the fundraising beat

New economic realities, human resource challenges & changing donor motivations: the environment within which Canadian charities and non profit organizations work is evolving rapidly.
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Apr 11, 2012

How to work with your Board: Tip #9

Posted By: The Development Group

by Andrea McManus, CFRE

As fundraisers we often get frustrated that our boards (and our organizations!) don’t understand what it is we actually do.  My last 4 tips out of the Top 12 Tips on engaging your board directly relate to clearing the fog -  the often hilarious and sometimes sad myths about ‘fundraising’ and, in particular its relationship to philanthropy and our donors.  And here’s the thing: we often are the worst perpetrators of these myths! But the flip side of that is that we have tons of opportunity to change the conversation, the context and the understanding. So let’s start with Tip #9:

Present fundraising strategically and don’t box yourself into being measured simply on the basis of raising $xxx’s.

And how do we do that?  By making sure your board ‘gets’ the importance of fundraising – right from the beginning.

If you want your board members to think strategically about fundraising then you must present it from a strategic perspective, starting with the board orientation and including regular reinforcement aligned with planning cycles.  Constantly remind them that the development plan and goals are driven by the strategic plan and the strategic plan’s success is dependant (to whatever degree) on the success of the fundraising plan.

Board members have probably been provided with our goals, success factors, trends, reports, tools and techniques but they may have missed the real context, the essential fabric of why fundraising is important.  They haven’t pulled it all together.   Without this context you will likely not get the action you want so make sure your board knows:

  • why private support is required and how important it is to your budget, i.e., how it allows you to fund new programs but also the impact on programs if you don’t meet your goals;
  • how it determines programming and mission-fulfillment ;
  • how it is used, both restricted and non-restricted gifts, and particularly the importance of the latter;
  • successes, challenges and lessons learned in previous fundraising;
  • how fundraising goals are set, based on past history, current and appropriate  resources and realistic growth, i.e. that goals are not set based on the budget deficit;
  • that it is not just about reaching a single dollar goal in any given year but about building a sustainable program over the long-term that includes acquiring new donors, retaining current donors, filling the pipeline and numerous other measurable activities;
  • who your current donors are, both generally and specifically, and how they have become donors (particularly when they can be linked back to board member engagement).

I’m convinced we can change this conversation.  Are you?

More to come in future installments of ….the fundraising beat…

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Apr 05, 2012

How to work with your Board: Tip #8

Posted By: The Development Group

by Andrea McManus, CFRE

Is there anyone out there who has not come up against the question of board giving?  “I gave at the office.” “I give elsewhere.” “I give my time here and my money somewhere else.” “I’m on three boards, I can’t give to them all.” “I can only make a small gift – what difference can that possibly make?”

Well, in today’s world of sophisticated donors these statements just don’t cut it anymore and it most often falls to us as fundraisers to Tip #8 (in my 12 tip series):Encourage your board members to fully discuss and adopt a board giving program that will allow them to proudly give within their personal capacities.

The reality is, that it takes time and money to provide services and fulfill missions – and both matter.  The board, as the ultimate leader, can and should reasonably be expected to lead by example.  In fact, the trend clearly indicates that donors increasingly have this expectation and are not shy at asking about it.  As well, more and more foundations are making 100% board giving a requirement of getting the grant.

As a consultant I am often brought in to facilitate this always sensitive and contentious discussion at the board table, and it is something that I believe that boards, if they are not already fully engaged in fundraising, should be encouraged to take the time to discuss.

In my first or second year of fundraising I went to a workshop on staff/board relationships around fundraising and participants were encouraged to attend with both a board member and a development professional.  There were about 60 people in the room representing about 25 or so organizations and the discussion inevitably came around to who could claim 100% board giving.  Two people – yes, only two – raised their hands. They were a board member and staff person from a national organization that worked with people at or below the poverty line.  They went on to very proudly inform the group that by virtue of their by-laws, something like 80% of their board members had to be below or recently below, the poverty line.  There was a moment of silence where you could hear the proverbial pin drop and then a very heartfelt and admiring standing ovation.

This is a powerful illustration of passion, commitment and leading by example and served to significantly shape my approach to board giving.  When I tell other boards this story it really puts the conversation into perspective and heads literally nod in understanding all around the table.

In addition to including the expectation of personal giving in the board roles document and job description here are some other suggestions to gently reframe your board’s thinking on personal giving expectations:

  • Start the discussion at the Development Committee level and have them bring it to the board.  This creates a peer-to-peer discussion which automatically reduces the ‘pressure’ and focuses instead on the ‘let’s do this together’.
  • Make sure that each board member is heard both at and outside the board table.  We know from working with donors that people have deep relationships with their money – so do our board members.
  • Acknowledge that your board has other factors to consider in its leadership composition, e.g. diversity, geographical scope, stakeholder representation, that may make this a tough decision.
  • Research other organizations in your community that have board giving policies or expectations and present them as benchmarks.  If you don’t do it first you can bet at least one of your board members will.  So be prepared.
  • Tell your board members that you want them to be able to answer proudly when a prospective major gift donor asks if they have personally given.  This could be “Absolutely, it was the largest gift I have ever given to any organization.” or “Yes I did.  It was a stretch but it was worth it to me to support my organization.”
  • Tell my story above – but do it at the right time when your board is moving close to a new way of thinking.
  • Present options and empower your board to make not only a good choice but the right choice for them and for the organization.  Click here for the pros and cons of three possible approaches to this often thorny issue. Consider which one will resonate best with your board.

A finally, a word about adopting ‘give, get or get off’ or ‘time, talent or treasure’ policies.  While both of these recognize the importance of giving both time and money and are widely used and articulated in fundraising literature, I personally have never been that comfortable with them or found a great deal of resonance with volunteers.  ‘Give, get or get off’ always strikes me as a bit harsh and grasping and ‘time, talent or treasure’ a bit trite.  These phrases are fundraising jargon that I believe are best left to our internal discussions and not with our volunteers.  I’d rather talk to board members about passion and philanthropy.

More to come in future instalments of ….the fundraising beat…

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Mar 29, 2012

How to work with your Board: Tip #7

Posted By: The Development Group

by Andrea McManus, CFRE

So, once you have the board  members you want, how do you use them to the greatest advantage?  There are, of course, pros and cons of having a development committee but if managed strategically you can use your Development Committee to access the full board and make them your champions.

The Development Committee is where fundraising leadership typically comes from at the board level. Not all nonprofits choose to have a Development Committee, particularly fundraising foundations where the primary purpose is to raise philanthropic revenue.  However, for many organizations a committee provides focus, leadership and entrée to engagement of the full board in the fundraising process.  The Development Committee should be staffed by the senior development person and is primarily responsible for developing the long term development program goals, keeping the annual development plan on track, assisting with identifying, qualifying, cultivating, asking and stewarding donors, and being the go-to support group for the chief development officer.

The Development Committee also leads the board giving program and encourages other board members to be involved in fundraising.  However, there is a caution here about the use of development committees.  It is vitally important that the development committee not be considered to be solely responsible for fundraising to the extent that the board, intentionally or not, abrogates its collective responsibility.  In the world of relationships, strategic partnerships and highly-savvy and informed donors, there is both a need for and expectation that all board members will be involved in some way.  To contain the responsibility within a sub-committee of the board is, quite simply, shutting the organization off from the potentially beneficial outcomes of relationships other board members may have with prospective donors – to the detriment of the organization and ultimately to its mission.

The Development Committee also provides an opportunity to recruit non-board members to the important work of fundraising, offering a natural training ground for new board members and opening up the field to volunteers who may not be interested in the time commitment and responsibility associated with a board seat.  Even better if these volunteers are donors themselves who are willing to talk about why they gave to your particular cause.  It is hard to be more compelling than that!

The Development Committee is also a way to connect with the board if you don’t have direct access to them through your day-to-day work. Make the development committee your champion and let them lead you to direct contact with individual board members.

Did you miss Tips #5 & #6?

more to come in future instalments of….the fundraising beat…

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