board of directors – Page 16 – The Healthy Non-Profit

Is your non-profit smarter than a fifth grader?

May 25, 2012 DonorDreams Board development, Fundraising, organizational development, technology

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.

Today, we’re focusing on a post that John titled “The School Bus Won’t Wait“. In that post, he talks about an aging professional who ends up relying on an internet acquaintance to help him with technology challenges. As things turn out, his online friend turns out to be 12-years-old. As always, John’s post has multiple themes and meanings, but the main things I saw pertained to: “Technology. Adapting to change. And possibility.”

These themes are at play throughout society, and they are changing the non-profit sector in ways that couldn’t be predicted. Here are just a few examples that I’ve seen, heard of, or read about:

ePhilanthropy. Donors continue to contribute more via online channels. According to the most recent Blackbaud Index of Online Giving report, “… online giving increased by 9.8 percent for the 3 months ending March 2012 as compared to the same period in 2011.” Believe it or not, this has been the trend for quite some time.
The digital boardroom. Board volunteers are busier at work and the rate of retirement is rising. Time is a premium and some volunteers don’t want to take time out of their day to travel to a physical meeting. Retirees (esp. in colder climates) are splitting their time between their primary residence and a winter residence. Add technology into the mix and now board members are “conference calling” and using “Skype” to conduct board meetings. Documents are being distributed digitally and board members are casting proxy votes via email.
The paperless office? Ha! While that appears to have been a 1980s pipe dream, the reality is that there are tons of electronic tools at a non-profit organization’s disposal now. Donor databases replaced index card donor systems, volunteer files, and membership paper systems. One agency who I am very familiar with is upgrading their network server to include a few terabytes of hard drive space because a few gigs just didn’t hold everything. LOL

With change comes challenges. Isn’t that what life is all about?

Here are two tips that I hope you will take to heart as you read John’s blog post and contemplate “Technology. Adapting to change. And possibility.”:

Education doesn’t end when you receive your certificate or degree. If you want to survive, I encourage you become a “Lifelong Learner”. There are tons of free resource available to you on the internet. Carve one hour out of your schedule every week and visit an online resource like Network for Good’s Learning Center. There are tons of great articles there for you to read. There is even a section of this website where you can access pre-recorded webinars.
Plan to stay current. Technology is always evolving. Do you have a written technology plan in place to keep your systems from getting old? If you need help answering this question, then look at the computer sitting on your desk. How old is it? If it is 3-years-old or older, then you probably don’t have a plan in place or you aren’t funding it appropriately.

How is technology changing your non-profit organization? Are you adding fifth graders to your board development prospect lists? 😉 Please scroll down and share one quick example in the comment box below.

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

Strike three . . . You’re OUT! Because you swung for the non-profit fences.

May 18, 2012 DonorDreams leadership, nonprofit, organizational development

Today, we’re focusing on a post that John titled “My Last At Bat“. In that post, he talks about his last Little League game as a child. As a baseball fan, I immediately fell in love with this blog post. As a fan of the non-profit sector and organizational development, my mind has been spinning for almost a week about how many different ways John’s post applies to non-profit agencies.

I don’t want to give anything away (you really need to go read his post for yourself), but the story is about how John approached his last Little League game with an understanding of what he was “good at doing” and tried to play within his capabilities. His friend took a very different approach and got very different results.

Looking back over the last 15 years, I’ve seen this dynamic play out in many different ways. Here are a few examples:

A non-profit board needs to fill an executive director vacancy. Rather than looking at competencies, skill sets and past experiences, the search committee gets WOWed by a charming big personality. Or they hire the internal candidate who has been a great front line program staffer, but doesn’t have any past experience with fundraising, board development, or financial management.
An executive director needs to hire a development director to provide thoughtful leadership and direction to the agency’s comprehensive resource development program. Rather than identifying what competencies, skill sets and past experiences are necessary for this person to excel and succeed, they interview a hodgepodge of fundraising people including direct mail professionals, grant writers, special event coordinators, and marketing people. Again, they end up hiring a special event person and ask them to do something that they don’t have a track record of doing.
The board development committee needs to recruit a new class of board volunteers. Rather than complete a gap analysis to determine what skill sets and experiences incoming board volunteers need in order to help move the agency forward, the committee puts together a list of “friends” who they know will likely say YES if asked. In the end, the wrong people are sitting around the table. They are all well-intentioned, but the boardroom feels dysfunctional and engagement is lacking.

Why do so many of us in the non-profit sector ask people to do things that are outside of their immediate capabilities?

I know that you can hit a single, but I need you to hit a home run today!

The silly thing is that stringing together a few singles puts a few runs on the scoreboard in the same way that hitting a home run will do. Translated into “non-profit speak” . . . asking people (employees and volunteers) to do what they do well will advance your cause as much or more than asking them to do something that they haven’t done before.

Here are just a few suggestions to get our conversation going:

Don’t ask a volunteer who hasn’t done any fundraising to join your board.
Don’t hire an executive director who hasn’t been an executive director before.
Don’t ask a volunteer solicitor to ask a donor for a significant contribution unless they’ve also given significantly.
Don’t hire a special event person to write grants unless they’ve been successful at doing it somewhere else.

I am sure that some of you are bristling at these suggestions and have good examples of when you might want to do one of these things. Please know that these suggestions are not meant to be “absolutes”. However, if you plan on asking someone to do something that they don’t have much experience doing, then you must adjust your expectations. You need to expect failure at first. You need to view it as a “project” and invest in training and professional development, accordingly.

Do you ask your employees and volunteers to “play within their abilities”? Or are you someone who is always encouraging them to hit home runs for your agency? How do you guarantee that you’re hiring and recruiting the right people for the right jobs? What would you add to the list I started a few paragraphs ago around Do’s and Don’ts? How have you managed your employees’ and volunteers’ disappointment when they fail to hit the home run that you asked them to hit?

If you haven’t done so yet, please go read John Greco’s post “My Last At Bat“. When you’re done, circle back to this post and share your comments, thoughts and answers to some of the questions I’ve posed using the comment box below. Let’s learn from each other.

Here’s to your health!

What won’t non-profits do to excite their board volunteers?

May 17, 2012 DonorDreams Board development, leadership, organizational development, Planning, volunteers

I ran across an awesome article while “Googling around” the other day. It was titled “Nine Keys for Reinvigorating Board Leadership,” and it was written by Paul Connolly, a Senior Vice President of TCC Group. While digesting this article, my mind first turned to those executive directors who I’ve seen in the last decade that actively try to disengage their board volunteers. After mentally traveling down that road (ugh … and it is an ugly road), I got more positive in my thinking and focused on all of the crazy things I’ve witnessed in the name of “board engagement”.

The following are just a few quick things I’ve seen over the years:

Of course, many organizations have turned to the good old fashion “mission moment” as part of their board meeting agenda.
How many “board retreats” have I seen organized all in the name of “engagement”? Ugh … too many!
One organization I worked with decided that social opportunities such as “Happy Hour” should be a part of their engagement solution.
I’ve heard some boards talk about putting together a mentoring program that hooks new board members up with tenured ones.
One organization I know even rented a trolley, loaded up its board volunteers and donors, and drove it from site-to-site as part of a facilities tour strategy focused on getting key stakeholders re-engaged in mission.
Oh yeah. You can’t forget about the “big conference” strategy where the executive director takes a board member (or a few) to one of those big inspirational conferences. When everyone returns, those board members are asked to “make a presentation” back to their fellow board members about what they learned. Hopefully, sparks of excitement ignite interest and activity.

Oh, the things I’ve seen. I could go on and on and on. I doubt that there isn’t anything an executive director, who actually wants an engaged board, would do to achieve this goal. Of course, when this topic of conversation usually comes up, there is an overwhelming desire to bypass “strategy” and go right to “tactics”

When I read the article by Paul Connolly, I had a moment of clarity because he didn’t go right to tactics. He focused on the following nine strategies:

Encourage board members to tell each other what motivates them to serve.
Educate board members about the organization and their responsibilities.
Hold the board accountable for its own performance and conduct a candid board assessment.
Compel the board to continually plan for the future and focus on results.
Infuse board meetings with more meaning.
Add some new board members and graduate some existing ones.
Nurture future leadership.
Develop a synergistic board-CEO partnership.
Consider alternative models for governance.

Ohhhhhhh! Ahhhhhhh! Has your curiosity been piqued? I know mine was. If you are intrigued and want to learn more about more deeply engaging your board volunteers, then I have two suggestions:

First, I strongly urge you to read Paul Connolly’s article “Nine Keys for Reinvigorating Board Leadership“.

Second, circle back here to DonorDreams blog and engage your fellow non-profit professionals in a discussion using the comment box found below. We can all learn from each other, especially if we share examples of what we’re doing and what has worked (or not worked) for us.

So, are you one of those executive directors who focuses on deepening board engagement? If so, why? If not, then why not? What things have you done or seen others do in the name of board engagement? Did Paul Connolly’s article trigger any ideas? If so, please share.

Here’s to your health!

Should Development Directors be allowed in the boardroom?

May 15, 2012 DonorDreams Board development, Fundraising, organizational development

A resource development colleague called me a few weeks ago. They were upset and pissed off after a recent board meeting, and they just wanted to vent their anger. As a good friend who was just asked to lend a shoulder to cry upon, I shut-up and listened. I didn’t offer any advice because it wasn’t asked for; however, the situation that was shared with me has been burning on my mind for weeks. It is such a serious issue that I thought I’d share it here and open it up for discussion.

In a nutshell, here are the facts that color this story:

The development director is a fixture in the boardroom and gives a “development report” at every meeting.
After delivering their report, a board member asked a question about what the development department might look like in the future.
While the development director had talked with the executive director about this issue in passing on a few occasions, neither of them had formally engaged on this subject in a meaningful way.
The answer caught the executive director off guard a little bit, and they jumped into the conversation with a “sharp tongue”. This response felt demeaning to the development director, and they felt “put in their place” in front of the board of directors.
In the days following the board meeting, the development director was verbally reprimanded and given what HR people would describe as a “verbal warning”.

I am very sympathetic to my resource development friend. It feels like the response was harsh; however, as a former executive director, I hated surprises in the boardroom, and I was a bit sensitive to how my employees interacted and engaged with board members.

All of this aside, I wonder what is the appropriate role for resource development professionals inside the boardroom. Is there one? Should the boardroom just be a place for an agency’s chief executive officer and the board of directors?

I am sure there are a number of you ready to share your thoughts about how important it is for fundraising professionals to have access to board volunteers and how strong relationships with volunteers are the key to a strong resource development program.

While I will be the first to agree with you, I keep wondering why does that need to occur in the boardroom?

Don’t resource development directors “have access” at resource development committee meetings? Special event planning meetings? Over a cup of coffee or lunch?

Isn’t the boardroom a sacred place where board members and their sole employee — the executive director — get to have frank conversations about the agency and its strategic direction?

There are so many other tangent conversations I could bring into this blog post such as:

What role should an executive director play in the agency’s resource development program when there are fundraising professionals on the payroll?
What should the communication protocol be for agency employees who report to the executive director and need access to board members?
Should development professionals guard against sharing their opinions with board members when the executive director hasn’t been fully brought into the conversation? If so, how? If not, why not?

However, I want to stop the conversation just short of those topics and just focus on the boardroom question. What staff are allowed in your agency’s boardroom? What function do they serve? What protocols are in place to ensure situations like the one I just shared with you don’t happen?

Here’s to your health!

Where are the philanthropists and non-profit board volunteers of tomorrow?

May 10, 2012 DonorDreams Fundraising, leadership

A few weeks ago I had the honor and privilege of having breakfast with one of my community’s iconic philanthropists. His family name is legendary around here. They have contributed lots of money to a number of different non-profit organizations, and those who don’t receive any support from this family pursue them like a dog looking for a lost bone.

During our breakfast meeting, he shared a concern that I’ve heard many non-profit people express over the last 12 years that I’ve worked and lived in this community:

Where are the philanthropists and non-profit board volunteers of tomorrow?

As has been the case in most communities for as long as anyone can remember, there is a small circle of very influential people who own businesses, employ lots of people, possess a fair amount of wealth, sit on non-profit boards, and influence policymakers and opinion-shapers.

This small group of very influential people is getting older and their numbers are dwindling. While the circle always seemed to replenish itself in the past, there is this feeling that we now live in different times. Many of the non-profit people in my community with whom I speak are concerned that the next generation isn’t apparent or obvious. I even see some agencies starting to recruit the next generation from the current of circle of philanthropists because they’re not sure what the future looks like and this is as good of a strategy as anyone can think of.

My breakfast partner weighed in with his opinion, and I found myself enlightened and frightened all at the same time.

He believes that globalization of our economy is at the root of this trend.

The old economic paradigm produced locally owned business people who amassed wealth and influence. They lived locally. They employed their neighbors and friends. They were able to see firsthand and comprehend the idea of “community need,” and it was in their personal and business interests to invest back into the community.

The new economic paradigm aggregates business in the hands of large multinational corporations that play on a global stage. As a result, our community gets “big box stores” rather than locally owned and controlled businesses. The decision-makers for these very large companies don’t live here. In fact, many of these corporations are located in large markets like Chicago, New York and Los Angeles. Or even more challenging, they are located overseas and their idea of “philanthropy” can be a little different from ours for cultural reasons.

In the opinion of my breakfast partner, the effect of globalization on the non-profit sector is and will be devastating!

He believes that for communities that are not major cities, the days of a small inner circle of influential philanthropists may be over.

When there isn’t a small group of wealthy business owners who live locally and are motivated by personal and business interests to participate in philanthropic activities, then he hypothesized that charitable giving will get tighter and non-profit mergers aren’t far down the road.

Finally, he believes this trend is most devastating inside of the non-profit board room. He sees many well-intentioned volunteers agreeing to do their part and serve on non-profit boards, but he sees these individuals lacking the financial resources, social networks and business acumen necessary to fuel an effective non-profit sector.

In the final analysis, he thinks the non-profit sector in smaller communities will be radically restructured in the next decade as a result of economic globalization trends.

I think that I agree. It is very possible that this economic trend will be what fuels non-profit mergers and acquisitions. It will also likely re-shape board development and resource development best practices.

As breakfast came to an end and we said our goodbyes, I was left with one thought that is more than two millennia ago by the Greek philosopher Heraclitus of Ephesus:

“The only constant is change.”

My conclusion? We can sit around our non-profit boardroom tables and lament change. Or we can recognize the challenges and adjust to the headwinds.

I say . . . Upward and onward! I have faith that the non-profit sector can and will adapt and evolve. We always have and I suspect we always will; however, let’s not drag our feet and let’s a move on it because “change” is coming fast.

So, I’m curious about what you think about this one philanthropist’s opinion about the effects of globalization? Are you having the same conversations in your community? What do you see other non-profits doing to adjust to what they perceive as winds of change? What are you doing? Please scroll down and share your thoughts in the comment box. We can all learn from each other.

Here’s to your health!

FREE fundraising movies every Monday morning? Sign me up!

May 9, 2012 DonorDreams Board development, Fundraising

“Going viral” . . . It is something that every non-profit organization wishes and hopes that their ePhilanthropy efforts will do. For those of you still trying to find your “cyber-sea-legs,” let me give you a quick little example:

Johanna Wicklund is the Director of Program Development & Evaluation at Boys & Girls Club of Green Bay. She sees this awesome thing on the internet advertising free movie clips every Monday focused on fundraising and non-profit best practices. She signs up and forwards the information to her fundraising BFF who is Anne Lemke, the Grants Coordinator at Boys & Girls Club of Oshkosh. Anne looks it over, signs up and forwards it to one of her favorite non-profit bloggers . . . which is ME, of course. I look it over and get excited. I sign-up for the free “Monday Movies for Development Directors” program and decide to blog about it.

Ta-da! This is what is meant by “going viral” with an idea, product or fundraising campaign. It feels very similar to a snowball rolling downhill, gaining speed and size.

Let me backtrack and talk a little bit about “Monday Movies for Development Directors“. This is a free service provided by Chris Davenport over at 501 Videos. Click the link I just provided, scroll down to the bottom of their landing page, give them your contact information, and every Monday they will send you a short clip of a fundraising interview focused on any number of resource development topics including (but not limited to):

finding donors
special events
social media
major gifts

The list literally goes on and on.

As Ron Popeil used to say, “BUT WAIT! THERE’S MORE!”

The free clips you receive on Mondays are what people in the industry call “teasers”. You get some valuable information, but you are left wanting more because what you just tasted was so darn yummy! Of course, there is always more to consume, but it isn’t free anymore . . . you can have to pay a small price for it. In this instance, 501 Videos seems to be selling a number of different products including:

Movie Mondays Pro (online access to more detailed videos related to your Monday movie clips)
DVDs including “Top 10 Best Movies for Helping Board Members”
Movie making services to produce a marketing video focused on your non-profit and its services

Please don’t misinterpret the Ron Popeil reference. I am not being snarky or critical of Chris Davenport or 501 Services. “Sampling” is a common practice (heck, it is a best practice) when it comes to marketing. Chris’ heart even seems to be in the right place if you read about his story on his webpage.

Yes, I’ve signed up for Chris’ “Monday Movies for Development Directors”. So far, I like what I see . . . I might even purchase a few DVDs if I continue liking what washes into my inbox every Monday.

If you want to see a little sneak preview, click here and you’ll see a short clip titled “Strengthening Donor Relationships with Questions”. It really is quite good.

I’d like to thank both Johanna and Anne for directing this viral snowball in my direction. If you like what you see and want others to catch what you’ve caught, then post this blog to your Facebook, Twitter, LinkedIn, or Pinterest accounts. In addition to Chris getting some business out of it, perhaps I can get a few more people to subscribe to my blog. 😉

Does your non-profit access other FREE fundraising resources? If so, please use the comment box below and share that information with your fellow fundraising and non-profit professionals. Come on . . . pay it forwards! You’ll feel after sharing, which is what philanthropy is all about.

Here’s to your health! ACHOO . . . I think I’m catching a virus!?!? (Yes, this last link is to a funny YouTube video about sneezing. Enjoy!)

Resources non-profit agencies can use for sharing information with groups

April 23, 2012 DonorDreams Mondays with Marissa, technology

As a non-profit organization, you have a lot of information to share about your mission, events, financial reports, donations, volunteers, etc. Not only do you have a large volume of information to share, but you have to share it with a variety of different stakeholder groups. Luckily, the internet gives you a plethora of resources, even though sometimes it can seem a bit overwhelming. Today, we’re going to investigate a few options you have when it comes to sharing information with a group of people (some are even FREE).

Create you own website. Seems straightforward, right? Well, in theory it is. But it can be difficult if you do not have a background in website creation or cannot dedicate the time it takes to update the site. If you don’t have your own independent website now or are looking to revamp your site, then I suggest checking out wordpress.org. WordPress is a free Content Management System that allows users to create dynamic sites on their servers. It is fairly user-friendly for those of you who might be a little apprehensive about diving in.

Facebook Groups. Regardless of whether or not you’re operating a website for your agency, chances are that you are familiar with Facebook. If your organization doesn’t have a page, then I suggest you create one because it is an easy way to promote your mission. Facebook also allows users to create “groups” (which is different from your agency’s “page”). You can create separate groups (even with restricted access) for board members, volunteers, and donors. This will enable you to share information that might only be appropriate or applicable to that specific group. One thing to keep in mind is that Facebook is known for having a few privacy concerns and people might not be comfortable with combining their personal and professional lives on Facebook.

Email Lists. Sometimes simple is best. These days everyone is familiar with email and use it to receive information on a daily basis. Your agency probably already has a large email list, but is it being maintained? Are email addresses cleaned out if they are no longer active? If you are looking for a newsletter manager check out MailChimp or Webber. Both are effective applications that can help you manage your email subscription lists.

AllPlayers.com. What is so cool about AllPlayers.com that I’ve given them their own section in today’s blog post? Well, AllPlayers.com allows users to create a website focused on sharing information with groups of people in a simple manner, and it is all FREE. Don’t let the name AllPlayers fool you into thinking this is a service for sports teams only. There are plenty of resources on this site for non-profits to use. By using AllPlayers.com to create a site for your organization, you can update your volunteer calendar, accept donations, post announcements, and more.

Another thing I like about AllPlayers is that they allow everyone involved in the organization to register for your website. This makes keeping records up-to-date easy and simple. As a COPPA compliant organization, AllPlayers takes privacy seriously, and all of the data uploaded to AllPlayers.com can be exported.

Finally, I think the most valuable feature of AllPlayers.com is the support that you receive. You don’t need to be a “techie” to set up your site because the whole site is based on drag-and-drop technology, which makes it very easy for users to configure. This can save your agency money that otherwise would be spent on IT costs. Furthermore, AllPlayers offers free training and is even willing to set-up your site (for a small fee, of course). Your AllPlayers site can be a separate entity from your organization’s website, or it can become your stand alone website. Here are some examples of how some Boys & Girls Clubs are using AllPlayers:

Boys & Girls Clubs of Garden Grove

Boys & Girls Clubs of Middlesex County

Boys & Girls Clubs of Arlington

Boys & Girls Clubs of Oxnard & Port Huneme

AllPlayers has also put together a brief presentation on how Boys & Girls Clubs can use AllPlayers.com. I invite all of you to take a look and see how you might be able to use this service. You can download the file by clicking here.

These are just a few options you have when it comes to sharing information with people already involved with your organization, but I’m sure they aren’t the only ones. What systems are you currently using? What do you like about it? What challenges do you face when it comes to sharing information? Let’s talk about it in the comment section. Please scroll down and post your thoughts!

Who should be “driving the bus” at your non-profit agency?

April 19, 2012 DonorDreams Board development, leadership, organizational development, Planning

In my travels, I’ve seen hundreds of non-profit organizations, and I must admit that they come in all sorts of different sizes and shapes . . . Big ones, little ones, short ones, tall ones, skinny ones, fat ones . . . you get the picture.

However, one question has haunted me for as long as I’ve worked in the non-profit sector and it is the title of this morning’s blog post:

“Who is responsible for driving the bus?”

Yes, I’ve heard all of the “best practices” and expert advice. I’ve sat through too many training events. Heck . . . I’ve even been the trainer for a number of those training events and sounded very much like the expert on this subject.

However, this question still haunts me because I see everyone answering it differently.

For example, staff are obviously responsible for day-to-day operations, but who gets to decide:

Which programs get run?
What impact and program outcomes get measured?
What new BIG grants (that might require new programming and new things to be measured) should be written?

I suspect that many of you have answers for these questions. I also suspect that there are many different answers. Some of you might see this as a question of “micro-management” and others of you might see “policy implications” all over the place.

Many moons ago, when I worked at my local Boys & Girls Club, I was presented with an opportunity to apply for a very large state grant. Many of you have probably heard of 21st Century Community Learning Center grants (this opportunity is part of the federal No Child Left Behind legislation). When I was presented with this opportunity, these were some of the facts I was facing:

The grant (if received) would increase the agency’s budget by more than 25 percent,
We would need to open a new site by asking a local school to share some of their space with us after-school (aka new collaboration with memorandum of understanding spelling out responsibilities of all parties)
The grant would result in hiring more staff (e.g. increasing overall staff size by 25 to 50 percent) and serving more kids (expanding membership by approximately 25 percent)
The type of staff we were accustom to hiring would change because the school district obvious wanted us to hire their teachers (and pay them the after-school stipend rate negotiated in the collective bargaining agreement)
The grant would require some different programming and outcome measurements.
The grant also required that some serious thought be put into “sustainability planning”. How would we continue serving those kids after the five-year grant expired. How would we fund it? Where would we provide service?

I was in favor of applying for this grant. It was a game changer for the organization. However . . . how much authority did I have as the executive director to make this decision. Sure, at first blush, the question was simple . . . “Apply for this one grant? Or don’t apply?” . . . but one question leads to another and then another.

So, what parts of this decision belong to the board of directors and what parts belong to staff? AND what parts needed to be shared between board and staff? AND what happens if there wasn’t agreement?

In the end, I engaged the Program Committee and came to the table with my “case for change”. We talked about it, agreed on all fronts and made the recommendation to the board of directors. The grant was written. We were selected to receive funds. We signed the contract with the state board of education. And the rest, as they say, is history.

That was easy . . . Right? NOPE! Because I see everyone making similar decisions in very different ways. Why? Because it isn’t easy and every non-profit organization has a different culture with different levels of organization capacity.

Is there a RIGHT answer to this question? I think so.

I believe there are A LOT of policy questions wrapped up in aforementioned example, and all policy issues clearly belong to the board of directors. Additionally, I see grants the same way I see “contracts,” and every non-profit bylaws document that I’ve ever looked at has clearly stated that entering into a contract is the responsibility of the board.

So, why do I see so many non-profit and fundraising professionals working alone on identifying grant writing opportunities, writing the grant proposals and committing the agency to the terms of the grant agreement (or asking their board after-the-fact to rubber stamp the grant agreement)?

Why do staff let this happen? Is it because we really don’t want the headache of having to build consensus? Or is it because of time constraints? Why do boards let this happen? Is it because they don’t know what the right answer is and in the end would rely on staff to inform their opinion? Or is it that they don’t understand their roles & responsibilities as board members? Or is it simply lack of time? And regardless of how you answer these questions, does it really change the fact that there is a “right answer” to the big picture question and our responses to these smaller questions really just amount to nothing more than rationalization and justification for doing something we know is wrong?

Today’s post really does raise some serious governance issues that most non-profits of all sizes and shapes struggle with on a daily basis. Please scroll down and use the comment box to share your thoughts as well as examples of how your agency has dealt with this issue. We can all learn from each other.

Here’s to your health!

Donors and board members also cast long shadows

April 6, 2012 DonorDreams Fundraising

Today we’re focusing on a post that John titled “Dr. Pepper’s Shadow“. In this post, he uses the example of how a CEO’s off-handed cafeteria comment resulted in an inadvertent major change in what was being offered in the beverage cooler. As John masterfully explains, leaders need to be mindful that they are leaders who are always under the microscope just like the E.F. Hutton television commercials from the 1970s. (By the way, if you’re too young to understand the E.F. Hutton reference, click here for a YouTube reminder)

This happens ALL THE TIME in the non-profit sector. In fact, it is considered by some to be a best practice.

For example, when a donor off-handedly mentions that they value “education” because they were the first member of their family to go to college, many non-profit people are trained to recognize that as GOLD!!! The comment might get captured on a contact report and entered into the donor database. The mail solicitations start echoing messages about effective educational programming. The stewardship discussions with this donor start revolving around the agency’s educational programming. The major gifts proposals focus on supporting educational programs to support the organization’s mission.

Non-profit fundraising professionals are trained to be like the people who appear in the background of that E. F. Hutton television commercial. Of course, there are consequences to this behavior as John points out in his Dr. Pepper’s Shadow blog post.

After all, isn’t it possible that in the fictitious example I just provided that the donor might “value” education but has fallen in love with your agency for a completely different reason? If so, then overreacting to the revelation that the donor values education might produce a chilling effect on the philanthropic relationship.

The solution is simple. Stop overreacting to isolated data points. Continue capturing whatever you can using contact reports. Continue collecting this interest-based information in your donor database. However, double down on stewardship activities and use this kind of data to drill deeper and develop stronger relationships with your donors.

For example, I can envision an in-person stewardship visit over a cup of coffee where the fundraising volunteer says to the donor, “I’ve heard you say that you cherish educational institutions and the idea of life-long learning, what do you think about some of the educational programs our organization offers clients?”

I can also see a fundraising volunteer in a pre-proposal cultivation meeting saying, “We would like to prepare a major gifts proposal for your consideration. I’ve heard you talk about your passion for education. Would you prefer we focus the proposal on educational programming opportunities or is there something else you’d be interested in hearing more about?”

I think John’s Dr. Pepper phenomenon is a real thing especially in non-profit fundraising circles. What are your thoughts?

In fact, I’ve also seen Dr. Pepper’s Shadow appear in the board room with something as simple as lunch. All it takes is one board member off-handedly saying that they wished there was a tuna sandwich option, and staff scurry around before the next board meeting dealing with menu changes. The consequence might seem inconsequential, but there literally can be a few hours wasted engaging people in tuna conversation. Don’t believe me? I’ve seen it happen!

Have you seen John Greco’s Dr. Pepper phenomenon in action at your agency or someplace else? What were the consequences of it? What do you do to guard against overreacting to comments from donors and board members that were only meant to be off-handed? Please scroll down and share your thoughts in the comment box.

Here’s to your health!

Should “We the People” be allowed to place failing non-profit agencies into financial receivership?

April 3, 2012 DonorDreams leadership

After dropping my partner off at O’Hare airport this morning, I drove back home listening to NPR’s “Morning Edition” when a story about the State of Michigan came on the radio. In a nutshell, Michigan has a law on the books that allows the state to “takeover” local municipalities who are failing and drowning in a sea of debt. This law gives the Governor the authority to appoint an “emergency manager” whose authority supersedes all elected officials in that community including the duly elected mayor and city council members. Of course, all of this is in the news because the City of Detroit is potentially the next target for takeover.

Many of you are probably wondering by now: “What does any of this have to do with non-profit organizations, donors, boards of directors and fundraising, which is what I typically write about every day?”

While listening to the pros and cons of this controversial law, I found my mind wandering back to non-profits and wondering “How would I feel about this if the story was about a failing non-profit agency instead of a failing local municipality?”

I think this is an interesting question. I even nibbled around the edges of this topic when I posted a blog titled: “Can a non-profit board contract out its management to a for-profit company?” back in September 2011.

Consider the following:

There are times when non-profit boards are ill-equipped to deal with financial crisis and end up making poor decisions in the board room that dig them deeper into debt.
Sometimes non-profit agencies hire executive directors who don’t possess the necessary skill sets to navigate the organization through such a financial crisis.
Non-profit organizations exist to provide services to people much like municipalities exist to provide services to citizens. So, a failure of the agency (as with the failure of a local government) impacts hundreds or thousands of people. Why should a failure of leadership on a few people’s part impact so many other innocent people who desperately rely upon the services provided (regardless of whether it is after-school programming or police/fire protection)?

I suspect that I have some people’s attention now. 😉 And some of you are now asking: “How could this Michigan law be adapted to a non-profit setting?” Well, what if the state passed a law that said any non-profit agency that runs a budget deficit for three years in a row must enter into a financial receivership arrangement with a third-party entity whose charge would be twofold: 1) restore liquidity and 2) minimize loss of services to clients.

Crazy idea? I am not sure. This is what the State of Michigan is doing with its failing municipalities. Why is this a good approach in Michigan and not a good approach for the non-profit sector?

Yes, I am being a bit of a “pot stirrer” today. But seriously . . . I think this is a topic worth talking about. Don’t you? After all, there are too many non-profit organizations who are on the verge of insolvency today, which means there are millions of American who rely on those services that could be adversely affected.

In the end, I suspect this boils down to a question about “freedom”. Right?

Do individuals have the right to fail in America even when that failure can adversely affect countless others? Or are we all our brother’s keeper and does it take a village to raise a child?

Hmmmmm . . . I hate it when NPR challenges my core beliefs like that. LOL Because before that story ran about Detroit, I would’ve told you that I didn’t think a Governor should be allowed to “takeover” a local municipality and override the will of the people when it comes to electing their neighbors to manage their community’s affairs.

After looking at multiple sides of the issue and applying it to other examples, I now think this issue is bigger and more complex than I originally thought.

What are your thoughts about whether or not failing non-profit organizations should be forced into financial receivership? Does your agency have the “right to fail” and end up affecting countless others who rely on you for service?

Please scroll down and use the comment box to weigh-in with your opinion.

Here’s to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

eanderson847@gmail.com

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