94. What Separates Great Nonprofits from Those that Struggle
About this episode
Have you ever wondered why some nonprofit organizations seem to effortlessly raise millions while others struggle to stay afloat, even when they share similar missions? It’s a question that has fascinated me for years, and it’s one that Alan Clayton, renowned nonprofit consultant and author of Great Fundraising Organizations: Why and How the World's Best Charities Excel at Raising Money, tackles head-on.
In a recent conversation with Alan on the Intentional Fundraiser Podcast, he shared transformative insights into what separates great fundraising organizations from the rest. If you’ve ever felt stuck, overwhelmed, or unsure how to take your nonprofit to the next level, this discussion is for you. By the end of this post, you’ll walk away with actionable strategies and a renewed sense of purpose to revolutionize your fundraising efforts.
What Makes a Great Fundraising Organization?
Alan Clayton’s definition of a great fundraising organization goes beyond size or longevity. It’s about intentionality—an organization’s deliberate drive to achieve large-scale, ethical growth that directly impacts its mission. According to Alan, the key distinction lies in recognizing that nonprofits are essentially two businesses with one mission:
Meeting the needs of service users or beneficiaries.
Meeting the emotional needs of donors.
The organizations that thrive are those that excel at both. However, many nonprofits falter because they fail to understand this duality. Instead of focusing solely on their organizational credibility or achievements, great fundraisers position themselves as problem-solvers for their donors. As Alan aptly put it, “No donor gives money to an organization; donors give money to solve a problem.”
This insight is profound because it shifts the focus from internal metrics to external impact. It also highlights the importance of aligning internal teams—fundraisers and program staff alike—around a shared emotional purpose. As Alan said, “The emotional energy of great organizations moves from being pointed internally at self-criticism to being pointed externally at a common dream.”
The Role of Leadership and Organizational Alignment
Leadership plays a pivotal role in transforming an organization into a fundraising powerhouse. Alan emphasized that successful CEOs must embrace fundraising as part of their mission, even if they come from programmatic backgrounds. Leaders who invest in their own education about fundraising and adopt a growth mindset can drive transformational change.
Organizational alignment is another critical factor. Alan shared three key principles for achieving this:
Mutual respect: Fundraisers and program staff must respect each other’s professional expertise and value.
Shared purpose: A clearly defined emotional purpose aligns teams and resolves conflicts between departments.
Effective communication: Great organizations prioritize real conversations over passive-aggressive emails or siloed decision-making processes.
One memorable example Alan shared was from his work with St. Labre Indian School in Montana. By redefining their purpose—from sending students to college (a culturally mismatched goal) to equipping young people with vocational skills to sustain their communities—the organization found its emotional core and unlocked its fundraising potential. This story illustrates how clarity of purpose can unite teams and inspire donors.
Balancing Short-Term Goals with Long-Term Vision
One of the biggest challenges nonprofits face is balancing immediate fundraising needs with long-term sustainability. Alan’s advice? Start with your end goal in mind—what problem do you want to solve in 10 years? Then work backward to determine what investments are needed today to achieve that vision.
He also stressed the importance of shifting board mindsets from governance-focused (managing balance sheets) to growth-focused (solving problems). Boards should ask themselves: “How do we want the world to be different when our tenure ends?”
For smaller nonprofits, Alan offered practical advice:
Invest in quality training for fundraisers if hiring experienced professionals isn’t feasible.
Recycle a portion of raised funds back into fundraising efforts until you reach critical mass.
View fundraising as an investment rather than an expense—a mindset shift that can make or break your organization’s future.
Transforming your nonprofit into a great fundraising organization isn’t easy—it requires intentionality, courage, focus, and tenacity—but it is absolutely achievable. By understanding the dual nature of your mission, fostering organizational alignment, and adopting both short-term agility and long-term vision, you can unlock unprecedented growth and impact.
As Alan reminded us during our conversation: “Good enough is not good enough.” Your donors deserve excellence, and so do the people you serve.
I’d love to hear your thoughts on these ideas! What challenges are you facing in your fundraising efforts? Share your experiences in the comments below, and don’t forget to pass this post along to colleagues who might benefit from these insights.
With boundless gratitude,
Tammy Zonker
Major Gift Expert & Keynote Speaker
Our guest
Alan Clayton, CEO at Revolutionise International, International Consultant, Author
LinkedIn / Facebook / Contact / Website
“No donor gives money to an organization; donors give money to solve a problem.”
Alan Clayton, CEO at Revolutionise International, International Consultant, Author
Resources mentioned in this episode
From Burnout to Breakthrough: The Hidden Pattern Behind Extraordinary Fundraising Success
A First-Rate Madness: Uncovering the Links Between Leadership and Mental Illness by Nassir Ghaemi
From Burnout to Breakthrough: The Hidden Pattern Behind Extraordinary Fundraising Success
Thanks to our friends over at Kindsight for sponsoring this episode of The Intentional Fundraiser podcast.
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