tag:blogger.com,1999:blog-59207842517680947312024-03-13T08:47:53.598-07:00NFP Consulting Resources, Inc.This blog provides a place to read and respond to articles on nonprofit fundraising and management, provided by Norman Olshansky, President of NFP Consulting Resources, Inc. www.nfpconsulting.comNFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.comBlogger28125tag:blogger.com,1999:blog-5920784251768094731.post-44369930275298264202017-01-16T14:42:00.001-08:002017-01-16T14:42:34.838-08:00Gift Acceptance Policies<br />
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<span class="s1"><b>Why does your nonprofit organization need a gift acceptance policy?</b></span></div>
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<span class="s1">Norman Olshansky: President</span></div>
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<span class="s1">NFP Consulting Resources, Inc.</span></div>
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<span class="s1">Decisions related to acceptance of out of the ordinary donations and pledges can be among the most challenging issues nonprofit professionals and leaders have to address, related to fundraising.</span></div>
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<span class="s1">Have you experienced any of the following issues?</span></div>
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<span class="s1">How do you deal with a donation from someone who is well known and of “ill repute” in the community who has made their fortune from being a slumlord and now is offering you a lead gift to your capital campaign with the proviso that the building be named after him?</span></div>
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<span class="s1">How do you avoid accepting a gift of real property that may cost you more in the long run than it is worth due to zoning, structural concerns, carrying expenses, legal or tax issues?</span></div>
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<span class="s1">What “strings” attached to gifts related to its use, recognition, investment, etc. are you willing to accept?</span></div>
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<span class="s1">What type of assets are you willing to accept? (collectibles, art, autos, boats, jewelry, privately held stock, real estate, etc.)</span></div>
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<span class="s1">Are you willing to accept life insurance policies which may require future premium payments?</span></div>
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<span class="s1">Are you willing to accept “split interest” gifts?</span></div>
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<span class="s1">Do you sell all stock donations immediately, hold them as investments or make decisions on a case by case basis? What guidance is given to those making day to day decisions?</span></div>
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<span class="s1">Who in your organization can make a decision not to accept a gift?</span></div>
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<span class="s1">How do you recognize testamentary gifts, especially those which may not materialize due to the terms of the gift? What about a testamentary gift where the donor or his/her family is able to change the beneficiary or amounts at a future date?</span></div>
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<span class="s1">When there is a need to make an “exception” what process is used to authorize a decision which may not be covered clearly by established policy or practice?</span></div>
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<span class="s1">These and similar issues occur more frequently than one might expect as part of the ongoing fundraising and development efforts of nonprofits. The type and frequency of these issues may vary from one nonprofit to another, but all nonprofits engaged in fundraising need to address gift acceptance.</span></div>
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<span class="s1">If you do not have a policy in place to establish guidelines, practices and procedures for your staff and volunteers, you are leaving yourself vulnerable to problems, potential conflict with donors and liability to your organization. </span></div>
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<span class="s1">There are many sample policies online which can be of assistance to you if you do not already have an established policy. If you do have one, it should be reviewed to make sure it covers conditions that could impact your organization. Review of policies and input from legal counsel can be most helpful.</span></div>
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<span class="s1">The CEO/Executive Director should also seek input from fundraising staff and volunteers. The CEO/Executive Director should then engage the Board Chairman for input so that a policy, or revisions to the existing policy, can be taken to the Board of Directors for review and approval.</span></div>
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<span class="s1">Do not wait until you have to deal with issues related to a specific gift before you develop gift acceptance policies! Make sure you have an established gift acceptance policy and committee to which staff and/or volunteers can bring unique concerns which need to be addressed. By planning, thinking and acting smart, you can minimize, if not avoid, many of the problems other nonprofits have faced in the past.</span></div>
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NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com5tag:blogger.com,1999:blog-5920784251768094731.post-72146168126433744292015-04-11T08:52:00.002-07:002015-04-11T09:13:10.587-07:00Table of Contents<h3 class="post-title entry-title" itemprop="name" style="background-color: #fff9ee; color: #222222; font-family: Georgia, Utopia, 'Palatino Linotype', Palatino, serif; font-size: 24px; font-stretch: normal; font-weight: normal; margin: 0.75em 0px 0px; position: relative;">
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<b><span style="color: #783f04;">Scroll down and click title in table of contents for articles of interest to nonprofit leaders and professionals:</span></b><br />
<b><i>For additional articles click "older posts" at bottom right of page at end of scroll</i></b><br />
<span style="font-family: Times, 'Times New Roman', serif;"><b style="color: purple;"><i><br /></i></b></span><span style="font-family: Times, 'Times New Roman', serif;"><b style="color: purple;"><i><a href="http://nfpconsulting.blogspot.com/2015/04/tips-on-establishing-or-revising-your.html" target="_blank">Tips on Establishing or Revising Gift Acceptance Policies</a></i></b><i><span style="color: #741b47;"><br /></span></i></span><br />
<span style="font-family: Times, 'Times New Roman', serif;"><b style="color: purple;"><br /></b></span>
<a href="http://www.nfpconsulting.blogspot.com/2014/02/response-to-association-of-fundraising.html" style="color: #888888; text-decoration: none;">Response to AFP Fundraising Study</a><br />
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<span style="font-family: Times, 'Times New Roman', serif;"><i><span style="color: #741b47;"><a href="http://nfpconsulting.blogspot.com/2013/05/why-do-many-planned-giving-marketing.html" style="color: #888888; text-decoration: none;">Why Do Planned Giving Marketing Efforts by Nonprofits Fail?</a></span></i></span><br />
<span style="background-color: white; font-family: Times, 'Times New Roman', serif;"><b style="color: purple;"><i><br /></i></b><i><a href="http://nfpconsulting.blogspot.com/2013/03/donor-recognition-capital-campaigns.html" style="color: #888888; text-decoration: none;"><span style="color: #741b47;">Donor Recognition Capital Campaigns</span></a></i></span></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
<div style="margin: 0px;">
<a href="http://nfpconsulting.blogspot.com/2013/01/so-you-want-to-work-in-nonprofit.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">So you want to work in the nonprofit sector.....Some tips to consider</span></a><br />
<span style="font-family: Times, 'Times New Roman', serif;"><br /><u><a href="http://nfpconsulting.blogspot.com/2012/11/everything-starts-with-leadership.html" style="color: #888888; text-decoration: none;"><span style="color: #741b47;">It All Starts with Leadership</span></a></u></span><br />
<span style="font-family: Times, 'Times New Roman', serif;"><span style="color: purple;"><br /></span><a href="http://nfpconsulting.blogspot.com/2012/10/normal-0-false-false-false-en-us-ja-x.html" style="color: #888888; text-decoration: none;"><span style="color: purple;">Nonprofit Organization Culture</span></a></span><br />
<span style="font-family: Times, 'Times New Roman', serif;"><span style="color: purple;"><br /></span><a href="http://nfpconsulting.blogspot.com/2012/08/corporate-engagement-with-nonprofits.html" style="color: #888888; text-decoration: none;"><span style="color: purple;">Corporate Engagement with Nonprofits: The Good, The Bad, and The Ugly</span></a></span><br />
<span style="font-family: Times, 'Times New Roman', serif;"><span style="color: purple;"><br /></span><a href="http://nfpconsulting.blogspot.com/2012/07/is-use-of-social-media-for-nonprofits.html" style="color: #888888; text-decoration: none;"><span style="color: purple;">Is the Use of Social Media by Nonprofits Worth the Time Spent?</span></a></span></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2012/04/capital-campaign-budgeting-beyond.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">Capital Campaign Budgeting: More than Construction Costs</span></a></div>
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<a href="http://nfpconsulting.blogspot.com/2012/01/my-journey-to-publishing.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">My Journey Into Publishing</span></a></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2011/07/great-new-resource-now-available.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">New Resource</span></a></div>
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<a href="http://nfpconsulting.blogspot.com/2010/06/how-well-are-you-handling-risk.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">How Are You Handling Risk</span></a></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2010/02/major-gift-prospecting-and.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">Major Gift Prospecting and Prioritization</span></a></div>
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<span style="font-family: Times, 'Times New Roman', serif;"><span style="color: purple;"><br /></span><u><a href="http://nfpconsulting.blogspot.com/2010/02/tips-on-volunteer-leadership-succession.html" style="color: #888888; text-decoration: none;"><span style="color: purple;">Volunteer Succession Planning for Nonprofits</span></a></u></span><br />
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<a href="http://nfpconsulting.blogspot.com/2010/01/nonprofits-and-peos.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">Nonprofits and PEO's</span></a></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2009/12/how-to-develop-strong-fundraising-board.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">How to Develop a Strong Fundraising Board</span></a></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2009/12/gift-acceptance.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">Why Your Organization Needs A Gift Acceptance Policy</span></a></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2009/11/olshansky-nonprofit-lexicon.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">Before You Start A Fundraising Campaign</span></a></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2009/09/fundraising-axioms-simplified.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">Ten Fundraising Axioms: Simplified</span></a></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2009/08/fundraising-return-on-investment.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">Fundraising Return on Investment</span></a></div>
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<span style="font-family: Times, 'Times New Roman', serif;"><span style="background-color: purple; color: purple; font-weight: bold;"><br /></span><a href="http://nfpconsulting.blogspot.com/2009/07/best-kept-secret.html" style="color: #888888; text-decoration: none;"><span style="background-color: white; color: purple;">Best Kept Secret</span></a></span><br />
<span style="font-family: Times, 'Times New Roman', serif;"><span style="color: purple;"><br /></span><a href="http://nfpconsulting.blogspot.com/2009/05/professional-development-through-peer.html" style="color: #888888; text-decoration: none;"><span style="color: purple;">Collaboration: Saving Operating Costs in a Tough Economy</span></a></span></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2009/05/ten-tips-for-nonprofit-fundraising.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">Ten Tips for Nonprofit Major Gift Solicitors</span></a></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2009/04/marketing-planned-gifts.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">A Marketing Approach for Planned Gifts</span></a></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<a href="http://nfpconsulting.blogspot.com/2009/03/multi-organization-collaboration.html" style="color: #888888; text-decoration: none;"><span style="color: purple; font-family: Times, 'Times New Roman', serif;">Professional Development Through Peer Engagemet</span></a></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;"><br /></span></div>
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<span style="color: purple; font-family: Times, 'Times New Roman', serif;">Nonprofit Lexicon</span><a href="http://www.nfpconsulting.blogspot.com/2014/02/response-to-association-of-fundraising.html" style="color: #888888; text-decoration: none;">Response to AFP Fundraising Study</a></div>
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NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com9tag:blogger.com,1999:blog-5920784251768094731.post-5985190813019373192015-04-11T08:47:00.000-07:002015-04-11T08:56:46.782-07:00Tips on Establishing or Revising Your Gift Acceptance Policy<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="color: black; font-size: 13.5pt;"><b>Tips on Gift Acceptance Policies for Your Nonprofit</b><o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">Norman Olshansky: President<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">NFP Consulting Resources, Inc.<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">Decisions related to acceptance of out of
the ordinary donations and pledges can be among the most challenging issues
nonprofit professionals and leaders have to address, related to fundraising.<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">Have you experienced any of the following
issues?<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">How do you deal with a donation from
someone who is well known and of “ill repute” in the community who has made
their fortune from being a slumlord and now is offering you a lead gift to your
capital campaign with the proviso that the building be named after him?<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">How do you avoid accepting a gift of real
property that may cost you more in the long run than it is worth due to zoning,
structural concerns, carrying expenses, legal or tax issues?<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">What “strings” attached to gifts related
to its use, recognition, investment, etc. are you willing to accept?<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">What type of assets are you willing to
accept? (collectibles, art, autos, boats, jewelry, privately held stock, real
estate, etc.)<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">Are you willing to accept life insurance
policies which may require future premium payments?<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">Are you willing to accept “split interest”
gifts?<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">Do you sell all stock donations
immediately, hold them as investments or make decisions on a case by case
basis? What guidance is given to those making day to day decisions?<o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">Who in your organization can make a
decision not to accept a gift?<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<br /></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">How do you recognize testamentary gifts,
especially those which may not materialize due to the terms of the gift? What
about a testamentary gift where the donor or his/her family is able to change
the beneficiary or amounts at a future date?<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<br /></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">When there is a need to make an
“exception” what process is used to authorize a decision which may not be
covered clearly by established policy or practice?<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<br /></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">These and similar issues occur more
frequently than one might expect as part of the ongoing fundraising and development
efforts of nonprofits. The type and frequency of these issues may vary from one
nonprofit to another, but all nonprofits engaged in fundraising need to address
gift acceptance.<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<br /></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">If you do not have a policy in place to
establish guidelines, practices and procedures for your staff and volunteers,
you are leaving yourself vulnerable to problems, potential conflict with donors
and liability to your organization.<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<br /></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">There are many sample policies online,
from basic to complex, which can be of assistance to you if you do not already
have an established policy. If you do have one, it should be reviewed to make
sure it covers conditions that could impact your organization. Review of your policies, with input from legal counsel, should be conducted periodically by nonprofits.<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="color: black; font-size: 13.5pt;">I have utilized a basic policy for my clients, who prefer more
flexibility by their organization when considering acceptance of gifts.<span style="mso-spacerun: yes;"> Some nonprofits have a separate gift acceptance committee while others use their standing executive committee, finance, or fundraising committee to handle gift acceptance issues.</span><o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="font-size: 18px;">_______________________________________________________________________</span></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Sample Gift Acceptance Policy <br />NFP Consulting Resources, Inc.<o:p></o:p></span></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">_______________________, Inc.,<span style="mso-spacerun: yes;">
</span>a not for profit 501C3 organization organized under the laws of the
State of ____________, encourages the solicitation and acceptance of gifts,
grants and donations<span style="mso-spacerun: yes;"> </span>for purposes that
will help ___________ to further and fulfill its mission. The following
policies and guidelines govern acceptance of gifts made to ______or to any of
its programs.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Acceptance of any contribution, gift or grant is at the discretion
of __________Inc.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: TimesNewRoman; mso-fareast-font-family: Cambria; mso-fareast-theme-font: minor-latin; mso-hansi-theme-font: major-latin;">Donations will generally be accepted from
individuals, partnerships, corporations, foundations, government agencies, or
other entities, without limitations.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">________ will refrain from providing advice about the tax or other
treatment of gifts and will encourage donors to seek guidance from their own
professional advisors to assist them in the process of making their donations.</span><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: TimesNewRoman; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: TimesNewRoman; mso-hansi-theme-font: major-latin;">__________ will accept
donations of cash or publicly traded securities. Gifts of in-kind services will
be accepted at the discretion of the ___________. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: TimesNewRoman; mso-hansi-theme-font: major-latin;">Certain other gifts, real
property, personal property, in-kind gifts, non-liquid securities, and
contributions whose sources are not transparent or whose use is restricted in
some manner, must be reviewed by the __________CEO/Executive Director and/or finance
committee (which shall serve as the gift acceptance committee), prior to
acceptance due to the special circumstances, obligations raised or liabilities
they may pose for _________.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">__________ will provide acknowledgments to donors meeting IRS
substantiation requirements for property received by the charity as a gift.
However, except for gifts of cash and publicly traded securities, no value shall
be ascribed by ____________to any receipt or other form of substantiation of a
gift received.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: TimesNewRoman; mso-hansi-theme-font: major-latin;">__________</span><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> </span><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: TimesNewRoman; mso-hansi-theme-font: major-latin;">will
respect the intent of the donor relating to gifts for restricted purposes and
those relating to the desire to remain anonymous. With respect to anonymous
gifts, information about the donor will be restricted to only those staff
members with a need to know. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">__________ will not compensate, whether
through commissions, finders’ fees, or other means, any third party for
directing a gift or a donor to _______________.<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-hansi-theme-font: major-latin;">Revision History<o:p></o:p></span></i></b></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<i style="mso-bidi-font-style: normal;"><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-hansi-theme-font: major-latin;">On____________________ the Board of
Directors of _______________s adopted this Gift Acceptance Policy.</span></i><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> <o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="font-size: 18px;">________________________________________________________________________</span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="color: black; font-size: 13.5pt;">Among the many online sources, I would recommend David Wheeler
Newman’s article if you are interested in developing a more detailed policy. <o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="color: black; font-size: 13.5pt;"><a href="http://www.msk.com/news/pub.cfm?id=1048&type=Publication">http://www.msk.com/news/pub.cfm?id=1048&type=Publication</a>
<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<br /></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">The CEO/Executive Director should also
seek input from fundraising staff and volunteers. The CEO/Executive Director
should then engage the Board Chairman for input so that a policy, or revisions
to the existing policy, can be taken to the Board of Directors for review and
approval.<o:p></o:p></span></div>
<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
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<div style="-webkit-text-stroke-width: 0px; margin-bottom: .0001pt; margin: 0in; orphans: auto; text-align: start; widows: auto; word-spacing: 0px;">
<span style="color: black; font-size: 13.5pt;">Do not wait until you have to deal with
issues related to a specific gift before you develop gift acceptance policies!
Make sure you have an established gift acceptance policy and committee to which
staff and/or volunteers can bring unique concerns, which need to be addressed.
By planning, thinking and acting smart, you can minimize, if not avoid, many of
the problems other nonprofits have faced in the past.<o:p></o:p></span></div>
NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com1tag:blogger.com,1999:blog-5920784251768094731.post-81600745781899998832014-02-09T13:16:00.000-08:002014-02-11T13:24:05.689-08:00Response to Association of Fundraising Professionals' Study: Fundraising Effectiveness<a href="http://www.nfpconsulting.blogspot.com/2014/02/response-to-association-of-fundraising.html">Response: Fundraising Effectiveness Study</a><br />
<a href="http://www.nfpconsulting.blogspot.com/2014/02/response-to-association-of-fundraising.html">AFP Fundraising Survey Response</a><br />
<span style="font-family: Cambria; font-size: 12.0pt;">By Norman Olshansky: President</span><br />
<span style="font-family: Cambria; font-size: 12.0pt;"> NFP Consulting Resources</span><br />
<span style="font-family: Cambria; font-size: 12.0pt;"><br /></span>
<span style="font-family: Cambria; font-size: 12.0pt;">In response to a request
from my local Association of Fundraising Professional’s Chapter, to comment on
the new National Fundraising Effectiveness survey, I have prepared this article
.<o:p></o:p></span><br />
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<i style="mso-bidi-font-style: normal;"><span style="color: #660066; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;">Background:<o:p></o:p></span></i></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<i style="mso-bidi-font-style: normal;"><span style="color: #660066; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;">For the first time in five years, results from the
annual AFP Fundraising Effectiveness Survey reveal that charity respondents
experienced positive gains in giving, but continued to lose donors faster than
they gained them. The 2013 report summarizes data from
2,840 respondents throughout the United States, covering year-to-year
fundraising results for 2011-2012. <o:p></o:p></span></i></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l0 level1 lfo3; mso-pagination: none; tab-stops: 11.0pt .5in; text-autospace: none; text-indent: -.5in;">
<!--[if !supportLists]--><span style="color: #660066; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria; mso-hansi-font-family: Cambria;"><span style="mso-list: Ignore;">•<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><i style="mso-bidi-font-style: normal;"><span style="color: #660066; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;">Gains
in gifts from new, upgraded and previously lapsed donors were offset by losses
through reduced gifts and lapsed donors. So, while there was a positive
net growth-in-giving, every $100 gained in 2012 was offset by $96 in losses
through gift attrition.<o:p></o:p></span></i></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l0 level1 lfo3; mso-pagination: none; tab-stops: 11.0pt .5in; text-autospace: none; text-indent: -.5in;">
<!--[if !supportLists]--><span style="color: #660066; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria; mso-hansi-font-family: Cambria;"><span style="mso-list: Ignore;">•<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><i style="mso-bidi-font-style: normal;"><span style="color: #660066; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;">Gains
of new and previously lapsed donors were offset by losses in lapsed
donors. This means that there was a negative growth-in-donors and every
100 new donors gained was offset by 105 in lost donors.<o:p></o:p></span></i></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l0 level1 lfo3; mso-pagination: none; tab-stops: 11.0pt .5in; text-autospace: none; text-indent: -.5in;">
<!--[if !supportLists]--><span style="color: #660066; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria; mso-hansi-font-family: Cambria;"><span style="mso-list: Ignore;">•<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><i style="mso-bidi-font-style: normal;"><span style="color: #660066; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;">Performance
varied significantly according to organization size with larger organizations
performing much better than smaller ones. <o:p></o:p></span></i></div>
<span style="font-family: Cambria; font-size: 12.0pt;">It should come as no
surprise that over the past several years nonprofits have had their share of
fundraising challenges, especially among mid and small size organizations. </span><span style="font-size: 12.0pt;"><o:p></o:p></span><br />
<span style="font-family: Cambria; font-size: 12.0pt;">A snapshot of the
national trend for all nonprofits shows that, while overall giving had modest
gains, the number of donors has decreased. Bottom line – fewer people are
giving and nonprofits have become more dependent on their major donors. </span><span style="font-size: 12.0pt;"><o:p></o:p></span><br />
<span style="font-family: Cambria; font-size: 12.0pt;">I was asked to comment on
the trends noted in the recent study based upon my experience as a fundraising
consultant: </span><span style="font-size: 12.0pt;"><o:p></o:p></span><br />
<div style="margin-left: .5in; mso-list: l2 level1 lfo1; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Cambria; font-size: 12.0pt; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: Cambria; font-size: 12.0pt;">While
not realistic, nor appropriate, more and more boards and executives are looking
for their development staff to bring in the “bucks” without adequate leadership
involvement and support. Staff alone cannot be expected to provide magic
bullets, especially in mid to small nonprofits. <o:p></o:p></span></div>
<div style="margin-left: .5in; mso-list: l2 level1 lfo1; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Cambria; font-size: 12.0pt; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: Cambria; font-size: 12.0pt;">During
the recession, many nonprofits cut staff to save on expenses and the remaining
staff, especially those devoted to fundraising, were overwhelmed, and burnt
out, causing high turnover and a multitude of other problems. <o:p></o:p></span></div>
<div style="margin-left: .5in; mso-list: l2 level1 lfo1; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Cambria; font-size: 12.0pt; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: Cambria; font-size: 12.0pt;">Many
nonprofits have continued to focus their fundraising efforts primarily on
events, which have a low return on investment. Events have their place but need
to be part of a broader fundraising strategy and plan that uses a variety of
fundraising activities targeting multiple segments of one’s donor and prospect
base. <o:p></o:p></span></div>
<div style="margin-left: .5in; mso-list: l2 level1 lfo1; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Cambria; font-size: 12.0pt; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: Cambria; font-size: 12.0pt;">Development
departments have ignored many of the basics when it comes to fundraising: <o:p></o:p></span></div>
<span style="font-family: Cambria; font-size: 12.0pt;">A. Keep in touch with
existing donors and provide good communications and recognition. They are your
most important donor segment. This does not mean sending out quarterly
fundraising mass appeals, or only communicating when there is an “ask”.
Nonprofits need to spend more </span><span style="font-size: 12.0pt;"><o:p></o:p></span><br />
<span style="font-family: Cambria; font-size: 12.0pt;">time on stewardship and
recognition of existing donors. You can never thank a donor too often. </span><span style="font-size: 12.0pt;"><o:p></o:p></span><br />
<div style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Cambria; font-size: 12.0pt; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: Cambria; font-size: 12.0pt;">Do
not neglect the pipeline. Keep in mind (especially in Florida), we lose many
donors to death, health issues, relocation and from feeling that their gift is
not appreciated. In order to simply maintain your existing number of donors you
need to add a lot of first time donors. Do not neglect to include new donor
acquisition activities within your campaign plan. <o:p></o:p></span></div>
<div style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Cambria; font-size: 12.0pt; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: Cambria; font-size: 12.0pt;">While
there is a science as well as an art to fundraising, nonprofits are also
corporations (businesses) that need to analyze, evaluate and conduct their
affairs with an understanding of return on investment of human as well as
financial resources. Have a plan that is prioritized to maximize resources and
maintain metrics that can be evaluated. <o:p></o:p></span></div>
<div style="margin-left: .5in; mso-list: l1 level1 lfo2; tab-stops: list .5in; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Cambria; font-size: 12.0pt; mso-bidi-font-family: Cambria; mso-fareast-font-family: Cambria;"><span style="mso-list: Ignore;">4.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: Cambria; font-size: 12.0pt;">Leaders
and staff within nonprofits tend to be crisis oriented and not strategically
focused. Too often inadequate time is spent on vision, impact, outcomes and
staying true to mission. <o:p></o:p></span></div>
<div style="margin-left: .25in;">
<span style="font-family: Cambria; font-size: 12.0pt;">There
are many axioms related to fundraising. One is that “it all starts with
leadership”, (volunteers </span><span style="font-family: "Cambria,Bold","serif"; font-size: 12.0pt;">AND
</span><span style="font-family: Cambria; font-size: 12.0pt;">professionals).
Analyze, ask questions and do not ignore the basics of professional
fundraising. Only then will you be able to say that, “we not only reversed the
trend” but also raised more money, retained more of our existing donors, added
more donors overall, increased our average and median gift size, and engaged
more fundraising leadership and volunteers with a lower fundraising cost per
donor”. For more axioms related to fundraising go to: <span style="color: #0016a8;">http://nfpconsulting.blogspot.com/2009/09/fundraising-axioms-simplified.html
</span><o:p></o:p></span></div>
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http://nfpconsulting.blogspot.com/2014/02/response-to-association-of-fundraising.htmlAFP Fundraising Effectiveness Survey ResponseResponse to AFP Fundraising Effectiveness Study<a href="http://www.nfpconsulting.blogspot.com/2014/02/response-to-association-of-fundraising.html">http://www.nfpconsulting.blogspot.com/2014/02/response-to-association-of-fundraising.html</a></div>
NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com5tag:blogger.com,1999:blog-5920784251768094731.post-26596786085167067202013-05-06T11:22:00.000-07:002014-02-27T08:39:11.793-08:00Why Do Many Planned Giving Marketing Efforts By Nonprofits Fail?<!--[if gte mso 9]><xml>
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<br />
<div class="MsoNormal">
<span style="font-size: 14.0pt;">Why Do Many Planned Giving Marketing
Efforts By Nonprofits Fail?<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt;">By Norman Olshansky: President</span></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt;">NFP Consulting Resources, Inc.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt;">Nonprofit fundraising,
whether for annual, capital or endowment campaigns, is all about
relationships. This is one of the main
axioms of fundraising. (See Ten Basic
Fundraising Axioms </span>http://nfpconsulting.blogspot.com/2009/09/fundraising-axioms-simplified.html</div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt;">Planned gifts are major
gifts. Like with other major gifts, they
require proper prospect research by nonprofits related to the passions,
interests and philanthropic goals of the potential donor, followed by a
thoughtful cultivation process.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt;">Since many planned gifts
utilize giving techniques that can be technical or somewhat complicated, such
as trusts, annuities, transfers of real property, insurance, etc., nonprofits
have depended heavily upon the advice and input of financial services
professionals (accountants, tax attorneys, investment advisors) for the
development of their planned giving programs.
While financial advisors are a very important component within a nonprofit’s
planned giving leadership, too often development professionals have focused too
much on how to structure planned gifts rather than on how to engage qualified
prospects to the point of willingness to consider making a planned gift. As a result, marketing efforts have typically
focused on charitable annuity tables, and a plea to “leave us in your will”
rather than a focus on the interests and values of the donor.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt;">The first step in obtaining
charitable planned gifts is to identify prospects who care about your mission
and have charitable intent. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS"; mso-bidi-font-weight: bold;">The quality of a gift is directly related to the
quality of the relationship between the nonprofit and prospect</span><span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">. Major prospects
deserve personal attention. Your nonprofit’s relationship to the prospect has a
direct impact on their gift. The more they know and trust the nonprofit and
their representatives (volunteers and staff), the more comfortable they will be
making a major gift. They need to know that they are getting accurate, current
and reliable information about the organization and the impact of their giving.
They also will be more comfortable knowing that the nonprofit, with whom they
have a relationship, is familiar with
their background, interests and abilities than would a stranger. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">Planned
giving is an opportunity for the donor to leave a legacy gift. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">The
dictionary has two definitions for legacy.<o:p></o:p></span></div>
<div class="MsoNormal">
<b><span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">1. </span></b><span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;"> a gift by will especially of money or other
personal property <b>:</b> <o:p></o:p></span></div>
<div class="MsoNormal">
<b><span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">2. </span></b><span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">something transmitted by
or received from an ancestor or predecessor or from the past <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">As
related to marketing of planned gifts, these definitions of “legacy” offer
great input. Why would a donor want to
leave a legacy through a planned gift? Is
it the motivation for the gift to serve as appreciation for the work of the
organization, or a memorial to a diseased relative, to honor someone, to set an
example for others, to pass on their values of philanthropy to children and/or
grandchildren, to sustain the organization about which the donor cares, to
endow their annual gift, to fund a program or service or scholarship long term,
to be recognized as a major donor while they are still alive, to thank the
organization for its past service to the donor or a family member, to be able
to make a more meaningful gift than they have in the past…. ? The reasons may be different for each prospective
donor.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">Research
has shown that the best prospects for planned gifts are:<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-layout-grid-align: none; mso-list: l0 level1 lfo1; mso-pagination: none; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 14.0pt; mso-bidi-font-family: Cambria; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: minor-latin;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">Long term donors and volunteers who have demonstrated a commitment to
the organization (not gift size but more focused on length of giving)<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-layout-grid-align: none; mso-list: l0 level1 lfo1; mso-pagination: none; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-size: 14.0pt; mso-bidi-font-family: Cambria; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: Cambria; mso-fareast-theme-font: minor-latin;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">Those who are over 60 years old<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">Many
of these prospects are living off of unearned income, have concerns about their
ability to provide for themselves or other family members, long term. Their net
worth may primarily be in property or other assets, which do not produce income
or, at best, minimal interest. They are usually individuals who have been small
or moderate long-term contributors to the organization.</span><span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;"><o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">While
many charities have received bequests from individuals who had previously never
made a gift to the charity, most donors of planned gifts fit the
characteristics above when they made the decision to “plan” a gift.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">Developing
a “relationship” with the prospect so that conversations can take place that
help the individual articulate what they care about, is the critical first step
once they have been identified as a prospect.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">Once
the “solicitor” has acknowledged and demonstrated appreciation for their long
term support, and has determined some of the potential interests and
philanthropic motivations of the prospect related to your nonprofit, ask: “If you were in a position to make a legacy
gift to accomplish some of what you just mentioned, and you had the resources,
would you want to make a legacy gift or gift in perpetuity to our nonprofit”?<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">Typically,
they will respond that they are not wealthy or in a position to do so and don’t
have the ability to make such a gift. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">Ask
what they would want to accomplish with a major legacy gift to the nonprofit,
if indeed they WERE in a position to do so.
Get them to talk about their passion for your nonprofit and their
interests.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">At
the right time during that conversation, the solicitor can respond as follows:<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">“If
we could show you a way that could enable you to make a legacy gift, without
any cash out of your pocket and the possibility to receive income for the rest
of your life greater than you are earning from some of your investments, would
you be interested in learning more?<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">In
most cases, long term supporters will be curious as to what you are suggesting
and will be willing to learn more.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">If
the solicitor is a planned giving professional they can continue the<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">conversation.
If it’s a volunteer or a staff member
without significant financial services knowledge, they should ask if it’s ok to
have one of the<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">organization’s
advisors set up a time to discuss with the prospect some of the ways they can
make a legacy gift and also receive income and significant tax advantages.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">The
next step or meeting, once their interest has been established, would be to
determine what are the primary assets of the prospect (residence, collectibles,
life insurance, other appreciated assets, etc). Use of appreciated assets for
gift planning offers the donor additional advantages. In addition, a determination should be made
regarding investments in low performing instruments. (money market funds, CD’s,
bonds, etc.) With that information, the professional/advisor can suggest some
of the techniques that might best fit that individual. (Gift annuities, trusts,
life insurance, bequests, stock transfers, bequest, etc.)<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">It
is important to encourage the prospect to engage their own financial advisors
to make sure what is being discussed is appropriate based on more detailed knowledge
of their unique financial situation and needs.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: "Trebuchet MS";">The
nonprofit’s representative should offer to contact the prospect’s financial
advisor once the prospect has had a chance to initiate the discussion with
their advisor.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">Marketing
for planned gifts is primarily a one-on-one engagement of the prospect, their
financial advisor and in many cases, their family. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">Establishing
legacy societies and ways to recognize those who sign letters of intent to leave
a bequest by will, or have committed to a planned gift, are critical components
of a planned giving program. The more
planned gifts are recognized for the reasons the gift was made without emphasis
on the amount of the gift, the more such recognition will encourage others to
consider planned gifts. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">However,
emphasis on marketing should primarily be on ways to identify and engage those
who fit the legacy gift profile. <b>Brochures, emails, gift tables seminars and
engagement of financial advisors, while helpful, are not sufficient for the
development of a successful planned giving program for your nonprofit. </b>The key to marketing your planned giving
initiative is to get good conversations with appropriate prospects started,
which is all about “relationships”.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 14.0pt; mso-bidi-font-family: Verdana;">How
would you rate the marketing for your nonprofit’s planned giving program?<o:p></o:p></span></div>
<!--EndFragment-->NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com3tag:blogger.com,1999:blog-5920784251768094731.post-10656820082400030662013-03-18T14:22:00.000-07:002013-03-18T14:56:24.261-07:00Donor Recognition Capital Campaigns<!--[if gte mso 9]><xml>
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<br />
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One of the areas of capital campaign planning that can
enhance fundraising success is a determination of how donors will be
recognized. One of the axioms of
fundraising is that<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;"> you can never thank a donor too often. They are the
critical keys to success.</span><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;">Whether
it be stewardship, public recognition, ongoing communication, personal thank
yous, gifts, member benefits, etc………the more you are in touch with donors in a
way that demonstrates your sincere appreciation, the more likely they will be
there for you when you need them in the future.
Take care to establish donor recognition policies that will </span><span style="color: #262626; font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Helvetica Neue Light"; mso-hansi-theme-font: major-latin;">ensure
that those who support the organization through donations receive recognition
that is appropriate, equitable and consistent. </span><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;">Too
often, organizations do not adequately establish policies and establish
recognition programs during the pre campaign planning process. Fundraising is much more than “the ask”. How you recognize donors can be a critical determination
as to how successful your campaign will be and its impact on future
fundraising.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;">There are
many ways to thank and give recognition to donors.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;">Some examples
of the processes, events and activities that should be addressed early on, as
part of the campaign plan are:<o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt;"> <b>
</b></span></span><!--[endif]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;"><b>Acknowledgment
and appreciation expressed for pledges to the campaign</b><o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;"><b><br /></b></span></div>
<div class="MsoListParagraphCxSpMiddle">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;">Many organizations provide for multiple actions including a
handwritten note from the solicitor, letter(s) or calls from board members,
official acknowledgement letter, etc.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoListParagraphCxSpMiddle">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;"><b>Events</b></span></div>
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<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: "Trebuchet MS"; mso-hansi-theme-font: major-latin;"><b><br /></b></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Donor appreciation events can be
held at various stages of the campaign at which presentations can be made that
update donors on campaign progress and/or how new or renovated facilities are
furthering the mission of the organization.
Some campaigns hold an event to recognize lead donors at the conclusion
of the leadership gift phase of the campaign and another for major donors
towards the end of the campaign. I’ve
also seen a combined donor, volunteer and staff recognition event at the end of
the campaign.<o:p></o:p></span></div>
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<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<span style="font-family: Calibri;"> <b> Gifts</b></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<span style="font-family: Calibri;"><br /></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">3 <span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span><!--[endif]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Gifts can also be used to thank
donors. Depending on the size of
donations, gifts can vary from meaningful art work to framed thank you notes
from those served by the organization.
Presentations of certificates and plaques are no longer used as
frequently as in the past in capital campaigns.
Creative gifts that the donor will find as a meaningful reminder of
their impact to the campaign are the most appreciated gifts. There is no limit to creative and meaningful gifts.
Some examples:<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Framed photo or artist rendition
of the new facilitiy(s) with engraved personalized appreciation name plate <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">B.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A construction hard hat with
engraved personalized appreciation name plate <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">C.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">A crystal bowl with engraved
personalized appreciation<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">D.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Engraved bricks: at facility on
patio, walkway, etc and/or a duplicate
brick given to donor to display at their home or office<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">E.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span></span><!--[endif]--><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Any item that would be symbolic
of the organization’s misison<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">(Cultural
arts, human service, education, environmental, animal rights, etc.)<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><b><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">4 <span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span><!--[endif]--></b><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><b>Building, room and area namings</b><o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><b><br /></b></span></div>
<div class="MsoListParagraphCxSpMiddle">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">I try to
discourage offering donors the opportunity to name the organization. The donor is providing funds for the capital
campaign. There are potential long-term
problems when a donor is provided with the naming of the organization. The
organization should not be exclusively identified with an individual,
corporation or family donor. However, the naming of a building, wing, section,
patio, garden, furnishings, bathroom, office, stairway or activity room can be
named. Care should be given in
determining how much a donor would need to give to qualify for each of those
naming opportunities. Usually a building
or room naming is not offered for less than 2 to 3 times the actual cost of
construction and furnishings. When naming
a room or area that requires a lot of ongoing maintenance, build into the
naming “levels” those costs, i.e. landscaping, gardens, technology rooms,
athletic fields. If the cost of annual maintenance runs $X/yr., try to get that
cost endowed. Typically endowments
should be established at 20 times the annual cost. This is based on a corpus that will kick off
at least 5% annually in earnings to cover the annual costs. Namings can also be
offered for areas within a room or area that is named. For example in an auditorium the stage,
lighting, sound system and seats can be named separately from the overall
auditorium naming. Some organizations
prefer not to put plaques or signage next to each named facility and only do so
as part of a central donor wall of recognition.
Most do both.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><b><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Calibri; mso-bidi-theme-font: major-latin; mso-fareast-font-family: Calibri; mso-fareast-theme-font: major-latin; mso-hansi-theme-font: major-latin;">5 <span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span><!--[endif]--></b><span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><b>Donor Walls</b><o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><b><br /></b></span></div>
<div class="MsoListParagraphCxSpLast">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">There are many styles of donor
walls available to utilize for recognition.
Some of the newer ones combine electronics, videos, and interactive
displays. There is no limit to the
creativity (and cost) of donor walls.
There are many vendors and artists who can work with you to create a
donor wall that fits your building
design, organization culture, and
budget.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoListParagraphCxSpLast">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><b>Additional issues to be addressed</b></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoListParagraphCxSpFirst">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The cumulative value of all naming
opportunities offered should be significantly larger than the overall goal of
your campaign. It is important that
there be naming opportunities at many levels, as a way to increase your ability
to connect donors to a naming they will find of interest within their giving
capability. However, you may only want
to put donor names on a wall that are considered major gifts starting at $5,000,
$10,000 or higher depending on the size of your campaign. Donors should be recognized
by categories of giving. (Number of
categories, values, and names of categories should reflect your organization, and
size of the campaign.) For example: <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Leaders $500,000 plus<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Guardians 100,000 plus<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Producers 50,000 plus<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Engineers 25,000 plus<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Builders 10,000 plus<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Friends 5,000 plus<o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Some campaigns offer recognition (tributes,
honorials, memorials) on bricks, chairs in theaters, or other smaller cost
items as a way to recognize donors under $5,000</span></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">All donors from $.01 up should be recognized
at the conclusion of the campaign in a tribute book, in newsletters, on
website. and/or in other publications. Donors
should be informed in advance of how you plan to recognize them and be given
the opportunity, if they so choose, to be anonymous. All donors should be invited to the
dedication of new facilities at the conclusion of the campaign.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Determining when a pledge becomes a gift is
another issue to consider. Do you want
to put up room or building signage for a gift that has not as yet been fully
paid? How would you handle recognition
and namings for revocable planned gifts?
It is important to have clear policies on gift acceptance prior to the
initiation of solicitations for your capital campaign.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">There will be many naming opportunities you
will offer that are not selected by donors. You may be able to provide these for donors
who come forward after the campaign is concluded or as part of future campaigns.<o:p></o:p></span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Events, awards, gifts, room signage and donor
walls require advance planning. Take
care and consider early in your planning, how you want to incorporate donor
recognition in your campaign.<o:p></o:p></span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">These are but a few examples of things to think about related to donor
recognition for capital campaigns. These
recognition activities should always accompany communications to donors with
updates on what your organization is accomplishing as a result of their
involvement. Connect donors to your
mission. That’s among the reasons that they got involved. Keep in mind that recognition is one of many
ways to show your appreciation for those who contribute to your campaign. There is no limit to how you can creatively
thank and show your appreciation to donors.
<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="margin-left: .75in; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto;">
<br /></div>
<div class="MsoNormal" style="margin-left: .25in;">
<br /></div>
<!--EndFragment-->NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com2tag:blogger.com,1999:blog-5920784251768094731.post-21680437412094628832013-01-07T07:20:00.000-08:002013-01-07T07:20:16.527-08:00So You Want to Work in the Nonprofit Sector……..Tips for Success
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<br />
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<b>By Norman Olshansky: President</b></div>
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<b>NFP Consulting Resources, Inc.</b></div>
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<br /></div>
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<br /></div>
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I am frequently asked for advice from students, recent grads
and job seekers who are entering work within the nonprofit sector or who want
to transition from the for profit sector to work in nonprofits. Nonprofits are businesses, albeit with
special tax status and missions, which are focused on community benefit. A few of my suggestions are listed below. What would you add?<o:p></o:p></div>
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<br /></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><b>1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]--><b>Nonprofit
work starts with passion for mission<o:p></o:p></b></div>
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Make sure that you sincerely care about the
mission of the nonprofit in which you seek employment. Nonprofit work is first about mission. Whatever your position, work, or engagement
within a nonprofit, it is to add value to the mission of that organization and
its community benefit endeavors. Don’t
work for a nonprofit if you can’t be a sincere and strong advocate for its
mission. Job satisfaction will be
directly related to how much pride you have in your work and how it enhances
the overall impact of your organization.<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><b>2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]--><b>Get
involved with a professional or trade association <o:p></o:p></b></div>
<div class="MsoListParagraphCxSpMiddle">
Jobs in nonprofits are varied. Some are in direct service while others are
in back office supports, administration, management or fundraising. Nonprofits employ marketing, accounting,
human resource and other specialties.
Whether it is the National Association of Social Workers, Association of
Fundraising Professionals, Association of Healthcare Philanthropy, American
Marketing Association, American Accounting Association or other local, regional
or national groups, seek out the one that can best assist you in your new
position. Take advantage of their
offerings, benefits and resources they provide.<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><b>3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]--><b>Find
an experienced mentor<o:p></o:p></b></div>
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Seek out someone who has a lot of
experience doing the work you will be doing or will want to do, i.e.
counseling, human resources, marketing, accounting, fundraising, management,
etc. There is more to being a good nonprofit employee than proficiency on the
technical side of the work. Nonprofits
are all about relationships with clients, consumers of service, members,
donors, co-workers, volunteers and other stakeholders. The art of nonprofit work is as important as
the science. A mentor with lots of
nonprofit experience can help someone new to nonprofit work address the various
issues and relationships that impact nonprofit employees. Choose a mentor who also has experience
within the sector you are employed i.e. human service, education, arts and
culture, government, healthcare, etc. It
is helpful to use a mentor who is not currently employed within your
organization, who is trustworthy and who is able to maintain complete
confidentiality.<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><b>4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]--><b>Seek
out good supervision<o:p></o:p></b></div>
<div class="MsoListParagraphCxSpMiddle">
Look for a position where you will receive
good supervision by someone who will provide you with professional guidance,
honest input and evaluation. While any
good employee seeks to learn more, it is especially important for new nonprofit
employees to seek out leaning and growth opportunities. Look for an organization that will provide
you with those experiences. Also check
out leaning opportunities at your local colleges and universities, nonprofit
resource centers, community foundations, and with national associations.<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><b>5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]--><b>Always
be a student<o:p></o:p></b></div>
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Take advantage of opportunities to attend
workshops, conferences, participate in online webinars, and continue to read as
much as you can related to your work and the overall nonprofit sector. Be curious.
Learn as much as you can about what others in your organization do, how
your role intersects with theirs, and is part of the overall mission. Ask lots of questions and be willing to try
new approaches that will add value to your organization. Be focused on outcomes and not outputs. The number of things you do may not be as
important as the quality of what is accomplished by your work. Use your time wisely. It is a valuable resource. Nonprofits are just as concerned about
return on investment as are for-profit organizations. Human and financial capital is limited so
your employer is going to look at how you add value to the organization. A good student will sort out lots of
information, make critical decisions and use their time and organization’s
resources wisely. Even the most experienced
nonprofit professional needs to constantly seek out learning opportunities if
they are going to keep up with the ever-changing nonprofit sector.<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><b>6.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]--><b>Mistakes,
change and risk<o:p></o:p></b></div>
<div class="MsoListParagraphCxSpMiddle">
Nobody is perfect. You WILL make mistakes. Good employees learn from their mistakes and
take advantage of new learning to go the next level. Ask any professional how they have learned to
be effective and they will include in their responses examples of learning from
mistakes and failure. In addition, be
willing to take calculated risks. Change
does not occur if an organization or employee continually does everything the
same way. If something needs to be
better, more effective, more efficient than is currently the situation in an
organization, then change (which often involves risk taking) is necessary. Be
willing to explore different ways of doing your job that can improve your
impact within your organization.<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><b>7.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-weight: normal;">
</span></b><!--[endif]--><b>Be a
role model and enjoy your work<o:p></o:p></b></div>
<div class="MsoListParagraphCxSpLast">
Try to find a position where you will do work
that you find enjoyable. No job is
perfect and there are always aspects of employment, which are not fun. Successful
employees are typically the ones who sincerely love their work and want to be
part of helping others in their organization succeed. Be trustworthy. Avoid office gossip. People like to work with positive
co-workers. Be the type of employee that
you would want to work with day to day.
You may be faced with tough decision based upon the positions and
behavior exhibited by others. Always
take the moral/ethical high ground and avoid doing anything that you wouldn’t
want to read about on the front page of your local newspaper.<o:p></o:p></div>
<div class="MsoNormal">
8. <b>Compensation
and Benefits<o:p></o:p></b></div>
<div class="MsoNormal">
<b> </b>If your interest in working
within a nonprofit organization is to make the big <o:p></o:p></div>
<div class="MsoNormal">
bucks,
you will be disappointed. While there
are a few exceptions, <o:p></o:p></div>
<div class="MsoNormal">
nonprofits
have historically paid less than comparable positions within the <o:p></o:p></div>
<div class="MsoNormal">
for-profit
sector Most established nonprofits offer
reasonable compensation <o:p></o:p></div>
<div class="MsoNormal">
and
benefits. However, if your main
motivation for looking at potential<o:p></o:p></div>
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positions within the nonprofit
sector is a highly competitive financial <o:p></o:p></div>
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package, it’s not the place for
you.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
As someone who has worked within the nonprofit sector for
over 25 years I still love what I do and encourage those who are serious about
nonprofit work and have a passion for community service to consider a career
within the nonprofit sector. There are
few jobs that offer the satisfaction and feeling of service and accomplishment
as those within nonprofits.<o:p></o:p></div>
<!--EndFragment-->NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com7tag:blogger.com,1999:blog-5920784251768094731.post-25128726022044699592012-11-28T11:58:00.000-08:002012-11-28T12:19:55.203-08:00Everything Starts With Leadership<!--[if gte mso 9]><xml>
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<br />
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<br /></div>
<div class="MsoNormal">
By Norman Olshansky: President<o:p></o:p></div>
<div class="MsoNormal">
NFP Consulting Resources, Inc.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
I’ve often been asked, “what is the most important
ingredient that makes for a successful nonprofit”? I have a simple answer, “everything starts with leadership”.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Nonprofit organizations are typically created by an
individual or group of founders who have a passion for a cause and who want to
“make a difference”. It is usually a
long and bumpy road from initial concept to operational implementation and
sustainability. How well a new
organization is able to navigate the normal stages of development depends on
the quality of its leaders both volunteer and paid.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Organizations go through stages just as individuals go
through stages of growth and maturity.
The Founder of an organization is typically a passionate and driven
person. He/she has a strong commitment
to an idea or vision for what they want to accomplish and they feel a
responsibility and ownership for the development of the organization. Without these driven and passionate
“founders” most nonprofits would not be in existence today and able to provide
important services and benefits in our communities.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
However, in order for an organization to be sustainable long
term and to grow, it must adapt to the various stages of organization
development and change. What may seem
like normal processes can be challenging for some organizations. Some examples of change and challenge are:<o:p></o:p></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]-->A.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span><!--[endif]-->How an organization adapts from being all
volunteer led to having staff. <o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]-->B.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span><!--[endif]-->When a new organization moves from operating out
of someone’s home to a building or office space. <o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]-->C.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span><!--[endif]-->How existing leaders handle the loss or addition
of volunteers or board members <o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]-->D.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span><!--[endif]-->The need to use/obtain technology and be able to
communicate with large numbers of people<o:p></o:p></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]-->E.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span><!--[endif]-->Other factors such as fundraising needs, legal
and compliance issues, competition, relocation, relationships with funders, or
rapid growth/decline in the number of people seeking services, can all pose
major challenges for organizations throughout their development. <o:p></o:p></div>
<div class="MsoNormal">
The quality of volunteer and staff leadership determines how
well these and other issues are handled.
<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
True leaders share similar characteristics. They are enthusiastic, positive, committed,
lead by example, are driven and demonstrate a passion for the mission of their
organization. They engage and involve
others. They are able to work with teams.
They are good listeners and
consensus builders. They are engaging
and decisive. A good leader is a
reasoned risk taker and is constantly looking to the future. Often neglected but very important, a good
leader develops others to carry on their work and eventually transitions out of
leadership in order to sustain the organization long term. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Too often passion can interfere with good leadership. I’ve never met anyone involved with
nonprofits who had bad intentions.
However, the way some “leaders” handle issues and relationships can
become problematic as a result of their strong feelings of what they think is
best for the organization. No one person
“owns” a nonprofit. By their very nature
and legal status, nonprofits are the responsibility of a board of
directors. When a board relegates its
authority to the “founder” or largest donor, or even to a staff person, problems
eventually follow. Each entity is
important and has an essential role to play as leaders within a nonprofit. However, leadership is not absolute.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Often “Founders” have difficulty with transition. After all…..it’s their baby and it’s hard to
accept when a child is growing up and no longer wants or needs to be completely
dependent on their parent. However, good
parents work hard to help their children become independent and at the same
time maintain a strong relationship with each other. Good leaders are able to make that
transition.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
So what if you are lacking good leaders in your
organization? Does the culture of your
organization encourage good leadership qualities? Have you thought about what you can do (with
others) to change the culture or your organization and help existing leaders to
better appreciate, understand and implement their roles and
responsibilities? Do you have a good
system of recruitment of leadership, orientation, training, mentoring, recognition,
term limits, etc? Do you have an
active governance committee that reviews performance of leaders and makes
recommendations on ways to improve leadership?
How effective is your succession planning? Do you have good role models and examples of
best leadership practices within your organization? Is leadership development built-in as part of
your overall strategic planning?<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
There are ways to change organizational culture and develop
quality leaders. What are you doing to
improve leadership within your organization?
In the end as in the beginning, ……it all starts with leadership.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
For more ideas on ways to recruit, retain and sustain
leadership, get a copy of “You and Your Nonprofit” (CharityChannel Press) and check
out other articles at <a href="http://www.nfpconsulting.blogspot.com/">www.nfpconsulting.blogspot.com</a>
.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<!--EndFragment-->NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com2tag:blogger.com,1999:blog-5920784251768094731.post-16328776350794497152012-10-29T12:01:00.000-07:002012-10-29T12:04:24.233-07:00Nonprofit Organization Culture<!--[if gte mso 9]><xml>
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<b><span style="font-size: 16.0pt;">Organization Culture Within Nonprofits<o:p></o:p></span></b></div>
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<b><span style="font-size: 14.0pt;">Norman Olshansky: President<o:p></o:p></span></b></div>
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<b><span style="font-size: 14.0pt;">NFP Consulting Resources<o:p></o:p></span></b></div>
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<br /></div>
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<span style="font-size: 14.0pt;">Leaders of nonprofits
understand that organizations must incorporate both science and art to be
successful. Science includes best
practices, policies, procedures, regulations, business planning, accounting,
marketing, finance, fundraising, programming, service delivery, etc.. It is “what” the nonprofit does to conduct
its “business”. Art focuses on “how” we
implement the science. It relates more
to the process than to the task. Much
of what we refer to as art is what establishes the culture of an organization.<o:p></o:p></span></div>
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<br /></div>
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<span style="color: #262626; font-size: 14.0pt; mso-bidi-font-family: Times;">Wikipedia defines organization culture as</span><span style="font-family: Helvetica; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">
the “organization’s values, visions, norms, working language, systems, symbols,
beliefs and habits.</span><span style="color: #002da3; font-family: Helvetica; font-size: 11.0pt; mso-bidi-font-family: Helvetica;"> </span><span style="font-family: Helvetica; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">It is also the
pattern of such collective behaviors and assumptions that are taught to new
organizational members as a way of perceiving, and even thinking and feeling.</span><span style="color: #002da3; font-family: Helvetica; font-size: 11.0pt; mso-bidi-font-family: Helvetica;"> </span><span style="font-family: Helvetica; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">Organizational
culture affects the way people and groups interact with each other, with
clients, and with stakeholders.” </span><span style="color: #262626; font-size: 14.0pt; mso-bidi-font-family: Times;"><o:p></o:p></span></div>
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<span style="font-size: 14.0pt;">I’ve worked or consulted with
many nonprofits, which have similar missions, budgets, and community
demographics but are VERY different from each other when it relates to
organization culture. The culture of an
organization is a major component to how it is perceived by internal as well as
external sources. The culture of an
organization can change dramatically over time with changes in leadership, both
staff and volunteer. Sometimes the
change is deliberate and other times not.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 14.0pt;">One such organization with
which I worked had passionate leadership who loved to debate issues at
meetings. No matter how well a
committee had presented a proposal, members of the board felt that they had to
weigh in on every detail and come up with its own recommendations. Meetings lasted forever. Tempers often spilled over. The chairman of the board often lost control
of the meetings. The board was divided,
without direction, and had difficulty attracting new members as terms
expired. Staff was not professionally
trained nor were they able (or willing) to change the dysfunctional “culture” that had evolved. Fortunately, a new chairman was recruited who,
from the start, expressed displeasure at the way meetings had been conducted
and the lack of respect board members showed to each other and to staff. He indicated that the only way he would accept
the chairmanship was with an understanding that board meetings would be kept to
a strict agenda with timelines and that he would not allow discussions that
were not on subject. Initially, he was
seen as a bit stern but he was able to use humor to soften the impact when he
cut people off or moved the discussion back to relevance. After a few meetings, there was a noticeable
change in how the board members related to each other and the quality of board
meetings. He insisted that the board
would not conduct committee work at board meetings. Gone at board meetings were the discussions
about decorations at events.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-size: 14.0pt;">In another organization with
which I was involved, it’s history and culture had been stable for many
years. A lot of attention was given to
succession planning for leadership and key staff. By the time a leader moved up the ranks to
the board or executive committee, they had been fully acclimated to the
organization’s operations. The culture
of the organization was buttoned up.
However, the culture also became very formal and so “businesslike” that
few people involved knew anything about each other outside of the time they
spent together working on issues related to the nonprofit. At one of the strategic planning meetings it
was noted that while the organization was successful, the environment was a bit
cold and not as enjoyable to be a volunteer or staff person as existed in other
local organizations. A task force was
given the responsibility to work with staff to address the concern and within a
few months there were social opportunities for board members to get to know
each other better and staff planned occasions for families of volunteers and
staff to visit the nonprofit, enjoy each other’s company and socialize. The nonprofit became part of each family and many
participants developed special relationships with each other outside their work
within the nonprofit. <o:p></o:p></span></div>
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<span style="color: #262626; font-size: 14.0pt; mso-bidi-font-family: Times;">A strong culture flourishes when clear values and norms guide
the way a nonprofit operates.<o:p></o:p></span></div>
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<span style="color: #262626; font-size: 14.0pt; mso-bidi-font-family: Times;">How does your organization treat its employees? Value its
volunteers and supporters? Encourage
transparency? Engage those who may be
different? Embrace diversity? Think
forward or just from crisis to crisis?
Encourage collaboration? Provide
ongoing training for leadership, volunteers and staff? Is willing to take risk? Provides a clean, safe and enjoyable
environment for staff, volunteers, members, clients, consumers of service,
funders, others?<o:p></o:p></span></div>
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<span style="color: #262626; font-size: 14.0pt; mso-bidi-font-family: Times;">When was the last time your organization took a look at its
culture to determine what if anything needs to be reviewed, changed or
enhanced?<o:p></o:p></span></div>
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<br /></div>
<!--EndFragment-->NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com0tag:blogger.com,1999:blog-5920784251768094731.post-68773742328758770622012-08-11T08:44:00.002-07:002012-08-11T09:26:25.813-07:00Corporate Engagement With Nonprofits: The Good, Bad and Ugly<br />
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<b><span style="color: #783f04;">Corporate Engagement With Nonprofits: The Good, the Bad and the Ugly</span><o:p></o:p></b></div>
<div align="center" class="MsoNormal" style="text-align: center;">
Norman Olshansky:
President<o:p></o:p></div>
<div align="center" class="MsoNormal" style="text-align: center;">
NFP Consulting
Resources, Inc.<o:p></o:p></div>
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<br /></div>
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Nonprofits would not be able to serve their communities as
well as they do without the involvement of volunteers and donors from the for-profit
corporate community. From those who feed
the hungry to board members who provide strategic and fiduciary direction,
volunteers from the for-profit corporate sector fill critical roles within
nonprofits.<o:p></o:p></div>
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<br /></div>
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While most nonprofits look to corporations for financial
support, those contributions only account for 5% of philanthropic support
nationally. Financial <span style="font-family: Calibri; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Georgia; mso-hansi-theme-font: major-latin;">donations by corporations fell by
more than 3 percent in 2011 from the prior year. However, corporate partnerships and
involvement are critical to the overall success of nonprofits. V</span>olunteer engagement continues to be
the major benefit derived from nonprofit partnerships with for-profit
businesses.<o:p></o:p></div>
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<br /></div>
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Engagement of for-profits with nonprofits can and should be
a productive one for the individuals involved as well as for the corporations
and nonprofit entities.<o:p></o:p></div>
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<br /></div>
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<b>Whether the desire to
get involved with a nonprofit is initiated by a corporation or individual,
first and foremost, there needs to be an interest in, and hopefully, a
commitment to the mission of the nonprofit.
</b>However, there are many other reasons corporations, professionals,
or other volunteers get involved with nonprofits.<o:p></o:p></div>
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<br /></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
1.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>Nonprofits provide a great way to meet people,
share experiences and learn from each other.
Many corporations encourage their employees to get involved with
nonprofits as a way to network and establish contacts and relationships, which
can benefit the individual and the company.
Depending on the goals for participation by the business, involvement
with certain nonprofits may be more meaningful than with others, based upon
their mission, geography, who are currently involved in their leadership, their
size, scope, and/or community image. A
business that sells pet supplies may be more interested in partnering with a
humane society than with an arts organization.
A tax and estate planning law firm may be more interested in partnering
with a community foundation or organization that is active in areas of planned
giving. <o:p></o:p><br />
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
2.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>Often, involvement with a nonprofit is initiated
based upon a pre-existing relationship with a friend or colleague who is
already involved with the nonprofit.
Furthering that relationship can be a motivation that results in a
willingness to get involved with the same nonprofit. <o:p></o:p><br />
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
3.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>Nonprofits provide a great opportunity for
volunteers to socialize, get to know others and share mutual interests. Volunteer activities are especially helpful
as a way to help those who are not well connected or knowledgeable about a
community to learn about and become more engaged.<o:p></o:p><br />
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
4.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>Involvement with nonprofits can also expand ones
knowledge and skills in areas, which can be applied within the for-profit
sector. By working on committees or on
projects with others who have extensive knowledge and skills, one can learn new
approaches and tools that are applicable back in the workplace. Nonprofits utilize volunteers in multiple
roles, and areas of planning, development, operations and oversight, which have
applicability to businesses such as marketing, finance, investing, budgeting,
facility management, legal, public policy, economic development, sales, human
resources, etc. Volunteers not only
contribute to the nonprofit’s body of knowledge but they often learn about and
are exposed to new knowledge, resources and skills which can be applied back at
their workplace.<o:p></o:p><br />
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
5.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>Involvement with nonprofits can also provide an
opportunity for businesses to demonstrate positive corporate citizenship, thus
adding to their own brand awareness and reputation. Customers respect and admire companies that
give back to the community and are involved in making the community a better
place for all.<o:p></o:p><br />
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
6.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>Employees are appreciative of their employers
who recognize the benefits of volunteer involvement and who encourage their
employees to be engaged as volunteers in the community. Employee engagement as volunteers with and
through their employers can help to build company morale. <o:p></o:p><br />
<br /></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
7.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>Most important, a quality nonprofit engagement
can be among the most personally rewarding and fulfilling experiences in one’s
life.<o:p></o:p></div>
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<br /></div>
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Over my many years of work with nonprofits, I have come to
appreciate and admire the many corporate partners and volunteers who have
worked with and on behalf of nonprofits.
There are also corporate/nonprofit partnerships that raise ethical questions,
and which can potentially hurt the reputations of both entities.<o:p></o:p></div>
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<br /></div>
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Case examples:<o:p></o:p></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l1 level1 lfo2; text-indent: -.25in;">
A.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>The law firm that offered a major gift and pro
bono legal services for a major nonprofit with the proviso that they would not
accept event sponsorships or advertising in their publications from any other
law firm. While that approach may have
been a smart business practice in the for-profit world, it put the nonprofit in
a very difficult position. In this case
it was a nonprofit serving children. If
they agreed to those terms they would put themselves in a situation where other
gifts from lawyers could be lost and fewer children could be served while
protecting the interests of the initial firm.
Would such a precedent then result in only accepting gifts from one dentist,
one car dealership, or one plumber?
While involvement with a nonprofit can help a business in many ways, the
primary engagement with the nonprofit should not be solely for business
development.<o:p></o:p><br />
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo2; text-indent: -.25in;">
B.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>Another more common example is the company that approaches
a nonprofit with an opportunity to make a percentage off of all sales by that
company during a set period of time from purchases made by customers who are
connected to that nonprofit and have been given a coupon by the nonprofit
provided by the company. Should a
nonprofit spend its time selling a product or business to its donors, members,
clients and “friends”, if the products being sold have no bearing on the mission
of the nonprofit? Should staff and
volunteer time be used to increase sales for that company? If the nonprofit did not have to promote the
project at all and the for-profit entity simply said that on a certain day X
percent of all sales would be contributed to a specific nonprofit, the offer
and involvement of the company becomes more of a philanthropic endeavor.<o:p></o:p><br />
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo2; text-indent: -.25in;">
C.<span style="font-family: 'Times New Roman'; font-size: 7pt;">
</span>A bank provides the major sponsorship for a
fundraising event. In appreciation of
their philanthropy, the financial institution was to be given significant
recognition for their gift by the nonprofit and an opportunity to have a
visible and prominent role at the event.
The bank made a request to have an opportunity to follow up after the
event with those attending the event and requested a list and contact
information on all attendees from the nonprofit as part of their sponsorship
agreement. It would not be appropriate
to share with them the contact information of attendees without the permission of
the attendees. In this case, the
nonprofit came up with an alternative arrangement and allowed the Bank to
conduct a door prize drawing. To enter, participants filled out a bank entry
form and gave their contact information with the knowledge that the bank might
follow up with them with more information about the company. The door prize was provided by the bank and
all aspects of the drawing were conducted by and identified as being a program
of the bank.<o:p></o:p></div>
<div class="MsoListParagraphCxSpLast">
<br /></div>
<div class="MsoNormal">
I often share as a positive example of good corporate citizenship,
the case of a national investment firm that encouraged its leadership to be
involved with nonprofits. For them, relationships with people of high net worth
were keys to their business success. They had representation as volunteers and
board members on many of the nonprofits in a particular region of the country
and ended up with the largest market share of nonprofit investments. Yet, their performance as investment managers
was not as good as the majority of their competitors. There was a reason they
were able to be so successful despite their performance. The nonprofits who utilized the firm had done
their homework, had expert leadership on their investment committees and had significant
reserves and endowments to invest. The
reason this firm still got the lion’s share of nonprofit business in that
region was directly related to the quality of involvement and ethical engagement
of the company volunteers within the community and nonprofit sector over many
years. The value of their corporate
citizenship, leadership and assistance to nonprofits far outweighed the lack of
return on the financial investments made with the bank by their nonprofit
customers. Good corporate citizenship
became one of the biggest business assets of that particular investment firm in
that region.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
As with any endeavor, that involves many different
participants, there are good and bad examples.
Fortunately, within the nonprofit sector, involvement with the for-profit community has overwhelmingly been a mutually
rewarding partnership that has been of tremendous benefit to the community at
large, the companies engaged and those served by nonprofit organizations.</div>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Corporate involvement with nonprofits <b>IS</b> good business.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
What are other examples you have seen of the good, bad and the
ugly?<o:p></o:p></div>
<div class="MsoListParagraph">
http://nfpconsulting.blogspot.com/2012/08/corporate-engagement-with-nonprofits.html<br />
<a href="http://nfpconsulting.blogspot.com/2012/08/corporate-engagement-with-nonprofits.html">Corporate Engagement with Nonprofits</a></div>NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com6tag:blogger.com,1999:blog-5920784251768094731.post-25832636713506866202012-07-25T14:07:00.001-07:002012-07-26T06:16:55.554-07:00Is the Use of Social Media for Nonprofits Worth the Time and EffortBy Norman Olshansky: President
NFP Consulting Resources, Inc.<br />
<br />
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</span></span></div>
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<br /></div>
<span class="Apple-style-span" style="font-family: 'Trebuchet MS';">
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">We are hearing a lot about the new
technology and importance of social media such as Facebook, Twitter, Linkedin,
Pinterest, etc. After all, social media was the powerful tool used to overturn
dictators and to bring public awareness to critical issues such as child
soldiers and Joseph Koni. Its use was also extremely effective in obtaining
financial responses to the earthquake in Haiti and natural disasters elsewhere.
So, given the success of viral marketing through the internet and social media,
why even ask the question?</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">Is your nonprofit using social media
effectively? What is the return on investment on the use of social media, given
the time it takes to post, read, respond, etc.? How much time is taken up by
staff and volunteers, which could be spent in more productive activities?</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">The simple answer to the initial question,
(Is the Use of Social Media for Nonprofits Worth the Time and Effort?) is,
…….“it depends”. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">Nonprofits use social media for many
different purposes among which are:</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">1. Building public awareness</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">2. Adding contacts for future cultivation</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">3. Spreading information about the
nonprofit’s mission</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">4. Providing information about blogs,
upcoming programs, activities, classes, training, webinars, events, performances,
etc.</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">5. Posting job openings</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">6. Seeking feedback to discussions and
questions</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">7. Encouragement of contacts to go to the
nonprofit’s web site for more information</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">8. Requests for information, donations,
volunteers, etc.</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">Social media fundraising is in its
infancy. Those who have been successful have built their network of contacts,
followers and “friends” over many years and are able to reach thousands of
potential donors quickly when an emergency or compelling case for support
arises.</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">Typically donations, obtained through
social media requests, result in small donations ($10-$100). Depending on the
number of gifts, the total could be significant. The keys to success are the
case for support and size of the potential pool of contacts, friends, and
followers. The strength of social media is in the ability to create a viral
message, one that your contacts will want to share with their other contacts.</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">While older adults are the fastest growing
users of social media, younger people are still the ones using social media the
most as a major form of their communication. Older adults have the greatest
giving capacity but young people are the future and key to long term
sustainability. <span style="mso-spacerun: yes;"> </span>Major gift fundraising,
which accounts for 80%-90% of all funds raised by nonprofits (especially for
annual, capital and endowment gifts) requires personal cultivation and
relationship building. While social media can be one tool used towards that
effort, the more personal effort is preferred.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; mso-pagination: none; text-autospace: none;">
<br /></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">Most nonprofits have not developed a
system and ongoing plan that has resulted in significant fundraising via social
media for annual operations. <o:p></o:p></span></div>
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<br /></div>
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<br /></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">The financial return on investment using
social media for fundraising is still minimal compared to other methods
of fundraising. Nonprofits, which are not using social media, need to do so to
the extent they are able. However, time spent on social media should not be
allowed to take away from the time spent on major gifts (prospect
identification, cultivation, face to face solicitation, and stewardship).
Consider social media as a way to be positioned for the future.</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">If you are just getting into the use of
social media within your nonprofit, think of it as primarily being a tool to
provide a</span><b><span style="font-family: "Trebuchet MS"; font-size: 16.0pt; mso-bidi-font-family: "Trebuchet MS";"> </span></b><b><span style="font-family: "Trebuchet MS"; font-size: 18.0pt; mso-bidi-font-family: "Trebuchet MS";">return
on image</span></b><span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">, or a </span><b><span style="font-family: "Trebuchet MS"; font-size: 18.0pt; mso-bidi-font-family: "Trebuchet MS";">return
on engagement</span></b><span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";"> rather than a return on investment (human
and financial resources).</span><span style="font-size: 16.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">There are many new ways to analyze the
information available through social media. Each have ways to look at metrics
to analyze usage, impact and characteristics of contacts and connections. Those
who are serious and look at social media as just one part of an overall
organization's strategic plan will be more successful than those who use it primarily
as a marketing bulletin board.</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">It’s easy to put in a lot of time and
effort into social media, but for it to be worthwhile one needs to evaluate
outcomes; what happens as a result of your efforts that will enhance your
organization’s mission and sustainability.</span><span style="font-size: 14.0pt; mso-ascii-font-family: Cambria; mso-bidi-font-family: Cambria; mso-hansi-font-family: Cambria;"><o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS"; font-size: 17.0pt; mso-bidi-font-family: "Trebuchet MS";">What has been your experience? How can
social media be used effectively by all-volunteer or smaller nonprofits? What
would you add to this discussion?</span><o:p></o:p></div>
<!--EndFragment--></span><br />NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com0tag:blogger.com,1999:blog-5920784251768094731.post-10806402720563412992012-04-09T08:23:00.002-07:002012-07-26T06:18:10.147-07:00Capital Campaign Budgeting: Beyond Construction CostsBeyond Construction Costs - Capital Campaign Budgeting <br />
By Norman Olshansky: President<br />
NFP Consulting Resources, Inc.<br />
<br />
<br />
<br />
If you and your nonprofit are considering a major capital initiative, such as a renovation or construction of new facilities, one of the first things to do is to develop a realistic budget, which you can use as a beginning basis for developing your campaign goal. Nonprofits usually start the process of budgeting by taking their “ideas and needs” to an architect who determines how many square feet of space is needed and then applies a formula for determining estimated cost for construction, furnishings and equipment. Too often, that number alone is what is used to estimate the budget for the project. As you can see from the following, there are many other items to consider for inclusion within your campaign budget that will contribute to the ultimate costs for the project.<br />
<br />
While the following list is not all inclusive and will vary based upon the size, scope and nature of a specific capital campaign, it can nevertheless be helpful as part of your considerations as you develop a preliminary budget/goal for your campaign.<br />
<br />
1. Land<br />
Land is a cost item to be part of your budget. Even if the land is donated, it is part of the overall project and needs to be taken into account when budgeting for the campaign. Keep in mind that there may be pre construction costs related to engineering, zoning, streets, infrastructure, soil testing, traffic mitigation, parking, utilities, etc., related to the land. Early in the planning process it is critical to consult with experts in the area of construction, legal and financial planning. The formation of a building and construction committee, which can advise campaign leadership and staff, will be very important and can prevent a lot of potential problems early in the process. Build in these additional costs to your budget in addition to the estimates related to construction, furnishing and equipment which you will obtain from the architect.<br />
<br />
2. Architecture<br />
It is always helpful to visit other facilities, which operate with a similar mission to learn what works and what doesn’t related to facilities. This may require adding necessary travel expenses to the budget. Keep in mind that construction costs are a one-time expense. However, operational costs are ongoing. Look for architectural input that will save on operating expenses. Landscape design, heating/air, utilities, storage space, etc. all can add or reduce long term operating costs depending on how they are initially planned. <br />
<br />
3. Construction<br />
Select a contractor that has experience working on similar projects and understands nonprofits. Take advantage of their expertise. Seek out their input on ways to save money both in construction costs and long-term operations. Make sure that when they give you a quote on costs that they have adequate contingencies built into their budget and that you have incentives for them to complete the project on time and on budget. In addition to the Contractor’s contingency, there should be an owner’s contingency within your overall budget. Typically there are costs that are not anticipated which fall outside the bid submitted by the contractor. Early, on one of the projects I was involved, a discovery was made that sewer lines were not as described in original County documents which added close to $150,000 of unexpected costs to compensate for and correct the problem. Your building and construction committee with the assistance of your owner’s representative (see item 4) should review the construction bids in detail and negotiate a fair and sound contract with the contractor.<br />
<br />
4. Owner’s Representative<br />
Engage a professional construction manager to oversee construction, review all stages of construction and validate billings. This person works for the nonprofit. The Construction company will also have its own construction manager/project supervisor, who will work closely with your committee and owners representative. <br />
<br />
5. Other special consultants<br />
If you do not have volunteers in your organization who can provide specialized services, you will likely need to engage specialists to help you with engineering, zoning, fundraising, marketing, etc. While a few large nonprofits have in-house staff with those areas of expertise, most do not. Make sure your budget has a line item for retaining specialists if needed.<br />
<br />
6. Financing<br />
Typically, nonprofits solicit capital campaign gifts which can be payable over 3-5 years. However, construction usually is started when sufficient pledges have been received (usually 80% of goal) Since the construction bills are often paid before all of the pledges have been collected, there is a need for financing of the project, using the pledges and/or other assets as collateral. The cost of financing needs to be built into the budget. Some projects obtain bridge loans or construction loans while other bond the project long term.<br />
<br />
7. Bad Debt<br />
Traditionally, charitable pledges have a very high incidence of collections. However, every budget should take into account the fact that there are likely to be a few people who are unable or unwilling to pay their pledges on time or at all. Depending on the size of the campaign, most nonprofits budget 2%-5% of the goal as uncollectible.<br />
<br />
8. Business Interruption and/or Moving Expenses<br />
During renovation or construction there may be a loss of revenues due to the project, which will have an economic impact on the organization. There are also moving and relocation expenses associated with new facilities. These expenses should also be included in the overall budget.<br />
<br />
<br />
9. Fundraising and Marketing<br />
Costs associated with mounting of a campaign need to be added to the budget. Depending on the size and maturity of the organization there may be a need to hire campaign management, administrative support, etc. In addition the organization may need additional software to track and acknowledge solicitations, pledges, accounting and tax receipts. Advertising, marketing, donor recognition, events, travel, meals, entertainment, etc. are all expenses, which should be built into the overall campaign budget. Depending on the size of the campaign, the costs for Fundraising and Marketing could be from 3%-10% of the overall goal. The smaller the campaign, the larger the % cost of fundraising and marketing.<br />
<br />
10. Start up Costs <br />
Often a new facility is built with the future in mind. More rooms, larger space, usually means higher operating expenses. The business plan for the organization in new facilities usually indicate that it will take a few years for increased usage, fees and memberships to cover the additional operating costs. It is appropriate and important to build into the overall campaign budget, some if not all, of the projected shortfall due to increased start up costs to ease the additional burden to the operating budget.<br />
<br />
11. Maintenance/Capital Reserve <br />
Annual operating costs for the new facilities beyond what is described in item 10 will need to be covered by ongoing fundraising and operating revenues not part of the capital campaign budget. However, it is always prudent, if at all possible, to include within the capital campaign budget, funds to start a reserve to cover major repairs that are usually not part of the ongoing annual maintenance budget of the nonprofit. A restricted fund can be set up and included in the capital campaign budget, that can be used in the future for items such as roof repair, resurfacing of parking lots, replacement of air handling systems, etc. In addition to whatever can be included in the capital campaign, it is always prudent to budget an amount each year from operating funds to be added to the restricted capital account for future use.<br />
<br />
12. Endowments <br />
Capital campaigns provide a good opportunity to build into the goal, <br />
endowments. Endowments can be set up for annual operations, special <br />
projects, fields of interest and/or capital reserves as described in 11. To the <br />
extent possible, endowments should be included as part of the overall <br />
capital campaign goal.<br />
<br />
<br />
Typically, ALL of the above budget items are included within a preliminary goal, which is tested as part of the pre-campaign planning and feasibility study. Once a determination is made as to a realistic campaign goal, the budget is scaled back accordingly or put into a multi-phased campaign. <br />
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A critical committee, in addition to the one responsible for building and construction, is the budget and finance committee, which oversees the full project budget, finances, loans and investing.<br />
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Other important committees will be the Fundraising Committee and the PR and Marketing Committee. <br />
<br />
Each of the four major committees (Buildings/Construction, Budgeting/Finance, PR/Marketing and Fundraising) should be accountable to the Board of the nonprofit and all will have input to the budgeting process.<br />
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For additional fundraising counsel on capital campaigns contact NFP Consulting Resources www.nfpconsulting.comNFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com2tag:blogger.com,1999:blog-5920784251768094731.post-19259601361247727392012-01-12T07:19:00.000-08:002012-07-26T06:18:49.833-07:00My Journey to PublishingI’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) <br />
<br />
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.<br />
<br />
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.<br />
<br />
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. <br />
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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. <br />
<br />
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. <br />
<br />
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. <br />
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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. <br />
<br />
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. <br />
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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. <br />
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Think about how similar activities could catapult your professional career…………NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com0tag:blogger.com,1999:blog-5920784251768094731.post-40096179729848829232011-07-27T12:26:00.000-07:002012-07-26T06:21:06.858-07:00Great new resource now available<strong>Want to learn more about nonprofit leadership, management and fundraising?</strong><br />
<br />
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.<br />
<br />
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.<br />
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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.<br />
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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.<br />
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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:<br />
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<em>“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.”</em><br />
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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.<br />
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“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.<br />
<br />
“You and Your Nonprofit” can be purchased at <a href="http://charitychannel.com/charitychannel-press/bookstore/productid/127/catreferrer/1420">http://charitychannel.com/charitychannel-press/bookstore/productid/127/catreferrer/1420</a> or at your favorite bookstore.NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com0tag:blogger.com,1999:blog-5920784251768094731.post-8234805819518211802010-06-24T09:23:00.000-07:002012-07-26T07:36:02.240-07:00How Well Are You Handling Risk in Your NonprofitHow well are you handling “Risk” in your nonprofit organization?<br />
<br />
By<br />
Norman Olshansky, President: NFP Consulting Resources, Inc.<br />
<br />
<br />
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.<br />
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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”.<br />
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When was the last time your organization conducted a serious risk management process?<br />
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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.<br />
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The following are a few of the more common areas of risk which can be assessed and addressed:<br />
<br />
1. Availability of Information for Decision Making<br />
2. Billing and Collections<br />
3. Business Expenses<br />
4. Business interruption<br />
5. Cash Management<br />
6. Continuity/Disaster<br />
7. Contract compliance<br />
8. Copyright infringement<br />
9. Corporate Governance<br />
10. Data Security<br />
11. Donor/member records<br />
12. Donor/member recognition and benefits<br />
13. Emergency preparedness<br />
14. Facility Management<br />
15. Financial Reporting<br />
16. Fraud & Ethical Behavior<br />
17. Fund Raising<br />
18. Gift Acceptance<br />
19. Harm to clients<br />
20. Human Resources<br />
21. Insurance/Risk<br />
22. Investment policies<br />
23. IT Infrastructure<br />
24. Litigation Risk<br />
25. Misfeasance/Malfeasance<br />
26. Malpractice<br />
27. Operational Quality Performance<br />
28. Personnel/Volunteer Behavior<br />
29. Regulatory Compliance<br />
30. Related Party Transactions<br />
31. Special Events<br />
32. Storm damage<br />
33. Subcontractor Utilization<br />
34. Succession Planning<br />
35. Tax Exempt Status<br />
36. Transportation<br />
37. Unrelated Business Income<br />
38. Use of intellectual property<br />
<br />
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.<br />
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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. <br />
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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. <br />
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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.<br />
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Consider some of the following questions:<br />
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?<br />
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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.<br />
<br />
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……….NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com1tag:blogger.com,1999:blog-5920784251768094731.post-59965447472155861712010-02-13T09:29:00.000-08:002012-07-26T07:37:06.306-07:00Major Gift Prospecting and PrioritizationBy Norman Olshansky<br />
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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.<br />
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For many organizations, I recommend the following simple and inexpensive technique to identify and prioritize major gift prospects.<br />
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<em><strong>The Task Group</strong></em><br />
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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.<br />
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<strong><strong>Brainstorming</strong></strong><br />
<br />
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<br />
<br />
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.<br />
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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.<br />
<br />
<strong>The Nominal Group Technique</strong><br />
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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.<br />
<br />
A. They have a history of being philanthropic<br />
B. They have a history of making gifts at our major gifts level<br />
C. They are likely to have an interest in our mission<br />
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.<br />
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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.<br />
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<em>(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.)</em><br />
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<strong>Fact Finding</strong><br />
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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. <br />
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A. Who in our organization knows this person and could be our key contact to invite them to learn more about what we do?<br />
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B. What other organizations are they involved with and what are their major philanthropic interests?<br />
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C. Do you know how much they have given to other charities?<br />
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D. Do they make their philanthropic gifts directly, through a foundation, donor advised fund, etc.<br />
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E. Is there anything you know about them that could help our staff or fundraising committee to engage them with us?<br />
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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?<br />
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G. Is there anything you know that might lower the priority level of this prospect?<br />
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<strong>Follow up</strong><br />
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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.<br />
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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.NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com1tag:blogger.com,1999:blog-5920784251768094731.post-40856867564772656242010-02-02T13:36:00.000-08:002012-07-26T06:23:06.346-07:00Tips on Volunteer Leadership Succession for NonprofitsBy Norman Olshansky<br />
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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.<br />
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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. <br />
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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:<br />
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1. Bylaws<br />
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The bylaws of the nonprofit should be clear regarding the organization’s leadership structure, process for nominations, elections, and responsibilities of leadership.<br />
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2. Job Descriptions<br />
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Nonprofits should have a clear and realistic job description for each leadership position that outlines the duties, responsibilities and expectations for each position. <br />
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3. Governance/Nominating Committee<br />
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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. <br />
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More on this process can be found at http://nfpconsulting.blogspot.com See article titled “How to Develop a Strong Fundraising Board”<br />
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4. Performance Tracking<br />
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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.<br />
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5. Orientation<br />
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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.<br />
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6. Chair/ED Consultation Input<br />
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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.<br />
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7. Chair/ED Working Relationship<br />
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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.<br />
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8. V.P./President Elect<br />
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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. <br />
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9. Past Chair<br />
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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.<br />
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10. Past Chair Transition<br />
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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.<br />
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11. Recognition and Stewardship<br />
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All outgoing leaders need to be recognized for their contributions to the organization and be part of an ongoing stewardship program.<br />
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When a nonprofit utilizes a well planned and implemented leadership succession process it sets the course toward future success.<br />
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<em><strong>Norman Olshansky, President of NFP Consulting Resources</strong>, 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.<br /><br />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 .</em>NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com4tag:blogger.com,1999:blog-5920784251768094731.post-54200619237559173842010-01-05T10:25:00.000-08:002015-02-05T06:29:07.334-08:00Nonprofits and PEO'sNonprofits and Professional Employer Organizations (PEO)<br />
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Norman Olshansky: President<br />
NFP Consulting Resources, Inc.<br />
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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. <br />
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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.<br />
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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. <br />
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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. <br />
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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. <br />
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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.NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com37tag:blogger.com,1999:blog-5920784251768094731.post-13769126537467111762009-12-26T13:04:00.000-08:002012-07-26T06:23:44.888-07:00How to Develop a Strong Fundraising BoardBy Norman Olshansky: President<br />
NFP Consulting Resources, Inc.<br />
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How can nonprofit organizations increase revenues? This is one of the most frequent issues that I am asked to address as part of my consulting practice.<br />
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Most nonprofits depend upon private philanthropy (in addition to user fees, memberships, grants, earned income, ticket sales, etc.) to support their operation. According to the AAFRC Trust for Philanthropy, 78.3% of all charitable contributions come from individuals. So if the largest portion of philanthropy comes from private, (individual) sources, what is the best way to seek out those funds?<br />
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There are many axioms related to fundraising. A few are:<br />
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You don’t get if you don’t ask<br />
Connect to passions, hearts and minds before you connect to wallets<br />
The quality of a gift is directly related to the quality of the relationship between the solicitor and prospect.<br />
Fundraising is both an art and a science. Success requires both.<br />
Most worthwhile endeavors, including fundraising, start with a clear vision/plan and require lots of planning, preparation, hard work, engagement of leadership and strategic execution.<br />
You can never thank a donor, volunteer or staff member too often. They are the keys to your success.<br />
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There is a direct relationship between fundraising success and the quality of volunteer and professional organizational leadership. Better leadership equals better success.<br />
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Nonprofit boards are usually populated by individuals who are committed to the mission of the organization. Many have come up through the ranks as volunteers within the organization. Others are on the board based upon their professional expertise in the areas related to the organization’s service, operations or administration. All too often, however, boards are lacking in members who have the characteristics necessary to obtain significant private philanthropic support from individuals. In addition, staff members are often ill prepared to be successful fundraisers, especially in the area of major gifts.<br />
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Staff members need to be trained, mentored and encouraged to engage in those activities that will contribute to fundraising success. New hires should be selected, in part, on their ability to provide professional leadership to the fundraising process.<br />
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When a board does not have sufficient members who have major gift fundraising experience, access to wealth in the community, and the ability themselves to be philanthropic leaders for the organization, steps should be taken to make needed changes/additions. The goal should be to bring onto the board and fundraising committee(s) individuals who have a positive passion for the organization’s mission, are known and respected leaders in the community, have the ability to inspire others, can recruit additional leadership, are able to make a major gift to the organization and can open doors to other major donors. The organization should be among their top philanthropic priority during the length of their service on the board or fundraising committee. Many organizations are at a loss on how to recruit board members with the above characteristics.<br />
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When a nonprofit does not have a strong board and needs to bring on new people, the following are a few steps to consider which have been successfully implemented by nonprofit organizations.<br />
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A. Put together a 3-5 member nominating committee drawn from your most prominent board members, current supporters and past chairs.<br />
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B. Have them, with staff input, develop a job description for leadership which includes expectations for participation, attendance, philanthropy and committee involvement. Establish what will be the length of service. Identify your expectations of time commitment, including time needed for the review of minutes and other materials in preparation for meetings.<br />
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C. Review prospect lists developed by the organization, as well as other input from leadership and staff, for names of individuals who would be ideal to involve in your leadership. Think high and boldly. Look at names of philanthropists and other leadership who have been successful with other organizations. Prioritize prime candidates with whom you have or can obtain access.<br />
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D. Cultivate your top choices through invitations to visit your organization and/or participate in small group briefings about its work. Provide a quality experience for the prospective leader when they visit/tour your operations.<br />
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E. Based upon their desire to learn about your organization and their reactions to cultivation activities, approach the key leadership prospects to obtain their willingness to have their names put into nomination for a board or key committee position. Show them an expanded list of people who are being considered. This will demonstrate to them the quality of people with whom you will be talking. Tell them that you are interviewing many people on the list to determine if their names should be put into nomination. Ask what they know and what their feelings are, about the mission and work of your organization following their visits and involvement in the cultivation briefings. After you answer any questions they have, show them the job description for leadership and ask if they would be willing to be considered, among others, for submission to the nominating committee. Emphasize that only a few of the people submitted, will be asked if they can be nominated for a slate to be presented to the existing board/membership. Ask for their bio’s, list of nonprofit board and leadership experience, and professional accomplishments. The purpose of this strategy is to build status for participation.<br />
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F. Avoid any indication of existing weakness or need to upgrade leadership.<br />
Make sure that the people talking to them are the select group that was recruited for the nominating committee. In addition you may want to involve your key professional from your organization (Executive Director, CEO, etc.) in the prospect meetings.<br />
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Recruiting the right people into leadership, who have demonstrated fundraising success in the past, in addition to training and mentoring existing leadership and staff in the art and science of fundraising will give your organization a tremendous return on investment.<br />
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(For more information on board development and nonprofit fundraising, go to <a href="http://www.nfpconsulting.com/">http://www.nfpconsulting.com/</a> )NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com2tag:blogger.com,1999:blog-5920784251768094731.post-80633904711152013072009-11-30T08:31:00.000-08:002012-07-26T06:24:54.546-07:00Before you start a fundraising campaignThe Pre-Campaign Planning Study<br />
By Norman Olshansky: President<br />
NFP Consulting Resources, Inc.<br />
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All too often, nonprofit organizations jump into fundraising campaigns without proper preparation and without a well thought out campaign plan. Initial volunteer passion and enthusiasm frequently results in a “ready-fire-aim” mentality. To achieve goals and “hit your targets”, it is critical to take time to properly “aim” before initiating your campaign. Whether you are getting ready to plan your next annual campaign, special event, capital or endowment initiative, there are several critical aspects of any fundraising initiative which should be addressed in order to develop a useful and realistic campaign plan. Answers to the following questions can help provide important information you will need to begin the planning process.<br />
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<strong>Do you have a compelling case for support?</strong>Why are funds needed? What will be accomplished with gifts to the campaign? How will it improve your organization? Will it provide better service delivery, more clients served, better return on investment, improved facilities, opportunities for expansion, improved quality, etc.?<br />
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<strong>How much do you need to accomplish your goals?</strong>What is your campaign goal? What are the components that contribute to the costs? Have you taken into account all of the projected expenses related to the project? (Staff costs, operations, administration, overhead, fundraising, marketing, events, recognition, reserves for uncollectible pledges, and if applicable, finance costs, capital costs, business interruption expenses, capital reserves, etc.)<br />
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<strong>Have you identified leadership?</strong><br />
Is your Board fully behind the campaign? Will they personally participate as donors and solicitors on behalf of the campaign? The key to success will be your volunteer and staff leadership. Do you have the right people in place to achieve your goals? Will they have sufficient time to devote to the effort? If you do not have the right leadership, what are your plans to identify and recruit additional leadership and/or staff?<br />
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Will you be able to engage and obtain support from your existing donors?<br />
Do they know about your plans? Are they supportive of your case for support? How can you engage, cultivate them and create enthusiasm for your project? Have you identified new potential donors? If not, what are your plans to identify and cultivate new prospects?<br />
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<strong>What are the internal factors that could impact your success?</strong><br />
Do you have internal systems, staff and back office supports that will be required? Is your database current and able to support your efforts? Do you have the initial capital and cash flow to support your efforts? What have you learned from your previous fundraising activities? What are mistakes that have been made in the past that need to be avoided in the future and what needs to be done to improve on past fundraising efforts?<br />
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<strong>What are the external factors that could impact your success?</strong>What has been the experience of other nonprofits who have initiated similar campaigns? Are there other competing campaigns underway or about to begin that could negatively impact your efforts? What is the image of your organization in the community? What are potential issues that could derail your efforts?<br />
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<strong>Do you have a sufficient prospect base to achieve your goals?</strong><br />
Based upon your goal, how many prospects will you need at each level of giving to produce the results needed? What is your prospect base? Have you developed a gift chart/pyramid that reflects your goal? What percentage of your campaign will need to come from leadership gifts? Do you have a sufficient number of prospects to reach your goal?<br />
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<strong>What are the key policy and procedural decisions which need to be addressed early in the planning process, such as:</strong><br />
A. Governance and Committee Structure<br />
B: Engagement, coordination and involvement of fundraising plans with<br />
construction, finance/budgeting, and marketing<br />
C. Recognition of donors and volunteers<br />
D. Decision Making Process-Authority and Accountability<br />
E. Gift acceptance<br />
F. Methods of giving<br />
G. Length of payout<br />
H. Reporting and Accountability<br />
I. Pledge/gift documentation, acknowledgement, billing, and receipting<br />
J. Acknowledgement of in kind donations<br />
K. Staff assignments and accountability<br />
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<strong>Have you evaluated and prioritized your plans based on the best return on investment of your organization's time and resources, both human and financial?</strong><br />
<strong>Fundraising is both art and science. Success requires both. </strong><br />
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There are definite processes, sequential steps, ethics, legal guidelines, tax laws, accounting and other requirements that need to be followed to achieve success. This is the science of fundraising. Just, if not more important, is the art of fundraising which focuses on relationships, personality, leadership, engagement and follow through.NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com0tag:blogger.com,1999:blog-5920784251768094731.post-14588808183825111002009-09-20T11:46:00.000-07:002013-12-11T14:56:39.317-08:00Fundraising Axioms: Simplified<div align="left">
<strong><span style="font-size: 130%;">10 Basic Fundraising Axioms: Simplified</span></strong><br />
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Yes, science, technology and skill sets are necessary to be successful as a fundraiser for nonprofit organizations. However, there are also several very basic axioms which, if followed, will greatly increase your success.<br />
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<strong>You don’t get - if you don’t ask</strong><br />
Being good at providing services and programs does not automatically bring in contributions. It’s relatively easy to identify prospects who care about your mission, have great capacity and are knowledgeable about your organization. However, they are not going to become donors until they are asked. Asking can be in many forms. For major gifts, a personal “face to face” request to a prospect, to consider a suggested gift amount, provides the best return on investment. However, grants, group meetings with a general request for donations, events and direct mail, can also be utilized as a method to make an ask.<br />
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<strong>Connect to hearts and minds before you connect to wallets</strong><br />
People are not going to make significant contributions to an organization that is of no interest and about which they have no personal connection or feelings. The ability to secure a gift and the size of the gift will be enhanced if the donor is educated about the organization, “feels” the importance of what is being accomplished and has a relationship (directly or indirectly) with the organization, solicitor, project or program. Cultivation of those relationships provides added value to the donor and organization.<br />
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<strong>Fundraising is both art and science. Success requires both.</strong><br />
There are definite processes, sequential steps, ethics, legal guidelines, tax laws, accounting and other requirements that need to be followed to be successful within a nonprofit engaged in fundraising. This is the science of fundraising. Just, if not more important, is the art of fundraising which focuses on relationships, personality, leadership, engagement and follow through.<br />
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<strong>The 80/20 rule is now 90/10 and applies to fundraising.</strong><br />
80% to 90% of funds raised typically comes from 10%-20% of donors. Most nonprofits obtain the largest share of their philanthropic income from major gift donors. Time spent on major gift solicitation provides the greatest return on investment of nonprofit resources both human and financial. However, the most important annual funds will come from existing donors. Do not neglect them or the importance of their gifts. Major gift activities should not be at the expense of retention of existing donors or of the importance of new donor acquisition.<br />
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<strong>The quality of a gift is directly related to the quality of the relationship between the solicitor and prospect</strong><br />
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Major prospects deserve personal attention. People give to people. Your relationship to the prospect has a direct impact on their gift. The more they know and trust the solicitor, the more comfortable they will be making a major gift. They need to know that they are getting accurate, current and reliable information about the organization and the impact of their giving. They also will be more comfortable knowing that the solicitor, with whom they have a relationship, is likely to be more familiar with their background, interests and abilities than would a stranger.<br />
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<strong>Avoid the ready, fire, aim temptation</strong><br />
Too often the desire - need to raise funds creates a sense of urgency which translates into volunteers and staff wanting to get started and solicit as many people as they can, as broadly and quickly as possible. Fundraising without a plan, organization, and discipline is an invitation to failure. There needs to be proper organization, leadership, communications, marketing, budgeting, back office systems and a well defined case for support. A campaign fundraising plan is critical and should be integrated within the overall business plan of the nonprofit. Fundraising should be conducted sequentially (top down and inside out). Initially the campaign should focus on the largest potential gifts and existing leadership of the organization. Events, group meetings and mass appeals should not be utilized until major gift solicitations have been addressed. <br />
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<strong>Leadership sets the example</strong>.<br />
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Before making their commitments, many major donors, corporations and foundations want to know that the leadership of the organization has demonstrated its fiduciary responsibilities, not only through stewardship of funds and budgets but also as donors. Early in any fundraising effort, Boards and leadership within the organization should be asked to participate as donors, to the best of their abilities. Full participation is as important, if not more so, than the total dollars raised from leadership.<br />
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<strong>You can never thank a donor, volunteer or staff member too often. They are your keys to success.</strong><br />
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Whether it be stewardship, public recognition, ongoing communication, personal thank yous, gifts, member benefits, etc………the more you are in touch with donors, volunteers and staff in a way that demonstrates your appreciation, the more likely they will be there for you when you need them in the future.<br />
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<strong>Donors expect and deserve a good return on their charitable gifts/investments</strong></div>
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Treat your donors as if they were major stockholders. They deserve to know how their investments in your organization are working and if the funds they have donated have accomplished the purposes for which they were given. The more you can demonstrate a good return on their investment, the more likely they will contribute in the future, and be a positive advocate for your organization in the community you serve.<br />
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<strong>Don’t do anything that you wouldn’t want to read about on the front page of the newspaper.</strong><br />
Nonprofits must conduct themselves ethically and appropriately if they are to maintain the trust and confidence of their supporters and those they serve. When faced with difficult decisions, nonprofits should take the moral high ground and work diligently to ensure that a culture is established that promotes ethical behavior at every level within the organization. Challenges will occur. Whether related to gift acceptance issues, donor requests for special treatment, financial management, reporting, disclosures, personality conflicts or other issues, every nonprofit will have to confront delicate and potentially controversial problems. How problems and challenges are addressed is a true test an organization’s strength and effectiveness.</div>
NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com0tag:blogger.com,1999:blog-5920784251768094731.post-7211944763857114472009-08-24T14:45:00.000-07:002012-07-26T06:25:21.524-07:00Fundraising Return on InvestmentBy Norman Olshansky: President NFP Consulting Resources, Inc.<br />
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You are an executive or key volunteer leader of a nonprofit who has been in your position less than a year. You know the honeymoon is over. One of the many issues you want to address is the concern that so much of your fundraising time, energy and resources are spent planning fundraising events. It seems like the mission of your agency has shifted, and staff as well as volunteers spend more time planning parties than delivering service. <br />
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Fundraising events can and do play an important role in many not for profits. However, too many organizations do not fully understand how to maximize their fundraising efforts. <br />
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This may seem like blasphemy to some, but events should primarily be utilized to attract new donors, cultivate existing donors and volunteers, say thank you to your donors, volunteers and staff, or to provide community education. For most organizations, events (with a few notable exceptions) should not be undertaken if they are expected to provide a good financial return on the organization’s investment of time and resources to produce the event. <br />
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According to the AAFRC Trust for Philanthropy, 78.3% of all charitable contributions come from individuals. It is also well known that 80%-90% of all funds raised from those individuals are from the top 10% of donors. In other words, major giving is where it’s at. This is not to preclude the importance of broad based memberships and giving at all levels, but rather to focus your fundraising energies on the best return on investment (ROI) of time, staff, volunteers, and other resources, facilities, etc. <br />
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Fundraising Costs and Return on Investment – National Averages <br />
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Direct mail to general lists <br />
(non donors) Cost 115% ROI 15% <br />
Special Events Cost 50% ROI 50% <br />
Planned Giving Cost 25% ROI 75% <br />
Direct mail <br />
(prior donors) Cost 20% ROI 80% <br />
Foundations/Corporations Cost 20% ROI 80% <br />
Major Gifts Cost 5-10% ROI 90-95% <br />
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National Average, <br />
all methods: Cost 20% ROI 80% <br />
(Based on: James Greenfield, Fund Raising: Evaluating and Managing the Fund Development Process) <br />
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The chart indicates that you would need to spend $1.15 in order to raise $1.00 through direct mailings to general lists. To solicit major gifts, you would spend 5 to 10 cents to raise $1.00. <br />
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When calculating ROI, keep in mind the indirect costs associated with fundraising. For example staff costs are not just for those who are directly involved with fundraising. Other staff and administration typically are involved as well, albeit to a lesser extent. The costs associated with staff and volunteer time, facility usage, overhead expenses, as well as out of pocket direct costs should all be factored into determining ROI. <br />
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From an ROI perspective, it costs less and produces more income to raise major gifts than to use other methods of fundraising. While a variety of methods should be used in each organization, all too often, nonprofits tend to utilize, to a disproportionate degree, those methods which produce the lower returns, (events and direct mail) rather than those that are more effective (major gifts).<br />
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Special events can build excitement, engage people, provide enjoyable opportunities for volunteers but they typically cost too much to produce to justify the amount of money they raise. As a result, most organizations are reducing the number of events they hold and are putting more emphasis on major gifts and planned giving. <br />
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Using the return on investment approach to analyze fundraising performance is an excellent way to engage leadership and staff on how best to plan your future fundraising activities. You will find that Board members who have for-profit business experience will likely better understand such an approach to planning and resource allocation.NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com5tag:blogger.com,1999:blog-5920784251768094731.post-74207628048169346722009-07-21T14:19:00.000-07:002009-07-21T14:20:48.173-07:00Best Kept SecretBest Kept Secret in the Nonprofit Sector<br />Norman Olshansky: President<br />NFP Consulting Resources, Inc.<br /><br />It seems strange to me that one of the best resources for nonprofit leaders and professionals, has such a low profile. <br /><br />This resource was founded in 1992 by an individual who saw a need for nonprofit leaders and professionals to “connect, share and discuss pertinent challenges and issues”.<br /><br />Even though over 100,000 people are subscribers today, few in our sector know about it. This resource has listserves, newsletters and courses for those who are interested or involved in nonprofit fundraising, technology, grants, boards, planned giving, foundations, governance, management, legal issues, major gifts, capital campaigns, consulting and more. Do you have an interest in nonprofit public relations, human resources, risk management, events, research, stewardship, accounting, or volunteers? You can connect with thousands of others who want to share ideas, answer questions, and provide support for each other. This is a resource where you will find newcomers and seasoned professionals.<br /><br />If you are looking for reviews of new books related to philanthropy and nonprofits, they provide that too.<br /><br />Do you prefer to chat online, communicate by video, or audio? You can do all three through this resource.<br /><br />Looking for a career in the nonprofit sector? Yes, they have job listings too.<br /><br />I have been an avid fan and subscriber for years and find it to be an excellent resource for those who are serious about their involvement within the nonprofit sector. <br /><br />It started and continues today under the leadership of Steve Nill, lawyer, technology guru and nonprofit consultant. I still don’t know how they are able to provide such an extensive service at such a low subscription. They do not advertise broadly which is why you may not have heard about them. <br /><br />Too good to be true? Not at all. Check out <a href="http://www.charitychannel.com/">www.CharityChannel.com</a>NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com0tag:blogger.com,1999:blog-5920784251768094731.post-78780292114870316552009-05-27T09:20:00.000-07:002012-07-26T06:27:31.086-07:00CollaborationBackground:<br />
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For many years, funders of charitable organizations have encouraged nonprofits to address more of their time and resources towards:<br />
A. Articulation and implementation of a clear vision and business plan<br />
B. Capacity Building<br />
C. Achieving a better return on investment on their charitable dollars<br />
D. More focus on long term sustainability<br />
E. Avoidance of unnecessary duplication with what is offered by other similar nonprofits<br />
F. Collaboration with other organizations wherever possible<br />
G. Increase Board/Staff Leadership development<br />
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Given today’s grim economic environment, poor investment performance and limited resources, funders are even more focused on ways to maximize the impact of their limited resources.<br />
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Nonprofits, have already been impacted by the declining economy and know that the conditions are likely to get worse before they get better. They are looking for ways to address flat or declining campaigns, the need to cut costs, increase efficiencies and find new ways to address total financial resource development.<br />
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The current environment can be used as a catalyst for funders and nonprofits to work together to address their mutual interests. The following are a few examples of areas of potential collaboration.<br />
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Facilities Management<br />
Accounting, Bookkeeping and Auditing<br />
Investing and money management<br />
Fundraising – especially for capital and endowment<br />
Staff and Leadership Development<br />
Purchasing<br />
Energy<br />
Fuel/Transportation<br />
Insurance<br />
Marketing and Public Relations<br />
Human Resources, and staff Recruitment<br />
Safety, Security and Risk Management<br />
Information systems and Technology<br />
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Many attempts to bring nonprofits together on collaborative initiatives have failed due to initial lack of trust between and among participants and a feeling that participation could result in a loss of control over their own destinies.<br />
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How collaboration is developed is the key to success.<br />
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Implementation Process<br />
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We recommend the following steps and are available to act as consultant/facilitators/project managers to the process. (Hereafter identified as “professional”)<br />
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The initial introductory process becomes critical to the creation of collaborative ventures.<br />
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There needs to be a funding organization or group of funding organizations which agrees to be the initiator of the process and take on this project. They need to be a significant player in the community and be respected by the organizations which will eventually be involved. The funding organization(s) provide initial seed money to retain a professional who will be the point person to work with participants. They provide the umbrella of legitimacy, seriousness and importance to the venture. They oversee the work of the professional.<br />
A “professional”needs to be engaged who has experience working on collaborative ventures with nonprofits and is seen by potential participating organizations as highly professional, empathetic to their needs and impartial.<br />
Initially, a group of organizations, which have shared characteristics, should be identified by the facilitating organization with input from the “consultant”. Those similarities could be mission, size, location, relationship to facilitating group and/or type of service provided.<br />
The first group could be seen as a pilot or test group which, if successful, could expand at a future date.<br />
The facilitating organization must be willing to step back and let participants determine if and how they want to proceed.<br />
The “professional” initially meets with recommended organizational Executives individually, to float the general idea that the facilitating organization(s) have proposed to encourage collaboration. Examples of what has been done in other communities is shared and a request is made for them to attend an initial meeting with other agency execs to determine if such an effort makes sense and the best focus area(s) for such a collaboration. It is important that the top professional executive of each organization be the initial contact and participate in the collaborative process with his/her peers from the other organizations. During the initial private meeting, the “professional” answers basic questions about the process and assures the agency director that there will be no requests for commitments from agencies until or unless a plan has been developed by the group that has the approval of each of the participants and their leadership.<br />
An initial group meeting of the organization Executives, who are willing to explore the idea, is convened by the facilitating organization(s) and led by the “professional” with no hidden agendas. Care must be taken that no one organization take over the process or become the “gorilla in the room”.<br />
Patience and time is required to make sure that all questions, concerns and details are addressed and processed with each of the Executives and that they are given the time to review the ideas proposed with their own leadership.<br />
Anything that is proposed must pass the test that it will benefit all participants, will be implemented in a fair manner, that all parties will have a say in the project and that there will be a large enough return on investment on time and resources to warrant going forward.<br />
It is critical that whatever is agreed upon also include the need for all of the participating organizations to have “skin in the game”, including financial and human resources commensurate with their size and abilities.<br />
Ultimately, whatever is agreed to must be formalized in memorandum of understandings between the facilitating organization(s), participating organizations and each other. These agreements will need to be approved by each of the participant boards.<br />
<br />
<br />
The initial collaboration should be one that is not too complex/complicated and has a high degree of potential for success. Once organizations have participated in a successful collaboration they are more willing to consider ventures that may contain more risk but which also can provide greater reward.NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com0tag:blogger.com,1999:blog-5920784251768094731.post-22116325840535713152009-05-02T19:44:00.000-07:002012-07-26T06:28:11.013-07:00Ten Tips for Soliciting Major Gifts for Your Congregation<div align="left">
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Ten Tips for Soliciting Major Gifts for Your Congregation </div>
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By: Norman Olshansky </div>
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If your congregation needs significant financial support, beyond weekly offerings and operating revenues, for a capital campaign or other special project, it is time to develop and implement a major gifts campaign.</div>
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This article shares tips that can be utilized to train and support leadership, staff, and clergy to become better solicitors of major gifts. </div>
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1. Do Your Homework</div>
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Make sure you are familiar with the needs, programs, and importance of the project. Review your congregation's "Points of Pride" (major accomplishments), and, if possible, be prepared to share a personal experience that impressed you about the special ministry that your congregation provides. </div>
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Gather important information about your prospect. To the best of your ability, together with other leadership and staff, develop a profile of the prospect:</div>
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* What are her/his interests?</div>
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* What has been their history within the congregation?</div>
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* What have they contributed to previously? </div>
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* What is the largest gift they have ever given?</div>
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* Do they give individually or through their company or family foundation?</div>
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* Do they have a donor advised fund with a local Community Foundation? If so, how large is their fund?</div>
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* Are they candidates for estate planning and/or deferred gift discussions?</div>
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* Who are their key financial advisors?</div>
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* Have they recently sold a business or inherited significant resources?</div>
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* How is their business doing?</div>
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* Do they have a loved one who may be appropriate for memorializing or honoring with a gift?</div>
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* Are there other people who can be supportive with the solicitation who have special relationships with the prospect?</div>
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* What are the likely concerns the prospects might raise in the solicitation?</div>
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* Determine in advance what would be the best setting to conduct the initial meeting.</div>
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* Would it be helpful to have clergy or others participate in the solicitation?</div>
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* What materials, handouts, or visuals would be helpful to have for the solicitation?</div>
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* Finally, establish a "rating" for the individual. How much should you ask them to consider as a gift?</div>
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2. Leaders Lead</div>
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As a leader of the campaign and congregation, it is important that you make your own gift prior to soliciting others. It will be easier to obtain a quality gift from your prospects if you are comfortable that your gift is also credible and a quality one, based on your own personal circumstances. The ability to share the fact that you made your gift, when you are soliciting, will give the prospect more confidence in your support and leadership.</div>
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Prospects will take into consideration what leadership has given in determining their own gifts. Initial gifts will be "yardsticks" for giving by those who follow. Remember that you are representing the congregation, and, therefore, you need to be a good role model in your relationships, communications, and giving.</div>
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3. Personalize the Solicitation</div>
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Major gift solicitations should not be conducted over the phone. Large gifts are often not closed with one visit. Family members, financial advisors, and/or business partners may need to be involved prior to a decision. Obviously, if you know who the key decision-makers are (if they are not your prospect), they should be included in the solicitation meeting. </div>
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A major part of the success of a solicitation is the chemistry of the relationship between the solicitor(s) and prospect, as well as how one is asked. If at all possible, at least two solicitors should participate in the solicitation. It demonstrates to the prospect the importance you have put on their gift, it shows that there are others equally committed to the success of the campaign, and it provides for different perspectives to be heard. </div>
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The old saying that two heads are better than one also applies to solicitations. While one person is answering questions or explaining the need, the other person can better observe responses, body language, etc. Evaluating the solicitation and together determining best approaches for follow-up are enhanced with multiple solicitors.</div>
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4. The Appointment</div>
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The most critical aspect of major gift solicitations is getting the appointment. Be enthusiastic and let the prospect know that you want to share with them some exciting information about the congregation. Note that the project is near and dear to you and that you would like to solicit their advice, involvement, and support. Make sure that you make the appointment at a time and place that is convenient for both the prospect and solicitors. </div>
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Also, try to schedule at least 30 to 45 minutes for the initial meeting. Try to avoid an environment where others may overhear conversation or where there will be distractions. If the prospect asks if you are looking for money from them, be candid and enthusiastic, such as, ''Absolutely. I would like to tell you about what's happening with the congregation and have you join me as a supporter this year. But, just as important, we would like to get your input on additional ways we can succeed in our efforts on behalf of our congregation, which is doing such amazing things.'' </div>
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Make it clear that you will be asking for their support. </div>
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5. Engage the Prospect </div>
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Do not try to close the gift too quickly. Share the mission, services, potential outcomes, points of pride, and needs of the project and congregation. While informing the prospect of the needs, you are also demonstrating the commitment of leadership. Donors want to be confident that the congregation and the project are being led by knowledgeable and committed leadership. Enthusiasm is contagious, and so is negativity. It's your choice. </div>
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6. The Meeting </div>
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Take a few minutes to break the ice and to establish a comfortable environment. Introduce yourself and those with you, through your involvement and commitment to the congregation. In a concise manner, share with the prospect what the congregation has accomplished. Refer to the Points of Pride. Emphasize the opportunities for the future based on the new vision and strategic plan for expansion or further development of the congregation. Discuss the importance of their participation, in addition to their financial support. The congregation needs their advice, expertise, identification of new leadership, and introduction to other prospective donors. Once you have shared your enthusiasm about the project and demonstrated the need, it is time to request the gift.</div>
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7. The Ask</div>
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Using the number that was agreed upon during the rating session (see item #1), the request can be introduced as follows: "We would appreciate if you would consider a gift of $ ___________ to the congregation's campaign." (If there are significant projects/or programs that need to be funded at the level of the request, mention the one or two that you think would appeal to the prospective donor.) </div>
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Once you have asked for the gift, it is time to be silent and let the prospect respond with questions or other comments. There is no need ever to apologize for asking for a gift. The individuals you are approaching expect you to ask, have likely been asked before by many other charitable organizations, and have, at times, been solicitors themselves.</div>
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8. Questions, Objections, and Dialogue</div>
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Answer the questions as best you can, but do not get into a debate. If you are unsure as to how to properly answer a specific question, tell the prospect you will find out the answer and get back to them or have one of the other leaders or staff provide them with the details. (Make sure you or someone on staff follows up promptly.) </div>
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If the donor offers a gift significantly lower than what was requested, you can supportively ask if, by spreading the gift over time, could it be more significant, or if it is structured as a deferred gift, with certain tax benefits, would they consider a larger amount? Do not press if they indicate that what they had offered is the limit to what they want to do. Thank them as enthusiastically as possible and ask them to complete the pledge card you have developed for the campaign.<br />
If they indicate that they want some time to think about it and discuss it with others, thank them for their consideration and request a specific time when you can get back to them for a response. Think of yourself as an enthusiastic and committed supporter; you are not "begging." Make sure that you are a good listener as well as a good presenter. </div>
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Let your prospect know how important their support is to the congregation and ask them if they can help you to engage others who may also be interested and have financial capacity.</div>
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Once the gift is closed, stress the importance of the congregation's need for cash by the end of the year. Thank them and have them complete the pledge card, which should also have information on how and when they will be able to make payments.</div>
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9. Follow Up</div>
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Make sure that appropriate staff and/or leadership are briefed on your solicitation, any new leads, and that there are follow-up communications thanking the prospect, even if a gift was not made. A handwritten thank-you note, from the individual who initially set up the appointment and/or was the solicitor, in addition to whatever is sent officially by the congregation, is always appreciated. Solicitations should be a positive experience for the prospect. A successful solicitation can set the stage for future involvement. An unsuccessful solicitation can turn off a donor to the campaign, as well as to future potential for support of the congregation.</div>
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10. Remember the Basics</div>
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There are several axioms that are basic to major gift fundraising:* Connect to your congregants' hearts and minds before you connect to their wallets.</div>
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* You don't get if you don't ask.</div>
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* Fundraising is both an art and science. Success requires both. </div>
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* The quality of a gift is directly related to the quality of the relationship between the solicitor (the person who asks) and the prospect (potential donor). </div>
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* Avoid the ready, fire, aim temptation. Planning and patience is very important.</div>
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* You can never thank a donor, volunteer or staff member too often. They are your keys to success.</div>
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* Donors expect and deserve a good return on their gifts to the congregation. They want to know their gifts are spent wisely and effectively.</div>
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* 80-90% of your special campaign will likely come from major gifts (10-20% of the donors).</div>
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Keep in mind that people are more likely to contribute to make dreams happen than to solve problems. The more you can connect the donor to the congregation and project mission in their hearts and minds, the more you are likely to connect through their wallets.</div>
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Norman Olshansky is president of NFP Consulting Resources, Inc., a full service consulting firm serving the nonprofit sector, <a href="http://www.nfpconsulting.com/">www.nfpconsulting.com</a>.</div>NFP Consulting Resourceshttp://www.blogger.com/profile/16773764314985204781noreply@blogger.com2