$20 MILLION - GOOD NEWS FOR THE ARTS

In one of the largest such gifts ever to the Los Angeles Music Center or any of its resident companies, Los Angeles philanthropist Glorya Kaufman donated $20 million to the Dance at the Music Center program, which was recently reported by The Los Angeles Times.

“It’s a record -- and, as far as we know, the largest gift to support dance ever in America,” Music Center President Stephen D. Rountree said.

She is the widow of Donald Bruce Kaufman, founder with Eli Broad of the home construction and financing firm Kaufman & Broad, now KB Homes.

“We have a terrible economy, and what happens first is that all the arts disappear,” Kaufman told The Times. “And to me, dance is one of the most important that there is.”

Kaufman added that she hoped the endowment would generate funds to expand the dance series’ educational programs funded by the Glorya Kaufman Dance Foundation.

For example, Russian companies that want to tour are planning two and three years out, and we haven’t had the ability to commit to them because we didn’t know about the funding. Now we have the funding to bring companies to Los Angeles that might have come to New York, but no one on the West Coast could have afforded to bring them here.

Kaufman’s grant is a catalyst for allowing the dance program to expand its educational and audience development efforts. Included on her list are technological experiments in live blogging -- perhaps inviting audience members backstage to talk with artists or production staff -- or group discussions at intermission via hand-held devices.

I think this is a great example of using a gift to make future plan to expand the current education and touring programs as well as a way to insure future success using technology! It's very encouraging in this rocky time to know that major gift patrons are still out there.

What Are You Doing for Your Stakeholders?

I've been reading other blogs and pr lately about the difficulty of creating an experience for our "customers" - our donors. Unlike the for profit world, which if they get people to touch it or try a product, they can usually make a sale.

I am going to tell you about a car dealer who offers innovative experiences and then about a nonprofit that's also creating an innovative experience.

On a plane flight recently, I met a fascinating man. He owns a number of car dealerships in the Midwest as well as a very large fleet business. To create a warm, wonderful experience for his customers he offers a free car wash, manicure and massage, - anytime. I think that creates two things - first, a way to get traffic into his "stores" where the relationship can be continued and a way for people to see the new "products." Second, these services create a "buzz" so that people talk about the dealerships with their friends.

On a similar note, a local church just announced a series of "networking" groups "Let's Connect." Their "Business Connection" is a collection of programs and services to help their congregants in this volatile business environment. In the challenging times that lay ahead The Business Connection connects congregants and their businesses with each other so they face the challenges together.

How does this help people see the "product"? The clergy are present, the meetings are in the church and the participants learn more about the "products." The congregants also meet with their fellow members on an ongoing basis, helping to build an relationship with each other (and with the church). Best of all these are emotional encounters.

I think the church, which is looking to hold onto its members and find donors for its capital campaign has found a great way to deliver wins to its stakeholders when they need them most!

How We Make Decisions

In a new book, "How We Decide," recently reviewed in the Los Angeles Times the author writes about how emotion and conscious reason combine.

Soren Kierkegaard and some philosophers acknowledged that there is a cognitive dimension to emotion, and later, that reason and emotion may not be entirely separate agencies. The author, Jonah Lehrer does not believe we should all operate like Mr. Spock, (a "hyper-rational" creature).

Interestingly, the author tells us that perfectly intelligent people are unable to make decisions, "even the most trivial ones, when their capacity for feelings are flattened as a result of brain disease or trauma."

According to the review, the book contains a heavy reliance on brain-imaging studies to see how the brain functions. The central point of the book is that by knowing how our minds work we can better use that part of our body. "Doubts are unpleasant turbulence to brains barreling toward conclusions. . . to improve our decision-making IQs we need to make an effort to nurture our inner skeptics."

Even more reason to season that relationship-building session with emotion and a sense of building trust!

Create an "experience"

I was talking to my brother this weekend about his experience in retail sales. He is an outside apparel rep and sells to smaller stores in large and small markets.

He believes in the personal approach and just returned from a sales swing through Arizona, Texas, Central and Northern California. I asked, "How's it going - is anyone buying?"

His answer, "They're buying from me because of the experience I create."

One owner told him she was very stressed because of the economy but my brother and his customer service people made her feel so good that his lines are some of the few she is currently buying.

Another store owner increased her order after sitting and talking to him about their kids!

My brother said he is laying the groundwork to reap more benefits when the economy rebounds. "I'm building and strengthening my relationships so that I will be on top of their list for the larger orders when the recession is over."

What can we learn? It's a famous quote "People will forget what you say. People will forget what you do, but they will never forget how you made them feel."

Innovative Leadership Development Program

Recently, I participated in a training for senior staff of nonprofits in Los Angeles who are the future CEO's of their organizations. This new initiative for the Center for Nonprofit Management, the Nonprofit Leadership Development Program (NLDP), was five full days of intensive, dynamic hands-on leadership development. Participants immediately focused on learning about their own leadership styles and strategies to become more effective as a leader and manager. During the first session they tackled difficult questions about the role of diversity in all aspects of our work and lives, and the often lonely role of the nonprofit executive director. The following four sessions covered a range of issues, including: managing organizational change, building a diverse and effective board, getting the most out of strategic planning and my session, how to build relationships for strategic partnerships and sustainability. I worked with Maura Harrington, Ph.D. and Chief Operating Officer of the Center who developed the curriculum. Her comment on the series,“We set out to provide sophisticated adult learning opportunities to increase the skills of individuals, but with the ultimate goal of boosting the ability of their organizations to serve communities. The enthusiasm, commitment and hard work of the participants underscores the need for such a program.” Nonprofit leaders face many challenges now and in the future; a diverse population and workforce; challenging economic times; motivating stakeholders and adapting to change. I was very honored to be asked to help these 22 bright young leaders prepare for the future. Their intensity and interest gave me confidence in t heir ability to lead our nonprofits.

Creating "Wins" for Your Stakeholders

Giving your stakeholders the wins that they want is the key to retention. I read a great article by the travel writer Peter Greenberg, How to Avoid Staying in a Filthy Hotel Room.

By the way, do you know the No. 1 dirtiest thing in a hotel room? I didn't - it's the remote control. (Take a box of disinfectant wipes with you and wipe it, the door knobs telephone, clock, etc.)

Peter talks about how a hotel makes him a loyal customer. It's all about anticipating his needs and following through to meet them. "It's called service. And there's a sure-fire way to determine if your hotel really is service-oriented. I call it my Diet Coke test.

Here’s how it works: Ask for any carbonated soft drink at a bar, and chances are it comes out of the “gun.” It's either too syrupy, overly carbonated or has an aftertaste of another brand of soda. It’s much better to be served a drink that comes from a can or a bottle.

Several years ago, I stayed in a Ritz-Carlton and asked the waitress for a can of Diet Coke. She insisted that it wasn’t possible because sodas were served from that gun dispenser. When I pointed out that there must be cans of Diet Coke in the vending machines and for room service, she grudgingly got me one.

Compare that to a freezing night I spent at a Best Western in Canada. When I ordered a can of Diet Coke at that hotel’s coffee shop, the waitress asked me to wait, put on her coat, crossed four lanes of highway traffic to the convenience store, and bought me a six-pack of soda. Which one of these hotels do you think is worth five stars in my book?"

I love this story. If you can deliver a personal "win" to a donor, Board Member or volunteer, you have earned their loyalty.

Here are some from a recent Advancing Philanthropy article:

Be creative! One ballet sends note cards with photos of the ballerina's holding cards with letters spelling "THANK YOU."

Make memories! Have the students at your school create special artwork, cook a meal, spend time with the donor at "story time."

We're conducting a contest to find the best "out of the box" win you've delivered to a stakeholder. Send me your ideas via our website. The contest closes soon and we're offering $50 gift cards to our winners!

There's More to Nonprofits than Mission Alone

I just returned from a great two days in Montgomery. Alabama. If anyone knows how to make you welcome, it's a bunch of Southerners. Thanks to the Nonprofit Resource Center of Alabama and the American Humanics program at Auburn University for hosting me.

Once again, I heard a familiar refrain, "We are trained to go out and talk about the mission."

I believe the mission is important but with all the competition these days, the advantage now goes to the fundraiser who can build a connection - an emotional connection that forges trust and a partnership.

I think the goBeyondhello training surprised the participants with the importance of the relationship in developing a prospective donor, securing the gift and ongoing cultivation. One fundraiser said to me, "No one ever talked to us that way. We were urged to focus on the work of the mission, not on us as an individual."

I think some people were actually shocked at the way we presented techniques to connect! One person said this gave her new ways to look at philanthropy. Another said he learned how to build relationships, not only with donors, but with Board members and volunteers. Many of our participants did not know they could build relationships with these other stakeholders.

We actually quantified how much the participants knew about their major stakeholders and even those who said they had a good relationship knew far less than they actually thought about the person when quizzed about personal details.

I'm pleased that the training was so valuable and I'm looking forward to the Nonprofit Resource Center of Alabama State Conference, Weds., March 25, Extreme Makeover" Rebuilding Our Nonprofits for Changing Times, in Birmingham.

Yumm, more barbecue!