resource development – Page 31 – The Healthy Non-Profit

Do your donors think the non-profit sky is falling?

December 12, 2012 erik Fundraising

chicken little2 When I hear one donor say something once, I chalk it up to something interesting. When I hear two donors say the same thing, I usually think it is an interesting occurence. However, when three or more donors express the same sentiment, I sit up . . . take notice . . . and treat it like a potential trend.

Since the Presidential election was decided more than a month ago, I’ve more than three donors say alarming things about the state of philanthropy in this country. Here is some of what I am hearing:

“Congress and the President won’t agree on the fiscal cliff negotiations. We’re going off the fiscal cliff, and charitable contributions will go down.”
“Obama wants to get rid of people’s charitable tax deductions, and this will result in a reduction in donations.”
“The Bush tax cuts on the wealthiest Americans will be allowed to expire, which means wealthy Americans will stop giving to charities.”
“Congress and the President will go off of the fiscal cliff. Everyone’s taxes will go up. Another recession will surely result, and charitable giving will dip as a result.”

I am not exaggerating. There are a number of donors and non-profit board members with whom I have spoken in the last month that think the sky is falling.

At first, I thought this talk was the result of Republican donors being unhappy about a Obama re-election. However, I’m beginning to re-think this original opinion. I honestly think people are getting scared.

There are multiple reasons for this hysteria and probably include a 24-hour media cycle, political rhetoric, etc. Regardless, the ‘WHY’ doesn’t matter . . . non-profit professionals need to focus on ‘WHAT’ they should be doing and saying.

chicken little1 While fear is irrational, it definitely impacts human behavior. I believe most students learn this in Psychology 101. So, if people “think” the sky is falling, it is falling regardless of the facts.

You can passively sit by and let your donors and board members whip themselves into a frenzy, or you can be a responsible non-profit professional and do something about it.

I have always believed that an “ounce of prevention is worth a pound of cure”. In this instance, I believe that good non-profit professionals will inject a calm and reassuring voice into any local discussion being had with board members or donors.

Of course, being calm and reassuring is easier said than done, and it requires a firm grasp of facts. Unfortunately, the facts shift and change and are subject to interpretation. However, I was very encouraged when I saw that BoardSource is hosting a webinar featuring Tim Delaney, CEO of the National Council of Nonprofits. He will speak to the issue of fiscal cliff, capping deductions, etc.

THIS WEBINAR IS SCHEDULED FOR TODAY (WEDNESDAY, DECEMBER 12, 2012) AT 2:30 PM CST, BUT IT LOOKS LIKE YOU CAN STILL REGISTER BY CLICKING HERE AND FOLLOWING THIS LINK.

Once you get some of the facts about the issues, you should feel more comfortable participating in these type of conversations when they come up with donors and volunteers.

chicken little3 Here are a few quick tips you may want to remember when jumping into these discussions:

Don’t express partisan opinions. Stick with the facts about what is being discussed. I encourage steering clear of expressing an opinion on what you think the impact will be. Put the crystal ball away!
Be reassuring and express confidence that these things always work themselves out in the end. History proves this to be true time-and-time-again.
Remind donors that tax considerations are rarely a motivating factor in most people’s charitable decisions. Donors give to good causes with good missions. Tax considerations (if they are even in the equation) are frequently a final factor and contribute to size of gift and rarely on whether or not to give.
No one can predict the future, and getting all worked up about something we can’t control is an exercise in futility. All we can control is our own actions .(e.g. who do we ask now, for how much as we asking, when are we asking, etc). Let’s remain focused so we don’t accidentally get swept up in something that doesn’t yet exist.

Are you hearing some of your donors and board members wring their hands over this policy debate in Washington D.C.? If so, what are you doing to make sure your year-end giving isn’t negatively impacts? Are you doing anything at all? Are you remaining silent?

If you end up attending the BoardSource webinar today, please circle back and share a few of the details in the comment box below. If you can’t attend, please weigh-in with your thoughts on the the questions I just posed or any of the ideas I just expressed.

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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http://www.linkedin.com/in/erikanderson847

Does your non-profit organization have policies about grant writing?

December 11, 2012 erik Fundraising, Planning

grant writing1 This morning I am asking for your help with a small project I am working on. A few weeks ago I agreed to help one of my favorite non-profit organizations with a staff transition. Not only did their development director move on to greener pastures at the end of the summer, but their executive director also recently resigned. So, the board asked me to step into the void and help their management team with a variety of year-end miscellaneous projects (e.g. year-end holiday mailing, 2013 budget construction, resource development plan, etc).

One of the projects with which I provide a little assistance is grant writing. I am part of the review team that proofreads, edits and asks questions before any proposal is allowed to go out the door. I am not the only person involved in this agency’s grant writing process . . . there is a grant writer (who is an independent contractor), a program/operations person and a board member. I kind of like the process they’ve designed. It feels comprehensive, responsible and serious.

The other day someone brought another grant opportunity to the team. It was a RFP that would’ve brought $2,000 in the door that wouldn’t have supplemented existing programming . . . it was an “add-on” proposition. Here is a list of questions that the grant writing team started asking itself:

Is this grant opportunity “budget relieving”?
Are the program costs totally off-set by the grant? Or will the $2,000 grant only partially cover the expenses of the add-on programming?
Are there other reasons (e.g. political, relationship building, etc) for the agency to consider writing this proposal?

Somewhere in the middle of this discussion, the board member blurted out the following really good question:

“How many more $2,000 grants are we going to write?”

ROI This question was inspired by a string of two or three grants in a row that this organization had just written. As a businessman, he asked this question because he is accustom to looking at everything through a “return on investment” (ROI) lens. In hindsight, this is what he saw:

The grant writer was putting in three to six hours researching and writing the proposal.
The program/operations person was putting in a few hours pull together outcomes data and proofreading the final proposal to make sure we weren’t over-promising anything.
The board member, who serves on the management team as the agency searches for a new executive director, is investing a few hours in proofreading and asking tough questions to ensure the organization isn’t over-promising and under-delivering. This is essentially the same role that the executive director would play if there was one on the payroll.
I was back stopping the entire process and doing some same.

WOW! It shouldn’t be a surprise after a few small grant writing opportunities he’d ask such a question.

Of course, this touched off an interesting conversation on many different fronts including a discussion about non-profit fundraising policies.

I promised the group that I would blog about this topic and ask the readership of DonorDreams blog for their best possible world-class coaching and advice.

So, I have a holiday season favor to ask each of you this morning:

Would you please take a minute or two out of your busy schedule this morning and use the comment box below to do one of the following two things?

share your agency’s grant writing policy/policies, or
share how your organization makes decisions on when to write or pass on a grant writing opportunity.

Seriously, your feedback this morning will directly help another organization in its pursuit of developing fundraising best practices. Your participation will take all of a minute or two this morning. Please weigh-in. Your collective wisdom is massive and will bring tremendous value to this organization’s discussion. You can consider the few minutes that you invest in responding to this request as your “good turn” this holiday season. Please pay it forward!

Here’s to your health!

‘Tis the season to put your non-profit organization’s shared values to use

December 4, 2012 erik leadership, volunteers

values1 For the last few weeks, I’ve found myself in a number of non-profit boardrooms talking to board volunteers about a variety of difficult subjects. These difficult conversations covered the following areas uncomfortable areas: staff reduction, re-organization, service reduction, radical revenue enhancement, board transformation, and so on. In each instance, it felt like a “soul-searching” discussion . . . very big and very weighty. I found myself wishing for a magic pill that I could dispense that would make their path forward a little less difficult.

As I poured my morning cup of coffee and wondered what I should blog about today, my mind wandered back to this same question, but this time it wasn’t a “magic pill” for which my sleepy head wished and dreamed. This time is was a tool that I could hand them. Something like a compass?!?! And then it came to me like a bolt of lightning.

A year ago, I wrote a post titled “Does your non-profit have a soul?” It was all about the importance of engaging your board, staff, clients, donors, volunteers and stakeholders in a “shared values” exercise. One of the quotes in that post that jumped back out at me this morning after my revelation at the coffee pot was from 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.”

values2 So, one organizations might find some comfort in their shared values of:

Care
Empathy
Sustainability
Success
Respect

While exercising these values when talking about difficult subject matter won’t make those issues disappear, it will likely bring clarity to the boardroom and help people relate better to each other. Right?

Another one of the organizations I am thinking of has the following values posted on the walls around their facility:

Believe
Inspire
Lead
Innovate

I close my eyes and imagine a boardroom discussion focused on questions such as “Where are we going to raise more money next year?” and “What short-term cuts can/should we make to balance the budget?” Those discussions look different when I overlay their values on those conversations. Right?

‘Tis the season for giving and charity. It is also that time of the year when non-profit boards struggle with big, weighty issues like budget and revenue strategies for next year. My best advice to all non-profit boards is to take another peek under the tree and unwrap that tiny present you placed there years ago when you went through your strategic planning process.

Contained in that small package is your agency’s shared values. Use them as they were intended . . . as a tool to frame discussions and a backdrop to make tough decisions.

It might be the best gift that you’ve given yourself in a very long time.

What are your organization’s shared values? How do you use them? Can you recall an instance when your values helped with a difficult discussion or decision? Please use the comment box below to share your thoughts.

Here’s to your health!

Use video to help volunteers polish their case for support

November 29, 2012 erik Board development, Fundraising, technology, volunteers

I am helping a friend run for city council in my town. He is a great guy, and he will make a great council member. He is personable, down to earth, genuine, and just an everyday kind of person. He is funny, and best of all he is a storyteller. While these might be good building blocks for a servant leader on the city council, I am coming to the conclusion that these traits might not be so great for a “candidate”.

For example, good candidates have their well-polished elevator speech down to science. They knock on your door, you answer it, and they very succinctly tell you in 30 to 60 seconds why they are running and why you should vote for them. However, a good storyteller knows how to stretch a story. They are the master of delivery and timing. They weave and spin and divert and then . . . BOOM. . . they hit you with the punchline or the point of their story.

Needless to say, I’ve been working with my friend on how to polish a powerful and compact elevator speech before he starts knocking on doors. Here is what that has looked like:

We wrote a case for support.
We reduced the case down to a written script.
We refined that script down to something even more simple.

However, none of this has really helped because at his heart, he is a storyteller. Each new tool we’ve developed becomes something new for him to add to the bigger story. LOL

So, last night I decided to try one last trick that I had up my sleeve.

In a room full of 30 of his friends, family, and supporters, I asked him to deliver his case for support (aka his elevator speech). I handed everyone a worksheet with five questions. A few questions dealt with delivery and others addressed content. I asked that everyone fill it out and do so anonymously. I then pulled out my Samsung pocket video camera (similar to the old Flip video cameras), and I videotaped him.

You can probably guess where this is going.

His 30 to 60 second elevator speech turned into an eight minute story. It was funny, and people laughed, but it wasn’t an elevator speech that he will be able to use.

Next steps for me will be sitting down with him to review the critique feedback forms and view the videotape. After digesting this information, it will be back to the grindstone to continue the work of forging a powerful case for support.

The reason I am blogging about this experience on a blog focused on non-profit issues such as board development, fundraising, etc-etc-etc, is because it dawned on me that this same process can be used in variety of ways at your non-profit agency.

Why not use it to help fundraising volunteers polish their approach?

I like this idea because:

It is hard for people to step outside of their bodies to see and hear what they look like. Video is a tool that helps us do exactly this (albeit many people hate seeing or hearing themselves on video)
Achieving this vantage point can create a moment of clarity and focus people on fixing something specific in their delivery or pitch.
People often end up “off script” and speak from the heart even though it isn’t part of the written case for support document. Recording them and capturing some of those impromptu comments can help you refine your case and incorporate it into an elevator speech.

Yes, I know that no one likes to do activities like this, but sometimes good things aren’t necessarily the easy things in life. Right?

I also recently used my little Samsung pocket video camera to interview board volunteers prior to a board retreat. I asked questions like:

Why did you agree to serve on this board?
Why are you so passionate about this organization’s mission?
Why do you think other people should join you in serving on this board?
In the end, what do you want your legacy to be on this board?

You wouldn’t believe what comes out of people’s mouths. In fact, I think they are surprised at what comes out of their mouths.

When you ask someone to speak from the bottom of their heart, amazing things can happen. When you capture it on video and replay it back to them, it becomes a powerful tool for accomplishing a number of different objectives (e.g. engagement, reflection, etc).

Have you ever used video as a tool to help board members or fundraising volunteers? If so, what was your experience? If not, what barriers do you see that stop you from doing so? Please use the comment box to share your thoughts and experiences.

Here’s to your health!

Tips to improving your charity auction

November 27, 2012 erik Fundraising

Later this morning, I am facilitating a discussion among some non-profit professionals about how to improve your auction fundraiser event. I am apparently itching to get this conversation underway. So, I thought it might be fun to start it online with the DonorDreams blog community. I suspect that I also have auctions on my mind because a number of local charities that I support are gearing up for their 2013 auction fundraising events right now, and I see them working hard at securing donations.

Let me first start by saying that I am not an auction expert, but I attend a number of these type of events and can speak to the issue from a donor’s perspective. In my experience, I am spending money when:

The mood in the room is fun, and I am surrounded by friends who are bidding.
There are auction items that I find appealing.
Alcohol helps open my wallet.
The check-out procedure appears to be easy and hassle-free (e.g. I won’t have to stand in long lines to check-out if I win my bids)
I can bid on a project to directly support the charity (e.g. underwrite a scholarship for a year, purchase a mattress for the homeless shelter, etc)

Here are a few things that I’ve seen fundraising professionals do to support the things I just mentioned:

Survey last year’s participants well in advance of the event to get an idea of what types of items that want to see in the auction.
Latch onto an event theme and use it throughout the event to create a sense of fun.
Offer both a live and silent auction format.
Don’t close the silent auction until AFTER the live auction is done. This way people who lost their live auction bids and still have cash in their wallet can still invest it in winning their silent auction bids.
Use auction software to automate the check-in and check-out procedures. Integrate other technology into the auction (e.g. electronic bidding) in order to add a new wrinkle.
Keep the theme focused on the auction (e.g. don’t mix-and-match your themes such as an awards dinner and auction).

As I always say at the end of my blog posts, “We can all learn from each other.” Please take a moment this morning to answer one of the following questions (I plan on using these same questions to start my roundtable discussion off on the right foot this morning):

What is your check-in and check-out procedures (and what role does accepting credit cards in advance play in that process)?
What best practices have you seen used with “silent auctions” vs “live auctions” that can help drive revenue?
What kinds of policies do you have around alcohol and getting your bidding public “liquored up”?
What kind of data do you collect and how do you use it from year-to-year to drive revenue? How does it line up with pre-event engagement strategies?

I recently bumped into Dave Naffziger’s Blog and I think his post on “How to run a successful charity auction” is one of the better ones that I’ve recently seen. You may want to go check it out.

Here’s to your health!

Five ways your non-profit can participate in #GivingTuesday

November 26, 2012 erik Fundraising, Mondays with Marissa, technology

Last week I provided a few ideas about how non-profits can benefit from creating a donor drive modeled after Black Friday sales. This week I want to highlight a campaign that is taking off for the first time tomorrow (the first Tuesday after Thanksgiving) by name of Giving Tuesday.

After standing in lines on Black Friday, running around to leftover sales on the weekend, and grabbing the best deals online (aka Cyber Monday), many corporations and non-profits want to turn the nation’s attention to the spirit of giving.

Let’s take a look at five things your nonprofit can do to get involved tomorrow.

Make it easy to donate – If people catch wind that there is a movement called “Giving Tuesday” and cannot make a donation on your agency’s website, then you’re going to miss the boat. As Erik stated in his post a few months ago about end of the year giving strategies, Giving Tuesday could be beneficial to your organization meeting its year-end fundraising goals. So, make sure there is clear and easy directions about how to make a donation on your website. You can add a Donate Now button easily through PayPal. If you don’t have time to make major changes to your site, at least put up a blog post or update that tells people where they can send their money.
Link it up – Link to your website on every social media platform where you have a presence. Make sure to mention “Giving Tuesday” in your updates. People don’t want to go searching for where to go. Also, don’t forget to also send an email to your donors.
Provide reasons to give – On a variety of social media sites, share photos of what your organization does with the money it receives (e.g. services, items purchased, your clients, events, facilities, etc). If you are looking to reach a goal for a certain fund or project, then Giving Tuesday is the perfect time to highlight those needs. You also want to mention something simple such as what a $20 donation can provide. Remember, crowdfunding sites such as Kickstarter have started a trend of microfunding and people are more apt to give to your organization if they can see results.
Give updates – Throughout the day, give people updates on how things are going. There’s a reason why telethons go to the “total board” many times throughout the broadcast . . . it encourages people to give and creates a bandwagon effect.
Thank people – Thank individuals who either “retweet” your tweets or “like” or “share” your photos on Facebook. Acknowledging those who participate in Giving Tuesday will only help the movement grow. So, even if all you do is spread the word tomorrow, next year your organizations could benefit even more.

I hope that these tips help and your organization gets involved in Giving Tuesday tomorrow.

Even if your organization hasn’t given any thought to Giving Tuesday until reading this post, getting involved by spreading the word can help lay the groundwork for next year. In all off your updates, make sure to include the hashtag #GivingTuesday. The organizers of the Giving Tuesday campaign are showing tweets with #GivingTuesday on their site in real-time. Think of the exposure your non-profit will receive.

What are your thoughts about Giving Tuesday? Is your organization planning on participating? If your agency does participate, please come back here and leave us a comment on how it went.

Does your non-profit really give thanks at Thanksgiving?

November 22, 2012 erik Donor-centered fundraising, Fundraising, volunteers

Let me start off on a positive note by saying Happy Thanksgiving. I am thankful to those of you who subscribe to this blog as well as those who participate in the discussions using the comment box. The last few years have been lean years for the non-profit sector, and I know many of you are thankful for donors, board members, staff, clients, and volunteers. We should all give thanks today as we sit down to enjoy a nice plate of turkey.

Over the last few days, I have been bombarded with stewardship emails, eBlasts, snail-mail, social media posts, text messages, and thank-a-thon calls from various charities and non-profit friends.

If you go back and look at my blog archive, you can see that I am a HUGE fan of these kind of activities. However, I can’t seem to get this one simple thought out of my head this year:

Are we just going through the motions?

Are we conveying heartfelt thanks this way?

I honestly don’t know the answer to these questions. As more and more non-profits engage in these types of stewardship activities, I wonder if they lose their impact and luster? I used to love getting a thank-a-thon call from a charity I support. Now those thank-a-thon messages line up one after another on my voicemail like planes at O’Hare airport.

If board members, staff and donors are part of our “extended non-profit family,” then maybe the test for our stewardship activities should be this simple question: “Is this how I would engage a member of my family?”

For example, would you send you Mom & Dad a Thanksgiving card and be done with it? Maybe some of you would, but I’m guessing many wouldn’t.

A long time ago in a galaxy far, far away, I used to cook a Thanksgiving dinner for the Boys Scout district for whom I served as their scouting professional. That seemed to feel right to me because it is what I planned on doing with my biological family.

I understand that non-profit organizations cannot host a number of different dinners to give thanks with all of their stakeholder groups. I guess that I am suggesting we need to all be vigilant and mindful that giving thanks should never become a rote activity.

My Thanksgiving recommendations for your consideration are:

Keep doing what you’re doing
Evaluate & critique your efforts afterward
Engage a small group of donors in a post-Thanksgiving Day discussion about what should change with next year’s efforts
Pick-up the phone and call each of your board members and personally say thank you to them one-on-one (no voicemail and no group speech in the board room)
Start thinking about who you might invite to your non-profit family Thanksgiving dinner next year. Host it the week before Thanksgiving 2013. See how it goes and how it feels. You may just like it.

Happy Thanksgiving everyone. Remember that this day can be more than just being thankful. It can be about showing people you’re thankful.

Here’s to your health!

I want a fundraising parrot for Christmas. What are you asking for?

November 21, 2012 erik Fundraising

A few weeks ago, a dear old friend of mine from Central Illinois came up to Chicago to visit. His name is Bill McGrath. He is a defense attorney whose heart bleeds more than most for the plight of people. We met downtown for Sunday brunch and talked about the good old days and caught up on where our lives are today. Not only is he still defending people who can hardly afford counsel, but he has fallen in love with his local non-profit homeless shelter and soup kitchen. It was in that conversation about his new-found non-profit passion that he helped me figure out what I am telling all of my friends and family what I want for Christmas.

In our brunch conversation Bill was picking my brain about fundraising issues. It was at this point that he shared with me his reluctance around asking other people for money. He recalled a funny story that he recently read in an online article at the Smithsonian’s website. The story is titled “Found: A Time Capsule at the National Zoo” and there is a section of that story that talks about Zoo Director William Man including a few quirky and interesting approaches to fundraising.

Here is an excerpt from that article that sticks in Bill’s brain as a funny fundraising story:

“Back when the Elephant House was built, Mann was famous for his grand collecting expeditions and offbeat fund-raising antics—he routinely brought animals to budget meetings with the Smithsonian regents and once trained a myna bird to keep asking, “How about the appropriation?” Along with his wife, Lucy, who wrote popular books and articles about their journeys, “Doc” Mann built the Zoo into one of international renown, expanding its collections and advancing standards of care for captive animals nationwide.”

Did you catch that? The zoo director trained a myna bird to assist him with asking other people for money. Wow! Now that is a visual, and I have been laughing about this story for weeks. (I encourage you to go back to the link in the previous paragraph and click-through to read the entire article.)

So, I’ve decided that if William Mann could train a myna bird to participate in fundraising solicitations, then there is nothing wrong with me asking for a “fundraising parrot” for Christmas. I could start legitimately calling myself a “fundraising pirate. LOL

OK OK OK . . . I’ve had my fun this morning, and hopefully I’ve helped some of you take a moment and smile. However, I do think this blog post raises a few very serious questions that you may want to consider heading into next year:

What can you do (short of training myna birds and parrots) to provide better support to your fundraising volunteers heading into 2013?
What “props” do your fundraising volunteers need and want to help them make more effective face-to-face solicitations of their social network?
What mental picture do your volunteers have in their heads of the resource development – fundraising – philanthropic process? If it isn’t a very good picture, how can you help change that in 2013?

I also think this blog post raises some less serious questions such as “What kind of ‘fundraising present’ do you want this holiday season?” If not a fundraising parrot, maybe it could be a donor-centered fundraising dog or a pick-pocketing monkey?!? LOL

Please take 60 seconds out of your very busy day and indulge in a little bit of fun. Scroll down and use the comment box to weigh-in on some of the silly questions. Or if you’re in a serious mood, then use the comment box to answer some of the serious questions that I pose above.

Here’s to your health!

Echoing Penelope from the trenches. Do your volunteers “get it”?

November 20, 2012 erik Donor-centered fundraising, Fundraising, volunteers

As all of you know, I am a Penelope Burk fan from my head down to my toes. Her book Donor Centered Fundraising is a resource development manifesto for me. I’ve dedicated a number of blog posts to various donor-centered topics ranging from cultivation and stewardship strategies to newsletters and gift acknowledgement letters. I just love blogging about these topics. So, it is especially thrilling for me when a volunteer picks up on these themes and joins the ranks of people spreading the donor centered fundraising message and Penelope’s work.

Last week, an old Boy Scout friend and volunteer who subscribes to this blog sent me an email. Jim is still a volunteer at Northwest Suburban Council in Mount Prospect, Illinois and he is very involved in the parent-teacher organization at his child’s school. Needless to say, he has been involved in countless fundraising activities throughout the years.

Jim’s email was simply him forwarding me an eBlast from Guidestar that was titled “More Money For More Good” and promoted one of Guidestar’s free guidebook resources that they call “More Money for More Good: Your Nonprofit Guidebook to Fundraising with Impact“.

I always love it when friends, family and blog subscribers send me stuff because I am always on the lookout for topic ideas. So, I read the Guidestar eBlast and it echoed all of the good teaching of Penelope Burk on the subject of donor centered fundraising (e.g. impact, donor communication, etc). I even clicked on the cute, informational YouTube video about “How Nonprofits Can Improve Fundraising, Increase Effectiveness, and Better Engage with Donors“.

[youtube=http://www.youtube.com/watch?feature=player_embedded&v=IS128sCCJUQ#!]

Guidestar is great. They are smart. Their stuff is always quality, and I hope you click-through and access some of their resources because it will surely help your agency with its year-end fundraising efforts.

However, it was the words from my friend, Jim, that resonated most with me because it was straight from a volunteer’s mouth and his point of view (which I think is much more powerful than what any professional organization can communicate).

Here is what Jim said in his first email that included that Guidestar eBlast:

“We know what we’re doing because we do it (almost) every day, but our donors don’t necessarily live and breathe our mission/passion. They’re more apt to help if we remind them what we’re doing & how they could help.”

I couldn’t have said it better, Jim!

In his second email responding to my request to use his name and story as part of this blog, he elaborated more on his original point:

“The reminder about having donors understand my organization’s impact is what jumped out at me. I have people who are so involved and they are my organization’s best cheerleaders, but they do not realize that the people they are soliciting do not really know what we do. Making people understand what we do and why we exist is the key to making them care.”

Again, I think Jim hits the nail on the head with this last statement and it should give every fundraising professional a tingling sensation when they hear one of their fundraising volunteers or board members vocalize such powerful points of view.

Perhaps, at this point, you’re wondering how close Jim might have nailed the concept? Well, here is something Penelope Burk said on page 87 of her book about her donor research and this topic:

“23% of study donors always or most of the time receive measurable results of their gifts at work; 29% receive this information sometimes; 55% never or rarely get this information. A number of other questions in the study confirmed that measurable results influence donors’ future support more than anything else.”

How much would you pay to be in the trenches with a fundraising volunteer who ‘gets it’ like Jim? The better question is “what are you doing to help your volunteers achieve these ‘ah-ha’ moments? Once one volunteer has this epiphany, how do you position that same volunteer to become an advocate and help their fellow volunteers have similar revelations?

I think there is an important lesson for all fundraising and non-profit professionals to be learned from Jim’s story. Please scroll down and share a few quick thoughts and answers to the questions above in the comment box below. We can all learn from each other.

Here’s to your health!

Paralyzed by equally bad decisions? Then bankruptcy it is!

November 16, 2012 erik organizational development

Welcome to O.D. Fridays at DonorDreams blog. Every Friday for the foreseeable future we will be looking more closely at a recent post from John Greco’s blog called “johnponders ~ about life at work, mostly” and applying his organizational development messages to the non-profit community.

In a recent post, John appealed to his creative muse to write about a 14th century French philosopher named Buridan by writing a story about Buridan’s ass (if you want to know, then you need to go read the post). In a nutshell, this philosopher believed “in the face of equally good alternatives, he believed a rational choice could not be made“.

This got my nonprofit wheels spinning, and I wondered if the opposite is also true. In other words, in the face of equally BAD alternatives is it impossible to make a rational choice.

Hmmmm?

I don’t know about you, but since the economic downturn began almost five years ago I’ve seen a lot of non-profits prove this point.

Two equally bad alternatives:

Apply for more government contracts in spite of slow payment and what seems to likely to be future cuts and claw-backs due to a poor tax revenue situation all in the name of keeping the agency’s doors open; OR
Cancel some government contracts because they don’t come close to covering costs, which means a loss of some (albeit small) revenue that helped cover administrative overhead resulting in downsizing and re-organization. Of course, there is usually a plan to shift resource development efforts and invest more in private sector fundraising, but the re-org and downsizing destroys public confidence in your agency and these plans likely fall short.

Ugh! Which equally bad option should we choose? Of course, board volunteers drag their feet and don’t make a decision because who wants to be known in the community for slashing services or downsizing a “do-gooder” non-profit organization?

Besides, the board members sitting around the table weren’t recruited for their fundraising skills because when they were recruited the government funding situation was good and there was no need to focus recruitment efforts on finding “lean-mean-fundraising-machines”. So, they are probably very reluctant fundraising solicitors and very resistant to this idea.

Staff members aren’t much better as they reach for their rosary and convince themselves that “hope” is a strategy.

Do you think that I am talking about your agency or some other organization in your town? Let me assure you that the agency I have in mind is none other than Jane Addams Hull House. The Chronicle of Philanthropy wrote a great story about this tragedy back in February, and I think they help me prove that the opposite of Buridan’s philosophy is also true.

The scary thing about this example is that I can name a number of other non-profits who appear to be going down this same road.

Regardless, if you wait too long to make a decision, then everything caves in and you’re out of business.

Interestingly, I came across an old New York Times article that examined the emerging trend of non-profit organizations using bankruptcy laws to shield themselves from this phenomenon. The newspaper did a nice job of explaining an agency’s two options:

“Under Chapter 11 of the federal bankruptcy code, charities can get relief from creditors, obtain emergency financing, renegotiate leases and draw up a reorganization plan to let them emerge as financially viable. Some charities, however, have resorted to Chapter 7 of the code, under which organizations liquidate. The American Musical Theater of San Jose, Calif., for instance, took that route.”

My gut feeling tells me this will become a bigger and bigger trend as more and more non-profit boards experience difficulty in making a choice between two very bad decisions (whatever those decisions may be). Hopefully, they don’t end up like Buridan’s ass in John’s blog post . . . DEAD.

Has your non-profit organization ever been faced with the choice of two bad decisions? How did you work through it and avoid indecision? Have you ever seen a non-profit organization in your community file for bankruptcy? If so, how did that turn out for them? Did they survive? How did they restore donor confidence? Please use the comment box below to share your thoughts.

Here’s to your health!