Author: Hank Lewis, MA, CFRM

There’s been frequent discussion about a Board Member’s obligation to contribute to his/her nonprofit; and, what that boils down to is that every Board Member must set an example by giving to the best of his/her ability.

Even a dollar (if that’s all s/he can afford) will help demonstrate, to other potential (individual and institutional) funders, that every Board Member has “supported” their organization.

Keep in mind that other potential donors, especially those who’d make the larger gifts, would have less reason/motivation to give if they see that an organization does not have 100%, wholehearted, Board Member participation.

In addition, a Board Member:
1. Helps to identify other potential donors;
2. Conveys to those individuals the depth of his feeling/passion for the organization and its mission;
3. Exhibits the satisfaction that she gets from seeing how people are helped by what the organization does; and,
4. Gets the prospective donor to where she wants to share in those feelings.

The nonprofit Board Member should be a visible example of how a potential donor can share in the warm-and-fuzzies of being part of something really rewarding/satisfying.

Board Members may not all be major donors, and may not all be involved in the identification, cultivation and solicitation of donors, but all Board Members do have to be involved. Their level of involvement makes a statement to others as to their level of commitment…. Sometimes, what they don’t do also makes a statement.

Everything that Board Members do can impact (positively or negatively) the organization’s ability to engender charitable support.

A Board Member is someone who sets an example, and by example gets others to want to become donors/advocates/leaders to that organization.

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A few years ago I asked: “Does your nonprofit have a Director of Development who Isn’t?” Since then, I’ve encountered organizations with “Philanthropy Coordinators,” “Fund Directors,” “Donor Managers,” and people with equally unimpressive titles – people who didn’t know the definition of “Development.”

So many nonprofits are hiring people for all-or-part of their fundraising/development operations without knowing what to look for in candidates for those positions.

If an organization’s CEO (or whomever is doing the searching/hiring) doesn’t understand what development is all about, how can that person hire someone who will be effective as a development officer??

A development officer is someone who knows/understands the NPO,
its mission, its leadership and its hopes and aspirations. He/She
has the experience and skills to help the organization plan for
next week, next year, and (strategically) for a number of years;
and, he/she plays a major role in ensuring the organization’s future.

A development officer’s primary role should not be as a fundraiser. She/he serves best, most effectively, as a planner, trainer, designer and coordinator of the various programs that comprise a development operation. There will be occasions, of course, where this person’s experience/skills/perception makes him/her the right one to ask for the gift, but not always and not often.

This person should have input at all levels, should be able to guide/train the board members, the CEO and staff, and should be able to bring to all of them an awareness and understanding of how they affect the development process and how they can make that process more effective.

An NPO that hires people just to fill a slot, that doesn’t hire qualified development people, puts its future at risk. If a CEO doesn’t know what to look for in a candidate, she/he should find someone who knows what to look for, and have that person help with the search. In fact, it wouldn’t hurt if that CEO were to ask for help in determining what development activities it needs and how they should be structured. That way you’ll know what to look for in a development candidate.

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“Development” is, by definition, the process of creating and enhancing relationships with (potential) donors to ensure current and future funding; “Fundraising” is only about income generation.

With “Development,” with the relationships you create, you take a major step toward ensuring future income; with “Fundraising,” income generation focuses on “now,” with no provision, no assurance, and little-or-any potential for the future.

If people’s giving provides the opportunity for them to feel good about helping to advance the organization’s mission and services, if they give because they want to please the person who is “asking,” because they want to see their name alongside the names of recognizable personalities, or if they want to see their name on (a floor, a wing, or on the outside of) a building, those reasons, for the most part, have to do with satisfying the needs of the donor.

If you create/maintain relationships with donors, you increase the likelihood that they will continue to give — that’s “Development.” If all you do is “Fundraising,” you make it that much harder to ensure your organization’s future.

Fundraising is like a band-aid, Development is closer to a cure.

“Development” is more about people “giving” to an organization than it is buying a product, a recognition opportunity or a ticket to an event. “Giving” implies not expecting anything in return … except for that “good feeling.”

“Development” is also about understanding who your (prospective) (long-term) donors are, and what you have to do to get them to want to support your organization.

Whether it’s a Corporation, a Foundation, a prospective Major Donor or the recipient of a mass solicitation, they’re not going to write you a check if you don’t show them that doing so will satisfy their needs.

Getting a Corporation to want to give to a non-profit is a simple matter of learning, understanding and acting on the needs of the corporation and those of its decision makers. Will supporting your NPO help the corporation’s marketing efforts and increase its revenue? Will supporting your NPO and espousing your cause make the corporate leaders look good? … feel good ??

Foundations give based on their mission and the needs of the foundation leadership. Do you try to create relationships with foundations whose leaders feel strongly about your programs and activities and about the people you serve? Do you know who those leaders are and what is important to them?

To get individual (potential) major donors to want to give, you have to know them well enough to know what’s important to them. You have to know/understand their priorities and what will make them feel good.

Just because a nonprofit does wonderful things in a cost-effective manner doesn’t mean that potential donors will want to support it.

Getting people to want to give, and corporations and foundations are run by people, is about learning, understanding and appealing to their various needs.

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The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99-$4.99)

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Have a comment or a question about starting, evaluating
or expanding your fundraising program?
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In the NP community, as elsewhere, it’s targeted marketing that is most effective. But you can’t target your market until they’ve been identified.

Direct mail is, for many NPOs, an essential part of building a substantial base for the donor pyramid. But, unless you’re a huge organization with high visibility and a great level of success, it’s not branding that has the major impact on the results of donor-acquisition mailings, it’s the list selection process, the roll-out mailings, the testing of copy, all the tried-and-tested elements of the traditional direct mail program.

And, such a program can’t be evaluated in its first six months of operation, its first year, or even two years. I’ve seen reference to three years as being a minimum period for such an evaluation – the usual period it takes to have a direct mail program begin to “show a profit” – not as the period it takes to market/establish a “brand.”

That stuff about counting hits in a search engine as a way of evaluating an NPO’s “brand recognition” is of minor significance. Don’t get me wrong, marketing is an important part of what we do in development, and “brand recognition” can be a big help – but it’s not essential to the relationship building that is so important to the development process.

No matter on what level or to what end we work with nonprofits, it wouldn’t hurt to have a broad based background in development, before trying to apply to nonprofit development/fundraising some accountant’s theory of ranges or medians or marketing statistics or hits on a search engine.

And, the way of getting an organization’s board to understand the process, and the expected results-over-time if proper procedure is followed, is not to send them to check out search engines, but to have them check out their contacts in the community.

Certainly, if the members of an NPO’s Board and/or its CEO don’t know what to look for when they hire a development person, they sure aren’t going to know how to evaluate that person or his/her programs.

If you’re looking for advice on measuring the effectiveness of development programs, remember, if you’re relying on information you’re getting on-line, everybody has opinions, but not everybody has the experience and expertise; and, “buzzwords do not equate to best practices.”

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or expanding your fundraising program?
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and we welcome your questions/problems.
They are likely to engender further discussion.
Look forward to hearing from you.
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If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, with appropriate attribution, could be the basis of a new posting.

A few months ago I received an inquiry from one of the national development publications. The writer was preparing to do a piece profiling some “…smart, brave organizations that have dispensed with a fundraising convention – tradition, “best practice”, sacred cow, what have you – and have been the better for it.

One of those conventions – practices or policies that groups do year after year just because that’s how it’s been done — is employing a formal or informal give-get type policy with their boards. I am hoping you might be able to point me to some examples where a nonprofit reconsidered its give-get policy. Do you know of a group that has dropped or changed theirs in recent years in favor of engaging their board in different ways?
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My immediate, almost knee-jerk response was that, “I hope the focus of the piece is on identifying the need and making “changes (only) if changes were warranted,” and that the piece encourages organizations to do serious evaluations on which to base their need for change !!”

My extended response was that “I must comment/observe that there seems to be a major bias against the Give-And-Get requirement, and I hope that there is not going to be a piece in your publication condemning the practice.

That you are looking for “smart/brave organizations” that have done away with G&G, that in the context of your question you labeled G&G “tradition, ‘best practice,’ sacred cow,” that “doing something the way it’s been done is counterproductive, all suggests that you are looking for information that will support that opinion … as opposed to writing a piece that might raise a question and suggest various answers.

In essence, the value/correctness of G&G, like any non-profit practice/activity, depends on the organization and circumstances.

I have, indeed, written a lot about what to do when G&G doesn’t/won’t/can’t work … for whatever reason; but, I’ve never dismissed the practice.

There are boards/organizations/leaderships/circumstances where G&G not only works, but works well.

Give-and-Get is an ideal — the idea that board members set an example by their giving, that they demonstrate their commitment, and that they share their passion with others … and get others to give.

Board members that don’t support their organizations (to whatever extent they are capable) and don’t “encourage” others to support those organizations (to whatever extent they are capable) send the wrong message to the “community.”

After all, if board members won’t support their own organizations — financially and/or passionately, why should anyone else ??

Almost immediately, I got a response to my note:
Surely conventional wisdom is sometimes – if not often — wise. The focus on the proposed article is to look at nonprofits that critically examine conventional wisdom (or, more directly, fundraising practices they’ve been doing year after year simply because that’s how they’ve always done it) and bravely, in their particular circumstances, made changes if changes were warranted.

I was reassured/relieved !!

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Have you heard about
The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99-$4.99)
This posting is a sample of what’s addressed in the series.

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Have a comment or a question about starting, evaluating
or expanding your fundraising program?
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We’ve been posting these pieces for the last five years,
and we welcome your questions/problems.
They are likely to engender further discussion.
Look forward to hearing from you.
Comments & Questions
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If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, with appropriate attribution, could be the basis of a new posting.

Before anyone gets insulted, a “mature” nonprofit has a strategic plan, a development plan and, even, a marketing plan. They have a budget and they know where the money is coming from to fund that budget. An “immature” nonprofit, on the other hand, doesn’t….

In a recent email, the writer said that she had been approached by a 30-year-old local ministry, a home for pregnant unwed mothers, where they can learn parenting skills and/or contemplate adoption. And, all who work for the home are self-funded “missionaries.”

That being said, the home is the greatest secret in our area because they are all over-worked, spread very thinly, and have no time to do much in the context of development — networking or building ongoing “giving” relationships. They are, obviously, in great need of someone to do donor relations/development/fundraising.

Currently they have 3 small fundraiser type events each year. They don’t even have a database to share their message, nor do they have the time to get the message out to potential donors or the community as a whole.

The writer further said: My family is personally invested in this ministry, as we adopted a child through them. Having said all that, they asked if I would consider helping them (raise money) for a percentage. I know enough to know that is not good practice. As much as I would love to volunteer to assist them, I cannot. Could you provide any creative thoughts or ideas of how I could help make this a win-win for everyone?
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First, to react to the hot-button issue, it’s not only not a good practice, it is considered unethical for anyone to be compensated with a percentage of funds that they raise.

And, as I’ve often written, (three small) fundraiser events (each year) are OK for new organizations … as they build their database of event participants and donors, but a 30-year-old organization should be more “mature” in their operations. Those nonprofits that live from hand to mouth never know when the mouth may become to big for the hand, and reliance on fundraising events puts an organization’s health/future at risk.

Addressing their need for fundraising, if they ever want to be able to provide service to more people, they will probably have to hirie a development staff person … who would be compensated by salary. That staff person would have to bring development experience and expertise to the job, as it’s likely that s/he will not get much help from the “missionaries.”

The “missionaries” (or some other volunteer) should invest some time to identify and establish relationships with potential major donors, donors who could provide initial funding for that staff person.

It’s a simple answer to what I am sure is a serious problem, but if the organization is to grow, or even just survive, an investment must be made.

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Have you heard about
The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99-$4.99)
The ebook on “Major Gifts” would further address
the issues in this posting.

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Have a comment or a question about starting, evaluating
or expanding your fundraising program?
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We’ve been posting these pieces for the last five years,
and we welcome your questions/problems.
They are likely to engender further discussion.
Look forward to hearing from you.
Comments & Questions
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If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, with appropriate attribution, could be the basis of a new posting.

…that wants other people to fund their good idea !!

The email said: “We have started a NPO with the premise of completing a project to support a religious group. The project is a book we plan to market, with the profits going to that group. Our team consists of experts to write, design, produce and market the book, but we do not have any depth in fundraising.

This is a side project. We each have families to support, and we do not have the funds needed to get lift off.

All the articles we have read warn (against having a) fundraiser working on commission. No doubt we are not alone with our dilemma. What suggestions might you offer to help? Cost to get to production is $50K. Total cost, including marketing, is $250K.

This is a project at the point of now obtaining the funds from donors, investors, etc., so that this project can then be turned a finished product for sale. We have a prototype as part if our presentation.
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Not knowing the details of the situation, and whether the NPO is a 501(c)(3), I can only observe that a large percentage of new nonprofits fail because the people who start them don’t/can’t obtain and/or commit the funds needed.

A nonprofit organization is not a hobby. It takes serious commitment to do what needs to be done to survive/succeed. Just having a good idea and/or wanting to help is not enough. And, “if the people who have the idea aren’t willing or can’t support it, why should/would anyone else?”

And, a basic concept of fundraising is that people give to satisfy their own needs. If those needs coincide with those of the NPO, all the better, but that’s not always the case.

From what you said, it seems that the “book” itself could be a vehicle for raising money. What if there was a list, at the front of the book, of those who made it possible — the “major donors.”

And, rather than go into a discussion of what is a major gift and how to go about obtaining such (and at the risk of sounding self-serving), I suggest that “The Fundraising Series” of ebooks might help you clarify your thinking about raising money — one book in particular, “Major Gifts,” might help you determine the best direction for your fundraising efforts. (See the link below.)

I also remark upon the “lumping together” of investors and donors. The former expect a financial return on their money, the latter, shouldn’t….

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you heard about
The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99-$4.99)

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have a comment or a question about starting, evaluating
or expanding your fundraising program?
AskHank
=-=-=-=-=-=-=-=-=-=-=-=-=-=
We’ve been posting these pieces for the last five years,
and we welcome your questions/problems.
They are likely to engender further discussion.
Look forward to hearing from you.
Comments & Questions
=-=-=-=-=-=-=-=-=-=-=-=-=-=

If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, with appropriate attribution, could be the basis of a new posting.

We’ll be back in a couple of weeks, and we look forward to answering your questions and discussing your issues.

Thank you…

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you heard about
The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99-$4.99)

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have a comment or a question about starting, evaluating
or expanding your fundraising program?
AskHank
=-=-=-=-=-=-=-=-=-=-=-=-=-=
We’ve been posting these pieces for the last five years,
and we welcome your questions/problems.
They are likely to engender further discussion.
Look forward to hearing from you.
Comments & Questions
=-=-=-=-=-=-=-=-=-=-=-=-=-=

If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, anonymous or with appropriate attribution (your choice), could be the basis of a new posting.

The email said that the “new” organization has one major event every year, and their Executive Director appointed one of their new board members as the event chair for this year because she (the ED) was pretty much burned out from doing everything over the last two years.

She anticipates having to continue to play an active role because volunteer contributions and commitments are minimal. She indicated that last year the Event Chair held/conducted/attended no planning/progress meetings after the initial one; and, she only got involved in those activities that benefitted her own agenda which, in many cases, were at odds with the agenda/needs of the organization.

This year the board assigned the Event Chairmanship to their new board member who has a doctorate and experience on other boards and even is the Executive Director of one of them.

But, again, The ED is seeing the same behavior. A person that is promoting their own self interest and doing their own thing and not conducting matters as they should but as they see fit to align with their personal and professional agendas.

The ED says that she is baffled. “What should I do? Have an event chairperson and a vice chair? Should my role include always stepping in when others drop the ball. Should this be included in the bylaws. What is the appropriate action for an ED to take?”

After reading the above (which I have paraphrased and edited for brevity and so as not to identify the writer and her organization), I responded as follows:

Putting something in the By-Laws locks you into doing “it” that way. Having the board adopt a policy would put the requirements in writing, and would be changeable as required by circumstances.

But, whether in the By-Laws or as a Policy, it makes no difference if the person(s) responsible for planning and implementing an activity won’t follow the “guidelines.”

You indicate that your organization is new, which leads me to ask how the Board Members were recruited, and what is required of them?

You also mentioned that you appointed a Board Member to be Event Chair, and the question that comes to mind is how you, as the ED, gets to appoint/direct the Board or its members to do anything. That’s backward. The Board Directs the Executive Director … who is not a member of the Board.

So, back to your Event Chair…. It may be that your organization is so young that the people you have been choosing don’t feel obligated to put your organization’s needs first. They may see the Event Chair position only as a means to enhance their own visibility.

It also strikes me that recruiting Board Members and/or Event Chairs who hold positions with other nonprofits can set up a conflict of interest … with your interests lagging behind.

Your Event, at this early stage of your organization’s existence, may not be one of the activities that community members see as a must-attend. If it’s not one of the “highlights” of the nonprofit community, it won’t draw Chairs or Co-Chairs who will put the required energy and time into it.

Like any activity you want someone else to do, they have to want to do it, so you must determine what it is that would make your “Chair” adopt that frame of mind.

And, as to the duties of an Event Chair, typically the focus is on making a significant $ gift to support the event and getting others to do the same. An Event Chair should not have to deal with the logistics.

And, if the Board Members you are “asking” to make the Event happen don’t have the appropriate experience/skills/willingness to learn….!!

I seem to have raised more questions than I’ve answered, but the issues are part of the reality of successfully running an organization/event.

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you heard about
The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99-$4.99)
This posting is a sample of what’s addressed in the series.

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have a comment or a question about starting, evaluating
or expanding your fundraising program?
AskHank
=-=-=-=-=-=-=-=-=-=-=-=-=-=
We’ve been posting these pieces for the last five years,
and we welcome your questions/problems.
They are likely to engender further discussion.
Look forward to hearing from you.
Comments & Questions
=-=-=-=-=-=-=-=-=-=-=-=-=-=

If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, with appropriate attribution, could be the basis of a new posting.

Far too many small/new nonprofits think of fundraising in the context of an activity, but a Fundraising Plan is not the equivalent of “Let’s Put On A Play….”

For those of you who don’t recognize the Mickey Rooney reference, the phrase is the equivalent of “let’s do a fund-raiser,” the kind of thinking that does more to harm an organization than it does to help.

A fund-raiser is a stand-alone activity that tends to be a one-time event, an event that’s not part of a plan to ensure the continuation/survival of an organization.

Fund-raisers, where they may generate needed income in the short-term, tend not to lay the groundwork for future fundraising. They take a lot of work, work that can rarely be built upon for the future.

Of course, we do recognize that many small/new nonprofits don’t (yet) have a base of support that can be counted on over the long-term, and quick fixes are necessary.

But a fundraising/development plan, by definition, considers future financial needs. A Plan, when properly researched, constructed and followed, provides confidence and assurance that an organization will be able to continue to provide needed services to its constituents.

The basic focus of a Plan is the people who do-and-will care enough about what the organization does for them and for others that they are likely to become donors.

I emphasize the above as a reminder that people give to satisfy their own needs, not (necessarily) the needs of the organizations they support.

And, since 80% of all contributed funding from individuals is in the form of “major gifts,” the people on whom you should be focusing are those who are potential major donors.

So, the first step in the creation of a fundraising plan is the identification of those people who can help you the most … and are likely to do so, if properly motivated.

Please, do not just make up a list of everyone you think has lots of money. Limit your list to those to whom you have (or someone close to you has) or can get access. Then note how you have access, and “research” what it is that is of interest/meaning to each of those individuals.

The next step is to look (creatively) at what your organization does-or-can-do to make those people see you as a way to satisfy their needs – keeping in mind that it’s not always your mission, programs, activities and the people you serve that would engender their interest.

Once you have the above information, the creation of a Plan would involve how you are going to convince/educate those individuals that they can get what they need by supporting your organization.

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you heard about
The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99-$4.99)
This posting is a sample of what’s addressed in the series.

=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have a comment or a question about starting, evaluating
or expanding your fundraising program?
AskHank
=-=-=-=-=-=-=-=-=-=-=-=-=-=
We’ve been posting these pieces for the last five years,
and we welcome your questions/problems.
They are likely to engender further discussion.
Look forward to hearing from you.
Comments & Questions
=-=-=-=-=-=-=-=-=-=-=-=-=-=

If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, with appropriate attribution, could be the basis of a new posting.