Use Your Non-Profit Marketing Dollars Wisely

Sheila E. Lewis, President Flyin’ West Marketing

Fundraising must be tied to marketing. You need to generate awareness and excitement in order to generate revenue. Guest blogger Sheila E. Lewis shares six tips for marketing success.

Marketing is often a management challenge for non-profit organizations. After all, non-profits exist to provide services to targeted communities, not to sell revenue-generating products. Additionally, most small to medium-sized NPOs do not have marketing positions, often assigning communications projects to fundraising professionals.

For many NPOs, spending money on marketing means fewer dollars that could be used for programming and other direct services. However, most non-profit managers understand that communication campaigns are necessary to raise awareness and funds. The conflict between serving clients, building the organization’s brand, and generating funds requires that NPOs maximize limited marketing budgets.

When considering the best allocation of scarce marketing dollars, ask yourself the following questions:

1. How much money do you want to commit to the project? If you don’t have a budget in mind, everything will seem too expensive. You’ll get what you pay for so the least expensive solution may cost you more in the long run.
2. What results do you want? How will you measure the results? It is important to view marketing dollars as “working” funds for a NPO. Spend with the end in mind.
3. Who is your target audience and what messages will be most effective? Messages resonate differently with each target audience. It’s important to know who they are and what will motivate them to act.
4. How many times must your target audience hear or see your message before moving to action? Should you employ more than one communication tool or channel? Does that require several different messages?
5. How much time do you have before the first materials need to be available? And, how long will the campaign run? It is best to have a project plan that helps keep you and your resources on track—delays cost money.
6. Who will manage the communication campaign? Will the work be completed in-house or do you require external resources? There are several marketing firms or independent consultants focusing specifically on NPOs and thus bring a heightened sensitivity to your work. You will find a range of fees for these services. Feel comfortable negotiating if you believe the fees to be too high.

You may be able to secure pro bono assistance, but be sure that the firm or individual has the level of experience and the capacity to complete your work successfully and on time.

Either way, it is a good practice to seek referrals from other NPOs whose materials you like. You may also choose to speak with a representative from the local chapter of The American Marketing Association or a non-profit management service organization providing capacity-building support for non-profit organizations. Check references and the work product of any firm or individual before hiring them.

The most effective communication campaigns—whether geared toward a special event, fundraising, or building awareness among your community—require good planning, an appropriate budget and skilled resources for implementation. Know your target audience and speak their language.

Sheila E. Lewis is the President of Flyin’ West Marketing in Fremont, CA, a full service marketing firm with several clients in the non-profit sector. www.flyinwestmarketing.com. (510) 668.0351

It’s all about leadership

Dr. Coyness Ennix

Do you hire staff to raise money for your organization or are staff members responsible for identifying and motivating volunteers who have the passion and connections to secure the money you need?

We believe it is volunteers who are responsible for raising funds for non-profit organizations. The Alameda County Health Care Foundation’s current campaign to raise $2.6 million for an angiography suite for Highland Hospital is a great example of volunteer leadership.

Working together the foundation’s executive director and the CEO of Alameda County Medical Center are engaging individuals from across Oakland to help raise the last $750,000 needed by the campaign. Cherlyn Spencer, the executive director, and Wright Lassiter III, the CEO have recruited an impressive group of Oakland’s finest to help ensure that all Oakland residents have access to state-of-the-art life-saving equipment that helps patients suffering from trauma and those who have heart conditions or vascular problems.

Volunteer leaders reported on their fundraising activities this past week with a reception at the new Lake Chalet Bar and Grill Restaurant. The costs of the reception were paid for by a foundation board member as a way of demonstrating support and reducing fundraising costs. At the meeting the chairs of the campaign’s divisions shared their plans and activities. Participating were Paul Gallagher, a Senior Vice President at Wells Fargo, who reported on the work of the major gifts division and the foundation’s board of directors; Dr. Coyness  Ennix from the medical center who reported on the medical community’s participation; Reverend David Kiteley of Shiloh Christian Fellowship and International Ministries and Father James Matthews of St. Benedict Parish who are engaging the faith community; and Tony Lynch of Alta Alliance Bank and Anthony Thompson, Vice President of Bank of Alameda who are co-chairing the corporate and business division.

These volunteers will be supported by foundation staff who are providing campaign information materials as well as suggestions and strategies to help volunteer leaders meet their fundraising goal. Staff also secured a matching grant of $1 million. This provides motivation for giving as each $1 donated will result in $2 for the campaign. More importantly all funds raised will help ensure that anyone suffering chest pains – regardless of their health insurance status – can have access to the equipment that makes a difference between full recovery and long-term disability, and even between life and death.

To get involved or make a contribution call (510) 437-8366 or visit www.achcf.org.

Is your fundraising connected to your strategic plan?

Last week we conducted two different workshops for board members from two distinctly different organizations on different sides of the country. One was a board comprised of medical professionals, the other was a University foundation board with diverse membership. One has an annual fundraising goal of less than $500,000 and the other has a $4.2 million goal. Yet the results of both workshops were the same. Board members ended each meeting agreeing to “update our strategic plan.”

The purpose of these workshops was not strategic planning. These were workshops designed to educate and engage board members about their responsibility for fundraising and their accountability to each other. During each workshop we reviewed the prerequisites for fundraising success that we have identified through our years of working with diverse organizations. Both boards focused on prerequisite number five “A compelling case for financial support that ties back to the strategic plan.”

The case for support is what people communicate to potential donors about the impact of their organization and the reasons for supporting its work. But these need to be connected to a strategic plan. If, for example, your organization’s strategic plan calls for increasing access to health care by 15% for children within a specific geographic area, then your fundraising should be organized around asking people, businesses and foundations to support you in this effort. If, instead, you are raising money to extend services to newly unemployed adults then your fundraising is not tied to your strategic plan.

There are plenty of good reasons why healthcare should be extended to the unemployed. The only problem is that this is not the identified focus of the organization. Taking the time to review, and as necessary, revise your organization’s strategic plan helps make sure that your activities and the use of your resources are in line with your strategic plan.

Many donors, particularly those who give larger sums of money, pay close attention to the congruence between fundraising and your strategic plan. We believe it is simply a good business practice.

So, maybe we shouldn’t have been surprised that both organizations decided to begin their work with a focus on strategic planning. This doesn’t have to be a difficult and time consuming task. At its best strategic planning focuses an organization’s energy, resources, activities, public relations and fundraising. Working from a current strategic plan helps everyone determine how to best use limited resources.

- Mel and Pearl Shaw!

Planning for change – executive transition

Byron Johnson, Project Director, Compasspoint Nonprofit Services

Change is a part of our personal lives and a part of organizational life. We asked Byron Johnson at CompassPoint Nonprofit Services a few questions about the process of planning for a change in executive leadership.

What is a succession plan and why is it important for a non-profit organization to have one?
Succession planning builds staff skills towards achieving an organization’s strategic vision, builds the leadership capacity of staff, and develops a pool of potential management successors.  It also provides the opportunity for some organizations to diversify their agency leadership.

What should the succession plan include?
There are two types of written succession plans: 1) an emergency succession plan, and 2) a departure-defined succession plan.

An emergency succession plan ensures that key leadership and administrative functions and services continue without disruption in the event of an unplanned, temporary absence of an administrator. It should include the following components:
1. A current description of the key functions of the executive director
2. A list of functions that would be covered by an acting director, what his or her authority would be, and which functions would be covered by other staff, e.g., government funder relations covered by the Director of Programs.
3. Who has the authority to appoint the acting director.
4. Standing appointee(s) to the position of acting director (with first and second back-ups) and compensation for acting director(s).
5. A cross-training plan for the identified back-ups that ensures they develop their abilities to carry out the executive director’s key functions.
6. A description of how the Board will support and supervise an acting director.
7. A communication plan in the event of an emergency succession (who gets notified and when).
8. An outline of procedures to be followed in the event that an emergency absence becomes a permanent absence.

What are the challenges we might face if our executive left and we didn’t have a plan in place?
Lack of succession planning can result in what we call a post-transition “meltdown”.  An organization can become so traumatized when faced with the prospect of dealing with an unplanned leadership transition that program delivery, funding, and by extension, the whole community can be adversely affected.

What is a departure-defined success plan?
A departure-defined succession plan is created when an organization’s leader has announced they will leave in two or more years.  This plan includes identifying the agency’s goals moving forward, determines what the skills their successor will need to achieve those goals, and identifies what in the agency needs “upgrading” (board governance abilities or fundraising capacity, as examples) in order for the agency to advance their goals.  The two year planning timeline gives the departing executive and others time to address some of the upgrades before the successor comes on board.

Related to this is another way of thinking about succession planning: Strategic Leader Development, which is the ongoing practice of defining an organization’s strategic vision, identifying the leadership and managerial skills necessary to carry out that vision, and recruiting and maintaining talented individuals who have or can develop those skills.  This is also sometimes referred to as “building the bench”.

What should a departure-defined succession plan include?
It should include the following elements:

a) A plan for dealing with the personal and professional barriers for the executive director who’s leaving.
b) Setting a date for the executive director’s last day in the office.
c) Any plans for grooming their successor (when appropriate).
d) Integrating the succession plan into the agency’s broader strategic plan.
e) A communications plan—who will be told when about the executive’s planned departure?
f) Conducting a “Sustainability Audit” to identify the operational upgrades needed.
g) Plans for solidifying the management team, if applicable.
h) Identifying board and staff back-ups for the executive’s key relationships.
i) A plan for putting finances in order.
j) A plan for building financial reserves and securing multi-year funding.
k) Agreement on the ED’s emeritus role, if the departing executive will have an ongoing formal relationship with the agency.

How does the presence or absence of a succession plan impact fundraising?
Most funders and supporters breathe a sigh of relief when there is some form of succession planning rooted in an organization.  Knowing that the organization can and will continue in the face of leadership transition makes everyone feel at ease and as a result prevents many fundraising hiccups that may occur during a transition.

For more detailed information on success planning visit www.compasspoint.org or www.transitionguides.com.

Byron Johnson, CFRE is a Project Director for CompassPoint Nonprofit Services, one of the country’s leading nonprofit consulting organizations, based in the San Francisco Bay Area. Prior to joining CompassPoint, he worked in senior development positions for San Francisco State University, the East Bay Asian Local Development Corporation, and the YMCA of the East Bay. A past board member of the Golden Gate chapter of the Association of Fundraising Professionals, he is currently an advisory board member of the Multi Cultural Alliance, a special year-round fellowship program designed to diversify the fundraising profession and to develop skills among aspiring under-represented fundraising professionals. Mr. Johnson consults in fund development and other areas of organizational capacity building, which include fundraising planning and coaching, strengthening foundation and individual donor development work, and donor solicitation training.

There’s always more to accomplish

Last week we met with the executive director and board chair for an organization that is interested in raising money so they can expand their reach to serve people they aren’t yet reaching. Their history and current successes are strong and impressive. But that’s not enough for them. In fact their focus is on “how can we realign and increase our resources so we can serve those we aren’t yet reaching.”

Yes, they want to engage in fundraising. But they are also looking at revenue-producing partnerships. They have identified their assests – property and programs – and are looking at how they can use these to expand services, increase impact and increase revenue. They are looking forward. And they are making decisions and taking actions to deliver on their vision.

We were impressed. We would be impressed with this organization at any point in time. But we are particularly impressed right now. Like so many other organizations they are in jepordy of budget cuts, decreased revenue, expiring grants. But that is not their focus. Their focus is finding creative ways to engage others in helping them deliver on their mission.

Think about your successes. Think about who you are serving and who you are not yet serving. Then think about how you could serve them. Consider who you could partner with. How could you create a mutually beneficial partnership?It might seem difficult. It might feel impossible. But maybe not. We encourage you to look forward, to think creatively, and focus on your mission. You may just find answers and possibilities that can take you in new directions.

Let’s Check The Minutes

Everyone has pet peeves. We are no exception. One thing we have noticed in our work is that the quality of minutes taken – or not taken – at meetings make a big impact on an organization’s effectiveness.

Meetings are a valuable investment of time on the part of those who attend. We share perspectives, make decisions, and determine direction. Minutes are a way we can look back and recall what was discussed, decided, and the actions we agreed to take. When minutes are not accurate the result can confusion, misunderstandings, and a failure to meet important commitments.

We agree. There are many reasons why minutes may not be accurate. Here are a few:

1. Minute taker was unable to track the conversation and record important points. He attempted to transcribe what was said instead of summarizing and recording major points.
2. The meeting itself was not well organized or well facilitated.
3. Agreements were not clearly stated so they could be recorded.
4. The minutes were not completed and distributed in a timely fashion. By the time participants received the minutes they had forgotten what happened at the meeting and were left to “assume” the minutes are correct.
5. There is no established format for minutes.

But, these can be overcome. Here are a few high-level suggestions for how to take good minutes:

1. Record the names of all people participating. Indicate who is absent.
2. Use the meeting’s agenda as a starting point. Record a summary of major discussion points for each item on the agenda.
3. When you hear a decision being made re-state the decision to ensure you are recording it correctly.
4. Record action items in a “next steps” section of the minutes. For example: Elizabeth to follow up with Mayor by Friday.

Creating and distributing accurate minutes in a timely fashion can increase the effectiveness of meetings. Here are a few “positive outcomes.”

1. People get in the habit of making quantifiable agreements with due dates
2. Prior decisions are easily referenced without having to revisit the whole discussion
3. New group members understand prior actions and decisions

As always, you can be part of the solution. Here’s some suggestions for what to do if you are dealing with challenges in area of meeting minutes:

1. When facilitating a meeting, or playing an important role, take your own notes.
2. Cross reference these against the minutes to help ensure accuracy.
3. Have a quick meeting after the meeting with the minute taker and the meeting’s leadership to ensure key points and agreements were recorded.
4. Circulate a draft of minutes within 48 hours so corrections can be made before being officially sent to all participants.
5. As a participant make sure you review the minutes prior to the next meeting so you can wisely vote to approve or modify.
6. Make sure you know where the official minutes are kept. They should all be in one place that is easily accessible.

That’s it for now! Let us know how accurate and timely minutes help your organization.

Proposal Writing in the Age of Twitter

Welcome guest blogger Cheryl Clarke. Here’s Cheryl’s words of wisdom on proposal writing in the age of twitter.

Twitter proposals.  That’s what I call those online grant application forms that ask a series of questions which applicants must answer within a specified word, or even character, count.  Can a nonprofit agency effectively tell its proposal story given such severe space restrictions?  It’s not easy, but it can be done. 

Online application forms require grantwriters to go on a verbal diet and write low-fat proposals rather than more caloric full-blown narratives.  For most of us, this means that online proposals are more challenging to draft.  Why?  Because we’ve got to make each word count.  We do not have the luxury of slowly building our case for support.  We’ve got to get straight to the point without taking a lot of descriptive detours.  Knowing what to include, as well as what to leave out, is essential.  What guides our decision-making?  Here are four “rules” I follow in preparing online applications.

• Focus on answering only the question that is being asked.  Unlike a tradition proposal narrative where the writer often has a little more flexibility in presenting the story’s sequence, the questions in an online application form dictate the narrative flow.  Writers must focus on the question at hand and should not digress into other topics as doing so will eat words and further limit the amount of available space. 

• Think of each answer as a mini story that must be complete in and of itself.  At minimum, each response requires a topic sentence that introduces the issue being discussed, a sentence or two that elaborates on the topic, and finally a concluding sentence that resolves the issue.  Naturally, if the application allows a greater word count, the mini story can be expanded.

• Don’t be afraid to use a descriptive word or phrase, just do so judiciously.  A well-chosen adjective or adverb adds color and often emotional depth to an answer.  Dispense with vague descriptive words such as “unique” and “innovative.”  Instead, show the reviewer what makes your agency’s work unique and how your agency’s service delivery is innovative.

• Write, review, edit, then edit again.  To ensure the required brevity of answers, first write a draft response to the question asked, then review and edit what’s been written, then edit again.  Be merciless with the editing pen and seek to eliminate all unnecessary words.

With a 400-word count for this article, this story’s end has been reached!

Learn more about Cheryl Clarke’s expertise, services, workshops and books!

Individual Donor Research – San Francisco Workshop

Major Gifts on Limited Time: Using Research to Prioritize Prospects
Presented by Barbara Pierce
Friday, August 14, 2009, 12:00 to 1:30 p.m.
Development Executives Roundtable (DER)
Location: The Foundation Center, 312 Sutter Street, 2nd Floor, San Francisco
Co-sponsored by The Foundation Center

With so many responsibilities, how do you decide how to use your time most wisely? In this workshop, you’ll learn valuable tools to use in making time-efficient decisions about which prospects to focus on for the best results. We’ll discuss what prospect research can (and cannot) answer for you, where to start your search, tips on best research sites, an introduction to electronic wealth screening and finally, how to utilize the information you do find to cultivate and solicit potential donors.

About Barbara:
Since she was handed a list of 1,500 prospects at her first development job, Barbara has been an avid student of how to quickly identify the best prospects through research. Based in San Francisco, she is a development consultant with 15 years of experience in working with major gift prospects on gifts ranging from $10,000 to $1 million plus. She has worked with organizations including: California League of Conservation Voters, Planned Parenthood, Mills College, REDF (formerly The Roberts Enterprise Development Fund) and the George Lucas Educational Foundation. She can be reached at pierceconsulting2002@yahoo.com

Information/Registration:
Cost for Luncheon: DER members = $12, non-members = $20. Lunch is included in your fee. Because of DER’s special relationship with the Foundation Center, participants who wish to bring their own lunch can attend the meeting for no cost, but you still MUST register at the DER website. Please reserve by Wednesday, August 12 at www.dersf.org. Programs often sell out so don’t delay!

Boards and Fundraising: Common Complaints and Proposed Solutions

Is Your Board a Fundraising Board?

We hear a lot about boards and fundraising.  Below are comments and questions we hear from leadership and staff of organizations and from board members.  Do these sound familiar? Take a look.

Common staff comments and questions:

1. How can we get our board more involved with fundraising?
2. We give them a goal each year, but they never meet it.
3. We can’t get 100% of our board to give.
4. Our board is more interested in policy than in fundraising.
5. Everyone agrees on our fundraising plan at the board meeting, but board members just don’t follow through.

Common board comments and questions:

1. We are willing to get involved, but the goals are unreasonable.
2. I didn’t join the board to raise money.
3. They keep changing the fundraising goal – I need a strong and consistent case for support before I introduce my contacts to the institution.
4. The CEO is unwilling to meet with prospective donors.
5. I keep asking for training but I really haven’t gotten any yet.

It is always easier to point the finger at someone other than ourselves when we fall short of our goals. Here are some actions for staff and board members to take that can help increase collaboration in the area of fundraising. Circle each of the actions you are willing to take.

Staff Actions

1. I am willing to meet individually with each board member to review our fundraising goals and objectives and to ask each board member how she or he would be willing to help us meet these goals.
2. I am willing to let the board determine its fundraising goal.
3. I am willing to secure ongoing fundraising training for the board that includes time for role playing, time for the board itself to agree upon a fundraising goal, and time for the development of strategies regarding how board members will achieve their agreed upon goal.
4. I am willing to integrate quick and fun activities into all our board meetings that build the fundraising skills of the board.
5. I am willing to work with the board president to learn how she would like to personally solicit each board member. I am willing to provide her with support, coaching, materials and training as needed so that she can take ownership of the board solicitation process and ensure 100% giving by all board members.
6. I am willing to create a culture within our organization that is accountable, transparent and responsive to donor questions and requests.

Board Actions

1. I am willing to make a gift to the institution that represents one of my largest annual philanthropic donations.
2. I am willing to engage in fundraising as part of my responsibility as a board member even if feels uncomfortable to me.
3. I am willing to invest the time it takes to become conversant in the mission, goals, programs and strategic plan of the organization I serve.
4. I am willing to ask those I know whose values are in alignment with those of the institution I serve to make a gift to the institution or to a specific project.
5. I am willing to ask questions of the organization’s leadership so that I can best respond to questions that other people may have about the organization. I am willing to ask the difficult questions that people talk about privately but won’t address publicly.
6. I am willing to take the initiative to make sure that our board meetings always include active discussion and reporting by board members on the topic of fundraising and what we are doing to fulfill our agreed upon fundraising agreements.

It is always easier to point the finger at others. Our question is this – what are you willing to do?

Saad & Shaw provides organizations and institutions with creative and engaging board workshops. If you would like for us to work with you, please let us know. An easy first step is to work with How to Solicit a Gift: Turning Prospects into Donors. This book is written for fundraising volunteers. It walks the novice and the professional through the process of preparing to solicit, as well as guidelines for making the ask, and following up.

Are you a 50% Giver?

Hsieh Family Chooses to Give

“My wife and I decided to give away all our income above the U.S. median household income.” - Tom Hsieh

Do you know anyone who gives away 50% of their income? Believe it or not, people do. And they feel good. Read Tom Hsieh’s story.

Anne and Christopher Ellinger know 125 people who give away at least half of their income. They created Bolder Giving in Extraordinary Times to encourage bold giving.

“We live in a time of historic crisis and opportunity, when contributions of time and money could make a crucial difference.Yet most of us – even if well-off – give at a fraction of our capacity. Bolder Giving’s mission is to inspire us to give at our full potential by providing remarkable role models and practical support.”

Bolder Giving’s 50% Leagaue is one way they encourage more of us to give more.  You could be a millionaire and participate, or you have a much smaller income. The only requirement is that you have donated 50% or more of your income or business profits for at least three years, or 50% or more of net worth at some point in their lifetime, to causes that reflect your deepest values. (FYI, average U.S. giving is under 3% of income.)

“There’s nothing to counteract a feeling of scarcity like generosity.” – Anne Ellinger, founder Bolder Giving in Extraordinary Times

Read People who give half their money away in the SF Chronicle that inspired this blog