The board of a charity received an offer it could not resist: A funding agency would provide up to $100,000, provided the charity would raise matching funds on its own. Everyone got mobilized and, for several months, focused heavily on fundraising. In the end they fell far short of their target, and the experience proved to be very negative. More significantly, the substantial focus on fundraising meant that several important initiatives were suspended and some good opportunities were lost. In addition, a number of volunteers left the charity, because they did not agree with the excessive focus on fund raising.

In hindsight, what was the problem? The board made the decision to engage in intensive fundraising reactively and not proactively. It was responding to an offer by an external force - the funding agency - but without paying close attention to the organization's own needs and strategic direction. The decision to fundraise was driven by dollar signs, and not with a clear idea of what the money would be used for. A reactive board like this one models the phrase: “If you don’t know where you’re going, any road will take there.”

The lesson? Before you embark on fundraising, establish your organization's strategic direction, mission, vision, values, goals and priorities, and what any funds might be used for. Having done that, all your decisions should be proactively driven by a commitment to advancing the organization in its strategic direction and to serving its stakeholders in the most meaningful way. Treat money only as a means to an end, and not as an end in itself.