By Amy Phipps

In the world of philanthropy, some things never change. Nonprofits doing great work inspire donors who want to give. But the “hands-off” approach of the past is changing. We are moving into a different world, one that is more participatory, and many donors see their role as being more than “just a giver.” They want to make an investment – monetary, emotional, or societal – that generates meaningful impact.

Consider the case of Mark Zuckerberg, co-founder of Facebook, who in December pledged that he and his wife would give away 99 % of their net worth. He’s doing that in a new way, though – his charitable foundation has been set up as a limited-liability corporation rather than a charitable trust. The LLC provides more flexibility (while still retaining tax benefits) that may allow the family to act more quickly when they see an opportunity for meaningful involvement. Zuckerberg has been criticized since then for making a move that seems less charitable, but the bottom line is that those who can understand his motives (and those of others like him) will be more likely to reap the benefits.

Forward-thinking grantmakers are constantly thinking about how to help nonprofits focus on long-term mission fulfillment. At the same time, they need to be sure they exercise due diligence in their grantmaking. Flexible funding is coming into play as a bridge between the two worlds. Grantmakers give nonprofits the flexibility to address urgent issues and develop their own solutions. Spending timeframes and reporting requirements can also be made more flexible, allowing grantees to spend more time working toward their mission, while preserving grant makers’ need for impact measurement. Grantmakers for Effective Organizations (www.geofunders.org) has some excellent information on how these investments can be managed as a “win-win” for both sides.

High-impact philanthropy has a new player in San Antonio — a local branch of Social Venture Partners launched here in March. Created in Seattle 14 years ago, Social Venture Partners borrows from venture capital practices to direct hands-on investments to support nonprofit organizations’ long-term sustainability. With more than 3,500 partners in 40 cities, they focus on long-term solutions and systemic change.   San Antonio executive director Harriet Harmon Helmle is gathering investment partners and researching local issues this summer; nonprofit partners will be approached at a later date.

So what does this mean to you? The common denominator is a desire for greater impact. When you are working with donors, be sure you understand their reasons for giving and the impact they’re looking for. Fine-tune your messaging so that it focuses on your impact. And remember that, regardless of the giving vehicle, it’s still the difference you make that inspires donors to give.

By Katie Noble Carpenter

“What do you want to be when you grow up?” It’s the question every child is asked at some point by teachers, family members, and even strangers. Those of us in development likely never considered answering this question with our current job titles. However, today we find ourselves achieving careers that serve our communities and make the world better than it was yesterday.

As the profession continues to grow and more people consider careers in development, we asked several seasoned development officers to share their reflections on the profession and tips for newcomers to the field.

What would have liked to know before going into a career in development?

Experts in the field wish someone early on had told them that satisfying work in the nonprofit sector depends on passion and relationships. The hours can be long because the mission often does not know the bounds of a 9-5 schedule, nor do donors only support your mission during typical work hours. Your passion for the mission of your organization, combined with the relationships you develop with people who make a big difference not only in your life but also in the lives of those your organization serves, will be what makes your career so rewarding.

Several development officers also wish they had been more aware from the start of the vast network of the professional fundraising and nonprofit organizations with which they could engage. Most cited connections they made and advice they received through their local chapters of the Association of Fundraising Professionals and continuing education opportunities (such as those offered at Rice University’s Center for Philanthropy and Nonprofit Leadership, and Indiana University’s Lilly Family School of Philanthropy) as providing good tools for professionals at all stages of their careers. For less formal sharing of best practices, newcomers can also subscribe to newsletters of nonprofits with missions similar to theirs or who are known to do a good job at communicating with their constituents. In short, peers can be incredibly inspiring!

What tips for success would you give new fundraisers?

 Similarly, we asked development officers what advice they would offer to new fundraisers. Resoundingly, the themes of persistence and communication prevailed. Good fundraisers share their organization’s vision and needs to the point of feeling like they are over-communicating.   Building solid relationships takes a lot of follow up that often begins as a one-sided effort. Even stewardship requires persistence. To this end, a successful development officer must be someone who cares for the people partnering with their organization. He or she has to find the balance between being mission-driven and valuing the people who share in that mission as volunteers and donors.

Finally, seasoned development professionals encourage newcomers and peers alike to remain curious and creative. As spokespersons for a nonprofit, it can be intimidating to feel like we must have all the answers all the time or must do things the way they have always been done.   Take time to find out the answers to questions asked of you—and to ask your own questions. The deeper you know your organization’s ins and outs, the better you can represent it. Think creatively of new ways to reach donors and constituents through special events, marketing, and communication vehicles.

Several experts mentioned that it is essential, especially in the first few months as a development officer or at a new organization, to spend a lot of time listening to fellow staff members, to board members, to volunteers, to donors, and to those served by your organization. Doing so will better equip you to learn the stories and unique features of your organization so that it will come to life for your donors.

By Karen Kegg

It’s hard to fathom, but before email and Facebook, people actually got together in person and caught up on the latest and greatest happenings in their lives. I grew up in Central Texas and had relatives in West Texas. The day after Christmas, my family packed up the car to go and see my great uncles, great aunts and cousins for our annual visit. It was our primary way to continue to connect with them, and to let them know how much they meant to us.

As fundraisers, the importance of visiting our prospects and donors in person still holds true. The personal visit powerfully communicates to our donors and friends how much they mean to us! An email or a Facebook message cannot take the place of a face-to-face visit.

Connecting personally to donors is an important and valuable strategy of cultivation and stewardship. As fundraisers, we are most likely the person the donors have the most interaction with and are “the face” of the organizations we represent. In order to bring donors and friends closer to our organizations, it is important to invest the time to get out of the office and connect with them. Even with our hectic schedules, it is essential to listen to our donors as they convey their ties to our mission and how they currently perceive the work of our nonprofits. The personal visit allows us to understand their values, their likes and dislikes. Many times, seeing their facial cues and hearing their voices, informs us when the time is right to ask for a gift. When you are on a visit remember to:

• Listen carefully to their interests, what they focus on and their concerns.
• Look around you. Note what they hang on the walls, what they like and value and, most of all, pictures of their family, trips and friends.
• Watch their body language. How do they react when they are excited, concerned or even angry?

So, when it’s time to come up with your nonprofit’s development plan, make sure you include donor visits every month. Spending quality time with your donors will pay off in all aspects of development – inquisition, cultivation, stewardship, and solicitation. When you think it’s impossible to get away from email and Facebook, be brave, pack up the car, and let your best supporters know how much they mean to you by visiting them in person.

And don’t forget the snacks!

By Marion T. Lee, CFRE

“The art and science of measuring, managing, and modifying both is the most challenging yet essential part of our work as volunteer and professional staff leadership.” –Michael Bennett, Executive Director, Daughters of Charity.

As we open a new year destined to be filled with challenges and exciting opportunities, we reached out to 20 nonprofit Executive Directors to find out what were the most pervasive issues enlivening their days and possibly causing sleepless nights.

We are very grateful for the excellent response to our request for information, with 18 of 20 Executive Directors responding to our survey questions. They represent nonprofit organizations from Corpus Christi to Dallas, and College Station to Midland. 50% of the Executive Directors represent human service organizations whose missions primarily focus on children, 30% were human service/health organizations with constituencies including adults, the elderly and children, 10% represented arts and cultural organizations and 10% focus primarily on education for young adults. Their organizational annual budgets range from $300,000 to $6 million and professional experience in the nonprofit field ranged from five years to 25 years.

Now that you know a little about them, let’s see what is on their minds for 2016:

100% of the Executive Directors expressed deep concern for the overall sustainability of their organizations’ current programs and services.

90% mentioned their concern at a lack of a succession plan for key staff.

80% stated that overall demand for services were rising, as the margins were decreasing. These Executive Directors represent organizations that receive funding from local, state or federal government sources. In many cases, these funds, per head/per bed are diminishing.

70% expressed their desire to expand and grow their programs but are worried that funding will be difficult to find.

75% noted that their Board of Directors lack ownership in the organization’s mission.

75% also expressed concern at a lack of Board leadership and Board member succession.

These nonprofit executives said that succession planning, sustainability and engagement are the recurring challenges on the local and state level as well as on the national level. When times are good, they said, it is easy to put board orientation, succession planning and fundraising expectations on the back burner, but when the margins tighten, they wish they had made those basic processes more important.

So, how do we turn the tide before we get behind the wave?

We at Bacon Lee & Associates think the solution is two-fold – invest in the organization’s non-programmatic infrastructure and follow best practices in board governance. Investment means ensuring that Boards of Directors have been given clear, consistent expectations—from attendance at meetings to gift getting and giving–and that they receive adequate orientation and training for their role. Investment also means committing to strategic planning, succession planning, and board development.

Nonprofit Executive Directors said that they know that building strong and engaged boards will lead to greater engagement and an increased likelihood for fundraising success, but they also agree that frequently they are so focused on program delivery, that they do not invest in the board processes until their overhead situation begins to get tight.

Resounding in all of the feedback from these strong, wonderful Executive Directors was a deep and sincere commitment to their missions, their service groups, their staffs and to the betterment of their communities.

By Priscilla Guajardo Cortez, J.D., M.Ed.

We all have one – that trusted someone you go to when you need honest, unfiltered advice and perspective. A best friend not only knows you well, but also makes it their mission to keep you out of trouble and headed in the right direction.

I met my best friend in the fifth grade. Throughout our 30 years of friendship, we have seen each other through many experiences – remember the embarrassment of braces in junior high? I can always count on her to listen, give it to me straight, and hold me accountable. Sometimes, she tells me things I don’t want to hear but ultimately her feedback proves helpful.

Capital campaign feasibility studies are like a nonprofit’s best friend. When making the decision to embark on a major fundraising initiative, it is important for an organization to have a source of reliable information and answers to questions that will ultimately shape what they do, how they do it and when. Like a best friend, a feasibility study should do the following:

1) Ask hard questions; give candid opinions
A feasibility study provides the best opportunity to talk with donors and other key stakeholders to gauge their perception of your organization, your project’s philanthropic viability, and who is most likely to support your efforts through leadership, time, and gifts. Asking the tough questions before starting a capital campaign allows you to hear the good, the bad, and the ugly and respond and prepare accordingly.

2) Strengthen the relationship
Relationship building begins or is further developed with the feasibility study. Soliciting the advice and perspective of those already close to your organization and those you want closer helps to build mutual trust and respect which can set the stage for a successful campaign.

3) Develop a plan of action
Every capital campaign is different and therefore a one-size-fits-all approach won’t work. Even best practices and proven strategies must be adapted to your organization. Any planning, including objectives, goals, and messaging, should be unique to your organization and project and based on the feedback of your donors and stakeholders and the specific challenges identified in the feasibility study.

4) Provide momentum and encouragement
The feasibility study process itself can begin to build momentum for any capital campaign. And, when an organization successfully moves into a capital campaign following the study, this momentum can be maintained. Not only do donors and campaign leaders perceive a sense of confidence and enthusiasm in your project, but also they believe they can help accelerate the momentum by providing personal financial support and attracting others to your campaign.

5) Protect from negative experiences
No one wants to fall short of their goal nor waste the incredible amount of time and dedication provided by staff and volunteers. A feasibility study provides an accurate assessment of your readiness and appropriate size of your campaign thus protecting the organization and its supporters from a negative or worse yet potentially embarrassing experience.

So, when your organization is considering a capital campaign, I recommend reaching out to your best friend – the feasibility study – for help and direction. My best friend continues to give me motivation and encouragement but instead of braces, now we talk about wrinkles! Good luck!

By Joyce Penland, CFRE

As we approach the end of 2015, we want to share some good news about this year’s fundraising successes among our nonprofit friends locally and regionally. Our goal is to counter the often-dismal stories we read about how our state and region is challenged philanthropically, especially in light of recent declines in gas and oil prices, and the continuing unease among investors.

So, we asked a number of our friends to share their significant triumphs in 2015, and we heard some really good news!

Trinity School of Midland reports that its most significant gift this year was $1.2 million “from a family full of School alums that have a long and special history with our School.” Kobi Lincoln, Development Director, noted that Trinity had successfully closed a noteworthy $17 million campaign earlier this year to build new upper school classrooms, administration building, performing arts center and student center and continues to attract loyal support among its donor base.

Boys & Girls Clubs of San Antonio tells us that it recently publicly announced a $10.9 million capital campaign, “Invest in a Child. Build a Great Future.” The campaign includes the $4.8 million Mays Family Clubhouse, the seventh in the city, which will open Fall 2016. In addition to the new clubhouse, the campaign will fund improvements at three other branches, upgrades to its transportation fleet, and funding for multiple years of operating expenses. The campaign includes $1.8 million from San Antonio’s 2012 Bond Program, and $8.4 million from private gifts including $2 million from the Mays Family Foundation, $1 million each from the Najim Family Foundation and Valero Energy Corp., $750,000 from the Greehey Family Foundation and $500,000 each from Kronkosky Foundation, the Goldsbury Foundation, and Gregg and Erin Popovich. Zuani Maria Villarreal, Director of Development, said only $600,000 remains to be raised towards the campaign goal.

Peterson Regional Memorial Hospital Director of Development, Tom Martin, informed us that it is 32% toward its campaign goal of $ 8.5 million in only five months duration. The goal is to build a Hospice and Home Healthcare building, a new Heart Suite and add needed medical equipment in the regional hospital in Kerrville, TX, and that mission is empowering a strong group of volunteers going into the community for support. The campaign team recently brought in a significant $1 million gift. Martin says it was the “combination of good training, good volunteers, a good mission” that is providing the campaign’s momentum.

Trinity University recently conducted its first “24 Hour Giving Challenge” and invited current and former donors to make a gift during a 24-hour period on Wednesday, October 28. The challenge included the prospect of a matching gift: If 480 donors would give any amount, then three anonymous donors would contribute $24,000 for student scholarships. Cynthia Cortinas Uviedo, Associate Director of Reunion Giving, reported that 863 gifts were received in the allotted time period, meeting the challenge. “It was the highest number of gifts in a single day in Trinity’s history!”

We’re eager to hear your good news! Send us an update of your organization’s significant gifts for 2015 and we’ll include them in a future newsletter. Email me at jpenland@baconlee.com

By Alexis DeSela

Is your organization going through an important transition? Are you getting ready to undergo Strategic Planning? Or, do you want to gauge the overall health of your operations as you grow your mission? Then, the CCAT is an important tool to use to help guide your endeavors.

The Core Capacity Assessment Tool, or CCAT, is a nonprofit-specific survey that is usually taken by senior executives and the Board’s Executive Committee. The questions are grouped to assess an organization’s four core capacities: Adaptive, Leadership, Management, and Technical.

The CCAT results allow organizations to better understand the health of their operations. It helps organizations focus on areas where current improvement opportunities exist, or where they might evolve. It also provides recommendations to implement on your own or with the help of a consultant. We often receive calls from clients seeking our assistance after they have taken the CCAT. The major areas we are usually engaged for are strategic planning, improving fundraising efforts, and increasing Leadership and Management effectiveness.

We can also help executives better navigate and evaluate their results by exploring the nuances of their particular organization and reviewing specific areas in more depth. Usually, the CCAT provides several recommendations per area. We can help you review the recommendations, prioritize, and focus on the areas that will have the most impact and make the most operational sense for the organization at a particular point in your life cycle or funding cycle.

One of the more important considerations for taking the CCAT is to use it as part of an organization’s strategic planning process. The CCAT is an essential tool when undergoing strategic planning, and we use the results as part of the internal environmental scanning process, which asks organizations to carefully review their current structure, systems, programs, processes, and people. We use this data to go through the SWOT exercise to help you determine what programs, services, or operational aspects should be strengthened, optimized, fixed, or abandoned.

Here’s a real-life example the CCAT in action. Not long ago, Marion Lee and I utilized the results of the CCAT process to assist the Helotes Humane Society. We led the board through intensive board governance exercises and through strategic planning. We helped board members and staff work through a variety of funding and governance issues, and, as a result, the organization hired a new Executive Director, relocated the animal shelter and worked their strategic plan very effectively.

Scholarship opportunities for taking the CCAT exists through some foundations, and you may also purchase it on your own. For in-depth information about the CCAT, please visit: http://www.tccccat.com, and if your organization has taken it and you are interested in a more focused review as you make implementation decisions, please contact us.

By Marion Lee, CFRE

There is a breeze wafting through the Texas nonprofit world and it is fresh, bright and filled with promise. Strategic planning in its purest form is on the rise, and capital campaigns are flourishing. The success stories of campaigns finishing in record time are no longer urban or rural myth and legend.

It’s a truly is good day in the nonprofit neighborhood. We have clients in Brownsville, Houston, Midland, Austin, Kerrville, Fredericksburg, Stephenville, and San Antonio and across most of East Texas. All of our friends have great successes to report and it all stems from having a positive attitude and a creative, honest story to tell that speaks to the heart.

Yes, we have all heard your organization’s mission, but have we heard your story?

• Do you have one that you can share that touches the heart or tickles the funny bone?
• Does your board have a story to tell about someone you have educated, made healthier, fed, protected, introduced to an art or just made their day a little bit easier?
• These stories are what capture the donor’s attention, and more than that, inspire their empathy and philanthropy, and make them a part of your mission.

Recently I was teaching in a small community and asked the board what was their mission. Not a sound. So, I asked someone – anyone to tell me a story about a client whom the nonprofit had helped. Crickets. The board members are sweet, decent people who could not begin to tell me what they do or how they help people. They were unprepared and without the needed tools to fulfill their own mission.

Many of you have board members who do not have hands-on experience in delivering service to your community. Sometimes it is not practical, but even if they can’t roll up their sleeves, you can give them the most powerful tool to help move your nonprofit forward. A board member with an honest story about a client is a powerful advocate. So, you have several choices:

• Have a client or participant speak to the board in a “mission moment.” It only takes 3 minutes to bring reality into the boardroom.
• Write a series of short stories that describe your clients’ challenges and their successes. Give these to the board and ask them at a board meeting to talk about the one that is most meaningful to them.
• Treat your board like you would a prospect or donor. Invite them to tour your facility to see your program in action. Nothing stirs up the Generals like being out on the field.

Most of all, ask for their reactions to the your clients’ stories. Don’t just hand it out and hope for the best. Ask one of your volunteers to tell you which story means the most to them and why. Oh, and let’s not leave out being creative. If we can put the FUN back into fund raising, we can inspire our volunteers and enjoy life along the way.

Here’s an example:

First Baptist Church San Antonio raised the needed funds to replace its HVAC system. Few things out there are as sexy as a new HVAC, but when you are a church the size of FBC, it’s a major endeavor. So, a positive thinking volunteer asked the congregation to hold up their programs and wave them, and then he reminded them that if they didn’t raise the needed funds – this would be how they would be getting air conditioning this summer. You gotta smile. Although it cost seven figures, they did it in four months.

To celebrate the church’s success in raising the funds, this same smart volunteer invited everyone to gather in the parking lot around the large compressor that would be raised five stories high. Using Sharpies to write their favorite scripture on the side of this huge piece of equipment, the congregation celebrated their success.

By Joyce Penland, CFRE

As a knowledgeable nonprofit executive, you know that having a passionate, involved and supportive board of directors is essential to the long-term health of your organization. Nonprofits thrive when they can motivate and engage an influential board of directors to embrace your vision and mission and who will work as ambassadors for you. So how do you go about building a board of caring, involved and philanthropic individuals? It starts with you. Your first step is to answer these questions:

• Does your current board represent differing spheres of influence?
• Does it have expertise in various areas that are valuable to your agency?   These include legal, accounting, marketing, construction (especially as you consider adding to your present facilities), human resources, banking, fundraising, etc.
• Do your board members have influence? Do they personally have affluence or know others of affluence?

After looking carefully at the current makeup of your board, you need to bring together your nominating committee to help brainstorm names for your nonprofit board. If you don’t have a nominating committee, establish one. Its role is to bring viable names to the table for discussion and informal “vetting.” Finding the right people to serve on your organization’s board goes beyond, “Hey, I have a neighbor who’s not doing anything these days, I’ll bet he would help us.”

We cannot overemphasize the importance of the nominating process. Too often boards simply rely on the Executive Director to come up with new names for board members. Or, board members quickly rush to add a friend or colleague to the board without truly knowing how that person will impact the board’s makeup. The vetting process is time-consuming, but it is worth the effort to bring persons to the board who can make a positive impact.

We recommend getting to know your potential board candidates through a series of sessions known as “dating” your prospects. Such dates include giving current board members an opportunity to meet the prospective candidates over coffee or lunch, and to listen carefully to the prospective board members’ thoughts about your organization. Ask questions about their passions, their current involvement with other agencies, and their all-important “sphere of influence.” The “dating” period also allows the candidates to get to know the nonprofit through tours of your facilities, the sharing of your strategic plan, and discussions of your vision for the organization’s future. After a series of dates, you and your nominating committee can narrow the list to the most viable candidates who can bring the most value to your board.

Keeping a well-cultivated “short list” of potential board members will help you fill unexpected vacancies that occur, as well as to expand your current board with new strength, renewed energy and increased “reach” to potential new funders.

Need to boost the influence, affluence, and “reach” of your current board? It starts with you. And if we, at Bacon Lee & Associates, can help you identify more ways to find new board members, contact us.

The Giving USA report on 2014 charitable giving in the United States announced that Americans gave an estimated $358.38 billion to charity last year. Last month we looked at what sparked the record-setting philanthropic trend. This month we’ll examine who gave and who received.

Who gave in 2014?

Individual giving, at $258.51 billion, increased 5.7 percent in current dollars (and 4.0 percent when inflation-adjusted) over 2013. “Mega gifts” of $200 million or more by young, tech entrepreneurs made a large impact on the increase in individual giving, according to the report.

Foundation giving, at $53.97 billion, was 8.2 percent higher than 2013 (the increase was 6.5 percent when inflation-adjusted). Not only did total giving by foundations grow 8.2 percent in 2014, gifts from all three types—community, independent and operating—also went up.

Bequest giving (giving through wills and estates), at $28.13 billion, increased 15.5 percent (13.6 percent when inflation-adjusted) over the previous year.

Corporate giving, at $17.77 billion, increased 13.7 percent (11.9 percent when inflation-adjusted) over 2013 giving.

Who received the gifts?

 Giving USA’s research reports on nine different categories of charities, showing the following results for 2014, in descending order by amount:

• Religion—perennially the largest slice of the giving “pie” at $114.90 billion, increased 2.5 percent in current dollars. However, giving to religion has declined over time, according to the report, reflecting that fewer Americans currently identify with a religion, attend worship services or give to houses of worship.
• Education—giving increased to $54.62 billion, 4.9 percent more in current dollars than the 2013 total. The report stated that giving to education, particularly higher education, continues to be strong. In the giving total are several multi-million dollar gifts, including two of more than $100 million, to support medical research on university campuses.
• Human Services—its $42.10 billion total was 3.6 percent higher, in current dollars, than in 2013. The report notes that giving has increased annually since 2006, when adjusted for inflation, although growth has been modest. “This category which provides essential services to low-income households, youth and communities, continues to be of central importance to Americans when it comes to charitable donation decisions.”
• Foundations—at an estimated $41.62 billion in 2014, giving grew 1.8 percent in current dollars.
• Health—the $30.37 billion 2014 estimate was 5.5 percent higher, in current dollars, than the 2013 estimate.
• Public-Society Benefit—the $26.29 billion estimate for 2014 increased 5.1 percent in current dollars over 2013..
• Arts/Culture/Humanities—at an estimated $17.23 billion, growth in current dollars was 9.2 percent in 2014.
• International Affairs—the $15.10 billion estimate for 2014 decreased 2.0 percent, in current dollars, from 2013.
• Environment/Animals—the $10.50 billion estimate for 2014 was up 7.0 percent in current dollars over 2013 giving.

Giving USA is published by Giving USA Foundation, which was established by The Giving Institute to advance philanthropy through research and education. The report is researched and written by the Indiana University Lilly Family School of Philanthropy. More information about the report is available online at http://www.givingusa.org