Craig Clemons at craig@clemons-associates.com or one of our rock star associates for more details. Clemons & Associates is on standby to help you with brand identity, strategic messaging, campaigns, digital assets, programs/projects and/or development endeavors. See more blog articles at clemons-associates.com.