Hank Lewis, MA, CFRM – Page 12

September 25, 2012April 3, 2022

A Variety of Thoughts on Donor Recognition

There are many different types of recognition programs, the most effective of which are often the face-to-face variety. Sometimes, the best form of recognition is a handshake offered by the appropriate person.
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Another form of recognition that can touch a donor is a personal note from someone who has been impacted by the donor’s gift.
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Recognition programs should be tailored to the needs of the programs being supported, the needs of the donors and the circumstances. The potential for these kinds of recognition programs is limited only by the limits of your creativity.
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Speaking of Creativity, your website could be a great place to provide donor recognition. I don’t mean a page with lists of names. I’m thinking of the same kind of articles that’d go in your newsletter … about how a donor’s gift made a difference; a photo of a donor being thanked/congratulated by a highly recognizable, highly regarded person; a photo of a donor being inducted into your “honor society.” Again, the potential is limited only by the limits of your creativity.
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Caution is urged for the creation of a permanent, wall-mounted, visual display. Use your wall space judiciously. It’s not infinite.

Typically, wall-mounted recognition is reserved for major gifts for capital campaigns, estate gifts, etc.

Many of the wall-mounted, permanent, recognition modules are impressive and well worth the money. But…. only under the right circumstances.

Using impressive wall-mounted displays for everything detracts from their significance.

When getting advice as to the type of recognition you might want to use for a program, don’t rely on vendors. Their advice must, by its very nature, be self-serving…. Not that they’d be dishonest — just that there’s a built-in bias.
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Many institutions divide their gifts along arbitrary lines for recognition purposes:
$1-$100=Friend; $101-$500=Good Friend; $501-$1,000=Very Good Friend;
$1,001-$5,000=Bosom Buddy; $5,001-$10,000=Blood Brother/Sister; etc.; etc.

The problem with that system is that it assumes every donor wants/needs to see his/her name on a list and/or wants/needs everyone else to see his/her name on a list. Some donors might even object to having their names listed.
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Any thoughts about recognition?? I’d be pleased to address your comments in a future posting.
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Have you seen The Fundraising Series of ebooks ??
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Have a comment or a question about starting, evaluating or expanding your fundraising program? Contact me at Hank@Major-Capital-Giving.com With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions.
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If you’re reading this on-line and you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting. If you’ve received this posting as an email, click on the email link (above) to communicate with the author.

September 18, 2012April 3, 2022

Asking for the Smaller Gifts

Whether by mail, by phone, by a combination of both or face-to-face, there is language that will make your “asks” more productive.

But, first, to address what distinguishes a “smaller gift” from a “larger gift.”

If the gift makes a significant impact on your bottom line, it’s a larger gift. If it takes some time/planning to get the donor to make it, it’s probably a larger gift. If you get it as a result of a mass solicitation method, it’s probably a smaller gift. If it’s not a Major Gift, it’s a “smaller” gift.

A mass solicitation should never ask a (potential) donor to “give what you can,” to “give what’s comfortable, or to say that “any amount will help.” That’s not fundraising, that’s begging/whining/crying. Fundraising is about raising funds, about reaching fundraising goals, about raising enough to fund your programs.

Fundraising is about asking for a specific dollar amount, and there are a number of ways to do that:

By giving choices: 1) … indicating that $XXX will feed a hungry child for a month; 2) … that $YYY will pay the rent for a homeless family for a month; 3) … that $ZZZ will provide vaccinations for every child in a village….

By asking for $XXX and giving the choice of: 1) $YY per month; 2) $ZZ per quarter; or, $YZ twice during the year.

By asking for $XXX and giving the donor the option to send in the full amount right away, or spread out payments over the next twelve months.

By giving the donor the option to charge his/her gift to a credit card — at $YY/month.

By giving the donor the option to make their (first) payment later – “Would next month be good for you, or would the month after that be better?”

Whether you’re asking by mail, by phone or in person, you should know enough about your prospects to know what amount to ask for and what choices to offer.

Knowing that, you need to segment your prospect base so that the “asks” are appropriate for each constituency you’re addressing – different $Xs, $Ys and $Zs.

To support/strengthen your ASK, your gift return slip (for a mailing) should only give the choices you discuss in your letter.

For a conversation (by phone or in person), you never ask if your prospect would like to give, would like to support “the cause,” or would “like to think about it.” The choices you provide do not include “No” as a potential answer. The only options relate to how the donor will be most comfortable making the gift for which s/he was asked.

Now don’t get all worked up about how that’s not a “nice” way to treat a (prospective) donor !! Nice is attitude. Nice is a warm voice. Nice is sounding like you’re glad to be “talking” with the prospect. Nice is how you treat someone. “Nice” does not preclude doing your fundraising in an effective manner.

What do you think ??
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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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If you’re reading this on-line and you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting. If you’ve received this posting as an email, click on the email link (above) to communicate with the author.

August 21, 2012February 22, 2023

Local Education Foundations: Unrealized Fundraising Potential

There’s a phenomenon in our communities public or local education foundations (PEFs or LEFs) that have been created/designed with political agendas the politics of education, and the politics of inclusion.

People in communities all over the country, espousing one educational philosophy or another, are working to influence their school boards and local political structures to improve/change their public education systems; but, because of a narrow focus, they are missing out on a major opportunity.

Many of these EFs, have been highly effective in sensitizing Boards of Educations and Public School Administrators to the different components and needs of the various segments of their constituencies — ethnic, religious, national origin and linguistic. And, of course, the way change is encouraged is through vocal exhortations directed at local and state political figures.

This method of social activism has resulted in modifying courses of study, adding new subjects and subject material, and increasing mutual awareness and respect among diverse segments of our communities.

It is, however, not my intention to comment upon or evaluate the performance of these organizations, but to suggest a way that they could have a greater impact on the quality of education in their communities.

Many of these EFs, no matter what they are called, are non-profit corporations that are eligible to receive tax-deductible contributions, but are not raising anywhere near the dollars that can be raised.

As examples of what can be done, there are a number of public high schools in New York City whose alumni bodies have created foundations that raise hundreds of thousands of dollars for everything from textbook replacement to construction of robotics laboratories and computerized language learning centers.

To be successful in the fundraising process, and the above examples didn’t happen with book sales, cakes sales, dinners or other special events, takes a different focus than for the social activism — not that they are mutually exclusive.

To get corporations to fund reading programs, to get foundations to fund college preparation courses, to get wealthy individuals to support equipment purchase, to get senior citizens to bequeath their homes to those EFs — to get anyone to give major bucks to supplement public education, you need Board Members who are networked into those (potential) constituencies.

You need leaders who are committed to the fundraising process, and who are willing to take the time to plan for and execute (individual, corporate and foundation) major gift solicitations — who are willing to give of their own resources and get others to do the same.

Only through such a program, with such committed people, can major gifts be secured for public schools. Only through networking, through personal connections, can this happen.

Don’t assume that just anyone can successfully ask for the big gifts. As with all skills/talents, not everyone is good at everything.

For your organization to be effective, it must have a cadre of volunteers who can help advance the fundraising agenda. They must be trained in the workings of a non-profit corporation and its fundraising procedures. They must understand their roles and responsibilities. And, they must passionately believe in the mission of the corporation.
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If you’re reading this on-line and you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting. If you’ve received this posting as an email, click on the email link (above) to communicate with the author.

July 17, 2012April 4, 2022

We Want To Do The Study Ourselves !!

Business team working on a feasibility and planning study

We are preparing to enter into a capital campaign for a Christian Camp. We do not have a budget for a feasibility study, but we do have some capable people. What resources or materials can you recommend for us to do a feasibility study ourselves?

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I have two immediate/automatic reactions to that question:

1. Feasibility Studies are obsolete. What you should be doing is a Planning Study — see this
series of postings: Fundraising Planning

Not having money budgetted for a study should not keep you from looking for and finding someone or some corporation, foundation, church or church congregation to fund a study.

Then, in gratitude for that initial support, appropriate recognition could/should be given to that funding source(s).

When conducting the study, giving mention to the fact that a specific person, church or institution has already supported your project (by funding the study) adds credibility to the process.

2. As is most often, when organizations do their own pre-campaign studies, they don’t
know what information to seek and how to use what information they get; and, planning
a capital campaign based on faulty/inadequate/insufficient information is a formula for failure.

Fundraising consultants (the good ones) who work with clients to design and implement planning studies write the questions for each individual study after meeting with leaders of and learning as much as is reasonable about the non-profit. They don’t use all of the same questions for each client/situation. Questions must be designed to get interviewees thinking along specific lines.

Sure, there are some questions that could apply in many studies, but most of the questions for a study are/should be specific to that study.

A proper planning study is an investment in success. Identification (and the initial cultivation) of potential leaders and major donors and the setting of an attainable goal are the key results of a proper pre-campaign study … a study that will tell you whether or not you should be entering into a capital campaign, and suggesting what strategies and tactics would be most effective in-and-for each individual major-gift prospect and each distinct set of circumstances.

The only advice I can offer to an organization in the circumstances you describe is that if you’re going to do it, you should do it right. Doing it wrong gets very scary.

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June 26, 2012April 4, 2022

A Salary Question – For Someone New to Development

From an email: I am scheduled to interview with a staffing company who is helping a non-profit organization fill the position of Director of Programs and Grant Development for a Chicago nonprofit. I’ve never held this position before, but I have over 10 years of IT experience and over 8 years of Sales experience. What is your opinion about starting salary for this position?

This was a question with many implications, so I addressed the several questions that I saw implied….

1. A person with the experience, skills and track record to be Director of Programs and Grant Development could be eligible for a salary of $75-$90,000 in the Chicago area.

2. How does your work history qualify you for that position?

3. No matter how bright and how much of a quick learner someone may be, a person without the experience, skills and track record, if hired by the nonprofit organization, would be doing that NPO and the people it serves a major disservice.

4. The eighteen years of work experience that you describe, where highly desirable in other occupational areas, should only qualify you for an entry level position in development at $25-$30,000.

5. If you have a strong desire to serve the nonprofit community in a development position, you’d be better off volunteering with a large NPO that would be willing to give you some training/mentoring – the nonprofit community would also be better off.

To take a position with a nonprofit organization for which you are not qualified, by virtue of training and/or experience, is to violate the ethics of the sector … but that’s a whole ‘nother posting.

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June 19, 2012April 4, 2022

Improving/Expanding Your Fundraising Program

Colleagues discussing about their organization's fundraising program

The Summer Is A Great Time To Make New Things Start To Happen !!

It would be a good time for a Development Program Analysis/Assessment/Audit to take a look at your current fundraising activities/programs to determine:
• What you’re not doing that you could do; and,
• What you’re doing that you could do more (cost) effectively !!

That should include an evaluation of your fundraising leadership and your leadership potential. It should incorporate an assessment of your fundraising knowledge/skills. It should determine how effectively you’re getting your message out to your (potential) donors, and how your donors/leaders/volunteers feel about how they are recognized for their support/efforts.

It would be a good time to begin Creating/Enhancing your Major Gifts Program — you could:
• Identify potential leadership;
• Identify potential major donors; and,
• Figure out how to get them to tell you what you need to do to get them to do what you
want them to do !!

Major focus of this process is to learn what it is that would make folks want to become major donors to your organization.

It would be a good time to begin working on that Bequest Program you’ve been thinking about, so you can:
• Ensure long-term (5-, 6- & 7-figure) cash flow;
• Build a volunteer leadership that will want to help you create the program; and,
• Design a “Recognition Program” that will encourage potential “Legacy Society” members
to want to join you.

In addition to the elements noted for the first two activities, you must determine what it would take to get people to want to name you in their wills.

And, to emphasize “the” critical factor for all of the above, the fact-finding and planning must focus on how, by supporting you, the (potential) donors will be satisfying their own needs.
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

June 12, 2012February 9, 2023

Naming Opportunities and Bequests

Two women laughing in front of a whiteboard

This posting is based on an email exchange asking about the relationship between bequests and Naming Opportunities (NOs). I have expanded on my responses in that exchange:

With regrets, I do not have a set of generic naming policies that I can share. I would, however, be happy to suggest how you might structure such for your organization.

First, you need to have policies in place to “regulate” what your organization will do with bequests, whether all or only certain (types or percentages of) bequests will go into endowment, capital needs and/or operating expenses.

Then, you need policies for what you would be willing to name, and what you wouldn’t – and whether the naming would be permanent and/or if some/all would have terms of a specific number of years.

Once the policies are in place, and there is a list of naming opportunities approved by the board, they shouldn’t need to be involved in approving each naming.

Typically, the Development Committee of the Board, in conjunction with the Chief Development Officer, make the decisions as to who will be offered which “opportunity” … at what “price.”

One caveat, the organization should also have in place policies specifying from whom the organization will/will not accept support.

Naming Opportunities (using the term broadly) for support of operating expenses tend to be of the names-on-a-list or on-a-plaque variety. NOs for endowment, depending on the size of the gift, can be names-on-a-list, names-on-a-plaque, or the naming of a (part of a) program that the gift endows.

NOs for capital projects range from names-on-a-plaque to names on equipment to names on (parts of) buildings.

NOs based on bequests, since an NPO doesn’t receive the gift until the donor is no longer with us, must be discussed/negotiated with the donor before they die !!

Those discussions/negotiations tend to be very business-like, and focus on what’s important to the donor. After all, s/he is not going to name you in his/her will unless:
1. S/he already feels strongly about your organization (or one of it’s programs) and/or;
2. Through the process leading to naming you in his/her will, develops that strong feeling for your organization (or one of it’s programs).

If you’re going to “sell” a naming, just be sure that the price is commensurate with the value of the “opportunity.” Remember, the “price” of a “naming” is based on the market value of that naming – a price that has little-or-no relation to the cost of creating/building/purchasing whatever is being named.

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
=-=-=-=-=-=-=-=-=-=-=-=-=-=
If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

May 29, 2012April 7, 2022

Executive Director, Deputy Director & Founders – Part Two

This posting is a continuation of the email exchange begun last Tuesday.

“I am happy to step down and then go through the hiring process, I just don’t understand how it works. When, specifically, do I step down from the board? Is it when we have enough money to pay staff or as soon as we start providing services? We plan to put money into programs first, staff salaries second as we have the means to do so. So, there is a good chance we will already be entrenched in service provision before we even have the money to pay anyone.”

The best advice I can give is that you should do what you’re doing. Continue the birthing process and help the baby learn to walk. Don’t worry about formalities yet. You’ll have your initial board … a board that’s doing all the work … and you won’t need staff ’til there’s more than a couple of board members can do themselves.

When the time comes, and there is sufficient income for staff salaries, then you can (in this order) assume the E.D. mantle and resign from the board. (I know that contradicts what I said earlier, but at that stage in the life of an NPO, it doesn’t make a lot of difference.) Don’t worry about a hiring process.

Once you’re the E.D., you can hire the D.D., assuming the board has authorized a budget that includes staff salaries. Do that before resigning from the board !!

As a former D.O.D., I’m sure you know that you can’t budget an expense line until you know where the money is coming from.

“You mention we should recruit board members “later.” When is later?”

“Later” is when you have something of substance to show prospective board members, when you have something that they’d want to be part of. Recruiting board members must address their needs as well as the needs of the NPO.

“What I’m looking for is a timeline of steps: when we should add more board members above and beyond the three founders, when we should create true staff/board designations and when my role should change.”

There is no textbook timeline. Birthing and growth of each NPO is different. You must use your judgment in deciding when “it’s time.” You could also engage a consultant in organizational development to provide periodic observation/counsel.

“I would like to be the Executive Director.”

If that’s what you want, and you have the vision, there’s no reason not to go for it.

“That is my intention. Knowing I have that goal in mind, do you have any thoughts as to how I can ensure that I am keeping the best interests of the organization front and center and not letting my own interests and desires get in the way? Should I NOT look to become ED and just remain on the board (with a term limit)? Provided I do pursue that goal, and I do become staff, I don’t expect to receive any special treatment just because I founded the organization, and I understand the dangers of that situation.”

If you keep in mind and give priority to the needs of the people the NPO was created to serve, it shouldn’t be hard keeping the needs of the NPO in mind. There should not be a conflict.

In any case, since it was your vision, and the E.D. is the board’s major resource, you can keep the board focused on why they and the NPO exists.

As above (and in my “Mature Organization” piece), from birth up to puberty what is important is whether it’s a well adjusted child doing what it should. If it gets to that point without formal staff, fine. It’ll be up to you (and the other existing board members) when it’s time to “hire” staff and formalize the structure.

Until then, just do good stuff.

“So, do we just write the hiring procedures for ED into our bylaws, and then let the board handle it? Can you point me in the right direction in terms of places to look for guidance in writing up those procedures? Are there are reading materials or articles you can direct me to so I can learn more about this process? I am having trouble finding information about this specific issue in the creation of a new NPO.”

I suggest you take a look at “Starting Organizations.”

There’s a lot of stuff that will probably be of help.

“I ask all of these questions because we are going to be able to start providing services fairly quickly, so while it may be irrelevant now, it will be relevant soon and I’d rather be prepared than wait until the last minute to make decisions regarding how we will handle the process.”

You already have a pretty good idea of what’s required and what to avoid, so don’t be too concerned about a specific timeline.

Enjoy the satisfaction with the creative process and with providing service to people who need it.

BTW, Carter McNamara, the owner of the Free Management Library website, that host this blog, is a management consultant … and you couldn’t do better if you need counsel.

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May 22, 2012April 7, 2022

Executive Director, Deputy Director & Founders – Part One

The following is the first part of an email exchange with a reader:

“My partner and I are creating a non-profit organization, and we will serve as Executive Director (me) and Deputy Director (my partner) as well as, of course, founders.”

Executive Director and Deputy Director are titles of functioning roles. Founder is a description of a person, not a functioning role.

At this point, during the birth and first faltering steps of the new baby, titles are kind of irrelevant. It’s when you really get organized and are close to providing services that there needs to be a distinction/separation between board members and employees/staff.

“We are also founding board members, because we need three directors to incorporate (we have a third) and because we are doing all the work, obviously.”

That’s a given, and only needs to change as noted above.

“We want to build our board and have a list of potential prospects.”

•   Make sure you have a job description for board members.
•   Make sure all potential board members clearly understand what’s expected of them.
•   Make sure that all board members will give ($$$) to the best of their ability — if they
    won’t, why should anyone else?
•   Make sure they aren’t just chair warmers, that they can contribute to advancing the
    mission.

“My partner and I plan to take salaries once we have the money to do so, as we will continue to have day-to-day roles. My questions are:

“1. Should we remain board members once we take salaries or step off the board? Is there a timeline for when we should plan to make this transition? How should we do this?”

•   It would be a conflict of interest for paid staff to be board members.
•   You would, first, have to resign from the board, then be hired by the board to be
    Executive Director.
•   The Executive Director hires all other staff members.

“2. When should we start recruiting other board members?”

Start evaluating potential board members now, for recruitment later. “Later” is when board members would actually have a function. You should not recruit people just to warm chairs.

“3. How will governance of us as founders work? Will we basically be choosing board members who will immediately have authority over us as staff? I know the board normally supervises the ED, and I wholeheartedly agree with the checks and balances this puts into place. But how does this strange little transition happen? When do we stop acting as board members and start acting as ED and DD? How do we balance both while we get things going?”

Again, once you are staff, the fact that you were the founders becomes irrelevant … as relates to the governance/functioning of the organization. Once you’re staff, you are subject to the dictates of the board … no qualification/exception because you were the founders. The board “owns” the organization … period. They make the decisions as to mission (which they can change as they will) and finances, and they evaluate and (if they think it necessary) replace the Executive Director.

As to how it all happens … it’s gradual. See my posting on “What Is A Mature Organization.”

Watch for Part Two of this email exchange in next Tuesday’s post.

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May 15, 2012February 16, 2023

You Can’t Just Ask For Money !!

Well… actually you can, if you’re asking your friends and relatives; but, if you ask foundations, corporations, major donors or the general public, you’d likely be wasting your time and resources.

Sometimes, especially with new nonprofits, people don’t realize that the mere existence of an organization is not sufficient justification to ask others for money. And, just because you think that your organization is worthy of support doesn’t mean that prospective donors will agree.

There are two prerequisites for the fundraising process – actually there are more than two, but these are bottom-line basic:
1. A description/discussion of the services you are/will be providing,
why those services are needed, and by whom.
2. An annotated budget, or some form of financial narrative that
describes/discusses your funding needs

There must be a clearly defined need before an organization can/should do any fundraising. The first step is to state/write your case for support in such a way that there is no doubt in the minds of any member of the Board or staff what it is that you intend to accomplish — all must agree, and speak with one voice.

You must discuss who you’re going to serve, what need(s) will be satisfied, why no other organization has addressed those needs or why you can do it better than any other organization.

Once you’ve agreed on what you want to accomplish, you must (specifically) define the resources you will need to pursue your mission – equipment, personnel, cash !!

A detailed budget can also help to focus potential donors on some aspect of your program/activities that has meaning for them.

You have to be able to show/tell a prospective donor where you’re going, how you’re going to get there, how s/he can help … and how s/he will benefit from helping your organization. (And that last element may well be the most important.)

There are too many nonprofits out there competing for the donated dollar. You have to give potential donors a reason to want to support you.

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