Tag Archives: donor development

Owning Your Place in the Community

[The following is an excerpt from a keynote I gave to the Southern Minnesota Nonprofit Summit.]

Fifteen years ago this week was when I arrived in Minnesota to become the Executive Director of The Playwrights’ Center. My wife and I were newly married. We drove 900 miles from Dallas to Minnesota with most our belongings in tow. I was very excited about taking this position. At 27, I would have a staff of 12, a budget of just under a million dollars, financial reserves in the bank, and a strong national reputation to build on. What I didn’t know, it was all a house of cards.

I remember feeling something was up during the interview process and after I took the job it became quickly apparent that the organization was not great shape. The first sign was how out of step the staff and board were with one another, and the second sign, was how disconnected the board was with the organization as a whole. Most troubling, was how the organization’s main participants, playwrights, universally felt the organization was past its prime.

After a week on the job, I was on an airplane going to a national conference and I had brought my calculator along. I was working through next year’s budget on some scratch paper. It might of have been some turbulence or a change in altitude, but I remember my eyes rolling up inside my head and falling against the window, thinking to myself: “What the hell have I done? Why did I take this job?” I was staring out the window at the clouds, but what I was really staring at was an organization that only had half the income needed to balance next years budget with all of its reserves spent on paying off the current year’s expenses.

Cutting half of your expenses is not trimming the fat, it’s not even just cutting into the bone, it’s all out amputation. Not to sound too graphic, but what followed was a blood bath. We cut programs, staff, anything and everything. After we were done (besides the fact that no one on staff would talk to me) we bought ourselves a little time, but we did not solve the intrinsic issue—we had become irrelevant.

Soon after I was having lunch with a board member, who had been on the board for about four years, and she asked me: “What is that we do?” After staring blankly at her, I launched into my spiel and quickly realized she wasn’t listening. She stopped me and said: “Why should I care?”

As you can imagine, this was a very dark moment for me, but also a very illuminating one.

A client of mine, whose organization was in a similar situation, once said to me: “We are not who we are.” This struck me because if you do not know who you are, then no one else knows who you are. Your organization lives on the edge of relevancy. It does not own a place in the community. It’s peripheral.

Overtime, I have come to learn that answering the question “who are we?” is not solved by just developing a well-worded mission statement. Knowing your purpose is important, but it is only an inward view. Leading healthy and impactful organizations requires both an inward and outward view of your work. Knowing “who are we?” is also about the value you choose to create, and more importantly, who you create this value for. The value you choose to create is ultimately what determines who you are in relationship with and allows you to shine a light on your place in the community.

Please take out a sheet of paper.

1. In the middle of the sheet of paper create a box large enough to write inside of it. Like this.

2. Now, in the middle of the box, write down the specific meaningful value your organization creates and delivers to the communities you serve. This is different than your mission. This is actually what gets delivered—as tangible as food for the hungry or intangible as food for the soul. Be specific as possible.

3. Now, at the top of the box describe the people who directly receive the value you have created and delivered. These are your participants or clients or audiences.

4. Identify the people who are investing in the value you create, again be as specific as possible. These could be foundations, individual donors, and government agencies.

5. The next step is a little more difficult. Identify the people who benefit from the value you create but not directly. This could be a neighbor living on a street where gang violence has declined due to your youth program.

6. Now, identify the people who create this value. This is you, your board and staff, and volunteers as well as partners you work with.

7. Finally, look at your work and answer the following questions:

    How relevant is the value you create to the people around the box?

    If you change the value you create, how would the people around this box change? Who would join and who would go away?

    Is there audience or constituency you always wanted a relationship with, what kind of change in value would you need to make in order to be relevant enough to attract them?

    How can we accelerate pursuit of our mission by creating value that brings the people we need to succeed together?

Keeping an eye on the value you create, needs to be a strategic governance and operational priority. Not only to sustain your organizations, but to also take your work to new heights. This is not something you check in on every three years, it’s something you do in real time. You also must do it in ways that reaches out beyond your own notions and embraces multiple points of view.

Turkish author, Elif Shafak summed this up nicely in a TED Talk that she did a few years ago, she said: “We all live in a social and cultural circle… If we have no connection what so ever with the world’s beyond the ones we take for granted then we run the risk of drying up inside. Our imagination might shrink, our hearts may dwindle, and our humanness might wither if we stay for too long in our cultural cocoons.”

Inherent to the value we create for the communities we serve is keeping the impulse and inspiration to create alive. We do this by reaching both into and beyond the world “we take for granted” and engaging communities in a creative process.

This is how we saved the Playwrights’ Center from extinction. It didn’t happen overnight, it actually became an ongoing process, one that started with lots of listening that led to many ideas, that led to defining a strategy, that led to taking action, that led to a change in the value we created. In fact, over a six year period, we moved from being a “club house for playwrights” that was no longer relevant into a conduit for playwrights and other artists, playwrights and audiences, playwrights and theatres, playwrights and businesses, etc. to forge deep connections.

Through this rich collaboration with artists, funders, businesses, educators, neighborhood residents, etc.—we came alive. They helped us rediscover the meaning in our work and find our place in the community. And as soon as we did, we started again.

Here are a few principles I would like you to take a way from this talk:

1. Know the value you create. Work with board and staff members to define it.

2. Create an open invitation to explore. Reach beyond your inner circles and welcome others into the process.

3. Instigate and lead the inquiry. We are experts and we should take on the responsibility to ignite these conversations out in the communities we serve.

4. Be passionate not opinionated. Do not create a competition among ideas, welcome differing point of views as well as not lose sight in what you believe.

5. Own the Direction. Once you choose a course of action, take ownership of it and nurture it.

That board member who I had lunch with, got caught up in this rich creative collaboration we forged. She ended up leading our capital campaign to build a place where we could deliver all this value. She raised a lot of money for a cause that she truly believe in.

Nonprofit Participation-Building Strategy: todaysdeeds.org

Recently, Catholic Charities of the Diocese of Saint Cloud launched todaysdeeds.org. This website encourages people to share stories about the good deeds they have witnessed in their community. These stories are then emailed out to friends and family who in turn are encouraged to participate. Creation In Common developed this strategy as part of a comprehensive branding effort for the organization. Please take a visit, share a story, and pass it on to your friends. www.todaysdeeds.org

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Three Strategies to Engage Your Board in Fundraising

[This posting appeared as an article in the Fall 2009 edition of Guild Notes, the quarterly newsletter published by The National Guild of Community Schools of the Arts]

“We’re not a fundraising board.” If I had a nickel every time board members have said this to me, I would be able to fund their organizations.

The perceived difference between an Opera Board of well-heeled community leaders and a Community Arts Board made up of the rest of the unwashed masses has driven the myth behind what effective fundraising looks like within an arts institution. This frame of thinking drives the notion that the Opera Board has the money, clout, and know-how to fundraise whereas the Community Arts Board is not wealthy, does not know anyone who is, and feels it lacks the basic skills to make an ask. In reality, the pedigree of your board member has less to do with your fundraising effectiveness than the intrinsic way they are motivated and the systems and process that are used to harness their passion for the cause. I have observed in organizations big and small that it is rare to find the board member who is automatically ready to fundraise which makes it leadership’s job (i.e. the board president, development committee, executive director, etc.) to cultivate board members’ engagement in the fundraising effort.

Here are three strategies to do this:

I. Help Board Members Understand What Connects Them to the Cause
In order to broaden your donor base, you must first deepen your relationship with each board member. It is important to think of the board member as your most important major donor, no matter how much money he or she gives. If your board member is not ready to share his or her time, money, and influence they will not be able to convince others to do the same.

When cultivating a major donor it is important to understand what motivates him or her in relationship to your cause. The same needs to happen with the board member. It is often assumed that when they agree to join the board they are already connected to the cause, but often they are not and most of the time they have very little understanding of the unique value being created by the organization. Hearing stories about the organization’s work and witnessing value being delivered to the community are important ways to help educate board members. It is also important to have conversations with them to learn how they perceive the needs that the organization is meeting, the values that guide the work, and why it is important for the organization to exist. By understanding their point of view on these matters, leadership is able to find the right incentives that will help engage each individual. In addition, it helps the board member and leadership develop a consistent narrative about the organization that can be communicated to potential donors.

II. Help Cast Them in the Right Fundraising Role
When board members talk about fundraising, they often focus on asking for money. In some people this creates an immediate paralysis, yet it is only one part of the process. Through my work with a variety of organization’s boards, my colleagues and I have identified four different roles board members can play in the fundraising process based on their natural strengths and capabilities.

Board members who are Connectors know how to work a room and listen for opportunities. They feel most comfortable being greeters at events, helping to develop a prospect list, or hosting a small gathering in their home. Storytellers love using words to paint pictures for others about the impact of the organization. They excel at standing up and speaking at board meetings and events about the life of the organization or helping write a solicitation letter. The Visionaries are strategic thinkers who know how to position what the organization needs to accomplish with the value it will create. They do well in situations helping the donor understand why their investment is needed and what it will accomplish. Finally, Closers are not deterred from their goal. They are very good at understanding the circumstances of a meeting with a potential donor always looking for the best way to position the ask.

When board members are able to see how their strengths can be engaged in the fundraising effort, they are more willing to engage in the process. It is important to note that it is leadership’s job to identify the variety of roles a board member can play, but the board member must be given the opportunity to choose the role and not be forced into it—here success in a role is critical to ensuring they will continue to be a part of the process.

III. Build a Fundraising System that Helps Them Improve
Finally, it takes a systematic approach to fundraising to help Board members improve. When given opportunities to repeat the same fundraising activity in a consistent way as well as debrief openly with other board members, they are able to go deeper into their role and recognize how what they do contributes to the whole effort. Scatter-shot approaches to fundraising lead to disengaged board members because these kinds of efforts only promote a succeed or fail mentality. Systems help leadership and board members evaluate progress and make adjustments as they come to understand what works well and what needs improvement.

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All board members need help understanding how they connect to the organization’s cause. By showing them how their personal strengths can match up with different roles in the fundraising process, they can improve their efforts by playing their role in a larger donor cultivation system. Now, when a board member says “We’re not a fundraising board,” you know it is time to bust the myth.

Article by: Carlo Cuesta, Creation In Common Managing Partner. www.creationincommon.com

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Board President to Executive Director: “We’re not a fundraising board.” (Part III)

This post is part three of a three-part series on board/staff collaboration. Go here to read part one and here to read part two.

“What we got here is a failure to communicate” said the Board President slightly chuckling at his own joke.

“Actually, what we have is a failure to listen” the Executive Director answered back.

Time for polite conversation was over. The Executive Director believed that the window for proactive solutions was beginning to close and the door to crisis management was about to open. This organization was heading for trouble. For the past half hour their conversation had gone round and round about how best to engage the Board in fundraising, and more specifically helping to cultivate new donors.

The Board President took a deep breath and began again: “We’re not a fundraising board. That’s the reality…”

“Nor is this Board engaged around our cause.”

“Yes,” only slightly agreeing “but most care deeply about the people we serve.”

“Deeply enough to help us avert a crisis?”

“I don’t know. What do you think we should do?”

“I don’t know.”

The conversation came to a halt. They each looked away from one another. Then the Executive Director decide to try a different approach:

“When you look at our organization, what engages you the most?” he asked.

The Board President was not sure. “There are so many different programs and services we offer. They all do good work…”

“But is there an experience that you had over the course of your tenure on the Board, that makes you think ‘ah, yes that’s why I’m doing this!’”

“That happened early on before I was even on the Board” he began. “I was on a tour of one of the centers and I met a young man who told me a little about his life before he came here. He was doing drugs, dropped out of high school, and started hanging out with a gang. It seemed that the whole world gave up on him and he gave up on himself. He somehow found his way to one of our centers, got a job, was encouraged to stay away from the gang, finished high school and went onto college. What struck me the most is that he could of very easily had been a headline in the newspaper, something I would have overlooked. But there he was standing before me—proof that no life should ever be thrown away.”

“‘No life should ever be thrown away’” repeated the executive director. “That’s a great story. That’s why I’m here too.”

Being completely upfront and honest, the Board President said: “My time on the Board hasn’t lived up to that moment; not that I need to have those kinds of experiences everyday but I really hadn’t thought about that encounter in a long time.”

“We need to change that” replied the Executive Director.

And the conversation begins.

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How Many Nonprofit Executives Does It Take To Screw In A Light Bulb?

Warhols Light Bulbs by Zetson

Warhol's Light Bulbs by Zetson

Yesterday, I asked friends on Twitter and Facebook (many who are or were nonprofit executives) to send me punch lines. It was a whole lot of fun to read them. Thanks to everyone who contributed. If you have a punch line to share, please comment (ignore “No Comments”– I am trying to change that with our blog provider.) Thanks, Carlo

How many nonprofit executives does it take to screw in a light bulb?

- One to form a committee, one to form a workgroup, and a third to write a fundraising plan for the lightbulb.

- Lightbulb? I downsized my lamp during the last budget cycle.

- We won’t be able to change the light bulb until our five year strategic plan is done. But we can’t seem to get the plan done because we do everything by consensus, in committee, and we can’t agree. So I’m afraid we will just have to sit here in the dark, talking. Forever.

- The CORRECT form has to be filled out by the person who notices that the light bulb needs to be screwed in = 1. Then that form has to go thru a commitee of 3 and be approved and posted online = 4. Online, it goes to another committe of 3 for scheduling = 7. Once scheduled, it is assigned to the lightbulb screwing in crew = 10. If the CORRECT form was not filled out OR there is not money in the budget for this request, then the person who noticed the lightbulb needed screwing in is an idiot and has wasted everyone’s time. What’s your problem? Its only a LIGHTBULB! Then the request is re-routed to overall SAFETY budget, where it must be sent through 4 levels of administration and presented at the next board meeting = 15 + 10 = 25 ummm…25.

- The staff emanates so much bright light from fast, brilliant work that we hadn’t noticed the burned out bulb.

- One, but only if the grant comes through.

- One, to delegate it to the Operations Manager.

- (Part I) First, the administrative assistant will be asked to research light bulbs for wattage, cost, and illumination. The admistrative assistant will provide the executive director with a list of three different light bulbs to be considered. The executive director forms a task force to consider the recommendation of light bulbs. After a few weeks of contemplation the task force will render its decision and direct the organization as to which light bulb to purchase. The action is tabled the next day when a prominent donor and board member calls, offended that he was not asked to participate in the task force as he has several years of light bulb experience. Another task force is formed to soothe the ruffled feathers with the upset board member as chair. After two weeks, the new task force reaches the same decision as the old one. The development office is then asked to raise the funds necessary to purchase the new light bulb….

- If we form a collaborative, map our assets, identify objectives and funding sources, it should take about…wait a minute, what were we trying to do again?

- (Part II) ….Another committee is created with board members who like to plan parties. The first order of business is set a date and a theme for the light bulb fundraiser. After deciding the fundraiser should be an authentic Hawaiian luau the committee goes about planning the menu including a tofu pig for those who don’t eat meat. The committee designs the invitations, creates guest lists, decides on the venue and picks out the decorations. The organization’s staff does all the work however printing the invitations, creating the mailing labels and putting up all the decorations. At least one board member tells them everything they did was wrong. After the fundraiser, the total money raised is announced and everybody feels great. They came together to solve a problem and all hurt feelings and animosity is forgotten. With both money in hand and a mandate from the organization the administrative assistant orders the light bulb from Office Depot….

- Five, but we’ll spur economic development, engage citizens, provide job training, and beautify the neighborhood at the same time.

- (Part III)…After it arrives the administrative assistant climbs the ladder to replace the bulb only to find it is no longer needed. An intern who was hired a week earlier brought a bulb from home and replaced it herself.

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Fundraising Roles — Cast Board and Staff in the Right Parts!

Fundraising RolesYou can’t get anyone to do anything, if they don’t want to. Especially when it comes to fundraising. But you can help people play to their strengths.

Fundraising isn’t a solitary act, its a process that requires a group of individuals to play multiple roles and work together toward the same goal. The above chart identifies these roles. The secret is to spend time figuring out the right casting. This requires us to observe our board and staff in action, to talk to them about what they enjoy doing, to observe how they listen to others and well they communicate. Most importantly, we want to engage our board and staff in a way that they feel most comfortable, allowing them to naturally connect to the role.

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Three Steps for Successful Individual Donor Cultivation

Lead Educate Close

We often hear how hard it is to ask for money, but rarely does anyone tell us how hard it is to generate donor prospect leads or to educate those prospects. In fact, if you are successful at generating leads and educating them– closing becomes the easiest part. We have been using the above model as a simple way of explaining successful individual donor cultivation. Here is how it works:

Lead Generate — Your fundraising strategy needs to include ways to introduce your cause to different target audiences. Here, volume counts. You want to find opportunities that allow you to give a brief overview of your cause as well as give your audience the opportunity to opt-in and learn more about your organization’s work. Most importantly, these are opportunities to make a connection and that is done by meeting your audience where their in terms of their values and beliefs  as opposed to trying to push lots of information at them. The goal here is to make a connection, listen, and give them an opportunity to continue the relationship by opting in for an experience to educate them about the organization.

EducateOnce your prospect has opted-in you can begin to educate them about your organization. We have a few rules here. Again, don’t overwhelm. Use a story to illustrates the specific value your organization creates, rather than giving them a laundry list of programs and services. Also, make the case. Do this by telling your audience what you intend to accomplish in the future in terms of the community impact you wish to have. The goal here is to educate them, but also to learn about how your audience relates to your cause.

Close – By this point, you should know enough about your donor prospect(s), that you are ready to position the ask in terms of their interests and the impact that your organization expects to achieve. Here you are making the connection between the two. No matter what the reaction is (yes, no, maybe), it’s important to make sure that you have a follow-up plan. This allows the relationship to continue, and as long as the donor prospect or donor is willing to continue the relationship, you should always be creating opportunities to educate them.

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