Just as a profit-making entity is measured primarily by its financial results, a nonprofit organization should be measured by the effectiveness and quality of the services it delivers and the efficiency with which they are delivered.
The process for achieving excellence in a nonprofit is best described as “advancement” which connotes comprehensive action of moving from a current level of providing services to an improved and/or larger one as envisioned. Fund raising is only one – albeit a critical one – of the elements of advancement and a nonprofit’s success in fund raising is directly related to the quality of its advancement process. Further, the advancement process can logically be broken down into the “4 M’s”: Mission, Management, Money, and Marketing.
- MISSION – The core of a nonprofit organization’s being. It must meet the service needs of its constituencies and of the larger community as part of the public trust for which it had been created.
- MANAGEMENT – Of course, this word “says it all” for the success of any organization, but at a minimum management must imply ongoing assessment of internal and external conditions, development of goals and objectives, development of a strategic plan, creation of a team, and execution of the strategic plan.
- MONEY – In any enterprise, there must be a consciousness that the financial component, to include resource allocation and cash flow, is a critical part of the strategic plan.
- MARKETING– Every enterprise has its constituencies. They must be identified, researched, defined, prioritized, attracted, cultivated, and satisfied through the organization’s strategic plan. Fundraising is directing this process toward a cultivated donor constituency that can provide the resources to fulfill an organization’s mission.