Category Archives: FUNdraising Good Times

Fundraising commentary, tips and information.

Creating a Culture of Fundraising

Fundraising is a vital part of an organization’s life blood – it is what people do in order to bring an organization’s mission and vision to life. This is what makes the nonprofit sector different from the private or public sectors. “Revenue” is donated or “granted,” and fundraising is the primary way funds are secured.

Successful fundraising requires an organization-wide culture of fundraising. No one person can do it all. Some may wish one person could – and would – take on the responsibility, especially if that person is someone else! But that’s not the way to build a successful and sustainable fundraising program. When you have a culture of fundraising every person within your organization is directly or indirectly involved in raising funds.

Start building and strengthening your fundraising culture by including an explicit emphasis on fundraising in your mission, vision and values. Tie your strategic plan and business plan to a fundraising plan.

Make sure everyone within your organization knows how much needs to be raised on an annual basis, what the funds are used for, and the impact that will be achieved. Be transparent. Show where the money currently comes from and ask for help identifying where additional, or back-up funds could come from. Ask people how they would like to help.

Explicitly include expectations regarding giving and fundraising into the roles and responsibilities of board members. Include fundraising in each staff person’s job description, especially that of the president, CEO or executive director. When recruiting volunteers be sure to offer each the opportunity to give and to participate in fundraising. Provide all employees, students, clients, visitors and others who benefit from or appreciate your work with the opportunity to participate in fundraising. General training and orientation should include an emphasis on fundraising.

Giving – and asking others to give – is a privilege and an honor. Sometimes an individual’s unresolved feelings about money, giving and asking can cloud their leadership responsibilities. In such instances a board member or an executive may say she doesn’t want to “impose” on others by asking them to help with fundraising. What we know from experience is this: the biggest reason people don’t give is because they aren’t asked. We also know that fundraising can appear “clickish” and “exclusive” when only some people are asked to fundraise, or help with fundraising events. Resentment can grow and people with talent and initiative may become disengaged. Ask everyone. Ask for their gift, and ask them to ask. Always acknowledge, praise and lift up their giving and their fundraising.

A culture of fundraising grows over time and is embraced and demonstrated by leaders. The question is changes from, “Who is going to do the fundraising?” to “How can I help with fundraising?” Start now.

© 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

Nonprofit Minefield: Politics!

2012 promises to be an action packed year with presidential elections and the accompanying debate, competition, advertising, and promises. Politics will definitely be in the air. And they may find their way to the doorstep of a non-profit you are involved with. That could be good news – an elected official who believes in your cause, who wants to help attract attention and funding to your organization. Or is it?

Politicians and nonprofits can be an explosive mix. We offer a few questions to help you proactively consider how your organization wants to be involved in campaigns this coming year.  What are your motives as a board member or executive in aligning your organization with an elected official, or one in the running? Will you do so quietly or publicly? If quietly, then why not publicly? Do you want something in return, or do you believe in the candidate’s platform regardless of whether her election could enhance your organization?

And what about the motives of an incumbent or candidate? Is he making promises in return for your endorsement? Will he support your institution if you do not endorse him? And what if she loses? Is there a potential downside? Could your being on the “wrong side” impact future funding or community standing?

What does it mean to be politically astute? Will you offer all candidates an opportunity to know your organization, its activities, goals and vision? Will you campaign for select individuals? Make endorsements? What is the difference between making your case to a candidate and making an endorsement?

How will your organization be viewed by donors and funders if your board decides to align itself with one candidate over another? If your institution engages people of all political backgrounds, how will an endorsement impact those who support a different candidate?

There is a difference between the mayor, or governor serving in an honorary position for your institution or campaign. In these instances you are engaging the office of the mayor, for example, not the individual. Be careful to understand the difference. You should call on your elected officials to make your case in the state capital or Washington DC. But, the fact that an elected official helps advance your organization should not make you beholden to the individual. It is their responsibility as an elected official to represent their constituency and to secure funds or advocate for policies that will benefit the people they represent.

Make a conscious decision about whether or not you want your organization to be viewed as politically aligned, or apolitical. Take some time to think about what actions you are willing to take in the coming year, and to look carefully at how those actions may impact your institution and the people you serve or advocate for.

© Copyright Saad & Shaw.  Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions with fundraising strategy. 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

Preparing for a Year of Promise

We’ve been hearing whispers that 2012 may – just may – be a more prosperous than 2011. There may be more jobs, less unemployment, and more good circulating throughout communities across the country. We believe in preparing for the best of times, placing stock in the adage that luck favors the prepared. In term of fundraising – securing funds for non-profit organizations and institutions – preparation is always the bedrock.

While money may have appeared to be flowing to organizations in the past, a more prosperous 2012 will most likely not bring a return to the days of “easy money.” In the recent past many organizations and institutions benefitted from the general prosperity that many throughout the country appeared to be experiencing. But many did not, and despite the current economic challenges, many organizations are attracting major gifts and investments. That’s the odd thing about the non-profit sector – all boats don’t rise and fall at the same time or in the same rhythm. Some are more favored simply because of “who” they are. Here we are referring to the fact that churches, hospitals, colleges and universities are historically the largest beneficiaries of gifts from individuals. So, if you are a grassroots arts organization or a reading program within a small rural community your organization may not attract as many donors as nationally recognized St. Jude’s Hospital. Likewise, colleges with alumni from middle class and wealthy families who have pursued lucrative careers may find they receive larger and more frequent gifts than colleges whose students came from less affluent backgrounds and who may have pursued less well compensated careers.

But nothing is written in stone. What we do know is this – prepare for fundraising success. Put in place the policies, procedures and actions that support a culture of accountability and transparency. Put fundraising front and center as a priority. Understand the balance between emotion and fact – use both when communicating with your current and prospective donors. But always be prepared to demonstrate good stewardship of funds. A fundraising campaign that tugs at the heartstrings can turn people off when word gets out that there is a big difference between what you say and what you do.

Over the years we have identified what we refer to as Prerequisites for Fundraising Success. Over the coming weeks we will focus on a few of these to help you prepare for increased fundraising success in the coming year. And we will return to these in columns throughout the year. What we know is this: a well managed nonprofit organization – regardless of size – benefits when the leadership (board, executives and staff) are in alignment, focused on its mission, working from a strategic plan, and engaging with donors and supporters in a proactive, market-tested manner.

© 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

Value of Diversity – Part Two

Taking a risk and funding smaller, grass roots organizations may feel challenging when there are larger, more established organizations providing similar services. Yet even when providing award winning services, not all organizations or institutions can serve everyone within a service area.

Consider this: perhaps there are lesbian, gay, bisexual or transgender people who don’t feel comfortable using certain health facilities because they have experienced insensitive treatment. They put off routine health care. Would a smaller LGBT-friendly clinic help serve this population?

What about refugee families from around the world? Could the best provider of health, education, youth or senior services be the organizations that helped these families resettle? Some donors and funders might consider this “mission creep” – a phrase used to describe programs that “creep” beyond an organization’s funding mission. But if the volunteers and staff have gained the families’ trust, then perhaps they are the ideal provider.

What about the arts? How many arts organizations is enough? When recommending consolidation or choosing not to fund an organization it is always important to look at the arts community as a whole. How will changes in funding affect the diversity of art forms, expressions and audiences? Is it enough to have one strong, well-funded black visual arts organization; one strong Hispanic performing arts theatre? Should there be multiple smaller organizations serving these populations as well?

What we know is this – diversity and innovation are vital to a healthy vibrant non-profit sector. Grass-roots and emerging organizations can challenge more established organizations to adopt new programs, change their culture, or increase their advocacy. They may not be as well funded, so their data collection may not be as robust as it could be. They may have high turnover due to low salaries, long hours or lack of health benefits. They may not always say the right thing. Their boards may not include fundraising power-houses or political influencers. But, they typically have a lot of passion. Some have deep community connections and relationships that help them discern community needs before they are visible to others. These organizations can be risk takers, innovators and important catalysts that keep the sector healthy and help ward off complacency.

We strongly believe in giving and investing in well established organizations. They are often the cornerstones of our community. And we believe the “up-and-comers” need attention from donors and funders as well. The values of the nonprofit sector expand beyond efficiency. Innovation, new leadership, new models of service delivery, and different advocacy strategies are good for all of us. As in the private sector they help breed innovation, they challenge the status quo, and in many cases they deliver where others simply cannot.

© Copyright Saad & Shaw.  Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions with fundraising strategy. 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

The Value of Diversity – Part One

ImageWhich is more important efficiency or innovation? Consolidation or diversity? Are the values and metrics of the private sector the same as those of the non-profit sector? Should funding flow to institutions and organizations who demonstrate the greatest impact and serve the greatest numbers? Should institutions with powerful and influential boards be considered more worthy of investment than those run by activists, artists or community members?  How does long term stable funding – and endowment – impact an institution’s ability to secure current funds? How are the disparate impacts of current and historic racism, homophobia, xenophobia, sexism, and religious intolerance integrated into funding assessments? Is there one yard stick against which all nonprofits are evaluated, or is there diversity in measurement?

Who makes these decisions anyway?

Believe it or not – we all make these decisions. We do so consciously and unconsciously, with great impact, and with almost none. Whether we give $25 as an individual, allocate $2.5 million as a federal agency, or recommend $25,000 as a program officer or foundation board member we are making the decisions.

We don’t necessarily know how our actions will compound with or offset the actions of others. Sometimes we can anticipate the impact, othertimes we won’t know for years to come. We have to use our judgment, rely on experience, trust our instincts, and open ourselves to voices and visions we may not encounter in the course of our personal, professional, or religious lives. 

As fundraising consultants our work gives us a first-hand look at the diversity within the nonprofit sector. There is diversity in the types of organizations, service areas, advocacy foci, leadership, budget size and history. There is diversity in the number and type of people served. Impact, efficiency, reporting, staffing levels, salaries, experience, success, funding and visibility all vary.

We are also aware that during “challenging economic times” the pendulum can swing too far towards efficiency and consolidation. While we certainly advocate for these, we also believe in diversity and innovation. Our experience has also shown these are not always found within the same organization.

Those who work with us know we always ask about impact, numbers served, and advocacy results. We want to know if other organizations doing similar work; challenging our clients to move away from duplication and towards filling a unique niche. At the same time we want to know who is not being served. We ask questions about how emerging communities – particularly immigrant communities which may have small or large numbers – are being served and included.

While it may cost more to provide services to a smaller community, efficiency cannot be the only factor influencing the work of the nonprofit sector. Justice, equity, diversity, and creativity are also guiding values.

Continued next week!

© Copyright Saad & Shaw.  Mel and Pearl Shaw are the owners of Saad & Shaw. They help non-profit organizations and institutions with fundraising strategy. 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

Let the Season Begin!

Happy Holidays from Saad & Shaw!
www.saadandshaw.comShaw Family!

Questions for Nonprofit Growth

Sometimes it is the questions we don’t ask that lead us astray. In part one of this series we discussed how today’s changing – and challenging – economic times can be a catalyst for nonprofits if we are brave enough to ask questions we might prefer to run from. Here are a few.

“How can we operate more efficiently?” For example, as a community of nonprofits, can we decrease operating costs by using one resource for payroll, purchasing, insurance (health and liability), and even accounting? Lawyers would need to be involved; computer systems set up and tested… But at the end of the day, this could increase efficiency and increase resources devoted to service delivery. Or maybe not. You won’t know until you ask. Asking the question and having the conversation could lead to new approaches.

Another question is “what can we do differently?” One organization we know provided residential services for the most vulnerable children in their community. They had their own campus with new buildings. They received public funds, ran their own school, provided housing, counseling and more. But changes in public policy and changes in best practices caused them to change how they operate. They looked at the funding landscape – and the children’s needs – and changed their service delivery model. They have closed their residential campus and expanded their community-based and school-based services. They could have continued to raise funds for their residential program. Instead they had the foresight to ask “where is the market headed” and adjusted course.

We don’t know the questions you need to ask, but we encourage you to think outside the box. Put aside preconceived notions of what success looks like. Remember, as non-profits, our mission is the public good and that changes over time. New issues emerge. Populations change. Funding opportunities change as well. Here are a few questions to spur you on: Would becoming a program of another organization or institution allow us to better focus on what we do best? Are we effectively communicating what we do? Are the services we offer the best way to address community challenges and opportunities? Have we become dependent on one or two revenue sources? Do we leave everything in the hands of our CEO – what if she leaves – what would we do? Would a change in public policy help reduce the need for our services? If so, should we become involved in public policy? Are we focused on sustaining our organization or eliminating the need for our organization? Do the people we serve believe in our work? What do they want us to do differently? Would they miss us if we were gone?

What are the questions you can ask, and where will they lead your organization and community?

An Honest Assessment

As non-profit leaders it is time to go to a new level of honesty with ourselves and those we serve. It is time for questions we may have put off. Questions such as “Are our current operations best serving our community?” “How could we do things differently to be of greater impact?” “Should we phase out some programs and introduce new ones?” “Is our mission relevant?” “Is there a more effective or more efficient model of service delivery?” “Should we consider merging with another organization?” “Who could we partner with?”

These questions are pressing given today’s realities. They are a doorway to the future, even though we may not know where we will end up as we summon the courage to ask them. They may represent the road less traveled; they may lead us to where we need to be.

As the year comes to an end, we can reflect and step up in a new way. We can call on our internal strengths, and the relationships we have developed over time. We can bring stakeholders and those we serve together to examine community needs and how our programs and advocacy meet – or don’t meet – those needs. We can identify gaps in service, and duplication of efforts. We can move beyond commitment to our individual organization and its mission, and look at ourselves in the context of the larger community, or eco-system we are a part of. 

This organizational change – or challenge – mirrors our individual changes and challenges. So many of us have had to reinvent ourselves, change our expectations. There is loss in letting go of what we thought would come to pass. For many it is accompanied by the emergence of a new strength. A new resilience. New competencies are uncovered; connections and relationships are rekindled. We are forced to do things differently as the old ways won’t work. And somehow we find our way.

What is true of us as individuals, and families is also true for us as a community. The way things used to be isn’t the way things are anymore. For many non-profit organizations there is the continuous process of doing more with less. There are smaller budgets, smaller staffs, and more demand for services, advocacy and solutions. And there is more competition as organizations and institutions increase their fundraising and turn to individuals, corporations, government agencies and organized philanthropy in new ways, with new appeals, in hopes of securing new funding. The dreams of a new building, expanded services, or even continuing support from long time supporters may seem out of reach.

But the questions we now ask may contain the answers we need. We can seek guidance for ourselves and those we serve. We can ask questions in conversation with others who can help us see what we cannot currently see or imagine. Today’s challenges can be a touchstone for a better future.

Cause Marketing: Grocery Shopping for Good

Women's FoundationHow do you say thank you? For this column we look to the Women’s Foundation for a Greater Memphis for an example. They thank their supporters with a Kroger gift card, preloaded with five dollars. Shoppers take the card Kroger, add their grocery money to the card, do their shopping, pay for their groceries with the card, and then Kroger sends the Women’s Foundation five percent of what supporters spend using the gift card. Five percent. That’s a lot. And, supporters can reload their card over and over again, using it to buy groceries, gas and pharmacy items throughout the year. With every dollar spent five cents goes to the Women’s Foundation. It adds up quickly.

KrogerThis is a great example of what we refer to as a mutually beneficial cause marketing program. It builds loyalty amongst supporters of the Women’s Foundation who are also Kroger’s shoppers. It creates a revenue stream for the Women’s Foundation. It provides Kroger with an opportunity to provide funding to an organization their shoppers support. Everybody wins. Grocery shopping suddenly has a new meaning and a new impact

Wanting a “behind the scenes” look we asked Tracy Burgess, Development Manager at the Women’s Foundation how the program is working. She let us know they are promoting the cards with the slogan Buy Now Give Now. “We wanted to focus on giving something to the people of Memphis that will allow each to be a philanthropist. In this economy the gift card gives everyone a way to give even though their own budgets may be tight. It expands the definition of what it means to be a philanthropist.”

Burgess also mentioned that staff are recording the names and email addresses of people they give a gift card to so they can be sure to follow up and let participants know how their use of the card is impacting the Foundation’s work. You know we like to hear that – at the end of the day it is all about stewardship. Saying “thank you” over and over again.

Think about your organization and the people it touches. Think about businesses with shared values. Think creatively about how each can benefit the other and the community. Write up your ideas. Talk with the leadership of your proposed cause marketing partner and see what you can create together that generates benefits for your community. When done right cause marketing programs can build customer loyalty for a business, a revenue stream for a non-profit, and a new way for current – or new donors – to provide financial support during challenging times.

© 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

Hunger Pains

Food Bank

It’s great to know where our next meal is coming from. Food brings people together. Especially during the holiday season! But what about the 14.5% of households who are hungry without dependable, consistent access to food? Where will their next meal come from and how can we help put food on their tables? We are our brother’s keeper, and many of us, if we look closely, realize we have family members, neighbors or people we come in contact with each day who are hungry. With this column we ask you to give to your local food bank, faith based organization, or the family down the street.

Hunger is often described with the phrase “food insecurity.” That means you don’t know where your next meal is coming from. You don’t have the money or the resources to ensure you and your family have a dependable and consistent source of food. People who experience food insecurity live in every county of the United States, with a low of five percent of the people in Steele County, ND to a high of 38 percent in Wilcox County, AL. In 2010, 48.8 million Americans lived in food insecure households. That’s 32.6 million adults and 16.2 million children. That is a lot of people. Many are working. Some are college educated. Eight percent are seniors who live alone. Households with children experienced more food insecurity than those without children.

With all the gridlock in Washington this is not the time to wait for the government to solve this problem. It’s up to us to care. And it’s easy. Look at what you are going to spend to celebrate the upcoming holidays. Make a budget. And then figure out how much of that budget you can use to help ensure families in your community have something to eat. It’s not that hard. You can donate 85% of your company’s holiday party budget and use the other 15% for a smaller scale breakfast. You can donate 50% – or 100% – of what you would give as client gifts to your local food bank. You can look at your family holiday budget and donate a percentage. Engage your children in giving. As a family you can purchase a gift card to a local grocery store and slip the card under your neighbor’s door. You can send your sister-in-law a check or an anonymous gift card.

Remember, hunger doesn’t announce itself. Our pride often keeps us from sharing our troubles. We believe they will end soon, we fear what others will think, we don’t want to ask for a “handout.” Think about it – if your sister-in-law or your neighbor has been unemployed for 18 months, most likely she is having trouble paying her bills and feeding her children. The older couple you see at church each week may not be eating three meals a day. Too many children are coming to school hungry and have difficulty concentrating. You can make a difference.

© Copyright Mel and Pearl 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.