Flat Earth Fundraising: The High Cost Of Mistreating Suppliers
Some nonprofit fundraisers squeeze so hard on price that it’s enough to make a Hong Kong jeweler cry.
Others treat their suppliers and consultants like some hired hand, there to do their bidding no matter how stupid and short-sighted.
Still others — the successful and innovative (surprise!) – have mastered the art of building lasting, respectful relationships between ‘outside’ and ‘inside’ talent. They think of their ‘outside’ colleagues as partners.
The tragedy of the Turnip-Squeezers is the harm they do to their own nonprofits. By focusing on pressing out pennies on price they’ve lost sight of what really matters — increasing net income and value.
Tom and I don’t devote nearly enough space to the client/agency/supplier relationships, given their importance to fundraising success and innovation.
So … it was with joy that we opened yesterday’s new post on SOFII — Working with suppliers: building partnerships based on the value of money.
In an interview conducted by Ken Burnett with Mark Astarita, director of fundraising at the British Red Cross, you’ll find an entire self-contained primer on best practices and attitudes when it comes to dealing with suppliers – or as Mark more properly terms them, “Partners”.
I urge you to share the SOFII Post not only with fundraising colleagues, but with the folks in finance, in the head office and on the board as well.
Not only do Mark’s words reflect the respect good consultants and suppliers deserve, he’s also walked his talk. He’s Chair of the UK’s Institute of Fundraising, which hosts the annual “Partners in Fundraising Awards”.
In contrast to most awards events in our sector, the PIFA truly recognizes the range of skills essential for today’s multi-channel success: Best Payroll Giving Agency … Best Recruitment Agency … Best Telephone Fundraising Agency … Best Database Supplier … Best Lottery Provider … Best Face-to-Face Fundraising Agency … Best Strategic/Fundraising Consultancy … Best Special/Challenge Events Partner … Best Creative Agency … Best Digital/Tech Partner … Best Direct Marketing Partner … and Best Giving Platform.
And as Mark notes: “The PIFA awards were set up to recognize … suppliers [who] often feel undervalued, even abused. It’s a welcome innovation.”
Here are some of Mark’s other insights and recommendations on Client/Partner relationships:
- “We value long-standing relationships that grow in understanding and trust.”
- “The cost of pitches [responding to RFP’s] is not just about cost to the agencies. Inevitably there’s a huge cost to the charity too … It shouldn’t be seen as an obligatory ritual. It needs to be an efficient process that reflects genuine desire for fresh input to a significant piece of business.”
[For my American-style diatribe on this, see The Dangers of RFPs.]
- “I’ve no problem with suppliers making a profit. We make vastly more than they do.”
- “I’ve never worked with someone I don’t like. I’ve got to respect, admire and like someone to do business with him or her. I treat suppliers as colleagues, not at arm’s length. It’s in my interest for them to thrive.”
FINALLY … wise words for everyone: “Fantastic clients get fantastic results. And some people just can’t be helped. Fundraisers should aspire to be fantastic clients just as agencies should aspire to be fantastic suppliers.”
Amen and Amen.
Roger
P.S. Practicing what you preach. How many times have you gone onto the street as a Face-2-Face representative for your nonprofit? Or done a stint in your organization’s call center?
You’ll enjoy Mark’s recounting of the time he and the CEO of the British Red Cross went out on the streets to sign up donors face to face. Read it here.
Amen! I am happy to spend more on a skilled, ethical supplier who works with us like a partner. If you’re always paying peanuts you will end up with a bunch of monkeys!