Breakout Fundraising - A Guide to Growing Operational Giving

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$BREAKOUT FUNDRAISING A Guide to Growing Operational Giving

M I S S I O N A D V A N C E M E N T

Copyright © 2015 | MISSION ADVANCEMENTA l l R i g h t s R e s e r v e d .

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Mission Advancement

““ Engaging donors and growing fundraising dollars are the lifeblood of your organization.„

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BREAKOUT FUNDRAISING: A GUIDE TO GROWING OPERATIONAL GIVING

Contents

Introduction: 5Arrested Development 10Are we “normal???” 13“Picture Perfect” 17Understanding the world of your donors 23Understanding the role of your board 27Keep the “RockStar!!!” 31“Counseling Session” 35Take the LEAP 38

BREAKOUT FUNDRAISING A Guide to growing Operational Giving


1BREAKOUT FUNDRAISING

INTRODUCTIONnumber one




IntroductionThe board meeting

“I’m going to now hand it off to our development director to talk about next year’s fundraising goals” says the board chair, looking up from the meeting agenda. “So tell us, what kind of growth can we expect this next year?” And with that, the room is quiet and all eyes are on you.

It’s the question you’ve been anticipating and quietly dreading since last year’s “spirited” discussion on the annual fundraising goal. That discussion went downhill quickly when you suggested that maybe the school should consolidate its fundraising efforts and reduce the amount of magazines, raffle tickets and potted cheese students are asked to sell each year. Note to self: don’t mess with powerful band boosters or the girls ping pong coach when they’re sitting on your board!

“What kind of growth can we expect this year?” It’s the question that has kept you up at night for the past month thinking of ways to navigate the same minefield that you tiptoe through seemingly every time the discussion turns to development. It’s the question that every organizational leader, board member and staffer wrestles with at one point or another.

You clear your throat and begin reciting your prepared speech, (which is really a repackaged version of last year’s speech.) You know what they’re wanting to hear—more sponsors for the golf scramble. More auction items at the fall festival. A more impressive keynote speaker for the gala. Inside, you’re doing the math, calculating how many hours it takes you to pull off each event. Guess you’ll only catch two games of your sons tee ball season again…if you’re lucky.




As you continue talking, the body language in the room shifts from anticipation to uneasiness to annoyance. Finally, the treasurer interrupts you. “Yes, but looking at these budget numbers…a 5% increase in fundraising isn’t going to work.” She takes off her readers for effect. “I was hoping that maybe we were going to hear something new.” Around the room you catch the subtle nod of other board members.

Your heart rate quickens and your hands start sweating. Immediately you find yourself on the defensive. Don’t they have any idea how many hours I put in every week? Don’t they know how many t-ball games and ballet rehearsals I’ve missed trying to pull off these events? No wonder the

last development director didn’t last two years!

You gather yourself and calmly start talking in familiar industry jargon. You use phrases like “donor fatigue,” “economic realities” and “competing events.” You even bring up lingering effects from the failed capital campaign of three years ago as reasons why families simply aren’t giving like they used to.

The discussion lasts another 10 minutes as you listen to arguments for changing the location of the golf scramble to only serving ice tea and lemonade at the gala to launching another capital campaign that will focus on the school’s debt issues. Inevitably some board member brings up a fundraiser his church’s youth group did to raise money for that mission trip to Honduras. When the dust settles, everyone’s opinion on fundraising has been heard, nothing has fundamentally changed except you are tasked with growing the annual fund by 15% by redoubling your

efforts on the same tired events that led to this scenario in the first place.

Driving home, you find yourself thinking a familiar thought: What was the name of that job placement website again?

Yes, this book is for YOU!




Okay so maybe you’re not a development director giving a report to your school’s board. Maybe you’re an Executive Director looking for ways to take the lid off your organization’s fundraising efforts. Perhaps you’re a board member who is looking to go beyond the golf scramble and bring some fresh, creative fundraising ideas to your organization. Or maybe you’re the volunteer tasked with sealing the 1000 envelopes that will hold the annual fund appeal letter and hoping to find some nuggets that will relieve your salivary glands! Regardless of your title or role, there are two assumptions that I’m making on the outset of our time together that are most certainly true:

If you’re reading this e-book, it’s probably because you’re involved in a nonprofit mission that you care deeply about. And every nonprofit

regardless of size, structure or mission has to work with these folks called “donors” in funding their unique mission. In fact, engaging donors and growing fundraising dollars are the lifeblood of your organization. Fundraising is likely a vital part of your organization’s lexicon and growing those dollars is a priority for you, your staff, your board and those you serve.

If truth #1 is correct, then you are probably not realizing your maximum fundraising potential and are likely leaving dollars on the

table each year that could directly impact your mission. Not just a few dollars either…but massive amounts of dollars. How do I know this? Well, I work with nonprofits around the country of all shapes and sizes and I can honestly tell you that very few do it well and even fewer reach anything close to what might be considered maximum potential.

That should excite you! In fact, that statement should be the best news you’ve read all day! If Truth #2 is correct (and I believe that it is) then there’s a TON of latent potential in your fundraising efforts just waiting to be tapped. Realized. Unleashed.

A word of warning though: you’re never going to realize this potential by thinking in terms of doing more of what you’ve already been doing. In fact, every organization is perfectly built to achieve the results it’s getting. Think about that statement for a moment. This means that if you’re dissatisfied with the results you’ve been experiencing, you can’t experience change by simply doubling down on the same action steps that got you where you are. It will take a fundamental change in how you approach fundraising before you can break out of a rut. This is critical because when organizations get stuck in a fundraising rut, the results are significant and lingering. Missions go underfunded. Programs get cut. Staff members look for other jobs. Community impact goes unrealized. All of these are scenarios that can be avoided with some practical teaching and a deeper understanding of how to move donors past transactional giving

Assumption #1

Assumption #2




into transformational giving.

That’s what this e-book is designed to do. It’s by no means an exhaustive compendium of development industry terms and philosophy. Rather, its aim is to ignite your imagination, introduce some fresh concepts, encourage you and ultimately give you highly practical insight on ways to take your organization’s fundraising to the next level.

So for just a few moments, let’s move beyond golf scrambles, direct mail pieces and silent auctions. Let’s rethink our approach to fundraising. If you’re ready, then let’s put the 9-iron back in the bag, stop cutting on that rubbery chicken and undercooked asparagus and for heaven’s sake quit licking those annual fund envelopes. There’s a brave new world out there, one in which expectations are exceeded, projects are funded and missions are boldly advanced. So grab your highlighter (digital of course), strap in and get ready to experience some break out fundraising!



Arrested DEvelopment

number two




By engaging donors relationally rather than transactionally, we position our organization to experience its full potential both in terms of financial giving and stakeholder interaction.

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2. Arrested DevelopmentConfronting stagnation in your fundraising efforts

So what does ‘Break Out’ fundraising look like exactly???

Well the place to start is by taking the old magnifying glass to what you’re already doing. Let me begin by asking a couple of key questions:

Do you find yourself doing the same tired events, trying to learn social media, and rushing out direct mail? Are you ready to try something new that will realize tremendous growth?

Well of course you are or you wouldn’t be reading this ebook!

The answer to these questions, I’m convinced, lies not in another chicken dinner but in a relationship-based strategy that will engage your donors and leaders in new and innovative ways. By engaging donors relationally rather than transactionally, we position our organization to experience its full potential both in terms of financial giving and stakeholder interaction. The result: development efforts that bust through stagnation and allow your organization to breathe the rarified air of passionate giving and exceeded expectations.

I’ve worked in the field of development now for 31 years, and it still amazes me when people think that significant growth can come from doing the gala or the golf tournament a little bit better. Sure, it’s possible to eke out another few thousand here and there, but the question you truly need to be asking is, “How can I double annual fundraising revenue?” I assure you that the answer is not in any event – current or future.




Nearly every development/advancement office is plagued with similar challenges:

1. A fundraising plan and calendar that is too event heavy and lacking in a major and principal gifts strategy to acquire new donors.

2. A board that wants and expects significant growth in funding.

3. A high rate of turnover in development staff – partly due to the conflict between the first two challenges.

Here is all of my experience and wisdom summed up into one statement: Significant growth for any nonprofit organization will only come from a deliberate focus and effort to build deep and reciprocal relationships with donors, with a goal of achieving capacity giving.

There. That’s it in a nutshell. Pretty profound, huh?

There are simply no tricks, gimmicks or shortcuts to replace the art of personally engaging your key support base in the mission of your nonprofit. That said, most organizations struggle with how to get this started. Board members often speculate by asking, “How hard can it be?” Development staff often think the board expects them to already know and, therefore, are reluctant to ask for help. The truth is, it is not as easy as you might think to build a solid relationship-based fundraising strategy.

The most common error is thinking the answer resides solely in the development office. A successful relationship-based major gifts strategy first requires the support of other offices within your nonprofit, including finance, human resources, and the mission staff (faculty, program

directors, etc.). Secondly, the board must support the strategy and some board members must be willing to work beside staff as impassioned volunteers. Finally, the strategy must have a sound plan with realistic expectations.

But how do we define “realistic expectations”? I’m glad you asked! Let’s talk more about expectations.



Are we “normal???”number three




3. Are we “normal???” Healthy expectations for annual gift growth

It’s November (or late Fall)… for many organizations this is the time to wrap up the fiscal year, call it what it is (hopefully, there is something you can call a success), and get on with preparing for next fiscal year.

For many development staff members, this is a discouraging time of year, largely because we are fatigued from working night and day to eke out every last dollar to hit this year’s goal. This is the time of year when we wrestle with our consciences over how hard to push some donors to give, knowing they don’t really care when our fiscal year ends.

Do we go for the gift this year, knowing we may be risking the donor’s support next year? And, even if we hit our goal this year, our fundraising progress soon resets to zero, and our goal next year is most likely larger than last.

Is there no end to our Board’s expectations of growth? Is there a limit to how much we can grow funding in the future?

Sorry to be so negative, but these are the real challenges and sources of stress we development professionals face every year trying to meet the expectations of our bosses and Boards. We all want to succeed in achieving our annual goals and we all want to please those to whom we are accountable. But sometimes, for good reasons, we can’t.

Help your boss understand the challenges that you deal with each year…that because he or she wants more doesn’t mean it will be so.

“




Before you begin scouring the want ads for a new career, take some time to remember your premise and regain your perspective. You are most likely part of a small band of fundraisers in your organization who are greatly outnumbered by the program staff or faculty. Your goal is to design and execute a plan to raise an amount of money that you likely had no part in determining. You remind yourself that these are the financial resources required to maintain and grow the mission (and fund jobs like yours!) Furthermore, you and your small development team are likely the only ones who represent the other mission of your nonprofit - the mission to serve the funding base. You and your team are likely the voice of your donors; you’re the only advocate they have!

Almost no one else outside of the development staff (Board included) understands this important concept or provides much in the way of help to fulfill your mission of serving the donors - they are all immersed in the programmatic mission. Yet, without you and your development colleagues’ efforts, the entire organization comes to a screeching halt!

No money. No nonprofit. End of game.

You see, no one starts a nonprofit out of a desire to raise money. Rather, it’s the desire to serve a noble mission that drives people to start social service agencies, private schools, civic and cultural institutions, arts organizations, etc. Fundraising is always an afterthought and sometimes seen as the ‘necessary evil’ needed in order to fund the noble mission.

So, take a minute to pat yourself on the back, just in case the rest of the organization forgets to. Imagine what the year could be like if you actually had a hand in setting the financial goals and other metrics for the development office. There could be some logic behind the goals, based on potential, that are reasonable and attainable.

So, how do we deal with the continual expectation of growth? Let me say right here and now that I am not suggesting you should stage a protest demanding that your goals be lowered. That might result in you needing to look in the want ads. Here is some friendly advice that is at least worth considering: it’s hard to grow funding year after year. Help your boss understand the challenges that you deal with each year…that because he or she wants more doesn’t mean it will be so.

Imagine what the year could be like if you actually had a hand in setting the financial goals and other metrics for the development office.

“




Take some time to think through what you believe your goals should be. While you will always have a financial goal and have little control over its size, consider adding other metrics over which you do have control - things like the number of donor visits you will personally make, managing development expenses within the allotted budget, and the number of new donors you will add to the donor base. This allows you to always have some victories, even if the financial goal is not achieved.

I can’t promise that your boss and Board will instantly change their way of viewing the development office, but perhaps over time they will develop more reasonable expectations. In the meantime, you did a good job this year, even if you didn’t exceed the goal.



Picture Perfectnumber four




A vital characteristic of a perfect development office is a balance of activities that span the full range of relationships with a seamless transition from one to the next.

“

4. “Picture Perfect” Understanding the role of your development office

Okay I realize that it’s a mighty and bold statement to describe any development office as perfect—that would imply that there is no room for improvement. I believe that every development operation has potential for growth and improvement. So how is it possible to describe the perfect development office? Well, it is possible to describe the characteristics and traits that can move a development office closer to perfection.

And that is what this chapter is all about.

As I tackle the broad topic of the “perfect development office,” I am absolutely certain of one thing – every nonprofit in the nation, whether a young startup organization or a national treasure like Harvard University, desires to raise more money in order to grow its mission. And I believe there is always capacity for growth. Let’s examine one of the foundational issues that can move your development office closer to being perfect: activities.

Activity Centered…

A vital characteristic of a perfect development office is a balance of activities that span the full range of relationships with a seamless transition from one to the next. Meaning, there would be activities designed to:

1. Acquire new donors

2. Transition some donors from transactional giving to relational giving

3. Engage donors in deep relationship with the mission of the nonprofit.

A larger development operation might have more than three degrees of relational strategies, and the process works as naturally as it does in our personal lives when we meet someone new who might grow into a better friend over time.




Sadly, many development offices have the right development strategies but lack the alignment, systems, and incentives for donors to grow from one strategy to the next. In fact, many nonprofit leaders establish measurements that isolate strategies and work against the relational growth of donors.

A prime example of this is in the way most nonprofits manage event fundraising. Most nonprofits have some type of special event that likely fits into the early stages of donor relationship development. Chances are the event has a financial goal, and that goal probably increases a bit each year. After all, we have to make progress. Growing the goal seems fair and logical, right?

WRONG!

Under these circumstances, the development staff member is incentivized to fiercely hold on to every event donor and sponsor from the previous year in order to achieve this year’s

goal, regardless of what might be in the best interest of the donors or the nonprofit mission. In this case, a financial goal associated with the event isolates the donors and produces a turf war between the events staff and gift officers.

The solution to this common problem is to reevaluate the purpose of the event and consider measuring success in a different way. In the context of “the perfect development office,” a special event should be designed to do what is needed in the context of the broader development strategy – to acquire new donors – and perhaps be an activity that would fit the early stages of relationship development. An event is certainly not the right strategy to engage a significant donor in a deep and reciprocal relationship with the mission and leadership of the nonprofit.

So why not create goals for a special event that provide incentive for organizational leaders to do the right things? Consider the following event objectives:

1. Acquire a specific number of new donors

2. Retain a specific number and/or type of donor from last year

3. Transition (promote) a specific number of donors into a deeper relationship strategy




Drop the event financial goal – and while this might initially cause anarchy among the board, remember that the financial goal isn’t all that important in the broader development strategy. I recognize this requires a huge shift in thinking for most nonprofits. But if the event can be designed to function for what it truly is (one component of a larger development strategy) instead of a stand-alone initiative that separates donors from other relationship-building strategies, then an effective, growing, thriving development operation is possible. This is only one example of how the simple alignment of strategies can make a big difference.

A midlevel strategy…

Another key piece of breaking through in your organization’s fundraising efforts is that of a robust and intentional mid-level donor strategy. You may be wondering what a mid-level donor strategy is. My definition may surprise you and is almost certainly different than what most other sources teach.

Believe it or not, the term mid-level has nothing to do with the size of the gift – at least it shouldn’t. This is one of the most misunderstood terms and strategies in the development field. Most development professionals would describe this strategy as an effort to grow small donations into middle-sized donations. Wrong! And the root of this mistake is focusing too much on dollar signs and not enough on what we all should understand development to be about – relationships with real people.

All development offices have some type of entry-level or transactional giving strategy aimed at acquiring new donors. Historically, this has been done through direct mail and events. Today we utilize technology and social media tools to reach a younger generation with the same goal in mind: finding new donors. For some nonprofits, this mass marketing approach comprises their entire development plan.

Many development offices also have some type of major gifts strategy to complement the entry level giving strategy – giving donors some way to grow in deeper relationship with the nonprofit.




It only stands to reason that your most important and generous donors would be anchored with a personal relationship. This is what would be described as a relational strategy.

Organizations that have experienced success with a major gifts strategy often reach the conclusion that more major gifts work would yield greater results. They are correct. But the real challenge is navigating the right path to get there. This is usually where a mid-level strategy idea enters the picture – appropriately so. But the challenge of needing more major donors isn’t necessarily solved by creating middle-sized donors. Rather, the solution is the creation of a mid-level or transition strategy to connect the entry level and relational strategies.

A mid-level strategy should be aimed at transitioning a donor’s giving from impersonal to personal, or from transactional to relational. The entry-level strategies mentioned above are all impersonal and transactional styles of soliciting and receiving gifts. In other words, the direct

mail donor’s relationship is with the mailbox, the social media donor’s relationship is with the device on which they respond, the online donor’s relationship is with the website, etc. The relational or major gifts strategy is designed to take some key donors into the other end of the decision spectrum – highly relational decisions that are transformational in nature. This is the small group of individuals who should always be a priority for nonprofit leadership, and there is almost nothing you wouldn’t do to please these donors.

The purpose of a mid-level strategy is to connect the aforementioned two strategies. How do we do that – by transitioning the giving of a mass marketing donor to a relationship based donor. This is most effectively done through voice-to-voice (phone) or small group gatherings. It requires a dedicated team whose primary goal is to retain the giving of donors, but become the relational conduit through which the gifts are made.




In short, we want the donor to respond with their gift through a person, not to an e-blast or piece of mail. As with any development strategy, you will not succeed 100% of the time moving donors to a relationship. That’s okay. There will always be people who will not allow you to build a personal relationship. The goal of the mid-level strategy is to identify the transactional donors who are open to a relationship. And that is how a mid-level strategy can most effectively feed a relational, major gifts strategy. So remember – mid-level does not describe the size of the gift. It describes the nature of the relationship. The more you focus on the core of establishing and deepening relationships, the more integrity and success your development office will have.

In my experience, there are many elements that good development offices share in common. But a strong focus on these two elements—fundraising activities and mid-level donor engagement—are often neglected. Try incorporating these ideas into your organizations philosophy and you’ll soon be bragging about having a development office that can only be described as perfect!



Understanding the world of your donors

number five




For your largest and most important donors, consider creating a customized report on how you utilized their gifts.

“

5. Understanding the world of your donors I want to start this chapter with a deeply profound thought. Are you ready for this? Here it is: Your donors see you differently than you see yourself!

Okay, not you personally – but your development operation.

Let me ask you this, how many times last year did you ask them for money? Now, how many times did you communicate with them without asking for money? Do they understand how you utilized their giving last year? Do they know how much of what they gave made it to the mission?

These are just a few of the many questions donors ponder every day. Looking at your development operation through the eyes of your donors can be frightening, but it is absolutely necessary to understand how to meet and exceed their expectations.

My firm’s work with hundreds of nonprofit organizations of all types affords us theopportunity to look as an objective third party at the development office. Some of our work involves interacting with a sample of the donor base to understand firsthand how they view the development office. To say that most development staff members are shocked by the way their work is perceived is an understatement.




Here are a few common answers to the questions in the first paragraph.

• Private school parents are asked to give an average of 16 times per year.

• The vast majority of donors to all nonprofits are never contacted outside of requests for funds.

• Other than an annual report, there is very little reporting being done to donors on the use of their support – even at the major gift levels.

• And most donors would be shocked at how little of their gift actually makes it to the mission of the organization they’re supporting

Okay, enough of the gloom and doom. My apologies for beating up on the development office.

In spite of all of these issues, great work is being done to fund noble, vital missions everywhere. But it can always be improved. And taking the time to understand how you are viewed by your donors is a critical factor in making improvements.

Let’s first consider the issue of donors being asked too many times to give. It’s a healthy exercise for any development office to audit the number of requests that go out to each donor segment. If you are a school, you probably also have boosters and auxiliary organizations raising money. Although the development office is usually not responsible for those requests, you should know that the donor doesn’t understand the difference and perceives it all to be from the school.

For all development offices, it may be appropriate to rethink one or two of the appeals currently in your annual repertoire. Perhaps there is an opportunity to communicate a different, more strategic message that will make your other appeals more effective. And this helps to address the second issue of communicating occasionally without making a request.




For your largest and most important donors, consider creating a customized report on how you utilized their gifts. Even if they gave it with no preference on how it was to be used, they still might like to know how you used it. This is a great way to exceed their expectations.

Finally, help your donors to understand that your nonprofit is a good investment. We hear too often about organizations with excessive overhead. Let your donors know that you are managing their gifts wisely. Your donors must have complete trust and faith in this area if larger gifts are to come.

There is so much more to be learned by empathizing with your customer – that’s right, customer. As a development professional, your primary customer is the donor, and you (and your fellow staff members) are the only ones who think about their needs. Take the time to get to know them and learn what they like (and don’t like) about your organization. It may be hard to hear, but will help you improve.



Understanding the role of your board

number six




6. Understanding the role of your board “We are not a fundraising board!”

All too often I hear the statement in the opening quote from board members, suggesting that they didn’t sign up for any fundraising responsibilities. “We are an advisory board (or policy board, or governing board, or fill-in-the-blank board) . . . anything but a fundraising board.

Does that sound familiar?

Before I go too much further here, let me say that I am not trying to throw board members under the bus for not being crazy about fundraising. In fact, no normal person is crazy about fundraising— its popularity is somewhere between root canals and colonoscopies on most people’s list of favorite things to do. In addition, board members are volunteers who are busy people and have only so much time, effort, and money to give in support of a nonprofit mission.

So what exactly do most board members believe their roles to be? And what should the role of a board be to most effectively advance the mission of the organization?

The answer to the first question is fairly easy. Most board members understand their roles to be what is defined in a job description that they don’t remember reading. It is somewhere in the board binder with all of the by-laws of the organization.




The most important role a board member can play is that of “leader by example.”

“

Therefore, if asked, few board members would give matching answers to this question.

Like many who read this book, I am a parent. I have four great kids who have enriched my life in ways I can’t begin to describe. As a father, I play many roles in the lives of my children. I am a provider, a teacher, a mentor, a playmate, and much more.

When my youngest son Jack comes home from school, he often asks me to play with him. Imagine that Jack asks me to play catch with him in the backyard, but I proceed to explain to him that I am not really a playmate kind of dad. “I am really more of a provider kind of father.”

Jack would look at me like I was from another planet, and he would be right. He would be thinking, “You are the only dad I have. Who is supposed to teach me how to throw and catch?”

Now consider the relationship of a board to its nonprofit mission. It is similar to that of a parent and child in many

ways. A board provides discipline, accountability, guidance, support, tough love, and more.

I believe the question to ponder is: What role could a board have? Not, what role has it had in the past? Or, what role does our job description outline?

Unless you are one of those board members who seeks only to add something to your resume, you probably genuinely care about the mission you represent. And it’s crucial for you to remember, how my son Jack might have felt in the illustration above: You are a member of the only board the organization has. If you are not willing to help, then who will?

For any nonprofit with a healthy and growing fundraising operation, the board is an integral ingredient. Not just giving, although that is an important part, but also in the way they engage their personal networks of friends and acquaintances, the way they advocate the mission of the organization to people they meet, and the way they give of their time and skill set. If a board member— one of the foremost volunteer leaders of the organization—is not willing to do these things, then why should someone who is not as engaged with mission?




The most important role a board member can play is that of “leader by example.” Board members must demonstrate the way they want others to get involved through giving, advocating, and volunteering.

It is one thing to sit here in my role as counsel to a nonprofit and lecture board members on what they should be doing, and it’s quite another to dive in and get my own hands dirty. Let me assure you, I recognize that it is much harder to do these things than to instruct others to do it.

As I have served on boards and had to actually put my time, skills, and resources where my mouth is, I have rationalized it this way:

I choose to serve on this board because I believe in and have passion for its mission. If I don’t believe, then I should get off the board and let someone else who does believe step into the role.

As a passionate supporter of this mission, my life has been enriched by becoming more deeply involved through giving and volunteering. If the mission enriches my life, it stands to reason that it may also enrich the lives of my friends. I therefore feel comfortable introducing and recommending this mission to my friends on that basis—much the same as I might recommend a good book, movie, or restaurant for the same reasons.

Some will choose to support it because they believe as I do. Others will choose not to because they do not experience the same life enrichment.

If you are in a position to guide or facilitate a session with your board, consider utilizing the analogy of the board as a parent, and then ask the board members to consider the many ways they could nurture, support, guide, and grow the mission. When unencumbered by a job description and left to consider the meaning of leadership, the sky is the limit.

Whatever role your board has played in the past, it’s time for you to leverage those limited slots with leaders who believe in the mission of your organization. Your fundraising efforts will be maximized—or minimized—based on the strength of your board.



Keep the “RockStar!!!”

number seven




Losing a development officer can have serious implications on a nonprofit’s mission.

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7. Keep the RockStar!!! Reducing turnover in your development staff

Is your development office a turnstile of talented folks who just don’t seem to stay longer than a year or two? Are you tired of having to explain to donors and your board why there’s yet another

new development director they can look forward to hearing from? Keep reading…this chapter is for you!

It’s true, losing a development officer can have serious implications on a nonprofit’s mission. And finding the right replacement is a process that is rarely done well. There are many opinions on what the ideal characteristics are for a good development officer. Unfortunately, most of them miss the mark and bring little value to the search and

hiring process. Here is another take on how to find and keep a Development RockStar and to help bring an end to the revolving door of the development office.

There are some in our industry who believe they are protecting the development profession by denying the truth of the following statistic: the average tenure in the development field is only 18-24 months. Think about that!

And when you consider what is entrusted to development professionals and the hassle involved with rehiring, it is a wonder we don’t give that alarming statistic more time and attention. The reasons for high turnover are numerous and I don’t want to go into them for fear that this chapter will lose its focus. The simple answer is that most nonprofits spend too much time and effort looking for someone who is qualified and not enough time finding people with the right raw material.

The average tenure in the development field is only 18-24 months.

“




CONSIDER THE FOLLOWING CHARACTERISTICS AS YOU SEEK TO EXPAND OR REPLACE MEMBERS OF YOUR DEVELOPMENT TEAM

A KIND FACE – I am not talking about beauty here, but rather a quality that we all recognize when we see it. When someone appears to be kind, we are far more open to engaging him or her in conversation, or taking the next step in starting a relationship. This is the first impression and it really does make a difference in someone being able to gain access to your donors.

A PLEASANT DEMEANOR – In other words, someone who actually is nice. Is he or she easy to engage in a conversation? If someone is awkward or clumsy with casual conversation with you, then it is likely he/she will be the same with a donor. Conversation is foundational to building a relationship.

ASSERTIVENESS – Not aggressiveness, but a pleasant assertiveness. This is critical because your Development Officer must be capable of guiding and influencing the relationships he/she builds. To be clear, I am not referring to a comfort with asking for large amounts of money from a donor. In fact, if someone didn’t express some anxiety with “asking“, then that might count against him or her. It is normal to feel anxiety with challenging donors to move out of their comfort zones. The art of asking is something that can and should be taught within the culture of your mission.

SOLD ON YOUR MISSION – One of the most common reasons for high turnover in the development world is a lack of loyalty to a mission. You must find someone who will represent your mission with passion and conviction. For a private school, I would only consider an alumnus for this reason. If you are a social service mission, then consider reviewing your donor base or volunteer force for serious candidates. While your intent should be to offer a competitive salary, you don’t want to hire someone who is only looking for money.

COMMUNICATION SKILLS – The one academic characteristic that I believe is vital. Any serious candidate must have excellent written and verbal communication skills. I would even suggest building a writing test into the interview process to ensure your prospective hire can write a good letter.

The idea that a development officer should have all of the “technical know-how” before being hired is a flawed perspective. Unless you are in the market for a special events coordinator, the traits you are looking for in a “rockstar development officer” are not learned or academic. Rather, they are God-given.

The development profession is not brain surgery. And while it sounds cliché to say it, development really is about relationships. So consider the following characteristics as you seek to expand or replace members of your development team:

• A kind face

• A pleasant demeanor

• Assertiveness

• Sold on your mission

• Communication skills

So there you have it: my recipe for success. Find the person with the stuff you can’t teach. All the other skills can and should be taught in the context of your tradition and culture.




There are many quality sources for the academic part of the job that include books, workshops, seminars, and engaging a development consultant as a mentor. Some nonprofits actually utilize a development consultant to conduct the search, help with the hire, and then train the new development officer. If this is your path, make sure the consultant accurately represents your culture and values to avoid short tenure.

With some simple adjustments to your ideal profile, you, too, can avoid the pain and hassle associated with hiring a new development officer every 18 months – because Development RockStars are not hired; they are grown with education and care.



Counseling Sessionnumber eight




8. Counseling Session Knowing when it’s time to bring in help

So when is it time to bring in professional help???

This is a question that all nonprofit organizations ask at one point or another, especially as they prepare for a capital campaign. And, for what seems at the time like responsible and sound rationale, many nonprofits choose the wrong answer. The correct and short answer is this – a nonprofit organization should engage professional counsel as soon as the idea requiring capital is formulated – long before the campaign begins.

Now let me acknowledge right here and now that my answer is self-serving. But that is not why the answer is correct. It is correct because the most consequential errors in campaigns are almost always made before consultants are engaged. Often times the chosen professional firm has all it can do to salvage the remaining campaign potential.

So let me follow the logic that leads so many nonprofits to the incorrect answer. Suppose we are a school that needs to raise $5 million for a new building of some sort. There will be some board members who view the campaign ahead and make the following statements:

• This is only fundraising – how hard can it really be?

• We have so many board members who are successful businessmen and women who can figure this out.

• We can already see where the first million or two will come from. We should at least get that far and then hire professionals to help us get the money we can’t see today.

Makes perfect sense, right? WRONG! WRONG! and WRONG!!! Let’s take a time out here and look at the bigger picture (one of my favorite things to say).

a nonprofit organization should engage professional counsel as soon as the idea requiring capital is formulated – long before the campaign begins.

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Campaigns succeed or fail in the initial months during planning and early solicitation. This is when precedent is set and expectations are established. Yes, it is possible to gather some low-hanging fruit and falsely leap to the conclusion that this fundraising thing is easy. But most campaigns that are managed internally (without professional counsel) hit the wall after those first fruits are gathered. Further, the few gifts that were gathered were not done with the broader vision in mind and the greatest potential is almost never achieved.

This is not like trying to fix your kitchen sink by yourself and then calling in the plumber later to fix it. Once you accept gifts for your campaign, you can’t go back to those donors with the message “that wasn’t good enough.” Once the campaign is announced and gifts are given, the damage is done, the horses are out of the barn, etc.

So let me offer some advice to you that is only partially self-serving. If you are looking to cut costs to conduct your campaign, don’t choose the beginning of the campaign to do it. Hire professional counsel early in the process and build your effort right from the start. Then, consider conducting the second half of the campaign on your own after the plan, leadership, systems, processes are all in place.

Finally, pick your counsel early and lean on them for advice through the planning process. Most firms will offer that advice for dramatically discounted rates and sometimes pro-bono.

When is the right time to engage professional fundraising counsel? Tomorrow – if you are planning on launching a campaign in the next 12 months.



Take the LEAPnumber nine




What are you going to actually do this year that is different from last year?

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9. “Take the LEAP”Make this next year your breakout year!!!

Okay so let’s review…

We’ve taken a magnifying glass to your development efforts and defined what healthy expectations look like in your fundraising efforts. We’ve drilled into the world of your donors and your board members. We even talked about how to keep your development office from resembling a turnstile of talented development professionals.

But the real question to ponder is: What are you going to actually do this year that is different from last year?

If your quick answer is “not much,” then you better recall Albert Einstein’s definition of insanity and lower your expectations.

On the other hand, if you are willing to take a LEAP out of your comfort zone to try something

new with the goal of LEAPing forward, then this next year could be a defining year for both you and the mission you represent.




VISIT US AT WWW.MISSIONADVANCEMENT.COM/LEAP TO LEARN MORE ABOUT THIS INNOVATIVE NEW SERVICE OR WWW.MISSIONADVANCEMENT.COM FOR INFORMATION ON OUR OTHER SERVICES INCLUDING:

Capital/ Endowment Campaigns

Planning & Feasibility Studies

Operational Funding & Development Counsel

Board development & training

I can’t stress it enough…get some help from someone – whether it is Mission Advancement or another reputable firm. Yes, it costs some money, but your revenue will grow well beyond the costs – even this year. Our LEAP service even has a guarantee that you will receive a positive return on your investment this year! What do you have to lose? More importantly, what do you have to gain? Take the LEAP and make this next year a year of Breakout Fundraising!

Okay, I have to confess that the LEAP in all caps was intentional and a shameless attempt at promoting a new service being offered by Mission Advancement. However, the goal of this ebook is aimed more at encouraging development professionals and board members to get out of the fundraising rut.

$BREAKOUT FUNDRAISING A Guide to Growing Operational Giving

Documents

Breakout Fundraising - A Guide to Growing Operational Giving