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Nonprofit Fundraising: The Why and How of Storytelling

On November 20, Nancy Raybin, MPPM ’79, a nationally known leader in nonprofits and philanthropy, joined SOM’s Social Impact Lab to provide a compelling overview of the landscape of nonprofit fundraising.

Nancy Raybin
Nancy Raybin, MPPM '79 and former managing partner of Raybin Associates, speaks at Social Impact Lab at Evans Hall on November 20, 2024.

Photo: Emily Flahive

On November 20, Nancy Raybin, MPPM ’79, a nationally known leader in nonprofits and philanthropy, joined SOM’s Social Impact Lab to provide a compelling overview of the landscape of nonprofit fundraising. With decades of experience advising some of the largest nonprofits in the country, Raybin is a strategist, a connector, and an agent of change.

Even with her deep expertise, Raybin returned to the basics of fundraising, describing it as the essential link between philanthropy and nonprofit operations. “It’s hard [for board members] to understand that glitzy and glamorous nonprofit organizations don’t have the money to support their operations, but it’s true,” Raybin said. Without ongoing fundraising, nonprofits cannot run.

Overall, charitable giving has steadily risen in the past decade. The majority of giving now comes from individuals who, surveys show, care deeply about where their dollars go. This necessitates a more tailored approach to fundraising that requires unity across board and executive leadership. According to Raybin, the storytelling to potential donors that these leaders engage in is the most important aspect of fundraising: “You need to tell a story about the mission of your organization.”

Even among the most enthusiastic of nonprofit boards, fundraising is often viewed as a headache at best and an indicator of poor organizational health at worst. “Boards hate fundraising,” Raybin said. “They often think it means something is wrong with the organization.” However, the most impactful leaders in the nonprofit sector generate buy-in from board members regarding fundraising strategy, financial honesty, and donor relations.

This process is not without its challenges. Tensions between donors and leadership, cultural stigmas about overhead spending, and a pronounced need for operational transparency are just a few of the obstacles nonprofits face. In these conditions, effective leadership is essential. “It’s really important that the CEO and chair manage a well-regarded, highly functional organization,” Raybin said. “They have to run and govern this place smartly, and people need to know that they’re doing that.”

Technology and digital innovation are driving favorable changes in charitable giving, Raybin observed. “The big difference in fundraising now is that there’s plenty of data.” The financial metrics tracked by organizations such as GuideStar improve transparency for both donors and nonprofit leadership, leading to better-informed decisions.

Overall, Raybin is optimistic about the future of philanthropy, but emphasizes fundraising’s critical importance. Proper stewards of the fundraising process are a necessary force multiplier for nonprofits, and according to Raybin, SOM students are uniquely equipped to serve in these roles: “[As nonprofit leaders] you have to help donors understand what you’re doing with all of the money. With your business school experience here at Yale, you can help explain this.”