Table of Contents
Scroll down for articles of interest to nonprofit leaders and professionals:
My Journey to Publishing
Great New Resource
How Are You Handling Risk
Major Gift Prospecting and Prioritization
Succession Planning Tips for Volunteer Leadership
Nonprofits and PEO's
How to Develop a Strong Fundraising Board
Why Your Organization Needs A Gift Acceptance Policy
Click "Older Posts" at bottom to see the following additional articles:
Before You Start A Fundraising Campaign
Ten Fundraising Axioms: Simplified
Fundraising Return on Investment
Best Kept Secret
Collaboration: Saving Operating Costs in a Tough Economy
Ten Tips for Nonprofit Major Gift Solicitors
A Marketing Approach for Planned Gifts
Professional Development Through Peer Engagemet
Nonprofit Lexicon
Thursday, January 12, 2012
My Journey to Publishing
I’m one of those “old” pros who just a few short years ago thought social media, and blogs were only for young people who wanted to socialize with their friends. For most of my career, I have been a nonprofit professional, working with large organizations as fundraising counsel for their major gift, capital and endowment campaigns. One day, while visiting my then 35 year old daughter and my son in law, I was told about the marketing value of blogs for professionals. I had been involved with CharityChannel.com and had participated on their list-serves but had not been exposed to blogs or social media. I was curious and asked them to give me more information. After about ½ hour of instruction, I was set up with a Google Blog. (www.nfpconsulting.blogspot.com)
Over the course of my career I had, from time to time, written short professional articles and decided to post some of them on the blog and with CharityChannel. I even created a few new postings over the ensuing 2-3 months. My son-in-law suggested that I use social media to “drive business to my blog” which was also linked to my business web site.
I went to Facebook, Linkedin and Twitter and set up accounts which I primarily used to notify “friends and colleagues” when I posted a new item on my blog. Over time I learned about the value of viral marketing. It did not take long before I began to get comments about my articles and requests for their use with other organizations. Within a few months, I received requests from a University to use one of the articles in their newsletter as well as from several national nonprofit associations and organizations.
I also posted several of my articles from the blog on CharityChannel which resulted in great feedback and requests to reprint the articles. Through CharityChannel, I established a relationship with its Founder and CEO, Steve Nill. He was very encouraging and graciously posted more of my articles on their web site.
It was not only a boost to my career to be published, but it was also an ego trip. I began to establish a national reputation as a thought leader in my profession. I set up a Google alert for my name and low and behold, many of the articles I had written came up on sites of other organizations which had reprinted my articles as resources for their own constituencies.
Soon after, Steve Nill and I had discussions about doing a book that would include the best articles from CharityChannel. He asked if I would put it together. CharityChannel had just set up CharityChannel Press and had already published its first books. I told him I was not familiar with putting a book together or working with a publisher, nor did I think I had the time that would be necessary. He said he might be able to get me a co-editor who had a lot of book editing experience. I told him I would consider it. He introduced me by phone to Linda Lysakowski. After talking to her, I was convinced that she had the professional knowledge, and editing skills, that the book was a great idea and working with her would help tremendously.
I was in Florida. She was in Las Vegas. We became email and phone buddies, spending lots of time thinking through what we wanted to do and how we would do it. We spent 2 years on the project. During that time we only had one face to face meeting. Contributors were selected from around the globe (Canada, Great Britain, Australia and the United States). With the help and professional generosity of many of our colleagues, we presented “You and Your Nonprofit” to CharityChannel Press for publication.
It came out in June of 2011 and has received a lot of attention not only within the nonprofit sector (professional, academic and volunteer community) but also for the two of us and the 40 plus contributing authors.
My desire to share my knowledge with others, as others have for me throughout my career, gave me encouragement and recognition. Most recently I made a presentation, to the faculty, students and community partners at the college from which I graduated. (Virginia Commonwealth University School of Social Work). That was another special time for me to be able to talk about the content in the book and engage with those attending on other topics related to future trends within the nonprofit sector.
Who would have guessed that a ½ hour of instruction, the use of social media and a blog would lead to the publication of a significant book on nonprofit management, leadership and fundraising.
Think about how similar activities could catapult your professional career…………
Over the course of my career I had, from time to time, written short professional articles and decided to post some of them on the blog and with CharityChannel. I even created a few new postings over the ensuing 2-3 months. My son-in-law suggested that I use social media to “drive business to my blog” which was also linked to my business web site.
I went to Facebook, Linkedin and Twitter and set up accounts which I primarily used to notify “friends and colleagues” when I posted a new item on my blog. Over time I learned about the value of viral marketing. It did not take long before I began to get comments about my articles and requests for their use with other organizations. Within a few months, I received requests from a University to use one of the articles in their newsletter as well as from several national nonprofit associations and organizations.
I also posted several of my articles from the blog on CharityChannel which resulted in great feedback and requests to reprint the articles. Through CharityChannel, I established a relationship with its Founder and CEO, Steve Nill. He was very encouraging and graciously posted more of my articles on their web site.
It was not only a boost to my career to be published, but it was also an ego trip. I began to establish a national reputation as a thought leader in my profession. I set up a Google alert for my name and low and behold, many of the articles I had written came up on sites of other organizations which had reprinted my articles as resources for their own constituencies.
Soon after, Steve Nill and I had discussions about doing a book that would include the best articles from CharityChannel. He asked if I would put it together. CharityChannel had just set up CharityChannel Press and had already published its first books. I told him I was not familiar with putting a book together or working with a publisher, nor did I think I had the time that would be necessary. He said he might be able to get me a co-editor who had a lot of book editing experience. I told him I would consider it. He introduced me by phone to Linda Lysakowski. After talking to her, I was convinced that she had the professional knowledge, and editing skills, that the book was a great idea and working with her would help tremendously.
I was in Florida. She was in Las Vegas. We became email and phone buddies, spending lots of time thinking through what we wanted to do and how we would do it. We spent 2 years on the project. During that time we only had one face to face meeting. Contributors were selected from around the globe (Canada, Great Britain, Australia and the United States). With the help and professional generosity of many of our colleagues, we presented “You and Your Nonprofit” to CharityChannel Press for publication.
It came out in June of 2011 and has received a lot of attention not only within the nonprofit sector (professional, academic and volunteer community) but also for the two of us and the 40 plus contributing authors.
My desire to share my knowledge with others, as others have for me throughout my career, gave me encouragement and recognition. Most recently I made a presentation, to the faculty, students and community partners at the college from which I graduated. (Virginia Commonwealth University School of Social Work). That was another special time for me to be able to talk about the content in the book and engage with those attending on other topics related to future trends within the nonprofit sector.
Who would have guessed that a ½ hour of instruction, the use of social media and a blog would lead to the publication of a significant book on nonprofit management, leadership and fundraising.
Think about how similar activities could catapult your professional career…………
Wednesday, July 27, 2011
Great new resource now available
Want to learn more about nonprofit leadership, management and fundraising?
Involvement with nonprofits, either as a volunteer, professional or donor, can be a very gratifying and life enriching experience. In organizations that are not well run, those experiences can be negative and stressful. Nonprofits are a special type of corporation. While they do not make money for stockholders or owners, they have to be run effectively and efficiently if they want to accomplish their mission, provide a community benefit, expand and retain staff and volunteers. Yes, while they are unique, they ARE businesses that require proper leadership, governance, operations and support.
If you are involved in nonprofits, or want to get involved…..either as a volunteer, leader or professional….a new book is now available that is just for you! “You and Your Nonprofit”, published by CharityChannel Press is a collection of short articles with practical advice from people who have been in the trenches. It is more than a “how to” book. Each article has been written with the goal of providing tools that can be easily adapted for use in your nonprofit. Over 50 contributing authors from the U.S., Canada, England and Australia have participated in this publication. All are seasoned professionals and nonprofit leaders who have learned their craft over many years “in the trenches” as well as from participation in professional educational programs. A unique aspect of the book is the ability to connect with each of the authors and establish a dialogue with them directly. Each article has a special email address through which authors can be contacted by readers.
The goal of the book is to focus on readers who are relatively new to the nonprofit sector. The editors asked authors to write for readers (professionals, leaders and volunteers) who have been in the field for less than ten years. They wanted readers to find the articles not only informative and interesting, but also practical examples of best practices. They wanted readers to be able to take ideas and suggestions from the articles and be able to implement them within their own organizations.
The editors wanted to create a book that would be more than just an anthology of essays, but, rather, a series of articles written by professionals who have real life experience and have been in the trenches of nonprofit work. They did not expect the book to be an all-inclusive book on nonprofit leadership, management and fundraising, However, they believe that the business of nonprofit management, leadership and fundraising is constantly improving because people like the authors (and hopefully the readers) are willing to challenge conventional wisdom and think outside of the box. They have succeeded.
Robert Carter, CFRE, Board Chair Elect of the Association of Fundraising Professionals, Board Member with the Center for Philanthropy at Indiana University and Principal with Of Counsel Philanthropy made the following comments as part of his foreword to the book:
“I have just read the book I needed when I made the decision to try the business of fundraising decades ago. This book is loaded with excellent advice and counsel as to “why & why not” and “what” and “how to.” Fundraisers, volunteers, CEOs, and all who care about this sector’s capacity to meet the needs and seize opportunities to benefit our communities, nation and world should have this collection on their desks for handy reference and guidance. This is surely the book I wish I had decades ago.”
Readers will learn about planning issues in articles about governance, fundraising, administration and marketing. They will learn about leadership and other topics in many of the articles. The authors want readers to enjoy learning about nonprofit management, leadership and fundraising and in the process learn ways to add value to their own work as people who are, or will be, engaged in the nonprofit sector.
“You and Your Nonpofit”, has been nominated for the 21st Annual Terry McAdam Book Award of the Alliance for Nonprofit Mangagement and has been recommended by Charity Navigator and the Association of Fundraising Professionals.
“You and Your Nonprofit” can be purchased at http://charitychannel.com/charitychannel-press/bookstore/productid/127/catreferrer/1420 or at your favorite bookstore.
Involvement with nonprofits, either as a volunteer, professional or donor, can be a very gratifying and life enriching experience. In organizations that are not well run, those experiences can be negative and stressful. Nonprofits are a special type of corporation. While they do not make money for stockholders or owners, they have to be run effectively and efficiently if they want to accomplish their mission, provide a community benefit, expand and retain staff and volunteers. Yes, while they are unique, they ARE businesses that require proper leadership, governance, operations and support.
If you are involved in nonprofits, or want to get involved…..either as a volunteer, leader or professional….a new book is now available that is just for you! “You and Your Nonprofit”, published by CharityChannel Press is a collection of short articles with practical advice from people who have been in the trenches. It is more than a “how to” book. Each article has been written with the goal of providing tools that can be easily adapted for use in your nonprofit. Over 50 contributing authors from the U.S., Canada, England and Australia have participated in this publication. All are seasoned professionals and nonprofit leaders who have learned their craft over many years “in the trenches” as well as from participation in professional educational programs. A unique aspect of the book is the ability to connect with each of the authors and establish a dialogue with them directly. Each article has a special email address through which authors can be contacted by readers.
The goal of the book is to focus on readers who are relatively new to the nonprofit sector. The editors asked authors to write for readers (professionals, leaders and volunteers) who have been in the field for less than ten years. They wanted readers to find the articles not only informative and interesting, but also practical examples of best practices. They wanted readers to be able to take ideas and suggestions from the articles and be able to implement them within their own organizations.
The editors wanted to create a book that would be more than just an anthology of essays, but, rather, a series of articles written by professionals who have real life experience and have been in the trenches of nonprofit work. They did not expect the book to be an all-inclusive book on nonprofit leadership, management and fundraising, However, they believe that the business of nonprofit management, leadership and fundraising is constantly improving because people like the authors (and hopefully the readers) are willing to challenge conventional wisdom and think outside of the box. They have succeeded.
Robert Carter, CFRE, Board Chair Elect of the Association of Fundraising Professionals, Board Member with the Center for Philanthropy at Indiana University and Principal with Of Counsel Philanthropy made the following comments as part of his foreword to the book:
“I have just read the book I needed when I made the decision to try the business of fundraising decades ago. This book is loaded with excellent advice and counsel as to “why & why not” and “what” and “how to.” Fundraisers, volunteers, CEOs, and all who care about this sector’s capacity to meet the needs and seize opportunities to benefit our communities, nation and world should have this collection on their desks for handy reference and guidance. This is surely the book I wish I had decades ago.”
Readers will learn about planning issues in articles about governance, fundraising, administration and marketing. They will learn about leadership and other topics in many of the articles. The authors want readers to enjoy learning about nonprofit management, leadership and fundraising and in the process learn ways to add value to their own work as people who are, or will be, engaged in the nonprofit sector.
“You and Your Nonpofit”, has been nominated for the 21st Annual Terry McAdam Book Award of the Alliance for Nonprofit Mangagement and has been recommended by Charity Navigator and the Association of Fundraising Professionals.
“You and Your Nonprofit” can be purchased at http://charitychannel.com/charitychannel-press/bookstore/productid/127/catreferrer/1420 or at your favorite bookstore.
Thursday, June 24, 2010
How Well Are You Handling Risk Management
How well are you handling “Risk” in your nonprofit organization?
By
Norman Olshansky, President: NFP Consulting Resources, Inc.
Over the past few years, increasing attention has been given to potential liability, mismanagement and ethical practices within the nonprofit sector. Whether as a result of the Sorbanes-Oxley Act of 2002 or more recent high profile ponzi schemes and fraud cases, boards and executives of nonprofit organizations have begun to put more focus on risk management.
A formal definition of risk management is: “the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities”.
When was the last time your organization conducted a serious risk management process?
While many of the prime areas of risk are related to finances, personal injury liability, and unforeseen disasters, there are many other areas of nonprofit operations and governance which can create risk for an organization.
The following are a few of the more common areas of risk which can be assessed and addressed:
1. Availability of Information for Decision Making
2. Billing and Collections
3. Business Expenses
4. Business interruption
5. Cash Management
6. Continuity/Disaster
7. Contract compliance
8. Copyright infringement
9. Corporate Governance
10. Data Security
11. Donor/member records
12. Donor/member recognition and benefits
13. Emergency preparedness
14. Facility Management
15. Financial Reporting
16. Fraud & Ethical Behavior
17. Fund Raising
18. Gift Acceptance
19. Harm to clients
20. Human Resources
21. Insurance/Risk
22. Investment policies
23. IT Infrastructure
24. Litigation Risk
25. Misfeasance/Malfeasance
26. Malpractice
27. Operational Quality Performance
28. Personnel/Volunteer Behavior
29. Regulatory Compliance
30. Related Party Transactions
31. Special Events
32. Storm damage
33. Subcontractor Utilization
34. Succession Planning
35. Tax Exempt Status
36. Transportation
37. Unrelated Business Income
38. Use of intellectual property
As you can see from the partial list above, there are many areas of potential concern. In most cases, it would be cost prohibitive and next to impossible to attempt to eliminate all risks in a nonprofit. However, depending on the type of organization and its operating issues, there are usually several high priority potential problem areas which should be addressed. The cost of prevention is usually a fraction of the cost of correction after the fact. Typically, discussions related to risk management are first initiated by financial advisors and/or auditors. However, the scope of their concern if often limited to financial issues.
There are risk management tools that can be used as part of a nonprofit organization’s annual audit process. The assessment is typically a comprehensive problem solving process that starts with an analysis of needs, prioritization of areas of concern, a recommendation on how to address those concerns and measurement of progress. Progress is only possible if the starting point is identified correctly and candidly. Nonprofits are asked to provide data for the baseline assessment - the more accurate the data, the greater the prospect of substantial improvement.
The assessment is administered again annually in order to assess impact. The assessment should be conducted by an external assessor which is why doing so, as part of an annual audit, is advantageous. By comparing year to year results, nonprofits can observe their progress and continually reduce the extent of risk in their organization.
Most auditors will address issues such as separation of duties related to bookkeeping and accounting, or documentation which is required in personnel files. However, a more thorough risk assessment will also include a review many other potential areas of concern.
Consider some of the following questions:
When was the last time you looked at your facilities to determine if they are safe and secure, if data is protected, how to minimize damage in a storm or to determine if computers or other electronics are located under sprinkler systems. Does your organization have a published plan that is reviewed annually with staff and volunteers related to procedures should there be a natural disaster, bomb threat, or fire? Who is responsible for what when an emergency occurs? What type of reporting takes place when someone incurs a work related injury or has an accident on your property? What have you done to minimize risk associated with activities which could result in litigation against your organization? Is there clutter or areas of storage that are potential fire hazards? What have you done to educate your leadership, staff and volunteers regarding ways to avoid potential ethical or conflict of interest concerns?
Have you addressed the potential “Mack Truck” problem? This is when you have a key employee, volunteer or vendor who you rely on so much that if they were hit by a truck and were unable to continue their involvement, your operations could be significantly impacted. Do you cross train staff? Are you prepared for the “Mack Truck” incident that takes away the one person who knows everything about your accounting, computer systems or service delivery? What insurance do you need? (liability, business interruption, property, automobile, travel, health, equipment or other potential losses, etc.) These are some of the issues that should be evaluated as part of your risk management assessment.
The time to be concerned and take action around risk management is before you have the problem. As the saying goes, “An ounce of prevention……….
By
Norman Olshansky, President: NFP Consulting Resources, Inc.
Over the past few years, increasing attention has been given to potential liability, mismanagement and ethical practices within the nonprofit sector. Whether as a result of the Sorbanes-Oxley Act of 2002 or more recent high profile ponzi schemes and fraud cases, boards and executives of nonprofit organizations have begun to put more focus on risk management.
A formal definition of risk management is: “the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities”.
When was the last time your organization conducted a serious risk management process?
While many of the prime areas of risk are related to finances, personal injury liability, and unforeseen disasters, there are many other areas of nonprofit operations and governance which can create risk for an organization.
The following are a few of the more common areas of risk which can be assessed and addressed:
1. Availability of Information for Decision Making
2. Billing and Collections
3. Business Expenses
4. Business interruption
5. Cash Management
6. Continuity/Disaster
7. Contract compliance
8. Copyright infringement
9. Corporate Governance
10. Data Security
11. Donor/member records
12. Donor/member recognition and benefits
13. Emergency preparedness
14. Facility Management
15. Financial Reporting
16. Fraud & Ethical Behavior
17. Fund Raising
18. Gift Acceptance
19. Harm to clients
20. Human Resources
21. Insurance/Risk
22. Investment policies
23. IT Infrastructure
24. Litigation Risk
25. Misfeasance/Malfeasance
26. Malpractice
27. Operational Quality Performance
28. Personnel/Volunteer Behavior
29. Regulatory Compliance
30. Related Party Transactions
31. Special Events
32. Storm damage
33. Subcontractor Utilization
34. Succession Planning
35. Tax Exempt Status
36. Transportation
37. Unrelated Business Income
38. Use of intellectual property
As you can see from the partial list above, there are many areas of potential concern. In most cases, it would be cost prohibitive and next to impossible to attempt to eliminate all risks in a nonprofit. However, depending on the type of organization and its operating issues, there are usually several high priority potential problem areas which should be addressed. The cost of prevention is usually a fraction of the cost of correction after the fact. Typically, discussions related to risk management are first initiated by financial advisors and/or auditors. However, the scope of their concern if often limited to financial issues.
There are risk management tools that can be used as part of a nonprofit organization’s annual audit process. The assessment is typically a comprehensive problem solving process that starts with an analysis of needs, prioritization of areas of concern, a recommendation on how to address those concerns and measurement of progress. Progress is only possible if the starting point is identified correctly and candidly. Nonprofits are asked to provide data for the baseline assessment - the more accurate the data, the greater the prospect of substantial improvement.
The assessment is administered again annually in order to assess impact. The assessment should be conducted by an external assessor which is why doing so, as part of an annual audit, is advantageous. By comparing year to year results, nonprofits can observe their progress and continually reduce the extent of risk in their organization.
Most auditors will address issues such as separation of duties related to bookkeeping and accounting, or documentation which is required in personnel files. However, a more thorough risk assessment will also include a review many other potential areas of concern.
Consider some of the following questions:
When was the last time you looked at your facilities to determine if they are safe and secure, if data is protected, how to minimize damage in a storm or to determine if computers or other electronics are located under sprinkler systems. Does your organization have a published plan that is reviewed annually with staff and volunteers related to procedures should there be a natural disaster, bomb threat, or fire? Who is responsible for what when an emergency occurs? What type of reporting takes place when someone incurs a work related injury or has an accident on your property? What have you done to minimize risk associated with activities which could result in litigation against your organization? Is there clutter or areas of storage that are potential fire hazards? What have you done to educate your leadership, staff and volunteers regarding ways to avoid potential ethical or conflict of interest concerns?
Have you addressed the potential “Mack Truck” problem? This is when you have a key employee, volunteer or vendor who you rely on so much that if they were hit by a truck and were unable to continue their involvement, your operations could be significantly impacted. Do you cross train staff? Are you prepared for the “Mack Truck” incident that takes away the one person who knows everything about your accounting, computer systems or service delivery? What insurance do you need? (liability, business interruption, property, automobile, travel, health, equipment or other potential losses, etc.) These are some of the issues that should be evaluated as part of your risk management assessment.
The time to be concerned and take action around risk management is before you have the problem. As the saying goes, “An ounce of prevention……….
Saturday, February 13, 2010
Major Gift Prospecting and Prioritization
By Norman Olshansky
One of the most important activities a nonprofit needs to undertake prior to initiating a major gifts campaign is the identification and prioritization of prospects. Some organizations spend a lot of money, time and human resources on prospect mining and research. Others try to identify pockets of wealth in their community and then determine what is the best way to contact and solicit those individuals.
For many organizations, I recommend the following simple and inexpensive technique to identify and prioritize major gift prospects.
The Task Group
The first step is to put together a group of individuals who are already committed to the organization and who have good relationships in the community. When recruited they are told that they are being asked to attend a single meeting to identify names of individuals in the community who could be helpful to the nonprofit. The group can be composed of the organization’s board, donors, volunteers, members, or a combination of individuals from all of these groups. In addition, if a fundraising committee or major gifts committee has already been established, they should also be encouraged to participate. I prefer to have no less than 8 people or more than 30 participate in the focus group meeting, which typically takes about one to one in a half hours. It is helpful to have a diverse group from the various geographic areas served by the nonprofit. You should also try to include individuals who have good connections to high net worth individuals through their volunteer, business and/or social relationships.
Brainstorming
At the meeting, participants are asked to identify any individual they know who is charitable and is capable of making a major gift of $25,000 (or whatever level is established by the organization as a major gift) The goal of brainstorming is to identify major donors so the larger the threshold the better. If too low, you will end up with so many names that it will be hard to prioritize. The emphasis of this exercise is to identify individuals (not corporations) who have major gift potential and will be cultivated and solicited face to face. This includes individuals who utilize private foundations or donor advised funds for their charitable giving. This exercise should not be used for identification of prospects to be solicited by direct mail or for targeting donors who can be solicited by phone or contribute by attending events
The facilitator then encourages people to call out names which are written on flip charts or on a large white board that can easily be read by all.
Once everyone has shared names that came to mind during the brainstorming (hopefully, at least 50 names), the facilitator hands out paper and pencils to all participants.
The Nominal Group Technique
Next the facilitator gives the following instructions. “Take a few minutes to look at all of the names on the brainstorming list and write down on your paper the three to five names which best meet the following criteria.
A. They have a history of being philanthropic
B. They have a history of making gifts at our major gifts level
C. They are likely to have an interest in our mission
D. They are accessible. You or others you know in our organization can get a meeting with them or invite them to visit with us.
After adequate time is given for participants to write down their three names, the facilitator goes around the room and asks each person to say aloud the three names. The facilitator puts a hash mark next to those names on the master brainstorming list. When a name is mentioned by more than one participant, additional hash marks are made each time that name is mentioned. Once everyone has announced their three names, the facilitator counts the cumulative hash marks for each name on the master list and circles the top 10 names that were mentioned the most. If it is difficult to narrow it down to 10 names, circle more than ten and initiate another round where participants now write down two of the circled names which they feel best meet the priority characteristics. Then continue the process of narrowing down the names based upon number of times mentioned. Ultimately, the facilitator’s goal is to narrow it down to no more than ten names.
(The nominal group technique can also be used to help with prioritization of any other type of brainstorming activity. The beauty of the process is that it involves all of the participants and provides a way to quickly measure and prioritize responses.)
Fact Finding
The last stage of the process is to ask for input from participants on each of the top ten prospects identified. The facilitator or someone else should take copious notes from the comments shared by the group on each of the ten prospects in response to the following questions.
A. Who in our organization knows this person and could be our key contact to invite them to learn more about what we do?
B. What other organizations are they involved with and what are their major philanthropic interests?
C. Do you know how much they have given to other charities?
D. Do they make their philanthropic gifts directly, through a foundation, donor advised fund, etc.
E. Is there anything you know about them that could help our staff or fundraising committee to engage them with us?
F. Do you personally know, have a relationship with, and have access to anyone who knows the individual and has a close relationship to him/her?
G. Is there anything you know that might lower the priority level of this prospect?
Follow up
In addition to thanking participants, the information learned should be conveyed in detail to staff and volunteers involved in major gift fundraising. Hopefully, your fundraising leadership and staff participate as well and use the session to identify additional volunteers, who attended the session, who can assist the committee going forward with prospect research, cultivation, and solicitation. The top ten names should be among the first prospects targeted as part of the major gifts initiative. After the initial priority names have been assigned and solicited, other names on the brainstorming list should also be approached in the order of the priority established, taking into consideration your ability to access and engage each prospect.
A similar process can be used to identify and prioritize corporate prospects. However, the type of individuals you will want in the Task Group may be different from those you select to focus on individual donor prospects.
One of the most important activities a nonprofit needs to undertake prior to initiating a major gifts campaign is the identification and prioritization of prospects. Some organizations spend a lot of money, time and human resources on prospect mining and research. Others try to identify pockets of wealth in their community and then determine what is the best way to contact and solicit those individuals.
For many organizations, I recommend the following simple and inexpensive technique to identify and prioritize major gift prospects.
The Task Group
The first step is to put together a group of individuals who are already committed to the organization and who have good relationships in the community. When recruited they are told that they are being asked to attend a single meeting to identify names of individuals in the community who could be helpful to the nonprofit. The group can be composed of the organization’s board, donors, volunteers, members, or a combination of individuals from all of these groups. In addition, if a fundraising committee or major gifts committee has already been established, they should also be encouraged to participate. I prefer to have no less than 8 people or more than 30 participate in the focus group meeting, which typically takes about one to one in a half hours. It is helpful to have a diverse group from the various geographic areas served by the nonprofit. You should also try to include individuals who have good connections to high net worth individuals through their volunteer, business and/or social relationships.
Brainstorming
At the meeting, participants are asked to identify any individual they know who is charitable and is capable of making a major gift of $25,000 (or whatever level is established by the organization as a major gift) The goal of brainstorming is to identify major donors so the larger the threshold the better. If too low, you will end up with so many names that it will be hard to prioritize. The emphasis of this exercise is to identify individuals (not corporations) who have major gift potential and will be cultivated and solicited face to face. This includes individuals who utilize private foundations or donor advised funds for their charitable giving. This exercise should not be used for identification of prospects to be solicited by direct mail or for targeting donors who can be solicited by phone or contribute by attending events
The facilitator then encourages people to call out names which are written on flip charts or on a large white board that can easily be read by all.
Once everyone has shared names that came to mind during the brainstorming (hopefully, at least 50 names), the facilitator hands out paper and pencils to all participants.
The Nominal Group Technique
Next the facilitator gives the following instructions. “Take a few minutes to look at all of the names on the brainstorming list and write down on your paper the three to five names which best meet the following criteria.
A. They have a history of being philanthropic
B. They have a history of making gifts at our major gifts level
C. They are likely to have an interest in our mission
D. They are accessible. You or others you know in our organization can get a meeting with them or invite them to visit with us.
After adequate time is given for participants to write down their three names, the facilitator goes around the room and asks each person to say aloud the three names. The facilitator puts a hash mark next to those names on the master brainstorming list. When a name is mentioned by more than one participant, additional hash marks are made each time that name is mentioned. Once everyone has announced their three names, the facilitator counts the cumulative hash marks for each name on the master list and circles the top 10 names that were mentioned the most. If it is difficult to narrow it down to 10 names, circle more than ten and initiate another round where participants now write down two of the circled names which they feel best meet the priority characteristics. Then continue the process of narrowing down the names based upon number of times mentioned. Ultimately, the facilitator’s goal is to narrow it down to no more than ten names.
(The nominal group technique can also be used to help with prioritization of any other type of brainstorming activity. The beauty of the process is that it involves all of the participants and provides a way to quickly measure and prioritize responses.)
Fact Finding
The last stage of the process is to ask for input from participants on each of the top ten prospects identified. The facilitator or someone else should take copious notes from the comments shared by the group on each of the ten prospects in response to the following questions.
A. Who in our organization knows this person and could be our key contact to invite them to learn more about what we do?
B. What other organizations are they involved with and what are their major philanthropic interests?
C. Do you know how much they have given to other charities?
D. Do they make their philanthropic gifts directly, through a foundation, donor advised fund, etc.
E. Is there anything you know about them that could help our staff or fundraising committee to engage them with us?
F. Do you personally know, have a relationship with, and have access to anyone who knows the individual and has a close relationship to him/her?
G. Is there anything you know that might lower the priority level of this prospect?
Follow up
In addition to thanking participants, the information learned should be conveyed in detail to staff and volunteers involved in major gift fundraising. Hopefully, your fundraising leadership and staff participate as well and use the session to identify additional volunteers, who attended the session, who can assist the committee going forward with prospect research, cultivation, and solicitation. The top ten names should be among the first prospects targeted as part of the major gifts initiative. After the initial priority names have been assigned and solicited, other names on the brainstorming list should also be approached in the order of the priority established, taking into consideration your ability to access and engage each prospect.
A similar process can be used to identify and prioritize corporate prospects. However, the type of individuals you will want in the Task Group may be different from those you select to focus on individual donor prospects.
Tuesday, February 2, 2010
Tips on Volunteer Leadership Succession for Nonprofits
By Norman Olshansky
Leadership succession planning in nonprofit organizations is a critical and high stakes endeavor. Too often nonprofit organizations struggle to fill vacant top leadership positions. The consequences of poor succession planning can be devastating.
Every organization has a unique culture and history. When there is a lack of succession planning, organizations find it difficult to fill positions and often recruit individuals to serve in key roles who have minimal experience, few leadership skills or history with the organization. Problems often develop when new leaders are asked to take on major leadership roles without significant prior involvement within the organization. Relationships can become problematic between new leaders, key staff and past leaders.
This article focuses on the Volunteer President/Chair of the Board position. (Chair) Even the most extraordinary nonprofit President/CEO/Executive Director (ED) cannot achieve the organization’s fullest potential without a good board chair. All major leadership positions (Officers, Committee Chairs such as Development, Planning, Marketing, Finance, Program, etc.) are similarly impacted. The following are recommendations I often make as a consultant to nonprofit organizations related to succession planning:
1. Bylaws
The bylaws of the nonprofit should be clear regarding the organization’s leadership structure, process for nominations, elections, and responsibilities of leadership.
2. Job Descriptions
Nonprofits should have a clear and realistic job description for each leadership position that outlines the duties, responsibilities and expectations for each position.
3. Governance/Nominating Committee
A governance/nominating committee should be tasked with the responsibility to identify potential candidates for leadership positions, interview those candidates, review roles and responsibilities with the candidates and obtain their permission to submit their names for consideration for leadership positions within the nonprofit. This committee should obtain input from leadership and staff in order to determine the type of skills, experience and leadership that is most needed to address the current and future needs of the organization. Determining where the current gaps are and how to develop existing leadership in addition to determining who to recruit, should also be part of the charge of the governance/nominating committee. While being considered, the candidates should be provided with an opportunity to meet with existing leadership and key staff to learn more about the expectations of the position.
More on this process can be found at http://nfpconsulting.blogspot.com See article titled “How to Develop a Strong Fundraising Board”
4. Performance Tracking
The ability of the governance/nominating committee to be successful will be greatly enhanced if the nonprofit has a system in place to track the involvement, relationships and performance of volunteers and supporters. The more information made available to the committee, the better they can identify and recruit the best potential candidates.
5. Orientation
Once the positions are filled, there should be a formal orientation process and where possible, the assignment of a seasoned veteran leader to act as a mentor for each new leader.
6. Chair/ED Consultation Input
Both the current Board Chair and ED should be consulted for input throughout the process and play a major role in the orientation of new leadership.
7. Chair/ED Working Relationship
After the election and preferably before the new term begins, the new Chair and ED should meet privately and discuss how they can best work together. This is a time to review in more depth any special needs or suggestions either has related to their working relationship, style, frequency of meetings, best ways to communicate, immediate priorities, etc. This meeting is an important start to the development of the lay/professional partnership between the new Chair and ED.
8. V.P./President Elect
I often recommend when each new Board Chair is identified, that a V.P. be identified as the individual to be groomed to be the next Board Chair. Often the by-laws identify one position on the Executive Committee as President Elect which accomplishes the same goal. During the course of the Board Chair’s term of office, the individual being groomed (the President Elect), becomes a key player on the Exec Committee and Board, acts in the absence of the Board Chair and is encouraged to attend as many key meetings as possible related to planning, problem solving, community affairs, etc. The time they serve next to the Board Chair provides an opportunity for in-depth mentoring, education and hopefully, a smoother and easier transition upon moving up to the Chairmanship. During the time being mentored a determination can be made of the strengths of the next Chair and what areas of knowledge or leadership he/she will need to further develop prior to beginning their term as Chair.
9. Past Chair
The outgoing Board Chair is often overlooked as part of succession planning. Many organizations keep the outgoing chair on the Executive committee and board for one additional term in an official “Past Chair” position. Past Chairs who so desire, can be a tremendous asset to the organization following their time in the leadership position. However, there can be problems if the transition is not handled well. The extent of involvement of the past chair is usually determined by the new Chair. Often the new Chair wants to establish their own identity and will want the past chair to play more of a behind the scenes role. Other new Chairs seek out and encourage past chairs to play a more active role.
10. Past Chair Transition
The transition out of the Chair position can be a difficult time for the individual. In most cases they have been heavily involved with the organization for many years and it has become a major part of their lives. I have seen outgoing chairs struggle with the sudden loss of intimate involvement with the organization. They miss the frequent contact and counsel with the staff and other leadership. They miss being the “go to” person or visible leader for the organization. How an organization handles those leaving a key position is just as critical as how new leaders are handled. It’s an important aspect of an organization’s overall volunteer human resource and stewardship process. Often the ED is the person who has the closest relationship with the outgoing Chair and needs to be actively involved in the transition and stewardship process.
11. Recognition and Stewardship
All outgoing leaders need to be recognized for their contributions to the organization and be part of an ongoing stewardship program.
When a nonprofit utilizes a well planned and implemented leadership succession process it sets the course toward future success.
Norman Olshansky, President of NFP Consulting Resources, has over 30 years of professional and executive level leadership and consulting within both the not for profit and for profit sectors. He is a past board member of the Association of Fundraising Professionals Southwest Florida Chapter, is an AFP mentor, and presenter at AFP seminars. His clients have included both large and small service, health, cultural and faith based organizations ranging from local and national home health care companies, to hospitals and health care systems...from community centers to national membership organizations...from military and law enforcement agencies to botanical gardens...from public school systems to State Universities...from human relations organizations to faith based social service and religious entities throughout the U.S., Canada and Israel.
Mr. Olshansky has received national recognition for his articles on nonprofit leadership, fundraising and management as well as for his work in human service and executive leadership. He has been a frequent lecturer at several Universities, is a national book reviewer and instructor for CharityChannel.com, and is active as a volunteer in several civic, religious and professional organizations. Additional articles written by Mr. Olshansky can be found at http://nfpconsulting.blogspot.com .
Leadership succession planning in nonprofit organizations is a critical and high stakes endeavor. Too often nonprofit organizations struggle to fill vacant top leadership positions. The consequences of poor succession planning can be devastating.
Every organization has a unique culture and history. When there is a lack of succession planning, organizations find it difficult to fill positions and often recruit individuals to serve in key roles who have minimal experience, few leadership skills or history with the organization. Problems often develop when new leaders are asked to take on major leadership roles without significant prior involvement within the organization. Relationships can become problematic between new leaders, key staff and past leaders.
This article focuses on the Volunteer President/Chair of the Board position. (Chair) Even the most extraordinary nonprofit President/CEO/Executive Director (ED) cannot achieve the organization’s fullest potential without a good board chair. All major leadership positions (Officers, Committee Chairs such as Development, Planning, Marketing, Finance, Program, etc.) are similarly impacted. The following are recommendations I often make as a consultant to nonprofit organizations related to succession planning:
1. Bylaws
The bylaws of the nonprofit should be clear regarding the organization’s leadership structure, process for nominations, elections, and responsibilities of leadership.
2. Job Descriptions
Nonprofits should have a clear and realistic job description for each leadership position that outlines the duties, responsibilities and expectations for each position.
3. Governance/Nominating Committee
A governance/nominating committee should be tasked with the responsibility to identify potential candidates for leadership positions, interview those candidates, review roles and responsibilities with the candidates and obtain their permission to submit their names for consideration for leadership positions within the nonprofit. This committee should obtain input from leadership and staff in order to determine the type of skills, experience and leadership that is most needed to address the current and future needs of the organization. Determining where the current gaps are and how to develop existing leadership in addition to determining who to recruit, should also be part of the charge of the governance/nominating committee. While being considered, the candidates should be provided with an opportunity to meet with existing leadership and key staff to learn more about the expectations of the position.
More on this process can be found at http://nfpconsulting.blogspot.com See article titled “How to Develop a Strong Fundraising Board”
4. Performance Tracking
The ability of the governance/nominating committee to be successful will be greatly enhanced if the nonprofit has a system in place to track the involvement, relationships and performance of volunteers and supporters. The more information made available to the committee, the better they can identify and recruit the best potential candidates.
5. Orientation
Once the positions are filled, there should be a formal orientation process and where possible, the assignment of a seasoned veteran leader to act as a mentor for each new leader.
6. Chair/ED Consultation Input
Both the current Board Chair and ED should be consulted for input throughout the process and play a major role in the orientation of new leadership.
7. Chair/ED Working Relationship
After the election and preferably before the new term begins, the new Chair and ED should meet privately and discuss how they can best work together. This is a time to review in more depth any special needs or suggestions either has related to their working relationship, style, frequency of meetings, best ways to communicate, immediate priorities, etc. This meeting is an important start to the development of the lay/professional partnership between the new Chair and ED.
8. V.P./President Elect
I often recommend when each new Board Chair is identified, that a V.P. be identified as the individual to be groomed to be the next Board Chair. Often the by-laws identify one position on the Executive Committee as President Elect which accomplishes the same goal. During the course of the Board Chair’s term of office, the individual being groomed (the President Elect), becomes a key player on the Exec Committee and Board, acts in the absence of the Board Chair and is encouraged to attend as many key meetings as possible related to planning, problem solving, community affairs, etc. The time they serve next to the Board Chair provides an opportunity for in-depth mentoring, education and hopefully, a smoother and easier transition upon moving up to the Chairmanship. During the time being mentored a determination can be made of the strengths of the next Chair and what areas of knowledge or leadership he/she will need to further develop prior to beginning their term as Chair.
9. Past Chair
The outgoing Board Chair is often overlooked as part of succession planning. Many organizations keep the outgoing chair on the Executive committee and board for one additional term in an official “Past Chair” position. Past Chairs who so desire, can be a tremendous asset to the organization following their time in the leadership position. However, there can be problems if the transition is not handled well. The extent of involvement of the past chair is usually determined by the new Chair. Often the new Chair wants to establish their own identity and will want the past chair to play more of a behind the scenes role. Other new Chairs seek out and encourage past chairs to play a more active role.
10. Past Chair Transition
The transition out of the Chair position can be a difficult time for the individual. In most cases they have been heavily involved with the organization for many years and it has become a major part of their lives. I have seen outgoing chairs struggle with the sudden loss of intimate involvement with the organization. They miss the frequent contact and counsel with the staff and other leadership. They miss being the “go to” person or visible leader for the organization. How an organization handles those leaving a key position is just as critical as how new leaders are handled. It’s an important aspect of an organization’s overall volunteer human resource and stewardship process. Often the ED is the person who has the closest relationship with the outgoing Chair and needs to be actively involved in the transition and stewardship process.
11. Recognition and Stewardship
All outgoing leaders need to be recognized for their contributions to the organization and be part of an ongoing stewardship program.
When a nonprofit utilizes a well planned and implemented leadership succession process it sets the course toward future success.
Norman Olshansky, President of NFP Consulting Resources, has over 30 years of professional and executive level leadership and consulting within both the not for profit and for profit sectors. He is a past board member of the Association of Fundraising Professionals Southwest Florida Chapter, is an AFP mentor, and presenter at AFP seminars. His clients have included both large and small service, health, cultural and faith based organizations ranging from local and national home health care companies, to hospitals and health care systems...from community centers to national membership organizations...from military and law enforcement agencies to botanical gardens...from public school systems to State Universities...from human relations organizations to faith based social service and religious entities throughout the U.S., Canada and Israel.
Mr. Olshansky has received national recognition for his articles on nonprofit leadership, fundraising and management as well as for his work in human service and executive leadership. He has been a frequent lecturer at several Universities, is a national book reviewer and instructor for CharityChannel.com, and is active as a volunteer in several civic, religious and professional organizations. Additional articles written by Mr. Olshansky can be found at http://nfpconsulting.blogspot.com .
Tuesday, January 5, 2010
Nonprofits and PEO's
Nonprofits and Professional Employer Organizations (PEO)
Norman Olshansky: President
NFP Consulting Resources, Inc.
If you are a leader or an executive with a nonprofit organization and are unfamiliar with PEO’s, you may want to check them out.
Personnel costs are usually among the largest expense items for nonprofit organizations. While fundraising and revenue enhancement activities are the primary keys to sustainability, nonprofits also need to constantly address areas related to cost containment. In order to preserve programs and services, personnel benefits are often the first areas to be cut. Before you make those cuts, check out the potential savings offered through the use of a PEO.
You may have heard about PEO's in the past when they were known as employee leasing companies. PEO’s are not a temp firm, a staffing agency, or placement agency. You retain full control over your employees while the PEO handles payroll, payroll taxes, workers comp, benefit management, retirement services, government compliance, and liability management. You pay them a fee, provide them with your payroll information and they handle the rest.
PEO’s provides a service that allows your organization to outsource many of your human resource functions. Their size enables them to offer a package of benefits for your employees at a much lower cost than you and/or your employees may currently be paying. There is an economy of scale that they can provide that few nonprofits can match on their own. Simply stated, when you engage a PEO, they take over the administrative and compliance components of your human resources. Nonprofits can compete with national associations and Fortune 500 companies for the benefits needed to recruit and retain quality employees.
PEO’s provide you with employee handbooks, give guidance on employee policies and work with you to make sure you are in compliance with all local, state and federal fair labor, ADA and employment regulations. PEO’s offer many choices of packages to offer your employees.
I have found that you need to have at least 8-10 employees for the direct cost saving benefits to be significant. In addition to the cost savings, use of a PEO frees up your existing staff, who handle payroll and HR, from many of their regular duties and provides you with an additional level of expertise and guidance on HR issues.
Norman Olshansky: President
NFP Consulting Resources, Inc.
If you are a leader or an executive with a nonprofit organization and are unfamiliar with PEO’s, you may want to check them out.
Personnel costs are usually among the largest expense items for nonprofit organizations. While fundraising and revenue enhancement activities are the primary keys to sustainability, nonprofits also need to constantly address areas related to cost containment. In order to preserve programs and services, personnel benefits are often the first areas to be cut. Before you make those cuts, check out the potential savings offered through the use of a PEO.
You may have heard about PEO's in the past when they were known as employee leasing companies. PEO’s are not a temp firm, a staffing agency, or placement agency. You retain full control over your employees while the PEO handles payroll, payroll taxes, workers comp, benefit management, retirement services, government compliance, and liability management. You pay them a fee, provide them with your payroll information and they handle the rest.
PEO’s provides a service that allows your organization to outsource many of your human resource functions. Their size enables them to offer a package of benefits for your employees at a much lower cost than you and/or your employees may currently be paying. There is an economy of scale that they can provide that few nonprofits can match on their own. Simply stated, when you engage a PEO, they take over the administrative and compliance components of your human resources. Nonprofits can compete with national associations and Fortune 500 companies for the benefits needed to recruit and retain quality employees.
PEO’s provide you with employee handbooks, give guidance on employee policies and work with you to make sure you are in compliance with all local, state and federal fair labor, ADA and employment regulations. PEO’s offer many choices of packages to offer your employees.
I have found that you need to have at least 8-10 employees for the direct cost saving benefits to be significant. In addition to the cost savings, use of a PEO frees up your existing staff, who handle payroll and HR, from many of their regular duties and provides you with an additional level of expertise and guidance on HR issues.
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