Taking on a nonprofit leadership role is a massive undertaking. You are instantly expected to be an expert on everything: finance, programmatic impact, operations, and fundraising. It often feels like drinking from a firehose while trying to sprint forward at the same time.

Your success as a leader is inextricably linked to your ability to secure resources. To build momentum, you must engage in fundraising right away. Here is what every new Executive Director or CEO needs to know:

1. Learn the Lingo

Every industry has its own shorthand. To build immediate credibility with your development team and your Board, you must be comfortable with key fundraising terms. Ensure you understand the specific nuances of:

• Donor Retention: How many donors from last year gave again this year?
• Annual Fund vs. Restricted Giving: Which funds cover the bills (unrestricted) and which are locked into specific programs?
• Endowment: Does the organization have a permanent fund, and what are the rules for drawing from it?
• Pipeline: Who are the prospective donors being moved toward a gift?

Interested in learning more about other common fundraising terms? Click here. 

2. Own Your “Why”

As the new leader, you are the primary storyteller for the organization. Donors will want to know why you chose this mission and this organization. Be ready to share your personal story: your first impressions of the work, the moment you knew this was the right role for you, and anecdotes from your first few weeks on the ground. While the organization’s history matters, your personal conviction is what builds the trust necessary for long-term investment.

3. Partner with Your Board

Board members are your fundraising allies. Schedule one-on-one meetings with every Board member as soon as possible to establish a relationship and then put in place a cadence of communication so you’re regularly in touch with the Board. Board members are more likely to work with you – on fundraising and other projects – if they know and trust you. Additionally, Board members who feel connected to your vision are more likely to introduce you to their networks and advocate for the mission.

Read more about Board engagement here. 

4. Audit Your Fundraising Performance

Before you can chart a new course, you need to know where you are starting. Ask for the following data points:

• Revenue Mix: What percentage of funding comes from individuals, foundations, corporations, or government grants? What are the organization’s other sources of revenue?
• Donor Loyalty: What is the donor retention rate?
• Participation: How many people are giving at the grass-roots level versus major gifts?
• Mechanics: What does the annual development calendar look like? Are there events and giving days? 

5. Curate Your Portfolio

You cannot (and should not) meet every donor. Work with your development staff to identify a “Top 20” list of stakeholders you need to know first. These should be individuals or foundation officers who have a history of engaging with the CEO. Use these initial meetings as a “Listening Tour” to understand what motivates their continued support.

6. Build a Fundraising Toolbox

Create a dedicated space (digital or physical) to collect “impact stories.” When you hear a testimonial from a client, see a program in action, or receive a note of gratitude, save it. Being able to pivot from “we need $5,000” to “let me tell you about the person whose life changed because of a $5,0000 investment” is the hallmark of a great fundraising program.

7. Empower Your Development Team

Your Development Director or fundraising staff should be your closest strategic partners. Establish a regular 1:1 meeting and protect that time on your calendar. Ask them to create a high-level Fundraising Dashboard for you—a single page that tracks total funds raised, progress toward goals, and the status of your top-tier prospects.

8. Shift Your Mindset

If you come from a non-fundraising background, you might feel a lingering discomfort with “the ask.” Reframe it: You are not asking for a favor; you are offering an opportunity. You are inviting people to invest in a vision they already care about. When you understand exactly how much the organization’s impact would shrink without philanthropy, the “ask” stops feeling like a burden and starts feeling like a responsibility.

Little Bean Group works with organizational leaders around the country to help them strengthen their fundraising knowledge and skills. We also provide an array of services to support organizations in their fundraising efforts. Contact us to learn more.

Frequently Asked Questions

Why is it important for nonprofit Leaders to immediately engage in fundraising?
Fundraising is a major part of a nonprofit leader’s job and so it’s necessary to engage early on in a leader’s tenure, even though they are likely still learning and getting up to speed. Engaging early can help to increase a leader’s knowledge of fundraising and identify areas of opportunity and challenge.

What should a nonprofit leader do first when it comes to fundraising?
Nonprofit leaders should first seek to understand their organization’s fundraising landscape. They also need to immediately begin to build relationships with Board members and donors. The article above lays out 8 key ways new leaders should engage in fundraising.

Who can help a new nonprofit leader engage in fundraising?
A new leader has many allies when it comes to fundraising. Development staff are there to support and direct a leader’s engagement in fundraising. Board members are eager to see their leader succeed in fundraising.