Copley Raff's Giving Take

Focus … Major Giving

2012-02-21T07:39:00.000-08:00

We are what werepeatedly do. Excellence, then, is not an act, but a habit. Aristotle

A colleague here atCopley Raff constantly reminds me, and our clients, to “fish where the fishare.” By that she means to focus on theareas with the greatest potential payback and ROI. In terms of advancement “fishing,” for manyNPOs, the major donor program is the most obvious place for high returns onefforts. Ironically, it is also the most elusive areaof many advancement programs.

Time and again, mycolleagues and I - through our assessment assignments - find major giftofficers doing many tasks throughout their organizations. This work includes planning events, reviewingdirect mail copy, attending many internal meetings, scheduling meetings, andconducting prospect research. Unfortunately, most of this activity contributeslittle to the work of relationship building and solicitation of valuable donors- the core responsibilities of a major gift officer. This is true in most smalladvancement shops and even in many large shops.

So what’s analternative? Let’s take a closer look atthe major gift program designed by The Virginia Mason Foundation, thefundraising arm of Virginia Mason Medical Center of Seattle, Washington. The entire healthcare system is adopting theToyota Production System (TPS), a methodology introduced by the automobilemanufacturer to reduce waste and improve outcomes. The foundation is also adopting elements ofTPS to their development operations.

Fundamentally, theFoundation has gift officers only work on functions that lead directly to theirsuccess - closing big gifts for the organization. As a result, prospect research, schedulingdiscovery appointments, document generation, cultivation event planning, andother tactical responsibilities are no longer part of the gift officer’s listof to-dos. Gift officers are scheduledfor discovery interviews with qualified prospects through skilled and trained telemarketers. The goal of the discovery meetings is toqualify the prospect for a five figure gift. If the meeting reveals that this is the case, the gift officer preparesan engagement and solicitation strategy that contains at least one monthly“move” that pulls the prospect - with moves concerning their expressed interest- toward a major gift ask andclose.

The logistics behindthis program are designed for success. Giftofficers carry a portfolio of 20 active prospects. They each close on average about 50 asks peryear. Their pipeline is continually updatedand refreshed by other members of the advancement team. The Virginia Mason Foundation uses an elegantsystem of tracking and measuring the moves management progress, while at thesame time creating outcome data that is proving quite useful in determiningwhen to abandon pursuit of a prospect. This program is an effective mix of metrics, art, competency, and focus.

A perfect andsuccessful example of “fishing where the fish are”…using the right pole andbait.

Regardless of shopsize, advancement leaders need to take the time to insure that their giftofficers are casting their lines where they should be - prospect discovery,engagement and solicitation - and delegating other less productive activitiesto others on the team.

Yourtakes:

1. Constructgift officer job descriptions with a strong emphasis on responsibilities that enableand reward success in closing major gifts for the organization on a regularbasis.

2. Workwith the entire advancement team to redesign the advancement operation toenable appropriate focus for each team member.

3. Measureyour activities and outcomes for each development position in your shop andcontinually tinker with the system to keep it effective.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Survey Results: How Boards Feel About Fundraising

2012-02-06T09:18:00.000-08:00

Assomeone with key fundraising responsibilities, it is essential to know exactlywhere your resources - as well as deficits - lie within your organization. A constant, regardless of the mission of yourNPO, is that leadership from an organization’s board of directors is a keyingredient towards advancement success. Thus, it is critical to understand how your board feels aboutparticipating in fundraising overall. Ona more granular level, it is also important to understand what each director iscomfortable doing within the spectrum of engagement activities that constitutefundraising.

A few months ago, on this blog, Copley Raff introduced a somewhat universal concept called “The Who’s Asking Paradox.” Aspart of this conversation, we launched a survey asking advancement officers todocument how their boards feel abouthelping with fundraising. This wascaptured by participants selecting one of six facial expressions demonstratingan emotion, ranging from “terrified” to “eager.” We specifically focused on feelings ratherthan an intellectual exercise because it has been shown time and time againthat it is our emotional position that drives us; that incents us to do thingsoutside of our comfort zone. Which, formany people, includes fundraising.

Responseswere collected from an online survey contained in this GivingTake blog and inperson at the Association of Healthcare Philanthropy international conference heldin Boston in November, 2011. Here arethe results:

Terrified: 27%

Disgusted: 2%

Stubborn: 5%

Ambivalent: 41%

Happy: 21%

Eager: 4%

n = 117

Sowhat do these findings suggest? Both goodnews and less than good news. While 25% of the boards represented have apositive attitude toward participating in fundraising by indicating “happy” or“eager” (something in the water perhaps?), the other 75% are either ambivalentor have negative feelings about it, as indicated by a “terrified,” “disgusted,”“stubborn,” or “ambivalent” response.

Do youknow how your board feels abouthelping you with advancement? And yes,it really does matter. And here’s why.

Knowledgeis power, especially when it comes to helping others champion things that areoutside of their comfort zone. Here’sthe opportunity. If you are able to takethe “temperature” of your board using these emotional measures, you can designa board presentation/training to directly target the majority and minorityfeelings embodied by your board. Addressing someone’s terror is a very different strategy than movingsomeone who is “ambivalent” into the “happy” column.

Let’sget started. This exercise is fast andeasy, and most board members will be happy to participate. Hold a quick session and ask your volunteersto rank their feelings from 1 to 6 (corresponding to the emotions listed above)about how they feel concerning...

Asking a friend for a contribution; #___
Asking a relative stranger for a contribution; #___
Asking a perfect stranger for a contribution; #___
Dining with a friend; #___
Dining with a potentially new friend; #___
You (director) being asked for acontribution; #___

As partof the exercise, provide your board members with a sheet of paper with thisrating system on it, and ask them to fill in their numbers and sign theirname. This will give you an overallunderstanding of your board’s emotional position as well as how each individualfeels about participating in key advancement functions. As a result, you can begin planning yourboard fundraising optimization strategy on both the overall and individuallevel.

Yourtakes:

It is your responsibility to understand the emotional positions of your board and each director before formulating expectations about their advancement performance or potential.
Design your board engagement strategy and trainings based on realities of their emotional profiles.
Measure the board’s emotional position in a year’s time and see if you have moved the individual and aggregate needle closer to happy or eager fundraisers.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Magical Thinking…Redux

2012-01-23T07:57:00.000-08:00

I’mcrossing my fingers here that this follow-up posting will really resonate with many advancement professionals. About a month ago, this blog featured an article about fundraising ideas so outrageous and/or inactionable that they appeared to come from a galaxy far, far away. Wereceived a great deal of feedback that really brought the point home withexamples from the field.

Some ofthe comments were priceless, including volunteer suggestions such as:

"Let’sforget about printing materials and do everything on line to save money… afterall, online communications are free, and equally effective, right?"
"Whybother with a feasibility study? Everyone knows us and loves us, so whywouldn’t they make a gift?"
"So-and-sowill donate a brand new car and we can raffle it off and make tons of money."
"Wecan make up the budget shortfall with a few events."

Do any of these ring a bell with your experience as well?

You may not be surprised to learn that “magical” or “wishful”thinking has been the subject of scientific neurological research. And, youguessed it, we now know in which part of the brain it occurs. According toresearchers at the Swiss Center for Affective Sciencesat the University of Geneva, “wishfulthinking” activity occurs in the left inferior occipital and fusiformgyri of the brain. The image of thebrain below shows these areas “lighting up” when a study subject is given “wishfulthinking” stimuli.

From ascientific perspective, wishful thinking is part of the human reward system andis the product of attention bias and social identifications. Attention bias occurs when a person does not examine allpossible outcomes when making a judgment about a correlation or association.They may focus on one or two possibilities, while ignoring the rest. Socialidentifications arethe way people derive their identity from the social groups to which theybelong, and the consequences for their feelings, thoughts, and behavior ofpsychologically belonging to a group.

Keeping the above brain scan image inmind, consider this comment from a reader named Andrea about the leadership of oneof her organizations. Can you imagine how this boardchair’s brain literally lit up when they insisted, “… that all we needed to do was introduce the ability to give online andthe organization (sport related) could raise $50 million in no time at all. After all, Obama did it.”

Another reader,William, made a good point about the intersection of innovation and magicalthinking. He doesn’t have a problem without-of-the-box ideas being put forth at board meetings, because in fact, creativityis part of fundraising evolution. He gets frustrated when a board member gainstraction for their “magical” idea with a CEO and then the idea gets mandateddespite solid evidence that the concept is remarkably flawed. As fundraisers, we must continually remindourselves and our boards that “non-profit” is a tax status and NOT a missionstatement. The litmus test for any fundraising idea is pretty simple. It should produce a positive cash flow and/orhave significant image/marketing/donor relations value. In either case, realisticprojections on results should always be made before launch so that the idea canbe evaluated against expectations.

Your takes:

Understanding the genesis - and biology - of magical thinking may help you address it gracefully.

Magical thinking can become a sport among advancement officers.

Contribute your own examples of magical thinking to this discussion… play ball!

Focus On … Annual Giving

2012-01-09T10:25:00.000-08:00

"In order to change something, don't struggle to change the model, create a new model, and make the old one obsolete." - Buckminister Fuller

Acommonality amongst high performing NPOs is a strong and well oiled annualgiving program. Generallyrecognized as the foundation of advancement success, these essential efforts typicallyhave two main objectives: raising net revenue and growing the donorbase. The two in part work hand in hand;the highest ROI generating campaigns allocate significant resources towards elevatingthe giving and involvement of an organization’s most generous and loyal donors. And these “diamonds in the rough” usually arefirst identified through efforts to broaden the donor base… which, of coursecan be a costly effort.

Let’stake a look at the role of annual giving officers in terms of “typical” annualgiving programs. Except in very largeadvancement shops, it is common that the annual giving officer or officersspend their days on the following tasks: direct mail, event planning andproduction, sponsorship identification cultivation, and relationship building withleadership donors…when there is time. Unfortunately, the execution of these responsibilities is usually in therank order just stated. The most time, effort,and money are spent on activities with the least short-term return.

Thismay sound counter-intuitive, but the best and most successful annual giftofficers do not focus their time on the mail program associated with the annualgiving program. These winning professionalsfocus their time on building one or two signature events that include a greatdeal of personalized donor relations; expanding the donor base through eventattendance; and stewarding their best annual donors year-round. The direct mail program doesn’t take up themajority of their day to day activities; it seen- and used, as the “entrypoint” in the gift cycle pipeline and for the identification of future majorgifts. For example, just think how much more valuable a $1,000 or $5,000 maildonor could be if they formed a real relationship with your organization, andcould be subsequently asked one on one for a leadership annual gift, campaign, orplanned gift. The most successful annualgiving officers already do - and spend their days developing strategies to movethese donors up the giving ladder.

Asa leader in your organization, it is imperative that you clearly articulate theobjectives of your annual giving program in order to focus everyone’s time, energy,and resources most effectively. At thesame time, you must be certain that these goals do not conflict with otherdevelopment priorities, and provide an adequate time frame for measuringsuccess. Once you have your objectives,be realistic about executing the necessary tactics to accomplish them. You’ll be more successful and your staff willbe happier because they will more clearly see the value and results of theirwork, and how their efforts are proportional to results.

Sothat all being said, what’s the best way to optimize an annual program? By fishing where the fish are, and allowingyour donor-centric professional to focus on the road map and insights your mailprogram provides - not the incredibly time consuming execution of theprogram. If you have a successful mailprogram run in house by an annual giving officer - who is also responsible forsome events, and does very little face to face relationship building withdonors - think how much more successful they could be in terms of revenuegeneration if the planning, execution, and analysis of the mail program wasremoved from their plate of duties.

Unlikethe “personal” nature of just about every other aspect of fundraising, it ispossible, financially advantageous, and in many cases advisable, to outsourcethe mail program to a consultant who has made a career of direct mailsuccess.

Reallocatingstaff effort toward the mail program has other department-wide advantages aswell. If you have a large and well rateddonor base and can focus your staff on key fund and friend-raising objectives,you will have the foundation to build the argument to bring on additionalpersonnel to maximize the outcome for each objective. This might include anadditional leadership gifts officer, events person, or greater expertisesupporting your mail program. Inaddition, you will be able to monetize the argument, demonstrate a strong ROI, andset the stage for bringing focus,accountability, creativity and success to your advancement program.

Yourtakes:

Your annual fund programmust have clearly articulated objectives containing timelines and measurableshort-term and long-term outcomes.
Scale effort to revenuegenerating potential for your organization; at the end of the day the bigdollars and relationships come from face to face meetings and the ability toestablish rapport with key donors and prospects.
Be bold in considering howto best accomplish your objectives and in eliminating legacy distractions andassumptions; this may include bringing on outside counsel for greater efficiencies.

Magical Thinking… Be On Guard

2011-12-27T08:50:00.000-08:00

Giveme a show of hands…how many of you have been in a meeting when a board member,boss, or colleague proposed a fundraising idea so outrageous or nonactionablethat it appears to come from a galaxy far, far away?

Asconsultants, we frequently find ourselves protecting our clients from fallinginto the trap of “magical thinking.” Andjust what is that? In a nutshell…impractical ideas or over enthusiasm for concepts that have no grounding inreality. A key role for a consultant is identifyingunrealistic or inappropriate fundraising ideas and shooting them downdiplomatically - before the group wastes valuable time discussing or pursing afool’s errand. Of course, this is done gently, making theroom feel like there may be elements of the suggestion that have potential… but for another time.

Magicalthinking often rears its head during meetings concerning fundraisingevents. Advancement committees, anxiousto compete and short on original ideas, will often bring up a high profileevent another NPO is doing and propose something similar. These usually involve elite locations,speakers, and/or honorary event voluntary leadership. To give the conversation a reality check, I’lljump in and ask something like, “Does anyone know if their gala makesmoney?” Or, “That golf tournament hasbeen operating for nearly twenty years and it may take us that long to reach alevel of net revenue that will satisfy us.” Or the biggest truth of all… “Their constituents are relatively affluentand our supporters are far from it.”

Magicalthinking also occurs amid the rating and screening of major giftprospects. We are undertaking campaignplanning with a client and are in the early process of determining prospectivedonors and forecasting their realistic gift potential. While philanthropic capacity is not inquestion, thanks to sound research, overly eager staff and senior executives continueto propose outlandishly high ask amounts in a virtual vacuum. The numbers bantered about the meeting table showno correlation whatsoever to donor affinity, personal access to the donor,levels of engagement or inclination, or research about their otherphilanthropic interests. On the otherhand, volunteers often suggest low ask targets because they are projectingthemselves in the hot seat and want to soften the blow.

Athird place magical thinking kicks in has to do with timelines and logistics. Consider the following realsituation. An advancement officetypically raises $2 million annually. The organization wants to embark on a $20 million campaign. With only a few extraordinary potential giftsidentified, the CEO or campaign chair expects to wrap up the campaign in 18months. That’s ten times the annual goalover a year and a half. Without a doubt,such naivety elevates magical into blissful thinking.

Itis the responsibility of consultants, seasoned advancement staff, and officersto bring reason and logic to these development related discussions. We must always be on guard for distractingand unrealistic magical thinking by exerting our leadership and inserting bestpractices in order keep the process on course in a comfortable and diplomaticway. Recently, two of my Copley Raffassociates were leading a development meeting of senior executives. The conversation turned to almost fantasylevel magical thinking. In order to getthings back on a constructive track, my team leader told the entire room to“get real.” Only once the discussionreturns to reality can advancement strategies and tactics become productive.

Iwas once paid one of the greatest compliments of my career by a campaigncabinet volunteer. He told the chairthat “Larry has a way of discarding your idea and making you feel good aboutit.” Let us not forget that there isboth an art and science to our work.

Your takes:

Beprepared to be able to identify and respond to magical thinking in ways thatkeep your advancement stakeholders grounded and in the game.
Constructand communicate expectations that are based in reason, best practices, and harddata.
Leavethe door open for the occasional “blue sky” conversation in order to generatecreative ideas and push the envelope for further accomplishments, but make itclear that these brainstorming sessions produce food for thought and not firm actionitems.

Occupy Advancement

2011-12-12T11:28:00.000-08:00

These are wildand wooly times we are living in right now. The polarization of wealth over the past 40 years has become apparent tothe masses, who are expressing extreme discontent clear across the country fromNew England to Hawaii. Political pressure is mounting to address this growinginequality.

This economicand financial situation presents an unusual balancing act for advancementprofessionals. As fundraisers, we mustunderstand, bridge, and navigate the 1% and 99% divide. Our contributors clearly occupy both distinctbuckets, yet support and advocate for our organizations in important, albeit different,ways.

One way to viewthis ongoing multidimensional debate is through the lens of discretionaryincome. After all, much of the thirdsector and our work as advancement professionals - at the core - depends uponthe financial generosity of individuals and businesses. And in many respects,the size of gifts ties to salary or income statements.

As thepolarization of wealth magnifies, so does the distribution of discretionary funds. Thisin turn limits - or in a few cases accelerates - philanthropic abilities, impulses,and desires. As fundraisingprofessionals, we must be conscious of this evolving environment, and regularlymake adjustments to the way we attract, keep, and grow the support of ourcontributors. And yes, this often meansthat we must work smarter and harder… often with fewer resources to do so.

For many NPOs,we are now in a time when net operating margins - when they exists - are often matched orexceed by philanthropic income. This isincreasingly occurring in healthcare and human service organizations. We needto continue the good fight, find comfort and inspiration from our peers, and continuouslylearn when and what we can in order to up our game.

It is incumbentupon us to be continually educated about the levers of our economy, challengesfaced by the different economic circumstances of our 1% and 99% donors, and effectivestrategies that may be working for others. So when you are inevitably asked to trim your budget, try your best toprotect professional development funds and to occupy some of your time toresearch and reading.

Your takes:

Be sure to tune in to macro-economic trends and understand them in regard to national, local, and philanthropic implications.

Continually revisit your program and constituent strategies to keep them aligned with trends and expectations.

Protect your professional development funds to you can benefit from the wisdom of others.

Focus…Your Greatest Tool For Success

2011-11-28T07:57:00.001-08:00

Collectingyour thoughts and focusing on the job at hand are essential when preparing to composea blog post or any thoughtful or meaningful message. Without focus - the ability to draw a circlearound a “to-do” and concentrate like a laser beam on it - the task is notaccomplished, or the results are sub-par.

Focusand successful advancement programs also go hand in hand. Here’s why. The most productive development shops of any size find a way to focustheir programs on accomplishing key, organizationally recognized objectives. They assign staff, volunteers, and resources toeach element of the advancement effort - scaled to the importance and revenuegenerating potential of each outreach. Annual giving, events, institutional giving,major gifts, campaigns, prospect relations, and donor stewardship each require distinct“blinders” to maintain the initiative’s forward progress and sense ofurgency.

CopleyRaff’s mission statement is to bringfocus, accountability, creativity, and success to philanthropy programs. Sustained success is a product of theseattributes, and they begin with focus.

Considerthis. Maggie Jackson, author of Distracted: The Erosion of Attention and the ComingDark Age, suggests that western society is at risk of devolution in large part dueto the explosion of multi-media and technological distractions that now befallour lives. It’simpossible to get anything done if we are constantly and obtrusively forced to redirectour attention, focus, and best thinking.

Advancement shops are a microcosm of this issue. Imagine a major gifts program where giftofficers are asked to review direct mail fundraising appeals, organizefundraising events, identify sponsors, and coordinate schedules of multipleplayers to set up key donor meetings. Gift officers have at best 30 – 40% dedicated “focus” time to raise majorgifts. At the same time, many have aportfolio of 150 prospects - or more. What’s wrong with this picture?

Focus gives advancement officers permission to say “no” to distractions,without feeling badly about it. Here’s away to make that happen. Post your keydevelopment objectives - as agreed upon by leadership - in a prominent andhighly visible location in your organization. Print them out in bullet form and in a large, easy to read font. Keep acopy of the objectives in your portfolio or notebook, and bring the list withyou to every meeting you have with leadership so you can refer to it whenpotential distractions arise. Reviewthem when faced with questionable situations in regards to accomplishing your organization’sfundraising goals. And when you areasked to stray from your focused and agreed upon course of action, be sure toraise how the distraction will diminish your ability to accomplish your core responsibilities. After all, there are only so many hours in aday.

Here’s the “not so secret” secret. It is impossible to be all things to all people, including your boss,volunteers, and donors. Given you are focusingupon agreed upon development objectives and organizational priorities, you willbe respected for your rigorous defense of your responsibilities and that awarenessto purpose will likely be transferred to others, including your supervisors andleadership.

Future posts will address ways to maintain work focus, build inaccountability and management measures that are complementary to your focus,and infuse creativity into your work that will help you to achieve success.

Oh, and thank you for making it to the end of this discussion!

Your takes:

Work from clearly articulated objectives containing time lines andmeasurable outcomes.
Have your objectives available at all times to assist you and others tomake informed decisions about the cost and benefits of potential distractions.
Powerful management tools and the opportunity for great creativity bothstem from focus.

What Comes Around Goes Around

2011-11-14T09:03:00.001-08:00

Funding for your organization can – and should - come from many sources. As advancement officers, it is incumbent upon us to be aware of traditional as well as newer forms of financial support. One relatively low profile, yet extremely impactful source of funds can come from local, regional, or national “giving circles.” For those not familiar with the concept, these are groups of individuals with common interests (social justice, the environment, arts, community well being, etc.) that pool their gifts, review funding options, make site visits (if possible), and award multiple grants on a scale much larger than most individuals could make on their own. When done well, the process is focused, inclusive, and educational.

If you are not already exploring finding and approaching giving circles that dovetail with your organization’s mission, you should consider immediately adding this to your to-do list. Here are a few reasons why.

1. Real dollars

Depending on the scale of the giving circle, grants can run in the four and five figure range. In addition to my consultant work here at Copley Raff, I am also involved with a regional giving circle that funds the well being of women and girls in Boston and Israel. Every year, we award and distribute about 20 grants ranging in size from $5,000 to $25,000+.

2. Accessibility

Giving circles, including the one I am involved with, are constantly looking for new organizations as potential places for their investment. It is not uncommon for giving circles to have funding limits of one to three years, so they must keep their pipelines full. Many of the people involved in community giving circles are not professional philanthropists. They are folks who love the circle’s mission and have joined in part to learn more about what’s out there, and to make a difference in an area of high priority to them. Given your organization conforms to their annual granting cycle, most welcome a personal introduction or a letter of inquiry.

3. Potential

Giving circles are a great place to find your next board member, local advocate or liaison, or talented volunteer. After all, these members already have exhibited a passion for your mission, understand the importance of philanthropy, are community focused, and work well in groups. Many of the women in my giving circle have gone on to join the boards and leadership of organizations we have funded.

Like with all funders, stewardship of giving circle funders is extremely important. Most giving circle decisions are made through hands on, member driven discussions. And everyone has different reasons for their preferences – some are driven by the numbers, others by the passion behind the mission. As a result, it is important to address both with your stewardship strategy. I have found that one overlooked but great way of doing this is by offering to give a presentation at the giving circle’s opening or closing event. This provides content for the event’s program (which is usually very much appreciated, trust me on this) and also keeps your organization top of mind as a good funding partner.

Another easy way to steward a giving circle is to invite their members to your organization for a mid-day “lunch and learn.” Programming can be relatively simple: deli sandwiches; a hearty thank you from your ED, President, or board chair; and a few “stories from the field” from the individuals personally benefiting from the giving circle’s gift.

I just attended an event in this format at an organization that provides low income senior housing. As a mission driven giver, I was most moved by hearing directly from the grantee’s director of facilities describing how the training he received as a result of our grant enabled him to identify seniors with severe mental health issues. In turn, he is now able to help those individuals prevent eviction that might result from their deteriorating decision making skills. Other giving circle members were touched by a report given by the CEO focusing on the number of people served, dollars saved, and community impact. Due to the quality and balanced nature of the presentations, the respectful mix of organizational representation, and interpersonal connections, all members of the giving circle left the meeting feeling wonderful about their grant decision.

And it’s no secret that everyone wants to fund – and continue to fund – a winner.

Your takes:

Explore giving circles as a new way to provide funding as well as highly motivated volunteers for your organization.
Many giving circles insist on a site visit as part of their decision making process. This is your opportunity to shine, so include the right people from your origination and have an agreed upon agenda. Do not “wing it.”
Stewardship is crucial when working with giving circles; provide opportunities for group interaction, storytelling, and top level acknowledgement.

Leadership... Be Careful

2011-11-02T07:06:00.000-07:00

Leadership is the essential ingredient to successful fundraising and advancement, and must come from both staff and volunteers. Much has been documented and validated about the qualities and character traits of great leaders as well as the fabric of leadership. Far less has been written about the art and science concerning the process of choosing the right leader to raise needed funds and lead your organization.

The impact and effect of new board leadership on a nonprofit organization (NPO) is often immediate. It can have a significant influence and typically sets the bar and pace for other board members to emulate in terms of commitment, gift size, and degree of engagement. Other organizational leaders, including board committee chairs, campaign chair people, executive leadership and advancement leadership, are also important but do not have same potential for lighting a fire under board members as does the board chairperson.

As a result, it is critical that great care and consideration are taken with your organization’s leadership continuity planning. This includes choosing a board chair as well as constructing a succession and nominating strategy through your nominating or governance committee. When considering new leadership, there are many important variables to consider and prioritize. These may include the nominee’s professional expertise, communication skills, financial resources, rolodex, time availability and, yes, leadership qualities. However, here is something to consider: I would argue that the most important characteristics for success would have to be the nominee’s enthusiasm and dedication to the mission of the NPO.

Consider this true story. One of Copley Raff’s former clients is a prominent cultural organization with both earned revenue and community benefit programming. A relatively new trustee quickly ascended to the chair of the board as a result of the urging of the organization’s executive director. This new chair had special skills in negotiating big deals and also happened to be quite wealthy. Professionally, she was at the top of the financial services food chain.

The executive director’s strategy was successful and the new chair was helpful in landing a significant business relationship for the NPO. At the same time, Copley Raff was preparing for the launch of the organization’s largest campaign to date. Through the course of our interviews, it became clear that key constituents were awaiting news on the chair’s gift to the campaign to help set the bar and truly ignite the effort. Clearly, her gift would set the pace for the others and carried tremendous importance.

As a result of our conversations with the chair, it became crystal clear that she had great enthusiasm for the deal making aspect of the NPO, but had minimal passion for the organization’s mission related programs. After many weeks of avoiding the issue, the executive director was finally able to have a substantive conversation with the chair about her anticipated campaign gift.

And the results? Disappointing at best. Although she had capacity, organizational authority, and a challenge from another board member offering to match her gift up to $5 million, the chair committed to only $500,000 – 10% of what was hoped for. She explained that she and her family were “tapped out” from other recent gifts that would result in the naming of buildings on the campuses of two prominent universities.

So how did this all play out? Because of the significantly less than expected chair gift and challenge match totals, the overall goal of the campaign had to be lowered. As a result, the scope of services offered to the community - as defined by the NPO’s mission and funded by philanthropy - were greatly reduced. While these are hard pills to swallow, the board and executive director now have a much greater appreciation for the importance of succession planning and leadership vetting.

Every player in this scenario holds some responsibility for the less than optimum outcome of this campaign launch.

Mistake #1: Although the chair and the executive director had been working together for two years and both knew a campaign was on the horizon, the executive director was caught off guard that the chair had other significant giving priorities.

Mistake #2: The chair made a conscience decision that essentially assigned a value to the mission of her two alma maters and the cultural organization, which were publicly reflected in her giving. As a result of her lack of enthusiasm for the cause, the entire success of the organization’s fundraising suffered.

Mistake #3: Did the chairperson need to be elevated to that position in order to capture her help and expertise in making the needed deals? Probably not. In retrospect, this seems very short sighted and a misalignment of skills, needs, and timing.

Mistake #4: It is clear that the governance committee failed to examine the chair’s enthusiasm and dedication to the NPO’s mission and was not properly vetted. By missing these two considerations the campaign clearly suffered as a result.

Your takes:

Do not assign gift expectations based solely on the donor’s wealth and relationship to the organization.
Executive directors need to have strong rapport with board leaders so a comprehensive, trusting, and authentic relationship can be attained.
Be aware that wealthy donors often have many causes and as a result, timing plays a big role in philanthropy outcomes. Ask open ended questions to gauge competing interests, campaigns, and priorities.

Warming Up to a Cold Call

2011-10-17T06:32:00.000-07:00

Cold calls. Even the moniker of these usually dreaded method of outreach is, well, cold. But the best gifts, and relationships, always emerge from conversations, and they’ve got to start somewhere. I was recently asked address a meeting of chief advancement officers representing specialty post-graduate colleges. When asked what they would most like to learn about, the group came to a quick and universal consensus: how to make cold calling easier.

Here’s one hard, cold fact to consider: an advancement officer should never be in a position to make a “cold” call. There should always be a pretext for the call. For example, call...

1. To thank someone for their recent gift and to learn what motivated them to give so generously.

“Ms. Smith, I am just calling to thank you for your contribution which is especially meaningful in this tough economy. May I ask why you decided to give to us instead of other organizations this year?”

2. To follow up on the recommendation of a mutual colleague who thought they would be interested in learning about created newly created program or service.

“John, our board member Betsy Adler mentioned that you are very interested in after school mentoring programs for teen-aged girls, and we are just launching a brand new one here. “

3. To try and schedule a time to meet a loyal, longtime donor and hear why they have been so faithful to the origination.

“Ben, you have been a friend to this organization for five years, and we’ve never even met. I’d love to thank you in person and learn more about you; can we meet for coffee soon?”

4. To engage new prospects for high visibility committees, such as events and galas.

“Tracey, I am contacting you at the suggestion of Mary Wallingford, who is chairing our gala committee. She is hoping you would entertain the possibility of joining the committee, or even becoming a sponsor of the event. May I send you some materials?”

5. To ask for business help and advice.

"Steve, your name came up at a recent committee meeting as having great success in the field of insurance, and I need some professional advice in that area for our organization. Do you have a moment to talk?”

6. To request an introduction or insight into a person of interest for the organization.

“Carol, I am giving you a call in the hopes that you know Pete Lowery well enough to be able to shed some light on his recent involvement on the board of the United Way.”

Even these sorts of calls can be challenging. But, if in your mind you can define a real reason for the call, you have a fighting chance of making it a productive one. It then becomes the foundation for a continued conversation - and relationship.

Of course, it goes without saying if you start the conversation with something like… “I’m calling because you are wealthy and I hope to get you interested in our organization...” you may as well do some filing because it will be more productive.

It is the responsibility - for better or worse - of an advancement officer to find just the right hook, pick up the phone, and make these sorts of calls. But before you do that, here are two simple and effective behaviors that will make initiating the call, and the ensuing conversation, much more comfortable.

First hallucinate. Yes, you heard me right. If you think about it, all those worries you have about how the call can fail are nothing but hallucinations. Nothing has happened yet and you are already thinking about the potential negative outcomes. It is pure fabrication, and in reality, worry is just a misuse of your imagination. Instead, hallucinate something positive. Hallucinate three positive ways the call can go well.

Second, smile for 30 seconds. The act of smiling actually releases neurotransmitters that sharpen your thinking, give you a more positive attitude, and provide renewed energy to your voice. It’s absolutely true that people can “hear” you smiling over the phone and hear the warmth in your voice. And that’s certainly the opposite of a cold call.

Your takes:

1. Have a reason for making a call.

2. Think of positive outcomes.

3. Smile before and during - and hopefully after - the call.

Destined For Mastery

2011-10-03T10:30:00.000-07:00

Master Gift Officer. Just the words alone conjure up confidence, optimism, energy, and success. And the phrase embodies what we all strive for: demonstrating the highest level of ability, talent, and dedication within the development profession. Today, the job title isn’t on the tip of the tongue of most nonprofit fundraising professionals or organizations, and hasn’t been spotted on a resume - yet. But that should change soon.

Copley Raff, Inc.’s annual PLAN-MGO (Philanthropy Leadership Advancement Nexus - Master Gift Officer) training program is a four day immersion experience that rapidly equips development professionals to revolutionize their donor relationships, conduct comfortable and effective asks, and ensure dramatic fundraising success. In essence, attendees walk into the program as fundraisers and walk out as Master Gift Officers or MGOs. 2011’s event launches October 29th and runs through November 1st.

This year, CRI offered the first ever PLAN-MGO Fellowship, awarded to an applicant who’s application essay best reflected MGO potential. We received many outstanding entries, but this particular one deeply resonated with the judging panel.

Announcing the first annual winner of PLAN-MGO’s Fellowship: Leisha LeCouvie, Director, Parent and Affinity Programs at McGill University, Montreal. Leisha writes:

“I have had the honour of working at McGill University for 10 years. During this time I have worn many hats and have had many opportunities. Originally hired as a manager to oversee the alumni association’s affinity programs (credit cards, insurance and travel programs), my portfolio has now grown to include board and volunteer relations, student engagement initiatives, and more recently, the development of a comprehensive and robust parents program.

My newest opportunity, and challenge, is spearheading the fundraising aspect of the Parents Program. As a life-long alumni relations professional this is a natural, albeit terrifying, career progression. After 20 years in the business, I am an expert in connecting and engaging people. If you need to plan a party or a presidential installation, I am the one to call. But asking people for money? Now that’s hard work.

I could have turned down this promotion and continued connecting and engaging. Alumni Relations is exciting and meaningful, and a profession that I believe in and support. I also believe in and support stretching oneself both professionally and personally. Major gift fundraising is the professional equivalent of zip lining for me: something I never thought I would be able to accomplish, but exhilarating and thrilling. The first step off the platform though, is always the hardest.

The PLAN-MGO Fellowship would be the greatest gift for me toward that first step. McGill is the finest university in Canada and ranks amongst the top universities worldwide. We are part way through a $750 million dollar comprehensive campaign and I feel strongly that I want to help the institution reach its goal. At this point in my career I feel it is my duty to take parents and alumni through the entire identification, engagement, cultivation, and solicitation cycle. Considering my background, I think I am uniquely qualified to do this. The only thing holding me back from completing the cycle is the gift officer training. I am seasoned enough to know how to research donors and ask for money, but I want to know how to do it well. I want to be the best. McGill has given me so many exciting opportunities and challenges, now it is time for me to return the favour by being the best fundraiser I can be.”

And just what traits make a fundraising professional a Master Gift Officer - or indicate that someone has the potential to reach this highest level of professional achievement? Our colleague and PLAN-MGO instructor Diane Blumenson has identified 16 key characteristics and suggests that true Master Gift Officers demonstrate at least ten of them. The full list can be found here. Leisha’s letter clearly demonstrates most of these key points, plus the passion to both learn and internalize the art of the ask. This experience seems to be the one piece missing from her MGO portfolio, but not for long. Congratulations Leisha!

Your takes:

True MGOs see the upside in all opportunities - anticipated or not.
The ability to acknowledge job related fear and ask for help are clear signs of strength and the ability to grow professionally.
Passion is contagious. Share some of yours today!

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

The "Who's Asking?" Paradox

2011-09-19T08:05:00.000-07:00

Philanthropy - especially very successful philanthropy - always requires just the right “personal touch.” But what happens when relationships appear to close doors instead of opening them? Here’s what I mean. We’ve heard it from volunteers, and even from other advancement professionals: ”I’m too friendly with her to ask her for a contribution.” It seems that many people feel uncomfortable asking a friend for a gift.

The paradox here is obvious. As development professionals, we try to leverage pre-existing relationships between others to set the stage for an optimal gift ask and close. Typically, the stronger the relationship, the tighter the connection between the “asker” and the prospect, the greater the chance for a successful outcome. And yet, volunteers are very hesitant to have these conversations with their friends and colleagues.

So what is an advancement officer to do? I have brought up this paradox to leadership volunteers during many board trainings I have conducted. The exercise goes like this. Volunteers are asked to rate their feelings in different fundraising situations using an entertaining scale of emotion icons. They are first questioned about their comfort in asking for a gift. Inevitably, most volunteers feel more comfortable asking a relative stranger for a gift than someone they know. Then volunteers are asked to rate their feelings about being asked for a gift themselves. Most rate the greatest comfort in being asked by a close friend.

Go figure. You can imagine the tone in the room when this revelation is revealed. There is laughter and a few wows.

So how do we resolve this paradox to the benefit of our advancement work?

The path to success is often revealed once the 800 pound gorilla in the room is disarmed. Encourage your volunteers to express their discomfort with the situation. It is the sincerest of gestures to admit a weakness or discomfort to someone else. Most people feel a huge sense of relief once this is expressed and out on the table. The conversation could start out like this….

“Deborah, I have to admit I had my reservations about meeting with you today to discuss the possibility of you making a gift to my favorite organization. But out of respect for our friendship, which is so important to me, I wanted to ensure the discussion is done in the most respectful and sincere way. So despite my discomfort, I want to share with you why this mission is important to me and I think to you as well…”

This exercise can easily be practiced at your NPO’s next board meeting or training session. Simply pair off your volunteers. Have each person express to the other why they feel as they do about asking a friend for a gift, and hold nothing back. And, 99.9% of the time, participants will experience the old adage “fear is the misuse of your imagination.”

P.S. This works for development professionals as well.

Your takes:

Volunteers want to help but often need to be shown the way.
Help volunteers confront their insecurities by identifying and experiencing them in a safe and comfortable environment.
Role playing is a powerful tool for moving beyond obstacles.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Economic Uncertainty or Deflection

2011-09-06T08:01:00.000-07:00

The United States, arguably, is in its fourth year of the "great recession." Fallout from the country’s debilitating economic environment has created grueling financial, professional, and personal hardships for millions of people. A complicating factor bottlenecking recovery includes the shroud of “uncertainty” that continues to be cited as an obstacle to renewed hiring by the private sector. Many non-profit organizations (NPOs) also cite uncertainty when considering launching new fund raising campaigns and initiatives.

Uncertainty. Just the word itself is a nonstarter. The notion of uncertainty is no longer relevant to forward progress in any organization. We have all lived through three-plus years of these trying times. What has become all too evident - in the headlines and unemployment lines - is that the economy will remain sluggish for the foreseeable future, political dementia and hypocrisy will continue to impede solutions, and the polarization between wealth and struggle will continue to increase. Of these things we can be certain.

The time is now to begin planning using a horizon longer than twelve months. Based on lessons learned over the past few years, we can all be better predictors of economic worst case scenarios for our organizations. We should also have a strong level of certainty about the state of our donors based on past and current giving levels. If you interview your more valued donors - as we do for our advancement program and campaign planning studies - you will most likely find that they are far less concerned and paralyzed by the recession than you and your organization’s leadership. For most major donors, charitable giving has not declined in the past two years and their ability to make a significant campaign gift remains viable.

So how can you work with “uncertainty” to make decisions that are certain to benefit your organization? As addressed in past posts, advancement officers need to make decisions based on the data and not personal biases or the biases of board members who may not be among your most important donors. Reading between the lines, boards today frequently make decisions which validate inaction, citing “economic uncertainty.” This in fact is a convenient deflection to personally avoid a campaign solicitation. It may in fact not be the right time for them, but the financial well being of your NPO and those its serves must be the primary concern.

Admittedly, this is a steep hill to climb. But, if you are confident in the loyalty and capacity of your donors, and your NPO has a campaign or initiative on its radar, avoid the specter of board deflection and get the data. Commission a study and take the temperature of your donors. There are many NPOs that have raised millions of dollars toward realistic goals between 2008 and 2011…and of that I am certain.

Your takes:

Evaluate today’s “certain-uncertain” economic conditions anew and with fresh perspective in planning the long range fundraising strategy for your NPO.
Do not fall victim to your personal biases or those of your board members and senior management as an excuse for inaction.
Get the facts from your donors and take the guesswork out of your planning.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Desperation or a Good Idea?

2011-08-22T10:14:00.000-07:00

Just what catalyzes your prospects and donors to give? What channels grab their attention, heartstrings, and in turn, their checkbooks? Every few years, a hot new fundraising concept seems to emerge - one that “promises” to breathe new life into your advancement efforts. The past two decades have provided us with fundraising “salvations” including…

These traditional and newer techniques all have appropriate places in the advancement office tool box. Some may take a generation to mature (1); others may never warrant the staff investment from a dollars and sense perspective (2) but/and contribute to all important mission messaging and ”friend raising” (3); while another subset may be peaking and could be on the decline (4).

2011’s contribution to this list is “social impact bonds”, which are also known as “pay for success.” Especially relevant for human service provider organizations, these are percolating in Massachusetts and at the federal level. They are based on the concept that if programs backed by investors succeed in reducing or eliminating the need for costly services and interventions, governments will realize big savings. In turn, investors are rewarded with healthy returns from Uncle Sam or state government. On the other side of the coin, if the programs fail or do not deliver to performance standards, no returns would change hands. In this case, investors would become donors.

It is not a coincidence that “social impact bonds” have emerged as a development tool during this extended period of harsh fiscal realities and increased demand for effective government and accountability.

And just what would make an ideal situation for “pay for success?” For example, take Roca Inc., a Chelsea, Massachusetts nonprofit who, in their own words, “alter the life trajectories of some of society's most high-risk young people.” Roca has proposed an intervention program to provide direct services to about 650 young offenders with a price tag of $11 million over four years. But take a look at these projections…. Roca estimates the program would save $25 million to $38 million in prison costs during that span by reducing the incarceration rate. That’s a return on investment even the most conservative investor - or donor - can appreciate.

Is this a new version of venture philanthropy, or perhaps “investment philanthropy?” The concept certainly merits further exploration for many nonprofit sectors, especially those that touch at risk and underrepresented populations. It does, however, raise the specter for two significant paradigm shifts that touch the entire NPO universe.

Shift 1: Increased Demand for Measurement Outcomes. The role of metrics and accountability will increase as both investors/donors and government have “skin in the game.” A new challenge, as well as a priority for NPOs will include long term tracking of constituents, many of whom are traditionally the hardest people to follow over time. Performance-based investment philanthropy may spawn new approaches and longer evaluation windows for outcome measuring.

Shift 2: “Nonprofit” to “For Profit” Communications and Mentality. NPO advancement officers and management will need to demonstrate how they will achieve performance outcomes to the satisfaction of business investors - in a language which bridges both worlds and perspectives. This will force nonprofits to bring their program, organization, and financial planning to the next level in order to attract and retain the interest of “business” investor/donors. This “upgrade” will have the ripple effect in helping the organization to achieve other objectives…including old fashioned fund raising.

Your takes:

1. Be on the constant lookout for new ideas and funding sources for your advancement program, but be sure to do a thorough evaluation before adopting any new tools into arsenal.

2. Measurement, measurement, measurement. Integrate metrics into everything you do as the pressure to provide performance evaluation metrics for donors, board and government will only continue to grow.

3. Treat your donors as investors and be prepared to provide them the level of scrutiny they expect - and deserve.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Either... Or

2011-08-08T09:39:00.000-07:00

There are few greater challenges in the profession than serving as the chief advancement officer (CAO) of a small to midsized shop. Your boss and board have high expectation for your department and yet have little appreciation or understanding of the true dimensions, complexities, and public exposure risks (think gala) of running a high performance advancement operation. Almost all of your decisions carry long-term consequences because smaller shops have very thin margins for error and far less “wiggle room” than larger shops. There simply isn’t anyone to lend a helping hand especially if a program or initiative is underperforming or slides off the rails.

Whether your focus is healthcare, the arts, education, human services, social justice, or other most worthy cause, there are three core decision points that no CAO in a smaller shop should have to solve on their own. These include prioritizing donors, efforts, and staff. I have personally faced these issues in the past and watch my clients of all sizes wrestle with them as well. Let’s take a look at each in order to provide some context, guidance, and support for your choices.

Issue #1: Donors

Should your priority be attracting hundreds of small and mid-range donors OR keeping your three or four largest donors - who have been carrying most of your advancement goal for years - engaged with your organization?

Here’s the challenge. You know in your gut that the long term success of your advancement program will depend on a broad and deep donor base, and the methodical process of building it is critically important to do. At the same time, your top donors are committed, cherished, and valuable for today’s success. And there are only so many hours in the day.

Fortunately, here you can have it both ways! To paraphrase a famous Beatles song, “You can get by with a little help from your friends.” Share your relationships with your top donors with others in your organization. “Buddy” them up with an appropriate senior administrator, a dean, a trustee, or a program manager of a beloved program. It is not essential that they are part of advancement; what is important is that they have a passion for the organization and can communicate that with key donors. Try and reduce the time and energy commitment of you or your gift officers by sharing relationships with trusted colleagues. Your job is to coach relationship “buddies”, provide bridge opportunities, and encourage the growth of their relationship with longstanding and generous advocates. You and your team will then have more time to identify and steward other donors along to the top of the heap.

Issue #2: Efforts

Should you as the CAO do frontline fund raising (or have a very small portfolio) OR should you be a strong external fund raiser with a significant portfolio, at the expense of a “hands off” approach to managing the shop?

The bottom line here is management trumps structure. The most well established advancement office structure will fail or underperform if poorly managed.

I am a big believer in the value of good management, and three decades in this industry reviewing countless development operations - the good, the bad, and the ugly - have proven this over and over again. It is frustrating to watch clients and other shops go through all sorts of system design changes, reorganizations, and job swapping, all in the quest to find the formula for success… while all the while, the problem is with management.

So what’s the ideal balance here? In a perfect world, the most effective CAOs need to be strong managers first, then manage the gifts team (staff and volunteers) to success within the prevailing system, and carry a small portfolio of the highest value or most promising donors.

Issue #3: Staff

Should you as the CAO hire a gift officer who has great innate talent and has been very successful in other organizations… but is poor at documenting moves and details OR should you recruit a mid-strength, solid gift officer who documents well and will confidently close many unremarkable gifts?

Here it is important to look at this choice through short, medium, and long term lenses. The first staffing option (the lone wolf model) may reward with larger gifts in the short run, but puts your organization at risk in the medium and long run if this person has a short tenure. The second option (the team player model) is associated with standard rewards and lower risks at every point.

Gift officers can leave two legacies to their organization - the tangible and intangible. As for tangible I mean the new building, scholarship program, capital improvements, etc. that were made possible by the dollars raised by the officer and their relationships. By intangible, I mean the actionable and well documented database, which should be a treasure-trove of information about the interests, personalities, family dynamics, communication styles, hot buttons, aspirations, and personal and philanthropic missions of your donors and prospects.

While the mid-strength gift officer may or may not ever close a remarkable gift, their well documented portfolio probably contains prospects with great potential. A good advancement manager will recognize this and “turf” these individuals to a broader relationship circle so the prospect’s promise can be realized.

With the unfortunate amount of turnover in advancement offices, a solid record on your donors is much more valuable if the major gifts program is managed properly.

Your takes:

1. Sharing best donor relationships with your top internal organizational advocates pays dividends in added productivity and donor engagement.

2. Management trumps organizational system and structure.

3. Leave your legacy in funds raised and stories documented.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Money Mishegas

2011-07-25T12:09:00.000-07:00

There is a colorful Yiddish word, “mishegas” which affectionately refers to one’s “craziness” about something. Most of us have strong feelings when it comes to money; for some of us, those passions are what brought us to this profession. The spectrum of personal “money mishegas” extremes runs from spendthrifts to overindulgence, and everything in between. Most of these attitudes are adopted during our formative years, much like how we remember and idealize our hometown sports team roster from our youth even as adults. Fast forward to today - it is critical to remember that the lens that you use to view money may not at all dovetail with that of the donor across the table from you.

For me, while I grew up in a family of modest means, I did have exposure to transactions involving large quantities of cash. My father was a jeweler in Chicago, and I used to hear at the dinner table his stories of the large purchases of the day. I would also occasionally go to the airport with him to “meet a guy” who would get off a plane to exchange a brief case full of cash for a brief case containing jewelry (before the days when this sort of thing was against the law). There is nothing like holding a brief case full of Benjamins to affect your perspective about money.

We cannot help but bring our own personal “money mishegas” to our jobs, but we cannot let these biases affect how we interact with donors, formulate ask strategies, and ask for a gift. For you personally, a magnificent gift might be a $10,000 check you write to a beloved NPO, but for your leadership donors, that figure may be $1 million or more. While it is human nature to factor in your visceral response to day-to-day and business interactions, it is important for advancement professionals and volunteers to resist these limiting knee-jerk responses. Just think about how much money you could be leaving on the table because of your asking comfort level.

Our biases can and often do interfere with our fundraising successes, and not just when it comes to face to face interactions. Consider this: time and time again, when training large groups of professionals and volunteers, I ask trainees to raise their hand if they like getting direct mail appeals. Surprise, or not… no one has ever raised their hand. And yet, direct mail campaigns, essential and effective components of most NPO’s fundraising activities, are often frowned upon by staff and volunteers…because they don’t like them. Again, think of all the gifts unrealized – resultant from this not so transparent bias.

Advancement professionals and volunteers need to focus their fundraising energies on the donor’s interests; emotions surrounding the organization, programs, and mission; and on capacity research that will help to quantify a realistic and respectful ask. The time is now to understand and “pay off” your own personal “money mishegas” liabilities… that’s solid fundraising advice you can take to the bank.

Your takes:

Understand your own personal “money mishegas” and consider ways it may be a limiting factor in your fundraising success.
Work with volunteers to help them understand their attitudes about money so you can work with them most effectively.
Formulate your solicitation strategies objectively so you are at ease discussing large gifts with donors.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Hiding In Plain Sight

2011-07-11T06:37:00.000-07:00

Opportunity is everywhere, and not just strictly in the form of donors and dollars. Sometimes it wears a mask, and it hides in plain sight. But most development professionals have the innate skills to find it, learn from it, and use it to help with future challenges. Here are two examples of what I mean.

1. Fill in the gaps.

I recently had the pleasure of attending my region’s Association of Fundraising Professionals (AFP) “meet the funders” breakfast. At this event, which Copley Raff helps to sponsor, advancement officers have the opportunity to meet with foundation and corporate funders in a networking setting and speak face to face.

So where’s the opportunity here?

Believe it or not, it is not finding fast and easy money, nor is it collecting basic information which is all well documented on the funder’s websites. The real score here is the chance to ask key funders about less obvious matters that could bear fruit in the long run. Questions like:

What is an example of a risky grant the foundation has made and what made it riskier than others?
How much influence does staff have in the grant committee outcome?
Of those full proposals invited from a letter of inquiry, what percentage is typically approved?

Of course, it is also well advised to develop rapport with the program officer as well in situations like this. A simple question like “where did you work before this current position?” can reveal much about their interests and priorities, as well as form the kernel of a relationship that may be called upon in the future.

2. Learn from all sides.

As the President of the Friday Forum, an organization dedicated to offering thought leadership presentations to senior development officers, I am involved with selecting the speakers for our quarterly meetings. Our largest turnouts occur when funders are featured or are part of a panel. In contrast, our seats are only half full when we have thought leaders in ancillary professions that affect the philanthropic landscape and donor attitudes.

Where’s the opportunity here?

As it takes a village to raise a child, it takes the ability to have a circumspect perspective of the philanthropic world to be solid fundraiser. Every person that you meet provides the opportunity for learning. Consider each interaction or story exchanged another piece of hardware in your informational and experiential toolbox. You never know when you may need a hammer or file to close your next gift! Clearly, the best advancement professionals are those with a broad scope of interests, intellectually curious, and able to connect disparate dots to make for enjoyable and memorable encounters with donors and others.

Your takes:

When you have a rare chance to chat with a funder, use the opportunity to uncover strategic and helpful information that is not usually available on their website.
Plant the seeds of a future relationship with a program officer by asking about their professional history, interests, and roles in their organization.
Keep abreast of surrounding issues that can affect the philanthropy landscape: for example, learning about trends in social impact philanthropy, what makes different types of philanthropist give, and the happenings on Capitol Hill will pay far more dividends than the off chance of having a meaningful encounter with a foundation officer at an event.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

The Power of Pessimism

2011-06-27T07:48:00.000-07:00

Henry Ford is famous for saying, “Whether you think you can, or think you can’t, you are right.” Yes, attitude makes all the difference in the world. As development professionals, we are often the public face of the organizations we serve. As a result, it is especially important that we project optimism and hope – you never know who’s watching or how they could interpret our nuances. Keeping that reality in mind, consider the following scenario…

You are responsible for fundraising for a nonprofit and are in a development committee meeting with volunteers. You’re discussing an upcoming event or are planning for a major gifts initiative. An influential volunteer brings up the still-recovering economy, and suggests that the organization set diminished fundraising goals, perhaps even equivalent to last year’s accomplishments. Sound familiar?

So what do you do? Agree with them? Wait to see how another volunteer responds? Or jump in and try and turn the conversation around to a more positive scenario? Your response is critical, and could greatly impact the financial health of your NPO in the short, medium and long run. Let me show you why.

Back in the spring of 2009, I interviewed a very wealthy couple for a feasibility study. You may recall - unless you were hibernating through that difficult year - the faltering economy and uncertain future made that one of the most challenging periods for fundraisers in recent memory. The couple and I started discussing the financial climate and how it might impact the campaign under consideration. The man and woman, who were board members of several other area NPOs, mentioned that the development staff at one of their other organizations were openly singing the blues about the economy. On the other hand, the couple mentioned that their peers – who were also very philanthropically focused - were not nearly as pessimistic about the future and that their giving would not diminish despite the newspaper headlines. They wanted me to know that nonprofits “were not doing themselves any favors” by expressing their pessimism. What an eye opener… and a perfect example of the importance of having, and projecting, a positive attitude with all your constituents.

Fast forward one year. As fate would have it, Copley Raff was hired for some development counsel by the “pessimistic” NPO mentioned by the affluent couple. In a heartbeat it became clear that the couple was absolutely right: the attitude of the development staff was negative. This self-fulfilling behavior was having a measurably negative impact on its fundraising volunteers, campaign progress, and overall results. It was a challenging climb to turn this organization’s culture toward more positive thinking - but one essential for its long term viability on many levels.

Your takes:

Pessimism is contagious and easily recognized by all your constituents; stop it before it infects others.
As a leader, you are responsible for setting the tone and culture of your organization; do not tolerate negative and pessimistic behavior from your staff.
It is your responsibility to address pessimism in other staff and volunteer leaders and to keep it out of the public eye (and ear!)

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Master Gift Officer… Shifting a Paradigm

2011-06-13T08:29:00.000-07:00

Mark Twain, a true master of the written word, observed “The difference between the right word and the almost right word is the difference between lightning and the lightning bug.” Yes, language is very important. And like most professionals, those of us in fundraising can get stuck in the inertia of our own dated vernacular. How many of you are doing your job the same way you were 10, 5, or even 2 years ago? Times change, our profession evolves, and so should our reference terms and their definitions.

Fundraising, development, advancement… suspects, prospects, donors… engagement, cultivation, stewardship… annual giving officer, major gifts officer, principal gifts officer – certainly the ABCs of the core of what we do as philanthropy professionals. But what these words all really mean, and how do they contribute to personal as well as organizational success today?

It used to be a lot simpler. Maybe a decade or two ago, there was usually a clear distinction between annual fund and major gift donors. Gift officers had their assigned ask ranges. If a prospective gift rose above these “gift officer” parameters, the prospect and their opportunity were transferred to the stewardship of a “major gift officer.”

Those days have gone the way of the index cards and many choices of donor databases. Today what matters in the fundraising world are skills and relationships, not titles or boundaries. Gift range responsibilities should be irrelevant, and job titles “flexible”, when it comes to optimizing opportunities. For example, who should lead or participate on the team assigned to a wealthy donor with capacity for a six-figure campaign gift? Careful – that’s a trick question. The answer is the person with the best relationship with the donor – even if that person is not technically a “major gift officer” by title.

Being able to find and secure gifts at any range takes practice, patience, and good tutelage – factors that are independent of the number of zeros on a check. Perhaps a better way of thinking about what we do - or strive to do – needs entirely new language to capture. The inclusive phrase, “Master Gift Officer”, is a new way of defining this paradigm shift. The master reference is just that – and meant to indicate the highest level of ability, talent, and dedication within the development profession.

Almost all of the skills, traits, and habits associated with Master Gift Officer status can be learned by development professionals who are truly committed to success. Here at Copley Raff and our sister organization the Philanthropy Leadership Advancement Nexus (PLAN), we have assembled a comprehensive list of key attributes that defines a “Master Gift Officer.” We have seen these traits repeatedly in the most successful fundraising professionals. In order to help others achieve this excellence, we have created a 4-day intensive Master Gift Officer Event, called PLAN-MGO, which trains on these distinctive winning factors. The event is produced annually; the 2011 session will be held October 29th through November 1st in the Boston area. Check it out here at www.planmgo.com. Without giving away the store, suffice it to say that passion, smarts, emotional intelligence, and genuine interpersonal interest are all at play for the Masters.

Your takes:

Never underestimate the power of words: professional language can be powerful and liberating or restricting and limiting.
Match opportunities with relationships and do not limit planning to rigid titles or dollar value parameters.
It’s time to acknowledge the masters of our trade with due language and regard.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

How Are Nonprofits Doing These Days?

2011-05-31T11:24:00.000-07:00

As a fundraising and strategic consultant for not-for-profit organizations, I am repeatedly asked the same questions from people wherever I go… How are nonprofits doing these days? Are donations down? Perhaps it’s a sign of the times that these inquires are top of mind when it comes to considering the well-being of many of our essential healthcare, social services, arts, cultural, and educational institutions. The economy remains a challenging uncertainty, and from a personal as well as professional perspective, I’m glad people are concerned with the plight of philanthropically dependant organizations in this time of tight budgets.

Economic downturns are not a new phenomenon. Nonprofits are facing analogous financial challenges as they did in the last recession of 2001, as well as those in the early 1990’s and 1980’s. However, the answers to the two questions - How are nonprofits doing these days? Are donations down? - have not changed over time. Today - as well as during past economic downturns - for the most part, NPOs that have an established advancement enterprise are weathering the storm and are holding their own. Some, in fact, are even showing year over year gains. Well planned and executed strategies, designed for short, medium, and long range realities, have allowed them to thrive, many close to pre-recession levels. Additionally, mature shops are making adjustments and planning for the slow economic turn-around that seems afoot.

On the other side of the coin, NPOs that have not built up a strong base of donors and loyal contributors, or have not had strong, mission focused leadership who understand that fundraising is a 365 day a year priority, are finding they do not have the moorings to adequately weather this storm.

For NPOs of all sizes and missions, the time is now for preserving donors, strengthening relationships, and planning for the reemergence of the “new normal”. All is not lost for less sophisticated or smaller advancement shops. Take stock in your organization’s value to its constituents; human capital in staff, volunteers and donors; and vision for the future. Then craft a strategy that will support investing in your advancement enterprise for today, tomorrow, and the next decade. You want to be ready for the emerging “normal” and for the next inevitable challenging cycle.

Your takes:

1. Solid advancement enterprises are better able to weather significant economic downturns; it is never too late to make strategic adjustments that strengthen your team, outreach efforts, and development bandwidth.

2. A new “normal” is emerging and responding correctly to this environment will be essential in order to align your organization with new funding realities and opportunities.

3. Take stock in your organization’s value proposition and assets and make them central to your planning.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Where Are The Mentors?

2011-05-19T07:24:00.000-07:00

Success... some folks are born with a natural tendency for it, but in reality most of us need a little help to achieve it. This is especially true when it comes to career development in the world of non-profit fundraising. Being in my third decade in the advancement profession, I got to thinking recently about those “people, places, and things” that were most helpful and constructive in my training and professional advancement. Overall, these key influencers fall into three categories:

Professional training and development
On the job (OJT) training (and survival strategies)
Mentor largess

Let’s take a look at each individually, and in turn how they work together, to understand the evolving roles coaching and learning play at every point in your fundraising career.

Professional training and development:
There is no substitute for learning the technical aspects, logistics, and norms that make up the facets and mechanics behind advancement. You need to know - or at least be familiar with - the tools of the trade, so you know the language, the research, and the cause and effects of various functions. Although this influencer is somewhat weighted towards newcomers to the field, I would highly encourage even the most seasoned professionals to take two classes or seminars per year. The first should be a refresher course on the basics (which have changed in this new economy). The second should be one that develops new skills that will help you do your job better today, such as a seminar on how NPO’s are using social media for storytelling and development purposes.

OJT, Otherwise known as “baptism by fire”:

People learn best by doing, experiencing, succeeding, and failing Although failures are uncomfortable, embarrassing, and disappointing, often times the most actionable lessons and long term benefits arise from them. When I conduct training sessions and tell development stories, the ones that get the most audience interaction and positive feedback are those of failure. Fortunately, my inventory of failure stories is far outnumbered by those with a successful and happy ending.

Mentor largess:

It is my experience that the most grounded and often the most successful advancement professionals are those who have had sound mentors. Here’s why. From mentors comes real, time tested, “not going to find it in any textbook or classroom” wisdom. One of the first questions I ask job candidates or client advancement officers is about their experience with mentors – either having one, being one, or in a perfect world, both. Unfortunately, only a lucky few have had the benefit of willing and wise mentor relationships. Being fortunate enough to benefit from the experience and wisdom of others is a gift. In effect, it is drawing from the “wisdom of the crowd”, with all its diversity of situations, organizations, culture, and missions.

If you are relatively new in the profession, seek out a mentor or two and go out of your way to do it. It is worth your time and the cost of a monthly or quarterly lunch! Most professionals are flattered to be asked and will respond quite positively to your request. In turn, if a junior colleague asks for advice, remember that everyone has experience to share at each point on their career trajectory.

If you are relatively senior in the profession, I encourage you to be a mentor to promising and talented professionals. It is a most gratifying contribution to the profession and to society. And, it is amazing what YOU can learn from these relationships as well.

On a personal note, I once took a job while knowing my boss would be very difficult and demanding. My gut told me that she would be a good mentor… and I was right on all points. I learned a tremendous amount from her, with a little OJT in the mix as well.

Your takes:

Professional development is multi-dimensional and essential at all points in your career.
Find a mentor to enhance your quality and quantity of professional development. You can have several mentors, each with distinct core competencies.
Be a mentor when the opportunity presents itself.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Entertaining Endowments

2011-05-10T12:42:00.000-07:00

I recently had the privilege being a panelist at an event focused on exploring the issues surrounding endowments. The forum, sponsored by the Boston area Foundation for MetroWest, was attended by regional board members from nonprofits with a range of missions and budgets of $500,000 through $5+ million. A common denominator among attendees was their need to raise annual and capital funds for present-day use… and all were struggling to do so.

It was clear from the spirited conversation that two big questions were on the minds of the participants:

What EXACTLY is an endowment? What forms can it take, and how does it benefit my organizations?
Should my organization pursue building an endowment? What factors should we be considering?

Have you had these same questions in regards to your nonprofit?

Given the seemingly amorphous nature of endowments, it is no surprise that so much confusion surrounds them. And, their definition can be as personal as what it might mean to be politically conservative, liberal, or progressive! A pure endowment, the rarest of the breed, is one that is donor directed, does not invade principal, has documented restrictions, and is bound to honor all of the conditions set forth by the donor. Most organizations have minimum gift levels to establish named endowed funds.

Of course, other forms of endowments exist too; the most common are “quasi” endowments. Under this scenario, the organization’s board directs the use of the funds and can change the restrictions as conditions dictate. In layperson’s terms, this is analogous to a business’ “reserve fund” – those monies which provides the basis for cash flow, investment earnings, and capitalization for new initiatives.

If your organization is considering building an endowment, here are three key factors to consider:

First: Test the waters. Draft a case statement for the endowment. If you are able to make a compelling, visionary case for how an outright or estate gift might be used in 20 to 40 years, then meet with your most supportive donors and stakeholders and see if the case resonates with them. You’ll be learning if you have a basis for the endowment initiative while at the same time bringing your advocates along toward their endowment gift.

Second: Insure board support. A successful case will give your board the basis to establish a policy to direct all unrestricted estate gifts received into a “quasi” board directed endowment. As a result, it becomes crystal clear that you are you are building a platform to support the future, not budgeting for this episodic, non-recurring revenue.

Third: Confirm resource bandwidth. Be certain that your organization has a secure revenue forecast before undertaking any additional fund raising initiatives. A standard metric for this is the number of days of operating expenses you can cover with your banked savings. This is a common measure for hospitals. Up until recently, most had up to 180 or more days of operating capital in reserves. Now, the majority have less than 80 days worth of funds. This measure is an easy tool to use for the board and others to help you determine how many days of capital your board is comfortable with before embarking on endowment building.

Your takes…

Be clear about what you mean by “endowment” when discussing this financial vehicle with your board and stakeholders.
Take a close, honest, and realistic look at your organization’s mission, advancement operation, plan for future growth, programming, and financial situation before arriving at the decision to pursue endowment building.
Estate and planned gifts are typically the building blocks of endowments and can be integrated into your advancement operation as a first step in pursuit of a well endowed future.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

The Job Tenure Myth

2011-04-26T10:39:00.000-07:00

It has become common lore that the average tenure of a fundraiser is 24 months. Is it true?

As an executive recruiter for advancement professionals, I have to say that the majority of resumes we receive for positions we represent, typically vice presidents, director of development or major gift officers, reflect this average.

24 – 30 months seems to be the average tenure of job-seekers in the field, distinct from that of non-job seekers. Non-seekers seem to average well into the 48+ months in tenure. It is the job of a search firm to find the non-job seekers and to convert their interest toward a new position.

There are, of course, many reasons for a short stint as a fundraiser. Sometimes you realize early on in your new position that you made a mistake and the fit is poor. It quickly becomes clear that the organization’s leadership, CEO and board, are not allies in development. I don’t know anyone who has not made this mistake.

Then there is the situation where you join a strong team and the team leader leaves. You have lost your mentor, perhaps, and the prospect for a good outcome grows dim as time goes on… time to find a more promising opportunity.

To be sure, sometimes we are victims of circumstance. But, if you find you are regularly not “lasting” in a development position for more than 30 months, perhaps you should take stock and try to understanding why this is so.

Ask yourself the tough questions:

Do you like to build relationships with people?
Do you know how to frame those relationships professionally so you can eventually do your job and ask people for a gift?
Do you write well and are able to communicate clearly and persuasively?
Do you have enough attention to detail and follow through?
Are you a good advancement officer but a lousy career builder? And finally,
Do you understand your personal mission - that drive that gets you up and raring to go in the morning – and is it aligned with the non-profit/charitable world in general, and the organizations where you seek employment in particular?

Increasingly, tenure is a very important career asset and will separate you from what is the job-seeking norm.

Your Takes…

Take time to reflect on your personal mission and how it aligns with your career moves.
Take stock in what is important to you in a job and pursue it.
Be realistic about what kind of development officer you are and whether it works for you.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.

Building a Philanthropy Relationship Network

2011-03-15T10:15:00.000-07:00

Don’t you know all the people who have money? This is both wishful thinking and sometimes the refrain from a non-profit CEO or volunteer during a job interview.

Every successful philanthropy development enterprise must utilize the personal and business networks of board members, volunteers and staff in order to find and build connections with potential supporters. In the sage words of the late Massachusetts Congressman and Speaker of the House Tip O’Neil, “make friends BEFORE you need them.”

As a development professional you know this to be true, but you also know you cannot do it alone. Building a relationship network is both easy and enjoyable, and is a tremendous staff team building and donor cultivation strategy. Just think how valuable it would be to know who knows your top 200 donors, to know the depth of the relationship, and to learn all this using a quick and novel screening process.

A relationship network, for purposes of philanthropy development, provides you with a master map of your top donors/prospects, all the volunteers and staff who know each, and a metric value that indicates the actionable depth of the relationship. You are able to see, for each donor/prospect, which volunteer or staff “link” have the strongest relationships. With this important information, you can gather your strongest links and together devise a strategy to bring the donor/prospect along toward greater involvement and giving.

During this process, your development staff members are out of the office meeting with and getting to know key stakeholders who will be instrumental in building gift officer portfolios. They are building relationships with your first tier supporters in order to reach your second and third tiers of opportunity.

Why go through this effort? All successful and enduring donor development efforts must rely on relationships between people representing your organization and your donors. Development officers have their own relationships to be sure, but to achieve the numbers and scale necessary to ensure an endearingly successful effort, not to mention a campaign major and leadership gift portfolio, you must use the relationships of others.

Your Takes…

Carve out regular time to create and nurture important relationships.
Understand the depth and breadth of the relationship networks of your key volunteers.
Use the relationships of others to further your organization’s mission.

For more information about Copley Raff and its spectrum of not for profit consulting services, please see www.copleyraff.com.

Have a development, executive recruitment, or campaign strategy or management challenge? Let's talk! Click here to connect with Rebekah Kaufman, Director of Consulting Services at CRI.