Colored pencils

What to Say When Your Donor Asks: How Much do you Spend on Overhead?

Colored pencils

I’ve been asked this question many times.

And not just by donors, but also by board members.

One of the ways I’ve answered is with my own questions:

  • If you could invest 20 cents to get a dollar, would you?
  • If you could invest 50 cents to get a dollar, would you?
  • If the dollar you got was old, wrinkly and ripped, would that matter to you?
  • If the dollar you got was mint, would it be worth it to you to pay a bit more?

Maybe the return on your invesment doesn’t matter to you. But maybe it does.  In the case of the wrinkly vs. mint dollar bill, it would matter a lot only if you’re a collector.  Change that to 50 cents to buy a bag of fresh, nutritious produce that will last a full week vs. 20 cents to buy a bag of old, rotten vegetables, and you begin to understand.

All things are not created equal.

That’s true, BIG TIME, for what folks consider ‘appropriate’ overhead.

There’s a time and a place for the red pencil, but most of the time another color will do a more effective job of generating the revenues you need to survive and thrive.

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Strategic Nonprofit Board Recruitment

Passion led us here photoWhen organizations aren’t raising as much money as they need, they’ll often tell me: “We need to recruit new board members.” This is very often true, but it’s only a piece of the puzzle as to why they’re not being more successful with fundraising.

So, if you’re about to embark on some board recruitment, I strongly encourage you to do a little soul searching first so you can embark on your quest strategically.

Not all organizations are the same. In my humble opinion, the best boards are fundraising boards. You may have a self-described “community board” you’d like to evolve to a fundraising board. Or you may be part of a bifurcated organization where there is more than one board with different purposes (e.g., governance; foundation; advocacy), so your part can perhaps afford to be less engaged with fundraising.

Most nonprofits need a board that is a fundraising engine.

For the purposes of this article, I’m going to assume you’re like most nonprofits. This may mean you believe you need to recruit ‘rich people.’ Or already experienced fundraisers. And since you don’t know any of the above, you make these common mistakes:

  1. You keep putting board recruitment and development on the back burner.
  2. You keep recruiting more folks exactly like the ones you already have.

Are you, inadvertently, holding yourself back?

You are if either of the two mistakes above sound like you.  Alas, this won’t help you resolve your fundraising conundrum.

So, let’s begin someplace else. Before beginning recruitment of the WHO for your board, begin by reminding yourself of the WHY.

Why Do You Need Board Members?

Certain skill sets may come to mind first. Such as “we need a lawyer.” But this is only a piece of what you’re looking for, and it’s not the most important piece. You could recruit the most famous lawyer in your community, but if they refuse to use those skills on your behalf – or if the area where you need help is not their area of expertise — this is meaningless.

Begin by answering this question:

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How to Craft a Nonprofit Board Orientation Strategy

Board orientationPlease don’t leave your new (or old for that matter) board members dangling!

Being a board member is not something we’re generally taught. In fact, it can be a complete mystery. Folks feel proud to have been recruited to join your board, and excited to begin their service, but… what happens next can mean the difference between a fulfilling experience and a disappointing one.

Do you have a board orientation strategy?

I don’t just mean in a dusty handbook somewhere on a shelf or in a file no one can find. I mean a vibrant orientation approach that kicks in the moment your board candidate says “yes” and, subsequently, as soon as they’re voted in by the full board.

Recruitment is just the tip of the iceberg of building an effective board.

It’s an important “tip,” don’t get me wrong. And all too often it’s handled poorly, leading to nothing but problems down the line. One of the most common complaints I hear from nonprofit staff is their board won’t help with fundraising. And the most common reason is the board members tell me: “I wasn’t told I’d have to help with fundraising,” or even worse “I was told I didn’t have to fundraise.

Don’t put yourself in the bait and switch mode.

From the get-go, explain to prospective board members what’s expected of them. All should be involved in some way in giving and getting. Once they sign on, solidify this agreement and their critical role as ambassadors, advocates and askers during the orientation process.

What to Include in a Board Member Orientation

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Time for Change sign

Borrow From Old MacDonald’s Farm to Interview for a Fundraising Job

Time for Change signDid you have a New Year’s resolution to look for a new development position? Or maybe to transition to work in the social benefit sector?

Have you put your job search off, wondering how your skills translate to what you’d really like to do?

We all have an inner critic telling us super unhelpful things like:

  • You’re not ready yet.
  • You need another course or degree.
  • You need more years of experience doing x, y, and/or z.
  • You need time to prepare.
  • You aren’t good at this (math/negotiating/technical/financial/digital/sales) stuff.
  • You aren’t as confident as other people.
  • You can’t take this leap; it’s too risky.

These are all variations on the theme of “you don’t have what it takes.”

Nonsense!

This is a totally irrational fear. Your inner critic is perhaps trying to protect and defend you, but actually this critic is holding you back by ruminating on the risks and worst-case scenarios. If you always play it “safe,” you’ll never grow.

Today, I’d like to tell you what it actually takes to be an effective fundraiser.

I hope you’ll see these innate qualities and strengths are things you have already. All you need to do is formulate them into a pitch format you can use when you interview for a job.

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Master chef creation

Master Chef vs. Line Cook: How Do You Prepare Your Nonprofit Fundraising Plan?

 

I learned something many decades ago that I’ve never forgotten.

When I learned this, it made me very happy.

You see, I was transitioning from an unhappy, short-lived career in law and wasn’t really sure about my next chapter.  Nonprofit work intrigued me, but… was it really a discipline or just something folks “winged?”  How would I know I could be successful?

There weren’t a lot of role models around at the time, and I really didn’t know any other fundraisers.  And there certainly were no articles to “google” online!

So, I enrolled in a week-long course offered by The Fundraising School, then led by founder Hank Rosso (who I call the “Daddy of Fundraising”), which is now part of the Lilly Family School of Philanthropy at Indiana University.

What a revelation! My eyes were opened to the very nature of fundraising. And the essential pre-conditions for fundraising success.

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Love letters

What’s Going On? What Can We Do?

Love lettersI had a fundraising post all ready to launch today, but I just couldn’t do it.

The world seems wildly out of whack right now.  I can’t pretend it’s business as usual.

I try to stay away from “politics,” because I know that’s not why you read my blog. However, we live in a political world. And so do our nonprofits, our staff, our volunteers, our donors and our clients. Simply put, politics is about making agreements between people so that they can live together in groups.

Nonprofits cannot seal themselves off in little bubbles, pretending what’s happening in the rest of the world doesn’t exist.

That’s why, during the pandemic, I encouraged you to talk about how events touch those who rely on you. It’s why, all the time, I encourage you to relate your work to what’s in the news and top of mind to donors. Be it hurricanes, fires, famine, drought, social unrest, war, civil liberties, mass shootings, homophobia, racism, sexism, bigotry, or anything else horrifying to body, mind, heart and soul.

If it’s something you’re thinking about, you can bet it’s something your constituents are thinking about.

If you don’t address it, you risk coming across as unimportant, blind, shallow or out of touch. Being relevant, and meaningful, means getting inside your supporters’ heads and knowing what’s important to them. What are they thinking? How are they feeling? In what way do the emotions they’re currently experiencing interact with your mission? How can they help you, and you help them?

I don’t know how you’ve been feeling, but many folks I’ve been talking to have mentioned anger, outrage and fear. Even those who are happy about one or two things are deeply concerned about other developments. And this holds true for both sides. Listen to Fox News, then listen to MSNBC.  You’ll hear equal doses of horror. The pendulum has been swinging wildly, back and forth, and the world seems madly out of whack.

What can the social benefit sector do to bring things back into balance?

I keep coming back to the Golden Rule. What if none of us ever did anything to anyone else we didn’t want them to do unto us? What if we only treated others as we would want to be treated? It seems so simple. So logical. So in everyone’s best interest.

What is it about the human animal that leads the same people who don’t want government to impose mask or vaccine mandates on them wanting to impose no abortion mandates on others? Or, from the other perspective, those who don’t want government telling them they can’t smoke pot wanting to tell others they can’t carry guns? All of this “I can impose, but you can’t” is nonsense from the perspective of “do unto others.” Yet, we persist.

The only way to make sense of these things is through an understanding of balance. We must strive toward philanthropy (translated as “love of humanity”).

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Colored pencils

What to Say When Your Donor Asks: How Much do you Spend on Overhead?

Colored pencils

I’ve been asked this question many times.

One of the ways I’ve answered is with my own questions:

  • If you could invest 20 cents to get a dollar, would you?
  • If you could invest 50 cents to get a dollar, would you?
  • If the dollar you got was old, wrinkly and ripped, would that matter to you?
  • If the dollar you got was mint, would it be worth it to you to pay a bit more?

Maybe the return on your invesment doesn’t matter to you. But maybe it does.  In the case of the wrinkly vs. mint dollar bill, it would matter a lot if you’re a collector.  Change that to 50 cents to buy a bag of fresh, nutritious produce that will last a full week vs. 20 cents to buy a bag of old, rotten vegetables, and you begin to understand.

All things are not created equal.

That’s true, in spades, for what folks consider ‘appropriate’ overhead.

Details