BROWNE INNOVATION GROUP

Monday, January 31, 2011

BIG's Blog: Catholic Fundraising Boards

When was the last time you reviewed the success of your board members? Do your board members have a clear understanding of what their roles and responsibilities are to the organization? Do current board members assist or hinder the progress of your mission?

These are just a few of the tough questions leadership must address as they face today’s funding challenges. How many of your board members have written guidelines of their roles and responsibilities to the organization? Are your board members held accountable for their responsibilities? If not, why are they less accountable than staff? Their role is critical to opening doors to funding opportunities for the organization. Most staff and some leadership do not have these prospects in their personal contacts.

If your organization has guidelines, when was the last time you reviewed them with the entire board, not just new members? Leadership should review annually (at a minimum) their expectations of the board and that year’s goals. Ideally, the board should review their goals quarterly to determine if they are on track. If it appears that the goals are not being met, then a discussion should take place as to answer the question, "Why?"

An annual review of the responsibilities also gives a board member the opportunity to decide whether they can meet the expectations of the organization. This is helpful to members who do not know how to step down from a commitment or don’t want to let the organization down.

If your organization does not have written board roles and responsibilities, this should become a priority. Your board may not be clear on what is expected of them. The people they approach on your behalf may also be unclear of their role to the organization. Help them help you!

Board members are individuals who love your mission. They want to share their talents and resources to ensure continued growth of your organization. Don’t let them down by not giving them clear direction and your support.

-Gail

Sunday, January 30, 2011

BIG’s Blog: Relationship Building - Fund Raising Faith-based Organizations Can Love – Part One

Let’s face it; who really likes asking for money? Of course, there are those few gregarious souls that have no problem with it, but, most people would rather go under a dentist drill than have to ask for money.

That is probably why direct mail was so appealing for so many faith-based and religious organizations. Instead of calling someone or meeting face-to-face, we could just send a letter. Of course, at the heart of asking for money is the issue of rejection, or worse, making someone feel uncomfortable, especially if they have to say “no.” Direct mail took most of those uncomfortable issues away. “Hey, if they don’t want to give, they can throw the letter away.” But, simple direct mail methodology does have its own problems, first and foremost is how manipulating it can be. Notice, I said “can be,” not “always is.”

Simple direct mail fund raising methodology is all about getting dollars. The process starts by purchasing an outside list of donors to another organization and mailing to them. This is called an Acquisition mailing. At its most simplistic, success is determined by the number of people who respond by sending money.

At this point, we call the people who responded “first time donors,” and we quickly send them other appeals with the hope of the parties donating a second time. Over the course of the first year, we send follow up appeals, and between 25 and 33% of first time donors send a second gift. The other roughly 70% that don’t send a second gift are relegated to what is called the lapsed file and you may never hear from them again.

For those that do give a second donation following their original acquisition donation, most organizations continue to mail to them between six and twelve times the following year. But here is a really important point: somewhere along the line, many of those donors begin to develop a relationship with your organization and become more interested in your mission.

Even though some very loyal donors may develop from this long distance relationship with your organization, is it just me, or does this process seem “clunky or ham fisted” as a way to develop a human relationship? No wonder many religious feel squeamish about the process and worry that they only see their donors as ATMs.

Shouldn’t the point of our fund raising be to first develop relationships with the people that ultimately wish to support us? That is an interesting question, but a more interesting question is, “Why do we feel this way?”

I think something has changed in us that we are not even fully cognizant of and that is what is at play here. My guess is that we find ourselves looking at the way we have done things (our historical direct mail methodology) through modern sensibilities that have been shaped by living in a world that has very much changed, even as our fund raising methodologies have not.

An Alternative:

What if faith-based and religious organizations could first cultivate a human relationship and then the gift – should one be given – would come down the road as a by-product of the relationship? Suddenly there is no perceived manipulation, no viewing the people that make contact with your organization as ATMs, but rather a relationship of genuine connectedness.

Which approach do you like better?

Which approach do you think a potential constituent would like better?

The Alternative approach is available today.

In my next blog, Part Two of this series, I will contrast the approaches.

-Mike

Welcome to BIG’s Blog and yes, by all means forward our blog to your friends and co-workers.

Thursday, January 27, 2011

BIG's Blog: Silos belong on the farm, not in your organization!

How would you rate your organization's ability to work together? Are departments within your organization collaborating on strategy, marketing and technology? If the answer is "No," your organization may be falling behind.

In the blog, “Stop Operating with a Guild Mindset,” the authors present challenges that an organization is confronted with when departments work in silos.

What “golden nuggets” can nonprofits learn from for profit challenges? You may be surprised how silos can affect your organization.

-Gail

"Culture does not change because we desire to change it. Culture changes when the organization is transformed;
the culture reflects the realities of people working together every day."
— Frances Hesselbein: The Key to Cultural Transformation, Leader to Leader (Spring 1999)

Wednesday, January 26, 2011

BIG’s Blog: A New Kind of Strategy Development

There are certain moments in the life of an organization when reviewing the current strategic plan is called for. For example, the board hires a new CEO or a new chairman of the board is elected. However, Professor Michael Porter from the Harvard Business School says that boards should review their strategic plans annually, especially during economic downturns or major shifts in their sectors.

Although most nonprofit boards do review their strategic plans annually, most do not ask or require their fund raising operation to conduct their own separate strategic planning process preferring rather to incorporate fund raising into the organization's overall strategic plan.

While this mode of operation might make sense during times where there is little change in the fund raising environment, today’s environment is anything but status quo.

The Rise of the Expert Facilitator

In the past few years, the consulting world has awoken to many of the same competitive pressures facing organizations, whether they are for-profit or nonprofit. One of those is the Expert Facilitator.

In the past, outside strategic planning facilitators were hired for their expertise in the process of strategic planning. The facilitator was skilled in both the strategic planning process and in drafting the written plan document the process produced. Although this has been the process most organizations have chosen over the last 20 years, it is losing favor as its Achilles heel is that it depends on its ideas and perspectives being generated internally by staff, management, board members and other existing stake holders.

A different approach is quickly gaining traction with management and board leadership. This is the Expert Facilitator. Like the facilitator described above, the Expert Facilitator is also skilled in the strategic planning process, but, unlike the previous mentioned facilitator, the Expert Facilitator brings outside perspective, information and subject matter expertise to the strategic planning process. In times of fast moving change like today’s fund raising environment, it is critical to add outside perspectives and expertise to the very important strategic planning process.

-Mike

Welcome to BIG’s Blog and yes, by all means forward our blog to your friends and co-workers.

Tuesday, January 25, 2011

BIG'a Blog: How to get support for change

Building a donor centric organization takes planning. To get support to change the way “things have always been done” is invaluable.

Building a case to change or enhance the current fundraising operation and marketing strategies can be challenging. To assist leadership and staff in understanding the need for change takes patience and time. But, building a case for change is necessary for the short and long-term success of the organization.

As the demographics of the constituents change, the organization must adapt its current communication and fundraising strategies to meet the constituent donors' expectations. This will require a nonprofit to review its current business/fundraising strategies.

Building a business case will help support the need for change. But, what happens if your organization has never developed a business case?

The scope of a case may include objectives that affect more than one department in an organization. This will take a collaborative effort to establish the business objectives and the action needed for a change to take place.

The management team may be open to developing a case for change, but not all personnel may be on board. If the nonprofit’s culture is not used to collaborative efforts, or it is threatened by change, it will hinder the success of the fundraising and operational activities. In this situation, outside assistance may be required to build the case and assist in the implementation of a new business plan.

Financial consequences occur when a fundraising organization is not willing to change in response to its constituent/donors' needs. At some point, leadership will need answers to these two questions:

1. “Why does the organization need to change to meet the needs of the constituents?”

2. “How will the organization change to meet these needs?”

If a case can be built that is tangible and show that proposed changes will contribute to the financial success of the organization, then leadership and staff will better understand the reason that change is necessary.

-Gail

Monday, January 24, 2011

BIG’s Blog: A Lesson from the U. S. Treasury

It turns out that even the U. S. Treasury can teach marketers a thing or two about connecting with today’s U. S. population.

According to a recent report, there are 9 million U. S. households that do not have a banking relationship. This means it is expensive for these households, mostly low income, to deal with refund checks on their taxes. To help, the U. S. Treasury is offering the option of issuing their refund through a debit card.

But, here is the surprise and lesson for marketers: the U. S. Treasury is not solely depending on a letter sent through the U. S. Postal Service to let all tax payers know about the debit card option. Rather, they are using multiple marketing channels in attempting to contact tax payers including email, phone and mail.

The U. S. Treasury tested the debit card option and found out that mailed letters alone didn’t get through to all of the tax payers. Their answer was to go multi-channel . . . and they are giving back money!

The lesson for nonprofit fund raisers: start getting your message out through multiple channels to increase the connection with potential donors.

-Mike

Welcome to BIG’s Blog and yes, by all means forward our blog to your friends and co-workers.

Sunday, January 23, 2011

BIG's Blog: Technology tidbit

Do you really know what aging technology is costing your organization?

In the Harvard Business Review blog, “How I Learned the Hard Way That Aging Technology Is Expensive” the writer relates a personal experience on purchasing technology for his family to a common business problem. The lack of planning and investing in technology does affect an organization. Have you asked the question, “How your organization’s technology is holding you back?”

-Gail

Thursday, January 20, 2011

BIG’s Blog: Boomers are the Tween Generation

As far as nonprofit fund raisers are concerned, there are five major generational cohorts in the United States today:

• Depression Cohort - Born 1912 to 1921
• World War II Cohort - Born 1922 to 1945
• Baby Boomer Cohort - Born 1946 to 1964
• Generation X Cohort - Born 1965 to 1980
• Millennial Cohort - Born after 1980

The Boomers are the “tween” generational cohort, born “between” the Depression and WWII cohorts and the Gen X and Millennial cohorts. Both the Depression and WWII older cohorts (with an age span of 65 to 98) are decreasing in number. Gen Xers (ranging in age from 30 to 45) are moving into their most productive years, while the Millennials (age 30 and under) are the largest U. S. generational cohort and whose numbers are rapidly swelling in the marketplace.

The Boomers connect with the Depression and WWII cohorts in that the vast majority of their lives where spent in the non-digital analogue world of newspapers, magazines and broadcast radio and TV.

But the Boomers also connect with the Gen Xers and Millennials in that their entire lives growing up after WWII has been about adapting to increasingly rapid technological change, especially in the marketplace of the last twenty years.

The Millennials lead all living cohorts in adapting to the digital world followed closely by the Gen Xers. But surprisingly, the Boomers are close behind. However, recent Pew Research reports that the gulf that separates the Boomers adoption of digital technology from the WWII and Depression cohorts is significant.

For fund raisers, the good news about the Boomers is that like the Depression and WWII generation, their habits were developed in the analogue world which means they are still accepting of analogue communication media.

What does this mean for established nonprofit fund raisers who have an outsize dependence on direct mail? Simply this: it means that you have a window of opportunity.

Question: An opportunity for what?

Answer: An opportunity to develop online and digital-based capabilities for the Gen X and Millennial cohorts before your direct mail generated fund raising begins its inevitable decline.

The first Boomers turn 65 this year.

How long do you think you have?

-Mike

Welcome to BIG’s Blog and yes, by all means forward our blog to your friends and co-workers.

Wednesday, January 19, 2011

BIG's Blog: It's all about Me - a recent paradigm

In my last blog, I addressed the importance of knowing your constituent donor using data analysis. Following is an example of how data analysis may have come up with a better result. This organization had a good idea. But, I soon realized that the organization really didn’t know much about me as an individual constituent.

Having worked in the medical field, I know the value of a blood donor – especially in life-and-death situations. I am a “universal donor,” which is valuable to those who are in desperate need of a transfusion. My type is specifically used for accident victims and babies in need of transfusions. For this reason, I have donated blood to as many blood facilities as possible over the years. My primary donations were to the largest donor blood organization.

Recently, I donated blood. That same day, I received a congratulatory letter from this organization telling me that I am now a charter member of the Blood Donor Club. My first reaction was ego. "I am finally being recognized for my over thirty years of being a blood donor to this organization." As a member of this “club,” I now have all of these benefits--many that I will never use. As I read on, the letter indicated that I had achieved a Silver Level blood donor status. "Hmm". . . . I thought, “Why am I not a gold member by now?”

The letter indicated that I gave two to three times last year. That sounded about right, but I don’t really keep track. My analytical mind then calculated the following:

If I donated three times last year, and I have been giving blood for a minimum of 20 years, that equals a possible 60 pints of donated pints of blood. I took an average of the fees charged over the years to buy one of these units and came up with cost of $500 per unit. (This is a theoretical number used to make a point.) Base on this speculation, my worth to the organization is approximately $30,000 of “in-kind” donations. Granted, that may not seem like a large number, but to some organizations, it could be.

Recognition of a constituent donor is important, especially to those have supported you for years. Is your organization willing to really get to know your constituent donors? Data analytics and good data management can be of great value for developing and maintaining a strong constituent donor relationship. With good analytics and data maintenance, you can identify what is truly important to your donors.

Let this example provide your organization with a reason to improve your relationships with constituents/donors. I will continue to donate to this organization, but now, I may not be as loyal...

-Gail

Tuesday, January 18, 2011

BIG’s Blog: I’m behind again?

There are those of us of a certain vintage that can remember the pre-personal computer (PC) age; the world where only large organizations could afford to access computer power. Today, as it has been related to me, my laptop has more computing power than the U.S. Air Traffic Control system circa 1968.

And now, just as I am comfortable with PCs and networks, it’s Bye-Bye, PCs and Laptops. Writing in the Op-Ed section of the Wall Street Journal, Mike Malone and Tom Hayes, a Silicon Valley journalist and tech entrepreneur respectfully, share with us the news from the annual Las Vegas Consumer Electronics Show that smart phones and tablets (think iPads) will soon handle the majority of our personal computing and communications needs.

For us as consumers, this really isn’t a surprise. We all know that plain vanilla cell phones – those used to call and be called – have given way to smart phones with built-in features like being able to text and downloadable applications (apps) that are helping manage our lives and are changing our modes of communications. Can you still buy plain vanilla cell phones?

It’s when we put on our fund raiser’s hat that this news gets a bit unsettling, especially if we are still highly dependent on direct mail for a significant portion of our revenue. To reach your next generation of donors, you’ve just updated your Web site and started sending mass emails and now these donors are abandoning PCs and migrating to smart phones and iPads. What changes in how we communicate through those devises?

-Mike

Welcome to BIG’s Blog and yes, by all means forward our blog to your friends and co-workers.