What Makes a Good Development Plan?

Screen Shot 2016-01-25 at 8.45.13 AMLast month, Laurel McCombs shared the importance of having a written development plan.  New studies suggest that having a development plan vs. not having a development plan can be the difference between success and failure.  So what makes a good development plan?

  1.   Know Your Goal – We’ve all heard the the maxim “if you don’t know where you are going, any road will take you there.”  This cliche remains critically true.  The first step in creating a development plan is knowing what you are trying to achieve.  For most of us this boils down to knowing our monetary goal for the time period in question.  But it might include other goals such as creating a major gift program, piloting a monthly giving program, increasing the average gift size by 10%, etc.  Once you know your goals, you can work backwards to determine what is required to achieve them.
  2. Have Measurable Goals, Objectives and Benchmarks – This is critical.  Without this, a plan isn’t a plan, it is merely a statement of intent.  Metrics and benchmarks let you know if you are on the path to achieving your goals and give you advance notice to adjust your strategies if you are not.  Better yet, having measurable objectives, goals and benchmarks force you to actually have strategies.  Without empirical data there is no way to know if your plan is a success.
  3. Have Action Steps for Achieving Your Goals – Another critical piece that turns what might otherwise be a statement of intent or a vision statement into an actual plan is to have clear steps outlined with clear deadlines and clearly delineated responsibility for achieving the goals.  In other words:  who, what and when?  Breaking down the plan into smaller steps with deadlines ensures that your plan will be implemented on a timeline that makes success possible.
  4. Have a Budget – It’s important to think about what you’ll need to effectively implement your plan and what it will cost as part of the creation of your plan.  Almost all serious change requires some expenditure of resources.  Understanding your costs up front will ensure that your plan has all the resources it needs to be successful.

There are many other elements that go into successful planning but these are the basics.  Overall, it’s important to be specific.  Avoid statements like “We will create a culture of philanthropy” without tying it to specific actions.  How will you achieve this culture?  Does it it involve training?  Will you implement a staff giving program?  Who will lead it?  How will you know if you’ve achieved your goal?  Why are you creating a culture of philanthropy in the first place?  The more specific you can be with metrics, timeframes, responsibility and cost the better off you will be.

To learn about planning in more detail sign up for our January 28th webinar: “Creating and Implementing an Effective Development Plan”.  The Osborne Group is also available to help you create your development plan.

Don’t Tell The Story Before You’ve Heard It

imagesDuring a recent client visit I was talking to the VP for Advancement about major gift strategy and the importance of truly understanding donor motivations and values.  She told me that when she meets with major donor prospects she tries to ask as many questions as she can, and in her words: “I try not to tell the story before I’ve heard it.”  What a great phrase!  So many times in an effort to come up with an effective cultivation strategy we make all kinds of assumptions and speculations about our donors.  Does any of the below sound familiar?

“Our research shows that she gives to the local Boys and Girls Club.  Children must be her biggest cause and we don’t work with children so she’s not a good prospect for us.”

“He’s the CEO of his own manufacturing company so he’ll probably want to work on the finance committee.”

“She created an endowed scholarship for her university.  Scholarships aren’t our main priority but it seems like that is what she likes to do.”

The reality is that in each of this cases, based on the information provided, we know very little about our donors in terms of their values, giving preferences, and how they might wish to engage and give to our own institution.  About ten years ago if you were able to look at my own giving history you’d see that I gave to quite a few organizations that helped people with disabilities.  Is this my main philanthropic priority?  Not really.  Did I give to those cause because a friend asked me to and it was his philanthropic priority?  Yes.

The only way to truly know what a donor’s priorities are, what their values are, and what their priorities are within your own institution is to ask the donor directly.

“I know that you are an ardent supporter of the Boys and Girls Club.  Are children a philanthropic priority for you?  What are your other priorities?”

“With your business background we’d love to have you involved with our finance committee but tell us, how do you best like to be engaged with the organizations you work with?  What was your best volunteer experience and why?”

“What was your motivation in donating an endowed scholarship to your university?”

Asking strategic questions will give you the most accurate information from which to design an effective cultivation strategy.  It will also result in a far more satisfying experience for your potential donor.  Finally, asking strategic questions will also set a tone of open dialogue and information sharing.

If you find that you are speculating and filling in information that is based on anything other than what you’ve heard directly from the donor, stop, realize that you don’t truly know the answer to the question you are asking, and make a point of asking it the next time you meet with your potential donor.  The results will be a far more interesting story than the one you’ve made up in your head.

 

Fundraising Tips and Ideas via @15SECFUNDRAISING

If you’re an Instagram user, please check out out new tips and ideas show on Instagram, @15SECFundraising.  Every week @bobosborne17 and guests give you fundraising ideas and tips via Instagram for running a strong fundraising program based on best practice and the latest in cutting edge ideas and technology.  You can also check out this blog for the latest installments.

 

 

 

The Foundation Screening List

Screen Shot 2015-02-13 at 11.24.46 AMI want to talk briefly about an important but underutilized development tool: the foundation screening list.  When we are first beginning our development careers everything we learn about foundations implies that they are pure meritocracies.  Have a good organization with a good project, write a good proposal and you’ll have as good a shot at getting funding as anyone else.  And to some extent this is true.  If you aren’t a well run organization and you don’t have a good project you probably won’t get funding.  But the reality is that you will be competing against many other meritorious organizations and not everyone one will get funded.  So, how do you stand out from the crowd?

The reality is the business of successful foundation funding is very much a “who you know” business.  I’m not saying that there is any sort of cronyism involved.  But I am saying that your ideas are more likely to be heard if you know the decision makers involved and have had a chance to talk over your work in detail.  I am saying that knowing trustees counts for a lot more than knowing program officers.  And I am saying that trustees and program officers knowing you and believing in your leadership and your ability to deliver on the promises of your proposal is critical.

So, a really valuable exercise for any organization is to know who you know on foundation boards and staffs.  How do we find this out?  The foundation screening list.

The foundation screening list is a packet of foundations (up to 25) likely to fund your organization based on their stated mission and its relevance to yours.  Each foundation gets it own page and on each page, triple or quadruple spaced, you’ll list every trustee and program officer.  If it is a large foundation then just list the relevant program officer.  You can see a sample layout here.

Now, what do we do with foundation screening list once we have one?  Sit down with your staff, your board and other volunteers, friends and anyone else willing to listen to you.  Ask them to flip through the list and see if they know anyone.  Ask them to write in the margins who they know and any important information about them.  Ask them if there is any foundation or anyone not on the list that they would be willing to contact.

Ask them if they’d be willing to help set up a meeting with anyone they know.

Over time you should get a pretty good catalog of who knows who and hopefully have people setting up meetings on your behalf.  Record everything in your database.

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!

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.

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.”

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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.

What’s On The Table?

Chicago-Community-Trust-On-The-Table-2014Monday I had dinner with 10,000 people. Well, not exactly..  But, I did participate with 10,000 other Chicago area citizens in a community-wide “town hall” called On The Table created by the Chicago Community Trust in celebration of their 99th anniversary.

The goal, according to Chicago Community Trust, CEO, Terry Mazany was to have more than 10,000 people “from all walks of life and socioeconomic circumstances” engage in conversation about the issues facing their communities and ideas to make their communities stronger.

“We hope the conversations “generate new ideas, inspire bold solutions and cultivate relationships and collaborations to improve communities region-wide,” said Mazany.

The trust is using social media to capture these ideas and will report back to the community through their website and an idea exchange in October. The trust is also planning to use ideas gathered from On The Table to inform future grantmaking decisions.

I love this idea and loved personally participating in an On The Table event sponsored by PADS of Lake County.  Our group leader, Joel Williams, Executive Director of PADS was funny and engaging. He provided a tasty barbecue to facilitate our outdoor conversation.  Afterwards, many of the participants agreed to continue these conversations on a monthly basis and hold one another accountable for the action steps they committed to during our visioning.

Here’s what we discussed:

  1. What does our community do well?
  2. What’s best about our community?
  3. What can we do better?
  4. What’s our community going to look like 5, 10, and 15 years from now?
  5. What’s the one thing you will do this week to make the above vision happen?

Non-profits can take this On The Table concept to facilitate meaningful conversations with community members, key stakeholders, donors, etc.  Not only does this provide a wonderful engagement opportunity for these groups but it will also provide your organization with new ideas and stronger relationships between your organization and these constituents. Here’s 10 tips to get started :

1)      Check out the On The Table website at onthetable2014.com

2)      Select a date to host these events (perhaps your founders day, a significant date in your organization’s history, or a special date related to the cause you serve. World Alzheimer’s Day is an example)

3)      Identify table hosts who would be willing to provide the location and food. You can also have them host a pot luck or brown bag lunch.  Note the number of table hosts would depend on the overall size you want your event to be. Keep in mind you want small intimate gatherings of no more than 15 people.

4)      Create a website for the event and opportunities for people to engage through social media before, during and after the event

5)      Tailor the above discussion questions to your organization

6)      Engage your local media before, during and after the event

7)      Get your board members involved

8)      Invite some of the people you serve to these events

9)      Develop a plan to collect and share the ideas generated at these events

10)   Report back to the attendees on the ideas you plan to implement and the progress you’ve made

So, what’s “On The Table”  for your organization? We’d love to know!