Revolutionize Your Development Shop: How Three Staff Raise $13 Million a Year
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Show Notes
Tarren Bragdon is a Co-Founder of 7-Figure Fundraising. He’s also the CEO of the Foundation for Government Accountability, a nonprofit he started in 2011 with only $50K in seed money. Today, FGA raises more than $13 million in revenue yearly with a development staff of three. He shares the transformational shift and smart strategy that got them there.
Similar to most nonprofits, the Foundation for Government Accountability started out with the traditional pyramid structure. In this pyramid structure, the CEO manages the relationships with the highest level of donors, the Development Director takes the next tier, and then the Development Associate(s) handle the lower number donors.
However, Tarren soon noticed that this structure was not scalable. The incentives for growth were also counterproductive.
2:36 “If you’re the development associate and you take somebody who is a $1,000 donor and move them to be a $10,000… rather than being rewarded for that success you’re actually punished for it because it moves from one part of the pyramid, further up the pyramid.”
Turning the Pyramid on Its Side
Tarren and his COO, Jonathan Bechtle, decided to stop looking at their fellow nonprofits for inspiration, and shift their focus onto how for-profits were structured.
When they read “Predictable Revenue” by Aaron Ross and MaryLou Tyler, it all clicked. The quote “Recognize that the world is powered not by generalists, but by specialists was instrumental in shaping their new structure, and they divided their sales funnel among three roles.
The Connector: responsible for bringing in new, high-capacity donors. Qualifies the lead to make sure the inclination and the capacity is there, and directly communicates that they will be asked for money at the meeting.
The Closer: explains what their nonprofit has accomplished so far, the current opportunity for the donor, and where they are going. The goal of The Closer is to get donors to renew or increase their gift.
The Cultivator: responsible for relationship management as soon as the check comes in.
Why It Works
Tarren explains that in the beginning, when the staff was responsible for the entire donor lifecycle rather than particular stages of the donor relationship, follow-ups often fell through the cracks.
In this revolutionized structure, their company is scalable and everyone is a specialist. There are streamlined handoffs. It is clear where each of their donors are in the pipeline, and everyone on staff understands what success looks like. This creates an environment where they are able to provide the highest level of customer service possible to each client.
The Experience
Many activities and actions happen leading up to the ask. When cultivating prospective donors, Tarren emphasizes that it’s not just about throwing letters at prospects. It’s about building a true relationship with points of connection like:
Phone calls.
Handwritten notes.
Annual reports.
Mid-year updates.
13:53 “We only ask for money once a year. We don’t nickel and dime our people with follow up requests for buying a table at an event or doing a bunch of other things. We have a very predictable schedule with the donor based on when they want to give, not based one when we want to ask.”
Tarren says that by planning their schedules out like their high-capacity donors, they are able to increase productivity and predictability which makes them more successful. This means scheduling meetings out at least 90 days in advance.
When the Relationship Really Begins
21:02 “One of the important things to remember is from the donor’s perspective, and again that’s the mindset we need to be in, your relationship either begins or is renewed when they send in the check.”
This is where The Cultivator role becomes crucial. They thank the donor through several different avenues. They keep them informed, engaged and delighted in the relationship throughout the year, not with daily emails or requests for money, but rather by highlighting how their generosity is making an impact. All of these interactions are highly personalized and tailored to each individual donor.
For example, a donor never just receives an annual report. Tarren handwrites a note. This kind of attention to detail is possible only because of their new structure, and shows donors just how much they value their partnership.
How to Get Started
Tarren emphasizes that this new structure of specialized roles and clear organization has been instrumental in allowing them to grow from a startup to a multi-million dollar business. His advice for implementing a new, efficient structure in your business is to read “Predictable Revenue” and then talk to your staff about where they see themselves fitting into these roles. You may be surprised and discover new strengths among your team.