What is a Professional Fundraiser?
A professional fundraiser is an individual or organization that specializes in raising money for nonprofits. They fall into two categories: consultant and solicitor. A consultant strategizes and creates campaigns for nonprofit organizations but does not handle money or solicit donations.
Professional solicitors run campaigns, take in donations, and hold the money for a period of time before transferring it to the charity.
Both charge a fee, but their success usually makes the cost worth it. Professional fundraisers typically focus on expanding the monthly or legacy donor base over the one-time donor, using software to manage donor relations.
When to consider a professional fundraiser
Nonprofit employees tend to wear many hats, meaning that only part of their job is dedicated to fundraising; or they have just a small team in development. Newer nonprofits might have trouble getting off the ground due to a lack of brand recognition.
In these cases, hiring a professional fundraiser could be the solution. Professional fundraisers know the industry inside and out; they know the trends and have the most updated donor behavior statistics. They can provide the marketing expertise that many nonprofits lack. Because they work with many charities, they utilize software that nonprofits don’t typically have access to, in addition to a network of sponsors and other connections.
Not all professional fundraisers are equal
Nonprofits need to look for an organization whose values align with theirs. There are also specific legal compliance issues with each state, and professional fundraisers have to get clearance to solicit funds in every state. Donors need to look for the same alignment along with transparency when it comes to high administrative costs, i.e., how much of the money raised actually goes to the charity. An average of about 40% of donations go to meet overhead expenses, according to Charity Navigator. When working with a professional fundraiser, consider their and their partner charity’s pass-through rates.
