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January 2012  
In This Issue
Four Canaries in a Coalmine
Board Committees...Boon or Bane?
Endowment is Forever
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Greetings!

 

  Hello New Year! Have I got plans for you. Of

flourish
Start the new year with a flourish

course, I say that every year. Occasionally to good purpose, but so often my resolutions seem of the type destined to failure. I'll be more organized; exercise more, eat less; learn a new language.

  What's that saying? Hope is not a viable plan. That resembles most of my resolutions. Learning a new language, for example, is a wonderful idea. But on the first of every year, I act as if I just have to will it and presto! I will be fluent in Spanish, French...Swahili.

  Truth is, of course, if I want to learn a new language-be more organized, get a better job, raise more money, do whatever-there are concrete, real steps I have to take. And if I am not willing to do the hard work that is necessary for success, my resolution will be just another failure.

  Mostly, I work with nonprofit organizations. Mainly the work I do with them is focused on increasing their fundraising capacity. That can involve a number of things-from training Boards on their roles and responsibilities to developing and helping them to implement a comprehensive fundraising plan-and all the steps in between and after. And when, as inevitably we all do, they look for the magic bullet, I tell them what it is: Consistency.

  Do something, I tell them. Do anything that moves you toward the direction you want to go. Keep doing it, tweaking what you are doing so that you are constantly doing it-or some part of it-better.

When you are doing it relatively well, add something else to the mix. Note that I wrote "add" not "replace."

  These don't have to be big steps; baby steps are good and will, over time, get you where you want to go.

  Something else I learned not too long ago (I am a slow learner): Missteps, heading in the wrong direction, stopping to move at all for a while, do not have to be fatal. They can simply be a misstep, one to the side or even backward, and standing still can sometimes help you to see what is out there and what barriers or obstructions might be in your way.

  Don't beat yourself up if things aren't going precisely to plan. But don't let a glitch turn into an insurmountable gulch, either. Remember that you can turn around; take another step; and that sometimes it is okay to decide (as long as it is a conscious decision) to head off in an entirely different direction.

  As Yogi Berra famously said (and wasn't everything he said celebrated?) "You give 100 percent in the first half of the game, and if that isn't enough in the second half you give what's left."

 

  This month we are really lucky to have an article by Annika Hylmo and Robert McKim about their recent Nonprofit Leadership Survey. Read "Four Canaries in a Coalmine" to see if your agency is in danger.  

  Boards, of course, are critical to our organization's health.  Mitch Dorger  asks if Board Committees are everything we hope they can be. Effective committees, says Mitch, are great. How to make sure yours are? Read and Learn.

  Finally, one of the findings from the Nonprofit Leadership Survey that came as no surprise at all was the fact that fundraising is the principle concern of nonprofit executives. Many of my clients have come to the realization that not only do they need to have a broad base of fundraising sources and to raise funds in a variety of ways, they also need to look at the type of fundraising they do.         Often, smaller organizations in particular, focus 

on annual giving. That is, they raise money today to be used the day after. Current funding for current funding needs. But as the economy has gone south, and up isn't looking very high, many have realized that they also need to raise funds for sustainability-and that means endowment.

  Unlike annual funds, endowment funds are forever. But just as the results of endowment fundraising last for a very long time, so can the cultivation process leading to getting endowment gifts. For many organizations, it is a sea change in the way they have to think about the fundraising process.

 As always, let me know what you think--and what plans you have for this new year.  

 ***************

 

Fundraising capacity not where you want it to be?

  Need help in making Board members comfortable with fundraising?    

 Contact  Janet Levine Consulting for a

free 30-minute meeting 

 

FOUR CANARIES IN A COALMINE-- 

Who Will Keep Singing?

 

 

 McKim Nonprofit Consulting, a leader in nonprofit sustainability solutions released the report for their first annual Nonprofit Leadership Survey 2011.  

To read the full report, click here

 

Article by Annika Hylmo Ph.D., Partner - Nonprofit research and development.

 

   

   Back in the day, canaries were used in coalmines as an early warning system. The canaries would keep singing until dangerous fumes from the mines killed them, signaling a need for the miners to get out of the mine before meeting the same fate. When we look around us today, we still have proverbial canaries around us, warning us of imminent danger.

  McKim Nonprofit Consulting recently released their Nonprofit Leadership Survey 2011 that revealed that for the nonprofit community, there are four significant proverbial "canary" areas that serve as warnings of danger putting individual agencies at severe risk: Cutbacks; cultivating volunteers; cultivating communities; and challenged CEOs.

 

Communities in Need of Canaries

 

 Over the past several years, nonprofit organizations of all kinds have experienced challenges generally attributed to the economy. Funds are down, needs are up, and caught in the middle are those who serve. Or so it would seem. While many agencies are experiencing downturns, others are finding new niches and ways of contributing.

  Take for example faith-based communities. While one brick-and-mortar church in an affluent community reports that Sunday collections are down by $80,000 over a six-month period and significantly challenging the operations of the parish, a start-up online Internet church raises millions of dollars at the drop of a hat. What is the difference? Thinking different. What is the challenge? Knowing when to think the same. To succeed under pressure, agencies need to be able to do both.

 McKim Nonprofit Consulting undertook the survey to find out more about what it is that nonprofit leaders are struggling with. The survey was released primarily to agencies in the greater Los Angeles area, yielding responses from all sectors and sizes of the nonprofit world to paint a picture that is consistent and compelling. Importantly, it shows that all nonprofits are likely to continue to struggle, unless they start to think differently and look for new opportunities.

  The survey looked at several overlapping areas. First, participants were asked for a general SWOT analysis (strengths, weaknesses, opportunities, and threats) of current situations. Second, they were asked to respond to questions about funding and programming; executive leadership; and board development. All are areas that every agency should know more about for their internal purposes as well as to benchmark against others.

  So what stood out among the results? More than anything, it is clear that most nonprofits are not taking a realistic look at the reality of the challenges that they face and that the people that they serve will be the ones left behind. (READ MORE)

 

 

BOARD COMMITTEES:

 Boon or Bane?

Mitch Dorger is the principal of Dorger Consulting

You can reach him at mitch@dorger.com

 

 

"A camel is a horse built designed by a committee"

- Anonymous

 

   Although there are a lot of derogatory jokes about committees, the truth is they can be extremely  important to the success of your board.
Why? Basically, there are two reasons. First, by transferring "roll up the shirt sleeves" work to committees, the full board can keep its meetings shorter, more focused, and aimed principally at the strategic and policy-related matters it needs to be working on. Second, important issues are often complex. They require research, consideration of alternatives, extensive discussion, and even brainstorming. These activities are not routinely the type of things you want to have your full board engage in. I am a big fan of effective committees and have seen them accomplish truly excellent work on behalf of the full board.

  If they are so good, why not have a whole bunch of committees - maybe one to address every aspect of the organization's operations? That's a really bad idea for several reasons. First, committees create work, which means some board members are going to have increased workload. Remember most of those folks are volunteers who are trying to earn a living while at the time helping your organization meet its goals. Organizational leaders need to be very sensitive to the time demands on their board members.   Second, if not properly chartered and managed, committees can get involved in micro-managing operational affairs. This is not something the board should be involved in. This micro-management can lead to (1) dissatisfaction on the part of operational managers, (2) bad or less than optimal decisions if the committee members are not experts in matters being examined, and (3) undermining the CEO or executive directors by creating confusion as to who is issuing instructions to the staff.

  So what do organizational leaders need to know about the proper use of committees on their boards?

  First, it is important to understand that there are often a variety of committees within an organization. I often wish that there were more terms used to describe the workings of various groups of people in an organization because a lot of confusion is created when very different organizational entities share the same name - "committee".

  The primary focus of this article is board committees which help the full board of directors accomplish its governance responsibilities. Because these committees are doing the work of the board, they are more often than not made up of board members. Some state laws even require that these committees be made up of only directors. Such is the case in my home state which requires board committees (with the exception of the Audit Committee) to be made up only of board members. (READ MORE)

 

ENDOWMENT IS FOREVER

    Endowment is forever. This is true not just for your endowment fund where the principal remains in perpetuity, but also for your efforts to raise endowment funds. The first reason for that is purely practical: What seems like a large endowment today may not be enough to make a difference tomorrow. That could be because of losses sustained in bad stock market years, but more likely it will simply be a factor of time. When I married my first husband in 1972 we thought that if we could make a combined income of $20,000 (yes, that is twenty thousand) a year we would be in (pardon the expression) hog heaven. Today, if you make five times that amount by yourself it is nice, but nothing to get excited about.

  The second reason is a bit more esoteric.

  If you believe, as I passionately do, that fundraising is the act of providing opportunities for people to become involved with the wonderful things your organization does, then what I am about to say will make perfect sense to you. If, however, you are of the "fundraising is hitting upon people" mindset, then it won't resonate at all.

  Here we go: Endowment, while providing stability for your organization for generations to come, also affords donors an ability to create a lasting legacy that will allow their dreams to live on long after they are gone.

  Once you see things that way, you begin to look at fundraising in a completely different light. The idea of process begins to make sense, and you see that a fundraising plan must be more than a list of names who can give to you now, or a series of activities that are not connected to each other or to a larger picture.

  Fundraising is often shown as a circle, where each piece fits into the next
Fundraising circle

 

  Like the circle, fundraising is never-ending-you are constantly moving existing donors through the cycle, and bringing new prospects into the fold.   Your plan must take into account each and every step. More, for each step there must be a multitude of ways to embrace a variety of prospects/donors. If I have an immediate connection to your organization, is easier to get my attention. If I don't-what are the things that matter to me, and how do you entice me to become involved? Who must be part of that enticement? What steps will have to be taken to get me to the point where I consider myself a donor and a part of your organization's future?

  It's not enough to decide that so-and-so could make a 6 or 7 figure gift. You must know where they are in the cycle-and how to move them to the next step (and do notice, that once they are being stewarded, the next steps starts the cycle all over again). More, you have to figure out how to bring new people forward and get them into the cycle. Each step must beget the next step. And that means that there are lots of plates to keep spinning. (READ MORE)

Have Your Say
notebook Inquiring minds do want to know--what is on your mind?

 Send me your article (200-2,000 words) on any
topic of interest to those who work for or with nonprofit organizations. 
 
Are your fundraising results down? Board members bored?  Or are thinking about a campaign? Whatever your capacity building needs, Janet Levine Consulting can help. Email or give me a call at 310-990-9151 to schedule a free 30-minute consultation. 

Want more? Read the weekly blog, Too Busy To Fundraise to make sure you are not!

Sincerely,
Janet Levine