Professional Development Through Peer Engagement
Nonprofit Professional Development:
Stretch Your Strategic Capabilities through Peer Engagement
By Norman Olshansky: President
NFP Consulting Resources, Inc.
A true professional is always looking for ways to improve their practice, to be more effective and to keep abreast of new trends which could affect their work. Nonprofit professional work can often be lonely, with few opportunities to exchange ideas with others who have similar backgrounds and responsibilities. While there are many online networks and professional associations, they are usually accessed from a “distance” and opportunities to attend conferences and seminars, for face to face exchanges are often limited due to distance and cost.
Some have found mentors with whom they can truly let their hair down and confidentially discuss the issues and challenges they face professionally and personally as part of their nonprofit work. Unfortunately, too few are able to engage in such a relationship.
For many years I have been intrigued by The Executive Committee (TEC) groups within the for profit world. TEC has been around since 1957. Its successor organization is Vistage International. (http://www.vistage.com/)
Groups of CEO’s or other similarly employed corporate executives are assigned a facilitator/coach who meets with the group monthly for a full day and with each individual member of the group in between group meetings for a two hour session. The facilitator/coach is also available by phone and email for support. Groups also participate in multiple workshops during the year with expert Vistage resource speakers.
Needless to say, the program is expensive. They charge about $12,000/year per participant. Wouldn’t it be helpful if we created a similar model for the nonprofit sector, (but less involved and expensive). Why couldn’t a local Nonprofit Executive Group, Fundraising, CFO, Grantwriting, Marketing or other focus group of professionals be formed in your city or region. Individuals who participate should be serious about wanting to learn and grow and be willing/able to take the time necessary to participate.
Each group should be no larger than 8-10 individuals. While we may not need to be as time intensive as the TEC groups, participants should make the commitment of time and engagement a high priority, if it is to be successful. The participants learn from each other in addition to the input from the coach/facilitator. Speakers can be brought into the group meetings periodically to focus on areas the group wants to address. The group members bond with each other and are in touch with each other between meetings for additional supports and help with problem solving.
The participants determine what needs to be discussed, what skills and resources can be shared and what topics should be covered. Topics often go beyond best practice exchanges, skill development and/or knowledge subjects. The groups can be helpful with each other on issues related to personnel, interpersonal relations, time management, supervision, self motivation and so much more. Sessions can cover any or all aspects of nonprofit leadership and management based upon the needs of the participants. Ground rules for participation need to be developed and enforced related to attendance, who can participate, doing homework, confidentiality and financial commitment.
Ideally the group should hire a facilitator/consultant to provide leadership, organize sessions and guest speakers. The ideal facilitator/consultant could also act as a coach, be in touch with participants between meetings and enhance the quality of participation based on their own expertise and reputation within the nonprofit community. The cost of the facilitator/consultant could be shared by the participants.
Given the value of such groups, local foundations/funders may see this as a tremendous opportunity to promote capacity building and professional leadership development.
Whether it be though ongoing mentoring, coaching or “TEC” style experiences, professional development needs to be a high priority for all of us involved professionally within the nonprofit sector.
Tuesday, March 3, 2009
Nonprofit Lexicon
My work as a nonprofit consultant and fundraiser has enabled me to work with a wide range of individuals and organizations from the very sophisticated to the neophite. Frequently I will work with people (volunteers and professionals)who are not familiar with some of the nonprofit management and fundraising language which I use. I decided several years ago to create a lexicon of nonprofit terms which I could share with my clients and those with whom I worked. I didn't want to produce a dictionary but rather, explanations that could be easily shared and understood.
In an effort to improve on my initial lexicon, I have posted it here so that readers can make suggestions for additions, changes, clarifications etc. Your input will be greatly appreciated. Comments can be sent directly to NFPConsultingResources@gmail.com
Norman Olshansky’s Nonprofit Fundraising Lexicon
501(c)(3): Organizations which qualify with the U.S. Department of the Treasury (IRS)that are nonprofit entities to which contributions are tax deductible to the extent permitted by law.
501(c)(4): Organizations which qualify with the U.S. Department of the Treasury (IRS)that are community or fraternal organizations that are not solely charitable.
80/20 Rule: 80% of dollars raised are obtained from 20% of all donors who contribute. For capital, endowment and major gift campaigns the relationship is often 90/10.
990/Form: An Internal Revenue Service form that public charities must file each year to prove compliance with tax laws.
Advanced Leadership Gift Phase of Capital Campaign:(Quiet Phase) Initial effort of campaign directed at the top prospects-those capable of giving major gifts in the 5, 6, and 7figure category. This is a targeted phase of the campaign and does not involve mass solicitations. The campaign is focused on face-to-face solicitations of the top 100 prospects
AGI (Adjusted Gross Income): includes income from salary and wages, investments and capital gains.
ASK: The request for a contribution or pledge. Most effective ask is when adequate research has been conducted on the prospect and a specific amount is presented for the prospect to consider. See article on major gift solicitation at http://nfpconsulting.blogspot.com
Assets: The amount of capital or principal money, stocks, bonds, real estate or other resources controlled by a person, association, corporation or foundation. Generally, in the case of foundations, assets are invested and the income is used to make grants.
Bequest: A gift of assets made at death by an individual through a will or trust.
Campaign Division: Group of volunteers who have been assigned to a targeted area or group of donors during the general Campaign, i.e. employee division, business division, physicians, neighborhood, etc.
Capital Campaign: A substantial fundraising effort intended to provide for major organizational needs, such as buildings, endowments or other major expenses.
Case Statement: What the campaign is all about....Features, benefits, Why, When, What, How
Charitable Lead Trust: This trust provides an income stream to a charity for a specified period of time. At the end of that period, trust assets are distributed to non charitable beneficiaries such as children or grandchildren. The donor is able to make gifts of assets to his/her heirs at favorable gift tax rates and remove assets from his/her estate while benefiting his/her favorite charity.
Charitable Remainder Trust: This trust provides an income stream to non charitable beneficiaries for a period of time. These beneficiaries can include the donor, his/her spouse, and/or their children. At the end of that period, the trust assets are distributed to a charity. The donor receives an immediate tax deduction, removes assets from his/her estate (thus eliminating estate taxes on those assets) and often increases the income stream produced by those assets while ultimately benefiting his/her favorite charity.
Community Foundation: A tax-exempt public organization serving a specific geographic area which raises funds, provides grants to nonprofit organizations and enables residents of that area to establish funds for charitable giving without the costs of establishing separate private foundations.
Corporate Foundation: A private philanthropic organization set up and funded by a corporation.
Corporation: A company or business which makes their contribution from their annual budget/revenues
Deferred Gift: A gift which is part of estate planning, trusts, annuities, bequest, etc. that is designated to the campaign but will not be available for use until after a set number of years or upon the donor’s death. Also known as a Planned Gift.
Designated Funds: A fund that is typically created to ensure that support will be provided to one or more specific charitable activities named by the donor. Designated funds often are endowed in perpetuity with the income used to support the organizations on an ongoing basis.
Donor: An individual or organization that makes a pledge, grant or contribution to the nonprofit.
Donor Advised Funds: A flexible tool for charitable giving, operating much like a personal or family foundation. Donors can contribute to their fund when it is most convenient and then recommend gifts over time to nonprofit organizations of their choice. The donor selects a fund name and investment strategy and then makes grants to organizations committed to the causes he or she cares about. Donors sometimes involve their children and grandchildren to share in a family tradition of giving. Typically donor advised funds are administered by Community Foundations. Also known as Philanthropic Funds.
Endowment: Money donated with the intention that it be invested to generate income for philanthropic purposes. The donor may require that the principal remain intact for a specific period of time or in perpetuity.
Field of Interest Funds: Donors can support an area of charitable interest, defined broadly (such as education) or narrowly (such as advanced vocal music training). Donors also can select a defined geographic area or specific community to benefit from their named fund. A donor would then establish a process to make gifts to organizations or projects doing work in this area. The donor can stay involved, appoint an advisory committee or leave the work to agency staff.
Foundation: A not for profit organization which is set up by individual, family, community or business for the purpose of distributing charitable gifts
General Campaign: Following the Advanced Leadership Gift Phase of a capital campaign, a broader campaign will take place, which goes out to specific constituencies (employees, doctors, businesses, geographic areas, Foundations, etc.) and then to the general public
Gift: Payment of cash, real property, irrevocable trusts, etc.
Gift Chart/Pyramid: Chart which shows how many prospects and closed gifts are needed at each level of giving to achieve a fundraising goal
Grant: An amount of money given to an organization or person in order to perform charitable exempt activities.
Grantee: The recipient of a grant. (Also known as the grant recipient or beneficiary.)
Grant Monitoring: Continuing evaluation of the progress of the programs funded by a donor in order to determine if the terms and conditions of the grant are being met and if the objectives of the grant are
being achieved.
In-kind Contribution: A contribution of equipment, supplies or other tangible resource as distinguished from monetary contribution. Some organizations also may donate the use of space or staff time as an in-kind contribution.
Letter of Intent: Signed, written document which details the level of gift, payment schedule, intentions, conditions, naming preferences, etc. of the donor
Leverage: A method of grant making designed to attract additional funding. Leverage occurs when an amount of money is given with the express purpose of attracting larger funding from other sources or of providing the organization with the tools it needs to raise other kinds of funds. Sometimes known as the "multiplier effect".
Life Income Plans: Planned gift arrangements offer a current income stream and a current tax deduction to the donor in exchange for an irrevocable commitment to a charitable purpose or purposes at some later date. The result may be an increase in current expendable income for a donor.
Major Gifts: Individual, Corporate or Foundation pledges and contributions of $????? and up which are paid off within agreed upon timeline. (Amount of gift varies from organization to organization based upon giving history and size of campaign goal.)
Mission Statement: A mission statement reflects an organization's core values and reason(s) for existing. It should capture what an organization does, why it does it, how it does it and for whom it does it. A mission statement broadly addresses the current and future purpose(s) of the organization.
Naming/Dedicatory Opportunity: Those physical buildings, rooms, structures, endowments, programs, etc. which have been assigned a dollar value which can be so identified with donors who contribute an amount equal to the designation. In addition to overall recognition, those who contribute for specific naming opportunities may have a plaque or other forms of recognition adjacent to their selection indicating the name of the donor and/or if it is a memorial or honorial gift
Planned Gift: See deferred gift above
Pledge: An amount that the donor agrees to contribute over a period of time or by a certain date
Principal: The dollar value of an asset. When used in relation to an endowment, it means the sum of the dollar values of all gifts to the endowment using the dollar value of each gift on the day the gift was completed.
Private Foundation: A 501(c)(3) organization that is originally funded from one source, that derives revenue from its earnings on investments and that makes grants to other charitable organizations as opposed to administering its own programs.
Prospect: An individual, Foundation, or Corporation who is identified as having capacity and
assigned for a solicitation
Rating: The dollar amount that is determined by the solicitor, leadership, and staff to be presented to the prospect for their consideration
Receipt: An official requirement for charities to acknowledge, with the amount, all gifts over $250 from any donor within the calendar year. Most charities provide a written acknowledgment for all gifts
Restricted Funds: Monies that must be used for a specific purpose or in a specific way by the recipient
RFP: An acronym for Request for Proposal. When the government or other organizations issue a new contract or grant program, it sends out RFPs to individuals, agencies or organizations that might be qualified to participate. The RFP lists project specifications and application procedures. While a few foundations occasionally use RFPs in specific fields, most prefer to consider proposals that are initiated by applicants or their own leadership.
ROI: Return on Investment - The value of effort when taking into account the time and cost of planning and producing the activity. For example:
Fundraising Costs and Return on Investment – National Averages
Method Cost Return on Investment
Direct mail to general lists (non donors) 115% -15%
Special Events 50% 50%
Planned Giving 25% 75%
Direct mail to prior donors 20% 80%
Foundations/Corporations 20% 80%
Major Gifts 5-10% 90-95%
National Average, all methods: 20% 80%
(Based on: James Greenfield, Fund-Raising: Evaluating and Managing the Fund
Development Process) See article “Fundraising Return on Investment” at http://nfpconsulting.blogspot.com
Site Visit: The donor or grantor's visit to the physical location of a grantee to meet with the grantee's staff, directors and/or clients. Often the grantor conducts an informal evaluation during this time.
Solicitation: The process (meeting) which takes place between the solicitor and the prospect at which time the request for support is made
Solicitor: The person who is assigned to ask someone to support the campaign
Steering Committee: The group of volunteer leaders who have been selected to oversee the overall Campaign
Stock Power Form: A form that transfers authority for transactions involving a stock from one party to another.
Suspect: An individual, Foundation, or Corporation who is identified as having capacity
Tax Exemption: IRS provides tax deductions for valid gifts to nonprofit organizations. Donors may not take deductions for gifts where they receive a benefit from the charity. For example, monies paid for a cruise or paid for a purchase at a charity auction would not be deductible even if the check for the cruise were made out to the charity. Monies paid “over” the fair market value are deductible.
Trust: A legal device used to set aside assets of one individual for the benefit of one or more persons or organizations.
Unrestricted Funds: Funds that allow the nonprofit to determine where grants will do the most good. Unrestricted funds offer maximum flexibility to react to changing needs in the community.
Venture Philanthropy: A model for charitable giving that arose in the 1990s, based on venture capitalism in the business world. The funder "invests" not just money but energy and expertise in the nonprofits they support. Generally, donors track their donations just as venture capitalists follow their investments with nonprofits asked to provide evidence of results and impact on a regular basis. Venture philanthropy is often associated with "new wealth" individuals and high tech entrepreneurs.
In an effort to improve on my initial lexicon, I have posted it here so that readers can make suggestions for additions, changes, clarifications etc. Your input will be greatly appreciated. Comments can be sent directly to NFPConsultingResources@gmail.com
Norman Olshansky’s Nonprofit Fundraising Lexicon
501(c)(3): Organizations which qualify with the U.S. Department of the Treasury (IRS)that are nonprofit entities to which contributions are tax deductible to the extent permitted by law.
501(c)(4): Organizations which qualify with the U.S. Department of the Treasury (IRS)that are community or fraternal organizations that are not solely charitable.
80/20 Rule: 80% of dollars raised are obtained from 20% of all donors who contribute. For capital, endowment and major gift campaigns the relationship is often 90/10.
990/Form: An Internal Revenue Service form that public charities must file each year to prove compliance with tax laws.
Advanced Leadership Gift Phase of Capital Campaign:(Quiet Phase) Initial effort of campaign directed at the top prospects-those capable of giving major gifts in the 5, 6, and 7figure category. This is a targeted phase of the campaign and does not involve mass solicitations. The campaign is focused on face-to-face solicitations of the top 100 prospects
AGI (Adjusted Gross Income): includes income from salary and wages, investments and capital gains.
ASK: The request for a contribution or pledge. Most effective ask is when adequate research has been conducted on the prospect and a specific amount is presented for the prospect to consider. See article on major gift solicitation at http://nfpconsulting.blogspot.com
Assets: The amount of capital or principal money, stocks, bonds, real estate or other resources controlled by a person, association, corporation or foundation. Generally, in the case of foundations, assets are invested and the income is used to make grants.
Bequest: A gift of assets made at death by an individual through a will or trust.
Campaign Division: Group of volunteers who have been assigned to a targeted area or group of donors during the general Campaign, i.e. employee division, business division, physicians, neighborhood, etc.
Capital Campaign: A substantial fundraising effort intended to provide for major organizational needs, such as buildings, endowments or other major expenses.
Case Statement: What the campaign is all about....Features, benefits, Why, When, What, How
Charitable Lead Trust: This trust provides an income stream to a charity for a specified period of time. At the end of that period, trust assets are distributed to non charitable beneficiaries such as children or grandchildren. The donor is able to make gifts of assets to his/her heirs at favorable gift tax rates and remove assets from his/her estate while benefiting his/her favorite charity.
Charitable Remainder Trust: This trust provides an income stream to non charitable beneficiaries for a period of time. These beneficiaries can include the donor, his/her spouse, and/or their children. At the end of that period, the trust assets are distributed to a charity. The donor receives an immediate tax deduction, removes assets from his/her estate (thus eliminating estate taxes on those assets) and often increases the income stream produced by those assets while ultimately benefiting his/her favorite charity.
Community Foundation: A tax-exempt public organization serving a specific geographic area which raises funds, provides grants to nonprofit organizations and enables residents of that area to establish funds for charitable giving without the costs of establishing separate private foundations.
Corporate Foundation: A private philanthropic organization set up and funded by a corporation.
Corporation: A company or business which makes their contribution from their annual budget/revenues
Deferred Gift: A gift which is part of estate planning, trusts, annuities, bequest, etc. that is designated to the campaign but will not be available for use until after a set number of years or upon the donor’s death. Also known as a Planned Gift.
Designated Funds: A fund that is typically created to ensure that support will be provided to one or more specific charitable activities named by the donor. Designated funds often are endowed in perpetuity with the income used to support the organizations on an ongoing basis.
Donor: An individual or organization that makes a pledge, grant or contribution to the nonprofit.
Donor Advised Funds: A flexible tool for charitable giving, operating much like a personal or family foundation. Donors can contribute to their fund when it is most convenient and then recommend gifts over time to nonprofit organizations of their choice. The donor selects a fund name and investment strategy and then makes grants to organizations committed to the causes he or she cares about. Donors sometimes involve their children and grandchildren to share in a family tradition of giving. Typically donor advised funds are administered by Community Foundations. Also known as Philanthropic Funds.
Endowment: Money donated with the intention that it be invested to generate income for philanthropic purposes. The donor may require that the principal remain intact for a specific period of time or in perpetuity.
Field of Interest Funds: Donors can support an area of charitable interest, defined broadly (such as education) or narrowly (such as advanced vocal music training). Donors also can select a defined geographic area or specific community to benefit from their named fund. A donor would then establish a process to make gifts to organizations or projects doing work in this area. The donor can stay involved, appoint an advisory committee or leave the work to agency staff.
Foundation: A not for profit organization which is set up by individual, family, community or business for the purpose of distributing charitable gifts
General Campaign: Following the Advanced Leadership Gift Phase of a capital campaign, a broader campaign will take place, which goes out to specific constituencies (employees, doctors, businesses, geographic areas, Foundations, etc.) and then to the general public
Gift: Payment of cash, real property, irrevocable trusts, etc.
Gift Chart/Pyramid: Chart which shows how many prospects and closed gifts are needed at each level of giving to achieve a fundraising goal
Grant: An amount of money given to an organization or person in order to perform charitable exempt activities.
Grantee: The recipient of a grant. (Also known as the grant recipient or beneficiary.)
Grant Monitoring: Continuing evaluation of the progress of the programs funded by a donor in order to determine if the terms and conditions of the grant are being met and if the objectives of the grant are
being achieved.
In-kind Contribution: A contribution of equipment, supplies or other tangible resource as distinguished from monetary contribution. Some organizations also may donate the use of space or staff time as an in-kind contribution.
Letter of Intent: Signed, written document which details the level of gift, payment schedule, intentions, conditions, naming preferences, etc. of the donor
Leverage: A method of grant making designed to attract additional funding. Leverage occurs when an amount of money is given with the express purpose of attracting larger funding from other sources or of providing the organization with the tools it needs to raise other kinds of funds. Sometimes known as the "multiplier effect".
Life Income Plans: Planned gift arrangements offer a current income stream and a current tax deduction to the donor in exchange for an irrevocable commitment to a charitable purpose or purposes at some later date. The result may be an increase in current expendable income for a donor.
Major Gifts: Individual, Corporate or Foundation pledges and contributions of $????? and up which are paid off within agreed upon timeline. (Amount of gift varies from organization to organization based upon giving history and size of campaign goal.)
Mission Statement: A mission statement reflects an organization's core values and reason(s) for existing. It should capture what an organization does, why it does it, how it does it and for whom it does it. A mission statement broadly addresses the current and future purpose(s) of the organization.
Naming/Dedicatory Opportunity: Those physical buildings, rooms, structures, endowments, programs, etc. which have been assigned a dollar value which can be so identified with donors who contribute an amount equal to the designation. In addition to overall recognition, those who contribute for specific naming opportunities may have a plaque or other forms of recognition adjacent to their selection indicating the name of the donor and/or if it is a memorial or honorial gift
Planned Gift: See deferred gift above
Pledge: An amount that the donor agrees to contribute over a period of time or by a certain date
Principal: The dollar value of an asset. When used in relation to an endowment, it means the sum of the dollar values of all gifts to the endowment using the dollar value of each gift on the day the gift was completed.
Private Foundation: A 501(c)(3) organization that is originally funded from one source, that derives revenue from its earnings on investments and that makes grants to other charitable organizations as opposed to administering its own programs.
Prospect: An individual, Foundation, or Corporation who is identified as having capacity and
assigned for a solicitation
Rating: The dollar amount that is determined by the solicitor, leadership, and staff to be presented to the prospect for their consideration
Receipt: An official requirement for charities to acknowledge, with the amount, all gifts over $250 from any donor within the calendar year. Most charities provide a written acknowledgment for all gifts
Restricted Funds: Monies that must be used for a specific purpose or in a specific way by the recipient
RFP: An acronym for Request for Proposal. When the government or other organizations issue a new contract or grant program, it sends out RFPs to individuals, agencies or organizations that might be qualified to participate. The RFP lists project specifications and application procedures. While a few foundations occasionally use RFPs in specific fields, most prefer to consider proposals that are initiated by applicants or their own leadership.
ROI: Return on Investment - The value of effort when taking into account the time and cost of planning and producing the activity. For example:
Fundraising Costs and Return on Investment – National Averages
Method Cost Return on Investment
Direct mail to general lists (non donors) 115% -15%
Special Events 50% 50%
Planned Giving 25% 75%
Direct mail to prior donors 20% 80%
Foundations/Corporations 20% 80%
Major Gifts 5-10% 90-95%
National Average, all methods: 20% 80%
(Based on: James Greenfield, Fund-Raising: Evaluating and Managing the Fund
Development Process) See article “Fundraising Return on Investment” at http://nfpconsulting.blogspot.com
Site Visit: The donor or grantor's visit to the physical location of a grantee to meet with the grantee's staff, directors and/or clients. Often the grantor conducts an informal evaluation during this time.
Solicitation: The process (meeting) which takes place between the solicitor and the prospect at which time the request for support is made
Solicitor: The person who is assigned to ask someone to support the campaign
Steering Committee: The group of volunteer leaders who have been selected to oversee the overall Campaign
Stock Power Form: A form that transfers authority for transactions involving a stock from one party to another.
Suspect: An individual, Foundation, or Corporation who is identified as having capacity
Tax Exemption: IRS provides tax deductions for valid gifts to nonprofit organizations. Donors may not take deductions for gifts where they receive a benefit from the charity. For example, monies paid for a cruise or paid for a purchase at a charity auction would not be deductible even if the check for the cruise were made out to the charity. Monies paid “over” the fair market value are deductible.
Trust: A legal device used to set aside assets of one individual for the benefit of one or more persons or organizations.
Unrestricted Funds: Funds that allow the nonprofit to determine where grants will do the most good. Unrestricted funds offer maximum flexibility to react to changing needs in the community.
Venture Philanthropy: A model for charitable giving that arose in the 1990s, based on venture capitalism in the business world. The funder "invests" not just money but energy and expertise in the nonprofits they support. Generally, donors track their donations just as venture capitalists follow their investments with nonprofits asked to provide evidence of results and impact on a regular basis. Venture philanthropy is often associated with "new wealth" individuals and high tech entrepreneurs.
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