Archive for ‘General Nonprofit’

December 13, 2018

Will One Charity’s Surprising Year-End Email Make You Look Bad?

This week, I received a surprising email from a national charitable organization. The email was so unusual that I need to tell you about it.

Like you, I’m deluged by emails from charities that arrive from the days leading up to #GivingTuesday through December. Most of the messages are from nonprofit organizations that forgot about me all year except now that they want my money. Most care nothing about me. None offers to help me or be of service to me. Most of the emails are just terrible.

One awful email came with the subject line, “Welcome to [I’m deleting the name of the organization].” Sounds nice enough, right? There’s just one tiny problem. I’ve been a donor for decades and even did a tour of duty as a trustee of the large organization. Ugh!

Given the garbage in my email Inbox, I was a bit relieved when I received a remarkable email from the Charities Aid Foundation of America.

WARNING: The email is so wonderful that it just might make you and your organization look bad.

Look for yourself, then I’ll explain why this is a near-perfect email and why you should immediately do something similar before it’s too late:

[Note, the actual email formatting was a bit better than the image I was able to capture for you. Ah, technology!]

Let me explain why this email works so well.

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November 28, 2018

“Philanthropy” Is NOT What You Think It Is

Do you understand what the word “philanthropy” really means? If you don’t, it could be costing your nonprofit organization a fortune in lost support. Conversely, once you know the true meaning of “philanthropy,” you’ll be better able to relate to prospective donors and inspire them to give. So, what does the word truly mean?

If you’re like most people, you probably think you know what “philanthropy” means. “Philanthropy” involves a large contribution to a nonprofit organization from a wealthy individual, a philanthropist. A recent example of this would be Michael Bloomberg’s recent announcement that he is donating $1.8 billion to Johns Hopkins University, the largest individual donation ever made to a single university.

However, that understanding of “philanthropy” is entirely too narrow. Let me explain by first telling you what “philanthropy” is not. Philanthropy does not necessarily involve:

  • donating vast sums of money;
  • supporting large numbers of charities;
  • sitting on nonprofit boards;
  • only wealthy people.

Coming from the ancient Greek, here is what the word “philanthropy” actually means:

Love of humanity.

Signs of support appeared throughout Pittsburgh following the murders at Tree of Life * Or L’Simcha Congregation.

Think about that. People donate their time and money to nonprofit organizations because of their love of humanity (or animals). They want to solve problems and alleviate suffering. They want to make the world a better place. That’s what motivates people to think philanthropically.

People won’t think philanthropically simply because it’s Giving Tuesday, and you tell them they should. They won’t think philanthropically just because they attended your university and are told they should “give back.” They won’t think philanthropically just because your organization exists and is a household name.

If you tap into a person’s love of humanity, you’ll tap into their philanthropic spirit. That’s how you’ll inspire their support. That’s how you’ll upgrade their support. That’s how you’ll maintain their support.

Charitable giving is an expression of a donor’s love.

I was reminded recently of the true power of the  philanthropic spirit. It wasn’t Bloomberg’s massive gift, though that was definitely amazing. Instead, when I visited Pittsburgh, I was reminded of the power of love to build, and rebuild, strong communities.

Temporary memorial outside of Tree of Life * Or L’Simcha Congregation.

When my wife and I traveled to Pittsburgh a couple of weeks ago, we attended evening Sabbath services with the congregants of the Tree of Life * Or L’Simcha Congregation in their temporary home. This was less than two weeks after a gunman entered the synagogue and horrifically murdered 11 people as they worshiped. Praying with the congregants, talking with them, and meeting Rabbi Hazzan Jeffrey Myers was a profoundly moving experience. Making the evening even more moving was the fact that it fell on the 80th anniversary of Kristallnacht, also known as the Night of Broken Glass. During Kristallnacht in Nazi Germany, Jews were murdered and synagogues and Jewish-owned businesses were vandalized and had their windows smashed.

Support came from around the world.

Rabbi Myers drew a parallel between Kristallnacht and the recent attack that nearly took his life. Both violent attacks were motivated by rabid anti-Semitism, which has been on the rise in America since 2014. However, Rabbi Myers also drew meaningful distinctions between the two events.

During Kristallnacht, officially sanctioned groups along with German civilians attacked the Jewish population. Local authorities did nothing to stop the attacks. The police protected non-Jewish citizens while arresting and imprisoning Jewish victims.

By contrast, American authorities condemned the Pittsburgh attack immediately, and offered comfort to the victims. People throughout Pittsburgh, Pennsylvania, the United States, and the world expressed their sense of horror and grief. They offered words of condolence, and made donations to help the families and to rebuild the badly damaged synagogue. The police in Pittsburgh ran toward the danger, put their own lives at risk, confronted the attacker, and ended what could have been an even more tragic event.

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November 8, 2018

Did the Midterm Elections Help or Hurt Your Nonprofit?

I’m a news junkie. So, I was up very late on election night, actually very early the next morning. Now that I’ve caught up on some sleep, I’ve been thinking about what the midterm election means to charities. In this post, I’ll layout some of my nonpartisan thinking. Just be warned, I’m also going to share some statistics and a bit of history as we consider what the election means for the nonprofit sector.

The midterm elections this week resulted in the Democratic Party regaining control of the US House of Representatives. Let’s put that into a bit of historical perspective. Despite successfully securing a majority in the House, the Democratic Party’s much-hoped-for Blue Wave did not materialize. As I write this post, the Democrats are expected to gain a 27 to 34 seat advantage over Republicans in the House. However, Republicans not only hung on to control of the Senate, they actually enhanced their position by three to five seats.

To put the Federal election results into some context, let’s look at the 2010 midterm elections during President Barack Obama’s second year in office. Going into the 2010 election, Obama’s approval rating was six points higher than Trump’s was prior to the 2018 election. Nevertheless, Democrats lost 63 House seats and lost six Senate seats.

“[The 2018 midterm elections are] only the third time in the past 100 years that the party holding the White House has gained seats in the Senate in a midterm election while losing seats in the House,” according to MarketWatch. “The President’s party has won seats in both the House and Senate just twice in the past century in a midterm election.”

This all means that both Democrats and Republicans can declare success this week. But, what about the nonprofit sector?

While it’s too early to know with any certainty, there are some things we learned on election night and other things we can learn from history:

1. Impact on the Election. In the lead up to the vote, nonprofit organizations flexed their muscle along with their corresponding Political Action Committees. On a variety of issues, the nonprofit sector demonstrated that it could have a profound impact on public policy. Regardless of where you stand on the issues, here are just a few examples to illustrate the point:

In Massachusetts, the American Civil Liberties Union, Human Rights Campaign, MassEquality, Planned Parenthood Advocacy Fund of Massachusetts, The Yes on 3 Campaign, and other organizations joined forces and scored a massive victory on election night when voters, by a two-to-one margin, reaffirmed the rights of transgender people.

In North Carolina, voters approved a measure directing the legislature to amend the state constitution to guarantee the right of citizens to hunt and fish. This was a victory for the Congressional Sportsmen’s Foundation and the National Rifle Association.

In Florida, the Humane Society of the United States and PETA persuaded voters to change the state constitution to ban greyhound racing.

Nonprofit organizations have political power. When nonprofit organizations join forces, they can have a dramatic effect on public policy.

2. Good News for the Stock Market. Historically, Americans prefer divided government, so it’s not surprising that Democrats were able to regain control of the House. Like the populace, the stock market also prefers divided government.

“Here’s what Investor’s Business Daily found, looking at S&P 500 returns during each two-year election cycle, from election day to election day. The best outcome, an average 18.7% two-year return, came when Congress was divided. Unified control of Congress by the same party as the president yielded an average 17.3% two-year gain. When control of Congress was unified under the opposition party, gains averaged 15.7%.”

If the stock market goes up, many donors will own appreciated stocks that they can donate to charities. Foundations will see their stock holdings grow and, therefore, have more money to grant to nonprofits. That would be good news for investors and charities.

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October 19, 2018

How about a Bit of Fun for Fundraising Professionals?

It’s time to dig out your old swag from the National Society of Fundraising Executives and/or Association of Fundraising Professionals. Let me explain.

These are stressful times. In the broader society, we’re witnessing a volatile stock market, international intrigue, upcoming mid-term elections, the aftermath of hearings for Brett Kavanaugh’s appointment to the US Supreme Court, and so much more.

In the fundraising world, we read articles about how the new tax code could lead to a decline in charitable giving. We also read about scandals involving nonprofit organizations and religious institutions. Furthermore, we know that donor-retention rates remain abysmal despite all the talk about how to resolve the problem.

Against this anxiety-inducing backdrop, fundraising professionals have the added pressure of trying to meet fundraising goals as the end of the calendar year approaches.

If you’re not feeling a bit of stress and/or anxiety, you haven’t been paying attention, or you’re really good at meditation, or you’re drinking too much, or you’re eating too much chocolate.

So, with that in mind and given that Halloween, a fun holiday, is just weeks away, I thought I’d give you a brief break from fundraising talk. With this post, I want to do something a bit different and, I hope, have a bit of fun together.

The ever-stylish Michael Nilsen models his classic AFP shirt.

A few weeks ago, Taryn Gold, Vice President of Chapter Engagement at the Association of Fundraising Professionals, shared a photo on Twitter that I found amusing. The current picture shows Michael Nilsen, AFP’s Vice President of Communications and Public Policy, wearing an official AFP polo shirt from 2001.

One of the reasons the photo caught my eye is that I also still own the same shirt. No, I’m not ashamed to admit that. In fact, I also still have a bunch of older AFP swag, some of it from NSFRE, the name of the organization prior to 2001.

Gold’s tweet inspired me to dig around for my own ancient NSFRE and AFP swag. I was a bit surprised by what I found (see the photo below). Resting on my AFP shirt, you’ll find an NSFRE handbook from 2000, two AFP logo pins from 2001, an early CFRE button from 1994 (NSFRE created the CFRE credential), my first NSFRE Foundation donor pin from 1992, An NSFRE Founder’s Club donor pin from 1998, an NSFRE President’s Club donor pin from 2000, an AFP Political Action Committee donor pin from 2002, an AFP conference badge, my name badge from when I represented AFP before the US Federal Trade Commission, and an NSFRE conference badge.

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October 5, 2018

9 Hard Truths Every Fundraiser Needs to Face in the 21st Century

In the Oscar-nominated film A Few Good Men, Jack Nicholson’s character famously shouts, “You  can’t handle the truth!”

Well, if you want to be a successful fundraising professional, you better know the truth and be prepared to handle it.

If you want to be successful at anything, you need to face the core truths involved no matter how challenging. Ignoring reality is a certain pathway to failure.

One nonprofit development truth is that authentic, donor-centered fundraising results in more donors giving more money than would otherwise be the case. Penelope Burk wrote about this years ago in her landmark book Donor Centered Fundraising, available October 15 in a new second edition. I wrote about the subject in my own book, Donor-Centered Planned Gift Marketing.

Recently, Greg Warner, CEO of MarketSmart, released his powerful new book that reveals a straightforward, meaningful way fundraisers can embrace the concept of donor-centered fundraising.

In Engagement Fundraising, Greg passionately reveals the 21st century donor-centric strategy practiced by MarketSmart. Some people might be angered by or afraid of the core message of this book while others will find it to be simple common sense. However, one thing everyone can agree on is that Greg is a disrupter, and that’s a good thing. If it wasn’t for society’s disrupters, we’d still be riding around in horse-drawn carriages, and you’d be reading his book by candlelight. His fresh, technology-driven approach is a powerful way forward for those interested in engaging people to inspire more philanthropic support.

At the end of this post, I reveal how you can download, for free, the introduction and first chapter to Engagement Fundraising. But now, I want to share Greg’s additional insights with you as he outlines nine hard truths every fundraiser needs to face in the 21st century:

 

1.  Competition is fierce and everywhere. Nonprofits don’t only compete with other nonprofits. They also compete with private sector businesses and Uncle Sam (the tax collector) for every donor’s “share of wallet and attention.” Plus they want non-exclusive, polyamorous relationships with organizations. In other words, they will decide when they’ll cozy up to other charities. Of course, you can influence their decisions but you can never control them. You are at a disadvantage. Private sector companies and the government have deeper pockets. In order to win, you better be smart!

2.  Most of the time donors spend involving themselves with your organization happens without a fundraiser present. More than 99 percent of every donor’s time and energy spent involving themselves with your organization’s mission is done without you. You must accept this new reality and enable your supporters’ self-education and self-navigation of the decision-making process.

3.  The consideration continuum is open-ended. Donors are fickle. Their needs, passions, and interests will change. As they do, they might decide to give more, less, or stop giving altogether. They might involve themselves deeper in your cause or end their involvement (perhaps even by removing your organization from their estate plan). As a result, customer service (stewardship) is more essential now than ever.

4.  Your job is to make them feel good, not ask for money. In order to generate major gifts (including legacy gifts) and inspire high-capacity mid-level donors to give more, you must make your donors feel good by engaging them politely and persistently with offers that deliver value over time. If you do that, your donors self-solicit. They’ll step up to make a difference so they can find meaning in their lives. Then they’ll ask you, “What can I do to help?” Yes! Seriously! If you make them feel good, they will give, give more, refer friends, get more involved, become more committed, and make legacy gifts.

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September 14, 2018

Lions, Tigers and Bears, Oh My: Fundraising in Times of Crisis

As I’m writing this, Hurricane Florence is barreling toward North Carolina. Watching the news reports, I’m reminded that the best way to weather a storm is to prepare before one strikes. The tragic situation in the southeastern US can serve as a metaphor for coping with any type of crisis, even for the nonprofit sector.

The best way to deal with a crisis is to prepare for one before one strikes. 

Guest blogger Sophie W. Penney, PhD is a big believer in that axiom. Sophie is President of i5 Fundraising and Senior Program Coordinator/Lecturer for the Penn State University Certificate Program in Fundraising Leadership. As the co-editor and chapter author of the soon-to-be-released book, Student Affairs Fundraising, Raising Funds to Raise the Bar, Sophie will be sharing her insights at the CT Alliance 2018 Conference on October 2, 2018 where she will present a session about leading through challenging times, Lions, Tigers and Bears: Leading Through Crisis.

A crisis can affect any type of organization. The nonprofit sector is not immune. As I point out in “What is the Most Important Thing You Can Learn from Recent Nonprofit Scandals?” there are three broad types of scandals or crises: 1) self-inflicted scandals beyond your control, 2) self-inflicted scandals you could have avoided, and 3) guilt-by-similarity scandal.

I’m grateful to Sophie for her willingness to share with us a few tidbits from her upcoming presentation that will help us all become better prepared to weather any scandal or crisis as we continue to strive to raise more money:

 

Michael Rosen’s recent blog post, “The Dark Side of the Fundraising Profession,” was a clarion call to fundraisers. The piece served as a reminder that a profession designed to bring joy and result in great good can be fraught with challenges.

Fundraisers are pressed to raise ever-larger sums (and the sooner the better); as a result, it can be compelling to focus on fundraising tips, tools, and techniques that will bring in ever-bigger dollars. Yet a crisis, particularly legal or ethical in nature, can derail fundraising not only for a fiscal year, but for far longer.

Fundraising in times of crisis hit home for me in 2011 with the advent of the Jerry Sandusky Scandal. This child sexual abuse scandal toppled the Penn State University President, resulted in the abrupt firing of the University’s revered football coach, led to the sale of a nonprofit founded to serve the very types of children who became victims, and rocked a small community previously known as “Happy Valley.” What’s more, the scandal came to light in the midst of the University’s billion-dollar capital campaign, which was on the verge of going into a public phase. Yet, the Sandusky Scandal is just one of many such crises to rock the nonprofit world:

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September 3, 2018

Remembering Karen Chizeck (1959-2018)

Karen Chizeck, a Philadelphia-based nonprofit and political fundraising consultant, died on August 31. She suffered from early-onset Alzheimer’s disease and non-Hodgkin lymphoma.

She had a distinguished fundraising career. Before establishing her consulting practice, Karen worked for US Sen. John Heinz (R-PA), WHYY-TV 12, and Fox Chase Cancer Center. Her consulting clients included US Sen. Arlen Specter (R-PA), state Sens. Joe Rocks (R-PA) and Bruce Marks (R-PA), Philadelphia mayoral candidate Sam Katz (R), Republicans for Choice, Pennsylvania Ballet, Temple University Health Systems, and Friends of Old Pine Street. She also served as a Republican Ward Leader in Philadelphia.

I was fortunate to have been friends with Karen. Decades ago, we met when we both first got involved with the Association of Fundraising Professionals, Greater Philadelphia Chapter. We served on the same committee that happened to meet early in the morning, prior to the traditional workday. At the committee’s inaugural meeting, everyone was quite chipper, that is with the exception of Karen and me. We were the only non-morning people on the committee and, therefore, we developed an instant bond.

Karen Chizeck

Karen and I would always sit next to each other during the committee meetings. We would share side-jokes and, I’m sure, brilliantly witty comments; it kept us awake those early mornings. At one point, the committee chair jokingly threatened to separate us – at least I think she was joking.

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August 7, 2018

Mega-Philanthropist with Profound Legacy:H.F. “Gerry” Lenfest (1930 -2018)

H.F. “Gerry” Lenfest, cable-television pioneer, mega-philanthropist, and civic leader, has died at the age of 88. His extraordinary generosity and wisdom will have a lasting impact.

I had the privilege of knowing Gerry. I was especially honored that he provided the Foreword to my book, Donor-Centered Planned Gift Marketing. I want to share some of his astute words with you. However, I first want to tell you a bit about this great man and his exceptional life.

Gerry Lenfest (left) with Michael Rosen.

Gerry was not born into great wealth. He was born in Jacksonville, FL, and raised in Scarsdale, NY and later on the family farm in Hunterdon County, NJ. After his mother died when he was 13-years-old, his father sent him to the George School, a private boarding academy. A troubled student, he was invited not to return after just one year.

At his new school, young Gerry continued to be something of a juvenile delinquent, his own description. Finally, his father enrolled him at Mercersburg Academy where teenage Gerry began to excel.

Following high school, Gerry was directionless. He worked as a roughneck in North Dakota, a farm hand, and as a crew member on an oil tanker. Eventually, he attended Washington and Lee University where he received an undergraduate economics degree. He served in the U.S. Navy, rising to the rank of captain. In 1955, he married Marguerite Brooks, an elementary school teacher. Gerry went on to receive his law degree from Columbia University and, then, served with a prestigious New York law firm.

Walter Annenberg hired Gerry in 1965 to work at Triangle Publications, Inc., owner of Seventeen and TV Guide magazines, the Philadelphia Inquirer and Daily News newspapers, television and radio stations, and several cable television properties. With the help of loans and two investors, he bought two tiny cable systems from Annenberg in 1974 to start Lenfest Communications. In 2000, Gerry’s company had grown from 7,600 subscribers to over 1 million to become the 11th largest cable company in the nation. That same year, he sold the company to Comcast, netting $1.2 billion in the deal.

Gerry always attributed his great success to the skill and dedication of his various teams and good fortune, whether in business or with the nonprofit organizations he worked with. Knowing he owed much of his success in life to others motivated him, in turn, to help others.

The Lenfests signed on to The Giving Pledge, a movement of wealthy individuals who commit to donating the majority of their fortunes. Over more than two decades, the Lenfests have donated more than $1.3 billion to over 1,200 nonprofit organizations. The top 10 recipients of support from the Lenfests are (source: Philly.com):

ORGANIZATION DOLLARS IN MILLIONS
Columbia University 155.0
Lenfest Institute for Journalism 129.5
Mercersburg Academy 109.0
Philadelphia Museum of Art 107.3
Washington and Lee University  81.0
Museum of the American Revolution  63.0
Curtis Institute of Music  60.0
Lenfest (Pew) Ocean Program  53.3
Wilson College  40.0
Lenfest Scholars Program  32.0

In addition to his enormous philanthropy, Gerry served on a number of nonprofit boards including Columbia University, the Philadelphia Museum of Art, and the Museum of the American Revolution, which he helped create. In 2005, Gerry and Marguerite were awarded the Association of Fundraising Professionals Award for Outstanding Philanthropists.

You can read more about Gerry Lenfest’s extraordinary story by clicking here.

While I could say much, much more about Gerry and his tremendous, positive impact, I’d rather share some of Gerry’s own words with you. Gerry provides some sage advice for fundraising professionals about what they must do to secure significant contributions:

Knowing your prospects and understanding what motivates them are two critical steps in the [philanthropic] process. Quite simply, you cannot skip cultivation and relationship building and expect a successful outcome.”

Lenfest was also keenly aware that the fundraising process should not end when an organization receives a donation. He advises:

Do not make the mistake of forgetting about us once you receive our gift commitment. We may truly appreciate how efficiently and effectively you handle contributed funds so much that we entrust you with another [donation]. We are also in a position to influence others to do the same.”

As a strong advocate for planned giving, Gerry observes:

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July 27, 2018

How to NOT Make a Mistake Worse

There is an adage, first published in The Bankers Magazine (1964) that advises wisely:

If you find yourself in a hole, stop digging.”

The Law of Holes suggests we should strive to not make bad situations worse through further unhelpful, counter-productive behavior.

Sadly, many people, including nonprofit managers and fundraising professionals, fail to heed that fine advice. Instead, when in a bad situation or when confronted by criticism, many folks make matters worse by reacting defensively, acting helplessly, remaining in denial, criticizing the critic, or ignoring the situation altogether.

Fortunately, many people handle criticism gracefully and, in the process, set a fine example for the rest of us.

Recently, I wrote about my wife’s failed attempt to donate to a local charity. While my wife and I have never supported the organization, we do agree with its mission. Therefore, it was with great interest that I noticed that the charity was hosting a fundraising event with a speaker I wanted to hear. My wife went to the organization’s website to buy tickets. However, due to a website glitch, she was unable to complete the transaction. So, she then called the organization during office hours. Not being able to reach a live person, she left a voice-mail message. No one from the organization returned her call. We ended up not attending the event.

After I posted about my wife’s experience and what fundraisers can learn from it, I sent the organization’s Executive Director an email and a link to my article. I sent the email on Tuesday evening at 7:01 PM. I expected one of two things to happen: 1) I thought I might receive a defensive response the following business day, or 2) I might not receive any reply, ever.

Instead, my guess was happily wrong. That very evening at 7:21 PM, I received a message from the Executive Director. We can learn much from the tone and content of his response:

Dear Michael,

Your email was both upsetting and instructive. I appreciated the spirit of the message and have already begun to think about how to use it to create change and improve. Also I read your blog. I’m curious if you are a professional fundraiser? Either way you and your wife have my apologies for this unfortunate experience. It is clearly our loss when customers and potential friends are turned off. It’s contrary to the purpose of running these events and clearly counter productive.

In addition to my apologies you have my gratitude for bringing this to my attention.

Sincerely,

(name withheld here)”

Here is what we can learn from the email response:

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July 16, 2018

Jerold Panas (1928-2018), He Will Be Missed

When I opened my email inbox this morning, a profoundly heartbreaking news item jumped out at me. Legendary fundraising professional Jerold Panas died over the weekend. The email from Jerry Linzy, Executive Partner at Jerold Panas, Linzy & Partners reads:

It is with sadness, Jerold Panas, Linzy & Partners announce that Jerry Panas, Founder of Jerold Panas, Linzy & Partners and long time Chief Executive Partner died quietly in his sleep, Saturday, July 14, 2018.

Jerold Panas (1928-2018)

A private, family service is planned. A Memorial Service to celebrate the life of Jerry Panas will be scheduled in the future. Condolences may be sent to Felicity Panas in care of:

Jerold Panas, Linzy & Partners

500 North Michigan Avenue, S-1035

Chicago, IL 60611

Jerry Linzy, Executive Partner, Emeritus will serve as Interim Chief Executive. Business will continue as usual. All questions should be directed to Jerry Linzy, jerrylinzy@panaslinzy.com., or by calling 312.961.3221.

Felicity and the family want to express their appreciation for all who have been a Friend of Jerry. A complete biography of Jerry Panas’ life and his vast contribution to the world of philanthropy will be forthcoming.

All of us at Jerold Panas, Linzy & Partners share the loss of our leader, Jerry Panas. He was a colleague, friend, mentor, and innovative, philanthropic icon.  He will forever be, to use Ernest Hemingway’s salute:

‘The winner and undisputed champion.’”

Since Panas started it in 1968, his consulting firm has served over 3,800 clients around the world. Panas wrote 20 books including such classics as ASKING, Mega Gifts, and Born to Raise. He also shared his knowledge in countless professional presentations. By directly helping charities to raise more money and by educating fundraising professionals, Panas has touched the lives, both directly and indirectly, of countless people around the globe. His impact on the nonprofit sector and on the lives of people in general has been profound.

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