nonprofit – Page 37 – The Healthy Non-Profit

Is “fear of failure” defining your fundraising program?

June 18, 2013 erik Fundraising, Planning

Last week I was on the road working with clients. One evening when I was out to dinner, a revelation about your fundraising program struck me like a bolt of lightning while in the restroom of a restaurant. Yes, you read that last sentence correctly. I was thunderstruck in the bathroom. Inspiration came in the form of a little sign sitting by the sink.

This is kind of what that sign looked like:

I’ve been chewing on this question for a week now, which tells me that there is a good blog post somewhere in there. 😉

Failure and your fundraising plan

The first flurry of thoughts that ran through my head pertained to many fundraising programs I’ve seen throughout the years. Here are just a few questions I find myself asking about many agencies’ annual resource development plans:

Why are they running so many special events?
Why aren’t they measuring return on investment (ROI) on each of their events and campaigns?
Why aren’t they evaluating and critiquing each event and campaign?
Why aren’t they innovating and trying new things (e.g. email, social media, etc)?

I’m now wondering if the answer to these questions is that we’re afraid of failure, and it is just easier to keep doing the same thing over and over again. After all, if we evaluate and ask questions, then shouldn’t we “do something” about those things that don’t look so good?

As for innovation and trying new things, there has to be all kinds of “fears” associated with venturing off into the great unknown. Right?

I know that talking about those things we’re afraid of is difficult for many of us. It is this simple truism that keeps countless counselors, therapists and psychologists employed every year. However, I encourage you to take 30 seconds our of your busy day right now and consider these questions and the possibility that your fundraising program is in the grip of fear-based decision-making by staff, fundraising volunteers, and board members.

What would you do . . . if you knew?

What an interesting question to ponder. Dontcha think?

What would I do, if I knew, I could not fail?

Let me step off that cliff first. The following is a list of things (as it pertains to non-profit management and fundraising) I thought of in 30 seconds:

I would call the top 10 most influential people in town and ask them to join my board or get involved in some aspect of my fundraising program.
I would kill every special event fundraiser that was older than 5 years old and replace it with something new and fun.
I would calculate ROI on every event and campaign and stop doing everything that didn’t bring me at least a 75% return (and I’m talking about using both direct AND indirect costs in that calculation)
I would find the time to add an ePhilanthropy aspect to my annual fundraising plan that includes blogging, social media, email and website (and I’d add a robust evaluation component to this program).

Now it is your turn. Please take a few second to contemplate the question at hand. What would you do? Once you have one thing in your head, please scroll down and share it in the comment box below. Let’s inspire each other today.

Here’s another thought. Why not start off your next board meeting and all of your upcoming committee meetings with this question. You might just be surprised by what your volunteers tell you. If you do, I hope you’ll circle back around to this post and share what they said.

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

Have you fallen in love with Michael Stelzner yet?

June 17, 2013 erik technology

Non-profit professionals all seem to be saying the same thing to me about technology and social media . . . “We’re tired. It is confusing. It evolves too quickly. We still haven’t figured out what works. We don’t have the time or money to invest in conferences, trainings, staff and resource manuals to figure all of this out.”

Yep! This is the plight of the modern, small, under-resourced non-profit organization. For some executive directors, fundraising professionals and program/ops staff, this becomes frustrating and even hopeless.

My best advice to everyone is to fight this feeling and fight it with every fiber of your being. The future is upon us, and the way non-profit agencies communicate with the outside world is changing rapidly. The consequences associated with falling too far behind the social media and technology curve can mean the difference between staying in business and becoming obsolete.

You’re reaction is probably something like . . . WHAT?!?!

I get that, but I really don’t think I am being a drama queen here. In the future (and I do mean the not-so-distant future), social media and technology will be how your non-profit does a lot of communicating with:

clients
board members
volunteers
staff
donors
prospective donors and the community-at-large

Don’t believe me?

Well, just the other day I was walking down the street while in Vancouver on vacation when I saw a homeless man sitting outside of a restaurant on the sidewalk. While it is impossible to know if he was homeless, he was at least someone who was obviously “down on his luck“. He was young and couldn’t have been older than 25-years-old. He was frantically pecking away on a smartphone and obviously stealing a WiFi signal from the restaurant. I couldn’t help but wonder if he was searching webpages or social media sites to see which soup kitchens, food pantries or shelters were open that day.

The future is upon us, friends! To give in now to those hopeless feelings you have about social media and technology would be a mistake. The solution is to push forward and embrace change.

I know, I know. There are no resources. It always comes down to this for non-profit organizations. Doesn’t it?

Well, this is where Michael Stelzner enters the picture!

What? You haven’t discovered Mike yet? In a nutshell, he is the CEO of Social Media Examiner. Here is an excerpt from his website describing his company:

“The world’s largest online social media magazine, Social Media Examiner helps businesses discover how to best use social media, blogs and podcasts to connect with customers, drive traffic, generate more brand awareness and increase sales. Our mission is to help you navigate the constantly changing social media jungle.“

Click here or on the YouTube video below for a fun little introduction:

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=54c5M2IrX0I]

He regularly publishes blogs and podcasts about a variety of social media topics. Here are just a few of his recent works:

Here is the bottom line. Dedicating yourself to the idea of becoming a “lifelong learner” will be the saving grace for your non-profit organization. People like Michael Stelzner are your salvation. He puts out good stuff, and it is FREE. All you need to do now is:

click-through and subscribe to his online magazine and podcasts,
prepare for the regular stream of emails containing his material, and
find time to read and listen to his stuff.

Oh right . . . time is a resource and something many of my non-profit friends tell me that don’t have enough of. OK, I suggest that you download Michael’s podcasts to your smartphone and listen to him on the treadmill in the morning or while driving between your daily meetings.

Nothing in life is as simple as clicking on a button. You will need to work at this and find the time to become a lifelong learner, but the viability of your non-profit organization is depending on you.

Please go check-out Michael Stelzner and his amazing online magazine. Click around his site. Listen to a few podcast. Circle back around to this blog post and share your thoughts in the comment box below. We can all learn from each other.

Here’s to your health!

Donors don’t like deception

June 14, 2013 erik Fundraising

Welcome to O.D. Fridays at DonorDreams blog. Every Friday for the foreseeable future we will be looking at posts 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 post titled “Fire and Rain,” John talks about the story behind the story with regard to James Taylor’s song “Fire and Rain” and his personal reaction when he discovered some of the urban legend associated with it. While it is obvious that John will use this post as a springboard to another post, I think John’s reaction as he describes it in his post speaks to a basic truism:

No one likes to feel like they’ve been deceived.

Even when there are elements of truth, I’ve seen people react strongly just because it “FEELS” deceptive.

This idea is something that non-profit organizations deal with all of the time as it relates to donor communications. Right?

The following few examples spring immediately to mind for me:

Example #1: Agency X is experiencing cash flow issues, but doesn’t share this news with its donors. Why? They are afraid that this news will deter donors from writing checks.
Example #2: Agency Y is getting ready for it annual audit. In preparation for a visit from their auditor, they discover that their administrative and fundraising costs were a little higher than they anticipated. So, they change some of their salary allocations in order to put their numbers back where they should be. Why? They know that individual donors, United Way agencies, foundations, and even the Better Business Bureau have expectations (and standards) associated with how much money a “responsible” non-profit organization spends on fundraising and administrative costs.
Example #3: Agency Z is developing a direct mail appeal and knows that people don’t like to give money to the “general fund”. So, they craft a letter that says something like “It costs $X to run program A, it costs $Y to purchase equipment B, and $Z to purchase program supplies”. When the responses start rolling in, the money is not used for A, B or C and instead put into the general fund to pay for the electric bill or employee salaries. Why? The intent of the letter was to raise unrestricted income, and the organization thinks donors understand that “cash is fungible“.

These are fictitious examples, but do you remember the 1994 Christian Children’s Fund scandal? Here are a few other recent examples of when donors were deceived or “felt” deceived:

Susan G. Komen for the Cure threatening to not fund Planned Parenthood. How was this deception? Donors never thought their contributions were supporting an organization with an alleged political agenda.
LIVESTRONG’s founder, Lance Armstrong, admits to doping. How was this deception? The foundation co-branded itself with its founder’s image and donors invested based on his story, character and credibility. After the confession, donors couldn’t help but openly wonder: “If he lied about doping, what else is he lying about?“
Boy Scouts of America and their long standing battle with the LGBTQ community. How was this deception (after all haven’t they been very vocal about their membership restrictions)? Some donors see hypocrisy with this policy because a case can be made that the policy contradicts some of the 12 points of the Scout Law. Moreover, the Scouts announced to the world a few months ago that they were poised to re-visit and possibly reverse this policy. As the date got closer, they postponed and stalled. “Deception” is sometimes as simple as saying you will do something and then dragging your feet on doing it.

In John’s post, he admits that his feelings for James Taylor’s song “Fire and Rain” changed after he learned the truth. The reality is that your donors’ feelings for your agency will change if they feel deceived. The point here is that it doesn’t even have to be outright deception. It only has to be the “feeling” of deception.

What does your agency have in place to insure honesty, transparency and ethics? Please use the comment box below to talk about things like ethics policies, whistleblower policies, evaluation practices, etc. We can all learn from each other.

Here’s to your health!

What are you doing with your non-profit data?

June 13, 2013 erik Board development, Board governance, Fundraising, organizational development

If you are collecting data on your non-profit organization’s performance and doing nothing with it, then you should be tarred and feathered. You are too busy to be doing things that don’t get you a return on investment on your time. Unfortunately, data collection can be time-consuming if you haven’t built good systems to make collection easy, and there are too many small non-profit organizations who are under-resourced and haven’t built those systems.

So, why do so many agencies still invest the time to collect data when it is difficult to do and so incredibly time-consuming? In almost every instance that I’ve seen, it is simply because a donor is requiring it or they are affiliated with a national organization that makes it mandatory.

Here is a thought . . . if you are going through the effort, then why not benefit from it?

What should you measure?

The “WHAT” is hard to answer unless you know the “WHY”. In other words, you should measure things relating to board engagement and performance if you want to improve those things. You should measure things relating to money and donor behavior if you want to improve your resource development.

One national organization with whom I am very familiar (wink, wink), developed an entire organizational scorecard full of key performance indicators (KPIs) that breakdown into the following five ares:

strategic growth
increased impact
financial health
resource development
board of directors

I know that a number of subscribers to this blog aren’t members of this “unnamed national organization,” and you are probably wondering what are some of the KPIs listed under these categories. While I don’t think I’d be violating any major trade secrets in sharing those KPIs with you, I want to be respectful of their work. So, I’ll only share a few of those KPIs to give you an idea and a start:

net change in number of clients service
average days cash on hand
net change in total income
percent of board volunteers that attended 75% of meetings
percent of board volunteers who make a personal unrestricted financial gift
percent of board volunteers who make a face-to-face solicitation on behalf of the agency

If you are interested in developing KPIs and a scorecard for your non-profit organization, here are a few resources I’ve found online that may help you:

Association of Fundraising Professionals: “Key Performance Indicators: Nonprofits Need Them, Too!“
Liz Marenakos of Blackbaud: “Identifying and Measuring KPI’s“
Virtue Center: “Brutal Honesty: Measuring Non-Profit Success with Key Performance Indicators“

What next?

I point you back to my inflammatory opening sentence:

“If you are collecting data on your non-profit organization’s performance and doing nothing with it, then you should be tarred and feathered.”

Collecting this data isn’t rocket science, but it is time-consuming and you’re too busy to invest that time and get nothing back in return. Right?

If you are measuring program-related KPIs (e.g. outcomes data, impact data, etc), then you should share that info with the staff responsible for those programs. If you are measuring fundraising-related KPIs, then you should share that info with your fundraising staff and fundraising volunteers. If you are measuring board engagement related KPIs, then you should share that info with board volunteers.

I believe all KPIs should be shared with all board members in all instances (but at the appropriate time and setting) so they understand whether or not the organization is healthy or unhealthy. I also believe that where possibly, KPIs should be directly tied to performance management systems and evaluation tools.

The big idea here is that collecting this type of data, sharing this type of data, and integrating this type of data into systems like employee performance appraisal and board evaluation will drive change because it creates urgency, accountability and the assessment information necessary upon which organizational plans can be built.

Has your agency developed KPIs? If so, how do you use them? With whom do you share your data? What has been the result? Please use the comment box below to share your experiences.

Here’s to your health!

What should you do when hiring a non-profit consultant?

June 12, 2013 erik Uncategorized

When a non-profit organization wants to secure my assistance as a consultant, it always seems to happen like this:

Someone calls or emails me.
We sit down (or at the very least talk via phone)
They tell me a sad story.
They ask for my assistance.
I share with them a variety of different services I can provide. I try to engage them in a discussion to narrow the scope of work so I can write a proposal and ultimately a contract.
They don’t really do a very good job of narrowing that scope of work because they want everything (and oh yeah . . . there is typically little to no money available to pay for anything).
I go back to my office and take a stab at writing a draft proposal for their consideration.
They review the proposal and want to make changes to the scope of work.
The proposal bounces back and forth a number of times until the client is happy.
A contract is produced and signed by both parties.

It doesn’t have to be this way.

Many of you have already diagnosed your own problem, and you know what you need from the consultant to help you fix what ails your agency. If this is the case, then I suggest you take a little time to write a request for proposals (RFP).

OK . . . so you don’t have the time to write a RFP? I get it. I’ve been in your shoes. How about sitting down for 30 minutes and doing this:

Write down in a few paragraphs what you see the issue being.
Write down what the situation looks like after it has been fixed.
Jot down a few bullet points that speak to your thoughts on possible deliverables (e.g. things you want to see produced by the consultant).

Doing these three simple things before sitting down with a consultant will save both you and the consultant time in the beginning.

Here are a few additional blogs and online resources I found online, which I think give some good advice on this subject:

Philanthropy News Digest: “What to do when hiring a consultant“
Philanthropy News Digest: “Lessons Learned: Hiring Consultants“
Grand Victoria Foundation: “The Insider’s Guide to Outside Advice“

Have you ever hired a consultant? If so, what would you have done differently in the beginning? Please share your thoughts and experiences in the comment box below. We can all learn from each other.

Here’s to your health!

Don’t set the bar too high for your next fundraising appeal

June 11, 2013 erik Fundraising

Hmmm? I must be on a Jeff Brooks kick because this is the second or third time I referenced his blog — Future Fundraising Now — in the last few weeks. LOL Did you read his blog post titled “Pixar’s 22 rules of fundraising” from a guest blogger named Andrew Rogers? If not, then you have to find a few minutes to do so. Those 22 rules are awesome and should be part of every fundraising professional’s toolbox. Today, I’m focusing on “Rule 16: What are the stakes? Give us reason to root for the character. What happens if they don’t succeed? Stack the odds against.”

When applying this Pixar rule to fundraising, Andrew Rogers says:

“Rule for fundraisers: What happens if the need isn’t addressed? How are real people being affected? In our case, we should never “stack the odds” by exaggerating or otherwise being less than perfectly truthful. On the other hand, don’t tell less than the full truth either, and remember that the full truth often isn’t very pretty.”

I cannot tell you how many times I’ve seen a non-profit organization try to apply this rule by telling donors things like:

We’ll close our doors unless we meet this fundraising goal.
We’ll shut down a site if this campaign fails to hit goal.
We’ll eliminate this program if we’re not successful.

To be clear, I don’t think Rule 16 is a license to practice extortion or heavy-handed fundraising tactics.

In instances where I’ve seen agencies use urgency messages laced with “We’re gonna close or we’re going to eliminate programming,” two interesting things seem to happen every time:

They usually get an initial bump in money coming in (e.g. donors respond), and
The next time donors get solicited, the response is down again.

I believe there is a simple explanation for this phenomenon . . . donors don’t like to throw good money after bad.

Before you decide to hit that big red panic button on your fundraising dashboard and tell the entire community that you’re in trouble, I advise that you think twice about doing it. All you’re doing is setting the bar very high down the road, and what happens if you cannot get over that bar?

I suggest going back and doing exactly what Rule 16 tells you to do:

Write a case statement that tells a story about one of your clients (or a composite client).
Describe their needs. What is at stake if they don’t succeed?
Describe how you help them with those needs. Help me root for them!
Describe how a donor’s support will tip the scales in their favor of our main character.
Don’t make this story so dramatic that donors conclude that nothing they do will make a difference.
Be truthful and make it emotional. You are telling a story!

This case for support document is internal. Use this tool to:

develop your agency’s marketing materials and fundraising brochures,
write your direct mail and targeted mail letters,
write your website and social media copy, and
train your fundraising volunteers on how to turn it into a story that they share with donors during a cultivation, solicitation or stewardship visit with a donor.

Always remember . . . donors care about your mission, your clients, and the impact of their contribution. They don’t normally care about saving institutions and your sacred cows.

What does your case for support (e.g. case statement) look like? When was the last time your refreshed that document? How do you go about developing that document? Please share your thoughts in the comment box below.

Here’s to your health!

Are non-profits getting serious about crowdfunding?

June 10, 2013 erik Fundraising, technology

A long time ago in a galaxy far, far away . . . we used to do a special themed blog post to start every week and it was called “Mondays with Marissa“. We haven’t run that series in a while because Marissa moved on to bigger and better things (and I should add that by bigger and better I mean “things that pay”). She got snatched up by one of the local Girl Scout councils to manage their online communities. However, in the spirit of “Mondays with Marissa,” I thought we would look back today at a previous post by Marissa, provide a little update, and spur additional conversation.

Crowdfunding is defined by Wikipedia as “… the collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations.”

Crowdfunding is a spinoff of crowdsourcing, and this YouTube video by crowdsourcing.org does a really good job of explaining it:

[youtube=http://www.youtube.com/watch?v=-38uPkyH9vI]

In the last year or so, both Marissa and I wrote about crowdfunding in the following posts:

In spite of my confession that I was a doubting Thomas and suddenly “saw the light” when it came to crowdfunding, I have another admission to make today. I was still a little skeptical after writing that post a year ago.

However, just last week and almost a year after proclaiming Marissa “right,” I read in the Fundraising Digest Weekly published by FundraisingInfo.com that the Smithsonian plans on running its first crowdfunding campaign. Click here to read more about the Smithsonian’s efforts at Businesswire.com.

After reading this, I must admit that it is impossible to be a doubting Thomas about this ePhilanthropy tool.

The Smithsonian is no slouch when it comes to resource development and fundraising. Their decision to turn to crowdfunding validates this online fundraising strategy as something that is here to stay.

Are you still a doubting Thomas? If so, why?
Has you non-profit organization experimented with crowdsourcing or crowdfunding? What did you do? What did you learn?
Have you seen other heavy hitting non-profit groups use a crowdfunding campaign successfully? Who? What?
Have you looked into other crowdsourcing applications other than crowdfunding such as crowdengineering, cloud labor, or crowdcreativity? Please explain.

Please use the comment box below to share your thoughts and experiences. Why? Because we can all learn from each other.

Here’s to your health!

Unhappy non-profit situation? Don’t worry! Be happy!

June 7, 2013 erik organizational development

In a post titled “Don’t Worry. Be Happy,” John pays tribute to his wife on their 35th wedding anniversary and makes a great point about change management and unhappy employees in the workplace. Specifically, John’s point (which he backed up with research) was:

“It seems once we stop worrying/doubting/resisting and start accepting and committing; we work — subconsciously if not consciously — to be happy.“

When I read this, it made me think about all of my non-profit friends who keep telling me how unhappy they are with their work situation.

The board isn’t committed to fundraising.
The staff is unhappy and it shows in their work.
Our donors seem more reluctant than ever to support our programs.
We’re losing a few major grants, and we don’t have a sustainability plan in place.

Every once in a while, I come across a study like the one reported in the Chronicle of Philanthropy on October 24, 2011 that says:

70% of non-profit employees are either somewhat fulfilled or outright dissatisfied with their job.
60% of employees said they don’t feel valued.
40% said the following important factors that aren’t being exhibited at their agency are: respect, trust, support, and a compelling mission.

So, what is an executive director or senior manager supposed to do when faced with stuff like this? Simple . . .

Don’t worry. Be happy. In other words, stop worrying and obsessing about it. Accept it as your reality. Worrying and doubting and resisting are a waste of time. A better use of your time will be to focus on solutions and what you’re going to do about it.
Figure out a way to teach others how to do the same thing (aka Don’t worry. Be happy.) If you can help board volunteers and employees adopt the same approach to whatever is bothering them, then you’ll be well on your way to changing culture and addressing the challenge.

So, let’s use a real non-profit example to illustrate this suggestion.

Your board volunteers are afraid of all things related to fundraising. They are frozen with fear and the result is inaction and lots of red ink on your financial statements.

Don’t worry! Be happy! Try to employ the following approach:

Stop blaming board members.
Stop asking them to do the same thing but in different ways.
Accept the fact that fundraising isn’t the easiest thing in the world to do.
Try to empathize and put yourself in their shoes.
Schedule a series of one-on-one meetings with board volunteers. Focus those meetings around the questions: “What are you willing to do in the area of fundraising (if anything)? What can I do to support you?“
Work with your board development team to do a better job with identifying and recruiting additional board volunteers who have a proven track record with fundraising at other organizations.

I have a confession to make. I am as guilty as anyone else when it comes to obsessing about problems and challenges. I will wring my hands. I will look at the situation from every angle. I will keep asking the same questions over and over again, which of course are “Why? Why? Why?”

Don’t worry. Be happy. This solution is easier said than done. However, when I look at the last six bullet points that illustrate how this change management approach can be practiced, it certainly seems logical and a lot more effective than focusing on: “Why? Why? Why?”

Have you ever tried using this approach? What was your experience? Please share your thoughts in the comment box below.

On a side note, congratulations to John and Jamie Greco for 35 years of marriage. This is a true testament to Jamie’s patience and perseverance. LOL Just kidding, John. It is a testament to your compatibility and love for each other. HAPPY ANNIVERSARY!

Here’s to your health!

Fewer statistics and more stories, please?

June 6, 2013 erik Fundraising

As someone who blogs every day, I find it necessary to read a lot of other people’s blogs, too. Every one in a while, I come across something that gets me thinking. If it is really good or cuts against the grain of something I believe, I might mentally chew on it for days. Two bloggers, who I respect and read a lot, are Jeff Brook at Future Fundraising Now and Marc Pitman (aka The Fundraising Coach). Both of these guys have had me chewing on something recently, and I must admit that my jaw hurts from all that macerating. The topic in question? Should you include statistics in your fundraising appeals?

In recent years, the non-profit sector has been hyper-focused on things like:

measuring program outcomes
measuring community impact
benchmarking projects
analytics

I must admit that I’ve bitten into this trend as hard as anyone. I am a bit of a data geek, and I love information. If I were being truthful, I’d even admit that sometimes the old expression “paralysis by analysis ” defines my work (even though I fight hard not to fall into this trap).

The logical extension of these tendencies is to include data and statistics in fundraising appeals, which is something I’ve done for years.

So, when I recently read Future Fundraising Now and The Fundraising Coach, it felt like nails on a chalkboard for a moment. However, I try to read with an open mind, and I must admit that they have a point. Here is how I did an about-face on this subject . . .

Hurricane Katrina

As I thought back upon this devastating natural disaster, I remembered being glued to the radio listening to NPR deliver the blow-by-blow description of what was happening on the Gulf coast. I have very clear memories of my attention waning when the reporter started saying things like:

1.2 million evacuees
$81 billion in damage
1,833 deaths

I also remember being glued to my radio as the reporter interviewed individuals who had survived the storm as they told their stories:

I remember one woman telling a reporter about climbing into the attic with her family as she watched the water levels fill the first floor of her home and start to consume the second floor.
I remember a gentleman talking about how long he had to wait on his roof for rescuers and how hard that ordeal was.
I remember a public official talking about the national guard’s efforts to evacuate trapped senior citizens from a nursing home.

Statistics . . . .Zzzzzzzzzzzzz. Stories? Please continue … I’m listening!

Before the written word

There is a lot of debate about how long the written word has played a role in human culture; however, I think it is fair to say that literacy rates only started significantly climbing in the last few hundred years.

So, how did humans communicate to each other important things like:

How to appropriately behave?
What to value and what is important?
Who should do what and by when?

It was storytelling. Sitting around a campfire and telling stories. Passing lessons along from one generation to the next generation by word of mouth in the form of a story with a moral to every story.

Fundraising conclusions

I still believe that measuring community impact and program outcomes is important. Please don’t stop doing this hard and arduous work. It is important to measure for accountability, stewardship and quality control purposes, but . . .

Please stop sharing all of that data with me during the solicitation process.

I want to hear warm fuzzy stories about your clients and how my contribution has contributed to those success stories.

Please train your volunteers to be good storytellers because there is nothing worse that having to sit through lunch with someone who can’t tell a good story. This is an art form. For some people it comes naturally and for others they need substantial training on how to do this.

So where should you put all of your data?

Well, I still believe that this information is an important part of being a good steward of donor dollars.

Upload it to your website . . . those donors who love data can find it there, and this sends a strong message about your commitment to transparency.
Share some of it in your annual report.
Create an impact report and send it to your donors every quarter.
Sprinkle some of it into newletter stories.

BUT . . . whatever you do, please don’t share this with me when you’re asking for my money. And if you do, please forgive me for the yawning and vacant blank stare.

If I’ve intrigued you with today’s post, then you may want to check out the blog posts by Jeff and Marc at the following links:

The Fundraising Coach, “Throw statistics out of your fundraising letters!“
Future Fundraising Now, “Why using statistics will kill your fundraising“

What does your agency do with its data? How much to your share with your donors? How and when do you share it with your donors? Do you include it in your written case for support document and training your volunteer solicitors to use it when soliciting contributions? Do you include it in your direct mail appeal? What has been your experience when using a storytelling approach to fundraising?

Please share your thoughts and experiences in the comment box below. Why? Because we can all learn from each other!

Here’s to your health!

Nonprofit board development is a process when done right

June 5, 2013 erik Board development, Board governance, organizational development, volunteers

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.

board of directors3 The single most important thing an organization can do to ensure its sustainability is develop its board. You may be thinking — “No Dani, it’s staff, leadership, programming, impact or fundraising” — and all of those things are important, but none of them can happen the way they should without a strong board. Everything flows from a strong board of directors.

Strong boards set the mission, vision and values for an organization; they hire the talented and effective CEO and hold that CEO accountable for ensuring and implementing the strategic plan; they raise money, act as the fiduciary responsible agent over the finance and the programming; and they set policy. When it’s done right — like all good leadership — it looks like nothing.

Don’t be fooled, it’s not nothing and it’s not easy.

Board development is the intentional process by which the board is perpetuated, evaluated, and educated. It is usually stewarded by a committee that may be called Governance, Nominating, Administrative or Board Development, and it helps develop an effective board through its two main functions:

Board Building: A diverse board of directors (thought, skill, race, faith, ability, orientation, age, and gender) that is passionate about the mission of the organization is created through a board building process. That process includes an assessment of the current board and needed skill sets, identification of prospective members, and recruitment and nomination of new board members.
Board Education: Board members will fully understand and can effectively fulfill their commitments to the board of directors when a comprehensive orientation, continuing education, and annual evaluation process is in place.

The Board Development Committee outlines what the organization is looking for in a board member by analyzing current board make-up and identifying future needs, and finding the very best person(s) to meet those needs. In this identification process, the Board Development Committee informs the entire board of what the expectations are for board service.

The Committee reviews the prospects and sets a target number and priority listing of those they wish to bring on at the annual meeting. This list is presented to the board of directors for their comments. Any concerns are directed to the Board Development Committee.

In the absence of concerns, or after such concerns have been addressed, the prospective board member is contacted, preferably by a board member, a committee volunteer, or the person with whom the prospect is most closely affiliated, who requests a time to introduce the prospect to the mission of the organization.

I do not recommend you start the conversation inviting someone to join your board, or even share that you are calling to discuss potential board seats. I recommend you say that you are aware of their interest in the population your organization serves and you’d like to share some of your successes in positively impacting that population. (It may be necessary to assure them you are not setting up the meeting to ask for a gift.) You can decide once you are at the meeting if they are good fit for your board and if you should open the door to discussing a board seat; if not, you can find another way to engage them.

board recruitment

If you decide that you would like to invite them to be considered for a board seat, I recommend you communicate the time, financial obligation and effort expected of all board members before they agree to join.

Time is the principal commitment. Board members should be available at the time the board meets and be prepared to meet as often as is necessary to complete the business of the board during their term of service. They should also be prepared to attend fundraising events and to participate as fully as possible in developing and implementing the resource development plan.

I recommend you do not add someone to your board who cannot attend the meetings; either move the meetings or have them serve in another capacity. Organizations can only carry so many members who cannot attend meetings and most organizations already have a few people who fulfill that role.

Another primary responsibility of the Board of Directors is to ensure financial stability. Therefore, board members are expected to assist with fundraising efforts, as well as personally contribute. The financial health of the organization depends upon people-to-people contact, and prospective board members should understand that identifying and cultivating potential donors is part of their job.

Prospective board members are voted onto the board of directors in accordance with procedures laid out in the organization’s by-laws, which in Ohio are called Codes of Regulation.

Once voted upon, new board members should be oriented. I like to orient board member after they’ve been voted upon but before they’ve been seated. The orientation, either individually or as a group, should be conducted by the Board President, CEO, or Committee Chair. By the conclusion of the orientation, new board members should have a sense of the mission and programs, finances, fundraising initiatives, strategic goals, structure of the board of directors and staff, and their own roles and responsibilities as a member of the Board of Directors. They should also be invited to consider their own goals for service.

Once the Board has been appointed, the Board Development committee moves into its other two roles evaluation and education.

board evaluation

Evaluation is the process of assessing the progress of the board and identifying changes that will bring greater achievement of the organization’s mission. Evaluation is a developmental process, not a report card.

The Board Development Committee will ask individual board members to complete an annual self-assessment, including a section evaluating board process, which the committee will use to complete the board assessment. When a board assessment takes place, the Board Development Committee will compare the board’s individual assessments, identify areas of consensus, and develop a plan of action for strengthening the board.

This process can also include an opportunity for Board members to request trainings. Annual board education is integral to a successful board. There are a variety of training options, an example of some include:

The Art of the Ask
Board Process – agendas setting, committee, topics, strategy, structure, engagement
Basic Board responsibilities (fiduciary and legal)
Board vs Staff roles
Best Practices of Effective Boards
Governance as Leadership: Fiduciary, Strategic and Generative Modes of Governance

I encourage every organization to create a formal plan to annually assess, develop and grow their board. Strength begets strength and strong boards ensure strong, sustainable organizations.

As always, I welcome your experience and insight.