Tag Archives: fundraising good times

Three things to consider before applying for a big grant

Posted on October 26, 2015 | Leave a comment

Three things to considerBig money attracts big dreams. Imagine what your organization could do with a large sum of money. Large could be $25,000 or it could be $25 million. It all depends on your operating budget. Whether you say “yes” to big money, or turn down an opportunity can impact your organization – and community – for years to come. Learn three questions to ask before making a decision.

When you are approached to apply for a large grant it can feel as if your nonprofit has won the lottery. Maybe you’re a grassroots program, a national advocacy organization, or a college or university. In most cases the response is the same: you are excited and begin to evaluate how your programs fit into the grant guidelines. If the proposed grant could cover multiple years your team may feel the heavens have opened. Maybe, and maybe not.

The first pivotal question to ask when considering a major grant is whether or not it is in line with your mission, goals and strategic plan. You can contort your nonprofit and change your direction to secure the funding. But what will that do to your organization? If the grant funding is for services outside of your focus why are you changing your priorities? There are legitimate reasons to change, but make sure yours is a conscious decision. Our general recommendation: don’t chase money that takes you off course.

If you accept funds that are not line with the core work of your nonprofit you can put your organization at risk. You may find that the time and money required for grant management, reporting, and evaluation are not covered in grant funding. Paying for these can become an additional – unfunded – expense.

Second, have you planned for the end of the grant – even as you prepare to apply for funds? For example, have you considered how you will replace the funds once a grant ends? Will the new grant-funded program/ service/advocacy become part of your long-range planning or business plan? If not, what will happen to those you serve?

Third, do you have the information you need to carefully construct a budget for the proposed work? Will grant funds cover current programs, or will you need to expand programming or launch a new program? Will you need to hire additional people? If yes, where will you find the talent you need? How will you retain current and new hires during the life of the grant? What will happen if staff leave your organization? How will you replace them?

Take time to make wise decisions for your organization’s sustainability.

Image courtesy of satit_srihin at FreeDigitalPhotos.net

Copyright 2015– Mel and Pearl Shaw

Mel and Pearl Shaw position nonprofits, colleges and universities for fundraising success. For help with your fundraising visit www.saadandshaw.com or call (901) 522-8727.

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Advocacy: critical nonprofit work

Posted on October 19, 2015 | 2 comments

StandBesideHer

Stand Beside Her is an example of a new powerful new advocacy campaign launched by Girl Scouts Heart of the South. This national campaign encourages women and girls to support each other. It’s a bold move to reduce comparisons and competition amongst women. The goal: changing our culture so every girl and woman can reach her fullest potential.

There’s something wrong when women are more than 50% of the population and we still ask ourselves “why are women underrepresented in so many aspects of our society?” At a minimum change requires new public policies, new ways of interacting with each other, new roles for men, and a change in consciousness. Stand Beside Her focuses on how we treat each other as women and encourages us to change negative behaviors we have internalized, normalized and may not even be aware of.

This is no small goal. Like most advocacy campaigns it’s about a big vision. It’s right up there with curing HIV/AIDS, breast cancer, and Alzheimer’s disease. Securing marriage equality. Eliminating racism.

Here are a few things we learned: 67% of women rate mentorship as highly important in helping to advance and grow their careers, yet 63% of women never has had a formal mentor. 39% of girls have been put down or discouraged when trying to lead. And, 92% of teen girls would like to change something about the way they look, with their body weight ranking the highest.

Girls are watching us and listening to us. How do we treat each other? And how do we treat ourselves? Each of us can be part of the solution. Invite a junior colleague for coffee. Introduce something new to your daughter. Create a mentoring program at work. Ensure you are an informed voter. Avoid negative words and phrases. Encourage others through your words. Volunteer and donate to help girls and women.

Advocacy is critical nonprofit work. It advances the work of a nonprofit in ways that direct services can’t. Advocacy opens up our thinking to new perspectives. It encourages those of us who may feel powerless to join together and make our voices heard. It is a way to engage donors in the ongoing work of a nonprofit. It is more than writing a check: it is an opportunity to open our homes to talk about an important issue. It helps build relationships within our community – and nationally. Advocacy makes the case for change. We have the opportunity to tell a compelling story and encourage others to take actions large and small, and to give. Advocacy can open up your nonprofit to energy, something most of us need.

Advocate for girls and women October 25th – 31st. Let’s choose to Stand Beside Her.

Learn more at  www.standbesideher.org

Copyright 2015– Mel and Pearl Shaw

Mel and Pearl Shaw position nonprofits, colleges and universities for fundraising success. For help with your fundraising visit www.saadandshaw.com or call (901) 522-8727.

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Reasons why philanthropy begins with you

Posted on September 21, 2015 | Leave a comment

Giving from the heart“What size shoes do you wear?” That was what we heard. We saw a well dressed woman casually take off her sneakers and give them to a woman who appeared to be homeless. Both were getting cream and sugar for their coffees at Starbucks. One walked out with designer sneakers on her feet while the other got into her car wearing socks.

We looked at each other. It happened in less than five minutes. A casual conversation between strangers that ended with an act of charity and kindness that made an immediate material difference in one woman’s life. If we hadn’t been sitting right next to where the conversation took place we would never have known it happened.

Something inspired the more affluent woman to take action immediately. She saw a need and she filled it. She didn’t wait for someone else to take action. She didn’t refer the other woman to a nonprofit, church, or government agency. She took the shoes off her feet and gave them to her.

It was a touchstone event for us. It reminded us that at the heart of nonprofits is passion, concern for others, a desire to make a difference. This beautiful, personal act of kindness reminded us of the goodness that surrounds us. We saw it as a reflection of the spirit, compassion, and love that is a driving force for so many nonprofits.

In this column we typically share information and suggestions related to the art and science of fundraising. Yet at its heart fundraising – or philanthropy as it is referred to in some circles – is about a love for humanity. It is that love which we need to keep front and center when we get tired, angry, disappointed, or frustrated. That is what draws so many of us to the nonprofit sector in the first place.

That love should be the cornerstone of building strong and vibrant organizations that address the immediate concerns of people in need. That love should be what sustains us in long-term policy and advocacy work that addresses the underlying causes of poverty, inequality, and injustice. Love and compassion can temper our tongues when we want to lash out at others, or when we wish people would “just give” so we can get on with the important work of our organizations.

Love in action binds us together in a united vision. Love in action keeps us at the table as board members when we disagree on a specific matter. And love in action sustains us when the road seems long and our vision appears clouded.

Our suggestion: let’s try infusing love more fully into our consciousness and our actions, including fundraising. Let us lift up those who give and invest. And let us give with an open heart.

Image courtesy of Clare Bloomfield at FreeDigitalPhotos.net

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.” They provide fundraising counsel to nonprofits. Visit them at http://www.saadandshaw.com. Follow them on Twitter: @saadshaw.

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How to fundraise without a powerful board

Posted on September 14, 2015 | 2 comments

Empower

Fundraising in an Imperfect World– Part Two

What if your nonprofit isn’t comprised of people with power, wealth and influence? What if your board chair can’t pick up the phone and raise $1 million? How do you compete when you feel other organizations are supported by power-brokers and you can’t get your message heard?

Here are our thoughts. Use the assets available to you. Build a team and relationships that will serve you for the long run. You may be surprised by the resources and riches available within your network. Here are some suggestions to consider.

First, remember it’s hard to raise money from behind a desk. You have to be constantly out in the community making the case for your organization or institution and developing relationships. This is your work as CEO. It’s also the work of board members and your development director or vice president. Get the pulse of your community and find ways to implement your vision in partnership with others. Take names! Build your list of contacts. Stay in contact. Don’t depend on social media for your communication – build and nurture mutual relationships.

Consistently grow your list of prospective donors. If you need to raise $250,000 we recommend creating a list of people, businesses, foundations and granting agencies who can give a combined total of $750,000. You don’t have the luxury of assuming people will give the amount you request: you need enough prospective donors to cover the reality that not everyone gives. Even if you think it is a “sure deal” make sure you have a Plan B.

Talk with your staff, advisors, board members and friends. Ask them who they know and who they can influence. It’s not only high profile people who can open doors! You don’t know who knows who – if you don’t ask you may be missing an opportunity. For example, our experience has shown that barbers, hair stylists, maids, waiters and waitresses have the pulse of a community.

Keep it personal. If there is someone within your organization who knows a donor or volunteer, ask them to take the time to personally thank those who give their time and money.

Always debrief with your development director. Let him know who you are visiting. Make sure contact information for those you meet is entered in your database. Don’t assume you are the only person with relationships: ask team members for suggestions before going into a “big meeting.”

Become politically astute – know your government leaders and make sure they know you and the priorities of your organization.

You may feel frustrated that your board or staff need to “catch up” with you. Don’t let that get you down. It is your responsibility to communicate with passion and vision, set direction, and invite others to join you.

Additional reading: 10 Solutions for a board who won’t fundraise 

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.” They provide fundraising counsel to nonprofits. Visit them at http://www.saadandshaw.com. Follow them on Twitter: @saadshaw.

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Ten solutions for a board who won’t fundraise

Posted on September 7, 2015 | 1 comment

Fundraising in an Imperfect World– Part One

fundraising, FUNdraising Good Times, nonprofit board, Saad&ShawWhat do you do if your board doesn’t have the connections, experience or willingness to be involved in fundraising? How will your nonprofit secure the money and resources it needs to deliver on its mission?

We encourage board-led fundraising. We believe that when board members are actively involved in fundraising the nonprofit organization or institution will be more successful. Board-led fundraising includes active involvement in determining fundraising goals; identifying, cultivating, soliciting and stewarding donors; making a gift of their own; and engaging others in giving and fundraising.

But what if your board is reluctant to fundraise or simply refuses to “give and get?” There are many reasons for this response. Members may not have been recruited to fundraise. They may be engaged in campaigns for other nonprofits. They may not know how to provide guidance and direction as it relates to fundraising.

If you find yourself in this position here are 10 things you can do as a nonprofit executive:

  1. Appeal to your board to increase their participation in fundraising in spite of original board responsibilities which might not include fundraising
  2. Visit each board member individually to learn more about the “hidden gems” – those ways an individual board member could be of service, or the reasons for reluctance to fundraise
  3. Take your board on “field trips” to observe other nonprofit boards in action
  4. Ask board members to recruit someone they know – who has experience fundraising – to work with each as a partner. Working in teams with colleagues from outside the board can build capacity and expertise.
  5. Develop an alternative fundraising group such as a development taskforce, advisory council, special development committee of the board, or friends committee. These are people who can open doors, solicit, and provide guidance and strategy. They should be recruited with an explicit request to assist with fundraising.
  6. Hire a consultant to work with the board to help increase their knowledge of fundraising responsibilities and ability to participate in fundraising
  7. Assume more responsibility for fundraising. You and your staff will have to be more active and proactive.
  8. Scale your fundraising needs/goals to meet the capacity of board members and staff.
  9. Work with board members to determine which fundraising projects they could take the lead on. This can help build experience and confidence and hopefully increase their appetite for more involvement. Don’t involve board members in a big project they don’t have the capacity or experience to achieve.
  10. Keep the board informed on a consistent basis regarding the status of fundraising, funds received, prospective donors identified, potential shortfalls or surpluses and the implications.

We live in an imperfect world. Work with your board, recognize their strengths and offset their challenges.

Image courtesy of David Castillo Dominici at FreeDigitalPhotos.net

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.” They provide fundraising counsel to nonprofits. Visit them at http://www.saadandshaw.com. Follow them on Twitter: @saadshaw.

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12 things to consider before you start a nonprofit

Posted on August 31, 2015 | Leave a comment

Thik OUtside the BoxThe nonprofit sector is diverse and innovative. People are always creating solutions to the many challenges that arise. We see a problem and seek to fix it. We experience something wonderful and we want others to share in our joy. There are two ways that nonprofits are different from for profit organizations: most nonprofits seek contributions from others as a form of revenue, and board members or trustees do not benefit financially.

Nonprofits are often referred to as 501(c)(3) organizations. This is in reference to the IRS tax code that defines an organization as tax-exempt. Here’s what the IRS says:

“The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals.  The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.”

“The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization’s net earnings may inure to the benefit of any private shareholder or individual.”

Before you file for 501(c)(3) status we suggest you take the time to answer the following:

  1. What are the goals, vision and mission of the proposed nonprofit?
  2. Have you done the necessary research to determine if there is a need for the proposed nonprofit?
  3. Who will your nonprofit serve?
  4. Do you have community buy-in?
  5. What type of people will you need to serve on the board? Have you identified specific people who fit your criteria? Have you talked with them about your idea and their willingness to serve on the board?
  6. How will you secure the funds you need to launch and sustain your organization? Who will you solicit? How will you secure their financial support?
  7. Do you have a business plan, strategic plan and fundraising plan?
  8. Are there organizations providing similar services?
  9. What will be unique about the nonprofit?
  10. Is your nonprofit a profit making business that has “gone bad?” Is it an unsuccessful business that you want to sustain with a different tax status?
  11. Have you created a case for support that clearly communicates your vision, fundraising goals and projected impact?
  12. Do you need to obtain nonprofit status in order to bring your vision to life? Could you become a program of an existing nonprofit?

Take your time: your community is worth it.

Image courtesy of Master isolated images at FreeDigitalPhotos.net

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.” They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them on Twitter: @saadshaw.

 

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How to create a fundraising plan

Posted on August 24, 2015 | Leave a comment

Fundraising PlanThe fundraising plan is at the core of successful fundraising. But what exactly is a fundraising plan? Is it a spreadsheet? A list of activities? A list of potential donors and funders? Our answer: it’s this and so much more.

Here are four things to consider when creating your fundraising plan.

First, your fundraising plan should be rooted in your strategic plan. The strategic plan sets the direction for your organization, and the fund development plan guides your fundraising activities so the resources needed to implement the strategic plan are available. Your fund development plan should be created as part of the strategic planning process, or as quickly thereafter as possible. Your fundraising goal should be drawn from the strategic plan. This is the core of your fundraising plan: how much do you need to raise, how will the funds be used, and what impact will result. If your strategic plan does not include financial projections, then you must put pen-to-paper and figure out your projected costs. You have to know what you are raising money for and how much it will cost in order to create an effective fundraising plan.

Second, include an initial version of the case for support. This document is a primary communication piece that focuses your fundraising. Use the projections and information mentioned above to clearly and concisely communicate your fundraising story. Use facts and figures, projected impact, and emotion to make your case to individuals, foundations, corporations and/or government agencies.

Third, define your campaign structure and roles and responsibilities. Your plan must include roles and responsibilities for staff and volunteers so everyone knows what they are responsible for and can hold each other responsible. These can be used when recruiting volunteers: they let people know what specifically you need help with.

Fourth, create fundraising activity chart. This is the “heart” of the plan. It should cover a two-to-three year period, broken down into quarters. The chart should communicate actions to be taken, person responsible, projected outcome, and time frame. It must include the key fundraising tasks of identifying, cultivating, soliciting, and stewarding current and prospective donors. It should be reviewed and refined each quarter.

For example, if your nonprofit seeks major gifts your activity chart should communicate who is responsible for cultivating which donors, and when the cultivation and solicitation activities should take place. Don’t save everything for the 4th quarter. Likewise, special event fundraising should begin a year in advance.

Your fundraising plan should cover two-to-three years, be easy-to-read and understand, and become your go-to source for all things fundraising. Be sure to include a budget – what you project it will cost you to meet your fundraising goal. Remember to use your plan as a constant reference. Let it guide your progress and inform your adjustments.

Related resources

1.     How will you fund your strategic plan

2.     Vision, mission and fundraising

3.     To hire or to plan, which comes first

Image courtesy of Mister GC at FreeDigitalPhotos.net

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.” They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them on Twitter: @saadshaw.

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Nonprofit solicitation cycle

Posted on August 10, 2015 | Leave a comment

donateWhen is the right time to solicit a gift from a current donor? Do you send a letter once a year and hope for a gift? That’s one strategy. Some nonprofits believe it is a good one. Their logic: “we don’t want our donors to feel we’re always asking for a gift” Here’s our guidance: begin the solicitation process when you say “thank you.”

You want to create awareness, provide opportunities for engagement, report on your progress, and encourage donors to make additional gifts. Touch your donors with three solicitations throughout the year: two should occur before your year-end solicitation. Each donor should hear from you throughout the year, regardless of the size of their gift. Tailor your communication to meet their method of giving.

Here are 11 suggestions for your consideration.

  1. When you receive a gift send a thank you note and receipt within 48 hours.
  2. Take a moment to create a connection: depending on the size of the gift and the location of the donor follow up with a visit, phone call or personal email.
  3. Keep your donors informed. Send a progress report on the organization, your campaign and impact. Include photos and quotes. Share upcoming events and dates. Keep it short – make every word count. Send via U.S. mail or email. You can also post to social media, but don’t let that take the place of personalized communication.
  4. Extend an invitation to visit your facilities and see your programs in action. Invite donors by phone, or with an electronic or print invitation. Again, keep it personal.
  5. Encourage donors to become involved. Share information about one-time or ongoing volunteer opportunities. Be as personal as you can, inviting people to volunteer for programs or activities you believe are a match with their interests.
  6. When you have events take the time to send an invitation. Pick up the phone for an extra personal touch for long term supporters (regardless of gift size) and major donors.
  7. Send another progress report. Consider highlighting a specific program. Include a solicitation. Don’t worry – you are not “over asking.” People cannot give if you don’t give them an opportunity to support your work.
  8. If you haven’t yet made a personal call, have someone from your organization call to share information and provide an update.
  9. Send a “state of the organization” report. Written by the executive director, this is an annual review sharing the strengths, challenges and opportunities facing the organization. Go ahead, include a solicitation.
  10. In early November send out your year-end solicitation.
  11. Start the cycle again with thank you.

Think of this: 30% of this year’s donors may not give again next year. Can you afford that?

Thank you begins and ends the solicitation cycle for a nonprofit.

Image courtesy of winnond at FreeDigitalPhotos.net

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.” They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them on Twitter: @saadshaw.

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What is a worthy cause?

Posted on August 3, 2015 | 1 comment

Whats a Worthy CauseWe noticed that people – including ourselves – talk about “worthy” causes. In many ways the phrase is a “seal of approval.” Yet what’s “worthy” to one person or group, isn’t necessarily “worthy” to another. The phrase assumes shared values, but doesn’t always make clear what those values are, or why the cause is worthy.

Does helping one person make a cause a worthy? We’ve heard people say, “if we help just one person, it’s worth it.” We tend to question that logic: is it really “worth it” – for example – to have an organization with a $300,000 annual operating budget that “helps just one person?” We know that’s an exaggeration, but on a feeling level, many people feel that way about organizations they are passionate about. They are saying “our work is priceless.” That may be true, and there is a price attached to the work of nonprofits. In most communities – and in most households – there are limited funds and resources to be allocated.  The issue of worthiness arises in the creation of criteria by which we make decisions. Some of these are spoken, and some of these are unspoken and often unconscious.

Other people believe an organization is worthy if it reaches a large number of people, has economies of scale, talented leadership, effective programs, consistent evaluation, and highly qualified staff. They can “make a dollar go far” – and that is the source of their “worthiness.”

Some organizations serve people and families that other nonprofits cannot reach. Some offer specialized services to hard-to-serve populations, or to communities where “tried and true” solutions just don’t work. The cost to serve one individual or family may be higher for these organizations, than others. Does that make them less worthy or more worthy? Who decides?

Related to this, which is more important: direct services that impact the lives of individual families and help them meet their immediate needs, or investments in public policy that change conditions for large numbers of people? Who decides which is more “worthy?”

“Worthiness” is a designation bestowed for different reasons. Sometimes an organization’s mission is deemed worthy and that overrides the question of whether or not their impact or outcome is worthy. Worthiness can be bestowed when a donor makes a gift. It is also a designation bestowed by the people served or advocated for.

The dictionary defines worthy as “good and deserving respect, praise, or attention; having enough good qualities to be considered important, useful, etc.  Having worth or value: estimable. Or, having sufficient worth or importance.

Our question to you: how do you define “worthy?” Can you communicate the value of your organization without using the word “worthy” or implying that others are somehow less worthy? What exactly makes your organization worthy?

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.” They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them on Twitter: @saadshaw.

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Nonprofit fundraising values

Posted on July 27, 2015 | 1 comment

Values are at the heart of a nonprofit and its operations. Our question to readers: what are your fundraising values?

MoneyWe truly understand the importance of securing money and resources. At the same time we caution against a “money first” approach to fundraising. We believe that fundraising should be grounded in a nonprofit’s values. We offer six fundraising values for your consideration.

  1. The goals and visions of a nonprofit should first meet the needs of the community served. We all have individual dreams and a vision for a better tomorrow. When crafting or reviewing the vision and goals for your nonprofit make sure they meet community needs and are more than a vehicle for your personal aspirations. Make clear how your nonprofit will benefit your community, and keep community benefit as a priority at all times.
  2. Leadership should fully understand and support the nonprofit’s vision and goals. There should be no question about the organization’s or institution’s vision for the future, and how it will progress towards that vision. The executive staff and board should use the nonprofit’s vision and goals as a compass to guide their individual and collective work.
  3. A successful nonprofit should be volunteer led. While the nonprofit sector is increasingly professionalized with staff hired to support the implementation of a nonprofit’s vision and goals, each nonprofit should have strong volunteer leadership. Professional staff help ensure a full-time focus on the nonprofit’s work by individuals who believe in the vision and have the professional qualifications to deliver the services promised in the mission and goals. Volunteer leaders help keep the organization grounded in its vision and focused on its goals. When volunteers take the lead in raising funds, the impact can be far greater than a fundraising initiative that is staff driven.
  4. Fundraising should start with the strengths and resources that are currently available. Start where you are and take advantage of the opportunities available to your nonprofit and then extend your reach. Many nonprofits have relationships with individuals who want to provide resources, make introductions, or host home/office events. Start there. Make your case.
  5. A fundraising initiative should be guided by a plan that is derived from the organization’s strategic or business plan, and influenced by market research (feasibility study). Don’t jump into fundraising with a “we need money” approach. Craft your strategic business plan, learn how others respond to your plan, and then begin fundraising in a consistent, systematic way.
  6. The operations of a nonprofit should be open and transparent. We can’t say it enough. Be open, accountable, and keep your operations and financials transparent. There should be no secrets. Answer questions honestly; proactively provide information regarding finances, operations, impact and outcomes.

Your fundraising values can guide your decisions for short-term and long-term success.

Image courtesy of Idea go at FreeDigitalPhotos.net

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.” They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them on Twitter: @saadshaw.

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