New Years resolutions for me and your non-profit agency

new yearGood morning everyone! Yesterday was New Years Day and I spent the first day of 2014 in a car trying to make it half way back to the Dallas-Fort Worth metroplex. As many of you know, I am still working on a contract temporarily providing technical assistance and organizational services to 20 organizations in New Mexico and West Texas.
During the first leg of my drive yesterday, I spent lots of time thinking about New Years resolutions, which is the focus of today’s post.
To resolve or not to resolve?
resolutionsLet me first address the question of whether or not resolutions are meaningful.
There is lots and lots of talk about whether or not New Years resolutions are helpful or just a waste of time. The way I look at it, resolutions are akin to goal setting. And an  individual or organization without goals is rudderless. Right? So, where is the harm in setting a few realistic resolutions.
While driving yesterday, I came up with a few goals for improvement that I’d like to tackle in 2014. Of course, there is my annual re-commitment to health and weight loss, but I’m not going down that path with you today.
There are two other resolutions that I am very excited about and thought you might want to consider adopting for your agency.
Technology
techWhen I opened my non-profit consulting practice 2.5 years ago — The Healthy Non-Profit LLC — I did so on the cheap. I used $15,000 of savings to get everything off the ground including: branding, marketing materials, website, home office set-up, and technology.
Needless to say, I ended up making some tough decisions around technology. Case in point, I’m typing this mornings blog on a small Netbook laptop-ish looking computer that operates with an Itel Atom processor (which I think is akin to having a gerbil power the engine of my car).
One of my 2014 New Years resolutions is to invest in technology in a way where I will straddle a 3-way fence.
What I mean is that I will combine the power of the technology world’s three biggest players:

  • Google
  • Microsoft
  • Apple

When I opened my business, I sold my soul to Google. I primarily did this because there was lots and lots of free stuff to be had.
I also didn’t have money to purchase Microsoft products and ended up using free productivity software like Apache OpenOffice, which is really good public domain free software that mimics Microsoft products.
However, the world is changing and technology is progressing along faster than ever. Microsoft is racing to the cloud and challenging Google for market share. Have you seen the new Microsoft Surface computers? What about Microsoft 365? These questions don’t even touch the issues associated with Google purchasing Motorola and getting into the smart phone business. Ugh!
My New Years resolution to move closer to the cutting edge of technology by purchasing a Surface tablet/laptop, subscribing to Microsoft 365, and integrating an iPad into my Google and Microsoft new world order is ambitious. But the timing feels right to me.
For your non-profit agency, I suggest you take a good hard look at technology. I suspect there there might be a New Years resolution waiting there for you.
I cannot tell you how many times I’ve walked into a client’s office and their technology is biting them in the butt.
Many non-profit organizations are “resource poor” by definition. In environments like these, technology is typically basic and under-maintained.
Since tech has a short shelf life, most non-profits live with severely outdated hardware, software, networks, and systems.
I can almost hear you moaning and yelling into your computer: “But we don’t have the money, Erik!
OK, OK, OK . . . 2014 doesn’t necessarily have to be about buying technology for your agency. Your resolution could be all about getting the right group of volunteers around the table to help you develop a written technology plan addressing issues such as:

  • How will your organization upgrade its tech over the next three years?
  • What should your agency’s tech policies look like?
  • What does your agency want to look like from a tech perspective (e.g. network, cloud, Apple, Google, Microsoft, desktop, laptop, tablet, phone, website, blog, ePhilanthropy, databases etc)? And how will all of this capacity be maintained?
  • What is the funding model to attain and maintain what you build?

Tackling this issue is the right thing to do.
Non-profit leaders need to break out of this “starvation cycle” in which they find themselves. It isn’t healthy to under-invest in organizational capacity building because you weaken yourself and plant the seeds of your your own demise.
Communication
enewsOne of the features on my company’s website offers viewers the opportunity to subscribe to a free monthly eNewsletter.
I must confess that I’ve been woeful at keeping this promise. Over the last two years, I’ve published just a handful of newsletters.
My other New Years resolution for 2014 is to do a better job of getting my eNewsletter situation figured out and in working order.
While zipping down the interstate yesterday, I started wondering if this might also be a good goal for your organization?
Too many of my clients seem to be in the same boat as I am when it comes to finding time to publish a newsletter.
However, the reality is that you are going to put yourself out of business if you don’t get this thing figured out. That’s right . . . you heard me correcting — “out of business“!!!
Donors need to hear three big things before they make another contribution to your organization:

  1. Thank you . . . we appreciate your investment
  2. We are using your contribution in the manner in which we told you we would
  3. Your donation is having an impact and making good things happen

Your newsletter or eNewsletter strategy is focused on communicating these three things. Your inability to find the time to communicate these things drives your donor turnover rate sky high, which in turn makes raising money arduous and expensive.
Tackling this issue is the right thing to do.
As I said earlier in this post, non-profit leaders need to break out of this “starvation cycle” in which they find themselves. It isn’t healthy to under-invest in organizational capacity building because you weaken yourself and plant the seeds of your your own demise.
What are your New Years resolutions for 2014? Please use the comment box below to share. Let’s inspire each other today.
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

2014 predictions for the non-profit sector

predictions3It happened again yesterday. A non-profit friend of mine called and we talked for an hour about their revenue model and fundraising issues. Questions included:

  • We need to start doing more with private sector fundraising. Everyone at our agency agrees on this point. It is in the new strategic plan. But after lots of talking no one wants to do anything. What should we do? How do we move forward?
  • We are very dependent on government funding. How should we start diversifying our revenue streams?
  • Our revenue strategies that worked well prior to 2008 no longer work very well. We want to course correct, but the people sitting around our boardroom table were recruited with an old revenue model in mind. Can we ask these people to help us make the necessary changes? Or do we need to change the people sitting around the table? How quickly can all of this be done?

Ever since the economy changed in 2008, non-profits have been wrestling with these kind of questions. What economists and politicians are calling “The New Normal” has non-profit leaders scratching their heads and wondering what to do about it.
I’ve seen some non-profits pivot nicely, and I’ve seen many more struggle. This trend will continue into 2014!
Based on this prediction, I think the following trends are also likely to follow:

  1. Non-profit boards and staff will continue re-examining and tweaking their revenue model. (Click here for more info on different types of non-profit revenue models)
  2. Non-profit boards will continue to struggle with who should be sitting around their boardroom tables as they attempt to change their revenue models.
  3. Non-profit staff will continue to struggle with developing and using volunteer engagement strategies and tools in an effort to move their agency FROM a pre-2008 revenue model TO a new 2014-and-beyond revamped fundraising plan.
  4. There will be renewed interested by non-profit boards and staff to engage the services of fundraising professionals who can provide technical assistance around these questions.
  5. The word “bankruptcy” will be used more and more by donors, stakeholders and the news media in 2014 to talk about non-profit organizations and municipalities (e.g. Detroit, etc) who weren’t successful in tweaking their revenue models.

Is your organization currently engaged in asking questions like the ones with which I started this post? Are there additional questions you’re asking in your boardroom? What do you think about these five predictions I’ve made? Am I full of bologna?
Please use the comment box below to share your thoughts and experiences.
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

Do the 'engagement equations' govern your non-profit?

Doing the Math; Not Necessary!

By John Greco
Originally published on March 9, 2012
Re-posted with permission from johnponders blog
math1“I regard it in fact as the great advantage of the mathematical technique that it allows us to describe, by means of algebraic equations, the general character of a pattern even where we are ignorant of the numerical values which will determine its particular manifestation.”
— Friedrich August von Hayek


Say what?  Algebraic equations?  Where might this be going?!?
Here goes:  we can equate certain actions, or conditions, or results — without applying numerical rigor — and yet produce a meaningful, insightful, valuable answer.

I’m going to attempt to do Friedrich proud…  While my finance, accounting, and engineering friends might cringe, I am going to pose a couple of equations that I think are incredibly meaningful in describing organizational life, yet they require no calculation whatsoever.  I call them my “engagement equations.”
First up:  Involvement = Commitment. 
The general idea here is that as we involve people in diagnosing and solving problems, their commitment to carrying out the resulting course of action grows stronger.  Hence, more involvement means increased commitment.
That’s the proactive application of the equation.  The reactive application might be when we see low commitment, we should suspect low involvement.  And the prescriptive:  if leaders want a more committed workforce, they should first seek to involve the workforce in diagnosing why there is low commitment!
Bottom line, we can equate commitment with involvement and be pretty confident it’s not a false equivalence.
I promised two, so next up:  Performance  = Freedom.
This one’s about the length of the leash.  It prompts us to consider that when an individual or team is performing well, we should allow them more space, more autonomy, more freedom.  We might get even more performance …
And, of course, there is the flip side:  when performance is slipping, more attention might be warranted.  Narrow the range, focus on the action.
math2(I feel compelled to counter a possible negative perception of this last point by noting that isn’t it a very good thing if a manager sees when an associate or team is struggling, and at the right time and in the right way enters the picture and provides just the right amount of help to get back on the right track?  Less freedom is not always a bad thing!)
Shifting our attention to the other side of the equal sign, freedom — autonomy — when earned by performing, can move performance to yet another level; and when there is no freedom, it might very well be thecause of the lagging performance, and not the effect.
Before I close, I can’t help but point out a bit of irony I see when looking at these two engagement equations together…  One says “come closer, get involved” whereas the other suggests “I should leave you alone; you’re good!”
And what about the synergy?  Involvement equals commitment can driveperformance, and performance equals freedom can enhance commitment!
So there you go, my “engagement equations” … which, honestly, factor into a lot of my work when seeking to improve organizational effectiveness.  And I thought I’d never apply that algebra class in real life…
math3I look forward to seeing the ones that you’ve run across!
Lastly, in closing, one more — a bonus! — a pretty well known non-mathematical equation, presented in song! from none other than Sir Paul McCartney and his Beatle buddies —
And, in the end, the love you take, is equal to the love you make.
john greco sig

Is your agency's executive director out of the office enough?

Raising Your Profile; Building Your Credibility

By Dani Robbins
Re-published with permission from nonprofit evolution blog
networking1I was running a Boys & Girls Club in Texas, when I was offered the Executive Director position for the Boys & Girls Clubs in Akron, Ohio. I knew the President of the Akron Community Foundation and not another soul in town. Thankfully, my Board had a plan.
One Board member, who isn’t the mayor of Akron but could have been because he knows everyone, started setting up lunch meetings. We went to lunch with every community leader in town and:

  • We told them of our struggles
  • We told them about our kids and what they needed to be successful
  • we told them our plan to ensure they were, indeed, successful – and that our Club was as well.

After 6 months, I, too, knew everyone in town.
What’s the lesson for your organization? There are actually a few:

  1. Who is on your Board and who do they know?
  2. Will they introduce you?
  3. Do you have a story?
  4. Can you tell it in a way that engages people?
  5. Who picks up the tab?

Now you might think it was silly of me to include the question of who pays for lunch on my list of lessons, but I cannot tell you the number of people who have asked. It matters. The question of what is a good use of agency resources is a blog for another day, but for today, it’s worth having the discussion and being clear about the answer before you ask Board members to set meetings.
Once you do, start having lunch, coffee and breakfast! Get to know people in your community and let them get to know you.
networking3Program officers of foundations are incredibly generous with their time and are interested in learning about your organization. Community leaders, by definition, care about the community. Go talk to them. You will be pleasantly surprised by the number of people who say yes to your request for a meeting.
Profile building can and is partially done over lunch, but it only starts at lunch. It doesn’t end there.
To build your profile, you also have to build your credibility and the credibility of your program. Obviously, it won’t be enough to talk about your program if your program isn’t providing excellent services. Impactful programming is critical. Benchmark similar organizations, find and implement best practices and monitor and communicate your impact.
Speak in the community. Most service groups have a speaker at every meeting. Recruit and train a “public speaking team” to present at service group meetings and in the community. It is a wonderful opportunity to get your message out there.
You should also blog about the issues that impact your clients, write op-ed pieces and meet with local politicians.
Is there a Leadership group in your city? Leadership Akron was an incredible experience for me. It contributed to my professional development and knowledge about the city in ways that I could not have replicated on my own. It also provided incredible resources for my organization. Now that I live in Columbus, I am a member of the Leadership Columbus Alumni group. Consider participating in your local group. Most leadership programs offer scholarships for nonprofit senior leaders and it is an incredible investment of your time and resources.
networking2Figure out the “must attend” event in town, and attend. And when you do, walk around and greet everyone, introduce yourself to people you haven’t been able to get in front of and ask if you can call them for a meeting. Again, you’ll be surprised at the number of people who say yes.
Finally, join groups that coalesce around the issues you care about. Most communities have nonprofit executive director groups, monthly or weekly educational forums, and leadership organizations. Find one and get involved. If there isn’t a group, start one.
We invited all the leaders of agencies that offered after school programming in Akron to a meeting. Akron had almost two dozen after school programs, yet there was no ongoing discussions about programming, best practices or service gaps. The discussion that started at that first meeting continued and our group later became the After School Council of Greater Akron.
You can do it! Profile raising, like everything else that is worth doing, takes time — lots of time. Spending the time will pay off in spades, for your organization, its mission and the community it serves!
Please let me know how it goes. As always, if you have other ideas for profile building, or suggestions for blog topics, please share. A rising tide raises all boats.dani sig

Scandal, crisis and abusing your non-profit brand

crisis2Sometimes I think the universe speaks to us, and lately it has been begging me to write this blog. Over the last few months, I’ve spoken with a good handful of non-profit professionals who have shared stories of scandal and crisis that would make your toes curl. These stories have ranged from incidents on the front line that made the local newspaper to outright embezzlement.
The tipping point for me was last week when I was visiting a client and prior to the start of our meeting a board volunteer brought up the name of William Aramony.
Now before I proceed let me say that a number of my United Way friends are rolling their eyes right now. I can almost hear them saying, “Come on, Erik. Give us a break. Do you have to tell that horrible story again? It is so 20th Century and stuff for the history books.
crisis3For the record, I agree with my United Way friends. If you don’t know about William Aramony, what you need to know for this blog post is:

  • He was an iconic CEO of United Way of America
  • He was accused of wrongdoing
  • It was a national news story for a long time
  • He ultimately resigned and served a little jail time

The details of the scandal aren’t important here. What is important is that this scandal occurred in 1990, which is more than 20 years ago. Heck, Bill Aramony died in 2011. But this story has legs as they say in the news industry.
The board volunteer who raised the specter of Bill Aramony last week did so almost as if that news story had just happened recently.
I am trying to make the following points:

  1. People have long memories
  2. Donors are often not very forgiving
  3. Scandals can do long term damage to your brand

Perhaps, I am a cynic on this subject, but I believe that all non-profit organizations are likely to experience scandal at least a few times in their organization’s life span. There is bound to be an incident where accusations are made and lawsuits are filed. When you deal with employees, there is likely going to be a messy HR issue from time to time.
I think Abraham Lincoln put it best when he said:

“You can please some of the people some of the time all of the people some of the time some of the people all of the time but you can never please all of the people all of the time.”

So, what should a non-profit do to prepare itself?

  1. You should have written policies designed to minimize your liability and exposure.
  2. You should have plans designed to help guide your agency through crisis (e.g. crisis communications plan).
  3. You should review yours plans and policies every year.
  4. You should be sitting down with your top donors every year just to touch base and see what they’re thinking.

Plans & Policies
crisis1You can probably spend the rest of your life writing policies, but let’s not get carried away. Here are a few questions I suggest you ask as you start going down this road:

  • Do you have a criminal background check policy when it comes to your employees, volunteers and board members?
  • Do you have policies pertaining to the safety and security of your clients?
  • Do you have policies that address the subject of injuries?
  • Does your organization utilize technology? If so, do you have policies addressing the use of technology?
  • Do you have an employee handbook or employment policies?
  • Do you have a written crisis management plan? If so, do you review it often with staff and clients? (e.g. fire drills, etc)
  • Do you have a crisis communications plan?
  • Do you have appropriate insurance coverage? How do you know? How often do you review it?

I suspect you have some of this in place and the rest is on a to-do-list somewhere.
This is not work for your board to tackle. It is committee work. If you don’t believe in standing committees of the board, then it is task force work.
But the bottom line is that it is WORK. Work to develop them. Work to regularly review them. Work to monitor them and assure compliance.
Let’s roll up our sleeves and get to work because it only takes one good crisis or scandal to do series damage to your non-profit brand.
If you don’t believe me, go ask your local United Way executive director to tell you about William Aramony. Just be prepared to get an earful.  😉
Has your organization (or another one in your community) ever had to dig out of a big hole created by crisis or scandal? If so, how long did it take? What did you do to reset the playing field? Please share your thoughts in the comment box below.
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

Does your non-profit board sometimes do the opposite of what it wants to do?

Jerry’s Trip to Abilene

By John Greco
Originally published on March 15, 2012
Re-posted with permission from johnponders blog
abileneThat July afternoon in Coleman, Texas was particularly hot — 104 degrees according to the Walgreen’s Rexall’s thermometer.  In addition, the wind was blowing fine-grained Texas topsoil through the house.  But the afternoon was still tolerable; even potentially enjoyable.  A fan was stirring the air on the back porch; there was cold lemonade; and finally, there was entertainment.  Dominoes.  Perfect for the conditions.  The game requires little more physical exertion than an occasional mumbled comment, “Shuffle ‘em,” and an unhurried movement of the arm to place the tiles in their appropriate positions on the table.   All in all, it had the makings of an agreeable Sunday afternoon in Coleman.  That is, until my father-in-law suddenly said, “Let’s get in the car and go to Abilene and have dinner at the cafeteria.”
I thought, “What, go to Abilene?  Fifty-three miles?  In this dust storm and heat?  And in an unconditioned 1958 Buick?”
But my wife chimed in with, “Sounds like a great idea.  I’d like to go.  How about you Jerry?”  Since my own preferences were out of step with the rest, I replied, “Sounds good to me,” and added, “I just hope your mother wants to go.”
“Of course I want to go,” said my mother-in-law.  “I haven’t been to Abilene in a long time.”
So into the car and off to Abilene we went.  My predictions were fulfilled.  The heat was brutal.  Perspiration had cemented a fine layer of dust to our skin by the time we arrived.  The cafeteria’s food could serve as a first-rate prop in an antacid commercial.
Some four hours and 106 miles later, we returned to Coleman, hot and exhausted.  We silently sat in front of the fan for a long time.  Then, to be sociable and to break the silence, I dishonestly said, “It was a great trip, wasn’t it?”
No one spoke.
Finally, my mother-in-law said, with some irritation, “Well, to tell you the truth, I really didn’t enjoy it much and would rather have stayed here.  I just went along because the three of you were so enthusiastic about going.  I wouldn’t have gone if you all hadn’t pressured me into it.”
I couldn’t believe it.  “What do you mean ‘you’all?”  I said.  Don’t put me in the ‘you’all’ group.  I was delighted to be doing what we were doing.  I didn’t want to go.  I only went to satisfy the rest of you.  You’re the culprits.”
My wife looked shocked.  “Don’t call me a culprit.  You and Daddy and Mama were the ones who wanted to go.   I just went along to keep you happy.  I would have had to be crazy to go out in heat like that.”
Her father entered the conversation with one word: “Shee-it.”  He then expanded on what was already clear:  “Listen, I never wanted to go to Abilene.  I just thought you might be bored.  You visit so seldom I just wanted to be sure you enjoyed it.  I would have preferred to play another game of dominoes and eat the leftovers in the icebox.”
After the outburst of incrimination, we all sat back in silence.  Here we were, four reasonably sensible people who — of our own volition — had just taken a 106-mile trip across a godforsaken desert in furnace-like heat and a dust storm to eat unpalatable food at a hole-in-the-wall cafeteria in Abilene, when none of us had really wanted to go.  To be concise, we’d done just the opposite of what we wanted to do.  The whole situation simply didn’t make sense.

— Jerry Harvey,  The Abilene Paradox and Other Meditations on Management.


abilene2My first exposure to this story was as I was unknowingly about to experience it…
Three colleagues and I were all out-of-towners in Memphis for business.  After a stressful day at work we had just had a nice dinner.  While leaving the restaurant Don suggested “You guys want to continue our discussion while we drive around Memphis a bit?  Jude responded with a lukewarm “okay;” I said I’m up for it, even though I was tired and wanted some down time.  Then mild-mannered, soft-spoken Laura chimed in with “sounds like we might be taking a trip to Abilene …”
I didn’t get the reference.
Thankfully, Don knew exactly what she meant, and we went back to our respective hotel rooms for the evening.
The lesson never has left me.
That might be because I have since seen teams of smart and committed people going on their own trips to Abilene… and some of these teams included me.  None of them, quite obviously, included Laura.
Yes; I have been in Abilene-bound meetings and I have been on Abilene-bound teams.  Have you as well?  Have you seen some of these trips being taken, and perhaps you might admit your participation as well? … Odd, isn’t it?
Odd, unsatisfying, and unhelpful.
There’s a powerful social dynamic at play here.  I need to bone up on what exactly that is, but, for now, I just know that I do not want to take any more trips to Abilene.
I need to take a trip and find Laura… or, I need to become Laura.
john greco sig

The overhead myth is still alive and well

overhead1It wasn’t even a year ago when the CEOs of BBB Wise Giving Alliance, Guidestar and Charity Navigator all signed a letter encouraging donors to stop looking at the concept of “overhead” to determine the effectiveness and efficiency of non-profit organizations. This letter was the culmination of many efforts and lots of voices including Dan Pallotta, who is the author of “Uncharitable”. Bloggers and non-profit professional everywhere heralded this as a campaign that will put an end to what is commonly referred to a “The Overhead Myth“.
Over the years, I have written a number of blogs on this subject including:

At the end of my June 27, 2013 post, I wrote the following:

“I personally don’t think anything is going to change as a result of this “overhead myth” campaign push.  I think donors are set in their ways. I believe Dan Pallotta was right about the Puritan influence on our culture. I don’t think “culture” and “values” and “habits” are easy to change. AND I think talk is cheap.”

As you can imagine, I was roundly criticized for being a “negative, glass-half-empty” kind of person. That’s OK . . . I have thick skin.
Besides, I knew I was right which always goes a long way when it comes to swallowing criticism.  😉
overhead2As they say, the proof is in the pudding which is what inspired today’s blog post. The pudding, of course, is an article that washed into my email inbox from LinkedIn on November 30, 2013. The author was John Wasik and the article was titled “Digging Into Non-Profit Finances: Four Things To Check“.

In his post, Wasik talked about illegitimate non-profit organizations and the lack of real oversight for our sector. He shared four tips with readers/donors on what they should look for before making a charitable contribution.
Yep . . . you guessed it. He points to the classic definition of “overhead“. Here is what he said:

“What percentage of the non-profit’s income went towards it mission? This is also a key red flag. This percentage is also known as ‘the overhead ratio,’ which tells you how much was spend on non-program expenses such as fundraising and administration. A fairly well-run non-profit will spend at least 80% on its mission.”

The truth of the matter is that this morning’s blog post isn’t really a victory lap or an “I told you so…” article. The reality is that I am annoyed at my fellow non-profit professionals.
Did we really think that an open letter to the world was going to suddenly change everything?
I certainly hope not!
As I said back in June, “I don’t think “culture” and “values” and “habits” are easy to change. AND I think talk is cheap.”
All of this leads me to wonder . . . what have you been doing on the front line to educate your donors and bring an end to “the overhead myth“?
Ohhhhhhhhh . . . you don’t know what to do about it? Well, here are a few suggestions to get your creative juices flowing:

  • Post the open letter from BBB, Guidestar and Charity Navigator to your website.
  • If your agency runs a blog aimed at a donor audience, then blog about it.
  • During your year-end stewardship meetings with your top donors, figure out a way to talk about it.
  • Organize a focus group of board members around reading Dan Pallotta’s book “Uncharitable” and talking about it.
  • Stop highlighting and reinforcing “the overhead myth” in your annual report documents with pie charts showing how much you spend on programming vs. administration vs. fundraising. STOP!

OK . . . I got the ball rolling for you. Please scroll the down and use the comment box below to share additional ideas with your fellow non-profit professionals.
Not only can we learn from each other, but we can also inspire each other to solve bigger problems together. Please take 30 seconds out of your busy day to share one idea. Please?
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

Are your agency's employee performance plans full of pixie dust?

Sprinkling the Pixie Dust

By John Greco
Originally published on March 25, 2012
Re-posted with permission from johnponders blog

pixie2I was very new to the company.

I was in a meeting with the regional vice president and the regional staff.  The region was underperforming.  We were a few months into the new fiscal year, and we were already trending far short of our productivity target.  It was time to act, to get back on track.

And then I heard the action that I immediately knew had absolutely, positively no leverage.

“We’ll just have to raise everybody’s goal then!” the RVP spouted.

Huh? I thought I had misheard.  Raising a goal will help improve performance when performance is already short of the goal?

Inexplicable.

How can we make sense of this?  I only have one theory —the RVP and staff must believe that his management team and perhaps his associates are not putting forth their best effort.  Somehow raising the goal to increase the gap between actual and expected will kick everyone in gear, and boost performance.  It would be the increased dissonance that would provoke improved productivity.

I wouldn’t bet on it, would you?

What I think was really going on (I didn’t have this insight then) is that RVP and his staff didn’t have any idea how to improve performance.  They felt helpless; powerless.  But they did have the power to set the bar.  So they did what they could.

So, when on the national conference call he was asked about the disturbing early trend, he could confidently say:  “Yes, I’m on top of that; I’ve already taken action.

pixie1Action without any leverage.  Might as well sprinkle a little pixie dust!

But, beyond the fact that there’s no way that action will prove effective,  there’s another consequence, a more insidious, more harmful, consequence.

This kind of leadership produces a loss of confidence; it produces a loss of hope by employees in the ability of their leaders to make decisions and take actions that make a difference.

So, if you’re with me, what started as a leader and his staff being helpless to correct underperformance led to an action that actually produced a helplessness in his people.

Less than zero leverage.  Not no effect; negative effect.

Absolutely, positively.

Pass the pixie dust please?john greco sig

What is your non-profit agency's sustainability plan?

Sustainability by Descending Order of Love

By Dani Robbins
Re-published with permission from nonprofitevolution blog
sustain1The new normal has forced a lot of nonprofit leaders to rethink the way they do business. Crises, as unpleasant as they are to experience, allow for growth. I love Rahm Emanuel’s quote “Never let a good crisis go to waste.”
The old normal, otherwise known as normal, to which we all ascribed went something like this: Have a diverse funding base. That way, if ever you lost a government grant, major donor, or foundation award, you could continue to provide services.
Then, as we all remember, the economic crisis of 2008/2009 came, with the compromise of every funding source we had and the end of life as we knew it.
It forced all of us to reassess.
So….what’s a good Executive Director and talented Board to do?
Change!
Think about every process and every assumption, put it on the table, look at it, talk about it and figure out if it still works for your organization. If it does, keep it. If it doesn’t, create a plan to evolve that process into one that better serves the organization and its need for revenue sustainability.
How do you work towards revenue sustainability? Some organizations do it with a consultant, some with a board member, some with a staff member or a donor.
Where do I start? I start with explaining the history of giving in the US and the fact that 80% of all financial gifts, grants and awards, including corporate and foundation giving, come from individuals. I then move on to explain that 80% of most non-profits’ income does not come from individuals.
What, then, do we have? Enormous Opportunity!
I then introduce the idea of descending order of love. Individual giving starts with the people who love you the most.
sustain2Let’s get those people together and brain storm: Where are we today? Where do we want to go? How can we get there?
Big gifts require big dreams and the capacity to engage people to help reach those dreams.
Get together and figure out your dreams, turn them into goals and then create a plan to meet those goals. Then, put together a list of current donors and a robust list of potential donors, also called prospects. Take a look at your current gift acceptance policies. (Revise or adopt as necessary) Once we have a goal, a plan, lists, and the requisite policies to increase the revenue for your organization, I move to descending order of love.
Your board, staff and major donors will be the foundation of any fundraising plan. Those who love you the most will support you the most. If sustainability were a board game, there would be a Start Here button.
Each board and staff member should make a significant gift. I can hear you thinking  “Dani, significant is a fluid term.” Yes it is and that is intentional; my goal is always 100% Board and staff giving. It is critical that those closest to an organization financially support that organization. If they don’t, how can they ask someone else to?
Each board member should be asked in person for a specific gift, not the same gift as every other board member, but a specific gift o that board member which should be determined based what the staff and committee know about their capacity and level of engagement. If someone has enormous capacity but is not that engaged, a significant gift may be less than someone who has less capacity but is more engaged.
Who should do the asking? The person who is most likely to get a YES. Usually that’s another board member, but sometimes, it’s the Executive Director, or a volunteer.
Staff should also be asked to financially support the organization. Care should be taken to who should make that ask as well. I recommend a volunteer, because with fundraising and everything else, we want to avoid even the perception of impropriety.
Once we have 100% giving of staff and board, we move to our major donors and our prospect list and again, make specific in person asks. Prospects should be appropriately cultivated before they are asked for financial support. The definition of appropriate will change based on the individual and the need.
I consider major donors to be the top 10% of givers to your organization. It may be $250, it may be $25,000. It may be more and it may be less. If we continued to play our sustainability board game, there would be a This Way arrow here.
After major donor solicitation are completed, if you have the time and the volunteers, consider asking your larger mid level donors and prospects in person. Then move into your actual mid level donors and prospects. Those with the potential to become major donors should also be asked in person as should anyone who is committed to your organization. While we follow the path of descending order of love in planning, we love all of our donors equally. If someone would like to see you in person, even if it will be a small gift, go. It is fun to thank someone in person and is worth keeping a committed donor engaged. When that is not practical, the next best thing is a phone banks or phone calls.
Our Board game and our plan for income sustainability ends with an appeal letter to those who have not yet been asked or have been asked but have not given and also haven’t said no.
I invite you follow the descending order of love of path to sustainability. Please let me know how it goes. As always, I welcome your feedback.
dani sig

Non-profit executive directors are not zombies or vampires

undeadI know that this may sound silly, but I think it needs to be said for the record. Non-profit executive directors (e.g. CEOs) are not the undead. They do not live forever. They will leave your agency some day. And every board should be preparing for that eventuality.
Let me assure you that you are not “jinxing” yourself by being proactive.
Here are a few questions you should be able to answer well in advance of the day when you executive director submits their resignation:

  • Will you bravely move forward into the future with an interim executive director or will your board form a management team?
  • How do you intend on building a large, qualified applicant pool?
  • How will you screen those resumes?
  • How will the board determine which skill sets and competencies are necessary for the next executive director to possess in order to take the agency from Point B to C?
  • How will you develop interview questions based on teasing out these competencies and skill sets?
  • Who is responsible for recruiting the search committee? Who should be asked to sit on this committee?
  • Have internal candidates been getting groomed? If so, how will those candidates be treated?

Many non-profit organizations start to address some of these issues through the creation of a succession plan.
Click here for additional resources pertaining to success planning provided by the National Council of Nonprofits.
Does your non-profit operate with a succession plan? If so, what is in it? Looking at the aforementioned list of bullet points, is your agency able to answer these questions today? If not, what steps can you take to start addressing these issues in the next six months?
Please scroll down and use the comment box below to share your thoughts and experiences. 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
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