My consulting helps clients build a "Partnership Council," a major gift group that reaches out, brings in new leadership and resources and raises between $500,000 and two million dollars through multi-year campaigns.
Most of you know that working with prominent business executives and community leaders can be a tricky union. They often have their own agenda and their own style. Here’s how two clients in two states - one with too much control and own with too little - solved this problem.
In Georgia, I have a go-getter client who has built his agency into a nationally-recognized leader. Now he's facing the end of a large private funding cycle. I helped him recruit leading businesspeople with resources throughout the country onto a Partnership Council. That was the goal.
However, instead of creating an orchestra with the Executive Director as the conductor, this turned into a one-man band. Despite capable staff and engaged leaders, the client made every appointment and every ask.
Finally, I pointed out that the goal was to build "Relationship Ambassadors" who could work "for and with" him. The Council members needed to be coached and encouraged to reach out to their networks and bring him in as needed. Now, there are dynamic Council Chairs working with him to set appointments, make asks and greatly expand the campaign’s reach to raise $500,000 in the first year.
In Ohio, my client is a social worker and the chair is a very dynamic, salesperson. Here, the chair made all the contacts and filled the Council but did not introduce the client to her contacts. To reach their goals, the project needed a strong guidance from the staff professional. I coached my client to take charge, reach out to her own contacts - a state legislator, reality television star, landlord – and begin to recruit Partnership Council members on her own.
She also was firm in her request to meet the Chair's contacts before the first Council meeting. Now the two of them are on the right track together to expand this Council, reach their leadership and financial goals to raise $650,000 in the first year together.
In both cases, trust, shared values and goals are helping the organization and their high-powered volunteers make beautiful music together.
Wednesday, February 15, 2012
Friday, January 27, 2012
What are the right and wrong ways to raise funds?
I recently read this post by Veronica Dagher, Dow Jones Newswire and there are some great ideas to remember here!
For some charities, the difference between success and failure may not have much to do with how they spend their money. It may, instead, have to do with how they ask for money. Here's what they charities should do—and what they shouldn't.
1. People Give to People - this is my favorite comment
Relationships are the "heart and soul" of fund raising, it's always about who is asking.
A charity is much more likely to have success when the person making the appeal has a relationship with the potential donor. What's more, when a charity receives an introduction to a potential donor from an existing supporter, even if it's solely through an email, the charity is automatically seen as more credible in the eyes of the potential donor. In addition, charities that take the time to cultivate relationships with existing donors year-round, not just when the charity needs money, are likely to be more successful in their appeals.
2. Show Me the Leadership
Fiscal integrity is a key characteristic of strong nonprofit leadership. Prospective donors need to know that the charity's CEO will ensure the responsible stewardship of donations made to support the mission. The charity needs to let the prospective donor know specifically how the money will be used, she says, and then, most of all, follow up and communicate with the donor on how the money was put to work. This is a great way to follow-up and build the relationship.
3. Teach, Don't Sell
An organization that teaches a donor about an issue has a much higher chance of success than one that just "pitches" a donor about the organization's cause. For example, an organization that educates a donor about what's working and not working in education reform will likely resonate more than a charity that solely tells the donor about the charity's work in education reform, he says. Similarly, giving donors a firsthand experience of an issue, say by inviting them to volunteer in the shelter the charity is asking them to support, can make a big difference.
4. Tap Their Passion
Charities that help donors uncover their values, passions, dreams and aspirations can be a breath of fresh air to donors who may not be used to being asked what they want. This is part of what I teach and it takes a good back-and forth and a willingness to share. A fund-raiser might ask a prospect questions such as, "When did you first learn about giving back?" or "If you had $1 million that you had to give way, what would you change or preserve in the world?"
The questions will help the charity uncover the underlying story of the donor and gets to the core of how and why the donor really wants to make a difference. Ideally, the donor will want to support the inquiring charity's cause. But either way, by asking these questions the charity will likely be remembered by the prospect as the one that cared about the donor, not just the donor's wallet.
5. Start Them Early
Ideally, a child, from a fairly young age, is learning from his or her parents and grandparents how to be a wise giver, says Nathan Dungan, a wealth coach and president of Share Save Spend, which is based in Minneapolis. While children are likely to learn about giving through their families or schools, charities that simplify their messages for kids and engage children using understandable pictures and videos can help build a future generation interested in philanthropy, he says.
Nonprofits that teach kids and their parents how even a small sum of money can make a huge difference for someone working their way out of poverty, for example, can resonate with a child from an early age, Mr. Dungan says.
On a site visit to a charity with a donor who was picking among three organizations to give $100,000, the charity's director did his best for an hour describing what the charity did and showed the prospect large photos of some of the organization's programs. But as they left, the donor's first question was, "What is it that they do there?" The charity's "catalog of 'We do this and we do that and at Thanksgiving we do this' " just confused the prospect.
2. Insulting the Donor
"Saying to a donor 'Your dad always funded us' rarely works."This can be insulting to donors, because it assumes something about them before even getting to know them. Charities risk alienating donors if they don't realize that a donor's personal choices will be shaped by that person's own experience, which might be very different from that of a parent or anyone else the charity may have worked with who knows that prospect.
Charities can also insult a prospect by asking for an inappropriate amount, says David Ratcliffe, managing director, institutional philanthropic sales, at U.S. Trust Corp. in New York. "Asking for too little is almost an insult, but by asking for too much, the donor could be taken aback and not want to give further," he says.
3. We're Desperate!
A plea of desperation may work with donors once, but it's not an effective long-term strategy. Repeated "emergency" requests will cause a charity to lose credibility with donors and few donors are looking to support what she calls a "sinking ship." .
4. Getting Complacent
An organization's current donor base can be the lifeblood of an organization. Ignoring that donor base or taking their donations for granted could prompt existing donors to stop giving, says Gillian Howell, private-philanthropy executive at Bank of America.
Just because an organization has received the same grant for the same amount for 10 years, it shouldn't assume it's going to get it automatically this year, says Ms. Howell. Not sending thank-you notes or timely gift receipts or failing to visit donors can hurt an organization's reputation with existing donors and prospects, she says.
5. Taking No for a Final Answer
Many nonprofits fail to think about how a donor who may not be able to support them this year might be able to contribute in the future, says Jane King, a Boston-based financial adviser. Nonprofits that hang up the phone before asking such prospects if they'd like to receive information about incorporating the charity into their estate plans or asking the prospects to volunteer, for example, could be missing an opportunity to receive money down the road, she says.
For some charities, the difference between success and failure may not have much to do with how they spend their money. It may, instead, have to do with how they ask for money. Here's what they charities should do—and what they shouldn't.
1. People Give to People - this is my favorite comment
Relationships are the "heart and soul" of fund raising, it's always about who is asking.
A charity is much more likely to have success when the person making the appeal has a relationship with the potential donor. What's more, when a charity receives an introduction to a potential donor from an existing supporter, even if it's solely through an email, the charity is automatically seen as more credible in the eyes of the potential donor. In addition, charities that take the time to cultivate relationships with existing donors year-round, not just when the charity needs money, are likely to be more successful in their appeals.
2. Show Me the Leadership
Fiscal integrity is a key characteristic of strong nonprofit leadership. Prospective donors need to know that the charity's CEO will ensure the responsible stewardship of donations made to support the mission. The charity needs to let the prospective donor know specifically how the money will be used, she says, and then, most of all, follow up and communicate with the donor on how the money was put to work. This is a great way to follow-up and build the relationship.
3. Teach, Don't Sell
An organization that teaches a donor about an issue has a much higher chance of success than one that just "pitches" a donor about the organization's cause. For example, an organization that educates a donor about what's working and not working in education reform will likely resonate more than a charity that solely tells the donor about the charity's work in education reform, he says. Similarly, giving donors a firsthand experience of an issue, say by inviting them to volunteer in the shelter the charity is asking them to support, can make a big difference.
4. Tap Their Passion
Charities that help donors uncover their values, passions, dreams and aspirations can be a breath of fresh air to donors who may not be used to being asked what they want. This is part of what I teach and it takes a good back-and forth and a willingness to share. A fund-raiser might ask a prospect questions such as, "When did you first learn about giving back?" or "If you had $1 million that you had to give way, what would you change or preserve in the world?"
The questions will help the charity uncover the underlying story of the donor and gets to the core of how and why the donor really wants to make a difference. Ideally, the donor will want to support the inquiring charity's cause. But either way, by asking these questions the charity will likely be remembered by the prospect as the one that cared about the donor, not just the donor's wallet.
5. Start Them Early
Ideally, a child, from a fairly young age, is learning from his or her parents and grandparents how to be a wise giver, says Nathan Dungan, a wealth coach and president of Share Save Spend, which is based in Minneapolis. While children are likely to learn about giving through their families or schools, charities that simplify their messages for kids and engage children using understandable pictures and videos can help build a future generation interested in philanthropy, he says.
Nonprofits that teach kids and their parents how even a small sum of money can make a huge difference for someone working their way out of poverty, for example, can resonate with a child from an early age, Mr. Dungan says.
The Wrong Way
1. Making a Confusing PitchOn a site visit to a charity with a donor who was picking among three organizations to give $100,000, the charity's director did his best for an hour describing what the charity did and showed the prospect large photos of some of the organization's programs. But as they left, the donor's first question was, "What is it that they do there?" The charity's "catalog of 'We do this and we do that and at Thanksgiving we do this' " just confused the prospect.
2. Insulting the Donor
"Saying to a donor 'Your dad always funded us' rarely works."This can be insulting to donors, because it assumes something about them before even getting to know them. Charities risk alienating donors if they don't realize that a donor's personal choices will be shaped by that person's own experience, which might be very different from that of a parent or anyone else the charity may have worked with who knows that prospect.
Charities can also insult a prospect by asking for an inappropriate amount, says David Ratcliffe, managing director, institutional philanthropic sales, at U.S. Trust Corp. in New York. "Asking for too little is almost an insult, but by asking for too much, the donor could be taken aback and not want to give further," he says.
3. We're Desperate!
A plea of desperation may work with donors once, but it's not an effective long-term strategy. Repeated "emergency" requests will cause a charity to lose credibility with donors and few donors are looking to support what she calls a "sinking ship." .
4. Getting Complacent
An organization's current donor base can be the lifeblood of an organization. Ignoring that donor base or taking their donations for granted could prompt existing donors to stop giving, says Gillian Howell, private-philanthropy executive at Bank of America.
Just because an organization has received the same grant for the same amount for 10 years, it shouldn't assume it's going to get it automatically this year, says Ms. Howell. Not sending thank-you notes or timely gift receipts or failing to visit donors can hurt an organization's reputation with existing donors and prospects, she says.
5. Taking No for a Final Answer
Many nonprofits fail to think about how a donor who may not be able to support them this year might be able to contribute in the future, says Jane King, a Boston-based financial adviser. Nonprofits that hang up the phone before asking such prospects if they'd like to receive information about incorporating the charity into their estate plans or asking the prospects to volunteer, for example, could be missing an opportunity to receive money down the road, she says.
Tuesday, January 3, 2012
Community Health Workers Learn From Patients
In a recent Los Angeles Times article, I read about America Bracho, who started Latino Health Access in Orange County 18 years ago. "She puts more emphasis on education, prevention and participation than medical care."
The California Endowment chose central Santa Ana last year as one of 14 underserved areas across the state to take part in a $1-billion program to focus on building healthy communities. Latino Health Access has more than 60 employees and hundreds more volunteers.Mario Marin, 55, learned about the organization 10 years ago after becoming a diabetic. He took free classes on how to manage the disease and soon began teaching them.
Before long, he had given up his job at a Carls Jr. and was working for Bracho's organization full time. Marin said his life is completely different from what it used to be, when he drank regularly, smoked and ate unhealthfully. "I have much experience to share," he said.
During a recent training session for community health workers at a hospital in south Orange County, each of the participants said their name, their favorite food and their hobby.
That, Bracho told the group, is how promotoras connect with their community. They don't develop relationships by asking about glucose readings, but rather by talking about what they have in common: favorite foods and hobbies.
And, she told them, promotoras must be open to learning from the people they are serving.
"Unlike a doctor or a lawyer, we help each other," she said. "It's reciprocal."
I think this is a great model from all medical personnel!
Friday, December 9, 2011
Are your funds going to stay the same?
Here's a new study from the 2011 Social Good Survey that suggests that donations to nonprofits next year will remain at 2011 levels.
I think many clients are not that optimistic - especially those who rely on private and public grants. One client with 98% of funds from government agencies for its housing programs is just now beginning to think about other fundraising venues!
The survey, which polled nearly 2,500 people in the U.S. and U.K., found that 72% of U.K. respondents and 65% of U.S. respondents say they expect their 2012 giving will remain the same as last year. All respondents in the 2011 Social Good Survey were older than 18 and had given at least $10 to charity in 2011.
This is certainly not catastrophic news considering that nearly $300 billion dollars were donated to charity in 2010 (2011 numbers are unavailable but likely similar).
What’s most surprising is that despite the potential giving plateau, respondents acknowledged that non-profits were the most effective change-makers. Of those surveyed, 12% of U.K. respondents and 18% of U.S. respondents said they plan to give more in 2012.
The largest motivator for giving is still a personal connection. When asked what would inspire a donation, the two highest responses were “a cause they believed in” (44% in the U.K., 35% in the U.S.) and a personal connection to the organizations (24% in the U.K., 18% in the U.S.).
Less than half of the total respondents felt that non-profits and charities do a good job of spending funds and managing operations. However, the study showed that the more a person knew about the non-profit world, the more positive they were about the efficacy of non-profits.
I think many clients are not that optimistic - especially those who rely on private and public grants. One client with 98% of funds from government agencies for its housing programs is just now beginning to think about other fundraising venues!
The survey, which polled nearly 2,500 people in the U.S. and U.K., found that 72% of U.K. respondents and 65% of U.S. respondents say they expect their 2012 giving will remain the same as last year. All respondents in the 2011 Social Good Survey were older than 18 and had given at least $10 to charity in 2011.
This is certainly not catastrophic news considering that nearly $300 billion dollars were donated to charity in 2010 (2011 numbers are unavailable but likely similar).
What’s most surprising is that despite the potential giving plateau, respondents acknowledged that non-profits were the most effective change-makers. Of those surveyed, 12% of U.K. respondents and 18% of U.S. respondents said they plan to give more in 2012.
The largest motivator for giving is still a personal connection. When asked what would inspire a donation, the two highest responses were “a cause they believed in” (44% in the U.K., 35% in the U.S.) and a personal connection to the organizations (24% in the U.K., 18% in the U.S.).
Less than half of the total respondents felt that non-profits and charities do a good job of spending funds and managing operations. However, the study showed that the more a person knew about the non-profit world, the more positive they were about the efficacy of non-profits.
Thursday, July 28, 2011
Worlds Colliding
I love it when worlds collide, as George used to say on Seinfeld.
The two worlds are both related to higher education. My son, who did not want to go to college after high school, attended community college. He was just accepted at a prestigious private university and I’m convinced it was the relationships he built with his professors that propelled him forward.
At his orientation, the welcome included advice from Making the Most of College by Professor Richard J. Light (Harvard University Press), based on a 10-year study of which factors were most likely to improve students’ learning and overall happiness.
- Get to know at least one faculty member reasonably well each semester, and get that faculty member to know you too. You’ll feel more connected to your school (and those letters of recommendation from faculty members will be helpful later on). For students at large schools or commuter campuses this may be more difficult, but it’s worth the effort.
How can your student do this? I suggest they visit each professor once or twice during office hours just to introduce themselves, show interest in the professor’s work, let them know a little about you and comment on the class.
The second world emerged from the Texas Community College Teachers Association this week where I conducted a two-day workshop on relationship-building. It turns out that some of the colleges are working on professional development courses to help professors connect with students on a more personal basis to improve the rate of student success!
They are also using relationship-building skills to improve their networking with community and business leaders, to build consensus among their colleagues and peers in the state to initiate new programs.
Thursday, May 12, 2011
Los Angeles feedback
I had a terrific time at The Center for Nonprofit Management's Executive Learning Program. Working with these energetic and committed leaders is very rewarding.
What did they feel were their biggest lessons about relationship fundraising?
Here are some comments:
"These are timeless life skills. Relationships create safety and trust and build emotion. Fulfillment of your destiny does not come in a moment, a month or a year, but over a lifetime."
"Marshall taught me how to evaluate my communication style and how to adapt to connect with others. I like to direct. Now, I'll tune into the others' style and communicate in the way they need."
"Just like the rest of our lives, life is all about relationships and now it's clear that in the nonprofit world, it's all about relationships! Learn to take time to build relationships, not because we want something, but it's the proper thing to do.
"I will get together with my Board and others just to know them better personally and for enjoyment!"
Thanks students, I couldn't have said it better myself!
What did they feel were their biggest lessons about relationship fundraising?
Here are some comments:
"These are timeless life skills. Relationships create safety and trust and build emotion. Fulfillment of your destiny does not come in a moment, a month or a year, but over a lifetime."
"Marshall taught me how to evaluate my communication style and how to adapt to connect with others. I like to direct. Now, I'll tune into the others' style and communicate in the way they need."
"Just like the rest of our lives, life is all about relationships and now it's clear that in the nonprofit world, it's all about relationships! Learn to take time to build relationships, not because we want something, but it's the proper thing to do.
"I will get together with my Board and others just to know them better personally and for enjoyment!"
Thanks students, I couldn't have said it better myself!
Wednesday, March 30, 2011
Take the pressure off your fundraising
I always like to hear how my readers use relationship-building techniques. One of the Boy Scouts of America development teams is using "Let's Have Lunch" principles to establish stronger connections in their community.
Here's what one of the development pros said of their new approach (building relationships). "It's liberating--I no longer feel pressure to walk out of first-time meetings with prospects with a tangible commitment for something. Instead, our focus now is to establish and build relationships, then engage the person meaningfully in the organization."
That's a great attitude. It is definitely a longer-term view but one that has much richer rewards. This approach will raise more money and, by forging a meaningful relationship, the donor will help them reach out to a bigger community of support.
Here's what one of the development pros said of their new approach (building relationships). "It's liberating--I no longer feel pressure to walk out of first-time meetings with prospects with a tangible commitment for something. Instead, our focus now is to establish and build relationships, then engage the person meaningfully in the organization."
That's a great attitude. It is definitely a longer-term view but one that has much richer rewards. This approach will raise more money and, by forging a meaningful relationship, the donor will help them reach out to a bigger community of support.
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