Webinar: Building Social Capital to Increase Champions, Advocates & Donors

Join Bob Osborne on December 9th at 2:00 PM EST for an engaging webinar on building social capital.

Authors Shirley Sagawa and Deborah Jospin assert that social capital is our most valuable asset. Those organizations and institutions with a high level of social capital thrive in good and bad times, those that do not, continue to struggle. In this webinar, we define our terms, and learn practical advice for enhancing and maximizing social capital. You will leave the webinar with clear steps for increasing your social capital and strengthening your institution.

Click here to register: https://attendee.gotowebinar.com/register/2649097707904065794

Webinar: Ensuring a Successful Year-End Transition

Join Yolanda and Laurel on Monday, November 17th at 2:00pm EST for a one-hour webinar. During this webinar we will share tips and strategies for ending the year strong and getting the new year off to a powerful start.  We will cover topics that will help you, personally and professionally, take on this very hectic, and critical, time of year.  Click here to register now!

Ten Things Great Relationship Builders Do

Our goal is inspired, joyful, generous investments by our donors. We want them to be “all in.” Ambassadors, volunteers, providers of expertise and wisdom, networkers and connectors and of course stretch financial givers and fundraisers on our behalf.

To get there, we build relationships that are strong, life-long, productive for the organization and meaningful for the donors.

Here are ten things great relationship builders do:

1. Strengthen and use your emotional intelligence –
Emotional intelligence consists of our ability to monitor one’s own and other people’s emotions, to discriminate between different emotions and label them appropriately, and to use emotional information to guide thinking and behavior. It is critical for effective fundraising relationship building. In fact, it is critical for managing others and having strong and happy home and work relationships. What’s your EIQ? What steps are you taking to nurture and strengthen this essential competency?

2. Foster strategic conversations about mission, vision, and values
Our ability to ask strategic questions about attitudes, values, and feelings is more important than new information chitchat. We need to understand philanthropic motivations, passions, and interests. Who makes the decisions and how. How best to engage and communicate with our donors. Just as important, is to engage them in conversations about our mission, vision and values. We want them to TELL US about the impact we are having in the community, why our vision is the right one for the people and causes we serve, why we matter. Click here for our latest list of strategic questions.

3. Be thoughtful, intentional and strategic
People often ask me if our work is manipulative. Are we tricking people, pretending to care about them just to get their money? Yikes. No. Intentionality is respectful of both the organization that pays you and of the donors’ time. We are not in the friend-raising business. None of us should be. Not alumni relations or engagement specialists, or event planners. We are not developing friends; we are nurturing productive, meaningful and satisfying relationships. What are you trying to accomplish with this contact? How will you achieve it? That’s the job. It is a wonderful, noble profession. And an honor and privilege as a volunteer.

4. Be donor-centric by paying attention to both the little as well as the big things -Yes, every conversation and experience should be strategic and intentional with clear and measurable goals but we also need to remember the little things. Birthdays, anniversaries, favorite flowers, names of pets, children and grandchildren. Get that information into the database along with the big things. Capacity, inclination, giving readiness, engagement and stewardship preferences and so forth. And think like a donor. See your organization though donors’ eyes. Not through your silos, turf and needs.

5. Engage donors and potential donors and volunteers in meaningful and productive work
We know engagement leads to increased giving of time, treasure and talent. All the research supports this. I hate the expression, “We want our donors to feel engaged. No. We want them to be engaged. Engagement is two-way, it taps into personal capital (human, intellectual, network and financial), it has a think, feel and do component, it’s experiential, and mission infused. No one wants to be wanted only for his or her contacts and money. Do you have a suite of engagement opportunities that meet these criteria? Drop us a line if you want a list of potential engagement opportunities for your type of organization. mail@theosbornegroup.com

6. Steward all of the donors’ personal capital in tailored ways that demonstrate IMPACT
People give their time, energy, expertise and money because they want to make a difference. Stewardship includes thank you and recognition. But more importantly, it focuses on demonstrating IMPACT. Three, six, nine months after an investment and BEFORE the next solicitation or volunteer request, demonstrate the difference I made. Thank you is not enough. You lose points when you don’t say thank you. It is expected. What inspires greater investment is when you engage me, share with me, the difference I’ve made. You promised I would save or change a life. Now show me!

7. Inspire
Don’t offer donors a shopping list of giving and naming opportunities. Share the societal problems you are solving, the lives and conditions you are saving and changing. Lead with mission and vision. Who cares about your campaign goals, or your desire to be best in your market? Everyone, from the security guard to the admin to the mission staff to board of directors – everyone, has to be able to tell the story in a compelling and authentic manner. Work in this one! It is so important.

8. Think big 
“She won’t join our board. We’re small potatoes. Plus we’re a working board. Let’s just ask her to lend her name.” “Please join our board. I promise. You won’t have to do much.” “He doesn’t have the time to give. He’s too busy.” “We can’t compete with the big organizations. No sense in asking.” Turn around. Look at all the people standing behind you who are counting on you to achieve the mission, vision and work of the organization. They deserve the best board, the biggest inspiring ideas, and the most enthusiasm. Don’t let them down.

9. Believe and give
Work for, volunteer for organizations you care about deeply. Know the story. Meet the people you are helping. Have personal stories. Understand the cause. Care deeply, passionately. Be a generous investor. Generosity is not about wealth, it is about stretching, giving with a full heart, doing the very best you can.

10. Enjoy
Your energy and enthusiasm is catching!

A Case for the Fundamentals

About a year ago, I was complaining to my dad that my shoe laces kept coming untied. He told me, as unpatronizingly as possible, that it was because I wasn’t tying them right. You heard me, I wasn’t tying them right…

This got me thinking, how did this happen?shoe laces Did I learn incorrectly? Or, was I taught correctly and over the years my technique got sloppy? Did I start taking shortcuts? Whatever it was, something I considered to be so fundamental and automatic, I was doing wrong, and it was causing me a great deal of irritation.

How many other things is this true for, particularly when we think about the way we run our fund development operations. There are basics that we all learn at some point. These elements seem so fundamental that it almost seems silly asking about them, but over the years, I have seen a number of organizations that don’t have these things in place.
I know that we all want to talk about the latest trends and emerging strategies, but I’ve decided, in this post, to channel your middle school Phys Ed teacher and focus on the fundamentals.

I get it, it feels like a lot of work to stop what you’re doing and work on these things. Your days are busy, your to-do list is long enough. But how much time are you wasting by not having these fundamentals in place? How many missteps are you making? How can you know that you’re optimizing your return on investment or prioritizing your activities effectively? How much time did I waste stopping to retie my shoes? And, who knows what might have tripped me up while they were untied.

So, to help make sure you’re on track for success, here are five key fundamentals to make sure you have in place. Hopefully, you’ll be able to check off each item with confidence, but if you’re missing any of these elements or they are in need of updating, I encourage you to make their development a priority:

  • Vision for the Future: Your big, bold vision expresses what will be different in the world because your organization exists. Everyone in your organization should be able to articulate and share it with passion and conviction. Without a compelling vision you lack the inspiration required to motivate your investors to make transformational gifts.
  • Long-Range Strategic Plan: This plan maps out the next three to five years and how you will achieve your big, bold vision. Every organizations has things they would like to change, in their operations, systems and culture. But, change doesn’t happen just because we want it to, it happens through being intentional and strategic in our actions and your long-range strategic plan ensures that.
  • Annual Fund Development Plan: Your annual operating plan includes specific, actionable goals and objectives with clearly defined roles and deadlines. A strong plan is as critical to guiding your organization in focusing on the most critical strategies as it is in helping to inform decisions about what you won’t do. Make sure that once the plan has been developed you implement strategies for continually checking on progress and make course corrections.
  • Table of Gifts: Probably the key fundamental that is missing the most from development shops, the table of gifts is a powerful management tool. Imagine always knowing exactly how much you have raised to date, how much remains to goal, which gifts have been closed and how many new prospects need to be identified. Now, stop imagining and go put together your table of gifts.
  • Case for Support: Can everyone in your organization – staff, board members, volunteers – effectively convey your organization’s case? Your case for support is a single document that contains information on who you are, why you exist, what you’re trying to accomplish and why a donor should care. A strong, well-written case for support provides the foundation for all of your donor materials and marketing collateral and provides consistency and effectiveness in your messaging.

These elements might not be flashy, they aren’t built on the latest technologies and they aren’t trending on Twitter. However, they are guaranteed to have a significant impact on your development success. So, don’t put them off any further, because otherwise you may end up looking as foolish as, say an adult that doesn’t know how to tie their shoes properly.

Non-Profit Social Enterprise: What You Need to Know

Today we have a guest post from Laurel Rogal of Klamp & Associates, a law firm dedicated to representing charitable organizations.  She walks us through some of the do’s and don’ts of non-profit social enterprise.

Nonprofits are increasingly seeking alternatives to their traditional dependence on donations and grants. While such contributions are often essential sources of revenue, exclusive reliance on them may make organizations susceptible to unpredictable economic fluctuations.

Revenue-generating activities are an effective way to diversify and sustain income for charitable programs. For example, a homeless shelter may earn revenue by selling products made by its residents. An art museum may rent its building for private events such as weddings. A humanitarian organization may license its logo to a national retailer in exchange for a portion of sale proceeds.

If not done carefully, however, revenue-generating activities can have adverse tax consequences. First, the IRS may impose an “unrelated business income tax” (UBIT) on otherwise exempt organizations that regularly conduct a trade or business that is not substantially related to their charitable mission. Second, and more seriously, nonprofits that engage in a substantial amount of “commercial” activity can lose their tax-exempt status. This is because the IRS takes the binary view that activities are either charitable or commercial and considers commercial activity incompatible with 501(c)(3) status. While the IRS has broad discretion to determine which category an activity falls into, it often emphasizes (1) whether it competes with for-profit businesses and (2) whether it is priced at or above cost.

Nonprofits have three options to generate earned income without jeopardizing their exemption:

  • First, nonprofits can conduct revenue-generating activities that are charitable rather than commercial in nature. This means conducting the activity in a manner distinct from for-profit businesses. For example, a microfinance activity may be considered charitable rather than commercial if it takes more risk, offers more generous terms, and/or provides more support to borrowers than commercial lenders. Likewise, a publishing activity may be considered educational rather than commercial if the charity avoids paying royalties, sells the publication through its website rather than sales agents and paid distributors, and/or subsidizes the publication with donations.
  • Second, nonprofits can earn revenue that will generally be treated as an exception to the commerciality rules, such as (1) sponsorship income and (2) passive income. Sponsorship income is paid by businesses in exchange for acknowledgment as the charity’s official sponsor. Passive income includes rents, royalties, interest, and other income that accrues without ongoing activity by the charity. Please note that if either of these undertakings becomes vastly excessive in relation to the nonprofit’s actual charitable activities, the nonprofit may face IRS scrutiny and/or penalties.
  • Third, nonprofits can engage in revenue-generating activities that are an insubstantial portion of the organizations’ overall operations. The IRS has considerable discretion to determine whether an activity is substantial, since this term is not defined. In some cases, an activity that amounts to 10% of the charity’s revenue may be considered substantial. Please note that, unlike the previous two options, income from an insubstantial activity may be subject to UBIT.

Nonprofits should consider these tax issues when designing and implementing revenue-generating activities. Careful planning can protect the nonprofit while increasing its capacity to serve the public good.

August Major Gift Countdown

 

imagesLabor Day will be here before you know it. You have about 15 days to complete your August Major Gift Countdown to success.

  • Let your metrics lead the way. What worked well from January to now? Or from last June or August until now? Learn from your successes. What didn’t work? Why
    • Donor and volunteer retention for new donors, donors giving for two to four years, donors giving for five or more years
    • Upgrade rates
    • Yes rates (how many closed gifts compared to how many requested; what percentage of the requested amount actually given; how close to capacity)
  • Dust, re-tool, or create off your name-by-name table of gifts. Whom will you, a member of your team, your cadre of volunteers, solicit for a leadership or major gift between September and Thanksgiving? For how much? For what impact, outcome, purpose or project? What results are you anticipating?
  • Line up The Rights. Do you know, with confidence all of the Rights for each of the donors listed in your name-by-name table of gifts?
    • Right amount
    • Right purpose
    • Right solicitation team
    • Right donor participants
    • Right time
    • Right place
    • Right materials
  • Think through your strategic engagement. In order to INSPIRE a gift of that size, what strategic steps do you need to take BEFORE the solicitation conversation?
    • A strategic conversation to confirm on of the rights?
    • Contact with CEO, a mission staff member or volunteer?
    • An interactive tour
    • Stewardship of the last gift?
  • Whom on the list could you inspire to do more by connecting them to the impact of their last gift?
    • What stewardship have they received?
    • How long ago?
    • What can you do now that might inspire a joyous, generous yes?
  • Look at your strategic fundraising plan. Re-tool this year’s tactical plan. Are all your goals SMART?
    • Specific
    • Measurable
    • Attainable
    • Results-focused
    • Timed
  • Make sure your planned events are worth doing and you’ve positioned them for success.  Clear goals for new donors, donor retention, gift upgrades, think, feel and do messaging from credible message bearers and most important, your follow-up plan.
  • Are your volunteers ready? Do they have fresh and compelling stories to tell? Have you inspired them? Have you solicited and stewarded them?
  • Have you thanked and prepared your internal partners – your team, mission staff and c-suite staff who helped you, who you want to help you going forward? Do they have fresh and compelling stories to tell? Have you inspired them?
  • Have you taken care of you? Did you take time off? Can you get off the grid for Labor Day weekend? Did you, can you find time to power down? You’ll need all of your energy, enthusiasm, smarts, and savvy to ensure a major gift success this fall.

You can read more here.

Giving USA 2014 Spreecast

 

 

In this Spreecast, Laurel and Bob break down their first impressions of the new Giving USA statistics.  Giving levels are nearly back at pre-recession levels but what does it all mean?  Give Bob and Laurel a listen to find out!

Maya Angelou’s Lessons for Life & Nonprofits

Two weeks ago I got the news… I was sitting on my couch watching the morning news and there it was at the bottom of the screen, “Famed poet and author Maya Angelou died this morning in North Carolina. She was 86.”

Maya Angelou

I felt my heart stop and my thoughts rush through memories.  I could see Maya Angelou reciting poetry on our PBS station in the late 1970’s; her voice so powerful and enchanting. She seemed so regal and wise. I could remember coming of age in high school and believing “Phenomenal Woman that’s me!”  I could see the pride in my grandmother’s eyes when Dr. Angelou recited “On The Pulse Of Morning” at President Clinton’s innauguration and how that poem remained on my grandmother’s refrigerator until her death. I recalled how excited I was when I called Dr. Angelou’s home on behalf of the Alzheimer’s Association just three years ago and although I didn’t speak to her directly ; I was overwhelmed with excitement by just the mere thought of reaching Maya Angelou.

As I continue to reflect on how Dr. Angelou has impacted my life, I’d like to share a few life lessons from her that can be used in our personal and professional lives as we  serve the nonprofit world.

 “When You Know Better You Do Better”

maya-angelou

http://www.oprah.com/oprahs-lifeclass/The-Powerful-Lesson-Maya-Angelou-Taught-Oprah-Video

This is a lesson I continue to learn both personally and professionally.  I think the knowing is much easier than the doing. I know to exercise more but the doing it consistently is another story. I see how this lesson can apply to our work with donors. When we learn to focus on building donor relationships rather than rushing to a solicitation we find that our donors are more engaged and inspired to make generous and joyful gifts.

“I’ve Learned That People Will Forget What You Said, People Will Forget What You Did, But People Will Never Forget How You Made Them Feel.”

best-Maya-Angelou-Quotes-sayings-wise-people

As a parent and wife, I practice this every day although there are moments that my ego will allow me to forget.  When we fully embrace this as a way of being, not only does it enhance and deepen our personal relationships but it also takes our professional relationships to another level as well.

 “I Am A Woman Phenomenally. Phenomenal Woman That’s Me!”

phenomenal woman

http://www.oprah.com/own-super-soul-sunday/Listen-Dr-Maya-Angelou-Recites-Her-Poem-Phenomenal-Woman-Video

Like many women, I have found myself on occasions being the only woman in the room. There were times in these situations that I did not own my power and sat in these meetings without saying a word. Thanks to Dr. Angelou not only did I learn to embrace my power as a woman and take my seat at the table , I learned to encourage other women to do the same including my phenomenal 5 year old daughter.  Phenomenal  women also serve  as  leaders, philanthropists ,and volunteers for the causes we serve.

“When People Show You Who They Are- Believe Them”

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http://www.youtube.com/watch?v=BTiziwBhd54

This lesson calls for an “AMEN!”  How many times have we tried to change people or see only what we want to see? How about with donors? We want them to give this specific amount to this project because it’s the end of the fiscal year and we are praying that we make our goals. Yet, the donor’s actions are screaming” I am not interested in this project but I am interested in having an impact in another way.”  We can avoid this situation by asking the right questions and listening to our donors rather than seeing only what we want to see or hearing only what we want to hear.

 “My Mission In Life Is Not Merely To Survive, But To Thrive; And To Do So With Some Passion, Some Compassion, Some Humor, And Some Style.”

angelou_vert-bc26b934aaca10709208bdfc75d94df518351e83-s6-c30

This is truly how I want to live my life. It reflects my core values both personally and professionally. It takes the concept of “work/life” balance and makes it more tangible and practical. I’ll share more in a future blog.

Finally, I leave you with another Maya Angelou lesson- one that I do every single day, “Try to be a rainbow in someone’s cloud.”  Every day we have the opportunity to be a blessing in someone’s life both at home and in the workplace.  It’s just a matter of taking the opportunity to do so.

Thank you Dr. Angelou for your wisdom and love for humanity! You will be missed but your legacy lives on throughout the world and through those who serve the nonprofit world.

High Net Worth Individuals: Your Joyful, Generous & Inspired Donors

This post is reprinted from Karen’s turn as a guest blogger on Blackbaud’s blog site: www.npengage.com on April 14, 2014.

High Net Worth Individuals.

These are very special people.  They are part of the 5% or 10% of the population in terms of wealth, as well as members of giving in America – generous people of every age and financial capacity.  They have the powerful combination of wealth and a giving heart.

“ALL IN”

Last Summer I participated in a conference held by CASE (Council for Advancement and Support of Education).  A member of the faculty interviewed five philanthropists representing several age groups.

“How do you decide which organizations or institutions in which to invest?”

The answer from three out of the five began with, “I’m all in.”

They gave the most where they were deeply engaged and used all of their personal capital – human, intellectual, network and financial – for the good of the mission, vision and work.  HNWI give more where they can contribute the most including their ideas, talents and expertise.  In a 2010 study by Indiana University and Bank of America, HNWI donors reported giving on average $35,000 a year when not engaged and $124,000 when engaged.  That amount jumped to $158,000 when the organization tapped into the donors’ professional expertise.  Engaging HNWI in thoughtful, meaningful and productive ways resulting in them being “All In” garners mega gifts.

BIG IDEAS BEGET BIG GIFTS

Engagement, however, is not enough.  In another study, the researchers asked donors who make $150,000 or more about giving motivations.  Everyone, no matter how much they made, reported “wanting to make a difference.”  HNWI, however, emphasized “wanting to solve a societal problem.”  Whereas, those making under $150,000 “wanted to save or touch a life.”  To inspire big gifts from HNWI, we need big ideas that speak to solving a pressing societal problem, fixing or changing something that requires extraordinary investments.  Check out this TED talk by Simon Sinek.  Are you telling your story in a “why” and impact manner?

WOMEN DRIVE PHILANTHROPY

In the USA and 20 other countries, women are the philanthropic driving force.  In fact, 92% of HNWI men report that their spouses drive the amount given and the charities in which to invest.  Women report deep engagement as a giving motivator along with transparency and proof of impact and societal return on investment.  Forty-eight percent of HNWI women report wanting to share their philanthropic values with their children.  In fact, in the study mentioned earlier, the average gift from HNWI donors jumped to $244,000 when their children were part of philanthropic engagement and decision-maconnecting to impact 742x417 High Net Worth Individuals: Your Joyful, Generous and Inspired Donors king.

“Retention is the New Acquisition and Customer Service is the New Marketing” – Joe Connelly, WSJ

Within the ranks of donors who give small gifts are many HNWI.  They have the capacity to make life-changing gifts but send $25 or $100 contributions.  Twenty-two percent of NGOs don’t send thank you notes.  Thousands send thank you notes well past best practice times of 24 to 72 hours after receipt.  Thousands of NGOs either don’t track donor retention rates or don’t have a plan for turning them around so millions of dollars walk out the door and down the street to the organization that demonstrates care, appreciation and results.

WANT TO INSPIRE MORE NNWI?

Understanding that they give the most where they are deeply engaged means that it’s important for your organization to truly understand who they are as individuals and as donors.  High Net Worth Individuals are of every age, so their behaviors, preferences, and passions vary based on the generation they represent.

The learn more about generational giving trends, check out the Next Generation of American Giving report and video!