erik – Page 56 – The Healthy Non-Profit

Echoing Penelope from the trenches. Do your volunteers “get it”?

November 20, 2012 erik Donor-centered fundraising, Fundraising, volunteers

As all of you know, I am a Penelope Burk fan from my head down to my toes. Her book Donor Centered Fundraising is a resource development manifesto for me. I’ve dedicated a number of blog posts to various donor-centered topics ranging from cultivation and stewardship strategies to newsletters and gift acknowledgement letters. I just love blogging about these topics. So, it is especially thrilling for me when a volunteer picks up on these themes and joins the ranks of people spreading the donor centered fundraising message and Penelope’s work.

Last week, an old Boy Scout friend and volunteer who subscribes to this blog sent me an email. Jim is still a volunteer at Northwest Suburban Council in Mount Prospect, Illinois and he is very involved in the parent-teacher organization at his child’s school. Needless to say, he has been involved in countless fundraising activities throughout the years.

Jim’s email was simply him forwarding me an eBlast from Guidestar that was titled “More Money For More Good” and promoted one of Guidestar’s free guidebook resources that they call “More Money for More Good: Your Nonprofit Guidebook to Fundraising with Impact“.

I always love it when friends, family and blog subscribers send me stuff because I am always on the lookout for topic ideas. So, I read the Guidestar eBlast and it echoed all of the good teaching of Penelope Burk on the subject of donor centered fundraising (e.g. impact, donor communication, etc). I even clicked on the cute, informational YouTube video about “How Nonprofits Can Improve Fundraising, Increase Effectiveness, and Better Engage with Donors“.

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=IS128sCCJUQ#!]

Guidestar is great. They are smart. Their stuff is always quality, and I hope you click-through and access some of their resources because it will surely help your agency with its year-end fundraising efforts.

However, it was the words from my friend, Jim, that resonated most with me because it was straight from a volunteer’s mouth and his point of view (which I think is much more powerful than what any professional organization can communicate).

Here is what Jim said in his first email that included that Guidestar eBlast:

“We know what we’re doing because we do it (almost) every day, but our donors don’t necessarily live and breathe our mission/passion. They’re more apt to help if we remind them what we’re doing & how they could help.”

I couldn’t have said it better, Jim!

In his second email responding to my request to use his name and story as part of this blog, he elaborated more on his original point:

“The reminder about having donors understand my organization’s impact is what jumped out at me. I have people who are so involved and they are my organization’s best cheerleaders, but they do not realize that the people they are soliciting do not really know what we do. Making people understand what we do and why we exist is the key to making them care.”

Again, I think Jim hits the nail on the head with this last statement and it should give every fundraising professional a tingling sensation when they hear one of their fundraising volunteers or board members vocalize such powerful points of view.

Perhaps, at this point, you’re wondering how close Jim might have nailed the concept? Well, here is something Penelope Burk said on page 87 of her book about her donor research and this topic:

“23% of study donors always or most of the time receive measurable results of their gifts at work; 29% receive this information sometimes; 55% never or rarely get this information. A number of other questions in the study confirmed that measurable results influence donors’ future support more than anything else.”

How much would you pay to be in the trenches with a fundraising volunteer who ‘gets it’ like Jim? The better question is “what are you doing to help your volunteers achieve these ‘ah-ha’ moments? Once one volunteer has this epiphany, how do you position that same volunteer to become an advocate and help their fellow volunteers have similar revelations?

I think there is an important lesson for all fundraising and non-profit professionals to be learned from Jim’s story. Please scroll down and share a few quick thoughts and answers to the questions above in the comment box below. We can all learn from each other.

Here’s to your health!

Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Nonprofit Black Friday: Running an Online Fundraiser

November 19, 2012 erik Uncategorized

This year, Thanksgiving has done it again. It absolutely snuck up on me. With Thanksgiving coming up this Thursday, that means the madness of Black Friday begins at midnight.

You might be asking, why is Marissa talking about Black Friday in a social media column for non-profits? Well, the answer is I wanted to look at how nonprofits can use Black Friday marketing strategies and turn them into a fundraising drive. As you are most likely aware, many people make charitable donations during this time. Why not give them more reasons to do so?

This post may be a bit late-coming for your planning this year, but maybe some of these ideas can help you throughout the holiday season.

Bust Down Those Doors

Black Friday sales are all about door-busters. Retailers will give huge discounts on items starting really early in the morning, just to get people in the door. They are usually on high demand items and on items in small quantity. In my mind, I think that non-profits can do something similar.

Instead of running special deals on goods; nonprofits can run “specials” on donations (e.g. donations within a certain timeframe will used for a specific project). Changing the project or fund that will benefit will keep your supporters interested in what is next. It would also be an opportunity to expose your community all that your organization does.

Create Buzz with Social Media

When running a campaign like this, you will want to use all of your social media networks to their fullest. You have spent all of this time creating a following on each network, now is the time to mobilize your troops to help your cause. Here are few things to remember when doing so:

Let people know what is going to happen. It’s ok to spoil a few of your plans. You want to get people interested.
Photos are are your friend. Posts on social media that include photos are more liked and shared more than posts without photos. Including them will only help you out.
Update early and update often. If you are going to run a campaign like this you want to keep your followers aware of what is happening. This not only keeps those who are following the event interested, but it also gives you an opportunity to attract new supporters.
Give people a place to go. Be clear in your posts and give people direction on where to find information. If there is a donor form on line, attach the URL to every post. If people need to call in, make sure you have the phone number right there.
Use social media managers to help you plan out your posts. Facebook allows you schedule your posts in advance and you can use a social media manager such as Hootsuite to help manage your posts on Twitter, Google+, and others.
Respond to comments. If someone comments or asks a question, make sure you respond in a timely manner. Also, if someone shares a photo of yours, make sure you thank them for doing so. You want to collect as much good karma as you can.

I know that not every nonprofit will benefit from running a campaign like a Non-profit Black Friday, but maybe your organization can run something similar. Running fundraisers online will become more and more commonplace as people live more and more of the their lives online.

Has your organization already run a fundraiser online? What was successful and what wasn’t? I’d love to talk about it more in comments.

Here’s wishing you all a Happy Thanksgiving! Thank you all for reading Mondays with Marissa on Donor Dreams!

Paralyzed by equally bad decisions? Then bankruptcy it is!

November 16, 2012 erik organizational development

Welcome to O.D. Fridays at DonorDreams blog. Every Friday for the foreseeable future we will be looking more closely at a recent post from John Greco’s blog called “johnponders ~ about life at work, mostly” and applying his organizational development messages to the non-profit community.

In a recent post, John appealed to his creative muse to write about a 14th century French philosopher named Buridan by writing a story about Buridan’s ass (if you want to know, then you need to go read the post). In a nutshell, this philosopher believed “in the face of equally good alternatives, he believed a rational choice could not be made“.

This got my nonprofit wheels spinning, and I wondered if the opposite is also true. In other words, in the face of equally BAD alternatives is it impossible to make a rational choice.

Hmmmm?

I don’t know about you, but since the economic downturn began almost five years ago I’ve seen a lot of non-profits prove this point.

Two equally bad alternatives:

Apply for more government contracts in spite of slow payment and what seems to likely to be future cuts and claw-backs due to a poor tax revenue situation all in the name of keeping the agency’s doors open; OR
Cancel some government contracts because they don’t come close to covering costs, which means a loss of some (albeit small) revenue that helped cover administrative overhead resulting in downsizing and re-organization. Of course, there is usually a plan to shift resource development efforts and invest more in private sector fundraising, but the re-org and downsizing destroys public confidence in your agency and these plans likely fall short.

Ugh! Which equally bad option should we choose? Of course, board volunteers drag their feet and don’t make a decision because who wants to be known in the community for slashing services or downsizing a “do-gooder” non-profit organization?

Besides, the board members sitting around the table weren’t recruited for their fundraising skills because when they were recruited the government funding situation was good and there was no need to focus recruitment efforts on finding “lean-mean-fundraising-machines”. So, they are probably very reluctant fundraising solicitors and very resistant to this idea.

Staff members aren’t much better as they reach for their rosary and convince themselves that “hope” is a strategy.

Do you think that I am talking about your agency or some other organization in your town? Let me assure you that the agency I have in mind is none other than Jane Addams Hull House. The Chronicle of Philanthropy wrote a great story about this tragedy back in February, and I think they help me prove that the opposite of Buridan’s philosophy is also true.

The scary thing about this example is that I can name a number of other non-profits who appear to be going down this same road.

Regardless, if you wait too long to make a decision, then everything caves in and you’re out of business.

Interestingly, I came across an old New York Times article that examined the emerging trend of non-profit organizations using bankruptcy laws to shield themselves from this phenomenon. The newspaper did a nice job of explaining an agency’s two options:

“Under Chapter 11 of the federal bankruptcy code, charities can get relief from creditors, obtain emergency financing, renegotiate leases and draw up a reorganization plan to let them emerge as financially viable. Some charities, however, have resorted to Chapter 7 of the code, under which organizations liquidate. The American Musical Theater of San Jose, Calif., for instance, took that route.”

My gut feeling tells me this will become a bigger and bigger trend as more and more non-profit boards experience difficulty in making a choice between two very bad decisions (whatever those decisions may be). Hopefully, they don’t end up like Buridan’s ass in John’s blog post . . . DEAD.

Has your non-profit organization ever been faced with the choice of two bad decisions? How did you work through it and avoid indecision? Have you ever seen a non-profit organization in your community file for bankruptcy? If so, how did that turn out for them? Did they survive? How did they restore donor confidence? Please use the comment box below to share your thoughts.

Here’s to your health!

A Philanthropy Day present for you

November 15, 2012 erik Donor-centered fundraising, Fundraising

As I explained in Tuesday’s post titled “Happy Philanthropy Day 2012,” I was in Rochester, MN helping the Southern Minnesota Chapter of the Association of Fundraising Professionals celebrate National Philanthropy Day. There were awards for philanthropists and fundraisers. Training sessions were offered to both staff and board. It was uplifting, celebratory, engaging, and education.

People typically turn holidays into opportunities for gift giving, and I don’t believe Philanthropy Day should be any different. Obviously, the Southern Minnesota Chapter was very thoughtful in their gift giving when they decided to give the gifts of recognition and professional development to their members and the Rochester community’s philanthropic community.

When I thought about what I should give the readers of this blog for Philanthropy Day, it was an idea that came to me very quickly.

At the end of one of the training sessions I had facilitated, I asked that very talented group of fundraising professionals to engage in a brainstorming session around what a set of donor centered fundraising policies might look like for a typical non-profit organization. I did this because in my travels I just haven’t seen many agencies tackling this project. So, my gift to you this Philanthropy Day is that I will share the results from that exercise. (A special thanks to the Southern Minnesota Chapter for collaborating with me on this gift.)

Before I begin, I should mention that there was a robust discussion about whether or not this list should be “policies” or something else (e.g. practices, procedures, parts of a plan). Regardless, we did build consensus around the idea that this list should begin with a “P”. 😉

The following is a draft list of ideas and is intended to get you and your resource development committee discussing possibilities:

[gifts of X amount] get a phone call from a board volunteer within [Y number of days] of sending out the initial acknowledgement letter.
[gifts of X amount] get a phone call from a volunteer and client within [Y number of weeks or months] of sending out the initial acknowledgement letter. This call should include verbiage that conveys a sense of what the donor’s contribution has helped produce.
A written policy on when to “discontinue contact” with a donor.
A written policy that speaks to the idea of how to handle donor data (e.g. sale of lists, distribution of reports, etc)
[asks of X amount] must always be done face-to-face with someone who has a relationship with the donor participating in the solicitation.
A written policy pertaining the collection, capture, and use of donor centered data (supported with training)
A procedure written about the board mentoring policy specific to how board members model participation in a donor centered fundraising program
A written policy about pledge payment options designed in a donor centered way (e.g. how about asking the donor to what is most convenient for them rather than just depending on them to check boxes on a form)
A written policy dealing with donor confidentiality of information (and perhaps engage donors in helping write that policy or give input via a focus group)
A written procedure for sending a personalized gift acknowledgement letter within [X number of days] that includes the following information: 1) confirmation that the gift was received, 2) expressed appreciation and excitement for the gift, and 3) a reaffirmation of what the gift will be used for.
A written policy or procedure clearly stating that there must be [X number of cultivation/stewardship touches] in between solicitations. (Note: the group who offered this recommendation suggested seven might be the right number)
A written policy or procedure on issuing a press release for all gifts larger than [X size gift]
A written policy or procedure on sending letters from beneficiaries/clients to donors to demonstrate thanks and illustrate impact/ROI.
A written policy or procedure on when a board member signature should appear on a gift acknowledgement letter
A written policy or procedure on when handwritten notes should be used in addition to the donor database generated letter
A written policy or procedure addressing the issue of when and with whom to use “events” to cultivate/steward donors (Note: please note they were not referencing fundraising events but rather friend-raising events)

Again, a special thank you to the Southern Minnesota Chapter of the Association of Fundraising Professionals for helping me produce a thoughtful blog post that doubles as a great Philanthropy Day gift.

What do you plan on doing on Philanthropy Day? It could be as simple as calling a special donor (regardless of whether or not they are a donor to your agency) and thanking them for what they do. Or you could scroll down and use the comment box below to add one more suggestion to the list that was started above.

Here’s to your health!

Happy Philanthropy Day 2012

November 13, 2012 erik Fundraising, volunteers

Today, I have the honor and privilege of being in Rochester, Minnesota to celebrate National Philanthropy Day with the Southern Minnesota Chapter of the Association of Fundraising Professionals.

The way this chapter celebrates National Philanthropy Day, which is officially on the calendar this year for November 15th, is by hosting a day long conference for non-profit professionals as well as board and fundraising volunteers. I cannot tell you how excited I am to be the keynote speaker at the awards luncheon and facilitate both morning and afternoon training sessions.

If this is the first time you’ve heard of this holiday, I encourage you to click the link above to learn more, but here is a quick explanation from the AFP website:

“National Philanthropy Day®, November 15, is the special day set aside to recognize and pay tribute to the great contributions that philanthropy—and those people active in the philanthropic community—have made to our lives, our communities and our world.”

Click here to view a brief video that is sure to pull your heart-strings:

[youtube=http://www.youtube.com/watch?v=D__GyC0sY9I&feature=youtu.be]

Does your community celebrate National Philanthropy Day? If so, please share a little bit about your event in the comment box below. If not, why not plan your own celebration as a way of honoring your donors and volunteers?

In one of my sessions, I will engage local fundraising professionals and volunteers in a brainstorming exercise focused on what donor centered fundraising policies might look like. As my National Philanthropy Day gift to the readers of this blog, I will share some of their thoughts with you on Wednesday.

Please join me in honoring philanthropists . . . wish someone a Happy Philanthropy Day on November 15, 2012.

Here’s to your health!

Social Media and Election 2012: Strategies Your Nonprofit Can Use

November 12, 2012 erik Mondays with Marissa, technology

Each year, a campaign’s online role becomes more and more valuable. The number of supporters each candidate has online is almost as important as the returns coming in from the daily polls. The election of 2012 was no different. Both candidates were on all social media platforms and they were using them to make sure their message was broadcast loud and clear before Election Day. Let’s take a look at how they did it.

Email
Tried and true, email is still a viable means of communicating with supporters. Getting people to sign up for your email list might be difficult, but once they are it is easy to update them on the major happenings with your organization. One thing I noticed, by being on the email list for one Presidential Candidate is that it’s all in how the email is sent that makes the difference.

Make it personable. Each message I received during election season, was addressed to me or even had my name in the subject line. I can receive up to 100 emails a day in my personal email box so it can be pretty easy for me to miss a few. However, when I see my name, I automatically give that message my attention. This doesn’t mean that I opened every email that was sent to me, but I did open my fair share. By using my name in the subject line and with in the message, the campaign was creating a rapport with me as a supporter where I felt familiar with them and could trust them. This is a simple tactic that can be used by organizations when sending out emails.

Timing is everything. Also when it came to emails, I would receive emails in real time. Before a debate I would get a – this is what I hope to accomplish in this debate – email. When a debate wa

s finished, I would receive a recap email from the campaign. These emails would come at exactly the right time. By sending things out at specific times, I felt that the emails I was receiving were more like a conversation than the traditional form email. Agencies can do the same thing around special events or during political seasons where votes might impact the success of the mission.

Mix it up. One last note about email. I received emails not only from the campaign, but from the candidate himself and other important campaign officials and supporters. Each email was written in a personal manner that read like a conversation opposed to a formal memorandum. By doing this, I felt like I was part of the campaign community and felt more invested in the outcome of the election. Remember that you can do the same thing within your organization. While you may have one person in charge of sending emails out, that doesn’t mean they have to all be written by the same person. Having a CEO send an email to supporters might be beneficial at specific times of the year. Also, think about having a volunteer write a short “this is why I volunteer” blurb that can be sent out to supporters. Additionally, you can have a donor do the same thing. By mixing up the authors of emails, it keeps email subscribers interested in what is being sent out by your organization.

Photos
We’ve talked about the importance of photos in social media before, but during elections season I really noticed how powerful they can be. Besides being more visually stimulating, photos can tell a story more powerfully than words at times. On election night, the Obama Campaign posted a photo of President Obama hugging The First Lady with the caption, “Four More Years”. This became the most “liked” and shared photo ever overnight. What was so special about this photo? It was relatable to so many people – it was a loving couple embracing. Taking photos that tell your story can help your agencies online presence grow.

Variety
One last lesson from election season – variety is the spice of social media life. Each candidate was on multiple social media networks and interacting with supporters on each one. While it can be hard to manage so many networks, making sure your message is being shared all over the web can only help your organization. Doing so will ensure it will be you who is controlling the message on that platform, instead of someone else.

Do you have any social media observations from this past Presidential Election? Have you used any of these methods successfully or unsuccessfully already? I’d love to talk about this further with you in the comments!

How do you deal with your inner “Non-Profit Possibility Girl”?

November 9, 2012 erik Board development, organizational development, volunteers

In a recent post (a very short but powerful post), John talked about “Possibility Girl” and the paralysis that comes with expectations, especially expectations that are very visible.

As I read John’s post, a number of non-profit questions formed in my mind:

I wonder how many non-profit boards (collectively) feel the same way as Possibility Girl?
I wonder how many board volunteers (individually) feel the same way as Possibility Girl?
I wonder how many non-profit executive directors feel the same way as Possibility Girl?
I wonder how many non-profit fundraising professionals feel the same way as Possibility Girl?
I wonder how many donors (individuals as well as organizations like foundations) feel the same way as Possibility Girl?

As you can see, John got inside my head this morning. LOL

Once I got past these questions, it became very clear to me that the bigger question that needs to be asked is:

“What can/should a non-profit executive director do with their board volunteers , staff and donors to help them get beyond this paralyzing ‘Possibility Girl effect’?”

I used to struggle with this question when I was an executive director (not that I had framed it in quite the same way prior to reading John’s blog post). With that disclaimer in mind, I will share with you a few things I think worked for me:

I liked to clearly set expectations well in advance. I used written volunteer job descriptions during the recruitment process, and I used a management by objectives system when it came to staff performance management plans. I really think clarity and transparency “right-size” expectations and put Possibility Girl in perspective.
I tried to celebrate and recognize big and small accomplishments. I really think celebration and recognition shrink the doubts that people have in their heads, and it provides proof that you aren’t “fake” or “bluffing your way through something“. Success breeds success and builds confidence.
I tried to integrate a sense of mission-focus into everything. I think this approach helps because it serves as a reminder that none of this was about me. It is about something bigger. This approach always allowed me to compartmentalize personal feelings, put them in their right place, and focus on the bigger things. It was a crutch that helped me and the groups of people I supported to “push past periodic feelings of inadequacy“.

Enough about me. What about you? How do you personally deal with you inner “Non-Profit Possibility Girl“? How have you helped your board, fundraising committee, and staff deal with her? I would love to hear a few tips from your corner of the non-profit world! We can all learn from each other and Fridays are great days to invest a minute or two in such an activity. Please use the comment box below to share.

Here’s to your health!

More non-profit lessons from 2012 election

November 8, 2012 erik Fundraising

I plead guilty when people charge me with being a political junkie, which is why I can’t get my focus away from various election tidbits this week. On Election Day 2012, I blogged about my polling place and a few “ah-ha moments” I had while standing in line waiting to vote. The day after the election, I couldn’t help but indulge in the post-game analysis including fascinating data about the political fundraising landscape. There are definitely some lessons to be learned from those numbers.

Here are a few interesting articles and websites that caught my attention:

“Infographic: How Both Presidential Candidates Grossly Outspent Their Predecessors” by Fast Company
“Obama outspent Romney in September” by The Washington Post
“The 2012 Money Race: Compare the Candidates” by The New York Times

Here are just a few interesting observations:

OMG, did you see how much money was raised on both sides of the political divide? I really think that non-profits need to stop saying that no one is donating because of the economy. Wow!
Was anyone else surprised by where the political contributions came from when broken out state-by-state? I was shocked to learn that my home state of Illinois appears to be second only to California.
There was an interesting contrast between the two candidates around the issue of “source of funds” with Obama’s largest source of funding coming from individuals donating $200 or less compared to Romney’s strength emanating from people donating $2,000 or more.

What does this all mean for you and non-profit fundraising? Here are just a few casual observations:

Individual giving is the key to raising serious money!

Even with the Supreme Court’s Citizens United ruling, both campaigns kept their focus on raising money from individuals because just like with charitable giving individual giving dwarfs everything else. By some accounts, companies only accounted for 11% of the money raised by Super Pacs in this political cycle.

Huh?

This isn’t much more significant than the 5% charitable giving number that companies contribute to non-profits every year.

Am I missing something?

Renewed debate over big guys vs little guys?

A few weeks ago a board member said to me, “Erik, all we need to do is find one Warren Buffet or Bill Gates to serve on the board and our financial issues will be a thing of the past.”

As I look at Romney’s fundraising numbers, I think: “Maybe that board member wasn’t totally off-base.” When I look at Obama’ fundraising numbers, I think: “Wow, a small gift strategy might just work.”

When I get beyond the numbers and start reading editorials and letters to the editor, I can’t tell you how many people openly questioned how much influence big donors might wield over their candidate if they make it to the White House. All of that coverage got me thinking about the influence that big donors have over the non-profits they support.

I think this is a great boardroom discussion that should get translated into your agency’s annual resource development plan.

Staffing matters!

There was a lot of talk about “The Ground Game” on election night, and it showed up in the spending numbers. Did you notice the payroll number for each campaign? Here is the score: Obama $91.7 million to Romney $44.2 million. This wasn’t administrative dollars because that was broken out separately. This was money spent on something referred to “boots on the ground“.

Non-profit boards talk until they are blue in the face about the merits of paying for more fundraising staff or ponying up more salary to attract better staff.

Staffing and organizing field work made a difference in this election. Attracting top talent is a constant concern at for-profit corporations, and non-profit boards would be well-served to take a second look at these ideas.

What lessons learned did you walk away from Election 2012 for your non-profit agency? Did you have any “ah-ha moments” while watching news coverage or reading a news story? Please use the comment box below to share your thoughts.

The role of your non-profit board?

November 7, 2012 erik Board development

Dani Robbins is the Founder & Principal Strategist at Non Profit Evolution located in Columbus, Ohio. I’ve invited my good friend and fellow non-profit consultant to the first Wednesday of each month about board development related topics. Dani also recently co-authored a book titled “Innovative Leadership Workbook for Nonprofit Executives” that you can find on Amazon.com.

Every time I speak on issues related to nonprofits, and I mean every single time, regardless of the topic, someone, usually a Board member or an Executive Director, asks “What is the role of the Board?” It has happened so often, and so consistently, that I don’t even wait for the question anymore, I just include the information. Then, of course, the question that follows or should follow is “What is the role of the Executive Director?”

The Board is responsible for governance, which includes:

mission, vision and strategic planning;
hiring, supporting and evaluating the executive director;
acting as the fiduciary responsible agent;
setting policy; and,
raising money.

Everything (Yes, I really mean everything) else is done in concert with the executive director or by the executive director.

What does that really mean?

It means the Board sets the direction, often with input from the executive director, and the executive director makes it happen, often with support from the Board.

It means the Board hires, supports, evaluates and (when necessary) fires the executive director. Likewise, the executive director hires, supports, evaluates and (when necessary) fires the staff. For Board members, that means that you work through the executive director if you have a problem or need something from the staff. For the executive director (even though they don’t need permission) having input from the Board before firing a staff member (especially one that is well known) will help build organizational cohesiveness and extend career longevity.

Fiduciary responsibility means that the Board (and not just the Treasurer but the whole Board) is responsible for safeguarding the community’s resources and ensuring accountability and transparency. The Board also must understand and formally approve finances, audits, and the 990. Fiduciary responsibility doesn’t end with finances; it also includes programs. Boards are entrusted to understand how and why an organization’s programs fill a need in the community, the numbers of people who participate in those programs and their impact, as well as how those programs connect to mission.

Setting policy is also the role of the Board. Policies are usually recommended, written and, later, implemented by the executive director, but they are voted upon and passed by the Board. Typical policies include personnel, code of ethics/conflict of interests, whistle blower, confidentiality, crisis management and/or communication. Your agency should, and does, also have by-laws (also called codes of regulations) which should be followed, periodically reviewed and if revised, voted upon by the Board.

The last piece of Board responsibility is fundraising. The executive director cannot raise money alone. The Development Director cannot raise money alone. The Board cannot raise money alone. Fundraising works best in a culture of philanthropy when both the staff and the Board are working together. The Board’s role is to set the fundraising goal, embark on the campaign, open doors, introduce staff, “make the ask” when appropriate, pick up the tab for lunch when possible, and thank the donor. The staff is responsible for training the Board, coordinating the assignments, preparing the askers with relevant donor information, drafting and supplying whatever written information will be left with the donor, including a letter asking for a specific dollar amount, attending the meetings as necessary and documenting the meeting in the database as well as writing the formal thank you note, and then creating a plan to steward the donor.

There is also a strategic and generative piece to Board service (or at least there should be). We have already reviewed strategic planning in previous posts, and I encourage you to now expand that to include strategic thinking. Is it not enough to have a strategic plan that made your Board members crazy and now sits on a shelf. Strategy is not a one day thing. Strategy requires direction setting, questioning and the committing of resources to ensure the destination is reached. It also requires the rejection of things that are outside the scope of our plan, or the revision of our plan. It necessitates having a culture that allows for and encourages questioning, and sometimes dissent. Board meetings should include robust discussions.

Finally, and least often, there is what Richard Chait describes as generative mode. Generative is a much deeper conversation about the underlying issues and how to impact them. Chait presents generative discussions as ones that “select and frame the problem.” He says “committees need to think not about decisions or reports as their work product, but to think of understanding, insight and illumination as their work products.”

Honestly, if Boards are just going to approve the things put in front of them, anyone can do that. We don’t need our community’s best and brightest to serve on our Boards for that. We do need our community’s best and brightest to lead, to govern and to be strategic about the needs of our communities and generative about the issues we face.

As always, I welcome your insight and experience.

Non-profit lessons on Election Day 2012

November 6, 2012 erik Uncategorized

I just love Election Day. There is a spirit in the air. People appear engaged. The precinct seems to run like a well-oiled machine. Systems are apparent and it feels like they work. For me, there is a feeling on connectivity to my fellow citizens as well as a historical connection to past generations. I just love Election Day!

As I stood in a variety of lines this morning, a number of different and random non-profit thoughts rattled through my brain. In an effort to be brief this morning, I’m just going to list those thoughts below so that you can run off to the polls and exercise your right to vote:

I believe the sense of engagement I feel on Election Day comes from people being able to express their opinion (aka vote). If non-profits want to replicate a similar sense of engagement, they should focus on asking clients, volunteers and donors their opinions (aka surveys, interviews, and focus groups).
I believe the sense of connectivity to something bigger comes from my knowledge of history (both news coverage and history textbooks). If non-profits want to replicate a similar sense of connectivity, they should focus on telling their story (including their journey line) and weaving it throughout their case for support.
The two men on today’s ballot who are running for President of the United States didn’t get there randomly. There was a severe vetting processes (aka Primary elections), and voters “kicked those tires” all in the name of determining whether or not they were worthy of being on the ballot. As so many non-profits look ahead to the beginning of 2013 and their annual meeting, they should remember the importance of “vetting” their board officers. Perhaps, this point is too strongly stated, but the bottom line is that we need to avoid asking “who wants to be a board officer” and put the effort into deliberately recruiting a slate for consideration (and recruiting people who have the time, ability and willingness to do the job rather than someone we can convince to hold the title).

Happy Election Day! If you already haven’t done so, please take a moment to go vote. It is one of the most fundamental rights we have as Americans. In fact, the office of “engaged citizen” (which we all hold whether we like it or not) is the most important unelected office in our great country. If you don’t do your job (e.g. cast an informed vote), then nothing works which perhaps partially explains why our governance systems haven’t worked very well in recent history.

As you most likely wait in a line today at the polling place, I encourage you to take a look around, observe what is unfolding around you and use those few precious moments of down time to apply what you’re seeing to your non-profit agency. You might just be surprised at what you conclude.

Here’s to your health! (And don’t stay up too late tonight watching Election night coverage) 😉