planning – Page 9 – The Healthy Non-Profit

Welcome to a new philanthropic era: The Age of Women Power!

December 2, 2011 DonorDreams Board development, Fundraising, Planning, volunteers

I used to jokingly say to various board members at my former agency that if our non-profit needed to get something done (e.g. organize a special event, put together a strategic plan, etc), then we should recruit a bunch of women to help us do it. I’d usually finish making my point by saying, if you want to talk an issue to death and get nothing done, then put a bunch of men in the room. (Note to readers: Whenever I said this it was always said “tongue in cheek” and I was kidding. Of course, I was only kidding slightly because I think there is some truth to it.)

I share this story today because my good friend, Boys & Girls Club of Oshkosh Development Coordinator Anne Lemke, sent me a fabulous email a few days ago about “What Women Want” which is whitepaper written by Katherine Swank from Target Analytics, a Blackbaud Company. After reading the paper, I just could resist sharing a few of the highlights with you today:

nearly half of the top wealth-holders in the United States are women,
women have increased their combined wealth by more than fifty percent in the last 10-years, and
women have a net worth of over $6 trillion.

Katherine does a masterful job of profiling what an affluent woman looks like. I suggest you read the whitepaper and burn that picture into your head because it is surprising. In fact, you probably know a number of women who fit the profile. Having this profile picture burned into your non-profit brain is important because as Katherine says so perfectly:

“Affluent women may also be identified by their willingness to both donate and volunteer at higher levels than their male counterparts. Women, on average, donate twice as much to charity and make three times the number of donations as men.”

So, some of you might be reading this post and thinking to yourself: “OK, I just need to start asking women for money and I’ll be fine.” If this is what you’re hearing me say, then please stop yourself! The reality is that women are different from men, and you’ll need to change your resource development strategies and tactics if you are going to appeal to this very powerful donor segment. Again, Katherine puts it best when she said:

“While I can’t claim to know what all women want in every situation, over twenty-five years in philanthropy has taught me that what women want is simple: to be asked their opinion and for their answers to be listened to and acted upon. They seek equality in the workplace, an ever-equal sharing of the ‘load’ from their male partners and counterparts, and to make the world a better place, both close to home and halfway around the world. Elementally, women want their lives to make a difference in the lives of others. To accomplish this through philanthropy makes women feel empowered.”

Translated into language men might understand better: “You need to cultivate, solicit and steward women different from.” Oh heck, who am I kidding . . . let me translate this even more clearly for my non-profit male friends out there: “Go hire and recruit some women to help you with this incredible important and transformational shift that your non-profit agency needs to make.”

I suspect this trend will change more than just your agency’s approach to resource development. It will also likely affect your board development, marketing, and volunteer recruitment & management efforts. Right?

Oh yeah . . . go download Katherine’s whitepaper and read it. Click here to get your copy. It really is a great read!

So, what are your thoughts? Are you already seeing this philanthropic trend in your community? How are you responding to it? Have you addressed it in your strategic plan or resource development plan? If so, how?

Please take a quick moment and share your thoughts using the comment box below. After all, 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
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Taking a page out of NPR’s playbook

November 29, 2011 DonorDreams Fundraising, Planning

In my hometown of Elgin, Illinois, there have been a number of sleepless nights for non-profit organizations whose revenue model is heavily dependent on government funding. The economy and housing bubble caught up with the city, and now there are projected budget deficits. As you can imagine, non-profit funding is on the proposed chopping block. All of this is compounded by the fact that we live in Illinois, which by most accounts has one of the worst state budget problems in the country. So, state funding has also been on the retreat for years.

I’ve been saying for years to all of my non-profit friends who would listen: “the government funding gravy train is coming to a halt . . . get out and get out NOW.”

Usually this dramatic plea has been met with nods of agreement, then shoulder shrugs, and finally questions around “how to”.

Yesterday’s blog post about non-profit benchmarking titled “What Gets Measured Gets Done” got me thinking and wondering: has anyone ever done this before, and if so, do they have a roadmap that others can duplicate?

It didn’t take long for me to find an answer, and it was there in front of me all along. National Public Radio (NPR) was founded in 1970. It was heavily and almost exclusively government funding supported through much of the 1970s and 1980s. Today it receives less than 10-percent of its revenue from the federal government.

From what I can tell, it didn’t happen overnight but it seems to have occurred quickly after a funding crisis in 1983.

It shouldn’t surprise anyone that NPR turned to individuals as a cornerstone to their strategy. After all, more than three-quarters of all charitable giving in America comes from individuals.

So, there you go . . . it is a roadmap! It might not be an easy road, but it has been done before, and it is possible to transform your revenue model. Here are just a few quick suggestions for those of you who are interested in taking the next few steps:

Tune into NPR and start listening. While tuning in for the programming can be fun and delightful, I especially recommend listening during the pledge drive. Bring your notepad and pencil because there are lots of notes to take. NPR does one of the best jobs I’ve seen with their pledge drive. They employ best practices effortlessly. We can all learn a lot if we just listen and watch.
Consider making a pledge. I made my first pledge to NPR in 1998 during the Clinton impeachment trial. After making that small contribution, the stewardship stuff and communications I received from them was amazing and almost felt like drinking out of a fire hose. They do a nice job with stewardship. It was the best $25 I’ve ever spent in my life, and it was cheaper than most trainings.
Go check-out their cyber presence. Review their website. Follow them on Twitter. Like them on Facebook. Subscribe to a few of their blogs. Then sit back and watch them masterfully use social media and the internet to cross promote content and communicate with their clients who are also their donors.

Obviously, NPR’s plan can’t be exactly duplicated for a number of reasons. However, it is a good place to start. Please note that the aforementioned bullet points can all be done today and only focus on listening, observing and fact gathering. This is, after all, the essence of benchmarking. There will be lots of action and work on the road ahead, but for now it is important to do your homework and engage your volunteers with both the benchmarking and planning efforts.

How does your agency plan on adjusting its revenue model? What is your strategy? Are you benchmarking yet, and if so who are you studying?

Please use the comment box below to answer these questions and share your thoughts with the rest of us. It only takes a minute and you feel good inside when you do so. Why do it . . . because we can all learn from each other!

Here’s to your health!

What gets measured gets done!

November 28, 2011 DonorDreams Fundraising, Uncategorized

The turkey was no sooner packed away in its Tupperware containers and Americans were running out their front doors to cash-in on Black Friday sales and promotions. In fact, according to early projections, this Black Friday was a record-setting day with more cash finding its way into cash registers and more feet stampeding through the malls than ever before “on the same day”.

When I read this, the phrase that jumped out at me was: “over the same day last year”. It caught my attention because it was used in every article I read about this year’s Black Friday phenomenon. There was something that bothered me greatly about this phrase, and it wasn’t until my long drive home on Saturday and Sunday from my Thanksgiving travels that it finally dawned on me.

This phrase is powerful because it represents an industry’s commitment to measurement and benchmarking, and it isn’t a phrase that you hear many non-profit organizations using. Sure . . . you hear non-profit folks say things like “the campaign will exceed last year’s amount raised” or “event revenue is down compared to last year”. However, you almost never hear non-profit folks say things like:

Our agency’s philanthropic contributions are 6.1-percent higher than they were for the same period last year, which is perfectly in line with industry trends for non-profit’s our size.

While I am not sure why we don’t hear this more from our charity’s of choice, I am certain it isn’t because of a lack of information. I can confidently say this because at the bottom of my new website’s homepage I link to Blackbaud’s “Index of Charitable Giving”. This is one of the best things Blackbaud has ever done for the non-profit sector. The service is a broad-based fundraising index that reports total giving trends of 1,319 nonprofit organizations representing $2.3 billion in yearly giving on a monthly basis.

Here are just a few ideas that you might consider using this number to make your agency stronger:

Measure your fundraising performance against similar sized agencies. Share this comparative information with your resource development committee and use it to spark engaging conversations around “WHY”. You may be surprised where you end up.
Measure your fundraising performance against the same time period last year. Use this baseline data during your agency’s annual resource development planning efforts. It might spark engaging conversations and help make good adjustments to next year’s fundraising plan.
Use the benchmarking and baseline data during year-end reviews with agency staff who have resource development responsibilities (including non-profit CEOs). I guarantee board volunteers asking why the agency failed to keep pace with or greatly exceeded the industry’s pace during a year-end evaluation will spark engaging conversations.
Publish in your agency’s newsletters, website and impact reports how well your fundraising efforts did compared to other similar sized organizations compared to the same time last year. I guarantee that being transparent with this information will spark engaging conversations.

I can almost hear some folks saying that it doesn’t make sense to compare their agency with a national index because their community is so “unique” (kind of like a unicorn). To those of you whose minds are already there, I have two things to say:

Poppycock!
If you must have it your way, there is nothing stopping you from pulling a few non-profits in your “unique community” together and sharing data every quarter in the spirit of benchmarking and measurement.

It has been said by many different people over the centuries: “What gets measured, gets done!”

So, let me end by asking you: What are you measuring at your non-profit organization? Please use the comment box below to share what you’re measuring and how you are using that information. We can all learn from each other.

Here’s to your health!

Does your non-profit have a soul?

November 22, 2011 DonorDreams Uncategorized

A few weeks ago I facilitated a values exercise for an organization that is in the process of trying to build a powerful and functional new team. After the exercise (which was contentious but very productive), some of the feedback I received from participants as well as others is that a values discussion is just one big waste of time.

I made a conscious decision to hear thes folks and not respond immediately. I wanted to marinade on it for a few weeks. Well, I’m done soaking and I am ready to confidently say “Organizational values are NOT a joke!”

Don’t believe me? You don’t have to . . . just listen to Jim Kouzes and Barry Posner who stated the following in their book “The Leadership Challenge“:

“Shared values make an enormous difference to organizational and personal vitality. Research confirms that firms with strong corporate culture based on a foundation of shared values outperform other firms by a huge margin. Their revenue grew 4-times fast; their rate of job creation was 7-times higher; their stock price grew 12-times faster; and their profit performance was 750-percent higher.”

Before your non-profit organization can craft of vision of who it wants to be, it must address the values questions. The reasons for this are well laid out in Stephen Fairley and Bill Zipp’s book “The Business Coaching Toolkit“. Here are three reasons they believe this to be true:

Values give your people a cause to life for instead of just a job to do.
Values give your associates principles to apply instead of just policies to enforce.
Values produce leaders with relational authority and not just positional authority.

Still don’t believe me? OK . . . think about a time that you weren’t living your life in alignment with your personal values. For example, you might value something like “balance” because your family is very important to you, but the demands on your time at work forces you to make decisions that don’t allow for “balance” in your life. How does living out of alignment with your values make you feel? I suspect there is tension and pressure.

Now take this example and extrapolate it to the people you work with, the donors who contribute to you, and the board volunteers who serve selflessly with you.

As part of your organization’s next strategic planning initiative, I encourage you to start with mission-focus and before you transition to talk about “organizational vision” facilitate a collaborative discussion with all stakeholder groups around organizational values.

I promise you won’t be disappointed. You will find that your organizational values act as a catalyst for all kinds of things and refocuses your hiring decisions, recruitment decisions and can even affect how you solicit and steward donors.

Does your organization have values? Are they real or just something plastic? How do you see your agency using its values? When they developed those values did they include donors in that discussion? Please use the comment box to share your thoughts. We can all learn from each other.

Here is to your health!

Working for boards is tough stuff

November 17, 2011 DonorDreams Board development

We all have friends who work for bosses who are absolute nightmares. As a matter of fact, I was on a business trip a few months ago driving in my rental car listening to a call-in radio program all about horrible boss stories. While I sympathize with friends in those situations, I can honestly say they have no idea what real workplace pain is like until they’ve had to work for a cantankerous non-profit board of directors.

I believe in my heart of hearts that working for a board has got to be one of the most difficult things I’ve ever had to do in my life. Here are just a few reasons I’ve come to this conclusion:

If a board has 15 members, then the non-profit CEO is working for 15 different people.
15 different board volunteers have 15 different personalities.
15 different board volunteers can have 15 different ways of wanting to do something.
Have you ever tried to appease 15 different egos? OMG

Don’t get me wrong . . . working directly for a board has also yielded some of the best experiences in my life. However, I’ve seen too many of my non-profit friends reduced to a puddle of tears recently as a result of “politics” in the board room and “personal agendas” run amok.

So what is the solution? Where is the silver bullet? What can a non-profit professional do to make working with a board of directors less difficult?

Let me start by saying: not everyone is cut out for this kind of work. So, get your feet wet early in your career possibly by helping your agency’s CEO with a board project. Take this time to assess whether or not you like it not. If it doesn’t feel right, then chalk it up to a learning experience and decline future opportunities to interview for non-profit executive leadership jobs.

If you currently sit in the big chair and are looking for tips on how to work with boards more effectively, then here are just a few quick thoughts:

Get in front of your board volunteers regularly. If you are just seeing your board members at monthly board meetings, then you’re doing yourself a tremendous disservice. Set a goal of being in front of every board member at least once in between board meetings (and I go back on forth on whether or not committee meetings count). During these meetings, do more listening than you do talking. Gandhi told us to be the change we want to see in the world. So, if you want the board to listen to you, then you better listen to them.
Respect boundaries. Too many of us want to befriend our board members, and I think this blurs boundaries. These people are your boss. Being social is one thing, but partying all night with them might cross a line. Establishing boundaries is tough stuff, but they always need to see you as a classy professional. These people can become part of your “extended non-profit family,” but never forget how dysfunctional families can get. Are you sure you want to bring “dysfunction” into your employment situation? Carefully thinking through boundaries makes a lot of sense to me and it will probably look different for each of you.
Use planning tools to build consensus. There is nothing more challenging than having to work with 15 people who have 15 different ideas about how to do something. So, a good non-profit leader needs to possess “consensus building” and “facilitating” skill sets. If these are things they are good at doing, then their leadership toolbox needs to include planning strategies and tactics. Guiding a divided board through a strategic planning, resource development planning or marketing plan process can produce consensus and direction. Ahhhhh . . . happy days!
Get serious about every part of your board development process. Approach board building like you would a chemistry experiment.

What do you believe is the most difficult thing about working for a board of directors? What strategies do you use to help make this a little easier?

Please share your thoughts using the comment box below because we can all learn from each other.

Here is to your health!

All non-profits are Penn State?

November 14, 2011 DonorDreams Board development, Fundraising, Planning

It has been a week since the Penn State child rape scandal broke, and I’ve been stewing in my emotions like most of you. There are so many aspects to this story, and it never dawned on me that any of these many storylines fit within the context of this non-profit blog until I read this quote from Moody’s in Forbes on Friday:

“Over the next several months, Moody’s will evaluate the potential scope of reputational and financial risk arising from these events. While the full impact of these increased risks will only unfold over a period of years, we will also assess the degree of near and medium term risks to determine whether to downgrade the current Aa1 rating. We will monitor possible emerging risks emanating from potential lawsuits/settlements, weaker student demand, declines in philanthropic support, changes in state relationship and significant management or governance changes.”

OMG . . . this story is so big that it blinded me to the fact that Penn State is a non-profit organization belonging to the higher education portion of the sector. Once this realization hit me, I saw the story from a whole different perspective. Here are some of the thoughts that ran through my head:

I wonder what it must be like for a board volunteer to sit on that board right now with all that liability hang over the university’s head?
I wonder what the fundraising professionals must be doing to prepare for and mitigate the impact this scandal will likely have on its resource development program?
I wonder what university staff must be doing to minimize the impact this scandal will likely have on volunteer, booster and alumni program recruiting?
How does a scandal like this affect the university’s strategic plan, and what are they doing to adjust their plans and factor in this new head wind?
How much money will this scandal cost the university in lawsuits, increased insurance premiums, philanthropic losses and an adjusted bond rating?

After processing all of these questions, it dawned on me that ALL NON-PROFIT ORGANIZATIONS ARE PENN STATE and this is a “clarion call” for all non-profit agencies to take action immediate!

Take action? Huh? What are you talking about Erik?

Regardless of how big or small your agency is, this scandal should strongly motivate you and your board to immediately take action on development of a crisis management plan. No one ever thinks that tragedy will strike. It is always something that happens to other non-profit organizations. And when it happens your world changes in a blink of an eye.

Penn State administration didn’t see this coming. One day they were on top of the non-profit world, and in a flash they are looking at a financial catastrophe (not to mention the human collateral damage done by the action and inaction of just a few men).

The non-profit organizations in Joplin, Missouri couldn’t have predicted a devastating tornado. One day their agency was there, and the next day they were gone.

The non-profit sector is naturally chaotic because most agencies are under-resourced. One person is typically asked to do multiple jobs. There never seems to be enough time to do those necessary capacity building things like preparing for future crisis. In a word, most non-profits are “reactive” and not “proactive,” which is typically our undoing when disaster strikes. So, take a moment to ask yourself these questions:

Is my agency’s Director & Officer insurance up-to-date? When is the last time we looked at whether or not we have enough coverage?
Who is our organization’s spokesperson in the event of a crisis?
Do we have a “crisis team” that can be activated in the event of tragedy? Are there a diversity of people on that team (e.g. lawyer, psychologist, PR professional, board members, staff, etc)? Do they know they’re on that team? When is the last time this group went through an orientation looking at the “what if” types of questions?
When is the last time staff reviewed your agency’s disaster contingency plans? Do you even have those plans in writing?

I encourage you to read this great blog post by Joanne Fritz at about.com titled “Top 5 Tips for Effective Nonprofit Crisis Planning“. It is a good to place to start as you use this national news story to motivate your board of directors to take action around developing a plan and putting systems in place to deal with whatever lurks ahead for you on the path of life.

Look at it this way . . . developing a crisis management plan could be a great cultivation or stewardship opportunity for certain fundraising prospects or existing donors to your organization.

If you look at this project as “one more thing that you don’t have time to do,” then it will be a burden and likely something that sinks to the bottom of your task list. If you look at it as an opportunity, then I suspect good things will happen for you and your agency.

Does your agency have a written plan? What is in that plan? How often do you review that plan? Is your plan posted online? If so, would you share that hyperlink with other readers of this blog so they can see a sample?

Please take a moment to answer one or more of these questions using the comment box below. It will only take a minute or two out of your very busy schedule and it could make a difference for another agency. If you don’t have time to comment, then click the forward button on your email and send this post to another non-profit professional who you care about and tell them that it isn’t too late to prepare for the apocalypse. After all, we can all all learn from each other.

Here is to your health!

Magic words? Be ‘transparent’ and ask to be held ‘accountable’

November 4, 2011 DonorDreams nonprofit, Planning

When I think of non-profit organizations who embark upon a strategic planning process, I usually get a mental picture of Toy Story’s Buzz Lightyear standing on that bed post proclaiming “To infinity and beyond!” However, in my experience, many non-profit organizations jump and their results are not nearly as good.

What I am referring to is the phenomenon of: engaging stakeholders . . . building consensus around vision/goals/objectives/action steps . . . writing the plan . . . approving the plan . . . putting the plan on the shelf and letting it die a dusty death.

So, the question being begged here is: “What do non-profits leaders (board and staff) need to do in order to bring their plans to life and avoid that ‘dusty death’?”

The simple and straightforward answer can be captured in two words:

Transparency

and

Accountability

In a nutshell, “transparency” means that everyone can see your plan including: who has agreed to what, where, when, why and how. “Accountability” means that everyone can see your measurement indicators and how well (or not so well) you are doing at accomplishing the various aspects of your plan.

I love what my college alma mater — University of Illinois Urbana-Champaign — has done in the area of transparency with their strategic plan. Click here to check out how they’ve put everything on the internet for alumni, faculty, students, parents of students, residents of Urbana and Champaign, and especially donors to view.

I also like what Binghamton University did in the area of accountability with their online strategic planning dashboard. Click here to see that dashboard tool.

So, if you find yourself saying “Well, those are large university institutions and we’re different and unique,” let me help you bring these ideas into focus for your unique situation. The following is a short list of questions I encourage you to ask yourself about your specific non-profit situation:

Do I want my plans to be implemented or do I want them to sit on the shelf and collect dust?
Do I need other people to help with plan implementation or am I OK with doing it all myself?
Do the donors who support my organization deserve to see how well (or not well) we are doing with implementing the plan they helped create and pay for?

If you answered “YES” to these questions, then I encourage you to pull that dusty plan off the shelf, identify the measurements and indicators you likely built into the plan, and invest in creating tools like dashboard or scorecards that easily communicate implementation progress (or hire someone who knows how to do it . . . aka an external consultant). Once that tool is developed, post it online and integrate it into all of your committee and board meetings. To quote a number of very famous people who all take credit for this expression:

“What gets measured, gets done!”

These ideas don’t just apply to strategic planning. You can employ the ideas of accountability and transparency to your resource development plan, annual campaign plan, marketing plan, business plan, etc etc etc.

There is a whole flip side to this blog post pertaining to “measuring the right things to get the right results,” but let’s save that discussion for another time.

What is stopping your agency from being bold and asking donors to hold you accountable for achieving your plans? How do you share your currently organizational progress with your donors, supporters and board volunteers? Can you use the comment box below to share examples of how you are transparent and ask others to hold you accountable? If you use online resources to accomplish these objectives, would you please include links to those examples in your comment so we can all see it?

Please take 30 seconds to weigh-in with a comment. We can and should all learn from each other.

Here is to your health!

Calling all wing nuts! Want to join my board of directors?

November 2, 2011 DonorDreams Board development, volunteers

A few weeks ago I received an odd email in my inbox. It was so foreign to me that I marked it “unopened” and let it sit there as I marinated on it. It wasn’t until just today that I felt willing to re-open it and share its contents with you. Here is how the first paragraph of this jarring email started (and I’ve changed the names to protect the innocent):

The board of directors of the XYZ non-profit agency is looking for leaders to help drive our further development. If interested, please contact John Doe, Board Secretary jdoe@gmail.com to receive an application /board questionnaire which is due by November 4, 2011; for terms that will run from January 1, 2012, through December 31, 2013 (2-year term limits).

The email went on to provide details about this organization’s goals and advertise its upcoming conference in downtown Chicago.

At first, I was flattered to be asked and then I realized that it was a eBlast and I was not special. So, I closed the email and went into “stewing mode” and here is what has been coming together in my head over the last few weeks:

Why is there a “general call for applications”? Why not target supporters and donors?
How did I get on this email list in the first place?
How desperate must this group be for quality board members?
Can they possibly learn enough about me from a paper application that would help them conclude whether or not I’d be a quality board member?

While many people will tell you there is a right way for a non-profit organization to set-up its board development process, I know that I’ve seen many different variations throughout the years. However, every process regardless of how it is set-up should probably include elements of the following: prospect identification, prospect evaluation, prospect ranking, prospect recruiting, orientation, training, annual evaluation, and celebration/recognition. There are many different ways to do each of these steps, and I suppose a “general cattle call” could be one way. Needless to say, I am skeptical.

Building your non-profit organization’s board of directors is like building a family. Perhaps, a better analogy would be it is like baking a soufflé. You need to be deliberate and careful. Here are just a few considerations I suggest your board development committee look at during the prospecting phase:

What does the prospect’s social network look like? Does it overlap too much with existing board volunteer’s circle of friends and influence?
Does the prospect’s network provide fertile ground for new fundraising efforts and provide opportunity for the organization to expand its donor base?
Does the prospect have the skill sets and experiences that you are looking for to fill gaps on your board to be an effective fundraisers?
Is the prospect a “wing nut” whose personality will upset the balance of personalities who already sit around your board room table?
What general skills sets and interests does this person bring to the table? How are they willing to leverage those things on behalf of the organization? What committee, task force or project(s) will the prospect bring value and are they willing to do so?
Is the prospect a donor? If not, are they willing to be a donor who is open-minded to “sacrificial giving” every year to your organization?
How many other boards does the prospect serve on? If they have other board commitments, do they have a firm grasp on the concepts of “fiduciary responsibility” and “conflict of interest”? How do they plan on mitigating their conflicts and how have they done so in the past?

If you’re not careful from the very beginning of your board development process with identification, evaluation, and ranking, then you run the very real risk of your board soufflé falling. In real world terms, this typically means dysfunction and the worst case scenario using ends with some sort of board room conflict (with “someone” possibly getting fired).

If you want to read more about board development, please read my recent blog post titled: “Don’t put Dorothy on your board of directors“.

What does your non-profit organization’s board development process look like? How do you keep the conversation from naturally drifting to: “I know this person who would just be great on our board. Let’s just go ask them before someone else grabs them!”? Do you use a committee to do your board development work? If so, what does that committee look like? What are your thoughts about the aforementioned non-profit’s “cattle call” application process? Are you skeptical like me or am I missing something?

It only takes 30 seconds to scroll down your computer screen and weigh-in with a quick comment to one of these questions. Please take a moment to do so because we can and should all learn from each other.

Here is to your health!

Are you King of your nonprofit forest?

October 25, 2011 DonorDreams Board development, Fundraising, Planning, volunteers

As 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:

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.
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 tot hose 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 executuve director. Vive Le France!
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.
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!
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!

Huh? Fundraising zombie volunteers cost money?

October 20, 2011 DonorDreams Fundraising, volunteers

As most of you know, I’ve been talking this week about the City of Elgin’s upcoming Nightmare on Chicago Street special event and the role that area non-profits have been asked to play. While I won’t re-hash the story for you here, I encourage you to go back and read Monday’s post titled “Beware of Fundraising Zombies” and yesterday’s post titled “Fundraising zombies ‘doing the math’.” These posts along with what I write today focus on special events and how non-profits need to be especially careful about measuring “return on investment” (ROI) and thinking through how many events are too many.

So, while emailing back and forth with a very smart and dear friend of mine yesterday about this topic, they said:

“Come-on, Erik! What is the big deal with non-profits recruiting some of their volunteers to help the city out with their day-of-event operations? Sure, the ROI is poor, but there really isn’t any cost related to doing this. Right?”

As you’ve guessed, my response was “No, you’re wrong. There is a cost that no one is considering.” and thus the final chapter of my zombie fundraising posts was born. Here is the explanation:

When a person agrees to volunteer, they are making a contribution of time to that particular non-profit agency. Right?
Most people consider “gifts of time” to be more valuable than their “gifts of money”. I’ve heard people say this often, and I know you have, too.
There are studies that show the “value of a volunteer’s time” is calculated to be $21.36 per hour. Don’t believe me? Click here to see the research for yourself.
The cost for a non-profit organization to build the necessary infrastructure to run a volunteer management program is calculated to be $300 per volunteer per year according to a study by Pubic/Private Ventures titled “Making the Most of Volunteers”. For some organizations like Big Brothers Big Sisters, these costs go up to $1,000 per mentoring match. Click here to review the evidence yourself.
In my experience, a person’s volunteer hours are not an endless pool that non-profits can keep tapping over and over again. While it isn’t set firmly in concrete, most people have a limit to how much time they are willing to give. If you follow this logic, then recruiting a volunteer to work the zombie event means the non-profit is possibly forgoing future “contributions of time” from those volunteers for the charity’s projects back home.
Applying the concepts of ROI and “opportunity cost” that were discussed in yesterday’s blog post, let’s look at this entire thing from a different angle. Each charity receives 100 tickets that they sell for $5.00 each, resulting in $500 gross income. Let’s just say a participating non-profit recruits FIVE VOLUNTEERS who each contribute FIVE HOURS on the day of event. To put this into financial terms . . . 5 volunteers multiplied by 5 hours each and then multiplied by $21.36 per hour equals $536.00. This doesn’t even include allocating the costs associated with maintaining the agency’s volunteer management infrastructure. It also doesn’t include the time associated with ticket selling if the agency asked volunteers to help sell its share of tickets to this event.

Drumroll please? My conclusion here is that non-profit agency gross $500 in ticket sales, but invest $536.00 of volunteer time as part of this special event collaboration. While I won’t go so far as to say the agency just lost $36.00 (even though I am really tempted to draw that conclusion), I think you can agree that this investment is looking less attractive by the second. Right?

Let me just be clear. I support this event and think everyone should attend. Who can’t agree that zombies and Halloween are fun. For the third time this week, I am encouraging everyone to buy their tickets at the door. By doing so, you’ll send a message to your favorite non-profit organization that you love them and won’t support this kind of counterintuitive fundraising behavior.

Let me doubly clear. I don’t think the City of Elgin is trying to hurt the non-profit sector. I know that this idea of involving non-profits in revenue sharing for this event was borne out of the desire to be collaborative and helpful during tough economic times. Additionally, it is the city’s economic development mission to drive foot traffic downtown to benefit its downtown merchants. This event should do exactly that, which is why I tip my hat to the city for trying to do “something”.

All I am saying is that non-profit organizations need to start looking at fundraising in a different light because their decision-making on these issues can and does have a real impact. Everyone — including the non-profit agencies, the city, donors, agency staff and bord volunteers — plays a role in doing this.

How does your non-profit organization evaluate its fundraising and resource development activities to ensure what you’re doing makes sense? Do you have a real and engaged resource development committee? What does that committee do? What efforts and considerations go into creating your agency’s annual written resource development plan? Do you have one? What does it look like? How much of these activities are ‘put on staff’ compared to collaborating with board volunteers, fundraising volunteers and donors to help find these hidden facts and answers?

There has been decent activity over the last few days with regards to usage of the “comment box” for this blog. Let’s keep up that awesome effort. It will take you less than 30-seconds to type your thoughts into the comment box below. Please do so because we can all learn from each other!

Here is to your health! (And I hope this will be the last zombie inspired post for a while . . . Have a Happy Halloween! In the spirit of Halloween fun, my gift to you is this YouTube video of President George W. Bush talking about zombies. LOL Enjoy!)