Tag: stewardship

September 16, 2011 DonorDreams Board development, Fundraising

Boards Gone Wild

A week or so ago I saw a very bizarre tweet from my local newspaper float through my Twitter feed. The tweet included a link to an article about Elgin Symphony Orchestra’s board of directors and what I’d characterize as a “board revolt”. Suddenly, I felt like one of those people standing in a grocery store check-out line staring at “The Inquirer” and unable to resist taking that ‘rag’ off the newsstand to see if aliens really did help Oprah lose 100-pounds. Have I piqued your curiosity yet? Click here to read the article from Dave Gathman of The Courier News.

It certainly seems like there is a lot going on beneath the surface, but this is what it looks like to this outside observer:

Key board volunteers who are also former board presidents and major donors are pissed off about a multitude of things and resigned out of frustration.
There is obviously conflict over rising deficits and debt.
There seems to be disagreement over the strategic direction of the organization.
There appears to be many fingers getting pointed in many directions and the resource development/fundraising department is in someone’s crosshairs.
I smell personality conflicts all around the table, especially between the CEO and certain board volunteers.
Is it just me or is the current board president kind of stirring the pot when he tells the newspaper that donations and ticket sales have picked up since these people resigned? Perhaps, there was even a schism among volunteers on the board of directors.

WOW!!! This is the stuff that Hollywood movies are made of. OK . . . maybe I’m getting carried away, but it is at least what after-school, made-for-television movies are made of. Right?

I find myself fixated on a number of thoughts and questions such as: What should the CEO do in this situation? How does this board move forward? What do you say to your donors when your dirty laundry spills over into the local newspaper? Who is getting fired?

However, the thing that weighs most on my mind is: “Who are these people who claim to be board volunteers?” I’ve worked with between 50 – 75 different boards across a 13 state region over the last 5-years, and this isn’t a familiar sight to me. More oftentimes than not, I found boards who would rather sustain pain from medieval torture devices rather than engage in discussion and dialog that “might” possibly lead to disagreement.

So, I’d like to thank the Elgin Symphony Orchestra for renewing my faith in board governance. While the outcome might not have been desirable, I believe once again that there are passionate, mission-focused volunteers who serve on non-profit boards.

As for where to go from here, I can’t stop thinking about Chicago’s new mayor, Rahm Emanuel, who famously said, “You never want a serious crisis to go to waste.” Here are just a few things I might be thinking about if I were in the CEO’s hot seat:

Organize a ton of donor focus groups to engage supporters in how they think the organization’s issues could be addressed
Develop a donor survey to secure similar input from smaller donors
Commission a resource development audit to dissect revenue streams and look critically at all resource development systems
Start down a strategic planning road and make sure the planning model you choose is very “organic”and engages ALL stakeholder groups
Target other influential community leaders who you’ve always wanted on your board but couldn’t (or didn’t), go talk to them about your planned response, and ask them to get involved

Regardless of the path chosen, they better do something soon or their non-profit board room might start to look something like this Saturday Night Live sketch.

What would you do if you were the CEO? Board president? Was your faith in boards “renewed” as it was in my case? Have you ever been faced with a similar situation? If so, how was your example handled? Please use the comment box to weigh-in with your thoughts. We can all learn from each other.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

September 9, 2011 DonorDreams Fundraising

Spotlight: Examples of Really Good Donor Recognition Societies

Thanks to my friend, Susan Rudd, in Bloomington, Indiana I ended up focusing the last 3-days on donor recognition societies. Please don’t misunderstand me . . . I am not complaining. I very much love annual campaigns and individual giving vehicles, and donor recognition societies are a very important tool for any resource development professional focused on individuals (which should be ALL of us because 75% of charitable giving comes directly from individuals).

As I wrote Wednesday and Thursday’s blog posts, I realized that I was focusing too much on institutions of higher education as examples of good donor recognition societies. So, I promised yesterday that I would end the week with some diverse examples from other non-profit sectors. Here are a few that I found that are worth your time reading about and mimicking:

The United Way’s Tocqueville Society — This donor recognition society is for donors giving $10,000 or more to the annual campaign. It is a very traditional approach, and local United Way chapters do a variety of different things to create a sense of engagement for donors belonging to this society. Most non-profit organizations who run annual campaigns have some version of this donor recognition society (e.g. Boys & Girls Clubs’ Jeremiah Milbank Society, etc)

The Boy Scouts of America rolled out a tiered donor recognition society for their Major Gifts program. Local councils are tasked with creating courtesies (aka membership benefits) for people donating to each of these societies. It shouldn’t surprise anyone that special patches and pins are part of Scouting’s benefits program for these societies.

James E. West Fellowship — This donor recognition society is focused solely on gifts to the endowment
Second Century Society — This society is more comprehensive and encourages large “major gifts” to operating, capital and/or endowment funds. It is flexible and covers outright gifts all the way through deferred ones.

The Museum of Science & Industry in Chicago developed a tiered donor recognition society named the Columbia Society for its annual campaign donors. The first tier of the society starts at $1,000 and the highest level is for $50,000 donors. Benefits/courtesies vary for each tier but include typical stewardship-based activities such as newsletters, events, etc.

Human Rights Campaign (HRC) developed a similar tiered donor recognition society they called the Federal Club. As with the aforementioned Columbia Society, membership benefits include tickets to events, a special newsletter, and routine e-blasts with return on investment information on HRC’s lobbying efforts and community organizing.

One of the grand-daddies of all donor recognition societies is Rotary International’s Paul Harris Fellowship program. I’ve never seen any non-profit organization so focused on a donor recognition society as I have this one. As with all national programs, the local affiliates are responsible for making membership in this society feel special. However, Rotary International does a great job with recognizing its local affiliates for their work in securing repeat gifts and new donors. We can all learn a lot from Rotary’s work in this area.

Well, this is just the tip of the iceberg, but I think it is a good start. Does your agency have any fun and effective donor recognition societies that you can share with us? Do you know of any donor recognition societies that integrate stewardship opportunities into their society as benefits/courtesies? Please use the comment box below to weigh-in because we can all learn from each other.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

September 8, 2011 DonorDreams Donor-centered fundraising, Fundraising

Donor recognition societies: The response

Well, no one responded to poor Susan Rudd’s questions about donor recognition societies from yesterday’s blog post. All I can assume is that the workload coming back from the long Labor Day weekend must have been intense. Never fear . . . I responded to Susan and provided a few nuggets of advice.

However, for those of you who read yesterday’s blog and thought: “Bah! Our donors don’t want recognition. In fact, they’re always telling us not to go through the trouble.” Let me assure you that what donors say and what they mean are very different things. In my experience, many of those donors who protest when it comes to recognition and stewardship are really saying: “Don’t engage me because my plans for giving to your agency are short-term.”

As I said yesterday, I’ve found that donor recognition societies are oftentimes misunderstood for “name-only,” donor giving levels that are listed in an annual report, newsletter or website. Unlike giving levels, donor recognition societies are ALIVE and a place for your donors to engage with your organization’s mission as well as with other donors of like-mind.

One great example is what the University of Michigan’s alumni association is doing with its members (and when I say members you should read it either as “donor” or “prospective donor”). Every summer the alumni association offers its members the opportunity to sign-up for 11 different sessions of summer camp. They call this program “Camp Michigania“.

I just spent last week vacationing with a number of retirees in Michigan on the shores of Saginaw Bay. One evening they couldn’t stop talking about their camp experiences. While they participated in typical camp activities (e.g. swimming, arts & crafts, etc), they mostly loved the “Faculty Forums” where they could hear U of M staff talk about various topics pertaining to their professional research.

Do you know what else I heart this group chattering about as they reminisced about camp? They were talking about the scholarships funds they were starting (or thinking about starting) as well as the planned gifts they were contemplating.

I can honestly say that I haven’t seen a more engaged and excited group of donors and prospective donors. And the amazing thing to me was that there wasn’t a single resource development employee from the university in the room stirring those conversations.

The moral to this story is: stewardship and cultivation activities that “ENGAGE” donors is like the fountain of youth for all resource development programs. It brings things to life. It makes fundraising and solicitation so much easier. It can breathe life into your planned giving program.

While Camp Michigania isn’t a textbook example of a donor recognition society, I really like what the Indiana University Foundation has done in this area. Click here to see examples of their donor recognition societies. I suggest you pay special attention to how they use “courtesies” to engage their donors after the gift. What IU is essentially doing is infusing cultivation and stewardship opportunities into these recognition vehicles.

Please use the comment box below to share links to other good examples of donor recognition societies that you’ve found. Does your organization use donor recognition societies? If so, how do you use them? Do you infuse stewardship opportunities into these structures? What has worked well and what hasn’t?

Tomorrow I will try to share other good examples of donor recognition societies from outside the education sector.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

September 7, 2011 DonorDreams Fundraising

A reader’s question about Donor Recognition Societies

A few weeks ago, I received an email from Susan Rudd, Resource Development Assistant for the Boys & Girls Club of Bloomington, Indiana, about donor recognition societies. So, this is what I’ve decided to do . . . and I will need your help with this. In the space below, I will paste Susan’s email into the blog. I would like you to think about some of the questions she poses and then use the comment box to weigh-in with your best world-class coaching and advice. The more readers who participate, the merrier!

Before I share Susan’s email, let me just say that I am of the opinion that many social service non-profit agencies don’t do a very good job with donor recognition societies compared to other sectors of the non-profit community. I suppose I’m of this mindset because when I’ve seen social service agencies take a stab at creating donor recognition societies, they oftentimes seem to melt into “donor giving levels” (e.g. listed online and in the annual report) with very little else associated with it.

With that being said, here is a copy of Susan’s email:

Hey Erik,

I am really enjoying your blog, thanks for doing that, it’s a refreshing break for me to read it and recharge my resource development batteries.

Question for you, and maybe some fodder for you on your blog. We have had a few conversations with our annual campaign committee and Resource Development committee about developing donor recognition societies. At this year’s “Eat Thank Love” donor stewardship luncheon, we recognized nearly everyone there (and possibly everyone) in some way for what they contributed to the Club. However, we feel like we need a more formalized plan. Nevertheless, when we started talking about how to do this, we ran into walls of questions about how to create and acknowledge those people using a donor recognition society strategy. So here are a couple of questions we have:

* Do we create societies for all donors or just annual campaign donors?
* Should we include in-kind donors? How do you value those contributions?
* We started to look at names of levels (champion, gold, silver, etc) and special recognitions for long-term donors, etc. and got stuck there too. What types of names should we use? Where should we create breaks in the levels of giving for recognition purposes?
* Is there any protocol or best practice to follow when developing Donor Recognition Societies?

Any advice is valued, of course. Wisdom please…whenever, no rush. Thanks Erik.

Susan Rudd
Resource Development Assistant
Boys & Girls Clubs of Bloomington

So there you have it. Thanks to Susan for sending me this email and understanding that she isn’t in this alone because we can all learn from each other!

The challenge is now out there for you. How does your agency deal with Donor Recognition Societies? What is your best world-class coaching and advice for her?

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

September 5, 2011 DonorDreams Donor-centered fundraising, Fundraising

Stewardship opportunity on Labor Day

Labor Day can be a stewardship opportunity. In fact, non-profit organizations can turn most holidays into stewardship opportunities for their donors.

When I was a young executive director, I used to write a letter to the editor of our local newspaper on Labor Day thanking the community’s labor unions for all of their support. In that open letter to the public, I tried to remind people that those unions were part of our community’s fabric and did “good works” that oftentimes didn’t get any press. For example:

The local Service Employees International Union (SEIU) chapter provided all of the volunteers and muscle necessary to run our duck race fundraiser.
The International Union of Painters and Allied Trades Home (IUPAT) once marshalled their apprentice program to paint our facility for free.
The International Brotherhood of Electrical Workers (IBEW), the Laborers’ International Union, as well as other unions in town were all at one time or another outright donors to our annual campaign.

I chose Labor Day to write that letter to the editor, send letters of appreciation and make thank you phone calls because the stated purpose behind Labor Day is to celebrate “the economic and social contributions of workers”.

Many non-profit organizations struggle with stewarding their donors and instead become solicitation machines (which ironically burns out donors and creates a cycle of turnover). When I’ve talked to my non-profit friends and asked WHY, the most common answer I’ve heard is that time is a limited resource.

So, I encourage you to look at the myriad of holidays on your calendar and ask yourself this simple question: “How can this holiday be used to steward our agency’s donors?” I assure you that with a little effort, you will find the opportunities are limitless.

Does your non-profit organization have any fun and effective stewardship activities and best practices wrapped around holidays? If so, please use the comment box to share because we can all learn from each other.

Here is to your health! And oh yeah . . . Happy Labor Day!!!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 30, 2011 DonorDreams Board development, volunteers

Board volunteers bark back: Part 1 of 3

Yesterday’s blog post titled “Hey board members: Sit – Lay Down – Roll Over” looked at board members who agree to “sit” on non-profit boards but don’t seem to understand they’ve been asked to “serve” on those boards. So, I developed an online survey and randomly emailed 32 board volunteers. In that survey I asked questions about their non-profit’s board development practices and their opinion on how to recruit more engaged board volunteers. I want to thank the 17 individuals who took a little time out of their day to respond to the questionnaire. I will share the results of my unscientific questionnaire with you today, tomorrow and Thursday.

My first question to board volunteers was: “Does the non-profit board on which you serve operate with a board-approved, written Board Development Plan?” Here were their responses: 14 said YES, 2 said NO, and 1 said I don’t know.

I don’t know about you, but my heart is uplifted to see so many “yes” responses because non-profit agencies will NEVER recruit engaged board members to “serve” on their boards without a written strategy in place. In my opinion, organizations need to have a written board development plan that spells out how to identify, prioritize, recruit, orient, recognize, and evaluate potential prospects and actual board volunteers. I am reminded of this old proverb, “Those who fail to plan, plan to fail.”

My second question to board volunteers was: “Does the non-profit board on which you serve evaluate board volunteers every year?” Here were their responses: 9 said YES and 8 said NO.

These responses tell me that many board development plans probably only focus on recruiting and very little else. Board development plans that don’t have an annual volunteer evaluation component are missing an opportunity in my opinion. I suspect the biggest reason many plans don’t call for annual evaluations is because people hate to be judged. I suggest metrics such as: board meeting attendance, committee meeting attendance, fundraising participation (cultivation, solicitation and stewardship), and volunteerism. The annual board volunteer evaluation doesn’t have to be judgmental . . . it can be designed as a way to: 1) look back and celebrate their contributions and 2) ask them how it is going and what needs to change in the upcoming year for their volunteerism to be meaningful and rewarding. I’ve personally found that volunteers who are disengaged typically use their annual evaluation meeting to quit or make the necessary adjustments to engage at a higher level.

My third question to board volunteers was: “If you answered YES to the previous question, please check all forms of evaluation that your organization uses to evaluate board members.” Here were their responses:

8 respondents said: Every board volunteer completes a self-evaluation once per year”
8 respondents said: “The Board Development Committee completes an evaluation on each board member once per year”
4 respondents said: “Every board member is asked to complete an evaluation focused on the entire board’s effectiveness”

Multiple board evaluation tools are effective. Self-evaluation allows volunteers to take a good hard look in the mirror at themselves, and peer evaluation provides an external point of view. When done in conjunction with each other, the evaluation process can be powerful. When only one form of evaluation is used, it is like a peanut butter and jelly sandwich without the peanut butter.

Tomorrow I will share a number of respondents’ answers to this question: “How would you answer the question posed in the Facebook message from my non-profit friend? As a reminder, her question was “What can we do to help shift that mentality – to help professionals and individuals with the means to give that it is a SERVICE to the greater good, not just a spot to occupy around a conference room table?” Stay tuned because I assure you the answers are interesting!

If your organization uses an annual board volunteer evaluation process, what are your evaluation metrics? How do you conduct your year-end meetings? Who is involved? Do you think it is effective and why do you think that? Please use the comment box and weigh-in because we can all learn from each there.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 26, 2011 DonorDreams Board development, Donor-centered fundraising, Fundraising

Tips for surviving a double dip recession

Yesterday I blogged about my neighbor Larry and how I see his handyman business as an economic indicator and proof the economy is dipping again into recession. I also cited recent survey data indicating that donors are planning to tighten their belts in the coming months. If you didn’t get a chance to read that post, click here and then come back for today’s follow-up post.

While there is nothing any of us can do to stop the economic tides from rising and falling, I submit that there are things we can do to prepare for such occurences and the following are a few tips you might want to consider:

Tip#1: Get closer to your donors and not farther away.
Donors are part of your non-profit family. During tough times, families pull together. They don’t ignore each other. Your instinct might be to give donors space, solicit them less, and be respectful of limited resources. Even though these are good intentions, the message you’re sending is that donors are only your friends during prosperous times when they have money. Don’t send the message that donors are only ATMs in your eyes. Find ways to engage them.

Tip #2: Tell donors what you are doing to help your clients get through tough economic times.
Donors like to see “return on investment” when they make a charitable contribution. When recession-thinking permeates our donors thoughts, lets embrace the moment and show them how their contributions are making a difference in the lives of others. Don’t use “guilt messaging” to solicit. Use “we’re all in this together” and “neighbors-helping-neighbors” as part of your stewardship messaging.

Tip #3: Invest in volunteer management and promote volunteerism like never before.
There will be people who want to support your mission, but cannot do so financially during tough times. Providing people an opportunity to support your mission by donating their time will: 1) help you pull them closer and not push them away (see first tip), 2) cultivate future donors (because the recession will end one day and they will be able to donate again), and 3) help your agency’s staffing budget as you might be considering budgetary cuts.

Tip #4: Invest a lot more time in re-building or manicuring your board of directors.
Your case for support will never be greater than now. As you approach board volunteer prospects, they won’t need any convincing that you need as many talented people around your board room table to help make difficult decisions and weather an economic storm. Find the time! Figure out how much time your organization spent on board development in 2010, then double or triple the amount of time you spend on it going forward. Doing so will help you survive and position you to be very strong on the other side of this recession.

Tip#5: Don’t stop soliciting individuals.
Individual giving is where it is at in charitable giving. Spend most of your time cultivating, soliciting, and stewarding individuals and less time on foundations, corporations and government. This is a great time to invest in building your annual campaign or annual fund drive and dial back a little bit on special events. Think about it for a moment . . . during tough times people eliminate “frills” like entertainment. Many of your donors probably see their special event contributions are “nights out on the town with a charitable angle”. I assure you that they look at their annual campaign pledge very differently. Don’t eliminate all of your events, but now might be the time to kill old and tired events.

There are literally two or three more handfuls of tips I would’ve provided, but I’m running out of space. So, I encourage you to use the comment box below to weigh-in with your thoughts, tips and current strategies. We can all learn from each other!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 12, 2011 DonorDreams Fundraising

From the mouths of donors: Wrap-up

For the last four days, we’ve heard unfiltered responses from real, live donors with regard to who they give to and why they give as well as what they are looking for in order to continue giving. So, the question now shifts to: “What are you going to do about it?”

I’ve had an opportunity to soak-up this week’s blog series, and here are a few ideas if you want to make this input/feedback actionable:

Call a few board members and recruit them to go with you on face-to-face stewardship visits with your top 25 donors;
Call a few donors and ask permission to visit with them and videotape their story about why they give to your organization. Edit and replay these stories in your board room.
Organize a few donor focus groups on any number of different subjects. Click here to read a great online article about how and why to do this.
Develop and launch a donor survey. Penelope Burk has made a career out of asking donors why they give and what makes them tick. Click here to read the executive summary of Penelope’s 2011 donor survey results. Doing the same might just give you some insights you never had about your organization or your resource development program.
Start a volunteer management program and squirrel some money away in next year’s budget to hire a volunteer coordinator.
Start an alumni chapter and get the old gang back together. Remember that people don’t have time to belong to a “name only” group. So, make sure your alumni efforts have purpose and meaning (e.g. a stated project, etc).
Organize a storytelling project where you ask current clients and alumni to talk about how your organization made a difference in their life. Capture these stories either via digital audio or digital video and upload it to a special place on your organization’s website. Don’t know where to get started? No problem … click here and check-out NPR’s “StoryCorps” project for inspiration.
Create a training for volunteer solicitors that is designed to help them understand that asking for a charitable contribution is the “art of happiness” and an act of helping people’s vision for the world around them come true.

OK … I’ve got the ball rolling with a few simple ideas. Now it is your turn! What are you planning to do to make this week’s blog series actionable so that your organization can become more donor-centered? Please use the comment box below to share your ideas because we can all learn from each other.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 11, 2011 DonorDreams Fundraising

From the mouths of donors: Part 4

After more than 60 posts to this blog over the last few months, I’ve decided that many of you are probably tired of hearing me pontificate day-in-and-day-out. So, this week I am changing things up a little bit. Last week I launched an anonymous online survey via various social media channels and my email address book. I’ve picked four really awesome responses to share with you this week that I think provide excellent lessons for non-profit and fundraising professionals. Enjoy!!!

Again … the survey was anonymous because I wanted the truth, the whole truth and nothing up the truth. Here is what the today’s highlighted survey respondent said:

Question: Using the comment box below, please write a paragraph or two answering some of the following questions. Of the charities to whom you currently donate money, which one is your favorite? How did you first learn about this charity? Why did you make that first contribution? Why are you still contributing? How do you know that your contribution is making a difference? What does the charity do to demonstrate it is having an impact?

Answer: United Way, Youth Outlook, American Red Cross, American Cancer Society, Heifer Foundation. I was contacted by mail or e-mail, and the charity mission resonates with me personally. They are all my favorites. I really believe that, “For it is in giving that we receive” and in some way I feel good about me giving. I wish I wasn’t so shallow, but it really is about me. I feel good about me buying a gaggle of geese or a goat to help a “real family” support itself. I know they don’t really do that, but I give anyway.

Question: Understanding that these are tough economic times and no donor’s contribution ever should be taken for granted, what does your favorite charity need to do (or show you) in order to renew your support and/or increase the size of your contribution?

Answer: Ask. Tell me a story. Don’t make it too sappy, though. I won’t trust that.

Hmmm … can you tell what kind of real happiness that charitable giving brings to this person’s life? Here is what struck me about these responses:

I am reminded that there have been scientific studies looking at why people give to charity, and they echo what this very smart donor said: “…I feel good…” Click here to read more about this phenomenon. Hmmm … maybe we need to teach our volunteer solicitors about this ground breaking research so they might stop being so fearful about asking for contributions.
In this donor’s second response, I am reminded of an online interview I read with Jim Grote. It was the first time I ever heard of the concept of “Narrative Philanthropy”. In a nutshell, good fundraisers are good storytellers. Click here to read that interview for yourself. I promise that it may change your life! I am also reminded that stewardship doesn’t have to be about fundraising professionals “telling” donors stuff, but it can also be about “asking” for feedback and input.

How does your organization train volunteer solicitors to become awesome storytellers? Do your fundraising volunteers see their jobs are “arm twisting” or do they see themselves as “dream-makers”? What do you do to help your fundraising volunteers with these paradigm shifts? Please use the comment box below to share because we can learn from each other.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC