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“ ….at the end of the month we are out of money…”

“  ….at the end of the month we are out of money…”

Lack of Capital

I’ve heard this many times over the years from Executive Directors, some of whom are leading organizations that are over 100 years old.  It doesn’t matter whether it’s a $500,000 or $50 million budget, but there seems to be an overwhelming fear that the funding won’t be there.  Yet, in only one instance have I seen an organization actually close its door due to lack of capital.

I continue to tell people that as long as you focus on the money, you are concentrating on the wrong thing.  Lack of capital indicates that there is a problem somewhere else in the organization, and it very well may be the absence of fundraising marketing or systems in place.  It could also be lack of a clear vision, poor donor development, failure to plan 5-10 years out or even weak leadership.

We are passionate about what we do and what we care about and so are the hundreds of thousands of other charities vying for donor dollars.  Think long-term funding strategies that will build up your financial reserves – is it planned giving, a larger annual fund base, more major gifts?  Continue to have a positive impact on the world we live in, and I am sure you will be around for many years to come.

I hope you are having a great summer!

 

Written by Paul D’Alessandro

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