4 comments - Last on 01/28/2010

Text: $27 million and counting...

Nonprofit bloggers around the world are adding new tags and keywords to their entries:  mobile giving, text donations, cells phones for philanthropy, etc.  Mobile Giving has smashed all prior records with $27 million raised in $5 and $10 donations in the first week after Haiti's devastating earthquake. 

Joanne Fritz published an excellent Blog post on Monday, stating 4 Reasons Why all the stars were aligned for this new technology to make history:  1. Use of mobile phones has reached a critical threshold; 2. Mobile Giving was ready; 3.  Red Cross was ready; and 4. The Red Cross marketing campaign is over the top effective.  Be sure to read her post for some great insight. 

Mobile Giving does have its critics who say that $5 and $10 gifts are "small potatoes" and it doesn't offer the opportunities for the relationship building that is crucial to sustainable fundraising.  And, I don't totally disagree.  However, texting as a quick and easy vehicle to give is here to stay for now and every charitable organization should watch it closely and consider ways they can "make it easy" for people to help.  

What do you think?

P.S.  Kudos to the wireless phone carriers:  Verizon, AT&T, Sprint, T-Mobile and others for stepping up to advance "verified" donations pledged through texting immediately.  Normally this transfer of funds can take one to three months however these companies are doing their part to get aid to Haiti ASAP.  Read more about it at MSNBC where you can also see the latest  list of fourteen major charities accepting text donations.

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Haiti: Disaster App

Less than 24 hours after the devastating earthquake in Haiti, the Red Cross has raised over one million dollars through $10 instant texting! Whoa. Just as 9-11 launched Internet fundraising and Katrina honed online giving, the Haiti 7.0 is going to put “Text-Giving” on the radar for charitable organizations. This vehicle may seem unconventional, but remember, polio was essentially cured by the greatest collection of dimes of all time – The March of Dimes!

Most disaster giving comes in the first six days following an event. There is a visceral reaction to the devastation and often the ability to “do something” helps release us from the pictures on television and the sense of helplessness they provoke. Many of us will join the text-giving revolution in the next few days, but remember - it’s only $5 or $10. As the dust clears and you are able to see which organizations are doing what to help the over three million affected Haitians, consider making a meaningful contribution to the effort.

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2 comments - Last on 01/25/2010

Invest in Your Professional Fundraiser

Small and mid-size nonprofit organizations are beginning to get it:  Fundraising is a proactive, professional initiative and its success is directly related to the investment in time and talent.  A trained, committed and enthusiastic professional fundraiser can turn your strategic plan into an action plan; motivate your board of directors to commit to a 12-month fund development initiative; and engage your major donors, year-round, in meaningful ways.  Oh yes - and raise more money for your mission.

Make 2010 the year to invest in your fundraiser: 

• Encourage his/her professional development and interaction with colleagues
• Ask your fundraiser to access resources (donor management system, website, budget)
• Consider time management challenges in terms of the “return on investment”

NYU’s Winter Intensive  offers some great opportunities for your fundraising staff to gain new skills and connect with other professionals and experts in the field. Check out my course on January 14th. 

If 2010 is the year your organization is bringing a professional fundraiser on staff for the first time, be sure to get professional advice when hiring.  There is a cadre of trained professionals out there who understand the link between personal cultivation and stewardship of donors and the miracles of modern technology to put the whole package together. 

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Feeding the Hungry in America

Thank you Susan Dominus and the New York Times for a half page and big color picture explaining why holiday food drives rarely help feed the hungry.  To Feed the Hungry, Spread the Word:  Cash is Preferred Over Cans offers a much needed and long overdue lesson:  hungry people do not want "cans of water chestnuts" or "bloody mary mix." 

Read the article yourself to see the facts.  However, I will add one coda to the paragraph that describes how there is a satisfying "thunk" when one puts a can in a collection bin...or how your kid can see and hold a can donation...  We owe our kids more than that.  Let's teach our kids the economics of donating money to feed the hungry and how with $50 a food bank can buy 200 boxes of cereal (rather than the 10 you can get at the grocery store).

Some progressive food banks have created educational and engaging virtual food drives.  Check out Manna Food Bank's  Mannafest Neighborhood Food Drive.   The Greater Chicago Food Depository's Virtual Food Drive  has a really cool drag and drop feature where your family can fill a grocery cart.  It's way more satisfying than the "thunk" of a can of sardines in a barrel.

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It Takes Money to Raise Money

Schools, hospitals, museums, and social service providers continue to tighten their belts as they adjust to the realities of the new economy.  Readjust services, consider efficiencies and collaborations, but please, don’t abandon your investment in professional fundraising initiatives. 

 Individuals continue to give, and in fact the impact of the recent recession was not all that bad, according to Giving USA 2009: 

“With the United States mired in a recession throughout 2008, there was no doubt in anyone’s mind that charitable giving would be down,” said (Ms.) Del Martin, CFRE, chair of Giving USA Foundation. “However, what we find remarkable is that individuals, corporations and foundations still provided more than $307 billion to causes they support, despite the economic conditions."

The nonprofit sector provides critically needed services with great efficiency.  Small organizations around the country collect donations and deliver programs, mostly free of bureaucracy and overhead.  I cannot imagine what America would look like without the services provided by our social sector and financed by individual donations.  

Every day, I encourage my nonprofit clients to bolster their fundraising initiatives by investing in professional talent and resources.  As the demand for social services continues to grow, so must our investment in making the connection between those in need and those willing to help.   

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2 comments - Last on 11/09/2009

A Word About Email Fundraising

Americans are about to experience the greatest deluge of nonprofit email appeals ("e-peals") of all time.  The reduction of paper mail in our mailboxes this holiday season will be replaced by scores of e-communications popping up in our inboxes. 

Email offers nonprofits efficiency, economy and effectiveness in getting our message out to our supporters.  A loyal donor's gift is just a click away and this Obama-esque method seems to be working.  Donors are clicking more than they mailed and giving more often and more money directly from their desktop/laptop/PDA. 

Take heed, my fundraising colleagues:  Don't let e-peals and cyber-giving cause us to distance ourselves from our donors.  Use the time and money saved through e-peals to spend more time face-to-face with your prospects and donors.  The age-old tenets of fundraising of stewardship and relationship building are more important now than they have ever been. 

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4 comments - Last on 10/26/2009

E-Communication for Nonprofits: Email Analytics

Last Thursday's Nonprofit Times posted an article about the drop in "open rates" for nonprofit emails.  Since we are preparing for the biggest holiday season to date for email appeal solicitations, this is a very timely article.  If you are into statistics, you will especially enjoy the article.  I question the size of the sampling, but based on my own personal habits, I concur with the statistics.  The more emails I get from an organization, the fewer I open.  It's as simple as that.  But that's just me. 

The emails from our favorite charitable organizations, schools and cultural groups are typically:  e-newsletters, calls to action for volunteers/advocates or solicitations.  Paper mail is becoming outmoded and stamps are way too expensive.  E-correspondence saves money.  However, the REAL value is analysis or analytics.  With old-fashioned mail, we had no idea what arrived at a valid address; what was opened; what was read and how carefully the prospect studied our materials.  The inexpensive ISPs such as Constant Contact and Vertical Response identify: incorrect addresses, open rates, bounce rates, click throughs and forwards. 

If you are using e-communications, budget the time to do the analysis.  It will inform your frequency and content; it will identify some very good prospects.  Good luck.

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Annual Appeal: Email or Direct Mail ... redux

How nice to have comments.   (Of course it helps that I bribe my Masters students, offering extra credit for their comments on my blog.)

There is so much to say about email vs direct mail (in reaching out to prospective donors) that another blog entry is in order.  Certainly, the email appeal should mirror the original appeal as should it mirror the donation page of our website.  Branding and a uniform Case for Support will help donors understand that we know what we're doing.  Repetition is good as long as we tweak the presentation to get people's attention.  Some respond to a long letter, others respond to a great photo or a catchy phrase.  The important thing is to analyze and measure the response to different presentations of your appeal.

Just as we pay special attention to the look of the envelope in direct mail (make the prospect feel he/she is going to miss something if he/she does not open that envelope,) be sure to consider very carefully exactly what you will say in the subject line of the email appeal.  Gather the creative energy of your staff together to brainstorm a subject line that will implore the prospect to open and read the email.   

The onslaught of annual appeals is about to begin.  Study carefully which ones make an impression on you, and why. 

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2 comments - Last on 10/12/2009

2009 Annual Appeal Readiness: Email or Direct Mail?

Two short years ago, one of my NYU students inquired whether it was considered good practice to send an Annual Appeal by e-mail.  At the time, I replied, "Absolutely not."  The Annual Appeal letter, like the official thank you note, was sacrosanct - it should be formal, official and worthy of first class postage.  Fast forward to Fall 2009 and boy, have I changed my tune.  Forty four-cent stamps;  lean nonprofit budgets; increases in demand for our services; and first-rate, economical email service providers such as Constant Contact  make email appeals the method of choice for many organizations.

In fact, if you are one of the organizations lucky enough to have valid email addresses for most of your constituents, you will be able to analyze the impact of your E-appeal in ways that will revolutionize your future planning and goal setting.  Be sure to use an email service provider that offers analytics including:  who opened the email; how much time did they spend reading the email; who went back to it more than once; which addresses are invalid; and more.  

Of course, you must have seamless online giving on your website to which your donors can quickly click and donate.  Overall, online giving is still in its childhood stages and represents a small piece of the pie.  However, those charities that make the process of giving online easy and efficient and successfully drive their donors to the site (just a click away with an an email appeal) do quite well.  Their donations are typically higher than mail-in donations.  And, those who make their websites dynamic, newsy and interesting attract return viewers and additional donations.

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2009 Annual Appeal Readiness: Six Fundamentals

If, like most charitable organizations, you send out your Annual Appeal at holiday time, now is the time to prepare.  Whether it is a direct mailing or an email appeal, prepare the case, strategize the initiative and budget for the time and resources to do it well.  Consider these six fundamentals for success:

1.  Build your case for support:  Give the prospective donor a reason to invest in your organization and mission.

2.  Write an excellent letter of appeal:  Convene a committee of staff members representing different areas of the organization and brainstorm together to create a letter representative of the culture of your organization.  (Don't outsource your appeal letter.)

3.  Use your donor database to personalize letters:  Generate letters that are targeted to different groups of people and segmented by the amount of the ask.  (Be sure to ASK.  I've seen dozens of appeal letters that neglect to ask for a donation.)

4.  Instill confidence:  Let the reader know you are still in business and dealing professionally, intelligently and thoughtfully with economic challenges.

5.  Grab 'em with the envelope or subject line on an email:  Your letter has about 20 seconds to possibly stay alive in the hands of a prospect (before being relegated to the garbage can.)  An email may have an even shorter life.  Make the prospect feel he/she is going to miss something important if he/she doesn't open the envelope or read the email.

6.  Set Goals:  Set goals to retain and upgrade current donors first.  Concentrate your efforts on those who have already invested in your cause. 

Good luck!

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Insurance Coverage for Nonprofits

All too often, Board Members' eyes glaze over when the topic of "insurance" is raised at meetings.  In actuality, not only are boards liable for the decisions they make, the actions of their staff and the accusations of disgruntled employees; but as a board member you could be held personally liable. 

Before joining a board, ask the question:  Do we have Directors and Officers ("D & O") Insurance and if so, how much coverage do we have? D & O Insurance protects an organization's board members and officers from liability in the event a lawsuit is brought against them relating to the organization.   You have probably heard about Princeton University and the litigation of the alleged misuse of Robertson Foundation endowment.   However, small nonprofits face this liability as well.  The D & O insurance covers the board for the decisions they make, employment practices liabilty and fiduciary liability.  

Take a look at this important article from the Nonprofit Risk Management Center.    

My good and trusted friend, Josh Bradford, Risk Management Consultant at Rue Insurance in Hamilton, NJ offers the following sage advice to nonprofits :

• Remember that nonprofits' needs are unique; find an insurance company that specializes in nonprofits
• When considering an insurance agent, ask for a number of references of nonprofit organizations similar to yours and CALL THE REFERENCES
• Find an insurance agent that is pro-active in assessing your particular needs
• Beware of:  coverage gaps, underinsured property, using a variety of insurance companies, and brokers who are distant and out of touch
• No matter how trusting you are of your employees....be sure you have Crime Coverage.  Read this great blog posting on Nonprofit Embezzlement -- it's an eye opener! 

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The Nonprofit Board of Directors: Best Practices for Fundraising Success

Business has been booming this summer with many requests for me to facilitate Board Retreats.  The retreats are customized and designed to address the specific challenges facing each group.  However, there are many universal similarities. Is your board facing these challenges that often get in the way of fundraising success?

• Lack of leadership rotation
• Weak process of board member recruitment
• No written Roles and Responsibilities for Board Members
• Outdated By Laws
• Confusion of governance vs. operations
• Misunderstanding of fundraising responsibilities

Take a few minutes to read back to my blog postings of February, 2009 for some great reading and useful links to resources for your board.  Also, be sure to check out my recent article in Success in Fundraising Magazine:  Success in Fundraising Starts with the Board of Directors.   

Good luck!

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Succession Planning: Now is the time

Last week, at our quarterly roundtable meeting of the Nonprofit Executive Council of the Mercer Regional Chamber of Commerce, the discussion topic was Succession Planning.  The lively group of fourteen mostly "founders" was engaged and not at all wary of speaking in terms of "their" nonprofits after they have retired or moved on.

As the facilitator of the group, I collected the enlightened comments and I would like to share them with you.  But first, the stats:

1.  10-12% of the 1.6 million nonprofits in America are undergoing a transition of executive directors at any given time

2.  71% of transitions are non-routine (unexpected)

3.  75% of nonprofit EDs expect to leave their positions in the next five years

4.  29% of nonprofits have a succession plan.

YOU DO THE MATH.

Simply put, and in no particular order, the comments were as follows:

1.  Communicate with your board re:  succession planning...NOW

2.  Transfer all the information (especially relationship information) out of the head of the ED and onto paper or into a database

3.  Strengthen: your board, your financial systems, your technology systems, your filing systems

4.  Consider succession planning as an impetus to strengthen the skills of your management team

5.  Create a working document journal.

As for the transition process, some of the more salient comments were:

1.  The way you present your successor to the community and to your constituents will set the tone going forward

2.  Be sure to show your successor where the land mines reside and where the bodies lay buried

3.  Pass along the relationships - with constituents, donors and loyal supporters

4.  Once your successor is in place, get the heck outta Dodge!

Creating a plan and preparing a roadmap for succession, whether you have plans to leave or not, will considerably strengthen your nonprofit organization.  Remember EDs ... it's not about you; it's about your responsibility to your constituency.

Great resources on this topic from the Annie E. Casey Foundation Knowledge Center.

Good luck. 

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Best Practices - Charity: Water

Nicholas Kristof's column in today's NY Times:  Clean, Sexy Water features a terrific example of best practices in fundraising and nonprofit management in today's economy.  After reading the column I was prompted to visit the website of Charity:  Water and much to my delight I found a number of examples of collaboration, articulation of the case for support, personalization of the donation and social entrepreneurship (yes, nonprofits can, and should, have a profit making arm to help fund the mission.)    The Get Involved page makes it inviting for you and your group to get in on the action.  Donors get naming rights and GPS coordinates to see their wells.  The first Twestival organized by volunteers last February, which raised $250,000 for the cause was an example of social network fundraisng at its best.

Click away on these links for some excellent examples and consider what might be applied to your organization to help achieve best practices in fundraising.

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Fundraising in The Republic of Georgia

Shout out to my newest friends:  four visiting Georgian students involved in an intensive summer program at NYU.  Dato (David,) Deduna, Mariam and Salome are recipients of a prestigious grant to study arts administration and nonprofit management for two months this summer.   Yesterday, I spent the afternoon with them talking about fundraising and board governance in the Republic of Georgia.

My new friends are a talented group -- a singer, a jewelry maker and a filmmaker -- and they all stressed to me the incredible arts talent that pervades The Republic of Georgia.  With no nonprofit structure as we know it, and no culture of giving to public benefit organizations, they struggle to compete for the limited foundation dollars available.

They came to NYU to search for a model and to take with them some of the fundamentals of the culture of philanthropy that has built a great society of arts in the United States.  I wish my new friends well and look forward to seeing what they build, with the tools they acquire this summer, to help support the great talent and passion for the arts in Georgia.

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Accountability...to whom?

The villain, Bernie Madoff awaits his sentencing and most people in the nonprofit  sector are hoping for the full 150 years.  What was he thinking when he put so many vital organizations' precious endowments at risk?  Could anyone be that evil?  It’s hard to imagine.  Rather, I believe he actually thought he was doing some of our nation’s largest charities and philanthropists a big favor.  He probably did not even consider the possibility that he could fail.  

Nonprofit boards are highly accountable.  Their business is not private, it is public.  Nonprofits are responsible to their donors, their clients, our communities and to society as a whole.  They must be held to a much higher standard than the business sector.  Maintaining best practices when it comes to board governance and transparency when it comes to deliberations will ensure that special dealings such as the Madoff opportunities are avoided. 

Do I make it sound simple?  It is. The resources are plentiful and readily available.  Summer is a great time to plan a fall retreat to concentrate on your responsibility as a board to set the standards high.

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The Nonprofit Blog: Raison D'Etre

Today's article in the New York Times, "Blogs Falling In an Empty Forest," cites the enormous failure/abandonment rate of blogs.  A 2008 survey showed that only 7.4 million of 133 million blogs tracked had been updated in the past 120 days.  June 09 marks the six-month anniversary of The Nonprofit Blog and I am proud to say I keep it updated with a new post at least two times a month.

The Times article got me thinking about why I write this blog and what keeps me motivated to keep it current.  After my own history of the abandonment of "the book project,"  I recognized my blog as an alternative venue to offer my reflections on the fundraising challenges of the nonprofit sector.  After learning more about website optimization and the value of links, I began to post more and more  link-clicks to timely valuable resources for fundraising/development professionals. 

I find myself referring my nonprofit clients,  NYU students and my workshop participants regularly to the blog for current checklists, how-tos and best practices.   Over the past six months I have truly seen the value of this media over that of my abandoned how-to fundraising book which never would have been able to keep up with the advances in technology and methods to compete for charitable dollars in this depressed economy.

On the other hand, the basic fundamentals of fundraising still reign supreme.  My colleagues Jim Collins and Kay Sprinkel Grace have each written a classic .  These books reside in my briefcase and accompany me to every client meeting and class I teach.

My wisdom for today is to remain true to the fundamentals of fundraising.  At the same time, dig through The Nonprofit Blog and you will uncover a wealth of free information that will help you capitalize on the current and timely resources sucessful fundraisers use to to implement the fundamentals of fundraising in these challenging times.  It's pretty valuable stuff ... if I say so myself.

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The Donor Database

I continue to be amazed at the lack of attention to, and understanding of, the role of a donor database in many nonprofit organizations.  With the variety of low-cost, highly effective donor management software programs on the market today, there has never been a better time to integrate this technology into your fundraising plan, regardless of your budget.

To reiterate my comments of my January 27th blog posting, a donor databse is NOT an electronic rolodex.  It is a powerful fundraising tool.  Again, I invite you to review some of the excellent resources noted in my prior posting. Find the right software for your organization and invest in training in order to learn how to use it properly.  The result will be an accurate, sustainable body of information that will help you and your successors build the partnerships necessary to raise more money for your nonprofit.

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Encouraging news from our local nonprofit agencies

I have always believed that few Americans give to their full capacity and if we can continue to build a culture of giving money, particularly to our small nonprofits, there will be a great impact on our grassroots nonprofits and their ability to deliver services. 

My Op Ed was published yesterday in The Times (Trenton) which reported that last December, in the midst of the stock market free fall, Mercer County, NJ's local nonprofits fared quite well in their annual appeals.  Perhaps our citizens are finally understanding the value of a $50 or $100 donation to the local charities about which they care so much.  It's not enough to sit on a board, volunteer at the soup kitchen or run in a race.  If you believe in these nonprofits, a cash investment in their infrastructure and their ability to hire the best and the brightest is what will truly make a difference in our communities.

Every day we are seeing the cancellation of galas and the postponement of golf outings.  It's not such a bad thing.  At a time like this, with the social sector needs growing every day, let's get your money right to where it is most critically needed:  into the infrastructure of these important agencies.  Be sure to check out my article and you will see evidence of the impact of your donations. 

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Fundraising Events in 2009??

To have an event or not to have an event in this recession: that is the question.

Never a big proponent of galas and dinners as effective fundraising vehicles, I have been advising my clients to take a pass on them this year. It is a great year for friendly gatherings, thank you dinners, educational programs and other cultivation opportunities which keep our supporters close and teach them more about our work. Concentrate on keeping connected to your donors and prospects, even if they do not come forward with the big bucks at this time.

In today's NY Times (right under the "Cellphone Teaches Sex Education" article and to the right of "With Swine Flu, A No-Pucker Zone") is a very important article: "I'm Honored. No, Actually I Can't Afford It" which talks about the dearth of high-profile honorees as a result of those honorees' inability to sell the tables and garner the donations for which they have been historically responsible. The article warns us: "With honorees in short supply, the entire fund-raising ecosystem on which many nonprofit institutions depend - especially those reliant on the financial sector - is endangered."

To repeat my mantra, which is reflected throughout the pages of The Nonprofit Blog: get back to basics. Concentrate on the fundamentals of fundraising which revolve around long-term personal cultivation of your best prospects and stewardship of your current donors. Keep them keep them interested and keep them close. When the economy improves, if you're still standing, you will be glad you kept these folks engaged during this down time.

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Changing Careers: So You Want to Work for a Nonprofit?

Lately, lots of folks have asked me how they might make the career change from the business world to the nonprofit sector.  The thinking generally is that since jobs are scarce in the for-profit world, this might be a good time to make the switch and work at something that might have greater self-meaning and greater impact for the common good of society.

It's not that easy.

The nonprofit sector demands its own special skill set, tools and experience.  Like anything, you can learn on the job but if you wish to make an impact, you will need to bring real skills to help drive your passion.  In last week's blog posting, I talked about the importance of professional development.  Yesterday's article in the NY Times about Kip Schaefer, one of our NYU masters students at NYU's Heyman Center, really demonstates the very best way to prepare oneself to bring value to the nonprofit world. 

You also must read Good to Great and the Social Sectors by Jim Collins if you want to learn more about the culture of the nonprofit world and what it takes to bring greatness to any business - profit or nonprofit. 

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Cutting Back on Fundraising Expenses

I have had calls from several development directors who have recently been laid off.  It seems like a contradiction:  investing less in the development initiative at a time when funding, on all levels, is in peril.

In cases where your development director has not been producing, you probably are justified in letting him/her go.  However, if you have a development professional with a strong commitment to your mission and a willingness to grow, learn and continually improve his/her skills, this is the time to invest in professsional development.

Fundraising today is based on a science of tools and strategies, coupled with a comprehensive program of relationship buildingsteps.  Yes, some of the tactics are intuitive, but much is based on an extensive body of information that is best gleaned in courses and workshops shared with your colleagues in the field and taught by professionals.

In the New York area, check out:  The Support Center for Nonprofit Management and the Heyman Center for Philanthropy and Fundraising at NYU. 

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March Madness

My daughter Allie received this March Madness fundraising email today.  It speaks for itself. 

What a terrific appeal!

Click this:

   Open PDF file ( 99.95KB) . . .

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Michael Phelps Loss / Food Bank Gain: A Unique Fundraising Opportunity

Have you heard the latest Michael Phelps story? Two weeks ago the San Francisco Food Bank received two tons of Kelloggs Corn Flakes and Frosted Flakes with the Olympic hero's picture on the front of the boxes. It seems as though this cereal was unsaleable after Kelloggs dropped Phelps' endorsement contract, as a result of the pot-smoking photo of Phelps that appeared in a British tabloid.

This unfortunate series of events was terrible for Michael Phelps, bad for Kelloggs, but great for the San Francisco Food Bank. Cereal is among the most coveted food sought by the increasing numbers of families dependent upon food banks. In commenting on this windfall, Paul Ash, executive director of the food bank was most appreciative and said that the Phelps cereal boxes "flew off the shelves." Now...here's the part I just don't get: It seems to me that a few of these rare and collectible cereal boxes could bring in big bucks on e-Bay. According to the NPR report, Ash said they would not be auctioning these souvenir boxes off on e-Bay -- that would be a violation of their donations policy.

I have no idea how many boxes there are in two tons, however, imagine if the food bank took a mere dozen of those boxes off the shelves and offered them on e-Bay. Each box could easily bring in $1,000 and they could raise $12,000. In my experience, $12,000 buys six times that amount of food at USDA / food bank prices. That's the equivalent of $72,000!! Mr. Ash, make an exception to your donations policy-- sell a dozen boxes and and consider the added value of this extraordinary donation. 

I think you are missing a unique opportunity.

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Obama's Tax Plan = Disaster for Nonprofits

Obama's new tax plan will be devastating for nonprofit organizations.  I expressed this point of view in a letter to the editor yesterday and I have been reading comments of others involved with philanthropy as well.  I would like to draw your attention to the article that appeared yesterday about the recent Bank of America study on the effect of taxes on giving .  Check this out -- the study states: That said, a significant minority (47 percent) of people in the survey reported that they would give less if they could no longer claim a deduction for their charitable gifts. Of those respondents, 37 percent said their contributions would “somewhat decrease,” while 10 percent said their gifts would “dramatically decrease.”  And even more chilling is the fact that this survey of wealthy individuals took place in July - August 2008, before the stock market plunge, Madoff and the current economic crisis. 

There are many ironies to this notion of penalizing wealthy philanthropic individuals.  The most glaring, which has also been mentioned by some of my colleagues, is that the inevitable reduction in philanthropic funding for medical research and for our major hositals will be disasterous for the very system of healthcare that Obama is trying to bolster with increased taxes. 

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Expand and Diversify Your Board of Directors

The dynamic nonprofit board enforces term limits, rotates leadership and actively recruits new members.  Thereby the board enlarges its circle of influence, attracts new skill sets, expands funding sources and strengthens its organization.

"But how," I am often asked by clients, "do we find new board members?" 

First:  Make some agreements as a board.  Envision a dream team with new skills, varied life and professional experience, and leadership qualities.  Consider potential members of different ages, genders, races and background --- each of whom must be a match for your organization.  Agree to dedicate the time to cultivate new prospects in the same way you cultivate donors for major gifts.

Second:  Look in your own backyard.  Consider donors, volunteers and groupies of your organization.  If you are like most nonprofits, you probably have constituents who know and care more about your mission than some of your own board members.  Don't overlook the obvious suspects.  Consider recruiting past board members who may have had a break but can come back and reinstill some of the values of years past.  Next, cast a wide net and an open search for others in the community.

Third:  Make a commitment to preparing for "the ask," again, in much the same way you would ask for a donation.  Do your reseach, consult with your fellow board members and have a plan before you meet with the prospect.  Speak passionately about your own board service and how it has affected you personally.  You are presenting the board prospect with an opportunity to serve the community and help change lives; it's quite an honor! 

Fourth:  You owe it to your new board members (and your veterans) to conduct a full board orientation at the beginning of each year.  Current board members should recommit to the mission and be inspiring to new members.  At the orientation, take the time to reflect on the board member recruitment process and consider how you can continually improve it.

Finally: In thinking about board service at your nonprofit organization link to the ideals of President Obama in his call to action to help Americans consider how we all can commit to service to our communitites.

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The Role of the Nonprofit Board in February 2009

The Board of Directors is the steward of a nonprofit organization and it is the board's role to ensure that the mission is carried out.  This has never been more important than today - in February, 2009.

Donations are down, government funding is tentative and foundations have less money.  At the same time, the demand for services, scholarships, programs, and advocacy is soaring.  Funders will be asking:  "Is your organization a good investment for me?"  Potential funders will want you to show them how you have planned to meet the needs of the community and simutaneously positioned yourself to survive possible funding cuts.  It will be critically important for the board members to publically demonstrate their confidence in and financial support of the organization.

Remember:  Your community has needs and your organization is in the position to meet those needs.  This is an era for board members to step up to the plate; learn, practice and present the case for support and be spokesmen for your organization and mission.  Invest in board training to help make your board service worthwhile to you and to your organization. 

Take a look at these excellent books:  Fundraising Realities Every Board Member Must Face by David Lansdowne, Asking by Jerold Panas, and The Ultimate Board Member's Book by Kay Sprinkel Grace. 

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All A-board!

Roll up your sleeves nonprofit board members; there is important work to be done.  If you are committed to your organization, believe in the mission and have confidence in your staff, you can stay on board.  If you waver in your financial and emotional support, are unfamiliar with the programs and second-guess the professional staff, you better get off the ship and head ashore.  To navigate the rough waters ahead, your nonprofit organization will need all hands on deck!

During the month of February, The Nonprofit Blog will offer topics for discussion and recommendations for action for your board of directors as they take on the challenge of making preparations for a tough year.

Every nonprofit organization, school, congregation and public benefit group should be actively rethinking their activities and creating contingency plans.  Fiscal Management Associates and the Nonprofit Finance Fund offer tools, checklists, tips and a free webinar from their December 2008 event:  The 2009 Nonprofit Economic Climate:  Managing through the Downturn.  These resources offer a good framework to begin a discussion of the ramifications of increased need for services and programs while adjusting for decreases in funding - how to do more with less.  I recommend you take advantage of these free resources and get some of these topics on the agenda for your next board meeting.

What other board-related topics would you like us to address this month?

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6 comments - Last on 01/29/2009

Recession Fundraising:
Getting back to donor data base-ics

It amazes me how many nonprofit organizations do not take advantage of the low-cost, skillfully designed donor management software that is on the market today.  

Microsoft Access and Excel are not donor databases.  Yes, they are an improvement over keeping your notes on cocktail napkins, but they are merely electronic rolodexes.  A donor database is a dynamic tool that helps you record donations, thank supporters and actively cultivate loyal relationships with your donors that will lead to sustainable partnerships; yes, even in these hard times.

Where to begin?  A google search of "donor database" results in over 1.3 million hits.  Ugh.  Techsoup  weeds through with a good comparison chart available for free download.  If you're just getting started, read Robert Weiner's article at  the Network for Good Learning Center. Also, read Weiner's classic article:  Ten Common Mistakes in Selecting Donor Databases.  Once you begin to get a sense of what's out there, get references from development directors who use these databases.

I would love to have you join me for my free teleseminar on Feb. 23rd: Using Donor Management Software to Build Profitable Relationships.  We'll discuss specifics of what your database can and will do for you (if you put in the time and effort.)  I will be offering tips on finding the right software for your organization and setting it up to help you set aggressive goals and achieve them; yes, even in these hard times.

Take a look at GiftWorks by Mission Research.  It is a high powered, dynamic fundraising tool.  The website offers a great video library of  demos as well as free live online tours.  Mission Research is committed to helping their users get the most out of their software.  They understand fundraising and strive to offer a product that responds to the needs of  development director in this challenging economic climate.  The phone support desk is terrific and the  price for the Standard Edition is only $399!

The use and selection of a donor database is an important discussion and I hope some of you will comment on the donor management software you use and its value in your fundraising initiatives.

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1 comment - Last on 02/02/2009

Lessons from Barack Obama

The eyes of the world are on Washington, DC today as billions of people join the US citizens in hope for the administration of President Barack Obama.  There is a stirring sense of optimism that we can build a better world at this turning point in history.

Three million people made 6.5 million donations online to Obama, totaling a half billion dollars!  Most were first-time political donors, contributed $80 on the average, and gave more than once.  Through email, text messaging and social networking, Obama combined the most basic fundraising fundamentals (relationship building, volunteerism, donor involvement) with cutting-edge, yet inexpensive technology that could reach an unprecedented number of citizens.  His fundraising costs were 5 to 10 cents on the dollar compared to 95 cents, the average for direct mail.  Read about this and more. 

In the coming years, many will be looking to our nonprofit sector with the same hope that we can build a better world for our children. The nonprofit community must take its inspiration from Barack Obama.  I urge you to study his campaign and this historic groundswell of grassroots support and consider what elements you can apply to your own mission.  A terrific article by David Erickson on the eStrategy Internet Marketing Blog will help get you started. 

In the coming years, the challenges to the nonprofit sector will be enormous.  We will need the participation of our friends, neighbors and all citizens.  Make the case - get the word out - sincerely engage the support of  people who want to help and want to be part of initiatives that will change our world for the better.

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2 comments - Last on 01/16/2009

Are you onboard with online fundraising?

The January 15th Chronicle of Philanthropy states that online donations through major giving sites continued to grow in 2008 even though there was drop off in the last quarter.  Take it from me:  online giving is here to stay.  Even if you are an organization whose donors do not typically use the internet to donate, you can be sure that in rapidly increasing numbers, potential donors are going to your website to help make their decisions.

Network for Good recently published an excellent free publication entitled:  The 2008 Online Fundraising Survival Guide:  12 Winning Strategies to Survive and Thrive in a Down Economy .  It is easy to digest and chock full of great strategies to raise more money in the context of websites and emails.  It also includes some good links to important information on website optimization (the 2009 term for direct mail.)  Remember, your website has little value if no one is going to it.   There's a link to learning how to be a fundraising superhero  - an important quality for the challenges that lie ahead.  Don't miss Steps 9 & 10 on cleaning and building your email lists; it addresses these often asked questions.  In fact, I recommend reading every single page of this terrific publication.  It's full of tried and true fundraising fundamentals, great links and timely information.

Let me know how you like it.

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2 comments - Last on 01/27/2009

Tell Us How You REALLY Feel About Your Website

When asked about their organizations' websites, many fundraisers remark:  "Don't look at it right now because   ...it needs to be updated;  ...we're in the midst of a web-makeover;  ...the donation link is a little sketchy;  ...I'm not responsible for it."  In 2009, those answers are not acceptable.

Your organization's website is your billboard and your chance to make a good impression.  Whether or not your prospective donors plan to give online, you can be sure they are going to your website to help them decide whether to make a donation and how much of a donation to make.

Does your nonprofit organization's website:  Reflect your mission, achievements and potential?  Demonstrate that you are ethical, competent and accountable? Reach out, engage visitors and and draw them in to explore and get involved? MAKE IT FUN AND EASY TO MAKE A DONATION?

Check out Principles for an Effective Nonprofit Website for guidelines, checklists and best practices for your organization's website.  You are also invited to listen to and share my recent tele-seminar on "Technology for Fundraising" downloadable from the upper left corner of this website.

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Technology for Fundraising

Clients are lined up at the door.  Holiday Appeals may have fallen short and eveyone is nervous about money.  Now is the time to roll up our sleeves and consider our strategies for 2009:  How will we instill confidence in our funders and donors?  Let's start by shoring up our own self-confidence with some solid planning and goal setting for our fundraising initiatives.  Integral to this planning will be our Strategic Plan for Technology.

In the month of January, The Nonprofit Blog will focus on technology planning for nonprofits.  I am not referring to "when to buy new computers" but rather about how to connect your technology needs and planning to your fundraising initiative.

If you are looking for greater efficiencies in your development office; ways to keep your funders and donors engaged and secure about their investments in your cause; and innovative ways to raise more money, stay tuned.

Send us your technology questions and our team will address them this month.

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1 comment - Last on 01/19/2009

Madoff

The name is fitting but there is nothing funny about the wordplay:  Bernie Madoff (made off) with our endowment.  His contemptible game has stripped some of our most distinguished philanthropic leaders of their fortunes and thousands of recipients of their largesse will be deprived of nonprofit services. Hospitals, schools and museums have lost critically important dollars that support vital programs.

Just when we thought things couldn’t get worse for the nonprofit sector, along comes this ponzi of indescribable magnitude.  We cannot blame our stewards of philanthropic dollars for investing with  Madoff.  After all, look at the company they kept - The List So Far.

Early fatalities include three distinguished foundations:  Robert I. Lappin Charitable Foundation , Chais Family Foundation and the JEHT Foundation (Justice, Equality, Human Dignity and Tolerance.)   Surely more will follow. Read more in the NY Times.

Lots of people lost their personal fortunes with Bernie Madoff  but for the philanthropic sector, the tentacles are devastatingly far reaching. 

Have you lost a major donor or a portion of your endowment?  How did you handle it? What advice do you have for our readers?

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1 comment - Last on 02/26/2009

Out of the Box Thinking: Collaboration & Merger

The scarcity of government funding; competition for foundation grants; uncertainty of corporate giving; concern about individual donations; and an unprecedented demand for social services and programs, indicate that it is time for some out of the box thinking.

The recession has set the stage for nonprofits to seriously consider collaborations for greater efficiencies.  I would even make the case to consider collaborating with organizations that provide different services but could share administrative functions such as HR and bookkeeping.  Surely there are some colleagues out there with whom you could brainstorm, experiment and  build new ideas with more efficient methods to serve your community. 

And, if the dating goes well, there might just be a merger in the offing.  Banks do it, automobile companies do it, law firms do it, airlines do it.  All too often in the nonprofit world, mergers occur when one organization is at death’s door (often due to lack of a transition/succession plan…and increasingly due to lack of money.)  That would be a take-over.  I’m talking about two strong organizations working strategically to build something greater together than they could ever manage separately.  Think about it.

Are any of our readers already involved in, or considering a collaboration or merger?  Can you offer some advice?

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Transition - Succession

The baby boomers are retiring in record numbers.  Studies indicate that 50% - 70% of nonprofit executive directors will retire by 2010.  90% of organizations do not have a succession plan. Do you have a strategy for a planned or emergency transition period or a succession of executive leadership?

Whose job is it is to take this seriously? 

Of course the board is the steward of the nonprofit organization and should take it upon itself to create a plan for its sustainability.  However, to be successful, the impetus for creating such a plan must come from the executive director him/herself.  If you truly take pride in that which you have accomplished, it should be important to you, as the exective director, to know that your work will carry on after your tenure. 

I guarantee your organization will experience a sense of renewal and a growth spurt as you consider a plan for transition and executive succession.

What do you see as advantages or impediments to putting such a plan in place?

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Text: $27 million and counting...

Nonprofit bloggers around the world are adding new tags and keywords to their entries:  mobile giving, text donations, cells phones for philanthropy, etc.  Mobile Giving has smashed all prior records with $27 million raised in $5 and $10 donations in the first week after Haiti's devastating earthquake. 

Joanne Fritz published an excellent Blog post on Monday, stating 4 Reason Why all the stars were aligned for this new technology to make history:  1. Use of mobile phones has reached a critical threshold; 2. Mobile Giving was ready; 3.  Red Cross was ready; and 4. The Red Cross marketing campaign is over the top effective.  Be sure to read her post for some great insight. 

Mobile Giving does have its critics who say that $5 and $10 gifts are "small potatoes" and it doesn't offer the opportunities for the relationship building that is crucial to sustainable fundraising.  And, I don't totally disagree.  However, texting as aquick and easy vehicle to give is here to stay for now and every charitable organization should watch it closely and consider ways that they can "make it easy" for people to help.  

Stay tuned...

Kudos to the wireless phone carriers:  Verizon, AT&T, Sprint, T-Mobile and others for stepping up to advance "verified" donations pledged through texting immediately.  Normally this transfer of funds can take one to three months however these companies are doing their part to get aid to Haiti ASAP.  Read more about it at MSNBC where you can also see the list of fourteen major charities accepting text donations

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Schools, hospitals, museums, and social service providers continue to tighten their belts as they adjust to the realities of the new economy.  Readjust services, consider efficiencies and collaborations, but please, don’t abandon your investment in professional fundraising initiatives. 

Individuals continue to give, and in fact the impact of the recent recession was not all that bad, according to Giving USA 2009 :

“With the United States mired in a recession throughout 2008, there was no doubt in anyone’s mind that charitable giving would be down,” said (Ms.) Del Martin, CFRE, chair of Giving USA Foundation. “However, what we find remarkable is that individuals, corporations and foundations still provided more than $307 billion to causes they support, despite the economic conditions."

The nonprofit sector provides our citizens with critical needs with incredible efficiency.  Small organizations around the country collect donations and deliver services, mostly free of bureaucracy and overhead.  I cannot imagine what America would look like without the services provided by our social sector and financed by individual donations. 

Every day, I encourage my nonprofit clients to bolster their fundraising infrastructure by investing in time, resources and professional fundraising talent.  As the demand for social services continues to grow, so must our investment in making the connection between those in need and those willing to help.

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