If you love me, you’d never ask me run another non-profit raffle again

IMG_20130719_171856_480The other day it was hot in the Chicago area, and I decided to run to the grocery store to get some sugar-free ice cream for my diabetic spouse. As I trudged through the hot blacktop parking lot, I saw an unfortunate sight . . . a volunteer sweating his rear-end off standing behind a booth selling raffle tickets for the Knights of Columbus (see picture to the right). I was immediately reminded of a time not-so-long-ago when that used to be me.

The year was 2000 and I had just been hired as the new executive director of the Boys & Girls Club of Elgin. Just the year before this organization attempted to run its first Duck Race special event fundraiser. Without going into the details, it didn’t make them money. However, I was young and dumb. I was an inexperienced and a newly minted executive director. I had seen a very dear friend run a Duck Race in a different community, and he had been wildly successful netting close to $100,000.

If he could do it, then I could do it. After all, how hard could it be? All it seemed to entail was:

  • selling corporate sponsorships,
  • standing in high traffic areas and selling $5.00 duck adoptions to people who want a chance at winning a new car, and
  • putting numbers ducks in the river and pulling the winners out of the water to determine who wins which prizes.

What was the big deal? OMG . . . I wish I knew then what I know now.

As I approached the poor hot and sweaty Knights of Columbus volunteer, all of the pain came flooding back to me:

  • Recruiting 100 volunteers to help with every aspect of the race (e.g. marketing, tagging ducks, putting ducks in the water, taking ducks out of the water, data entry, and not to mention selling duck adoptions),
  • Organizing countless teams of volunteers to sell duck adoptions and trying every trick in the book to create a sense of fun-excitement-competition,
  • Chasing down volunteers to sign-up for weekend sales shifts (standing outside of the same grocery store where the Knights of Columbus volunteer was sweating),
  • Spending the entire weekend driving from sales location to sales location to support the volunteers by replenishing petty cash banks, restock merchandise, and fill gaps in between shifts where necessary, and
  • Personally filling holes in the schedule . . . standing outside of the grocery store or hardware store or bank . . . yelling out your sales pitch at people leaving the store . . . getting scowled at by people who don’t appreciate the disturbance . . . selling an adoption to approximately one-out-of-ten people.

ducks2These five bullet points are just the tip of the iceberg. The fact of the matter is that we started planning next year’s Duck Race in the immediate days and weeks after wrapping one up. This special event raffle was a year-round affair.

For me personally, it represented an eight week period of my life every year when I worked seven days per week . . . 56 days in a row without a day off for good behavior. I did this for six years, and when I was weighing the options associated with another job offer, the Duck Race was one of the Top Five reasons I left for greener pastures.

As I passed by the Knights of Columbus booth for the refuge of an air conditioned store, I put my head down and refused to make eye contact with that poor volunteer (just like thousands of other people did to me when I was selling duck adoptions). The last thing that ran through my head was the promise I’ve made myself to never work for a non-profit agency that runs any kind of raffle. The following is a list of reasons for this decision:

  1. Raffles are nothing more than gambling and there are laws, rules and regulations that don’t seem to be worth the time, energy or effort.
  2. Raffles entice donors to make a contribution to your charity for reasons other than your mission and getting these donors to crossover to other campaigns or events is next to impossible.
  3. Raffles involve prizes which means you better not mess things up or you run the risk of being sued.
  4. The record keeping is overwhelming and can involve double and triple entry of financial data depending on how your donor database, financial management system and raffle software are configured.
  5. Opportunity cost and return on investment calculations point to greener pastures when you look at using the same amount of time in other fundraising efforts (e.g. annual campaign pledge drives, etc).

The bottom line for me is that selling raffle tickets and chances should be an activity that is beneath every non-profit board volunteer. Their time is too valuable to ask them to sweat outside of a grocery store selling raffle tickets $5.00 at a time. How many donors could they have sat down with in the same amount of time and asked for a $250, $2,500 or $10,000 pledge?

Here is another way to think about it. If you don’t have the type of volunteers who feel comfortable sitting down individually with important donors and if your volunteers are more willing to sell raffle chances, then you probably have the wrong people sitting around your boardroom table. Perhaps, these people are  well-intentioned fundraising volunteers, but they certainly aren’t good board prospects.

If this last revelation upsets you, please accept my apologies. However, don’t dismiss this thought too quickly. Like a good cup of tea, let this idea steep and then share your thoughts 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

Is your non-profit only living for today? Then you need Picasso!

picasso1Welcome 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 “Not Pretty,” John talks about Pablo Picasso’s painting of Gertrude Stein and how it was a portrait of what he thought she would look like as an older woman. John used this story to springboard off into organizational development and change management themes. It was the following passage from his post that really got me thinking:

First off, how the organization performs in the future may hardly resemble how the organization is performing today … Time — aging — will have its way.  Things will change. Without the critical development of structure, process, culture, and talent, time — and change — will wreak havoc.  Capabilities will erode.  New capabilities will be needed.”

When I read this, I visualized rocks being pounded by ocean waves. In real-time, the rocks seem to win because waves disperse and scatter into mist and foam. However, the reality of the situation is the absolute opposite. The waves are actually winning. Right? Because in the long run those rocks turn into sand as a result of the pounding they take.

In this analogy, your non-profit agency is the rock and you’re more than likely eroding.

picasso2As time passes, the waves of change crash against your seemingly rock solid organizational exterior, but change is slowly occurring. Here are just a few examples:

  • You lose employees
  • You lose board volunteers
  • Your strategic plan is aging (in fact, all of your plans are aging)
  • Your technology systems are becoming outdated and old
  • Your base of donors gets older and their individual capacities change
  • Best practices and cutting edge practices morph and refine themselves (e.g. who saw online giving as an option 50 years ago?)
  • Your community’s economic foundation is eroding and changing (e.g. industrialization to information, local to global, etc)

Whether you feel it or not, your non-profit organization is being pounded into one big pile of sand.

And you are more than likely making things worse!

In recent years, there has been a lot written about “The Nonprofit Starvation Cycle” by folks like Dan Pallotta (via his books Uncharitable and Charity Case) as well as the recent open letter titled “The Overhead Myth” from GuideStar, Charity Navigator and Better Business Bureau.

I think an article by Ann Goggins Gregory and Don Howard in Stanford Social Innovation sums up the mistake many of us are making very well:

“A vicious cycle is leaving nonprofits so hungry for decent infrastructure that they can barely function as organizations—let alone serve their beneficiaries. The cycle starts with funders’ unrealistic expectations about how much running a nonprofit costs, and results in nonprofits’ misrepresenting their costs while skimping on vital systems—acts that feed funders’ skewed beliefs. To break the nonprofit starvation cycle, funders must take the lead.”

Is this you? Are you skimping? Are you living for today and ignoring tomorrow?

picasso4I really like the last sentence in this previous passage because it dovetails with John’s organizational development blog post about Pablo Picasso so very well.

In a previous post titled “Ending the ‘Overhead Myth’ is everywhere,” I was skeptical. I honestly don’t think an open letter to donors or a ton of online chatter will change donor perceptions about the value of investing in what John describes as “…structure, process, culture, and talent…”

If you’re going to engage your donors in this discussion because they are the key to allowing you to invest in what they perceive as “overhead,then you’re going to need someone like Pablo Picasso to help you assess what your organization will look like in the future. This information will help you develop your case for support, which is what you need before engaging your donors in this conversation.

Is this way too much work for you to consider? No problem . . . I’ll see you at the beach!  😉

What is your agency doing to engage donors and win their hearts and minds when it comes to “The Overhead Myth” and the “Nonprofit Starvation Cycle”?  Who is your Pablo Picasso helping you with organizational assessment (both present and future)? If you’re thinking about using an external consultant to help you with all of this . . . I think I know someone who wants to help you!  😉

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

Kick-Ass 2 movie trailer prompts non-profit superpowers question

Sometimes when I burn the candle at both ends and work long hours, things that normally wouldn’t register with me end up hitting me in funny ways. More often than not, those weird thoughts find their way into my blog posts. For example, a few nights ago I crawled in late at night after  a site visit with a client. I turned on the television for a few minutes to unwind, which is when I saw a commercial for a  recently released movie titled “Kick-Ass 2: Balls to the Wall“.

Click here or on the video below if you’re now curious about what I saw.

[youtube=http://www.youtube.com/watch?v=G4p4VyP3tH4]

According to one of the movie websites I was researching, “Kick-Ass 2: Balls to the Wall” is about:

The costumed high-school hero Kick-Ass joins with a group of normal citizens who have been inspired to fight crime in costume. Meanwhile, the Red Mist plots an act of revenge that will affect everyone Kick-Ass knows.”

OK . . . OK . . . OK . . . I am sure that many of you are probably wondering:

  • Has Erik gone insane? Has he lost it?
  • What does this silly sophomoric movie have to do with fundraising?
  • How will he tie this into a non-profit topic?

As I laid on my couch twitching from exhaustion watching that commercial for this movie, the following thoughts crossed my mind:

If I could have any superpower, which one would I want? And how would it make me a better non-profit or fundraising professional?

Silly question? Absolutely! But the answer might just be a little telling.

superpowersFor example, I concluded that I would want the super human ability to “read people’s minds“.  As I started thinking about why I might want that superpower, I concluded that knowing what a donor wants and how they want it would make me one of the best fundraising people on the planet.

This realization got me thinking even more about why this might be important to me, and I concluded that I’ve always struggled with the idea of donor research and getting some of the following questions answered before talking with a prospect (or even a current donor):

  • How much should we be asking for?
  • What are they passionate about and how does our case for support fit?
  • Who else do they support?
  • Are we in their top three favorite charities?
  • Do they have concerns about our agency that they’re holding back on asking?
  • What is their capacity? What is their willingness?

This list of questions can go on and on and on. While there are a number of ways that I’ve gone about getting answers to these questions throughout the years, the reality is that “mind reading” would make things so much easier.

Do you have a minute or two in your busy day to do something fun? If so, contemplate the following questions:

  • If you could have any one superpower, which one would it be?
  • How would it make you a better non-profit or fundraising professional?
  • Why did you choose that particular superpower? What insights into who you are (or what you struggle with) does this epiphany give you?
  • Since superpowers don’t really exist, what are you going to do now?

Take a minute to share the answers to these questions in the comment box below. We can all learn from each other.

Here’s to your health!

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

Is your non-profit good at the Why-How-What?

TED TalksA few days ago I bumped into a non-profit friend who had recently viewed a TED Talks video on YouTube featuring Simon Sinek titled “How great leaders inspire action“. It was obvious to me that this was a TED Talks video that I needed to view because it had inspired her to take action. Not only was she talking to everyone about what Simon calls the “Golden Circle,” but she had also shared the video with board volunteers as a precursor to a strategic discussion.

I think there are three things that make this video so contagious and easy to watch:

  1. The idea of the “golden circle” is easy . . . What-How-Why.
  2. These ideas are woven into many non-profit professionals’ DNA.
  3. The speaker does a nice job of relating What-How-Why to other companies and their successes (e.g Apple)

Early in the video Simon says,

Every single organization on the planet knows WHAT they do . . . Some know HOW they do it. Whether you call it your differentiating value proposition, you proprietary process or your USP . . . But very, very few people or organizations know WHY they do what they do.  And by WHY, I don’t mean ‘to make a profit’. That is a result. It is always a result. By WHY I mean what is your purpose? What’s your cause? What’s your belief? Why does your organization exist?

I’ve done a lot of strategic planning over the years. I’ve also done lots of tactical planning. And Simon hits on a super powerful idea with his What-How-Why.

what how whyThose organizations that excel at strategic planning have a very clear understanding of what they do, how they do it, and why they exist. However, those organizations that are little fuzzy on these ideas do a lot of wrestling with themselves. Sometimes countless hours are spent at the 50,000 foot view talking about these issues . . . and for good reason! Without clarity on What-How-Why, there is no way you can set goals, develop objectives and write action plans that are meaningful in any way, shape or form.

Some of you might be scoffing right now and asking, “How in the world can a non-profit agency not know ‘WHY’ they exist? It is as simple as revisiting their mission statement!

Well, not so fast, my friend. There are at least two situations that come to mind where this simple idea starts to get blurry.

  1. Some organizations have LONG histories and over the course of time their mission changes. For example, the March of Dimes was founded to address polio and today it exists to improve the health of mothers and babies. When this happens, sometimes the shift isn’t as clear as it was for March of Dimes . . . the ‘WHY’ gets fuzzy . . . and the challenges ensue.
  2. Some organizations experience mission creep because their resource development strategy wasn’t well-defined and board members let staff chase all sorts of funding opportunities regardless of what it was for or what they do. The end result kind of looks like a McDonald’s restaurant that also sells electronics and chiropractic adjustments. In short, the ‘WHY’ gets fuzzy.

I believe that good non-profits revisit the questions of What-How-Why on a somewhat regular basis. I applaud my non-profit friend for using this YouTube video to frame and stage an engaging boardroom discussion. If you have a little time today, I suggest you click-through to YouTube and view the video. If you like it, then forward it to your board president and have a discussion with them about its value. If you’re both excited and engaged, then share it with your board and talk about it as a group.

[youtube=http://www.youtube.com/watch?v=qp0HIF3SfI4]

If you end up doing any of what I just suggested, please circle back around to this blog post and share your experience in the comment box below. We can all learn from each other.

Here’s to your health!

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

Has your non-profit discovered Quora yet?

questionsWhen I used to work at Boys & Girls Clubs of America (BGCA), my colleagues were responsible for the existence of something called theFUNDRAI$INGbank, which is a special webpage embedded inside of the intranet accessible to local affiliates. We outsourced maintenance of this page to FundRaisingInfo.com. There were many different resources located on “The Bank” including a free service called “Ask The Expert“.

Whenever I talk to agencies who aren’t Boys & Girls Clubs about “Ask The Expert,” I’m typically told how lucky local Boys & Girls Clubs are to have such a service (and to have access to it for free). Usually, somewhere in those conversations, the person with whom I’m speaking says they wish they had access to such a thing.

For those of you who don’t have a national organization behind them offering such resources and services, I’ve always told them not to fret because we now live in the 21st Century and answers are mostly just a click away. I’ve encouraged non-profit friends to open their minds to the full potential that Google search offers them. I’ve also reminded them about how many non-profit bloggers are out there begging for comments, questions and engagement (this blogger not withstanding).

Now I am adding another suggestion to those non-profit staff and board volunteers who are in search of answers for free . . .

QUORA

Have you checked out this new online Q&A webpage yet? If not, I suggest you do so because it looks like a great resource for non-profit folks with questions. Here is what Wikipedia says about Quora:

quoraQuora is a question-and-answer website created, edited and organized by its community of users. The company was founded in June 2009, and the website was made available to the public on June 21, 2010.[3]

Quora aggregates questions and answers to topics. Users can collaborate by editing questions and suggesting edits to other users’ answers.[4] Quora’s main competitors are social bookmarking sites like redditsocial networking sites like ChaCha, and numerous question and answer websites.

Unlike BGCA’s “Ask The Expert” service, the answers and advice you get from Quora might not necessarily be from an amazing expert like the folks at FundRaisingInfo.com. However, if you go into it with the right mindset and an understanding that the answers you receive might just be from your peers, then this could be a great resource for you. At the very least, it represents a good starting point for finding answers.

Here are just some of the non-profit and fundraising questions that I see being asked on Quora:

  • What are some good platforms for online fundraising?
  • How do you manage memberships and donation drives in a small or medium size non-profit?
  • What cutting edge fundraising techniques are charities using?
  • What are the characteristics of high-performing non-profits?
  • How much power does a non-profit board have?

Interesting questions!

Of course, there is the obvious question, “What are some of the best ways non-profits can use Quora?Click here if you want to see responses.

When you have a question with which you’d like other people’s opinions, where do you go online? Google? WordPress? Blogger? Facebook? LinkedIn? Quora? Where do you find the most value in your search for answers? Have you used Quora yet? If so, what was your experience? Please scroll down and share your thoughts and experiences in the comment box below because we can all learn from each other.

Here’s to your health!

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

If I only had a heart . . .

On Monday, I shared with you a few observations from The Wizard of Oz and Oz: The Great and Powerful as I think it pertains to non-profit work. At the end of Monday’s post I promised to take you further down the Yellow Brick Road by revisiting a series of Oz-inspired posts from two years ago. Today’s post is about mission-focus. Enjoy . . . here’s to your health!  ~Erik

If I only had a heart . . .

Originally posted on October 26, 2011

tin manThere are 9-keys to “inspiring and managing yours board for fundraising success”. In fact, the reality is that these 9-keys are the same nine things you need to do to “engage” anyone in anything. However, I believe that these nine concepts are not all equal. While all are important, I have come to realize that the most important and most difficult engagement tool was best summed up by the “Wizard of Oz’s” Tim Man in this YouTube video.

The most important engagement tool in your nonprofit toolbox in my humble opinion is “MISSION-FOCUS”.

I personally learned this lesson more than 7-years ago when one of my more influential board volunteers (I’ll omit his name for privacy purposes, but let’s just say he was really good with other people’s money) resigned from the Boys & Girls Club of Elgin’s board of directors. While he resigned for personal reasons and still supported the Club, I didn’t see the train wreck coming until it was too late.

This board volunteer was infamous for taking 15+ prospects’ pledge cards as part of the annual campaign every year. His reasoning seemed sound: 1) they were clients of his, 2) they were friends of his, and 3) he had always solicited these donors. I’d be lying if I tried to tell you that I ever tried to talk him out of being such an overachiever. However, in hindsight I wish that I had.

The first year this individual wasn’t on our board, we tried to redistribute his annual campaign prospects to other volunteers. I finally understood how big of a fool I had been when my phone rang a few weeks after our annual campaign kickoff meeting. The call came in from one of our more steady donors who had always been solicited by this former board volunteer.

The call started off nice enough. “Hi . . . how are you . . . how are things down at the Club?” However, pleasant conversation quickly turned into a cross-examination: “why is so-and-so calling me for my annual campaign pledge this year . . . what happened to he-who-I-loved-to-get-solicited-by . . . is there something wrong at the Club whereby he just walked away from your board of directors?” And as if that wasn’t enough to cause me to run to the restroom and vomit, most of the calls ended with the donor talking to me like I was a kindergartener and telling me that they didn’t donate to the Club because of our mission but because of who had been asking.

The lesson I painfully learned was that stewardship was very important in the resource development process. Successful stewardship and relationship building meant transitioning a donor-relationship from their the volunteer-solicitor connection to a love affair with the organization’s mission. While it might not happen overnight, working on it symbolized a commitment to sustainability and a donor-centered paradigm. The Tin Man was 100% correct when he sang about the value of his heart.

Being “MISSION-FOCUSED” goes beyond stewardship . . . here are just a few ideas for infusing mission in everything you do at your non-profit organization:

  1. Host your board meetings, committee meetings and fundraising meeting at your service facility as a way of reminding everyone what their volunteer time commitments are all about.
  2. Focus newsletter content on return on investment messaging and all things related to your agency’s mission. Skip the boring advertisements for the next opportunity to make a contribution.
  3. Don’t let your annual campaign volunteer solicitors go on important solicitations by themselves. Staff should do everything possible to get invited on important solicitations and ensure: 1) the ask is not being done in a “quid pro quo” manner and 2) mission-oriented reasons are infused throughout the solicitation call.
  4. Find ways to bring the idea of your clients into important meetings. For example, ask agency clients to participate in an essay contest about what they value most about your organization, its programs and mission. Share those essays with board volunteers, fundraising volunteers and donors.
  5. Incorporate a “mission moment” into ALL MEETINGS as a way to keep the focus on why you’re asking others to do what they do.

Failure to inject “MISSION-FOCUS” into all of your meetings and fundraising campaigns can be disastrous. It can lead to volunteer-fatigue and donor turnover. It can create a sense of disengagement that results in staff doing everything. Do I need to go on? Come on  . . . if a Tim Man can get it, then surely we all understand the importance of this concept. Right?

I can go on and on, but I’d rather you share with your fellow DonorDreams blog subscribers what you do to maintain a healthy dose of “MISSION-FOCUS” in everything you do. Please use the comment box below to share your example because we can all learn from each other. There are no right or wrong answers. Please jump in.

Here is 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 you King of your non-profit forest?

On Monday, I shared with you a few observations from The Wizard of Oz and Oz: The Great and Powerful as I think it pertains to non-profit work. At the end of Monday’s post I promised to take you further down the Yellow Brick Road by revisiting a series of Oz-inspired posts from two years ago. Today’s post is about leadership. Enjoy . . . here’s to your health!  ~Erik

Are you King of your non-profit forest?

Originally published October 25, 2011

cowardly lionAs a new business owner who just opened up a nonprofit & fundraising consulting practice, I’ve made it my business to “get around”. In addition to visiting with many of my oldest and dearest non-profit friends in Elgin, Illinois, I recently attended a regional Boys & Girls Club conference and engaged countless staff and board volunteers from around the country through a very aggressive social media strategy including Twitter, Facebook, LinkedIn and this blog. While I don’t want to exaggerate, I was surprised at how many conversations looked and sounded like this“Wizard of Oz” YouTube clip.

Here were some of the things heard I nonprofit CEOs, fundraising professionals, and board volunteers saying that leaves me wondering “King or Coward”:

  • “Erik, I am so sick and tired of my board volunteers passing the buck on fundraising and expecting staff to pick-up the pieces. I’m just gonna tell them ‘how it is’.”
  • “Erik, our staff has let us down and not provided the necessary leadership during these tough economic times. I’m afraid the board will just need to look at making draconian cuts and muddle through these tough times.”
  • “Erik, donors are cutting their charitable giving during these tough economic times. So, the only thing left to do is tell donors and anyone who will listen that our agency is on the brink of closing its doors if people don’t start stepping up.”
  • “Erik, I know we need to invest heavily in capacity building activities during this economic down turn if we have any chance at making it out the other side. However, I just know that the board isn’t up for this kind of work at this time, and I won’t use my influence to push for something that doesn’t have legs.”
  • “Erik, I refuse to invest in ‘planning’ activities because they just don’t work. We once wrote this amazing plan, and it just ended up on the shelf collecting dust.”
  • Erik, fundraising is the board’s job, and I am hesitant to offer my opinion on what needs to be done because then it becomes ‘my idea’. And if ‘my idea’ falls short, then it just becomes one more reason for the board to fire me. Remember . . . board volunteers don’t fire themselves, they always fire the executive director.”

I understand that tough economic times has a chilling effect on leadership, but your only chance at surviving these strange and new times is by eating an extra bowl of Wheaties in the morning and showing up for work ready to take some smart risks and actively lead. Here are a few observations and suggestions I have for the non-profit community as my “listening tour” comes to a close:

  1. My kindergarten teacher always taught me that “telling people” isn’t very effective if you want them to be your friend. I suggest sharpening your listening skills and do more asking than telling when it comes to engaging donors, volunteers and board members.
  2. The “blame game” is an old and tired game. If the board is unsatisfied with the agency’s performance and is feels inclined to play this game, my advice to those board volunteers is skip it, save your breath, fire the executive director (because you know you’re going to do it regardless of what anyone tells you), and get on with the business with digging out of your hole. Brutal? Sure it is, and I’m uncomfortable with the recommendation. However, how many times have you seen board and staff struggle through tough times with lots of finger-pointing and it all worked out “happily ever after”??? Never! So, be decisive and move on to what is important — survival. By the way, after the hatchet job and search for a new leader, it is probably important the board turn the mirror on itself, dust off the guillotine and quickly get rid of non-performing, poor fundraising members. I suspect many of those soon to be headless board volunteers were leading the charge to fire the executive director. Vive Le France!
  3. Pointing the finger at donors is the quickest way to lose a finger. I don’t care if it is an individual, corporation, foundation or government agency. I’ve seen “the little boy who cried wolf” fundraising strategy work once, but it gets more difficult to fundraise the more you use this tactic. Of course, the reason for the fast diminishing return is because no one likes to invest their charitable giving in what they perceive to be a “sinking ship”. Stay positive and double down on stewardship efforts. People like to see the good things their contributions helped produce. So, show it to them.
  4. Written plans that fall short are most likely the result of: a) a poorly designed planning process that did not appropriately ‘engage’ those you needed to step forward during the action plans part of the process, b) thin-skinned leadership who didn’t like what they saw during the evaluation phase and dismissed the call to action by putting their heads in the sand, or c) a poorly designed implementation tools (e.g. committee work plans, staff performance plans, dashboards, scorecards, etc). Don’t toss one of your few ‘engagement tools’ out the window. Instead, double down on do it differently and better!
  5. Attention agency staff: If you find yourself treading water and paralyzed by fear of failure, then please do the honorable thing and resign. I don’t say this to be mean, but board volunteers need strong leaders who know how to LEAD. With leadership, sometimes comes failure. Right? So, don’t be the “Emperor who walks into the room without any clothes on“. (Please accept my apology for this last YouTube link. It was salty and unprofessional, but it was sooooo funny I just had to share it because this uncomfortable and funny video is exactly the same feeling we all share when a non-profit staff person is paralyzed and unwilling yet pretending to lead)

I could go on and on, but I’ve gone on too long. Please use the comment box below and share a story on how you are “king” of your non-profit castle and not a “coward”. How are you investing in capacity building efforts? How are you engaging others who seem to be stuck in neutral during these tough times? Please weigh-in because we can all learn from each other. Your words can also serve as inspiration to others who are struggling.

Here is 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

Spray and pray fundraising strategies don’t work anymore

spray and prayThe concept of “spray and pray” in resource development is simply sending out many appeals (aka shotgun effect), and then waiting for (aka hoping and praying) that enough donors respond so that you can make your goal. “Spray and pray” doesn’t just refer to direct mail. Back in the day, I used it in annual campaigns where I asked fundraising volunteers to identify five people from their social network, sit down with them in-person, and ask for a pledge or contribution. If your fundraising program is still loaded with “spray and pray” strategies, then you’re probably struggling because those days are long since over.

I decided to blog about this topic today because it has now come up in conversations with clients and fundraising professionals and in other various ways (e.g. things I read, etc) more than just a few times over the last six months.

Why? Why? Why?

I’m not sure that I care about “The Why?” A friend of mine used to say all the time — “It is what it is” — which was his cute way of saying “It doesn’t matter because getting to an answer doesn’t change the fact that you still need to address the issue.”

For those of you who are still searching for answers, I encourage you to not think too hard about it. The fact of the matter is that the Great Recession changed everything. Economists, politicians and newscasters have taken to using the phrase “The New Normal” to describe things in our communities that look-act-behave differently now than they did before the stock market tanked in 2008. Let’s face it . . . things are different and it impacts donor behavior.

In my opinion, the answer is simple and right under our noses. Take a step back and look at your own philanthropy.

Before the recession, my partner and I were making contributions (of various sizes and shapes) to 12 or more non-profits both locally and nationally. Some of those agencies were near and dear to our hearts, and others just got lucky because they asked us on the right day at the right time.

After the recession, the number of organizations we support has dropped. You might think that it is because of limited money, fear of market forces and other recession-related issues. While this may be somewhat true, none of these reasons are even close to the big reason. If we were playing The Family Feud, Richard Dawson would shout out . . . “Survey Says?” and the number one answer for me (and I trustthink millions of other donors) would be:

TRUST

In most cases, my partner and I eliminated our support of those non-profit organizations where we didn’t have a personal connection. We support agencies where we:

  • know a staff person
  • know a board member
  • know a friend who is passionate about their mission

In those instances, we TRUST that our contribution will be used in the manner they said it would be used. We TRUST the outcomes and impact they claim to achieve in their case for support is factual. We TRUST that we’ll be kept in the loop (aka stewardship) on how things are going either through traditional means (e.g. newsletters, eBlasts, etc) or through informal means (e.g. word of mouth from that staff person, board member or friend). Hopefully both!

What replaces “Spray and Pray”?

In order to build trust, you need to become more personal in every aspect of your fundraising program:

  • Your cultivation efforts need to focus on pressing the flesh. Get prospective donors in your door and touring your facilities and programs.
  • Your solicitation efforts need to focus on two things: 1) matching the right solicitor with the right donor based upon their personal relationship and 2) making the ask in-person with the right case for support themes that resonate with that donor.
  • Your stewardship efforts need to focus on a multi-channel approach — mail, phone and in-person. Just sending newsletters isn’t enough anymore.

I am sure that some of you are overwhelmed by these suggestions because you have thousands of donors and limited resources. To those of you who might be shaking your heads and clinging to your spray and pray strategies, I have two things to say to you:

  1. Evolve or die! Welcome to “The New Normal” . . . you need change because someone has “moved your cheese“.
  2. Use your donor database! Technology is amazing and you should have the ability to segment your donor list. You may not be able to become personal with thousands of donors, but your Top 10, Top 100 or Top 250 donors are super important to you and a little bit of focus can go a long way.

What has been your organization’s experience lately with spray and pray fundraising strategies? What have you done to adapt? Have certain strategies worked better than others? Please share your thoughts and experiences 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

Non-profits must be careful with cause-related marketing

cause marketingEarlier in the year, I wrote a post titled “Bad cause-related marketing is offensive“. It was inspired by an incident when I was solicited at a cash register and the employee couldn’t tell me the first thing about the charity. They couldn’t even point me to a kiosk or brochure containing more information. A few weeks ago, I was confronted by a different situation that evoked a similar reaction and reinforced my strong belief that your agency needs to be careful (and diligent) when entering into cause-related marketing arrangements.

I’ve been playing chicken with my website provider recently. They’ve been sending me weekly reminders that I need to give them more money because their service will expire in two months. I’ve been really busy lately . . . so I’ve been ignoring and deleting those email reminders. However, they caught me in the right place at the right time a few weeks ago, and I ended up clicking through and renewing my agreement with them.

When I clicked the check-out button, they asked me if I wanted to “round-up my fee to the nearest dollar and donate that pocket change to  one of three charities they’ve partnered with“.

Unfortunately, I was going too fast and what I read versus what I “thought I read” was two very different things.

round up for charityThey wanted me to round my total up to the nearest dollar. What I thought I had read was that they would donate (out of their pocket) the amount of the rounded sum.  (You can see the screenshots of the information they provided me to the right of this paragraph)

Oooooops!

The first thing that came to mind was Ben Franklin who famously said, “Haste makes waste.”

The second thing that came to mind was “Hey, wait a minute! That was vague and some people might even think a little deceptive. Moreover, who are these charities and how can I find out more about them?”

Needless to say, I started having a deja vu moment and finally realized that I blogged about this many months ago.

Bad cause-related marketing can have a negative impact on your brand. So, I have three simple requests of those of you reading today’s post:

  1. Please go back and read my previous post. It has some nice links to Joanne Fritz’s post on this subject, and hopefully it raises some thought-provoking discussions around your resource development committee table.
  2. Click here or on the Cause Marketing for Dummies graphic at the beginning of this post. I am a big fan of people who commit themselves to becoming a “lifelong learner“. Consider purchasing and reading the book if your agency is even giving a little consideration to jumping into a cause-related marketing venture.
  3. Read the few questions that I pose at the end of this post. Then scroll down and share a few thoughts with your fellow fundraising professionals. Why? Because we can all learn from each other!

Has your agency played around with any cause related marketing efforts? If so, what did you do? More importantly, what did you learn? What would you do differently?

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

Let’s talk about your organization’s LinkedIn group page

linkedin2I use LinkedIn. It is one the social media platforms I am on almost every day, which is probably the reason I was asked to manage the LinkedIn group page for a fundraising professionals organization where I’m a member. At first, I was happy to do it. After all, I’m on LinkedIn every day. Right? However, after a few months of being the volunteer community manager, I am left wondering: “What in the heck are we trying to accomplish with this group page?

Of course, this got me wondering how many non-profit organizations find themselves in the same situation? So, I logged into my LinkedIn account and surfed around to a handful of group pages of agencies I follow. What I found was similar to the page I manage . . . a handful of followers and very little activity.

So, I thought it might be helpful to share a few thoughts and suggestions based on my limited experience with this project. Hopefully, you will also weigh-in with your thoughts and experiences using the comment box below. Why? Because we can all learn from each other.  🙂

Target audience

linkedin1Your agency’s LinkedIn group page isn’t like your website. You shouldn’t treat it like a landing-place for all kinds of different stakeholder groups. The best group pages I’ve seen have an obvious target audience with whom they are speaking.

The Chronicle of Philanthropy has a page. It is “For Members Only,” which simply means that you need to ask to join and get approval from the person managing the page. I presume this decision was made because: 1) people like to “belong” to things and the more exclusive the better, 2) the Chronicle is probably trying to protect group members from businesses and spammers targeting fundraising professionals, and 3) they are deliberating focusing on developing a “target audience“.

The Boys & Girls Clubs of the Midlands’ LinkedIn page is simple. While I can’t be sure, it certainly seems like their target audience is their employees. I can see a number of reasons why a non-profit agency would want to create a virtual space for its employees including: 1) ease of communication, 2) sharing of work ideas and best practices, and 3) creating a sense of community and family.

Who is your target audience? This really needs to be the first question you answer because it will drive every other decision you make with regards to your agency’s LinkedIn page.

Content is KING

contentI don’t care if you are managing a blog, Facebook page, Twitter account or a LinkedIn group. Content is ALWAYS the key to success and engagement.

When it comes to your LinkedIn group, here are a few suggestions with regards to creating content (e.g. creating a purpose for people to belong to your group):

  1. Be Mike Myers on SNL’s Coffee Talk sketch. Post a weekly discussion topic or question of the week.
  2. Find blogs that might interest your members and post links to those sites.
  3. Identify subjects that will be interesting and create a poll.
  4. Use the group site to share information (e.g. webinars, meetings dates/times, etc)

Commit yourself to learning

linkedin3There is so much more to learn about managing a LinkedIn group (e.g. group policies, promotion, etc). It is impossible to cram everything into one blog post.

If you plan on undertaking the job of creating or managing your agency’s LinkedIn group, I suggest setting aside an hour per week where you can just click around and read more from others on best practices. While you’re reading, I urge you to jump into conversations and discussions on blogs by sharing your experiences and asking questions.

Here are a few places you may want to get started:

So, does your agency have a LinkedIn group page? Are you thinking about starting one? Please scroll down and use the comment box to share your thoughts, questions, best practices, strategies, ideas, etc.

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