Category Archives: FUNdraising Good Times

Fundraising commentary, tips and information.

Know Your Economic Impact

Posted on May 21, 2012 | Leave a comment

For every dollar invested into your institution what is the return to the community? Is there a social impact? Political impact? Economic impact? How do you measure it? What do you track? These are questions to ask as you consider how to make the case for giving and investing in the non-profits you are involved with.

While some impacts are difficult to measure, and long-term impacts won’t manifest for years or generations, there are also impacts that can be measured. But, you have to set up the processes, methodologies and tracking systems required to collect data that will bear up under closer inspection.

Another way of communicating impact is to measure the economic impact of your organization on the geographic area you serve. An economic impact report can help “reframe” your nonprofit so it can be viewed in its fullest context as a community contributor as well as a solicitor of funding.

When stereotypes are applied nonprofits can be viewed as “takers” – organizations that “beg” for money, or are a “drain” on the community. But this is a distorted image. Especially when it comes to publicly funded institutions such as hospitals and universities. While these receive public funding, they are also major employers with employees whose incomes circulate throughout the community sustaining local businesses large and small. Their purchasing departments contribute to sales and employment for the private sector. Conferences, programs and services attract people to the region who stay in hotels, eat in restaurants, fill their gas tanks, and visit local attractions.

In short, nonprofits are important to a community’s economic ecosystem. When you write a check to a nonprofit you invest in both the organization and the community in which it is located.

Here’s an example. The Jackson State University Center for Business Development and Economic Research recently completed an economic impact report showing that the University contributes an estimated $413 million and 8,700 jobs to Mississippi’s economy on an annual basis. This is a $1.86 return on each dollar invested by the state in the University.

“Jackson State University is truly a major economic engine of not only our city, but the state as a whole,” JSU President Carolyn Meyers said in a press release. “We know that our success fuels the success of Mississippi. As our enrollment continues to grow, we expect our economic impact to be even greater.”

Their payroll is $57 million for 1,542 full-time employees and more than 500 part-time workers. The institution spends an estimated $95 million on local goods and services, and students spent another $85.9 million in local economy, generating $1.4 million in Jackson-metro sales taxes.

It takes time and resources to measure impact, but it’s an investment that pays returns. You have to show your impact.

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Websites in the Age of Twitter and Facebook

Posted on May 17, 2012 | Leave a comment

In the world of Facebook and Twitter we sometimes forget the value of the trusted website. Can’t we say it all in 140 characters? Or a photo? Will the website go the way of the covered wagon?

We were at the Alliance for Nonprofit Excellence Conference “Powerful Networks: Nonprofits, Social Media & Community” this week and attended John Kenyon’s workshops. He set us straight. Kenyon is the Educational Program Manager for the Nonprofit Technology Network, NTEN (www.nten.org).

“While on-line communication tools are valuable, you need one place where you can provide your constituents with both high level and in-depth content and communication. You can tease them with tidbits on twitter and tantalize them with photos on Facebook, but your website is where they come to get the full scoop. And to donate!”

He opened with the basics, asking “What are the search terms someone would use to try and find your organization if they didn’t know you exist?” Good question. Write down the phrases. Google them. See if your organization comes up. As you add content to your website be sure to include those phrases (in a natural way!).

Here’s another great point. For most organizations people are the number one asset. Number two is data. Think about it. Where would your organization be without data regarding people served, program outcomes, donor names, board member email addresses, and other “inconsequential” things like that! Here’s the question John asked, “Does your budgeting reflect the value of data to your organization? Does it even come close to doing so?”

Something to think about.

Here are a few more tidbits: When you are conducting a fundraising campaign make sure it is highlighted on your homepage. Every page on your website should have two items: a Donate Now button and a Subscribe button. Ask everyone you communicate with “What is your preferred method of communication?” Then act on that information. For people who like e-communication, go that route. For those who want to receive a print copy of your newsletter, get one to them! The last tidbit: four things your website should do: build credibility and engage; cultivate; provide “clickability” or interactivity; and provide regularly updated content.

Finally, let us close with our new favorite quote, “Don’t make me hunt for it!” Kenyon emphasized that all sites must have a search function. Again, on every page! We must admit to being number one offenders. John poked fun at us, saying “Your site and blog are so content rich, but how can anyone find what they are looking for??!!?” Our take away: we are getting search buttons for our website and blog. Ah, we all have something to learn!

You can reach John at john@nten.org or follow him on twitter @jakenyon.

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No News is Good News?

Posted on May 14, 2012 | Leave a comment

Is your nonprofit organization getting the media attention it deserves? Do you ask, in frustration, “why do we even bother creating press releases if no-one covers our events?” You are not alone. We can’t promise a cure, but we can help you develop stronger relationships with appropriate media.

Start with identifying which media would be a good fit for the message you want to send, and the people you want to communicate with. Identify media with a similar target. Within a news station, know which news shows or segments would be an ideal fit.

Identify the highest ranking person within the media organization you can secure a meeting with. Ask someone to open the door. “Example, Jeanine, I know you have a relationship with the news director at FOX news – would you be willing to get an appointment for us to meet with her?” Simple, but you have to ask.

Your goal is to cultivate media before you need a story run. Visit media representatives at their offices (always respecting deadlines!). Come prepared. Bring a press kit. If you don’t have one, ask someone with experience to help create one. Make sure your materials make the case for your organization right up front. Who you are and what you do should be spelled out clearly. Accompanying photos will make it come alive. Share your nonprofit’s story in a concise and compelling manner.

During the meeting ask about the newspaper’s interests, goals and target market. Discuss the direction they are seeking to move in, and explore how your nonprofit can help them meet that goal by providing access to experts, reports, data, and human interest stories.

Ask for suggestions on how to improve your press kit, and the best way and time to submit materials. Ask who in specific you should submit information to. And don’t forget to invite them to come see your organization in action.

By meeting in advance with people behind the scenes you can learn a media outlet’s business goals, upcoming focus segments, timeframes, deadlines, and requirements. You want to make it easy for an editor to run your nonprofit’s press release, to cover a news or human interest story that ties back to your organization, and to report live from your event.

Come prepared with how you want to recognize the media throughout the year. Are you looking for a media partner? If so, come with an annual schedule of events and examples of how the work of the nonprofit ties to compelling issues within the community.

Remember – nonprofits have to be all about transparency, accountability and impact. Be open and honest with the press. You want friends. If you are concealing or tell half-truths the media you want as a partner may investigate you. Get on the front page the right way!

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Know Your Legal Responsibilities

Posted on March 20, 2012 | Leave a comment

You may not be a lawyer, but you should know your non-profit related legal responsibilities…

What legal issues should you be aware of regarding your involvement with non-profit organizations? Wanting to provide executive directors, board members, employees and volunteers with information, we talked with Mr. Van Turner a partner in the law firm of BRITTENUM BRUCE, pllc (“Brittenum Bruce”). Mr. Turner’s law practice is concentrated in the areas of business and commercial litigation, business transactions, government relations, municipal law, and estate planning. Most importantly he is also an experienced board member.

Understanding that no interview can take the place of legal counsel, we asked Mr. Turner to help provide a high-level overview of the types of legal issues that can emerge within the non-profit sector. We started at the beginning, asking Turner what it means to be a “501 c 3” organization and what it takes to start one, and we continued with questions about managing endowments, fiduciary responsibilities, taxes, and who is “really in charge” – the board or the executive director.

Our interview is below, followed by more information about Attorney Turner.

Saad & Shaw: Let’s start at the beginning. What does it really mean when an organization is a nonprofit organization? What is a “501 c 3” organization?

Attorney Turner: A nonprofit association is a corporation or corporate entity which is not primarily organized to make a profit. In fact, nonprofits are organized and operated exclusively for religious, charitable, or educational purposes. The “501 c 3” language comes from the United States Internal Revenue Code and section which defines the types of organizations which are exempt from federal income taxes. In essence, for profit corporations must pay federal income taxes and nonprofit corporations do not have to pay federal income taxes.

Saad & Shaw: Related to that, what does it take to start a non-profit?

Attorney Turner:In order to start a nonprofit, an individual must first complete and file a 1023 Form with the IRS. One must also file the Articles of Incorporation with the Secretary of State in which the company will be headquartered, form a board of directors to govern the company and develop by-laws to govern the board of directors.

Saad & Shaw: What about the board of directors? What are the legal responsibilities of the board of directors? What is their role? Do they run the organization or does the executive director or CEO?

Attorney Turner: The board of directors has a fiduciary obligation to the organization. The legal definition of fiduciary is a person or entity entrusted with the duty to act for the benefit of someone else or something else. A person acting in a fiduciary role must exercise a high degree of care and must subordinate his or her own personal interests in the event that there is a conflict. While the executive director may handle the day to day obligations of the nonprofit, ultimately, the legal responsibility for the organization lies with the board of directors. For example, if the board must decide between what the executive director wants to do and what is in the best interest of the nonprofit, the board has a responsibility to do what is best for the nonprofit.

Saad & Shaw: What should the leadership of a non-profit be aware of when it comes to entering into contracts for goods, services and/or property?

Attorney Turner: The leadership should be aware that he or she is an agent for the nonprofit when entering into contracts. If the board of directors allows the leadership or the officers to negotiate and handle contracts, then everyone must understand that the executive director is binding the nonprofit to the deal. Therefore, if the board later decides that the contract is not good, they cannot come back and rescind the contract without a validly legal reason. The board of directors must make it clear in the by-laws whether it wants to approve every contract or allow the leadership to handle the contracts without board approval. What I usually see is that the board allows the leadership to contract up to a set amount and anything above that amount must be approved by the board.

Saad & Shaw: What about financial management? Are there specific oversights, policies or procedures that need to be in place? What happens if the money just disappears?

Attorney Turner: Yes, of course. A nonprofit is like any other business in that regard. Solid financial management is a must. It is advisable to address a system of checks and balances in the by-laws and to require an annual audit of the financial records. If the money just disappears and the board allows it to happen, then the board will be held accountable along with whoever took the money. If the board had strong procedures and the officers simply stole the money, then the board should probably investigate seeking criminal as well and civil remedies against the bad actor. The nonprofit could also purchase insurance to help cover the cost of theft or embezzlement.

Saad & Shaw: What about gifts and pledges? What should a nonprofit be aware of when accepting a gift or pledge?

Attorney Turner: I suggest that the nonprofit develop a gift acceptance policy. This policy will assist developing a planned and orderly method of knowing which gifts to accept and how to handle the gifts when accepted. For instance, if property is donated to the nonprofit, the nonprofit must develop a procedure for making sure they are receiving good title and that they are not accepting a landmine which would cause more headaches. Also, the policy could assist with spelling out some of the tax issues which may come-up with certain types of gifts.

Saad & Shaw: Is a written pledge really legally binding? If a donor commits to giving a certain amount to an organization, can that person really be held accountable?

Attorney Turner: A written pledge can be legally binding in some states if there is consideration involved. However, this is a state-specific issue and may vary from state to state. Consideration is simply “the thing of value” each party to a contract agrees to give in exchange for what he or she receives. So, for instance, if a nonprofit was going to name a building for someone who pledged a large sum of money and the nonprofit began construction on the project, the court may rule that there was consideration and find that the donor is legally bound to the pledge.

Saad & Shaw: Many of the leaders we talk with are interested in growing an endowment for their organization. Are there specific legal requirements associated with growing and managing an endowment?

Attorney Turner: I would again suggest creating a policy to handle the endowment. One particular issue that I see with an endowment is that the board would likely need to contract with another entity to assist with the financial planning and management of the endowment. The endowment needs to be invested correctly, and the board should have a policy in place to make sure an expert is retained to handle the endowment funds.

Saad & Shaw: What about receiving property from a donor? Or selling property?

Attorney Turner: I believe that the gift acceptance policy should specifically spell out what happens with donated property. Buying and selling property requires much more than executing a simple contract. The title of the property must be analyzed, insurance must be purchased, the proper disclosures need to be made, and the financing, if any, must be analyzed very carefully.

Saad & Shaw: Everyone says nonprofits don’t have to pay taxes. Is this true?

Attorney Turner: Yes, nonprofits are exempt from paying federal income taxes as long as they maintain their charitable purpose, apolitical purpose. I must note here that nonprofits are forbidden from engaging directly in politics. While 501 (c)(3) nonprofit corporations can encourage the franchise of voting by encouraging citizens to vote, they cannot support one candidate or one political party over the other.

Saad & Shaw: let’s talk about the not-so-pleasant possibilities. What about embezzlement and misappropriation of funds? What happens if someone suspects that this is going on? What actions should be taken by the board or executive leader?

Attorney Turner: The board should immediately remove the executive leader from the bank accounts. Further, the board should then request an audit to see what has been misappropriated. Furthermore, the board should also alert the authorities as to what has occurred. The board should also seize the executive’s computer. Even if the executive has deleted emails and materials on the computer, those materials can be retrieved and can assist in trying to figure out what happened with the money.

Saad & Shaw: We have covered a lot of issues in this conversation. Do you have any last words of wisdom for our readers?

Attorney Turner: Remember that the board has a fiduciary obligation to run the nonprofit. This means that if the board does not have the expertise, it should retain the expertise to make sure it is correctly conducting the business of the nonprofit. As the old saying goes, “an ounce of prevention is worth a pound of cure,” and this simply means that taking time out on the front-end to develop solid by-laws and policy and procedures can prevent several issues later on as the nonprofit develops and grows.

Saad & Shaw: Thank you Attorney Turner.

About Attorney Van D. Turner

Van D. Turner, Jr. is a partner in the law firm of BRITTENUM BRUCE, PLLC (“Brittenum Bruce”). Mr. Turner’s law practice is concentrated in the areas of business and commercial litigation, business transactions, government relations, municipal law, and estate planning. Before joining Brittenum Bruce, Attorney Turner was of counsel at Butler, Snow, O’Mara, Cannada & Stevens, PLLC (“Butler Snow”). Prior to practicing at Butler Snow, Mr. Turner served as Associate General Counsel for the Board of Education of the Memphis City Schools and as judicial law clerk for the Honorable Samuel Hardy Mays, Jr., federal judge for the United States District Court for the Western District of Tennessee.

Attorney Turner participates and has served on the board of directors of several legal professional organizations, including the American Bar Association, the National Bar Association, the Tennessee Bar Association, the Mississippi Bar Association, and the Memphis Bar Association. Mr. Turner’s most notable honors include Memphis Business Journal, 2007 “Top Forty Under 40”, Super Law Magazine, Mid-South Rising Stars for 2010 and 2011 in the areas of litigation and government relations, and selection as a Barrister in the Leo Bearman Sr., American Inns of Court. Mr. Turner has also served as an adjunct professor at the University of Memphis, C.C. Humphreys School of Law.

Mr. Turner earned his Bachelor of Arts degree from Morehouse College in Atlanta, Georgia in 1997, with Phi Beta Kappa and magna cum laude distinctions. After serving as an Assistant Teacher of English with the Japanese Exchange and Teaching Program in Yamanashi, Japan, Attorney Turner returned to the United States and attended the University of Tennessee College of Law, where he earned his Doctor of Jurisprudence in 2002. Mr. Turner is licensed to practice law in Tennessee and Mississippi.

You can reach Attorney Turner at vturner@brittenumbruce.com  or (901) 271-3794.

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Church Giving Supports HBCUs

Posted on March 8, 2012 | Leave a comment

The United Methodist Church and HBCUs – behind the scenes at the Black College Fund…

The power of your church giving may be stronger than you know. For example, did you know that when you give to the United Methodist Church you are supporting eleven historically black colleges or universities in addition to supporting your congregation? That’s right. You are part of a long tradition that is now managed by the church’s Black College Fund under the leadership of Dr. Cynthia Bond Hopson.

As you may be aware, black colleges and universities have been transforming the lives of individuals, communities and our country since before the Civil War. Eleven of these 105 institutions are private-church related colleges founded by the United Methodist Church. In order to learn more about the relationship between these colleges and the church, we talked with Dr. Cynthia Bond Hopson and share our conversation with you.

Saad & Shaw:   Why did the church establish these colleges and why has it continued to support them?

Dr. Cynthia Bond Hopson:   The Methodist Church has always had a passion, tradition and belief in the power of knowledge and as the Civil War ended, it was painfully clear that the education that had long been denied to slaves would severely hamper their self sufficiency if not addressed. The people called Methodists (through the Freedmen’s Aid Society, founded during the 1860s) saw an urgent need and addressed it. This ministry to the educationally underserved remains and we see it as essential to empowerment and self determination. According to a history of the Black College Fund written by Dillard University President Emeritus Dr. Samuel DuBois Cook, “Without question, the UMC has no peer or competitor, either quantitatively or qualitatively, in terms of church support for its HBCU. No other mainline communion approaches the United Methodist level of generous and sustained financial support.” We believe in higher education and generously invest in it.

Saad & Shaw:   How does the church support these colleges? (Do you provide funding, conferences, technical assistance…)

Dr. Hopson:   All the above, but mainly the financial piece; our (mostly unrestricted) funding goes directly to the institutions to help keep their tuition and fees low, to enhance the infrastructure, to create new programming—whatever it takes to stay competitive. There is a capital projects designation and we also offer/share the United Methodist Connection of people, information and resources.

Saad & Shaw:   Why do you feel HBCUs are important today?

Dr. Hopson:  They are uniquely suited historically and otherwise to nurture, challenge and mentor their graduates to be instruments of change whether they’re running a school board, multi-national corporation or a university. These institutions attract the best and brightest in addition to those who have the potential to be great and they inspire them to “find a way or make one” as the Clark Atlanta University motto says. The small class sizes and low teacher/student ratios allow the faculty, staff and administration an opportunity to provide personalized attention and a family-like environment. Students can’t help but flourish and soar.

Saad & Shaw:   What role do these colleges play in the life of the church?

Dr. Hopson:    We get some of our most effective, committed, talented and innovative leaders from these institutions. Supporting leadership for life is not just a motto for us— we invest in it. The choirs tour and perform in local churches and our Project Athletic Ambassador program links congregations with the BCF basketball teams when they’re on the road for games. Also, in the Southeast, our institutions host the Youth Harambee, an annual gathering of youth groups from around the jurisdiction. Many of the schools were founded in local churches and that historic bond is a tremendous source of pride.

Saad & Shaw:   How do these church-related institutions work together? Do they engage in joint programming or joint fundraising?

Dr. Hopson:   The Council of Presidents (active presidents and retirees who have served more than ten years) help plan programming and promotion. Further, my office hosts a biennial continuing education event for public relations and advancement directors.

Saad & Shaw:   Is giving to these colleges a “black thing” or do all church members give?

Dr. Hopson:  Every United Methodist Church in the United States is assessed an amount to pay and many local churches and annual conferences (a group of geographically grouped churches) take enormous pride in paying their 100 percent share. We love those! We also receive memorial and estate gifts from supporters occasionally.

Saad & Shaw:   Has giving by churches to the Black College Fund increased or decreased during this economic downturn? (Whether increase or decrease, how has giving affected the fund and its work?)

Dr. Hopson:   I am delighted that our funding has held steady, and if anything, it has increased percentage wise. This year we received about 87 percent of $11 million, but our students’ needs continue to outpace the funding so we are constantly striving to reach potential new students and donors.”

Saad & Shaw:   Does the support of these church-related colleges and universities perpetuate segregated institutions?

Dr. Hopson:   Absolutely not! These schools are and have always been open to anybody with a hope and a dream, regardless of race, class, gender, ethnicity or national origin. They are our most diverse campuses with students and faculty from around the world.

Saad & Shaw:   What else would you like to share with our readers about the Black College Fund in specific or HBCUs in general?

Dr. Hopson:  Our 11 institutions come in all shapes and sizes and there’s bound to be one that fits your needs or interests. If you haven’t visited one of them, stop by and be impressed by the critical research, innovative programming and some of the best and brightest students anywhere on the planet! And, if you want to invest in excellence, the Black College Fund is a great choice. Our administrative costs are less than four percent and your contributions are tax deductible. We support leadership for life.

Saad & Shaw:   Any last words on the power of collective giving such as giving through one’s church?

Dr. Hopson:  Our schools are a great investment and together we can do so much more than any one of us individually could do. I continue to be amazed at what happens when everyone gives their best gifts—together we are a force to be reckoned with!

Saad & Shaw:   Thank you for your time!

To learn more about the UMC Black College Fund visit www.gbhem.org/bcf or call (615) 340-7378.

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Volunteers: The Key to Nonprofit Success

Posted on February 27, 2012 | 1 comment

Fundraising: Nonprofit board roles and responsibilities – Part 5

Volunteers are at the heart of fundraising. They make all the difference in the world. They are passionate, connected, creative, and talented. And they need to be managed. Ask anyone who has served as a fundraising volunteer and you will quickly learn what made their experience great and what fueled disappointment. Perhaps you, as a volunteer, have experienced the joys and the pitfalls.

Here are some things to keep in mind. As an organization, make sure you know exactly what you want people to do before seeking volunteers. Create a one-page document outlining “roles and responsibilities” for each type of volunteer you need. Outline expectations for event volunteers, members of the phone-a-thon committee, or the corporate sponsorship committee. It may sound like a lot of work, but if people don’t know what you are asking them to do, it is hard for them to hit the mark.

If you are asked to help with fundraising, ask questions before saying “yes.” If you are not provided with written roles and responsibilities, request them. Here’s how to say “yes” while setting boundaries around your involvement:  “That sounds like something I can do. Would you write up your expectations, and any dates I should be aware of? I will review and confirm.”

When you say “yes,” treat your volunteer commitments as seriously as you treat your personal and professional commitments. Apply your talents and creativity, ask questions, engage your network.  You can provide valuable resources and leadership that are beyond the scope of staff.

As a volunteer you can make a difference by providing printing, web design services, meeting facilitation, a reduced or no-cost lease, food, legal services, transportation or products/services directly related to the organization’s mission. You can host a gathering at your office introducing the organization to your peers and encouraging them to give money and pro-bono services.

As a staff member, you need to be prepared to manage volunteers and respond to their requests and ideas. Allocate time for this. Be prepared to change how you do business. Volunteers may make requests that stretch your resources and your thinking. You may feel frustrated. That’s natural, but unhelpful. Be prepared to partner and to change.

Volunteers can take you to new levels; they can open doors that staff only dream of. Be prepared. Clearly communicating roles and responsibilities sets a framework for accountability. From there you can negotiate as volunteers bring new ideas to the table. You can choose to think of volunteers as “prima donnas” who take up your time. Or you can consider their requests and ideas as reasonable responses that arise out of their desire to help you. If your organization allocates adequate time to managing and supporting volunteers all parties can benefit.

© Copyright Saad & Shaw.  Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions rethink revenue sources. They are the authors of How to Solicit a Gift: Turning Prospects into Donors. Visit them at www.saadandshaw.com or call (901) 522-8727.

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Your fundraising quarterback: Staff

Posted on February 23, 2012 | 4 comments

Fundraising: Nonprofit board roles and responsibilities – Part 4.

Have you heard this before: “We’ll hire the right person and they will raise the money.” Hmmm…. If only fundraising were so simple. Here’s a short list of problems associated with this perspective. First, the board is ultimately responsible for fundraising and needs to be engaged at all times. Then there’s the issue of how to identify, hire, manage and retain experienced fundraisers. Let’s not forget the adage “people give to people” which includes peer-to-peer fundraising.

While fundraising staff cannot go it alone, there is plenty they can and should focus on. Their number one priority is to support and supplement the fundraising work of board members and volunteers. Fundraising professionals are actually volunteer managers who identify, motivate and support the work of volunteers. They have strong people skills.

As a means of supporting volunteers, staff develop materials that “make the case” for giving to your organization. They develop and manage the fundraising plan, organizing the work of volunteers, employees and others. Working closely with the CEO and chair of the development committee, they keep the board up-to-date on fundraising successes, challenges, and opportunities.

They also maintain accurate information on current and prospective donors, produce reports that show funds raised from different sources using different methods; manage online and direct mail campaigns; write proposals and submit reports to funders; send thank you notes and gift receipts; and manage special events.

Fundraising staff are responsible for building infrastructure and capacity. They help ensure marketing and communications tie to fundraising, and, as appropriate, help develop cause marketing programs and donor benefit packages. They focus on fundraising all day, every day.

Finally, here are some things to consider. Demand for experienced fundraisers is greater than the supply. Many individuals have experience in one or two aspects of fundraising, but may not have experience with the methods your organization uses. Staff need to be managed by the executive director. They need to have measurable goals they can reference when allocating their time on a daily or weekly basis. “Raising enough money to cover the budget” is not an adequate goal and will not ensure the financial health of your organization. We recommend goals such as “prepare for and facilitate six meetings with fundraising volunteers” or “identify 30 new prospective donors who can give $1,000 or more” or “working with board members identify three local businesses interested in pursuing a cause marketing program.”

When hiring, consider people new to fundraising with successful sales experience. Many understand the identification, cultivation, solicitation, stewardship cycle and are experienced meeting goals. Always allocate time for staff to attend meetings or conferences of the Association of Fundraising Professionals and for other training and networking opportunities.

© Copyright Saad & Shaw.  Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions rethink revenue sources. They are the authors of How to Solicit a Gift: Turning Prospects into Donors. Visit them at www.saadandshaw.com or call (901) 522-8727.

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Where Does the Buck Start?

Posted on February 13, 2012 | 1 comment

Fundraising: Nonprofit CEO roles and responsibilities – Part Three

It’s an honor and a privilege to serve as a non-profit executive. And a lot of work! You are the CEO and the chief development officer. That means fundraising. Even if you have a vice president for advancement, or a development director. At the end of the day the proverbial “buck” stops with you.

The fundraising expectations are real, whether the board tells you explicitly or not. Major responsibilities include articulating the organization’s vision, and working with the board and development team to create a case for support that will drive fundraising. You also have to work with the development office to ensure the organization works from an agreed-upon fundraising plan. That’s the beginning.

You need to work closely with the board, development staff and fundraising volunteers providing motivation and asking hard questions. Examples include “how many prospective major donors have we identified, and how many are we cultivating?” “Who is researching prospective grant opportunities?” “How is the board progressing with its goal of hosting ten friend-raisers this year?” “Who should I meet with when I am in Washington next month?”

In most cases you are the face and voice of the organization. That means scheduling time to meet with community leaders, as well as current and prospective donors/funders, to develop and sustain relationships, and share the organization’s fundraising goals and priorities. And, to solicit gifts.

As the executive, you are truly the chief development officer, regardless of how many development employees there are. At the end of the day donors, funders and partners want to meet the executive director. And when it comes to major donors, many want to meet with you before making a meaningful gift. Many major donors expect you to “make the ask.” They will not write a check because you send a direct-mail letter. Most will not make a major gift online. They expect you to ask.

In addition to asking you have to manage your development staff. You are responsible for ensuring they work from a development/fundraising plan, that they have the resources they need (people, funding, software, marketing materials), and that they are making progress. You have to know how to guide and support your development team. And how to provide them with measurements they are held accountable to. Quick tip: those measurements have to be more than “meet annual fundraising goal.”

One of your most important responsibilities is to partner with the board chair in the recruitment and retention of board members and volunteers who are committed to fundraising. This is one of the most important “resources” the organization needs to be successful. People truly give to people. And volunteers – board members and others – can help transform your organization in meaningful ways, if you engage them. Be open, accessible, prepared and unafraid to ask. You will do well. Your organization believes in you.

© Copyright Saad & Shaw.  Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions rethink revenue sources. They are the authors of How to Solicit a Gift: Turning Prospects into Donors. Visit them at www.saadandshaw.com or call (901) 522-8727.

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Are You on Board?

Posted on February 10, 2012 | Leave a comment

Fundraising: Nonprofit board roles and responsibilities – Part 2

You’ve said “yes,” and now are serving on the board. What is expected of you? How do you demonstrate leadership? While we don’t have a crystal ball, we can provide guidance regarding your fundraising-related roles and responsibilities.

For many nonprofits fundraising is often the major method for securing funds and resources. As a board member, your leadership in this area makes a difference. Your roles and responsibilities fall into two general categories: policy and oversight, and giving and securing funds.

As a board member you will be asked to set fundraising policy. This includes items such as approving plans for a special fundraising campaign, and setting gift acceptance policies. For example, when the university you serve decides to launch a $150 million fundraising campaign, that will come before the board for approval.  You will want to ask informed questions such as, “What do the results of the feasibility study indicate?”Or “How many lead donors have been identified?” In the area of gift acceptance policies you may be asked to determine whether the organization will accept gifts of land, or cash gifts from gun manufacturers or tobacco companies.

You will also want to promote accountability and transparency. Support the adoption and implementation of policies related to conflict of interest and whistle-blower protection. Produce and distribute an annual report that shows how the organization uses the funds it receives. File your federal 990 on time. Communicate how the organization meets public needs and be willing to modify programs to help ensure best use of resources.

On a day-to-day level you will be responsible for understanding the institution’s fund development plan and in helping to bring it to life. For example, if the current focus is strengthening individual giving you will want to participate in house or office parties your organization hosts so you can meet new potential donors and supporters, and share with them the important work of the institution. As a board member your hospitality and words carry meaning and influence.

You should know the executive director’s or president’s vision for the institution. Talk with her. Ask questions. Then share that vision with other board members and most importantly with those who can provide funding and resources. Join your executive when she meets with leaders of local foundations or corporations. Meet with her in advance to understand the purpose of each meeting and then participate, showing support for her leadership and answering questions as appropriate.

Most importantly, make your own gift. Make a meaningful gift every year. Ask the company you work for to make a gift or sponsor an event. You have to give and advocate. Set an example. Stretch a little. Your community needs you!

© Copyright Saad & Shaw.  Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions rethink revenue sources. They are the authors of How to Solicit a Gift: Turning Prospects into Donors. Visit them at www.saadandshaw.com or call (901) 522-8727.

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Before You Say I Do

Posted on February 6, 2012 | 2 comments

Fundraising: Nonprofit board roles and responsibilities – Part 1.

You’ve been asked to serve on the board of a nonprofit you believe in. It could be a college, a local advocacy organization or a healthcare center. Do you say “yes?” What would you actually be saying “yes” to? What do you need to know to make an informed decision?

Board service is more than a resume-builder or image enhancer. It is work. In these times that work includes responsibility for fundraising as well as oversight of the fundraising process. In order to make an informed decision, request a meeting with the board chair and the executive. Requesting such a meeting communicates the seriousness you attach to board service. The answers you receive will let you know what is expected of you. They will also make visible the organization’s fundraising strengths and challenges – something you need to know as many boards now find themselves having to make hard decisions because of changes in available funding.  Note: if the leadership doesn’t have time to meet with you as a prospective board member, that may signal their accessibility and/or the seriousness they attach to board membership.

Here are some questions you may want to ask. Add or subtract from the following list as appropriate. Use your list when meeting with the board chair and executive.

General questions could include the following. Is the institution working from a strategic plan and a fundraising plan? What are the fundraising needs of the organization and what will it take to raise the required funds? What methods of fundraising are being used and how successful have these been? What percentage of funds is raised using what methods? What percentage of the budget comes from earned income, fees or tuition? What are the opportunities and challenges the institution faces in the area of fundraising? Is there a reserve fund or endowment? What is the skill set of staff responsible for fundraising? What percentage of the CEO’s time is spent on fundraising? What is the track record over the last five years?

Board-related questions could include: What are the fundraising-related roles and responsibilities of board members as individuals and as a collective? Are there requirements for board members to give and fundraise? What percentage of annual funds is raised by the board? Are there orientation sessions to inform and equip board members for fundraising? What data management system is being used and what information is available to support board members and their fundraising? What is the average gift from the board?

What you learn by asking these questions can help you gauge how you can be of greatest support. At the end of the day fundraising is absolutely critical to the survival of every nonprofit organization and institution. Don’t be afraid to ask – the answers will help you provide the best leadership and oversight possible.

© Copyright Saad & Shaw.  Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions rethink revenue sources. They are the authors of How to Solicit a Gift: Turning Prospects into Donors. Visit them at www.saadandshaw.com or call (901) 522-8727.

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