Category: Financing & Loans

(The following is an email exchange….)

I recently took over as President with the Xyz Dance Company. It is a very unorganized, 501(c)(3) volunteer (parents of dancers) organization.

I have recommend to the group we seek professional assistance to get “organized” with a development plan, create proper manuals to help keep us on track, and have sought out a local grant writer who is willing to assist us at an economical rate.

The first steps in getting organized, making sure that:
• Your bylaws clearly describe the role/function of the Board
• The Board includes people (not necessarily parents) who bring needed skills and perspectives to ensure effective and business-like functioning
• Your bylaws provide a method for evaluating Board Member performance
• Your Board Members are limited to two consecutive terms of three years
• Your number of board members is divisible by three — so that one-third of those members are up for election each year
• You have a detailed narrative of how your group came into being, what it has done, what it’s doing, what it’s planning on doing, and what future need$ will be
• You have a detailed budget that delineates all sources of income and all categories of expenses
• The grant writer, who should be able to help you put together the above narrative, is paid on a flat fee or an hourly basis … never commission/percentage
• You understand that foundation grants only account for 14% of all charitable dollars
• You understand that 80% of all charitable dollars come from individuals
• You understand that “fundraisers/events” may raise immediate dollars, but don’t result in long-term supporters
• You understand that other potential donors (including foundations, individuals and corporations) won’t be motivated to give to you if your Board Members and other parents have not set the giving example

That said, I truly feel, that because the organization is parent based, with a volunteer board, we simply are not able to put the time into fundraising that we need to. The parents find themselves transporting children, going to do other siblings activities, don’t have the comfort level to approach people for money and a host of other reasons we will fail to generate funds.

I am convinced to have a hired professional serve in the capacity, as a full time fundraiser is essential. A couple questions on that subject:

1. Do full time fundraisers work like a rep (i.e. – golf, sporting goods) where they may be working for more than one company at a time?

The phrase “full-time fundraiser” can be misleading. You have to be sure what it is that you want that person to do.

To hire an “outsider” to be your “fundraiser” raises ethical questions:
1. Do you have the cash on-hand to pay someone’s salary/benefits/taxes for an extended period … while they get up to speed?
2. Do you understand that it’s unethical for a person who raises funds for a nonprofit to be paid a commission/percentage?
3. Are you ready to explain, up front, to a potential donor that the person doing your fundraising is not a staff person?

2. What is the salary range for this type of person?

Keeping in mind that this would be a staff person, not a “rep” type, and depending what you want/expect from this person, in skills and performance, the salary would range from $40,000 to $100,000 – plus taxes & benefits.

But, you are no-where near ready to hire someone !!

3. Are there grants available that would cover or could be applied to the hiring of a full-time fundraiser? If so, where would one look to find such a grant?

Some foundations do fund the creation/support of such a staff position, but your organization must be ready to make effective use of that person. Keep in mind: Foundations typically provide initial funding for “projects.” They don’t want to adopt you.

Before you can even think about hiring a staff person, you must have a study done to determine your potential for fundraising — for sources of volunteer leadership and potential donors.

A properly done study would be an investment that would save you lots of money. Once you know what your fundraising potential might be, and who your potential leaders and donors might be, you can then design an effective fundraising program.

PLEASE NOTE: Do not think that if you hire a full-time fundraising person that s/he will raise all the money. An effective full- or part-time staff “development” person should be the organizer, trainer, and director of a fundraising program. S/he will need a cadre of volunteer leaders who will do the actual prospect cultivation and solicitation.
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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? 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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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.

There are about ten things your non-profit must do now in order to have a successful CFC campaign this fall – CFC campaigns run from Sept. 1 to Dec. 15 each year. I don’t have room to cover all ten in this post, but here are three of the most important, with the overarching theme being “Don’t run a stealth campaign”:

• The CFC Logo
Have you ever watched the Little League World Series on TV, played in Japan each year? Even with the signs on the outfield fences in Japanese, you can still recognize which companies are advertising because of their logos. In a similar vein, millions of potential federal donors recognize the Combined Federal Campaign logo, which is restricted to use by charities that are enrolled in the CFC.

The CFC logo is recognized worldwide by federal public servants wherever they are working, and for Federal employees, giving through the CFC is the most donor friendly way for them to give.

The CFC logo is a million dollar benefit provided free to CFC charities, which is another unique feature of workplace giving – the only type of non-profit fundraising that is subsidized, low-risk and high leverage.

If your non-profit is in the CFC, having the CFC logo and your code number on your home page will answer 85% of the questions your potential CFC donors might have. Get your logo in the format you need at: www.opm.gov/cfc/logos.

• Email Signature of all staff and board members
Especially during the solicitation period, the e-mail signatures of all staff and board members should include information about the workplace giving campaigns your non-profit participates in, including the CFC code number. It doesn’t need to be long; some variation of this will work:

The ABC Charity participates in the Combined Federal Campaign
with the CFC code: 00000, please ask your Federal friends to
support us in their agency’s CFC campaign this fall! Thanks very
much for your support in passing the word! To learn more about
our workplace giving campaigns, see www.homepage/CFC.org.

The point is, you don’t know who the recipients of your e-mail messages know, including information about the fact your non-profit participates in the CFC will help get the word out.

• Team Work – What Does it Really Mean?
If I call your organization and ask the question, “Are you in the CFC?” what answer will I get?

A.  Yes, we are, and our code number is 12345. Is there any
other way I can help you?

B.  I think so, but I’m not the person who handles it, and that
person’s not in yet, can I take a message?

C.  What’s the CFC?

Teamwork is hard, communication is hard, and the way to improve in this area is practice and this one of the benefits of workplace giving campaigns – they provide multiple opportunities for staff development for the non-profits that are smart enough to recognize the opportunities presented.

What are the existing connections between your supporters (donors, volunteers, staff, board members) and the Federal community?

Please note that “supporters” are not restricted to “donors.” You may very well have supporters who think well of your organization, but, for whatever reason, are not in a position to be donors at the present.

For you as a non-profit leader, have these actions taken place:
•  Have you asked your current supporters to help get the word out
about the fact that the organization that they care about is enrolled
in the CFC? Use your newsletter/email list to do so.

•  Does everyone on your staff (including volunteers) know that their
nonprofit is enrolled in the CFC and what your CFC code number is?

•  What does the front desk person say about the CFC? And don’t
call in with your own cell phone with caller ID, have a friend call,
ask the front desk person about the CFC, and report back on their
experience.

From the little quiz above, obviously Answer A is the one you want, but if you get one of the other responses, use it as an opportunity to improve the communication and teamwork actions in your non-profit.

As I said, there are ten actions that you must take during the campaign season to have a successful CFC campaign, and these three: CFC Logo and code number on the home page, CFC code number in all e-mail signatures, and using the CFC as a team work opportunity are important ones.
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During his 25-year career in the Federal sector, Bill Huddleston, The CFC Coach, served in many CFC roles. If you want to participate in the Combined Federal Campaign, maximize your nonprofit’s CFC revenues, or just ask a few questions, contact … Bill Huddleston
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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.

This is an update/revision of a posting that appeared in October, 2010

In my 30+ years as a fundraising consultant, I’ve seen corporate fundraising done by staff and/or volunteers, with a consultant advising/teaching/guiding; and, I’ve seen a “consultant” doing the fundraising from the corporations on behalf of the NPO. In both cases, it always created a conflict of interest if the consultant was to be compensated on a commission/percentage basis.

In the first circumstance, the relationship is between the NPO and the corporation. The consultant may make the initial contact with the corporation, but the discussions are between the NPO family and the corporate people. In this case, the consultant actually consults. S/he is paid for her/his time/effort/expertise, with no consideration as to how much money the NPO may or may not raise.

In the second scenario, the relationships are between the “consultant” and the corporations, and the “consultant” does little or no consulting. In this case, the “consultant’s” role is to “show” the corporation how their support of the NPO will benefit that corporation. Again, the “consultant” should be compensated on the basis of the time/effort/expertise that goes into making “it” happen, not on a percentage/commission basis.

Many corporations (especially those who are frequently asked to support NPOs) are aware of the “rule*” (see * below) prohibiting commission/percentage compensation for those raising money for a non-profit organization. Many of those corporations agree with and accept that concept. Some don’t!! Some don’t care!! The question is whether you want to risk appearing ignorant of “accepted practice” and/or seeming not to care??

There is, of course, a third option, one in which the consultant/event planner working with you on your organization’s event has the relationships, the ability and the willingness to contact and solicit corporations to get them to buy tables or sponsorships. Where this person is usually paid a flat fee for their event planning work, s/he may (not) take an additional fee for this work … and may simply use the opportunity to cement their own relationships with the nonprofit organization and the corporation(s).

Always remember, once the consultant/planner has created the relationships for you with the corporations, then it is up to you, the NPO, to follow up to use this introduction wisely. Depending on others to continue to garner corporate support for you shows a lack of “how-to” in developing relationships/partnerships. The consultant who brings the corporations to the table (so to speak!) has given you a gift. What you do with it is up to you.

(*Conflict-of-Interest issues tend to become public information, and have hurt many nonprofits and their ability to raise money. It is, therefore, with good reason, that all of the major associations of nonprofit organizations and those of charitable-fundraising professionals accept and endorse this “rule.”)
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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.

Don’t forget your proposal graphics! They can be, and usually are, important elements of persuasion. But too many grant proposals have poor graphics, too few graphics, or none at all.

Graphics are Important
Graphics are far more than entertaining diversions. We know, from considerable research on the subject, that good proposal graphics (appropriately integrated with the text) can help reviewers more easily understand what you are proposing.

The cliché, that a picture says a thousand words, is correct … for visual AND non-visual learners.

As Mike Parkinson and Colleen Jolly (of the 24 Hour Company) have pointed out, your graphics must be interesting enough to hold your reviewers’ attention and yet must be clear and simple enough to communicate your major points.

According to various studies, good graphics:
• Take 40 percent less time than text to explain complex ideas.
• Improve retention 38 percent.
• Communicate up to 60,000 times faster than text alone.
• Improve learning 200 percent.

Kinds of Graphics to use to help convey your major points:
   Bridge graphics are pictures of a metaphor that depicts the connection between actions, concepts, or entities. It can be used to show transitions, operational flow, and systems integration.
   Chain graphics depict linked sections, concepts, or entities by literally using chains to show the connection between different organizations or activities.
   Conveyor belt graphics are pictures of a repeatable linear process. It effectively shows forward movement as a series of steps.
   Dashboard graphics present multiple metrics in one consolidated picture. It presents a holistic view of related information.

To give you an idea … two commonly used graphics are the Light Bulb, for innovation, and the Lock, for security.

For Further Help, these web sites and books have many ideas for good proposal graphics:
   www.BizGraphicsOnDemand.com
   www.images.google.com
   www.visual-literacy.org
   Edward R. Tufte, The Visual Display of Quantitative Information (2001)
   Edward R. Tufte, Visual Explanations (1998)
   Edward R. Tufte, Envisioning Information (1990)
   Michael T. Parkinson, Billion Dollar Graphics: 40 Powerful Ways to Show your Ideas (2006)

Good visuals help reviewers picture your text and good pictures promote improved comprehension and persuasion. Devise good icons, symbols, and pictures for your win themes and you will help reviewers better understand, and more easily accept, the essence of your grant proposal.
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Dr. Jayme Sokolow, founder and president of The Development Source, Inc.,
helps nonprofit organizations develop successful proposals to government agencies.
Contact Jayme Sokolow.
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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.

The following, provoked by questions to this blog, is a revision of a posting from April, 2010.

Development is the process of creating and enhancing relationships with (potential) donors … hopefully leading to the solicitation/acquisition of (contributed) income.

“Development” directly references the relationship between the donor and the nonprofit, and how that relationship satisfies the needs of both.

It is, ideally, the introduction of (prospective) donors to a nonprofit organization, building their interest in the organization’s mission/services, developing in them a passion for the mission and a commitment to the organization’s future, getting them to make-the-gift, and maintaining the relationship so that they will continue to support the mission … and continue to give.

Development may also have little-or-nothing to do with the NPO’s mission, and may focus primarily on the needs of the donor. If, for example, the (potential) donor has no interest in the organization, but wants/needs to see his/her name on (a wing of or the outside of) a building, the relationship that is built is designed to get the donor to want his/her name on your organization’s building.

Very often, a person may give because they want to please the person who is “asking,” or because they want to see their name listed alongside the names of recognizable personalities. That is fundraising, but not necessarily “development.”

“Fundraising” only addresses the “income generation” aspect of the process. It can include fee for services, product sales and so-called “fundraisers,” as well as the generation of contributed income not based on a relationship between the donor and the organization.

People give to satisfy their own needs. If the (relationship building) process results in having an individual want to give … feeling good about giving because his/her needs are being satisfied, and having that giving advance the organization’s mission and services, that’s a desired result of the development process.
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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.

My previous posts provided a lot of introductory information on foundation and corporate grants, organizational readiness, grant management, and … on Step One of the four-step grantsmanship process: Prospecting For Foundation Funding.

I begin, now, to addresses the second step in the process: Grant Cultivation.

For those familiar with non-profit fundraising, grant cultivation is very similar to that for individual donors. According to majorgivingnow.org, “cultivation consists of all the relationship-building steps that lead to donorship – and cultivation continues as part of a stewardship program once gifts are made. Through cultivation, you learn more about donors, and they learn more about you.”

That same thinking can be applied to cultivating foundation and corporate grants.

The following are some of the most effective methods I have found to cultivate grants from foundations and corporations:

1. Involve your Board Members. As I wrote in my May 17, 2012 post, What Is Your Grant Win Rate? What Should It Be?, “the connections that your board members have in the community are vitally important.”

After identifying new prospects for foundation and corporate grants, you should always share the names of their leadership (the foundation manager and trustees and the officers and directors of the corporation) with your NPO’s Executive Director and Board Members. Ask if anyone has a personal or professional relationship with any of those “leaders,” and if they would be comfortable signing a letter of inquiry and/or making a phone call.

These relationships help get your letter read and your phone call answered … and they help you win the grant. Some statistics from a recent client will help illustrate this point: over the course of one year, proposals to new prospects with a board connection were funded at a 75% rate and those without a board connection were funded at 35%. That’s quite a difference !!

2. Start with a Letter of Inquiry/Intent. When seeking grants from new prospects, I recommend that you, first, send a two-page letter of inquiry (sometimes called a letter of intent) to the appropriate foundation or corporate “leader.”

LOIs are a very important cultivation tool, and they should be written by you, the Grants Manager, in first person.

One of your Board Members could sign them, if that person has a connection to the “leadership” that you are cultivating for new grant funding. Alternatively, your Executive Director could sign them, and should reference the “connection” your Board Member has with their leadership. These letters should be specific to your NPO AND to the foundation from which you are seeking funding.

The basic components include:
  •  Introduction. If your Board Member is signing the letter, include information on how long he/she has served on the Board, and why he/she believes in your NPO. If your Executive Director is signing the letter, indicate that your connected Board Member suggested that your NPO apply to this foundation for grant funding.
  •  Background. Include the mission and history of your organization, a description of who you serve, and a brief summary of your major programs/services.
  •  Pitch 2 – 3 Ideas. Include a short paragraph for each of two or three programs or projects that you think might be a good fit for funding from this foundation. Briefly describe why you think these programs/projects are a good fit with the foundation’s mission, and the impact their funding will have on the people you serve.
  •  Conclusion. Indicate that you will follow-up by phone to discuss your NPO’s fit for funding within the current priorities of their foundation.
  •  Include a Photo. I usually include a photo with a caption on page one. This helps to personalize the letter, and to connect the foundation manager/trustee to your service population or your mission.

Be aware that some foundations require that you submit an LOI as part of their application process. In these cases, follow their specific LOI guidelines.

You might also want to refer to the Foundation Center’s website (http://foundationcenter.org/getstarted/faqs/html/loi.html) where they provide “resources with actual letters of inquiry or templates.”

Part 2 of Cultivating The Grantor (on November 1st) will outline three additional methods that I have found to be effective in cultivating grants from foundations and corporations.
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Lynn deLearie Consulting, LLC, helps nonprofit organizations develop, enhance and expand grants programs, and helps them secure funding from foundations and corporations. Contact Lynn deLearie.
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Have you seen The Fundraising Series of ebooks ??
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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.

(A Pair of Postings from two of this blog’s regular contributors)

Fund-Raisers are not Friend-Raisers
by Tony Poderis.

I have always held that special event fund-raisers must/should be just that, fund-raisers, not friend-raisers. There may be exceptions, but we cannot count on the exception for successful fund-raising.

To my way of thinking, it is poor fund-raising strategy to put on an event with the expectation of having attendees become good prospects for future giving. This is not very likely when those in attendance often have little real interest in the organization’s mission; are attending an event held at a site other than the organization’s location; and are eating, drinking, and socializing.

Relationship building is further limited by the added distractions of cocktailing, dining, auctions, other spending opportunities, and entertainment. Even if informational handouts are supplied, a video of the organization’s services is shown, or some other display of what the organization does is presented, the exposure is fleeting at best and has little lasting impact.

Just two weeks ago my wife and I were at a non-profit’s Gala to inaugurate its new performing home. While eagerly waiting to dig into the tantalizing dinner, two or three of the organization’s officials took center stage to tell us how the new facility came about, who made it possible, and the added value of what the organization will bring to the community. We were seated at a table for ten, and I can state with no exaggeration that there was a steady, though perhaps rude, rolling of twenty eyes as the “education” and “cultivation” efforts of the evening droned on and on.

From the hard lessons we learned over time with our orchestra’s fund-raising events, we finally realized that event attendees were there only or mainly to make social and business contact and have a good time. They just wanted to have fun.
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Every Event Should Be An Opportunity….
by Natalie Shear

It is not often that I feel compelled to respond to one of my fellow bloggers, but Tony struck a nerve.

Based on my 30+ years as an Event Planner, I must disagree with the idea that it is “a poor fund-raising strategy to put on an event with the expectation of having attendees become good prospects for future giving.” To the contrary !!

As with anything else, the right event at the right time with the right motivation can be a good way to gain prospects for the future. Keep in mind that people love events and love to socialize and network as part of the “in crowd,” not to mention having their pictures taken with some of the other “important” guests … strong reasons for spending another night at another fundraiser!

Obviously an event is not the best place for a long-winded spiel about the nonprofit, but it is and should be the place for a very brief, cleverly produced video that makes the audience sit up and take notice – it’s a lot harder to ignore a visual presentation than to ignore a speaker.

And, forget the handouts, unless you like to see your materials strewn across the ballroom floor when the place has emptied-out. There are, however, more effective alternatives to handouts — alternatives designed to make an impression well after the “tantalizing” dinner memory is long gone.

You might, for example, send a photo of the person (prospect) with some of the other guests along with a lovely note thanking them for attending. That little warm and fuzzy photo can be followed up at a later date with an invite to a briefing, or to a small, intimate gathering at someone’s home to hear a speaker, or meet an author, or enjoy a special dinner prepared by a new chef in town!

Look around your community and see what you can offer that is new and different and enables you to woo the prospects.

And, while you’re wooing, your development staff is busy researching each likely prospect to learn about these people’s interests, what other groups they support and, most important, what-or-who got them to attend your event.

In other words, any event can be a cultivation opportunity and just because people are having fun does not mean they have no interest in a bit of education (presented appropriately of course). If the exposure time at the event is fleeting, then you had best find a way to making a lasting impact even after the fun is over.

Just don’t lose the opportunity to identify and cultivate potential new constituents.

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You can learn more about Tony, and find many in-depth fundraising articles on his website: Raise-Funds.com
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To read about Natalie, check out her website: Natalie Shear Associates, and take a look at Natalie’s ebook on Special Events
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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 one-or-both of the authors of this posting.

Much has been written about the core beliefs of great managers and CEOs. Many of those core beliefs can be directly applied to grant proposal managers. There are eight fundamental core beliefs that I think are highly appropriate for nonprofit grant proposal managers to follow.

1. Proposals are an ecosystem, not a battlefield
Developing a grant proposal is not like going to war, and it need not involve conflict and aggravation. Great proposal managers build teams that thrive on cooperation and partnerships, even with competitors. To build such relationships, treat your proposal team members like colleagues. Provide them with direction and support and help them succeed.

2. An organization is a community, not a machine
Members of proposal teams are professionals, not cogs in some impersonal machine. Great proposal managers help inspire team members to help each other and their organization, not treat each other as expendable parts. Proposal development often involves long hours, tough deadlines, and nighttime and weekend work. Within your hectic schedule, be sensitive to team members’ schedule and workload.

3. Management is primarily a form of service, not control
Proposal teams work best when they are not micro-managed. Great grant proposal managers set a general direction, coach and mentor provide team members with needed resources, and help them succeed. When your teammates become stars, you become a star. You can coach and mentor your team by:
• Holding a kick-off meeting to start the proposal effort.
• Conducting a training session at the beginning of the proposal effort to orient everyone, provide direction, and set expectations.
• Having frequent meetings with the team to check progress and provide advice.
• Frequently meeting one-on-one with team members to review their work and provide advice.
• Communicating face-to-face as often as possible.
• Adding “mentoring” and “coaching” to your job description.

4. Proposal team members are colleagues, not children
Team members are not immature, inferior beings who cannot be trusted. Great proposal managers treat their colleagues with the respect due professionals and adults. Proposal development often is a frustrating process, but that is no excuse to yell, belittle, and undermine your colleagues. Patience and restraint will go a long way to building collegial relationships.

5. Motivation comes from something positive, not from fear
Good proposal managers do not strike fear in their teams or manage through threats. Instead, they inspire the team to perform well by forging a culture that thrives on cooperation, support, the sharing of knowledge and resources, and that expects great things from everyone.

6. Change leads to growth, not pain
Change is inevitable and need not be upsetting or threatening. Great grant proposal managers help their proposal teams make the kinds of changes that lead to the submission of winning proposals.

7. IT offers empowerment, not control
IT can be used to monitor proposal teams, but that is not an important function. Great proposal managers use technology to help teammates achieve their goals and build better relationships.

8. Work should be enjoyable, not just toil
Great grant proposal managers try to help teammates work in ways that will lead to satisfaction and even enjoyment. Find ways to enjoy your work and achieve balance in your life. When was the last time you took a long walk in a beautiful park and smelled the flowers?

Great grant proposal managers have great core beliefs, which they use to develop highly competitive proposals. Having a sterling vision is not enough, but successful proposal managers must find ways to use the workplace, their organizations, and team dynamics to accomplish an ambitious goal. And what could be more ambitious than developing a winning grant proposal from scratch?
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Dr. Jayme Sokolow, founder and president of The Development Source, Inc.,
helps nonprofit organizations develop successful proposals to government agencies.
Contact Jayme Sokolow.
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Have you seen The Fundraising Series of ebooks ??
=-=-=-=-=-=-=-=-=-=-=-=-=-=
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.

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.

In my post on August 28^th, I discussed financial readiness and outlined the organizational financial records and project financial information that you will need to have ready in order to submit a grant application.

This post provides three additional points for you to consider before launching a corporate and/or foundation grants program at your NPO:

The “25% Rule”
The most common measure of nonprofit organizational efficiency is the percentage of total expenses going to program costs. Charity Navigator, GuideStar, other non-profit ranking services, the federal government and foundations definitely evaluate this percentage.

According to Charity Navigator, 7 out of 10 charities that they evaluated spent at least 75% of their budget on programs and services, and 9 out of 10 spent at least 65%.

The Combined Federal Campaign requires that participating organizations certify that their combined fundraising and administrative costs constitute no more than 25 percent of the organizations’ total revenues. (Note that this calculation differs from that used by Charity Navigator because it is a ratio of admin + fundraising costs divided by total revenue instead of total expense.)

Most foundations expect a similar if not greater level of organizational efficiency. I recently ran across a foundation that requires, “administrative and fundraising expenses of less than 20% of the total expenses of the organization.”

So, if your NPO is spending at least 65% (ideally 75% … or more) of total expenses on program costs, then you might want to consider starting a grants program to secure income from foundations.

Program Readiness
In addition to having your financial house in order, you will also need to have well-established program (or project) goals, activities and metrics in order to seek grant funding.

The Missouri Common Grant Application, referenced in my last post, downloadable here, provides a good example of what will be required. Specifically:
•   What are your project goals?
•   What activities do you intend to engage in or provide to achieve these goals?
Please provide an in-depth description of the activities/services, including:
1) how much, 2) how often, 3) how long activities/services will be provided
•   What are the anticipated short and long-term measurable outcomes that would be
achieved by this grant?
•   What is your organization’s evaluation process?
•   How do you plan to track and measure the effectiveness of your project?

These goals, activities and metrics need to be included in your grant applications, and if funded, outcomes will need to be included in your grant reports.

Capacity
My final point for you to consider before launching a grants program at your NPO is capacity, both within your program staff and development staff.

Are your program staff members capable of implementing the program according to the plan outlined your grant application? Can they collect and document the outcomes that will need to be included in grant reports?

Do you have the capacity in your development department to work closely with your program staff to define program goals, activities and metrics, and compile results for grant reports? Do you have the time to adequately steward your foundation donors with ongoing communications, meetings, tours, etc.? If you spend time on a grants program, would you lose individual donors because you don’t have the time to steward them appropriately?

And, of course, I strongly recommend that you review these points with your development team. Then, if everyone is on board, you can launch your grant program; and, be sure to check back here for my continuing series on effective grant programs!
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Lynn deLearie Consulting, LLC, helps nonprofit organizations develop, enhance and expand grants programs, and helps them secure funding from foundations and corporations. Contact Lynn deLearie.
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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.