Posts tagged ‘Association of Fundraising Professionals’

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.

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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 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.”

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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 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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May 18, 2018

Thank You For Your Support!

With this post, I want to thank you and share some practical information about plagiarism.

Last week, I revealed how I was the victim of plagiarism. Someone lifted a portion of one of my recent blog posts, altered the intention of my words, and purposely misattributed them to someone else in an article he wrote attacking the Association of Fundraising Professionals.

Now, I would like to thank you and everyone who supported me with blog comments, tweets, emails, and phone calls. Professionally speaking, the support confirms that my confidence in our profession is well placed. Personally speaking, the support warmed my heart and let me know that I am not alone.

At times, such as in last week’s example, plagiarism is an intentional act. At other times, plagiarism is accidental.

When I spoke with a friend, a college faculty member and former fundraising professional, he confirmed that what I had experienced was clearly an act of plagiarism. He also told me about a website that provides the academic community with useful information for good people who want to better understand what plagiarism is and how to avoid it. The website Plagiarism.org says:

Plagiarism is a common (and often misunderstood) problem that is often the result of a lack of knowledge and skills.”

By creating a better understanding, the website seeks to reduce incidents of plagiarism in schools and throughout society. “What is Plagiarism?” an article at the website, tells us:

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May 9, 2018

Setting the Record Straight about Jimmy LaRose

Jimmy LaRose, founder of the Inside Charity website and co-founder of the National Association of Nonprofit Organizations & Executives, continues to be a controversial figure in the nonprofit sector. However, I have refrained from addressing his statements that trouble me.

Until now.

LaRose recently copied portions of one of my recent blog posts, altered their intention, and purposely misattributed them to someone else in an article he wrote attacking the Association of Fundraising Professionals.

When I confronted him with what he had done, he admitted to and defended his actions. Furthermore, he refused to apologize or delete the article at issue. In his last email to me, despite the fact that I never mentioned NANOE in my communications to him, he wrote, “NANOE’s Board of Directors has directed our staff to forward all your communications to counsel.” Do you think he might have sent me that message in an attempt to intimidate and silence me?

Well, you deserve the truth. Therefore, I will not be silent.

I published my blog post “Are Donors the Hidden Enemies of Charities?” on April 16, 2018. On May 6, 2018, the LaRose article “Is There a Secret Reason AFP (Association of Fundraising Professionals) Is Hating On Donors?” appeared at Inside Charity.

In my post, I reported on the findings of The Harris Poll survey report conducted for AFP and The Chronicle of Philanthropy. While I recognized that most donors are good people, I did point out that some donors do bad things. The Harris survey found that 25 percent of women and 7 percent of men, who are members of AFP and who were surveyed, report having been the victim of sexual harassment. In the cases cited, 65 percent of the perpetrators were donors.

In his article, LaRose attempted to discredit the survey report though he offered no evidence of his own.

Neither AFP nor I are demonizing all donors. We are simply giving voice to the survey respondents who have said that donors sexually harassed them. This is a real problem that some of our fellow fundraising professionals have faced. It’s something that we should not ignore.

Toward that end, I suggested some actions that individual nonprofit organizations should take:

1.  Have the organization’s board adopt a sexual harassment policy. If a policy already exists, it should be reviewed with an eye toward improving it. The policy should define sexual harassment (regardless of the source), map the reporting process, and explain the consequences of harassment. The policy should also make it clear that no donation is worth mental or physical harm to staff or volunteers; people should be clearly valued more than money.

2.  The senior management team or board of the organizations should set policies regarding meetings with prospects and donors. The policy should include answers to several questions including:

  • Where is it appropriate to meet with a prospect or donor?
  • When should more than one person from the organization meet with a prospect or donor at the same time?
  • When dining out with a prospect or donor, who should pick-up the check?
  • What prospect or donor behaviors should not be tolerated?
  • How should misbehavior be treated in the moment and following an incident?

3.  Procedures should be adopted for providing feedback to prospects or donors who misbehave so that they understand that their missteps are inappropriate and unacceptable.

4.  Staff and volunteers (including board members) should be provided with the policies and trained to ensure they understand all of the provisions of the policies

5.  As part of training, make all staff and volunteers aware of the problem. For example, share the Harris Polling report with them along with a printed copy of the organization’s sexual harassment policies.

6.  Re-assure staff and volunteers that they will be fully supported, and that they will not be penalized or lose their jobs for filing a legitimate complaint.

In LaRose’s article, he lifted the questions I asked in item two above. He then mislead his readers when he introduced the questions by writing, “In response to The Chronicle of Philanthropy’s ‘poll’ AFP’s IDEA Committee (Inclusion, Diversity, Equity and Access) has just announced another set of provisions they’re going to burden you with after they determine the proper answers to the following questions.”

To the best of my knowledge, the AFP IDEA Committee has not adopted my questions to guide its discussions. The questions I posed were clearly mine and mine alone. As I stated in my post, the questions are just some that should be addressed as nonprofit organizations discuss their own policies and procedures. I did not ask AFP to impose such a requirement on nonprofit organizations. It would have been foolish to do so because AFP has no mechanism for such an imposition even if it wanted to issue such a mandate.

By twisting the intent of my words and by providing incorrect attribution, LaRose has erected a straw-man.

LaRose writes:

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May 4, 2018

The Dark Side of the Fundraising Profession

People join the fundraising profession because they are good folks who want to do good. They want to make the world a better place. That’s why I entered the profession. It’s probably why you did, also. Unfortunately, not all fundraisers are good people. Unfortunately, even good people occasionally do bad things.

Our professional organizations have created ethical codes and standards of professional practice to guide our behavior and to help earn public trust. We even have mechanisms to hold fundraising professionals accountable to those standards.

Now, a local organization has attracted national attention, but not in a good way. It’s a story that tests the integrity of the Association of Fundraising Professionals, CFRE International, and the entire fundraising profession. It’s a story that will ultimately reveal whether or not we are willing to hold fundraisers accountable. It’s a test of whether our ethics codes and professional standards are merely nice words on paper or whether they truly help define fundraising as a profession.

The story I am referring to involves the Silicon Valley Community Foundation. I won’t repeat the entire story here. The Chronicle of Philanthropy has already done some excellent reporting on the matter, and I’ll provide links at the end. For now, I’ll just take a moment to summarize the reports.

Former employees of the Foundation “accuse Mari Ellen Loijens, the Foundation’s top fundraiser, of engaging in emotionally abusive and sexually inappropriate behavior.” The Chronicle further states:

The Chronicle article, based on several months of interviews with 19 former employees, raised questions about the leadership of Loijens, who oversaw fundraising at the community foundation. While many say she deserves credit for helping raise significant sums at Silicon Valley — which at $13.5 billion in assets is larger than Ford or Rockefeller — former employees said she demeaned and bullied her staff, made lewd comments in the workplace, and on at least one occasion sought to kiss a woman working for her.”

Two days before The Chronicle published its findings, Emmett Carson, Chief Executive Officer of the Foundation, announced that an internal investigation of the allegations is being “conducted by Sarah Hall, a Washington, DC, based senior counsel at Thompson Hine and a former federal prosecutor.” According to The Chronicle, “The Foundation said in a statement that the ‘investigation into alleged incidents of misconduct will continue, and at the conclusion of that investigation SVCF will take whatever action is necessary to preserve the integrity of our organization.’”

On April 19, 2018, a day after The Chronicle published its report, the Foundation confirmed that Loijens had resigned.

On April 26, 2018, The Chronicle reported that the Foundation’s Board placed Carson on indefinite, paid administrative leave. Greg Avis, a founding Board member and former Board Chair, has been appointed interim CEO. The investigation continues and has been expanded.

On May 2, 2018, Silicon Valley Business Journal reported that Daiva Natochy, the Foundation’s Vice President for Talent, Recruitment and Culture, has resigned.

The Silicon Valley Community Foundation has many issues. The allegations of bullying and sexual harassment leveled against Loijens are just part of the problem. However, Loijens alleged behavior is not just a problem for the Foundation; it is a challenge for the fundraising profession as well.

Loijens behavior, if true, could be construed as a violation of the AFP Code of Ethical Standards. Specifically, Loijens alleged behavior appears to be in conflict with the following provisions, at a minimum:

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April 16, 2018

Are Donors the Hidden Enemies of Charities?

Donors are not usually the enemies of nonprofit organizations. Instead, they are the friends who provide much needed resources allowing charities to save lives and enhance the quality of those lives.

However, some donors at some times do become the enemy of the good. They behave in ways that humiliate and, at times, even endanger those with less power. That’s one of the disturbing findings of a new survey report sponsored by the Association of Fundraising Professionals and The Chronicle of Philanthropy and produced by Harris Polling.

Among nonprofit professionals surveyed, 25 percent of women and 7 percent of men say they have been sexually harassed. Of the harassment incidents cited, 65 percent of the perpetrators were donors with the balance being colleagues, work supervisors, and organization executives. Harassers are most often men (96 percent). The median number of sexual harassment occurrences personally experienced by survey respondents is three (which is why some of the statistics in the report add up the way they do).

“Harassment is always about power, so the results here might indicate that the real power in these organizations rests with the donors,” Jerry Carbo, a professor at Shippensburg University who served on a federal committee studying harassment in the workplace in 2015 and 2016, told The Chronicle. “I would normally expect to see a much higher response rate for supervisors.”

The most common types of sexual harassment experienced in the fundraising profession include: inappropriate comments of a sexual nature (80 percent), unwelcome sexual advances and requests for sexual favors (62 percent), and unwanted touching or physical contact (55 percent).

Mike Geiger, MBA, CPA, President and CEO of AFP, commented on the alarming findings:

The number of cases involving donors is eye-opening and points to a unique and very troubling situation within the profession. As we look at how to proceed with the data from the survey and begin developing anti-harassment education and training for fundraisers and others in the charitable sector, we will have a special focus on the all-important donor-fundraiser relationship. We know most donors have only the best interest of the cause at heart, but our message will be clear: no donation and no donor is worth taking away an individual’s respect and self-worth and turning a blind eye to harassment.”

Sadly, many nonprofit organizations fail to take appropriate action when they receive reports of sexual harassment, regardless of whether the perpetrators were donors or fellow staff. Consider the following:

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April 13, 2018

Why are Fundraising Results Missing the Mark?

The nonprofit sector has an unfortunate secret. While not a well-kept secret, it is nevertheless something that receives too little attention. So, let’s take a moment to shine a spotlight on the issue.

Overall, American philanthropy has remained at approximately two percent of Gross Domestic Product for over six decades, with the percentage bouncing between 1.6 and 2.3 percent, according to Giving USA. Every year when the amount of money donated to charities goes up, the nonprofit sector pats itself on the back even though it is merely keeping pace with GDP.

Despite the massive growth in the number of nonprofit organizations, the significant increase in availability of educational materials, the production of helpful research, the professionalization of the fundraising field, and the rise of new technologies, the nonprofit sector has failed to budge philanthropy relative to GDP.

Now, as a committee convened by The Giving Institute begins to consider ways to grow philanthropy beyond the two-percent-of-GDP mark, I’ve written an article for the Association of Fundraising Professionals magazine, Advancing Philanthropy, that explores the challenge: “What Will It Take to Dramatically Increase Philanthropy?”

To answer that question, we need to understand how and why past attempts to do so have come up short, such as the insightful work of the Commission on Private Philanthropy and Public Needs in the 1970s.

We also need to understand the broad societal cultural factors that are affecting philanthropy so that we can develop strategies for inspiring cultural change and/or adapt to factors beyond our control (e.g., decline in religious affiliation, erosion of social capital, drop in volunteerism, etc.). Furthermore, we need to understand the cultural issues within the nonprofit sector that block change and, ultimately, greater success.

We also must set a realistic, consensus goal for moving the philanthropic needle. While that goal should be bold, it should also be based on something other than a dream. A credible target mark will give us all something to shoot for.

As Henry David Thoreau once wrote:

In the long-run, [people] hit only what they aim at.”

While it will likely take at least a couple of years for The Giving Institute’s commission to do its work, you and I do not need to wait. There are things we can do now to begin to move closer to a more vital philanthropic mark, something greater than two percent of GDP:

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