A Few Of Our Economic Development Clients
Economic Development Fundraising FAQs
How does economic development fundraising differ from traditional charitable giving?
What sets economic development fundraising apart from traditional nonprofit fundraising is its goals. While traditional nonprofit fundraising addresses social needs, such as providing emergency food, medical supplies, or disaster recovery, economic development fundraising aims to generate investments for infrastructure, job creation, and systemic wealth-building.
Is a feasibility study necessary before an economic development campaign?
Yes, a feasibility study is necessary before launching an economic development campaign because it serves as a critical market test, ensuring your strategic plan aligns with local investors' priorities and financial capacity. If you launch a multi-year campaign without a thorough assessment, you may end up pursuing initiatives that local business leaders are not willing to support.
During a feasibility study, consultants will interview your key stakeholders to gauge their reaction to the proposed initiatives. This process not only identifies the total amount of capital your EDO can realistically raise, but also helps uncover potential campaign leaders and build early buy-in from the community.
How can EDOs prove their value to potential investors?
To prove your ROI to potential investors, EDOs must move beyond qualitative mission statements and utilize data-backed metrics that show how the investors’ capital directly contributes to specific regional wins, such as:
- Job metrics: Track the number of new jobs created, retained, and supported by your workforce initiatives.
- Capital investment: Measure the total private capital investment attracted to the region as a result of business expansion or recruitment efforts.
- Community impact: Quantify metrics like infrastructure improvements, housing stock growth, or local tax base expansion.
How does an EDO maintain funding momentum between major campaigns?
EDOs maintain funding momentum between multi-year campaigns by implementing a robust investor retention strategy that includes:
- Tiered annual giving: Many EDOs follow an annual-giving model, offering benefits such as exclusive access to workforce data and a network in exchange for financial support.
- Asset and service monetization: Some EDOs generate revenue from their real estate, parking facilities, and other assets. Additionally, others get their revenue from specialized research, site-selection consulting, and international trade missions.
- Grant acquisitions: EDOs sometimes partner with local institutions, such as universities and government agencies, to secure competitive grants for workforce development, infrastructure, and other community initiatives.
Ready to Grow Your Economic Development Organization?
When you are ready to get the support you need to thrive, contact Convergent with details about your EDO, and our expert consultants will be in touch with information about how we can help. With the right resources and experience on your side, you can meet and exceed your funding goals.
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