Archive for the 'Fundraising' Category

Beginner’s Mind for Fundraisers

Cicada Wing

An organization Dimitri and I love is about to die.

Everyone says it is a casualty of the economy. We know that is not true.

Even when times were good, the ABC Group was struggling. And so five years ago, when we were teaching an earlier version of our “Building Engaged Support for Your Mission” workshop – the one we did in Phoenix just last week – the ABC Group sent three people – a board member, the ED, and their Development Director – to see if perhaps this was an approach that could sustain them.

The premise of that workshop hasn’t changed in all the years since the ABC Group attended.

Money is not the most effective aspect of building strength. The most effective aspects are those that simultaneously build community strength while building organizational strength.

At the workshop five years ago, the ABC Group’s ED and board member were both enthusiastic about seeing the entire spectrum of “building support” through a different lens. However both were deferring to the development director – a woman with years of experience and a great fundraising reputation.

And sadly the development director found the whole day useless.

Not that she said that. But she sat apart throughout the whole day, sporting a bored “I don’t need this – I already know my job” look. At one point she shared with us that this was all well and good, but that their organization was different.

Several times in the years between that workshop and today, the ED called us in desperation. Each time we offered to assist for free, to help the group move away from traditional fundraising, and to implement what we had taught at the workshop. Each time those offers languished as the group chose to keep doing what they already knew.

Last month I received a mass email from the group. It said they needed $50,000 to keep their doors open just for that month. Their funding was gone. Most of their staff was gone.

This is one of our favorite organizations in the world, with a unique mission we love. And it is about to die.

******

Last year, we were doing a workshop on governance, when a woman from the XYZ Organization approached us. “I never properly thanked you,” she said.

“I was at a workshop you did in Phoenix 5 years ago. We had just opened our doors, and I knew I had a lot to learn.

I came home and followed every single thing you suggested. Today our budget is $2 million and we are growing strong, even in this economy.”

Yes, you guessed it; the woman from XYZ was at the same workshop the ABC Group attended and ignored.

******

Last week, I taught that same workshop in Phoenix. While we have certainly added rich layers to the workshop over the years, our core philosophical premise has not changed.

This time, though, I had the image of those two groups in my mind. And so I asked the group the following question:

What will it take for you to do something different
than the way you’ve always done it?

And will you?

Zen Master Shunryu Suzuki is often quoted as saying, “In the beginner’s mind there are many possibilities, in the expert’s mind there are few.”

The minute we think, “I already know that,” learning and possibility stop.

So how can we find the kind of Beginner’s Mind that led the XYZ Organization to its long-term success? One of the easiest routes to Beginner’s Mind is to leave behind your search for answers, and to begin asking new questions.

For years, organizations have been asking the same question:

“How can we raise the money we need?”

Asking that same question over and over, it is no surprise the answer changes only to the extent that it patches a new trick or tool onto the same old assumptions.

So then what might different questions look like, as we seek Beginner’s Mind in our quest for building engaged support for the work we are doing? Let’s start with these (and then let’s add to this list!):

• What brings strength to any endeavor? Which endeavors endure for dozens and hundreds of years vs. those that fall by the wayside? What is it those successful endeavors have in common?

• How can we ensure our programs will build a strong community?

• Do we see community members as individuals who can gather together to create their own support systems, or do we see them as clients we must help, who cannot otherwise help themselves (and certainly cannot help “us”)?

• What would it look like if our programs were built by and sustained by the community that will benefit from those programs?

• What if there were no such thing as programs? Is there a different way to get the end results we want to see in our communities?

Yes, these are the kinds of questions that shake up everything. That is what Beginner’s Mind is all about! By starting back at the beginning-before-the-beginning, we may just catch a glimpse of a more effective path.

So what questions can YOU think of? What questions shake up your thinking? What questions seek to find what builds strength, period?

As you will see in the video, if we seek what builds strength in one place, we may be surprised the extent to which the very same things build strength into everything we do.

So please, share your questions. Let’s open our minds and create possibility for building support for our work in all new ways. Let’s find our Beginner’s Mind.

To learn more about different ways to think about “traditional fundraising” vs. building engaged strength, this article provides a good comparison.

To those viewing this post in an email reader, the video that follows can be found at this link. Or just click through to the blog and watch it there!

Finding Great Clients (or Donors. Or…)

One of the 2010 goals for the Community-Driven Institute is to aim the dialogue in this sector more towards what is possible than what is wrong.  As part of that effort, we facilitate a monthly Twitter chat for consultants to Community Benefit Organizations.  Every month, consultants from all over the world share their wisdom and ideas and experience – and questions – to grow together as we do this world-changing work.

Yesterday’s chat was about finding great clients. At the end of the chat, as folks shared their Key Learnings, I was struck by how applicable those observations would be to any relationship – not just finding great consulting clients.

Here is what folks shared there:

  • Great clients start with our own mindset and approach.
  • Clients as partners.
  • Relationships with clients are relationships. Date the ones with potential!
  • If we are authentic in sharing who we are and what we have to offer, great clients will find us
  • You can “attract” great clients, but you also still have to go where they are. We will still meet and talk about vision/values.

The discussion considered the fact that “great” clients are really only great because there is a fit between our own strengths, our own passion, our own values and goals as consultants.

So what might happen if we substituted the word “donor” for client in all those observations above?  Does the same hold true?

  • Great donors start with the organization’s own mindset and approach (Yes!)
  • Donors as partners (Yes!)
  • Relationships with donors are relationships. Date the ones with potential (Oh yes!)
  • If we are authentic in sharing who we are and what we have to offer, great donors will find us (Yes again)
  • You can “attract” great donors, but you also still have to go where they are. We will still meet and talk about vision/values. (Yup.)

Try it with the word employees. Or board members.

I cannot help but smile that when it comes to relationships that matter, the truth is the truth is the truth.  Has this been your experience with donors / clients / employees as well?

What Everyone Should Know About Membership Campaigns

Members Only Cardboard signOh no, here it comes. When times are tough for Community Benefit Organizations, a single article like this one (originally from the Wall Street Journal, then quoted at the Chronicle of Philanthropy) can be enough to send boards and EDs scurrying to get ahead of the latest new fundraising fad.

Membership is by no means a new fad. It is one that is used by many high profile organizations – museums, Nonprofit Resource Centers, public broadcast stations. And it can indeed provide a fairly reliable stream of money.

However, before the study quoted in the WSJ gets your board all fired up to institute a membership program, there are words of caution you may want to heed.

Caution#1:
Membership dues are paid annually.

Result: While non-member donors are accustomed to giving throughout the year, members are used to being asked / giving once a year – period.

Caution #2:
Memberships tend to be inexpensive.

Result: Not only do funds from members only come in once a year, their giving levels barely graze the bottom wrung of a typical annual appeal.

Caution#3:
Almost by definition, membership is transactional.

Members provide financial support in exchange for a tangible set of benefits – free admission, a monthly arts calendar, discounts on classes, a Pavarotti DVD set.

Result: While members certainly feel supportive of the cause, members can also be heard saying, “I’m considering not renewing my membership this year. I rarely use it…” Their thoughts about their membership are not first and foremost as a donor who is supporting a cause, but as the user of a product or service. The transactional nature of the relationship is further reinforced by ongoing payment-due renewal notices, that are worded to focus on what members will no longer receive if they allow that membership to lapse.

Caution #4:
“Transactions” require more work for the organization than straight donations.

Result: In addition to standard fundraising costs, membership entails expenses for all the “stuff” the member receives.

Caution #5:
Net proceeds are all that count.

Result: Once you factor in the cost beyond the actual member perks – the staff time to secure and manage those items, as well as the ongoing “renewal” notices – might more money be raised if the staff were doing something other than ordering mugs or creating “member events?”

As we summarize the revenue side of the membership equation, we see the following:

Membership is once-a-year, low-dollar revenue from purchasers who, while supportive of the cause, expect to receive “stuff” in exchange for their donation. Membership is transactional rather than engaging, and those transactions require more staff time than other donation programs.

In addition to these financial cautions, there is one additional caution that relates not to revenues, but to the very mission of the organization.

Caution #6:
Membership is defined by exclusivity. Either one is a member or not.

Result: Effecting community change requires a culture of INclusivity. It requires as many hands on deck as possible. It requires that an organization provide service to anyone who needs it, regardless of (and often specifically in contrast to) their ability to pay for that service.

How does it impact a museum’s mission to “provide education and foster appreciation in the community” if they provide discounts only to those who can afford membership? Does the mission de facto become “to provide education and foster appreciation only among those who can afford it?”

The same question holds true for a Nonprofit Resource Center whose for-pay workshops are open to anyone, while free workshops are offered only as a perk for its members. Does that Nonprofit Resource Center’s mission de facto become “to serve our members,” rather than “to serve the community?”

The Answer
When we ask, “What are the pros and cons of a membership campaign?” we are considering one approach in a vacuum. And while the pros of that one approach may outweigh the cons, that still doesn’t make it the best choice among a whole realm of options.

So what’s the answer? The answer requires that we consider the range of options for raising money to support your cause, and choose your fundraising strategy by weighing each of those tactics not only against objective criteria, but against each other.

• How much might each approach raise?
• How much work will it take?
• Will those donors become real friends?
• Etc.

Add up and compare your answers and see which comes out on top.

Is it membership? I didn’t think so.

Are you making your decisions in a vacuum? This easy-to-use tool will help you make more effective decisions!