What is a Development Audit
and when does your organization need an audit?
A Development Audit is an internal assessment of
your fundraising program and your readiness to embark
on new development ventures. The Development Audit
looks at involvement of board, staff and volunteers
in the fundraising process and offers recommendations
on how to best use the human resources available
to the organization. It further evaluates the strengths
and weaknesses of your development systems, including
fundraising software. The Audit also offers suggestions
to help improve donor communications and stewardship.
Many organizations consider a Development Audit
when they are:
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- Preparing to embark on a major gifts,
capital or endowment campaign;
- Not satisfied with the results of
their annual giving program;
- Seeking to increase Board participation
in fundraising efforts;
- Attempting to compare their results
with similar organizations;
- Looking for an objective evaluation
their development program;
- Trying to diversify their funding
streams;
- Engaged in the strategic planning
process;
- Looking at restructuring their Development
Office;
- Seeking to take their program to
a higher level of professionalism.
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most case, the Audit is done by a consultant in order
to gain both objectivity and utilize the knowledge and
years of experience the consultant will bring to the table.
The staff, while not involved directly in the evaluation
process, will need to devote time to the Audit process.
Typical staff roles include: |
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- Completion of Development Audit
questionnaires;
- Providing supporting documentation;
- Meeting with the consultant to clarify
information and set goals for the audit.
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The
Board is also involved with the process, usually completing
questionnaires and participating in interviews with the
consultant. Typically the Board Chair, Chair of the Development
Committee and other selected Board members will be involved
in interviews. The consultant generally makes several
visits to the organization to meet with key staff, Board
and other volunteers.
An Audit will look at these areas: |
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- An analysis of the potential for
successful capital fundraising
- A revised table of gifts, if needed
- A recommended overall dollar goal
- A suggested campaign timetable and
budget
- Potential trouble spots
- The number and total dollar amount
expected from potential donors
- A list of potential volunteers
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1. The Organization’s
Readiness for Fundraising |
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- Legal Structure—does the
organization have 501 ( c ) 3 status?
- Organizational Structure—to
whom does the Development Office report?
- Strategic Planning—does the
organization have a long range plan?
- Fundraising Guidelines—are
there gift acceptance policies in place?
- Case for Support—is there
a written organizational case for support and case
statements to support various fundraising needs?
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2. The Board’s Role in Fundraising |
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- Board Composition—is the
board diverse, and does it have the appropriate mix
of skills and talents?
- Board Performance—is the
Board actively involved in fundraising and do Board
members support the organization financially?
- The Development Committee—is
there a Development Committee or other volunteers
involved in the fundraising program?
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3. The Role of Staff |
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- Departmental Structure—is
there adequate staff, doing the right jobs with the
right tools?
- Functions of the Development Office—does
the Development office have the time and skills to
perform all development functions?
- Training & Educating Staff—is
there a commitment to professionalism in the Development
office? Training &
- Educating Role of the CEO in Fundraising—is
the CEO involved in fundraising and does he/she communicate
regularly with the Development office?
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4. Systems & Procedures
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- Donor Database Software—is
there an adequate donor software program in place
and is staff trained to use the program?
- Procedure Manual—are there
procedures in place to receive, record and acknowledge
gifts?
- Hardware—is there adequate
hardware to support development systems and programs?
- Internet Usage and Website—does
staff use technology to improve donor relations?
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5. Cultivation &
Stewardship |
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- Legal Structure—does the
organization have 501 ( c ) 3 status?
- Organizational Structure—to
whom does the Development Office report?
- Strategic Planning—does the
organization have a long range plan?
- Fundraising Guidelines—are
there gift acceptance policies in place?
- Case for Support—is there
a written organizational case for support and case
statements to support various fundraising needs?
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6. The Integrated Development
Program—Does the organization rely too heavily on
one source of funding or is there a plan in place to develop
funding from various sources including: |
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- Grants
- Special Events
- Direct Mail
- Telephone Fundraising
- Major Gifts
- Corporate Appeals
- Planned Gifts
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Once the Development
Audit is complete, the report should be used to develop
a strategic plan for development, addressing the areas
raised as issues needing improvement in the Audit. A comprehensive
Development Audit can help an organization build on its
strengths, overcome its weaknesses and address opportunities
for future growth.
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