Demystifying the RFP Process

The request for proposal can sometimes be the official “first date” for most agency/nonprofit organization relationships. It sets the tone for the partnership and provides a road map for future success.

While each RFP is unique, there are straightforward guidelines that will help you prepare a document for effectively matching your needs with agency offerings. Here are some tips:

1. Ask the right questions. While you’re looking for an agency to support you, it’s the people who work at the agency with whom you’ll be dealing on a daily basis. There has to be a synergy in overall philosophy, personality and work style for both parties to be productive and successful.

Be sure to ask questions that will offer insight into these important relationship-building traits.

In order to transform an objective “wish list” into reality, start from the end result and work in. What is it that you wish to accomplish? And what is most important to you in getting there? Communicate what you want by asking strategic questions. For example, if agency size is important, ask the agency to not only tell you how many employees it has (in-house and freelance), but also how the staff will be organized to serve your organization after a contract is signed. You’ll protect yourself from being awed by a great presentation made by an agency that lacks commitment or resources after you say “yes.”

2. Offer a realistic time frame. Competent fundraising agencies, given the time, will dig into their pools of research and experience to provide you with keen insights on potential new strategies. Realistic observations are worth a whole lot more than hollow promises. There are cases where time is at a premium, of course, but when you can, offer a month or more. Any less and the agency might have trouble providing creative assessments and competitive quotes.

3. Provide accurate, complete information. You’ve heard the expression, “garbage in/garbage out.” The more data you provide to the agency, the better its response. Include such details as:

• the reason for your agency search (change, new ideas, etc.);
• current challenges;
• specifics regarding existing and past programs;
• organizational background, history and mission;
• samples of current materials and an explanation of what worked and what didn’t;
• description of current processes;
• comprehensive outline of services you need and why;
• budgeting guidelines;
• clear instructions; and
• description of the review and feedback process.

4. Ask for comprehensive short-term plans. Most likely an agency will not be adequately equipped to provide extended-term plans (five-plus years), but a one- to two-year plan may be much more feasible, depending on the information you provide. The more meaningful the data you supply, such as current membership rate, profile of top donors and lifetime value to your organization, the better equipped an agency will be to meet your current and near-term needs. But don’t judge the response by the estimated net income or number of new donors generated. Rather, look at the process by which the agency came to its conclusions and recommendations.

A word about spec creative: Be mindful that providing spec creative costs an agency time and money. Consider requesting creative in a second phase after you have eliminated those you no longer are considering. In the first phase, request a variety of examples of past work to get a feel for the agency’s concepts and ideas, communication style, and relevance to your particular mission.

5. Keep the lines of communication open. Do your part to keep all parties informed, and encourage agencies to call you with questions. If one agency has a question, share it with the other agencies that you have invited to submit proposals, as they are all likely to have the same concern. Remember that agencies will call you to determine if your organization would be a good fit for them.

And finally, let agencies know why they did — or did not — make it to the next phase. We’ve often learned more about how to improve our fundraising services from frank discussions with organizations that didn’t choose us than continuing on with a seemingly happy client that does not provide feedback.

6. Select a registered agency. Your fundraising agency should feel the same responsibility for good stewardship as you do. Be sure you choose one that adheres to the code of ethics published by the Association of Direct Response Fund Raising Counsel, the Direct Marketing Association and the Association of Fundraising Professionals. And make sure that your fundraising counsel is registered in every state that requires it.

Tom Hurley is senior advisor at DMW Direct. Connect with him on LinkedIn or reach him at 774.773.1200.