Tag Archives: fundraising

Is your fundraising connected to your strategic plan?

Posted on September 30, 2009 | 1 comment

jigsaw_puzzleLast week we conducted two different workshops for board members from two distinctly different organizations on different sides of the country. One was a board comprised of medical professionals, the other was a University foundation board with diverse membership. One has an annual fundraising goal of less than $500,000 and the other has a $4.2 million goal. Yet the results of both workshops were the same. Board members ended each meeting agreeing to “update our strategic plan.”

The purpose of these workshops was not strategic planning. These were workshops designed to educate and engage board members about their responsibility for fundraising and their accountability to each other. During each workshop we reviewed the prerequisites for fundraising success that we have identified through our years of working with diverse organizations. Both boards focused on prerequisite number five “A compelling case for financial support that ties back to the strategic plan.”

The case for support is what people communicate to potential donors about the impact of their organization and the reasons for supporting its work. But these need to be connected to a strategic plan. If, for example, your organization’s strategic plan calls for increasing access to health care by 15% for children within a specific geographic area, then your fundraising should be organized around asking people, businesses and foundations to support you in this effort. If, instead, you are raising money to extend services to newly unemployed adults then your fundraising is not tied to your strategic plan.

There are plenty of good reasons why healthcare should be extended to the unemployed. The only problem is that this is not the identified focus of the organization. Taking the time to review, and as necessary, revise your organization’s strategic plan helps make sure that your activities and the use of your resources are in line with your strategic plan.

Many donors, particularly those who give larger sums of money, pay close attention to the congruence between fundraising and your strategic plan. We believe it is simply a good business practice.

So, maybe we shouldn’t have been surprised that both organizations decided to begin their work with a focus on strategic planning. This doesn’t have to be a difficult and time consuming task. At its best strategic planning focuses an organization’s energy, resources, activities, public relations and fundraising. Working from a current strategic plan helps everyone determine how to best use limited resources.

– Mel and Pearl Shaw!

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Proposal Writing in the Age of Twitter

Posted on August 25, 2009 | 3 comments

cheryl-clarkeWelcome guest blogger Cheryl Clarke. Here’s Cheryl’s words of wisdom on proposal writing in the age of twitter.

Twitter proposals.  That’s what I call those online grant application forms that ask a series of questions which applicants must answer within a specified word, or even character, count.  Can a nonprofit agency effectively tell its proposal story given such severe space restrictions?  It’s not easy, but it can be done. 

Online application forms require grantwriters to go on a verbal diet and write low-fat proposals rather than more caloric full-blown narratives.  For most of us, this means that online proposals are more challenging to draft.  Why?  Because we’ve got to make each word count.  We do not have the luxury of slowly building our case for support.  We’ve got to get straight to the point without taking a lot of descriptive detours.  Knowing what to include, as well as what to leave out, is essential.  What guides our decision-making?  Here are four “rules” I follow in preparing online applications.

• Focus on answering only the question that is being asked.  Unlike a tradition proposal narrative where the writer often has a little more flexibility in presenting the story’s sequence, the questions in an online application form dictate the narrative flow.  Writers must focus on the question at hand and should not digress into other topics as doing so will eat words and further limit the amount of available space. 

• Think of each answer as a mini story that must be complete in and of itself.  At minimum, each response requires a topic sentence that introduces the issue being discussed, a sentence or two that elaborates on the topic, and finally a concluding sentence that resolves the issue.  Naturally, if the application allows a greater word count, the mini story can be expanded.

• Don’t be afraid to use a descriptive word or phrase, just do so judiciously.  A well-chosen adjective or adverb adds color and often emotional depth to an answer.  Dispense with vague descriptive words such as “unique” and “innovative.”  Instead, show the reviewer what makes your agency’s work unique and how your agency’s service delivery is innovative.

• Write, review, edit, then edit again.  To ensure the required brevity of answers, first write a draft response to the question asked, then review and edit what’s been written, then edit again.  Be merciless with the editing pen and seek to eliminate all unnecessary words.

With a 400-word count for this article, this story’s end has been reached!

Learn more about Cheryl Clarke’s expertise, services, workshops and books!

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Individual Donor Research – San Francisco Workshop

Posted on July 24, 2009 | Leave a comment

DERMajor Gifts on Limited Time: Using Research to Prioritize Prospects
Presented by Barbara Pierce
Friday, August 14, 2009, 12:00 to 1:30 p.m.
Development Executives Roundtable (DER)
Location: The Foundation Center, 312 Sutter Street, 2nd Floor, San Francisco
Co-sponsored by The Foundation Center

With so many responsibilities, how do you decide how to use your time most wisely? In this workshop, you’ll learn valuable tools to use in making time-efficient decisions about which prospects to focus on for the best results. We’ll discuss what prospect research can (and cannot) answer for you, where to start your search, tips on best research sites, an introduction to electronic wealth screening and finally, how to utilize the information you do find to cultivate and solicit potential donors.

About Barbara:
Since she was handed a list of 1,500 prospects at her first development job, Barbara has been an avid student of how to quickly identify the best prospects through research. Based in San Francisco, she is a development consultant with 15 years of experience in working with major gift prospects on gifts ranging from $10,000 to $1 million plus. She has worked with organizations including: California League of Conservation Voters, Planned Parenthood, Mills College, REDF (formerly The Roberts Enterprise Development Fund) and the George Lucas Educational Foundation. She can be reached at pierceconsulting2002@yahoo.com

Information/Registration:
Cost for Luncheon: DER members = $12, non-members = $20. Lunch is included in your fee. Because of DER’s special relationship with the Foundation Center, participants who wish to bring their own lunch can attend the meeting for no cost, but you still MUST register at the DER website. Please reserve by Wednesday, August 12 at www.dersf.org. Programs often sell out so don’t delay!

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Boards and Fundraising: Common Complaints and Proposed Solutions

Posted on July 21, 2009 | Leave a comment
Is Your Board a Fundraising Board?

Is Your Board a Fundraising Board?

We hear a lot about boards and fundraising.  Below are comments and questions we hear from leadership and staff of organizations and from board members.  Do these sound familiar? Take a look.

Common staff comments and questions:

  1. How can we get our board more involved with fundraising?
  2. We give them a goal each year, but they never meet it.
  3. We can’t get 100% of our board to give.
  4. Our board is more interested in policy than in fundraising.
  5. Everyone agrees on our fundraising plan at the board meeting, but board members just don’t follow through.

Common board comments and questions:

  1. We are willing to get involved, but the goals are unreasonable.
  2. I didn’t join the board to raise money.
  3. They keep changing the fundraising goal – I need a strong and consistent case for support before I introduce my contacts to the institution.
  4. The CEO is unwilling to meet with prospective donors.
  5. I keep asking for training but I really haven’t gotten any yet.

It is always easier to point the finger at someone other than ourselves when we fall short of our goals. Here are some actions for staff and board members to take that can help increase collaboration in the area of fundraising. Circle each of the actions you are willing to take.

Staff Actions

  1. I am willing to meet individually with each board member to review our fundraising goals and objectives and to ask each board member how she or he would be willing to help us meet these goals.
  2. I am willing to let the board determine its fundraising goal.
  3. I am willing to secure ongoing fundraising training for the board that includes time for role playing, time for the board itself to agree upon a fundraising goal, and time for the development of strategies regarding how board members will achieve their agreed upon goal.
  4. I am willing to integrate quick and fun activities into all our board meetings that build the fundraising skills of the board.
  5. I am willing to work with the board president to learn how she would like to personally solicit each board member. I am willing to provide her with support, coaching, materials and training as needed so that she can take ownership of the board solicitation process and ensure 100% giving by all board members.
  6. I am willing to create a culture within our organization that is accountable, transparent and responsive to donor questions and requests.

Board Actions

  1. I am willing to make a gift to the institution that represents one of my largest annual philanthropic donations.
  2. I am willing to engage in fundraising as part of my responsibility as a board member even if feels uncomfortable to me.
  3. I am willing to invest the time it takes to become conversant in the mission, goals, programs and strategic plan of the organization I serve.
  4. I am willing to ask those I know whose values are in alignment with those of the institution I serve to make a gift to the institution or to a specific project.
  5. I am willing to ask questions of the organization’s leadership so that I can best respond to questions that other people may have about the organization. I am willing to ask the difficult questions that people talk about privately but won’t address publicly.
  6. I am willing to take the initiative to make sure that our board meetings always include active discussion and reporting by board members on the topic of fundraising and what we are doing to fulfill our agreed upon fundraising agreements.

It is always easier to point the finger at others. Our question is this – what are you willing to do?

Saad & Shaw provides organizations and institutions with creative and engaging board workshops. If you would like for us to work with you, please let us know. An easy first step is to work with How to Solicit a Gift: Turning Prospects into Donors. This book is written for fundraising volunteers. It walks the novice and the professional through the process of preparing to solicit, as well as guidelines for making the ask, and following up.

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Ed McMahon and black history

Posted on June 30, 2009 | 1 comment
Ed McMahon - co-host of the Lou Rawls Parade of Stars

Ed McMahon - co-host of the Lou Rawls Parade of Stars

This week America mourns the passing of Ed McMahon an entertainment giant, household name, and trusted American icon. He is remembered by the general public for his 30 years as Johnny Carson’s side-kick on The Tonight Show, his 12 years as the host of Star Search and his 16 years co-hosting TV’s Bloopers and Practical Jokes with Dick Clark.

He earned a place in American cultural history. And he earned a place in African American history.

As the creator and producer of the United Negro College Fund (UNCF) Lou Rawls Parade of Stars telethon I want to salute Ed McMahon for his work as the show’s co-host for over 17 years.

From the very beginning Ed lent his name, his prestige and his connections to the telethon. His role as co-host helped UNCF raise over $500 million and helped send thousands of young African Americans to college.

McMahon shared his celebrity, his reputation and his integrity with the telethon. His involvement helped to bring well established non-black entertainers onto the show giving it a “Good Housekeeping Seal of Approval.” His continuous role as co-host helped to extend the college fund into white homes who otherwise might have dismissed the telethon – and its important work of raising scholarship funds – as a “black thing.” Ed brought a diverse audience to the telethon. He gave the show credibility. He helped make the education of young black students an issue for all Americans to embrace.

When we wanted to engage a non-black entertainer Ed would make it happen. He would come into a room where we were meeting, pull out his little black book and personally call the entertainers we wanted on the show. He would ask and they would say yes.

You can’t buy what Ed McMahon gave. He was flexible and patient. He never asked for special treatment. He didn’t have an ego problem. He was a consummate professional. You could put a new script before him and he would read his lines as if he had been practicing for weeks.

He was so well liked by all. Of all the hundreds of stars who appeared on the show he was the easiest person to work with. He would spend enormous hours rehearsing. He never complained about all retakes and retaping. His famous line was “Point me where to go and I’ll do it.”

Ed McMahon is part of African American history!

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Asking for money is just one step in the process

Posted on June 8, 2009 | Leave a comment
Fundraising Cycle - More Than Asking for Money

Fundraising Cycle - More Than Asking for Money

Now more than ever many organizations are looking closely at their fundraising programs. Leadership expects the fundraising department to do more, often with less.

Organizations and institutions are being challenged in new ways and development departments are facing new demands.

One of those demands is to move away from development to focus more exclusively on fundraising. Development is the long term process that includes fundraising. It also includes identification, cultivation, solicitation, acknowledgement, engagement and stewardship.

In these times you may feel the pressure to focus on bringing in the money and may be asked to ignore the larger part of the development cycle. But you may be cannibalizing your development and fundraising function in the process.

Identification is the process of identifying individuals with the interest and financial means to support your organization.

Cultivation is the process of getting to know your prospective donors and letting them get to know your institution.

Solicitation is when you ask for money. This is the one piece of the process that is sometimes mistakenly seen as the whole. But it is only one part. Solicitation can take place by mail, on the internet, in person, from the pulpit if your organization is a church, or at an event. You can ask an individual for a specific amount, provide a range of options, or simply let them determine what they can give. Solicitation also takes place when you submit a proposal to a foundation, corporation or funding agency.

Acknowledgement is when you thank and acknowledge donors for their gifts. This includes sending thank you letters and tax receipts, and including gift acknowledgements in your annual report or newsletter.

Engagement brings your donors closer into the life of your institution. Many donors can give more than money. They can give their time, provide technical expertise, help secure resources and services at reduced prices or advocate on your behalf.

Stewardship keeps you in relationship with your donors. You think about them at times other than when you are in need of money. You invite them to events, keep them updated on your organization’s programs, successes and challenges. 

As you can see, fundraising is just one part of development. Don’t try to save money by treating your donors as an ATM machine. Remember to focus on all the steps in the development process.

Learn more about fundraising

Copyright 2009 – Mel and Pearl Shaw

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I’ll take a percentage

Posted on June 3, 2009 | 2 comments

Fundraising ethics - something to consider

Imagine this. Your nonprofit organization is short on funds. A former co-worker tells you she knows someone looking to give $25,000 to an organization like yours. She says, “I’ll introduce you and facilitate the process if you give me 10 percent of whatever she gives you. You know, a finder’s fee.”

Or what about this. Your neighbor says your organization is a perfect fit for grants being made by the Obama administration. He says, “I’ll write the grant. If you get it, you pay me 10 percent. If you don’t get it, you don’t have to pay me.”

What do you do?

The above scenarios might seem ideal. You don’t have to do anything and your organization will financially benefit. You don’t have to hire staff, engage board members or spend a lot of your own time trying to secure a gift that may or may not come through. Do you say yes or do you try to reposition the offer?

As appealing as it may seem, both of the scenarios violate the Association of Fundraising Professionals Code of Ethical Principles. That’s right. Fundraising is a profession and fundraisers have a professional association that develops ethics and monitors adherence.

Ethical standard 24 from the association’s code of ethics states, “Members shall not pay finder’s fees, commissions or percentage compensation based on contributions and shall take care to discourage their organizations from making such payments.”

Here is the reasoning. Raising funds for a nonprofit is about obtaining the resources needed to advance the organization’s charitable or social mission. Importance is placed on retaining the trust of donors and ensuring that funds are used to fulfill the agreed upon social mission. Percentage-based compensation and finder’s fees can give rise to betrayal of philanthropic trust in an attempt to secure a larger gift and related fee.

Also, most people don’t give because of the skill and talent of your fundraiser. They give because they had a positive interaction with someone associated with your organization or because of a belief in your work. For the above scenarios, ask your coworker if she would volunteer to make the introduction because she believes in the value and impact of your organization. Ask your neighbor if he would write the proposal for a flat fee or hourly rate. Fundraising relies on volunteers and paid staff or contractors. It’s okay to pay fundraisers. Just don’t pay percentages.

Learn more about fundraising ethics at www.afpnet.org/ethics.

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How diverse is your board?

Posted on May 31, 2009 | Leave a comment

How do you define diversity?The board of directors of a non-profit organization is responsible for the organization’s financial health. The board is also charged with hiring and evaluating the executive director, creating policies and procedures that guide the work of board and staff,  with articulating the organization’s mission and vision, and ensuring the organization has access to the funds it needs to deliver on its mission.

But who are these board members? Who is making decisions for the organizations we rely on and are engaged with? If you are a member of a church or other religious organization, attend or work at a community college, seek food from a local non-profit or food bank, visit a museum, ride the bus or visit a hospital you are interacting with one of the thousands of Bay Area non-profits. And each is governed by a board of directors. They are making decisions that impact which services are offered, how donated funds are used, which government grants are pursued, and ultimately how these organizations will help – or not help – individuals, families and communities.

Board members who govern public agencies such as transit authorities and community colleges are elected. Others such as board members of faith-based organizations, private colleges and grass roots organizations are selected by people who are already sitting on the board. Still others are elected by members of the organization. This is true of membership organizations such as the Sierra Club.

The composition of the board is increasingly important to funders, donors, staff and the very people served by an organization. But what is diversity? The San Francisco Foundation holds diversity as a core value that guides its work. They define diversity as “the range and variety of characteristics and beliefs of individuals that encompasses, but is not limited to, race, ethnicity, gender, gender identity, sexual orientation, disability, age, economic class, immigration status, and religious belief.”

Here is our question for your organization – how do you balance your board’s membership? How do you ensure your board represents the people you serve? That it also includes people with access to wealth and decision makers? Do you engage individuals who can provide guidance in the areas of financial management, fundraising, personnel, and emerging trends in your content area? Are your board members required to conform to a specific viewpoint? Is agreeing with the board chair or executive director a requirement for membership? Each organization answers these questions differently. How does your organization give life to diversity?

© Copyright 2009 – Mel and Pearl Shaw

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Fundraising – Your New Career

Posted on May 4, 2009 | 1 comment

new_careerLinks updated: 2014

Is it time for you to start a new career? Is it time to make a difference in the world? To use your best skills for the benefit of those things you believe in the most? If so it may be time for you to become a fundraiser. Fundraising was listed as one of the top 30 careers for 2009 by US News and World Reports. (Thanks for Michael Magane for bringing this article to our attention!) What exactly is fundraising and why would anyone want to be a fundraiser?

Fundraising is a career with many opportunities for people with a variety of skills. We wrote about this  at the beginning of 2008. At that time real estate agents and mortgage brokers were reeling from changes in the housing market. We wanted people to know that the skills people have developed in these industries could be transferrable to fundraising. Today there is an even greater pool of people with strong skills, connections and experiences who can help build and sustain the fundraising capacity of non-profit organizations, hospitals, colleges, universities and churches. We updated our columns in 2009. (Links available at end of post)

We define fundraising as the process of bringing together organizations and institutions with the people and resources they need to deliver on their mission. It’s not arm twisting. Its’ not begging. It’s about partnership. It’s about helping individuals, families, businesses, corporations, foundations and government agencies identify those organizations who share their beliefs and who are bringing them to life.

Here is what we know about fundraising. People give to a diverse array of institutions, causes and programs. And there is a role for people with diverse skills, backgrounds, personalities and connections. Fundraising is conducted by professionals and even more so by volunteers. As a profession with a career-path there is room for introverts and extroverts, big-picture thinkers as well as people who are detail-oriented. It is for people who lean right politically and those who lean left. It is for people who are in career-transition, who are looking to make a difference and who are willing to learn. And it is for African Americans, Hispanics, Asian Americans and other people who until recently have not been well represented in all aspects of the profession. With changes in American demographics and the growth of the non-profit sector the need to diversify the profession creates new opportunities who people who have been volunteering with their churches, sororities, local schools, colleges and universities. And there are opportunities for people who are changing careers – whether voluntarily or involuntarily.

We believe our three-part series on the topic of careers in fundraising  may be even  more relevant now than it was originally written.  Here are a few key points:

  1. Positions are available with grassroots organizations, colleges, hospitals, national organizations, foundations, advocacy organizations, research institutes, churches, radio and television stations… — all types of organizations and institutions that are categorized as “nonprofits.”
  2. If you are able to secure work with a hospital, college or public radio or television station, you will learn the systems and procedures that represent best practices in fund development and fundraising. Working for one of these institutions can provide you with insight into the many different strategies and activities that comprise fundraising.
  3. If you can remember that your work is about the organization and those it serves and not about you, then you can be successful. People won’t be giving to you; they will be giving to the organization you represent. Your job will be to best promote its successes, the vision of its leadership and how donations are used to advance goals and programs.
  4. There are many entry-level, midcareer and senior-level positions within fundraising and fund development. There is also a gap between the number of positions that need to be filled and the number of individuals who are qualified to fill them. (Part three of the article lists common fundraising job titles and provides descriptions for these).

Part One  – Fundraising and fund development in the nonprofit sector are close cousins to sales and marketing in the private sector.  Learn about the benefits of a career in fundraising and fund development.

Part Two  – Find out what positions are available within the fields of fundraising and fund development

 

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Help is on the way

Posted on May 3, 2009 | Leave a comment
San Francisco Foundation logo

San Francisco Foundation's new non-profit transitions fund

If your organization is grappling with whether or not to merge with another organization or close altogether, you are not alone. The current economic climate is posing many challenges to the very existence of some organizations. For many donations are down, grants are smaller or postponed, and government funding that used to be relied on may simply no longer be available.

If your organization is grappling with difficult issues due to the downturn in the economy, there is help. The San Francisco Foundation has created a new fund called the Nonprofit Transitions Fund to help organizations reduce costs, increase productivity, merge, dissolve, or reorganize. The following is a list of the activities they are prepared to support.

  • Back office collaborations (including rent, equipment, group insurance joint purchasing, and centralizing human resources, payroll, and benefits administration and financial and grants management). Such collaborations can reduce operating and administrative costs.
  • Merger, acquisition or consolidation
  • Dissolution (voluntary/involuntary)
  • Bankruptcy or reorganization
  • Post-merger integration or closure costs
  • Service delivery joint ventures

If your organization would benefit from any of these activities you may want to consider completing the Foundation’s short and straightforward application form. You will be asked to identify which activity your organization is considering, the efforts you have already made in pursuing such an option, and what condition or situation is triggering this consideration. The application is online at http://www.sff.org or you can call (415) 733-8527.

All applications will be reviewed and select organizations will be asked to submit a more detailed proposal. That proposal will ask you to communicate information such as:

  • Evidence of buy-in from staff, board, and constituencies
  • Clear and realistic expectations of benefits/risks
  • What niche or role your organization(s) serves locally or regionally
  • An understanding of your organization’s relative competitive position and its financial strengths

If you are considering a merger, the Foundation will want to know about mission compatibility between the two or more organizations and the extent of a cultural fit, including board and staff compatibility. You should also be prepared to communicate your awareness of obstacles such as asset restrictions, endowment/bequest issues, current liabilities, deferred revenue, and other legal barriers.

While economic conditions may be the driving force behind these considerations, some organizations may become stronger and more effective by pursuing difficult choices.

There are a lot of things to consider and help is available.

Copyright 2009 – Mel and Pearl Shaw

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