When we attend interviews for development positions while providing interim development services, we often hear statements like, "We just need a really effective salesperson as a fundraiser," or see individuals with sales-specific backgrounds only being considered top candidates for development roles. This misunderstanding can lead to significant challenges for nonprofit organizations.
While it’s possible for a skilled salesperson to learn fundraising, it will require substantial coaching, mentoring, education, on-the-job learning, and professional support. Fundraising is a specialized field: many successful development directors have spent years learning on the front lines, through graduate-level education, and ongoing professional development. Even with all my fundraising skills, I didn’t become an adept businesswoman overnight when I launched Fundraising Sol. In the same way, a salesperson does not inherently possess the skills to be a Director of Development. They can learn over time, but each organization must decide if they are willing or have the capacity to make such an investment.
Understanding the Core Differences Between Sales and Fundraising
The differences between sales and fundraising can be significant. Let's explore several ways these two disciplines can be on opposite ends of the spectrum.
Nature of the Transaction:
Sales: In sales, there is a clear exchange of goods or services for money. Customers receive a tangible product or a well-defined service in return for their payment.
Fundraising: Fundraising involves soliciting donations without a direct exchange. Donors give out of goodwill, passion for the cause, or a desire to make a difference. The "return" on their investment is often intangible and emotionally driven.
Motivations of the Donor vs. Customer:
Sales: Customers are motivated by personal needs and the perceived value of the product or service. Their decision is driven by logic, necessity, or desire for the benefits offered by the purchase.
Fundraising: Donors are motivated by altruism, a sense of community, or belief in the mission of the organization. Their decision is more emotional and value-based, often driven by a connection to the cause and a desire to contribute to something greater than themselves.
Relationship Building:
Sales: While relationship building is important in sales, the focus is more on closing deals and achieving targets. Repeat business is important, but each transaction can be relatively short-term.
Fundraising: Relationship building is the cornerstone of fundraising. Donors need to feel valued, appreciated, and connected to the mission. Fundraising is about long-term relationships, cultivating trust, and ongoing engagement.
Communication Style:
Sales: Effective sales communication often involves highlighting features, benefits, and the superiority of the product or service. It is more transactional and persuasive in nature.
Fundraising: Fundraising communication focuses on storytelling, impact, and vision. It involves sharing compelling stories, demonstrating the impact of donations, and connecting the donor emotionally to the mission.
The Focus on the Ask:
Sales: In sales, the "ask" or solicitation is the driving force behind the entire process. The goal is to close the deal, and salespeople are often motivated by commissions and bonuses tied directly to their sales performance. This high emphasis on the “ask” means that much of the salesperson's strategy revolves around making the sale, meeting targets, and earning financial incentives.
Fundraising: In fundraising, the solicitation or ask is an important, but relatively small part of the overall fundraising cycle. The process involves much more than just asking for donations. It includes building relationships, engaging donors, and demonstrating the impact of their contributions. Ethical and legal considerations also play a significant role: in many states, fundraisers cannot work on commission or receive bonuses related to funds raised, as this can be viewed as coercive. The focus is on creating a genuine connection with donors and ensuring their continued support, rather than simply securing a one-time donation.
Expertise and Knowledge:
Sales: Sales professionals need to be well-versed in their product or service and understand market dynamics. Good salespeople know their market landscape inside and out - whether that be for windows, insurance, or house cleaning services. They use this knowledge to position their product effectively against competitors and to anticipate market shifts.
Fundraising: Fundraisers need to know the philanthropic landscape intimately. This includes understanding the interests and priorities of local philanthropists, institutional funders, and program officers. Knowing who the key players are and having established relationships with them is critical. This network is essential for developing a successful fundraising program, as it helps in identifying potential donors, understanding their giving patterns, and effectively communicating with them.
As seen above, while sales and fundraising share some superficial similarities, they are fundamentally different disciplines. A salesperson's expertise in closing deals and navigating competitive markets may not align with the nuanced relationship-building and stewardship required in fundraising. Similarly, transitioning from being an excellent fundraiser to running a business required me to develop a whole new set of competencies. I had to learn about accounting, finance, HR laws, trademarks, and more, all of which were outside the typical skill set of a fundraiser. This experience highlighted for me just how distinctly different professional roles can be, even if they seem related at first glance.
Understanding and respecting these differences is crucial for any organization looking to effectively build their fundraising team. Nonprofits should carefully assess whether a candidate's sales background will enhance their fundraising efforts or if it might create challenges due to the different nature of the work. By recognizing these distinctions, organizations can make more informed hiring decisions and ensure their fundraising teams are equipped with the right skills and mindset to succeed.
Frances Roen is a Georgia girl at heart, and has been graciously adopted by beautiful, snowy Minnesota. She is a forty-something daughter, friend, mom, wife, and entrepreneur, and is always on the look-out for a perfectly fried piece of chicken.
Frances is a Certified Fundraising Executive (CFRE) with nearly 20 years of experience fundraising and has raised over $200M for nonprofits. She has held fundraising positions at The Bakken Museum, Augustana Care Corporation, and YouthLink and consulted with dozens of nonprofits clients across the globe. In these roles she has been responsible for all aspects of fundraising including comprehensive campaigns, major and planned gifts, annual funds, events, communications, corporate partnerships and volunteers.
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