Posts tagged ‘AFP’

June 11, 2019

4 Major Problems with Nonprofit Compensation

Salaries are a big problem for nonprofit organizations. However, the problem, or rather problems, might not be what you think they are.

Let’s look at just four major issues:

1. Nonprofit staff earns too much money. The mainstream media regularly trumpet the high salaries that some nonprofit executives receive. Through their selective reporting, many in the media advance a narrative that suggests nonprofit professionals earn too much money. As a result, donors focus frequently on charity overhead, including salaries, rather than program and service outcomes when evaluating charitable organizations.

2. Nonprofit staff earns too little money. Simply put, many people working for nonprofit organizations are grotesquely underpaid. For example, I recently came across an advertisement for a nonprofit Administrative Manager and Marketing Associate in Washington, DC. The charity requires candidates to have a college degree and an automobile. The organization offers an annual salary of just $35,000. Take a moment and think about that. The job pays $35,000 a year in Washington, DC! In case you don’t know, Washington, DC is the fifth most expensive city in the US, according to Kiplinger.

Yes, some charity executives are overpaid. However, many high-paid nonprofit employees are worth every dollar because of their skills and proven results. Geographical cost of living is another reason some nonprofit professionals earn higher salaries. On the other hand, the story that the media seldom cover is that of underpaid nonprofit staff. The failure to provide a competitive salary, or even a salary someone can live on reasonably, makes it difficult for charities to attract and retain talented staff.

Maclean’s examined nearly 600 charities in Canada with gross revenue of over $2 million (Canadian $). The publication found charities that significantly overpaid or underpaid chief executives, relative to peer organizations, were less likely to be transparent or efficient. “Analysis of charity data suggests extremely high compensation is linked to poor results for charities. But intriguingly, so is extremely low compensation,” according to the report. “High salaries receive the most attention, but Maclean’s found a stronger correlation with poor performance at charities that underpay their staff or have no staff at all.”

Ideally, nonprofit organization would provide employees with competitive compensation packages taking into account the type and size of organization, the job position, and geographic area. Compensation does not have to be precisely average; it can be high or low though it should be within the average range. Compensation that is excessively high or low can be directly problematic and could be a symptom of other problems at the organization.

This brings me to a third compensation problem:

read more »

April 29, 2019

Update: Get a Free Webinar, Magazine Article, Poll Results

I want to update you about three posts I recently published. In addition, for National Child Abuse Prevention Month, I wish to draw your attention to one of my older posts that will help you keep the children you love safe.

Free Webinar:

Did you miss it? Recently, I presented a webinar for SEI Investments Management Corporation: “Investing in Your Future: Practical Strategies for Growing Your Planned Giving Program.” If you missed the program or wish you could share it with colleagues, I have some good news for you. The webinar is now available for free download by clicking here.

In just 30 minutes, you’ll learn:

  • 8 reasons you should be a planned giving “opportunist”
  • Why you should invest more in planned giving instead of current giving
  • 5 Tips to boost your planned giving results immediately

In addition to the webinar itself, you’ll also be able to download additional resource materials including a list of 20 factoids about planned giving, a planned giving potential calculator, an executive summary of recent research findings from Dr. Russell James’ report “Cash is Not King in Fundraising,” and a digital copy of Dr. James’ book Visual Planned Giving: An Introduction to the Law & Taxation of Charitable Gift Planning.

Advancing Philanthropy Article:

Have you read my recent article published in Advancing Philanthropy, the Association of Fundraising Professionals magazine? “To Sir/Madam, With Love” shares stories from a number of fundraisers about their favorite teachers. Great teachers:

  • help us develop broad skills such as critical thinking,
  • help us develop specific skills such as how to write an effective appeal letter,
  • inspire us,
  • encourage us,
  • move us to think beyond ourselves and better understand others,
  • open our minds to lifelong learning,
  • motivate us to giveback by sharing our own knowledge.

After downloading the free article by clicking here, check-out my recent post that will give you tips that will help you find excellent teachers who can help you enhance your skills and inspire you: “Are You Really Just a Fundraising Amateur?”

Poll Results — Presidential Candidate Philanthropy:

read more »

April 23, 2019

Are You Really Just a Fundraising Amateur?

We are all amateurs.

In my April 2019 article for Advancing Philanthropy, the Association of Fundraising Professionals magazine, I explain it this way:

In the film ‘Limelight’ (1952), Charlie Chaplin’s character says, ‘That’s all any of us are: amateurs. We don’t live long enough to be anything else.’ In other words, we will never know everything we need to know. All we can do is continue to learn and, perhaps, share what we know with others, inspiring them as we have been inspired.”

Let’s review the way good teachers shape our lives, and consider some tips for how to find true experts to learn from rather than mere wannabes.

Teachers shape our lives and help make us into the people we are. Take a moment and think about the affect your parents have had on you. Consider the lessons you’ve learned from religious leaders, schoolteachers, job supervisors, and others. Some people have taught us valuable skills, some have inspired us, some have taught us right from wrong.

In my Advancing Philanthropy article and the sidebar, you’ll read about how teachers have affected the lives of seven fundraising professionals, some you’ll likely know:

  • Teachers help us develop broad skills such as critical thinking.
  • Teachers help us develop specific skills such as how to write an effective appeal letter.
  • Teachers inspire us.
  • Teachers encourage us.
  • Teachers move us to think beyond ourselves and better understand others.
  • Teachers open our minds to lifelong learning.
  • Teachers motivate us to give-back by sharing our own knowledge.

Just as good teachers have helped us become the people we are today, teachers will help us continue to grow and become the people we want to be tomorrow. However, for that to occur, two things must happen: 1) we need to remain open-minded and intellectually hungry; and 2) we need to seek out good teachers who have something legitimate to offer.

Today, with the proliferation of available books and educational presentations dealing with nonprofit management and fundraising, it can be a challenge to distinguish between the true experts and the pretenders. Here are some tips to help guide you:

read more »

March 15, 2019

5 Tips You Need to Know to Survive Funding Volatility

It’s no secret that nonprofit organizations face funding challenges. One of the biggest challenges is volatility. Donors give and often do not renew support. Sometimes, that’s the fault of the charity. Other times, it has nothing to do with what a charity does or does not do. For example, funding from government sources, whether contracts or grants, can go up or down depending on political whims and changing priorities.

Recently, I was doing research for an article I was developing for the January issue of Advancing Philanthropy, the magazine published by the Association of Fundraising Professionals. While doing that, I identified five tips that can help all nonprofits better cope with funding volatility despite the fact that the article focuses on poverty-fighting charities.

Let me explain. As I wrote in my article:

Globally, poverty has been on a sharp, steady decline. ‘In 1990, 37 percent of humanity lived in what the World Bank defines as extreme poverty; today that number is 10 percent,’ writes Gregg Easterbrook, author of It’s Better Than It Looks: Reasons for Optimism in an Age of Fear. Yet, even given that good news, nearly one billion people continue to suffer in extreme poverty around the world.

In the United States, poverty has also been on the decline while individual purchasing power has been on the rise. For example, ‘On the first day of the twentieth century, the typical American household spent 59 percent of funds on food and clothing. By the first day of the twenty-first century, that share had shrunk to 21 percent,’ Easterbrook reports. ‘US poverty has declined 40 percent in the past half-century.’ Still, despite the enormous economic progress, poverty continues to darken the lives of millions of our fellow citizens.”

While charities continue their efforts to combat poverty and its effects, government funding is becoming increasingly unreliable. With the national debt over $22 trillion and climbing, the federal government is contemplating cutbacks. Already, some state governments have been cutting back funding to charities.

Here are five tips that poverty-fighting charities are embracing that all charities would be wise to also adopt:

read more »

January 24, 2019

Here are Some Things You Need to Know

Now that the 2018 year-end fundraising season has closed and you’ve had a moment to catch your breath, I want to share some things with you that you might have missed.

To begin, here is a list of my top ten most read posts published last year:

  1. How Bad is the New Tax Code for Your Charity?
  2. It’s Time to Stop Whining about Donor-Advised Funds!
  3. 9 Hard Truths Every Fundraiser Needs to Face in the 21st Century
  4. New Charitable Gift Annuity Rates Announced
  5. Jerold Panas (1928-2018), He Will Be Missed
  6. Setting the Record Straight about Jimmy LaRose
  7. Will One Charity’s Surprising Year-End Email Make You Look Bad?
  8. The Dark Side of the Fundraising Profession
  9. How to Get Last Year’s Donors to Give More this Year
  10. Avoid the 7 Deadly Sins When Working with Volunteers

Here’s a list of just five of my older posts that remained popular in 2018:

  1. Can a Nonprofit Return a Donor’s Gift?
  2. Can You Spot a Child Molester? Discover the Warning Signs
  3. Here is One Word You Should Stop Using
  4. 5 Things Never to Do in Your Phone Fundraising Calls
  5. Special Report: Top 40 Most Effective Fundraising Consultants Identified

I invite you to read any posts that might interest you by clicking on the title above. If you’ve read them all, thank you for being a committed reader.

Over the years, I’ve been honored to have my blog recognized by respected peers. I’m pleased that, among the thousands of nonprofit and fundraising sites, my blog continues to be ranked as a “Top 75 Fundraising Blog” and as a “Top Fundraising Blog – 2019.”

To make sure you don’t miss any of my future posts, please take a moment to subscribe to this site for free in the designated spot in the column to the right. You can subscribe with peace of mind knowing that I will respect your privacy. As a special bonus for you as a new subscriber, I’ll send you a link to a free e-book from philanthropy researcher Russell James, JD, PhD, CFP®.

In 2018, I was pleased to have two of my articles published in Advancing Philanthropy, the official magazine of the Association of Fundraising Professionals:

read more »

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.

read more »

October 12, 2018

As Giving Lags, Alarm Bells Sound. Should You Worry?

While the story at some individual charities might be different, charitable giving in the sector for the first half of 2018 is lagging behind the first six months of 2017, both in terms of the number of donors and the amount donated. That’s according to a recent report from the Fundraising Effectiveness Project.

As I write this post, the stock market has just taken a two-day beating with the Dow Jones Industrial Average down 1,378 points.

I won’t blame you if you’re feeling a bit pessimistic about philanthropy these days. However, I will respectfully suggest that you shouldn’t be overly worried. As I wrote in the current issue of Advancing Philanthropy, the official magazine of the Association of Fundraising Professionals, there are actually plenty of reasons for us to be optimistic about the current fundraising environment.

In my article for AFP, I show you how you can be your own fundraising superhero with six tips that will help you control your fundraising destiny. I also detail nine reasons for you to be upbeat about the current philanthropic environment as you seek year-end gifts. However, for now, I’ll just highlight some of the reasons why you should be upbeat about fundraising as year-end and the start of a new year approach:

1. Stock Market Growth. Despite the hit the stock market took this week, it remains above the 52-week level. An adjustment was expected. While volatile, the stock market is likely to stabilize somewhat and even continue to grow.

2. Dire Predictions Really Are Not that Dire. Some have predicted that the new federal tax code will negatively affect philanthropic giving. While it’s too soon to draw a firm conclusion, we do know that even if the worst-case prediction comes true, overall philanthropy will once again be approximately two percent of Gross Domestic Product, where it has been for decades.

3. Economic Growth. GDP growth for the first half of the year has been strong. If economic growth continues, as the Federal Reserve believes it will, this will likely have a positive effect on charitable giving. Remember, there’s a long correlation between philanthropy and GDP.

4. New Tax Code. For both individuals and corporations, a reduction in taxes makes more money available for charitable contributions. For example, many corporations (e.g., Wells Fargo, Southwest Airlines, JP Morgan Chase & Co., Best Buy, BB&T, Apple, Ally Financial, and others) have announced commitments to significantly increase corporate giving.

read more »

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.

read more »

August 24, 2018

What is the Most Important Thing You Can Learn from Recent Nonprofit Scandals?

Recent incidents at Michigan State University, The Ohio State University, Oxfam Great Britain, The Presidents Club Charitable Trust, Silicon Valley Community Foundation, and elsewhere remind us that the nonprofit sector is not immune to wrongdoing and scandal.

If you’ve never worked for a charity reeling from scandal, there’s a good chance you will one day. Even if you don’t work directly for a scandalized charity, you could still be affected by a loss of public trust if a similar nonprofit finds itself under the spotlight for misdeeds.

For those reasons, it is essential that you learn the most important thing about how to survive a scandal.

Three broad types of scandals can affect a nonprofit organization negatively:

1. Self-inflicted scandals beyond your control. Here’s an example of a situation that was beyond the control of fundraising staff. Oxfam Great Britain was banned from operating in Haiti and the organization’s country director was forced to resign following allegations of inappropriate sexual behavior. Four other employees were fired for “gross misconduct.” While the frontline fundraising staff was not at all involved in the scandal itself, they nevertheless had to deal with the aftermath.

2. Self-inflicted scandals you could have avoided. We saw this when the Ohio Attorney General’s Office accused the charity Cops for Kids of defrauding donors of $4.2 million. Of all the money it raised over a 10-year-period, the charity spent less than two percent on charitable programming. This scandal allegedly involved fundraising staff as well as senior staff engaging in fraudulent behavior. The solution to this type of scandal is simple: Do not misbehave. Obey the law and adhere to the Association of Fundraising Professionals Code of Ethical Standards, the International Statement of Ethical Principles in Fundraising, and/or your nation’s own fundraising code of ethics.

3. Guilt-by-similarity scandal. People in Scotland experienced this several years ago. A cancer charity was embroiled in a well-publicized scandal. As expected, that charity saw a sharp decline in contributions. However, there was also an unpleasant, broad side effect. Completely unaffiliated cancer charities in Scotland also experienced a deep drop in donations resulting from broad public mistrust of all cancer charities. It took the innocent charities nearly a year to recover even with a coordinated campaign to restore public confidence.

Other than avoiding problems in the first place, always a good idea, what can you and your organization do to ensure it can survive a crisis or scandal?

The answer is simple, though the execution is not: Build strong relationships with donors. It takes effort, financial resources, and time. However, it’s an investment well worth making.

Recently, a reporter for The Columbus Dispatch contacted me. Rob Oller sought my commentary about the scandal involving Urban Meyer, The Ohio State University football coach. You can read about the situation on your own since there’s no need for me to get into the details here. Suffice to say that the coach has received a three-game suspension, but not before Bob Evans Restaurants withdrew its corporate sponsorship of Ohio State football.

Oller asked me about how scandal affects charitable giving. I told him, “It depends on the institution and quality of the relationships with its donors over time. The stronger the relationships the more likely the institution is able to weather the controversy.”

read more »

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:

read more »

%d bloggers like this: