Is it time to Panic yet?

Enhancing Board Performance

2010-10-25T11:35:00.000-07:00

Rick Moyers' blog post at the Chronicle of Philanthropy has some deceptively simple suggestions. I'd recommend that each board chair and the executive director/head sit down and talk their way through these steps.

Create an annual work plan for the board. The plan should include goals and milestones for the year, along with items of business that need to get done at certain times of the year, such as acceptance of the audit, election of new board members, approval of the budget, and the executive director’s performance and salary review.

At each board meeting, take some time to put the meeting in context. To keep board members engaged, celebrate what was accomplished at the last meeting and give them a heads up about what’s coming up and why it’s important.

Keep track of board terms and when board members are up for renewal or are about to rotate off the board. That may seem obvious, but it often falls to the wayside in the press of other urgent business. I’ve run across board members who were in the fifth year of their three-year terms and others who were surprised and incredulous that their terms were up. It helps to plan ahead.

Have an annual one-on-one conversation with each board member. This conversation should include a reminder of where they are in their term and when they will be up for renewal. This is also an opportunity to ask for their feedback on how things are going, how their experience can be improved, and how the board could operate more effectively.

So what do we need in order to raise money?

2010-04-16T13:45:00.000-07:00

1. Leadership
2. Data Management Capacity
3. Membership/Annual Fund/Special Gifts Analysis
4. Qualified Prospect List
5. Board participation
6. Integrated communications/marketing plan
7. Compelling case for giving
8. Viable Financial Plan
9. Organization well-regarded
10. Momentum

Time to plan!

2010-04-12T11:49:00.000-07:00

Institutional Planning Sessions [IPS’s] are intensive, facilitated programs designed to help non-profit organizations initiate important action steps. IPS’s provide boards and executive directors with a unique opportunity to reflect carefully on a key issue without the immediate pressure of other board business.

Recent IPS topics have included;

Governance review-committee function, bylaws

Succession planning

Fund raising review

Pre-capital campaign assessment

Board self-assessment

Board/executive coordination

Institutional priority review

Audience development

Community outreach

Marketing initiatives

The IPS approach makes the assumption that the most important part of the process consists of ‘planning to plan.’ It frequently happens that during initial session analysis the organization redefines or even completely discards the initial planning goal.

Presession Analysis [min. 4 weeks]

1. Initial contact with consultant.

2. Liaison established.

3. Preliminary questionnaire and discussion of IPS scope and focus.

4. Data review by consultant on a confidential basis. Examples; 990, strategic plans, annual reports, board/committee minutes, attendance analysis, grant applications, staff/board contact information.

Planning Session [3-6 hours]

Location

Length

Participants

Format

Desired outcome[s]

Post-session Assessment and Implementation [Post session]

· Confidential IPS assessment report from consultant

· Session assessment by participants

· Follow up action by organization

Philip Sedgwick Deely & Associates

The 'Shape' of Fund Raising

2010-04-10T20:13:00.000-07:00

http://slidesha.re/aLex2C

Philotypes??

2010-04-10T11:21:00.000-07:00

A semi-serious look at donors....Philotypes

How do I ask for a gift?

2010-04-10T11:04:00.000-07:00

Plan the call with your partner

Know your prospect-what has their involvement been? Decide in advance who will make the request for a gift. Meet 10 minutes before the call and rehearse.

Know the case/prospect

What is the mission, what are the needs? Talk about excellence first, needs come next. What are the prospects’ giving history? What interactions have they had with your organization?

Meet face-to-face

Personal, face-to-face contact is the most effective way to ask for a gift. Deflect a preemptive gift when setting an appointment. “Ah, come on, you don’t need to bother coming over. Why don’t you just tell me what you need?”

Cite personal commitment

“Would you consider joining me with a gift of…Those who ask must have already given themselves. Set appointments yourself when possible. It is appropriate to make direct reference to your own gift.

Adopt a positive outlook

"I’d like to ask if you would consider a gift in the range of...Avoid-“I know there are a lot of demands on you" or the worst "we have you down for..." Soliciting a gift is not 'begging', 'arm twisting', or 'putting the bite on someone.'

Ask, then listen

Research indicates that more than 1/2 of all solicitations that fail to result in a gift occur because… the solicitor has not asked for a gift. Do not leave a blank pledge card behind. After you have asked for the gift...do not speak. Be prepared to offer an alternative gift opportunity.

Philip Sedgwick Deely & Associates

Signs of Hope--fund raising after the recession

2010-03-25T11:41:00.000-07:00

I opened my 10th invitation to a summertime fundraising gala this morning and began to muse about signs that the recession might just becoming to an end...modest recovery in the financial markets and a calmer approach to real estate workouts are encouraging signs and yet the potential for a late season 'frost' is still lurking. Most NPO's have had to recalibrate their expectations in the past two years. The 'new normal' does not entail reliable annual growth in the annual fund, every larger comprehensive capital campaigns, or even, ever higher benefit ticket prices!

More than ever before NPO's need to nurture relationships with their donors and, in particular, treat LYBUNT [Last Year But Not This] donors carefully-allowing them to reengage at a lower giving level if necessary. Some organizations have offered to maintain certain upper level benefits for one-time big donors with an invitation to resume full benefits at a higher level next year.

Starting a Capital Campaign

2010-02-22T06:58:00.000-08:00

Starting a capital campaign is like painting a New England barn-all the work is in the scraping.

From Drop Box

1. Case/goals

2. Timing

3. Momentum

4. Prospecting

5. Soliciting

6. Volunteer leadership

7. Planning and Organization

8. Research and Records

9. Campaign Communications

10. Staffing

Endowment Creation 101 Step 2-Endow your Annual Fund Gift

2010-01-27T08:11:00.000-08:00

Chauncey Loomis was not only a noted scholar, author, and fisherman-he was a very sophisticated philanthropist. This linked article details Chauncey's $2.0 million gift to Berkshire Taconic Community Foundation and the 20+ organizations that will benefit in perpetuity-in effect his annual support will continue uninterrupted.

I have to assume that all non-profits interested in long term survival have taken

step 1-establishing a 'Legacy Circle' to recognize those who have already or who have the intention to make provision for the non-profit in their estate. [I recollect that some 85%+ of all legacies to NPO's come in the form of outright bequests.]

step 2-Identify your top X [5, 15, 50?] annual fund donors and determine if, how, when they might be asked to 'endow' their annual fund fund gift.

Some organizations rely on annual infusions from 1-5 annual fund gifts to make their operating budget for the year. It is a key board responsibility to help stabilize the funding stream and insuring that some % of key annual support is insured should be a top priority. For some donors an initial commitment to insure one's annual gift [say $25,000 to produce $1000] may serve as a 'starter gift'-for others this commitment would represent a major stretch. For higher risk organizations [arts people please take note!] it may be very important to partner with a community foundation or other 3rd party fiduciary [bank trust department] to reassure the quizzical donor that his/her money won't be inhaled by the operating budget!

And furthermore...

2010-01-09T11:22:00.001-08:00

I'd like to add emphasis to Malcolm's observations re. fiduciary responsibility. I have attended endless board meetings [arts, environmental/cause, independent schools] and heard board members say blithely "Oh, I don't 'do' finances..." Leaving the numbers to the finance committee or the executive committee just doesn't cut it anymore...there is an inextricable link between Mission and Margin.

Last spring three regional [MA, NY, CT] community foundations co-sponsored a series of seminars directed at NPO's facing economic turmoil. While my focus was on fund raising, the spectre of liquidity hung over every session. Put most baldly those organizations with endowments were talking about management, those organizations without endowment or reserves were/are contemplating retrenchment [75%], merger [5%], or dissolution [15%].http://isittimetopanicyet.blogspot.com/

Loans as a Survival Strategy

2010-01-04T12:36:00.000-08:00

Loans From Nonprofit Board Members

BOARD CAFE • BY JAN MASAOKA • MARCH 8, 2009 • EMAIL PRINT

In many nonprofits, a time comes when the question arises: should the organization accept personal loans from board members? This article does not try to answer that question. It does try to outline - very briefly - some of the choices in how such loans can be made. Use this article as a starting point for a discussion with the board or a discussion with your personal financial advisor.

Fund Raising and Parents

2010-01-04T12:29:00.000-08:00

It is crucially important in independent schools to have alignment between parents and the school.

High Tech/High Touch

2009-05-27T09:35:00.000-07:00

In Tune, the BSO's e-newsletter for donors called to mind the groundbreaking book High Tech High Touch in which author John Naisbitt makes some ambitious predictions for technology's ability to enhance, and even replace, real-time face to face contact.

Segmented e-newsletters are simple to produce and are an important first step to implementing a market of one approach to effective communication.

Reasons to produce segmented e-newsletters:

Relatively low cost...primarily 'sweat equity.' Most content is already being produced for other publications.
Messaging can be tailored to the interests of a smaller subset.
Hyperlinks enable readers to make on-the-spot gifts.
Recipients can easily opt out or, conversely, can find more information and become more engaged.

Good news on the Dow means...

2009-05-26T10:36:00.000-07:00

I have discovered that there is a perfect "inverse relationship" between readership on this blog and the upturn in the Dow. During the meltdown earlier in the year, traffic to this web site and its cousin increased dramatically. The recent recession recovery may have returned billions to individuals but this windfall isn't reflected in readership. What to do? The site is free after all so I can cut my rates. More 'promotion'? We've been syndicated by some key publications. Grabbier material? It has been suggested that I could become the Perez Hilton of this region's non profits...I don't think so.

What I'm planning to do is to continue to opine on topics which are of interest to me and which, I hope, will be of use to my readers. Suggestions and the odd email are always welcomed!

Fact Check says Phil Deeley

2009-05-12T08:16:00.000-07:00

I have a great deal of sympathy for folks who make honest mistakes; but, there is a limit! I am amazed at the number of non-profits that seem incapable of maintaining, updating an accurate listing of donor and/or prospect names.

Now I am the first to admit that I once sent out a missive from the Normal [sic] Rockwell Museum. However, there are two simple steps which can help save embarrassment or donor wrath.

If you are dealing with a data base of less than 10,000 it is worthwhile to do a hard-copy printout once a year and ask certain key staff and volunteers to read through the names and addresses and mark missing or incorrect information-deaths, divorces, remarriages. Last names often get mangled, too. [vide Dealy, Deeley, Dailey, Delly and, most memorable of all, Deadly].
It's worth taking a lead from The Social Register and periodically send out a request for people to update/expand their own listing. [This can also help fill in missing data such as current email addresses or second home addresses.]

On Line 'friend raising'

2009-05-01T08:00:00.000-07:00

I thought that this was a good example of on-line 'friend-raising' cultivation; there's no 'ask' per se but it's a reminder...

Dear Parents and Friends,

In a few weeks, Simon’s Rock will celebrate its 40th Commencement and welcome a new group of alumni to our community. After four decades, The Rock continues to offer young, talented students a unique academic challenge. In turn, those students continue to push, critique and question, beginning with the Writing & Thinking Workshop, and culminating in the Senior Thesis.

Simon’s Rock was an eye-opening, transformative experience for me, as I know it was for many alumni and their families. It is important that the extended Simon’s Rock community show its support. Through the funding of scholarships, we can help make the Simon’s Rock Experience accessible to new generations of students.

One recent scholarship recipient, Samad Sadri, has made an incredible journey to academia in the Berkshires from his native war-torn Afghanistan. To learn more about this young man's amazing story, please follow this link to visit the Bard College at Simon's Rock website.

Thank you for your continued generous support.

Bruce Schoenberg Esq., '81

Cancer Girl's Fundraising Letter Ignored by 384 Politicians

2009-04-28T10:08:00.000-07:00

'Cancer girl' nee Jayde Bell has learned a valuable lesson about on-line fund raising-email cannot serve as a stand-alone no matter how compelling the cause.

Jayde started her own foundation called Linking the Links last year after being diagnosed with Ewing’s sarcoma, a malignant brain tumour, in September 2007Jayde was so upset by the lack of response to her fundraising lunch that she emailed Prime Minister Kevin Rudd again last week saying: “I would like to talk to you on the phone or I would like to meet you cause I am very sad that I have not got an email or letter....

The Secret of On-line Fund Raising...

2009-04-24T07:37:00.000-07:00

The Critical Third-How much will they give?

2009-04-22T10:09:00.000-07:00

According to a comprehensive research studyconducted in January, one-third of donors were 'undecided' about their intentions for the remainder of this year. My mini poll suggests that 38% of our regional non profits were either in 'crisis' or might face a crisis depending on how much money they were able to raise over the next 8 months. So what to do...the single most important message is be proactive with donors.

Don't remain motionless until "The Mailing" goes out in the 4th Quarter and then anxiously await the return envelopes. Have you sent out a 'state of the union' communication outlining your response to the economic climate? If not, why not?
Personalize communication--I'm amazed how many Berkshire County NPO's still think it works to send out a "Dear Mr. Deely [or Dooley]" letter with a generic appeal and return envelope. Too often these appeals are knee jerk staff responses to a request/demand from an ED or board member to "Do Something!"
LYBUNTS [last year but not this] Recontact them with the message 'We need you now more than ever!'

Financial Management in a Crisis/recession

2009-04-20T11:04:00.000-07:00

'What will Your Non Profit look like when the economic dust settles?' April 20th seminar.

Russell Pomerantz of Fiscal Management Associates provided insight and technical expertise in his recent seminar at Cranwell under the aegis of Berkshire Taconic Community Foundation, Ulster County Community Foundation, and the Dyson Foundation. Following an overview of historical precedents, Pomerantz led the participants through a systematic review of how to assess and implement financial priorities and develop processes-especially scenario budgeting. Pomerantz's presentation was reminiscent of recent discussions I've had with independent school board chairs regarding short and intermediate term options for dealing with the economic down turn.

The session underscored the chasm separating organizations with endowment/financial reserves and groups who rely on uninterrupted income to make payroll. Organizations with some form of financial reserve are able to plan for systematic cost reductions. Pomerantz provided a 'tool box' of tactics to help manage expenses ranging from furloughs, reducing or eliminating 'entitlements' such as annual COLA, and reducing or eliminating un/underutilized benefits.

From my perspective the single most important take-away from today's presentation was the opportunity provided by economic hard times to dispatch certain sacred cows in non-profit financial planning such as-
'Everyone should be treated the same.' In fact merit or performance based pay will likely increase in the future.
'The financial folks handle budget and program directors provide content.' Pomerantz distributed an article [CPA Journal Feb 2008] on how the CFO balances the dual role of 'visionary protector' and/or myopic bean counter.'

Undergirding Pomerantz's approach was a critical assumption-NPO's that survive will have been supported by effective engagement between staff and board. Establishing priorities, articulating the state of the organization, ameliorating the impact of income swings cannot be the sole province of even the most visionary Executive Director or the heaviest of heavy-hitting boards.

Horshin/Kaizen cont'd

2009-04-08T10:50:00.000-07:00

As the model suggests 'horshin' represents sudden, sometimes wrenching change [firing the head of GM and restructuring the auto industry or a 'save the church' fundraising campaign after a fire]. The rate of change is often sudden and immediate--the zig-zag illustrates that often, after the rush of initial enthusiasm ['hey kids let's put on a show!!] there is an inevitable pull back...if the change is positive one hopes that it's a plateau rather then a reversion to the earlier state. [Example here is the first flush of gifts in a campaign and then a sense of where do we go from here after the 'usual suspects' have either made their gifts or declined to support]. Horshin is often leader driven and requires a leap of faith.
'Kaizen' is the slower, incremental process-consensus building relying on weighing input from 'all of our stakeholders.' [In one session I used the example of a school deciding to divest itself of 100's of acres of school property. Eventually selling it to a conservation group and monetizing this real asset. From concept to execution was 5+ years.] The non-profits I work with often want to employ a kaizen approach even when circumstances demand dramatic intervention.

The Unlikely donor....a fable

2009-04-04T09:40:00.000-07:00

My first year as a full time fundraiser I attended a seminar on philanthropy 101 and was given the following to encourage me to never overlook a potential donor. Is it true?...seems as though it was written to inspire rather than recount a real historical event and yet....

You can easily judge the character of others by how

they treat those who can do nothing for, or to, them

Malcolm Forbes

A lady in a faded gingham dress and her husband, dressed in a homespun threadbare suit, stepped off the train in Boston, and walked timidly without an appointment into the Harvard University president’s outer office. The secretary could tell in a moment that such backwoods, country hicks had no business at Harvard and probably didn’t even deserve to be in Cambridge. She frowned.

“We want to see the President, “ the man said softly. "He'll be busy all day," the secretary snapped. "We’ll wait," the lady replied. For hours, the secretary ignored them, hoping that the couple would finally become discouraged and go away. They didn’t, and the secretary grew frustrated and finally decided to disturb the President, even though it was a chore she always regretted.

“Maybe if they just see you for a few minutes, they’ll leave, “ she told him. He sighed in exasperation and nodded. Someone of his importance obviously didn’t have the time to spend with them, but he detested gingham dresses and homespun suits cluttering up his outer office. The President, stern-faced with dignity, strutted toward the couple.

The lady told him, “We had a son who attended Harvard for one year. He loved Harvard and was happy here. But about a year ago, he was accidentally killed. My husband and I would like to erect a memorial to him, somewhere on campus. “

The President wasn’t touched; he was shocked. Madam, he said gruffly. “We can't put up a statue for every person who attended Harvard and died. If we did, this place would look like a cemetery.”

“Oh no,” the lady explained quickly. “We don’t want to erect a statue. We thought we would like to give a building to Harvard.”

The president rolled his eyes. He glanced at the gingham dress and homespun suit, then exclaimed “A building! Do you have any earthly idea how much a building costs? We have over seven and a half million dollars in the physical plant at Harvard.

For a moment the lady was silent. 'The president was pleased. He could get rid of them now. And the lady turned to her husband and said quietly, “Is that all it costs to start a university? Why don’t we start our own? Her husband nodded. The President’s face wilted in confusion and bewilderment.

Mr. and Mrs. Leland Stanford walked away; traveling to Palo Alto, California where they established the university that bears their name, a memorial to a son that Harvard no longer cared about.

The Way we were [are?]...

2009-04-04T09:04:00.000-07:00

Prior to the session on fund raising in a recession participants were asked what was on their minds...

Sustaining the annual fund

15 (75%)

Launching a capital/special campaign

3 (15%)

Reinvigorating/concluding a capital campaign

1 (5%)

Coping with program/staff cuts

1 (5%)

Strong-we've got a solid base.

2 (10%)

OK-we're seeing a bit of softness.

10 (52%)

Uncertain-we just won't know until December 31...

5 (26%)

DANGER-we've got to do X by June 1!

2 (12%)

Loans from the board???

2009-04-02T13:36:00.000-07:00

Blue Avocado looks at loans and lots of other survival strategies, too! A number of us who live in western MA remember a country day school that survived the 1970's and 1980's thanks to some timely, unsecured loans.