Nonprofit Feasibility Studies
Most of the time
when you hear the words “feasibility study” it is in relation to a
capital campaign, endowment campaign or any other major fundraising
opportunity.
Mistakenly, however, people assume that this study is nothing more
than a perfunctory punch list or a
proverbial permission slip
for the nonprofit to go out and raise money.
It is not a
forgone conclusion that nonprofits can raise the money they need in
a capital or other fundraising campaign. While there might be a
legitimate need, this need is not always met with a strong enough
case statement, effective leadership or community interest in
raising money to make a campaign successful.
Many nonprofits need to do a lot of prep work prior to
launching any fundraising event. This process may take months,
and other times years, all depending on the level of effectiveness
in which the nonprofit operates.
Real feasibility studies are not simply about the money!
One way to test the strength of your nonprofit is by using a
free tool called the
Perfection
Quotient
(PQ). This tool
measures
your nonprofit organization's strengths, weaknesses and overall
health by identifying its performance according to
The Perfect
Nonprofit
Model.
Honest feasibility
studies are those that tell the truth and give your organization the
information it needs. All nonprofits need to
know the answer to questions like:
Does the community
you serve know about your organization and your services?
Is your nonprofit
really ready to raise money?
Is your cause
supportable? Not all causes are!
The results from a
feasibility study can tell your nonprofit if it is “ready” to raise
money but
it should also give you specific action steps you must take to
improve your abilities and enhance your rate of success.
In general when a
study is conducted a consultant will typically interview your staff,
board members as well as top donors, prospective donors and
community leaders.
What makes the process work is that the consultant you
select is
someone from the outside that does not have any hidden agenda
but is
simply on a fact finding mission.
People are more
apt to tell a stranger both the positive and negative aspects of
your organization versus feeling comfortable discussing this openly
with the executive director or even a board member they know well.
Many nonprofits
mistakenly think that the consultant conducting the interview will
in fact do “the ask” for you or “warm up” the prospective donor.
Nothing is further from the truth! If you are
hiring a consultant that claims he or she will do this
for you then you are hiring the wrong individual and you are not
getting a professional feasibility study.
Truthfully many nonprofits fail to hire a consultant because of
several fear factors!
First,
nonprofits worry it will cost too much. Secondly, nonprofits are
worried that once they do in fact have a study done it will either
not say what they hope for or it will contain information they are
not sure what to do with.
Let me reassure
you that most concerns can be mitigated once you locate a consultant
that will take the time to understand your needs. Not all
consultants will fit you or your nonprofit’s personality. Start by
interviewing each prospect and let your gut instinct guide you to
the perfect fit.
Once you hire a
consulting firm to conduct this type of study they should provide
you with not just factual information but also guide you to better
prepare yourself to raise the money you need.
Donors are not ATMs and one visit from a stranger does not produce
instant results!
While this might
seem hard to believe, the truth of the matter is, the information
received after a proper study is conducted can actually be
more valuable than the money you receive and often is
the first step at receiving an
even bigger gift.
A feasibility study
is an assessment tool and is not a
reason to give!
If you want honest
answers and are ready to learn the real truth about how the
community views your nonprofit then I would recommend you contact
either
David
Condon or
Kevin Bingham. Both of these individuals are
professionals with
DNS Associates
a full service consulting firm.
The DNS team of professionals teach countless nonprofits to
understand what it takes to be successful in running a
nonprofit business
from the ground up.
Additional Information:
Fundraising Resources | Minnesota Council of Nonprofits
http://www.minnesotanonprofits.org/nonprofit-resources/fundraising
