Posts tagged ‘management’

April 4, 2014

Delivering (My Own) Bad News

I don’t want to mislead you. So, let me be clear from the start. This post is less about how to deliver bad news and more about, well, me sharing some bad news with you. Nevertheless, in keeping with the spirit of this blog site, I will include some relevant tips at the end.

First, I want to share some terrible, personal news with you.

As you may know from some of my previous posts, the past couple of years have been a challenging time given my wife’s fight with Ovarian Cancer. Now that she continues to be in remission, we were looking forward to a happy, relatively normal 2014. Unfortunately, that’s not to be the case.

I have been diagnosed with Pseudomyxoma Peritonei (PMP), a slowly progressing abdominal cancer. PMP is rare. Medical professionals diagnose fewer than 1000 cases per year worldwide, according to some researchers.

Frowny Face by khaybe via FlickrAt this point, I have no pain and very little discomfort. My only significant symptoms are a distended abdomen, an annoying cough from the pressure on my diaphragm, and weight loss beyond what I was shooting for. However, left unchecked, my condition would soon change for the worse. Therefore, in the coming weeks, I will undergo surgical treatment. This will require a lengthy hospital stay and recovery period.

Unfortunately, there is no cure or even remission for PMP. Treatment will beat it back. Then, I have to hope it comes back very slowly.

Now, and for at least the next few months, I need to focus 100 percent of my energy on regaining as much of my health as possible. So, I’ll be taking an indefinite leave-of-absence from my blog, professional life, and most social media activity. I look forward to re-engaging as soon as I am able.

Meantime, here are some things that you might consider doing, in no particular order:

March 18, 2014

Get More Repeat Gifts: The Rule of 7 Thank Yous

Donor retention is a worsening problem for the American nonprofit sector, according to Jon Biedermann, Vice President of DonorPerfect. In 2011, only half of first-time donors to a charity could be counted on to make a second gift. As bad as that retention rate was, it dropped to 49 percent in 2012.

Something must be done.

It’s challenging and expensive to acquire first-time donors. Charities must do a better a job of hanging on to those donors. Cost-efficient annual fund campaigns as well as major and planned giving efforts depend on loyal donors.

MG Fundraising CoverFortunately, guest blogger Amy Eisenstein, ACFRE  offers a simple idea that can help: “The Rule of Seven Thank Yous.” Her rule will help you retain first-time donors, loyal donors, small donors, and major donors — in other words, all donors.

Amy is an author, speaker, coach and fundraising consultant who’s dedicated to making nonprofit development simple for you and your board. Her books include 50 A$ks in 50 Weeks and Raising More with Less.

In her current Amazon bestseller, Major Gift Fundraising for Small Shops, Amy takes the complex subject of major gift fundraising and distills it down to its essential elements. The book provides a clear, methodical approach that any organization can follow. Great tips, real-world stories, check lists, sample forms, and more make this a book that you will keep on your desk and refer to often, that is if you want to raise more money than you might have thought possible.

I’m happy to share Amy’s advice about how to more effectively retain donors. Here’s what Amy Eisenstein says:

There are two main reasons that donors, including those who make major gifts, provide for not making a repeat contribution:

1. They didn’t feel thanked; and/or

2. They were never told how their first gift was used.

Fortunately, the answer to this dilemma is a simple one: donors give because doing so makes them feel good. This includes feeling appreciated for their gift and knowing that their check has fed more children, cleaned the environment, or in whatever way has made a measurable, positive difference to a cause they care about.

Your job, no matter how large or small your budget, is to make sure your donors are satisfied on both counts. Over the course of working with dozens of nonprofit organizations, I’ve developed a simple process to help you do just that whenever you receive a major gift.

You may have heard that you should thank a donor seven times before asking for another gift. Here is my version of “The Rule of Seven Thank Yous” works:

1. Thank the donor at the ask meeting (once they say “yes”).

2. Have a board member call to say thank you after the meeting.

3. Send a tax-receipt thank-you letter within forty-eight hours of receiving the gift.

4. Have the executive director write a thank-you card as a follow-up to the ask meeting. 

February 28, 2014

Warning: US Volunteerism at a Decade Low!

The rate of volunteerism in America fell to the lowest level in a decade, according to the US Bureau of Labor Statistics report Volunteering in the United States — 2013.  This appears part of a downward trend.

Nonprofit organizations should find this trend alarming for a number of reasons, including:

Volunteers provide an essential labor pool. Approximately 62.6 million (25.4 percent) Americans volunteered at least once between September 2012 and September 2013.

The median volunteer spent 50 hours on volunteer activities during the study period. These significant volunteer hours mean that volunteers are a valuable part of the nonprofit labor force. Declining volunteerism rates mean charities will either have to limit services, discontinue certain activities, or pay for employees to perform the tasks formerly handled by volunteers.

Volunteers serve as ambassadors. Individuals who volunteer usually act as ambassadors for the organization. They obviously have a high-degree of interest in the organization, which is why they volunteer with it.

Through volunteer experiences, provided they are good ones, the volunteers will become more engaged with the organization and more passionate about its work. They will speak of the organization with family and friends. When they do, it will be in a positive, passionate tone. This word-of-mouth promotion will help your organization to attract additional volunteer and donor support.

Volunteers are more likely to donate. The more engaged an individual is with his community, the more likely he is to volunteer and contribute money to nonprofit organizations. The more points of connection there are between an individual and a particular nonprofit organization, the more likely that individual is to give, give often, and give generously to that organization, as I point out in my book, Donor-Centered Planned Gift Marketing.

Volunteerism is an important point of connection. This phenomenon is explained, in part, by the Social Capital Theory popularized by Robert Putnam, author of Bowling Alone.

Volunteers are more likely to make planned gifts. Consider what researcher Russell James, JD, PhD, CFP reports in his book, American Charitable Bequest Demographics (1992-2012):

Among those with [estate] planning documents, those who both volunteer and give ($500+) are dramatically more likely to plan a charitable estate gift than those who only volunteer or only give ($500+). Those who only volunteer, plan charitable estate gifts at approximately the same rate as those who only give.”

Graph from American Charitable Bequest Demographics (1992-2012) by Russell James.

Graph from American Charitable Bequest Demographics (1992-2012) by Russell James.

Furthermore, those who only volunteer or only donate ($500+) are more than twice as likely to make a legacy gift than those who do neither.

For a free electronic copy of James’ book, subscribe to this blog site in the right-hand column. You’ll receive an email confirmation of your subscription that will contain a link to the book.

Clearly, the steady decline in volunteerism represents a serious problem for the nonprofit sector.

So, why is volunteerism on the decline? Unfortunately, the reasons for the decline are unclear. However, the report contains some clues.

January 3, 2014

Do You Have an Attitude Problem?

[Publisher’s Note: Have you read any good books about charities or fundraising? If so, click here to share your favorite title by January 10 and you could win a free, award-winning book.]

  

Has anyone ever accused you of having an attitude problem?

I hope so.

If you don’t have an attitude problem, I encourage you to develop one. For your sake. For the sake of your organization. For the sake of the nonprofit sector. You can even make it your 2014 New Year Resolution.

I’m not suggesting you cultivate a bad attitude. Instead, I’m encouraging you to shake up the status quo regardless of what others might think. I want you to challenge conventional wisdom in an intelligent way.

Remember, if some of our ancestors had not had an attitude problem, we’d still be living in caves.

Let me share two stories that will illustrate what I mean.

I quite fondly remember the very first time someone told me I had an attitude problem. It was Mrs. Imperiali, my first-grade teacher. Mrs. Imperiali, her real name, asked the class, “What’s the Eager Studentsmartest animal in the world?” I immediately raised my hand. When Mrs. Imperiali called on me, I confidently answered, “Dolphins.”

My response puzzled my teacher. She asked, “Why dolphins?” I told her, “Because they don’t kill each other for no reason.”

Mrs. Imperiali snapped, “Mister, you have an attitude problem!”

I need to point out here that, when I was in the first grade, it was during the height of the Vietnam War. I guess Mrs. Imperiali didn’t appreciate what she believed was the anti-war sentiment of my response. However, since I believed in my answer, I did not take my teacher’s criticism as a negative. As a result, I’ve worn the attitude-problem label with pride, not shame, my entire life.

In case you’re wondering, the answer Mrs. Imperiali was going for was “humans.” As it turned out, she had designed her lesson plan to demonstrate that humans are part of the animal kingdom. Oh well.

A couple decades later, I met Carol Buchanan Daws at the Academy of Natural Sciences. Like me, Carol had an attitude problem.

As the Assistant to the Museum Director, Carol was responsible for the back-office processing of museum memberships. Despite being the oldest natural science research institution and museum in the Western Hemisphere, the Academy only had a token membership program and no Director of Membership.

Carol saw an opportunity to grow the membership program. She repeatedly told her boss about the potential of the membership program. Unfortunately, the Museum Director was content with the status quo. So, Carol did the only natural thing she could do: She kept nudging him about it.

Finally, when the Museum Director was sufficiently annoyed or, perhaps, convinced, he appointed Carol Director of Membership.

December 20, 2013

Have You Read Any Good Books Lately?

Wise fundraising professionals, nonprofit managers, consultants, and volunteers, often seek out the latest, greatest ideas, and have an interest in stories that can inspire.

If you are like many in the nonprofit world, you read books to discover the ways to generate improved results or to find inspiration.

Bookworm by PMillera4 via FlickrNow, I invite you to share the favorite book(s) you’ve read in the past year. Please use the “Leave a Reply” section below to provide the title and author of any fundraising, nonprofit management, or philanthropy book that you found particularly worthwhile to read. The book you recommend can be either a classic or a new title.

The objective here is to build a list of worthwhile books we should all consider adding to our 2014 reading lists.

By recommending a book here, you’ll get three benefits:

1. You’ll have the pleasure of helping your nonprofit brothers and sisters find worthwhile material that can help them and their organizations.

2. You’ll be entered into a drawing to win a free copy of my bestselling book, Donor-Centered Planned Gift Marketing. I’m honored to have won the AFP/Skystone Prize for Research in Fundraising and Philanthropy for this book. In addition, I’m pleased that my book has been placed on the CFRE International Resource Reading List because my goal was to get this valuable, practical information to as many people as possible. If you already have a copy (Thank you!), I’ll donate the winning copy to your favorite charity. One winner will be randomly selected on January 10, 2014.

November 22, 2013

Is CFRE Spinning Its Wheels?

I’m not sure. CFRE International is either spinning its wheels or it is poised for growth. Either way, it needs and welcomes our advice.

I see articles and postings that promote the Certified Fund-Raising Executive (CFRE) credential from time to time. Most recently, I saw:

 “New CFRE Website and Online App” posted by Garvin Maffett in the CFRE International Network Group on LinkedIn (Oct. 31, 2013)

“Are You Certified?” by F. Duke Haddad in FundRaising Success (Nov. 8, 2013)

As someone who has held the CFRE designation longer than 89 percent of all others, I care about and support the credential. So, I’m pleased to see that CFRE Spinning Wheels by cpaparcuri via FlickrInternational has a new, easier to use, more robust, more service-oriented website. I’m also pleased to see others promoting the CFRE designation.

However, despite my enthusiasm for the CFRE credential, I continue to be troubled. Two years ago on this site, I asked, “Does CFRE Have a Future?” My concerns persist. As of 2012, there were 5,630 CFRE holders worldwide, according to the CFRE International annual report. That’s just a 5.7 percent increase over the number of certified professionals in 2007.

That’s a miniscule five-year growth rate.

Depending on how you count larger (expenditures of $500,000 or more) and active public charities, the sector has seen growth of approximately 12 percent in the US since 2004/05.

That means the CFRE growth rate of 5.7 percent has not even kept pace with the growth rate of the nonprofit sector in the US. Every year, CFRE has been becoming less significant, relative to the market, despite its modest rate of growth.

The number of CFREs relative to the number of development professionals is modest at best. The number of CFREs in the US and Canada is about 17 percent of the number of members of the Association of Fundraising Professionals.

November 15, 2013

Prospect Research v. Invasion of Privacy

Edward Snowden became a worldwide “celebrity” when he leaked classified information about the US National Security Agency’s spying programs.

In the process, Snowden’s revelations have fueled discussions around the globe about privacy and access to information.

The Economist recently published a chart by the Boston Consulting Group that looks at how people around the world feel about the privacy of different types of information:

Privacy - The Economist 1113  

As you can see from the above chart, people around the world, particularly in the West, value their privacy. For example, the vast majority of Americans consider financial data and information about children to be “moderately or very private.”

That might explain why alumni from New York’s prestigious Dalton School were upset when volunteer solicitors were given information about the children of fundraising prospects. Specifically, solicitors were told about the children of prospects who had applied for admission to the School but who were rejected.

An alumna who had previously donated to the School described the situation to The New York Times as “horrible.” That’s the last thing you want someone to feel about your development program. It’s the last thing you want someone to say about your organization to a reporter.

The head of Dalton issued a public apology and a promise to do better.

It’s easy to understand the tension that exists between nonprofit organizations and their donor prospects. Organizations want to gather as much useful information as possible, and they want their professional and volunteer solicitors to know a great deal about the people they will approach in order to maximize success. However, this posture is often at odds with prospects who want and expect what they consider their personal information to remain private.

Charities face two issues when it comes to prospect research and privacy:

October 8, 2013

Survey Respondents Overwhelmingly Express Concern over Government Shutdown

The vast majority of nonprofit professionals (63 percent) responding to an unscientific Michael Rosen Says… survey say that they expect the US government partial shutdown will negatively affect their nonprofit organization or they are concerned it might.

Worry by spoo0ky via FlickrThe shutdown affects nonprofits in a variety of ways. Organizations that rely on government grants have seen those grant payments delayed or withheld. Organizations that do government contract work are seeing payments delayed. Organizations that assist individuals in need are seeing an increased demand for their services.

In addition to those negative effects, 28 percent of survey respondents expect the government’s partial shutdown will result in less philanthropic support this year.

Interestingly, 67 percent of survey respondents expect that the shutdown will hurt the nation’s economy. Because overall philanthropy closely correlates to the country’s Gross Domestic Product, at a rate of approximately two percent, we can expect overall philanthropy to be negatively affected if the shutdown slows the already weak economy.

October 1, 2013

Special Report: Doomsday?

On Oct. 1, 2013, the US federal government shutdown all non-essential operations. This is the first government shutdown in 17 years. It’s uncertain how long this shutdown will last. The failure by Democrats and Republicans in Washington to agree on a budget bill triggered the current shutdown.

At this point, we cannot really know how the impasse in Washington will affect the nonprofit sector, the nation, or the world. However, one thing is certain: The longer the shutdown continues, the greater the risks.

So that we all can get a better understanding of the situation, please take a moment to answer the following five poll questions:

read more »

September 27, 2013

Do You Want a 43% Pay Raise?

How would you like your employer to increase your compensation package by 43 percent? 

If you would, just follow these two steps:

1. Become the President of the University of Pennsylvania.

2. Negotiate the deal with the Board of Trustees

That’s exactly what Amy Gutmann did.

The University of Pennsylvania increased Gutmann’s compensation package from $1,462,742 in 2010 to $2,091,764 in 2011, according to a recent report in The Daily Pennsylvanian.

Penn President Amy Gutmann by University of Pennsylvania

Amy Gutmann, President, University of Pennsylvania

The report is based on the University’s most recent tax filing. Gutmann’s 2011 compensation package marks more than a 170 percent increase since 2005, the year Gutmann became President.

Let’s put Gutmann’s compensation into perspective.

The New York Times reported in 2011 that, “in the decade from 1999-2000 to 2009-10, the average presidential pay at the 50 wealthiest universities increased by 75 percent.”

Among Ivy League university Presidents, Gutmann has consistently ranked third in recent years, behind Columbia University and Yale University. However, in 2010, Gutmann was the 12th-highest-paid private university president in the nation, according to a report in The Chronicle of Higher Education. That was not good enough according to David Cohen, Penn’s Board Chair and Chair of the Compensation Committee. Here’s what The Daily Pennsylvanian reported:

After seeing that report, Cohen said, the compensation committee was struck that Gutmann had not placed in the top 10. Given the scale and complexity of Penn, as well as Gutmann’s performance, he said, the compensation committee believed it needed to adjust Gutmann’s compensation to bring it more in line with her peers.”

For whatever reasons the Penn Board did not believe that being ranked 12th in presidential compensation was good enough. Penn needed to be ranked among the top 10.

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