By Marion Lee, CFRE

If you have not read the June 30^th Chronicle of Philanthropy, you are missing out on one of the most interesting editions this year.  The article, The View from the Top: What Nonprofit Executives Report, is a great birds-eye view from a CEO’s perspective, and the annual Giving USA report had some surprises.

For the last 56 years, the Center on Philanthropy at Indiana University has published GIVING USA, an annual report on philanthropy.  Think of it as a philanthropic report card that can be your best friend when evaluating your development effort.

Other than cumulative gifts rising or falling, the statistics of where the money came from, and where it went, have pretty much stayed the same…until 2010.

Normally, we see that overall giving is up, (in 2010 by 3.8% over 2009, for a total of $290.9 billion) go home, have a glass of wine, and be happy.  But this year, we have to ask ourselves some questions:

• Overall giving from all sources, except foundations, was up, but did that increase go to support the missions of nonprofits or did it go to private foundations and donor advised funds?

• Giving to the arts, humanities and culture rose approximately 5.7%, while gifts to human services flat-lined for the first time in about 10 years.  In fact, giving due to the earthquake in Haiti offset what would have been a much greater loss of funding.  When adjusted for inflation, gifts to human services declined .3% – why?

• Giving to religion also declined (adjusted for inflation) by .8%, again –why?

• In 2010, there were 1,280,739 nonprofit organizations in the United States.  By June of 2011, 275,000 of them had lost their IRS status for failure to file legally required documents for three consecutive years.  Why did that happen?

We believe that the answers to all of the above questions lie in:

a)   the resounding need for nonprofits to develop and maintain a systemwide process of cultivation and stewardship

b)   a board of directors that is actively engaged in the fundraising process of the organization or lack thereof

c)    the resistance of volunteers and staff to asking for defined amounts for specific needs

d)   repeat (b) and you may have the answer–with the addition of board members working without training and appropriate education

Granted, some of these may seem like minor changes in the force field, yet we believe that subtle shakes like this are a portent of things to come.

We would like to hear your thoughts on these issues, so please chime in and give us your feedback.

By Mike Bacon, CFRE

It takes time and hard work to find the right person to lead a nonprofit or to be a Director of Development.  For any job search we conduct, we can receive as many of forty résumés, sometime more.  Not surprisingly, we see some great résumés and some really poorly written ones.

What makes a great résumé is a topic for a future article.  I want to focus now on the power of a good cover letter.

You might be shocked at how many résumés come attached to a two-sentence email.  Clearly, some candidates feel that the short email constituted their cover letter.  Yet that simple and seemingly expedient decision is a missed opportunity and potentially, a deadly mistake.  Why does a cover letter matter?

• Many searches involve a committee of volunteers, usually called the Search Committee.  These dedicated volunteers take their jobs seriously.  They scour résumés for mistakes, errors and improper grammatical uses.  They carefully read the cover letter, viewing it as evidence of a candidate’s writing prowess.  A powerfully written cover letter provides proof of your ability to convey ideas and convince a target audience.
• Your cover letter and résumé will be compared to those of other candidates.  If you have not written a strong cover letter, the Search Committee will view it as a weakness.
• Often, candidates are applying for a fundraising job but coming from a background or career that is not in the nonprofit sector or does not have a stated fundraising function.  A cover letter is the only chance you have to make a compelling case for yourself.  How have your past job experiences prepared you to do this new job?  Can you emphasize your customer relationship background and draw comparisons to donor relationship management?
• Read the job description for the position carefully.  Use the same verbs in your cover letter and share how your previous work is an exact match to the qualifications outlined in the job description.

Search committees (and search firms) are looking for reasons to either narrow down a large pool of applicants or to justify why a candidate should be interviewed in person.

You dramatically improve your chances of being in that set of candidates to be interviewed if you can skillfully use a cover letter to your advantage.  Explain why you want this job, demonstrate your past achievements, and convince us of your ability to succeed in this new job.  That’s what your cover letter can and should accomplish!

By Joyce Penland, CFRE

In a recent article in the Association of Fundraising Professionals’ weekly eWire, the trait of “resilience” was found to be one of the top skills needed to be a successful fundraiser.  I would certainly echo that sentiment.  Resilience means you’re not easily discouraged by the natural setbacks that occur when asking for money.  Nor do you take every “no” as a personal affront.  My mentors taught me early on that “A no is not a no forever.”  Resilience combines a healthy dose of self confidence, a passion for your cause, and the willingness to build relationships with donors who share that passion.  I concur that it is a valuable attribute in a successful development professional’s personal toolbox.

In addition to resilience, I’d rank the following characteristics at the top of the list:

Persistence – When I was a new Development Officer at Trinity University in the early 1980’s I was assigned a portfolio of prospects to visit for high end annual gifts.  I would dutifully call these prospects seeking visits to invite them to support the University’s Associates Program.  I learned that being persistent was perhaps my greatest strength.  I called repeatedly to ask for appointments.  In fact, one local businessman finally granted me an appointment because I wore him down with my persistent phone calls.   “I had a call from you every darn week!” he said when I met him.  “If you ever want a different job, come see me.”  If you cultivate this trait, your diligence in pursuing your prospects will garner results.

Patience – I learned a valuable lesson in patience early on in my career.  In my eagerness  to close a gift (and to demonstrate to my bosses that I had the “right stuff” to be a talented “asker”) I called an elderly prospect only a few days after visiting him.  Despite my best intentions, he set me straight pretty quickly.  “I won’t be rushed into making a gift, young missy!”  (While I was flattered that he thought me young at 31, I learned  that the larger the request, the longer it takes for a decision to be made.)  I didn’t do the important and essential work of asking him when he would like for me to follow up.  Being patient doesn’t come easily to many of us fundraisers, especially when the pressure to meet a budget crunch or to fulfill a specific call/visit “matrix” is expected.  I tucked St. Augustine’s quote:  “Patience is the companion of wisdom” into the top drawer of my desk and reminded myself I needed to practice this virtue if I was to become successful.  Your commitment to building your endurance quotient will serve you well in the development field.

Pliability – I like to think of myself as a fairly even-tempered individual with a “glass half full” view of the world.  This flexibility has been essential in my fundraising experience due to constancy of change.  I recall a trip to St. Louis when several visits with Trinity alumni and parents didn’t turn out exactly as I had planned.
My first visit with our wonderful Parents Fund co-chairs went awry when the restaurant where we were to meet for breakfast was closed.  Not just “not yet open” but shuttered and dark.  Since this occurred before cell phones and GPS, we rendezvoused in the parking lot and reconnoitered at the closest McDonalds instead.
My second appointment was with a successful young alumna who surprised me by bringing along a friend to our lunch meeting.  This interfered with my plan to ask her to move up to the next level of giving.  Instead, I shared the materials and followed up later in a phone “ask.”
My third appointment took me to the top floor of St. Louis’ tallest building only to find that my prospect had “flown to Canada about an hour ago” leaving me with a two-hour gap in my carefully-constructed travel plans.  Forging on, I used the time (and his office phone) to connect with my office.
You get the picture.  It’s the proverbial “when life hands you lemons…” scenario.  In development, with ever-increasing travel and visit expectations, one must cultivate a flexible, pliable M.O.  One former boss called this cultivating an attitude of “Semper Gumby” calling to mind the nostalgic cartoon character whose flexible green body was super elastic and lithe, equipping him for any challenge that came his way.  So, when you face a dreaded nemesis, or just a travel delay, exercising your pliability will help stretch your efforts.

Persistence, patience and pliability.  I can’t claim to possess them all in equal doses on any given day, but over a lifetime, these qualities have been essential in meeting the challenges of a career in development.

By Marion T. Lee, CFRE

Frequently, we are drawn into discussions that focus on the role of Board Members.  Many of these conversations take the tone of  “can’t live with them, can’t live without them,” and in some organizations, the relationship with the Board has taken on an armed truce mentality.  Although possibly warranted at times, this mindset becomes counter-productive to all aspects of a healthy institution.

Sometimes, staff can develop a “if it weren’t for them” mentality that creates negativity at the staff level and eventually filters through to the Board.  As staff members, particularly fundraising professionals, it is important that we work to create a positive partnership with Board members.  This most recent economic downturn has proven that an active healthy Board of Directors can make the difference in the survival of an organization.

The following are suggestions that may help bridge the gap with Board members:

• Be honest with them.  We cannot continue to lure people onto our Boards by telling them that we don’t need them to help us raise money or show up at meetings.  Prospective Board members should hear our expectations and we need to own up to the basic responsibilities demanded of Boards.

• Prepare them.  Create a comprehensive board orientation process that includes the time and financial expectations of your Board members.

• Give them tools.  Provide the Board with financials that are easy to read and comparative.  We don’t mean cut corners, but financials that are too detailed are often difficult to absorb.  Also, include benchmarking with previous years so that board members can put the financials in context.

• Inform them.  Make sure that the Board is aware of significant issues that may effect the institution.  Report on grant proposals that have been submitted, potential situations that may attract media attention and any donor concern that is not easily remedied.  Engage the board in problem solving when appropriate and most of all, never let a board member be blindsided.

• Engage them. Board members seek meaningful work.  Ok, we know many do not want to actively fundraise, but they can be involved in donor stewardship and cultivation.  Ask the Board to accept a short list of donor to thank by phone, email or handwritten note.  They can also partner with a development officer or executive director for coffee with a current donor or lunch with a prospective donor.

• Empower them.  Develop a screening and rating session for Board members to help you discover new prospects, assess prospect interest in your mission and giving capacity and determine the best person to make contact with prospective donors.

• Teach them.   Board members often need training in governance and fundraising.  Invite key Board members to attend AFP meetings, conferences and seminars.

• Recognize them.  Feature Board members in newsletters and other media.  Cameos on each Board member recognize the valuable service that they donate to the organization and give you a chance to get to know them better.

• Give them a story.  We are very lucky to have the job of seeing a mission work almost everyday of our lives.  Share those stories with the Board so that they too can see their work make a meaningful difference.

• Listen to them.  Board members often bring a bigger vision to an organization that can open a new path to achieving our mission.

Paulette Maehara, President and CEO of AFP said the greatest challenge we face in our profession is that, “There are not enough fundraising professionals to go around.” This is a significant challenge, one that can be mitigated by building an honest positive working relationship with those closest to you – the Board.

By Barbara Anne Stephens

Throughout the 1990s it was common for fundraising professionals to hear a particular phase uttered in reference to Board Members  —  “Give, Get or Get Off.”  Succinct certainly and harsh DEFINITELY!

That comment not only “disses” board members who are essential to the missions of our institutions, it also casts an unflattering light on development professionals.  Development officers, who should be integrally involved in the process of recommending directors, are also charged with preparing Board Members to make successful “asks.”  In other words, we need to “get” going to help ensure that our Board Members not only give, but also get.

For the sake of this website offering, let’s assume that the nonprofit organization has done a credible job of courting potential board members and that it has qualified its Board Members as people who will make annual gifts to the organization, will participate in fundraising and who may eventually make capital and planned gifts to the organization, if cultivated.  To put such valuable people in awkward situations where they are uncomfortable is not wise.  The answer is training Board Members to make “the ask.”

The following ideas will assist development officers as they prepare Board Members to make calls:

• Learn the case for giving and teach it to the Board Members
• Provide a donor’s giving history alerting Board members to confidentiality issues
• Create “talking points” for major solicitation calls
• Ask for a specific amount agreed upon by Board Member and staff
• Designating teams and team leaders among Board Members is an effect strategy
• Establishing fundraising challenges among teams motivates Board Members
• Remember Board Members don’t always have to ask for money, i.e. they can ask for an introduction to a potential major donor or foundation trustee
• Pre-select donors to give each Board Member an opportunity to be successful
• Visit personally with Board Members to discuss connections they are willing to make, doors they are happy to open, appointments they will request
• Role play is an effective tool
• Partnering with another Board Member or staff members may be required.
• Remember that “the ask” is part of a process that includes cultivation and stewardship with the goal of retaining the donor
• Model the art of making the ask by requesting a gift of the Board Member using the appropriate process!

The team at Bacon Lee & Associates realizes that this training effort adds a new layer of responsibility to the development staff.  It is a particularly difficult task if Board Members have been recruited with statements like, “We need your expertise, not your money” or “This is not a fundraising Board.”   Turning this wagon train around without throwing folks out of the wagon will not be easy:  however, change is worth the effort.  Consultants can be helpful because we can deliver difficult messages.  We can help prepare the most reluctant Board Members to become solicitors through training.  We can assuage the reluctance of CEOs to tackle this essential problem.

The results of working with Board Members can be transformational for an organization.  The amount of money given by Board Members increases and the amount of money raised by Board Members increases. The goal is to have a Board that is “self-policing” in governance, in hiring and evaluating the executive, and in ensuring that the mission is accomplished through effective fundraising.  In effect, development officers now have partners in achieving the mission of the institution.  Nothing is more satisfying to the professional or to the Board Member.  Effective Boards are essential to our organizations!

By Joyce Penland, CFRE

When setting a proper dinner table, one could argue that the meal is not complete without the basics:  the bread and butter.  Growing up in the Midwest, that was certainly the case in our household.  The bread and butter were the foundation of the meal and that is true of the Annual Fund within your fundraising program.  The Annual Fund is the foundation on which your entire Development program is built.

• It’s the money raised for your organization’s operating expenses;
• It helps meet your crucial and immediate needs;
• It is essential to the day-to-day support of your operation.

The Annual Fund establishes a pattern of giving for your constituents.  While not the largest gifts, the Annual Fund provides a pathway for donors of involvement in your mission and purpose, that, over time, leads to larger gifts.  The axiom remains:  The best prospects for major gifts are those who give to the Annual Fund.

That’s why we coach development staff members and nonprofit boards to focus first on building a strong Annual Fund so that it can provide the essential building block for future major gifts.  We have seen several nonprofits sacrifice their annual giving programs in order to “go after the big bucks” but rarely do major gifts arrive without having been solicited and stewarded first through good, basic Annual Fund work.

At Bacon Lee & Associates, we encourage nonprofits to use all of the “tools in their toolkits” by implementing the proven elements of annual giving work:

• personal solicitation of top-level leadership gifts;
• telephone solicitation of current and lapsed donors;
• direct mail for acquisition and renewals;
• emails to the growing numbers of your prospects who like this means of communication; and
• special events to build visibility for your organization and a rallying point for many volunteers.

Later this month, we’ll focus on best practices within the Annual Fund at the San Antonio AFP Conference February 24-25.  I’ll be moderating a panel of local fundraising executives who’ll share their expertise with concrete examples of successful (and not-so-successful) annual giving experiences.  Come learn more about building a strong foundation for your organization through the Annual Fund.

We at Bacon Lee & Associates are faithful members of the Association of Fundraising Professionals and benefit from so many of its services.  One of our favorites is the weekly AFP eWire that keeps members apprised of newsworthy events, trends, and activities that are important to fundraisers.  We were encouraged to read this good news in the January 25th edition.

According to a survey conducted during the first full week of the year, for the first time in four years Americans say they are likely to increase their charitable giving in 2011. Conducted January 6-10, the annual Dunham+Company New Year’s Philanthropy Survey found that:

• the number of households which say they plan to boost their giving increased 29 percent;
• the number of households which said they are likely to reduce giving fell 48 percent;
• 33 percent of households earning at least $50,000 said they planned to give more in 2011;
• nearly one in five of those earning at least $100,000 said they intend to give more (and 77 percent said they planned to give the same).

This is good news for nonprofits in our region and provides a much-needed boost to the fundraising climate of 2011.  Read more on the AFP website!

Here are the top suggestions from the Bacon Lee & Associates team in our Checklist for Starting the Year Off Right. As you review it, please let us know of other tips that can boost nonprofit success.

Checklist for Starting the Year Off Right

1. Pull up your list of the top 25 donors to your organization last year and make a plan no to thank each of them personally.
2. Decide now to read one good book on fundraising this year.  Mike Bacon’s pick for 2011?  Soon to be published Donor-Centered Leadership by Penelope Burk.  Another intriguing title:  Forces For Good- The Six Practices of High-Impact Nonprofits by Leslie Crutchfield and Heather McLeod Grant.
3. Pick an affordable training conference in a location near you.  Make sure that the sessions covered help you in your professional development.  Commit to attend the conference and build it (and the time it will take) into your calendar.
4. Be sure your January letters say 2011 not 2010!
5. Take the quiet time at the beginning of the year to review your board policies, by-laws, standing rules of order and any administrative policies.
6. January is also the best time to go through files.
7. This is a good time to update your resume.  Don’t forget to add all of the previous year’s successes and new responsibilities.  Keep a vitae that includes all of your speaking engagements.  This exercise will assist you when you apply for the CFRE certification or recertification.
8. Compile a list of the 10 top potential donors that you have wanted an opportunity to meet.  Set a goal of making that happen in 2011 and begin a strategy to accomplish it.
9. Update your Case Statement for annual support.  Include 2010 achievements and 2011 challenges.
10. Identify 10 current donors with a high probability to give significantly more than they do and plan three ways to cultivate each of them.
11. Review your web site from a donor’s point of view.  How easy it is to make a gift?  Is all the information accurate?
12. It’s never too late to dive into social media.  What new application will you learn this year?  Pick at least one and become an expert.
13. Remind yourself at the start of the year and every day you are leaving a legacy.

By Mike Patterson, CFRE

There’s a popular adage that is apropos to planned giving:  KISS.

Introducing gift arrangements to uninformed prospects is one of the most challenging aspects of any fundraiser’s job.  Unfortunately, many gift planners and development officers use technical jargon that is familiar to them but which a prospect may equate to trying to decipher an exotic foreign language.  Fundraisers find it easier to speak in their language than the donor’s.

The technological gobbledygook is evident in other aspects of the solicitation and marketing process as well.  It’s found in many newsletters, brochures, direct mail pieces and proposals.

That’s because fundraisers forget to Keep It Simple, Stupid!

Although gifts continue to be closed at charitable organizations, many gifts are undoubtedly lost because a prospect’s eyes glazed over at the plethora of unfathomable numbers or incomprehensible explanations.

If gifts are lost because a prospect can’t understand the concept, then the opposite must be true.  More gifts could be obtained if the prospect has a clear understanding of how the gift works and how it will benefit her and the organization she wishes to support.

There are several techniques fundraisers can use to present material in a more donor-friendly format and which can lead to more gift closures:

Personal Visits

Avoid using planned giving terms initially, such as charitable remainder unitrusts, gift annuities, lead trusts, and so forth.  Explain a gift-making concept in clear, exciting language, and stress how this can achieve great things.  Closely monitor body language, eye contact and engagement.  Check your progress by occasionally asking, “Do you have any questions about this?”  Or, “How does this sound to you?”

Planned giving consultant Winton Smith provides an excellent example of how to explain a life income concept:  “Imagine a gift annuity is a basket.  You put your money in a basket, and it pays you out of the basket for the rest of your life.  After you’re gone, what’s left in the basket goes to charity.”

He accompanies this explanation by drawing a basket on a yellow legal pad with arrows depicting where the money goes.  It is an effective, low-tech presentation that clearly illustrates how a life income gift works.

Brochures/Booklets

Avoid relying on brochures and booklets to explain a gift concept.  Although they are the mainstay of planned giving materials, they are often dull, lengthy and overly technical.  If you wish to leave something behind for the donor or provide an enticing offer through the mail, try shorter booklets or brochures that hit the highlights of the gift.  Or prepare a one- or two-page question and answer handout about a gift arrangement, printed on your letterhead.  It’s simple, readable and answers the key questions a prospect may have at a glance.

Direct Mail

Keep letters brief and to the point.  The tendency of many fundraisers responding to a query is to run a detailed gift illustration and include a cover letter spelling out the income, deductions, tax-free income, payout rates, etc.  (Some proposals to donors even include footnotes with legal citations.)  If the prospect was not intimidated when she opened the letter and glanced at the array of numbers, she may have made it halfway through the proposal before setting it aside to study later.  Chances are she won’t pick it up again.

The solution?  Leave out the legalisms and explain the concepts in plain English.  Keep the letter as brief as possible — one page is preferable — with only two or three key numbers.  Use bullet points.  Attach an at-a-glance sheet that contains the more detailed numbers.  And rather than a multi-page booklet, insert a brief question-and-answer explanation.

The proposal will be read and understood.  At this point, you will be in a much better position of advancing the gift and explaining the material in much more details.

So the next time you make that initial contact with a prospect, remember the process will go much more smoothly with a KISS.