Values and Vision: The Foundation of High Performing Teams

A few days ago, I wrote about Tribal Leadership and what the authors’ research revealed about high performing teams.  Today I want to address two fundamental characteristics of any high performing team:  core values and a compelling vision.

The defining characteristic of the highest performing teams is that their foremost concern is to achieve a noble cause.  This laser focus enables them to make extraordinary breakthroughs and achieve unmatched results.  One of the most compelling points made by the authors is that these teams have a crystal clear grasp of what they stand for and what they live for.   

Core Values:  What does your team stand for?

When high performing teams articulate their core values, they are not describing a set of tenets or a creed to which they ascribe.  Rather, they are describing what they are, what they embody, what they deliver.  High performing teams live their values—through their relationships, through their programs, and through their communications.  Though there are many examples, for the sake of space, let me point out two:  KID (Ft. Lauderdale) and Miami Rescue Mission.  Through a series of thoughtful discussions these teams arrived at very meaningful core values.

For KID, they are Trust, Family, Compassion, Safety, Wisdom, and Tenacity. To get a sense of what this means to them, just look at their annual report.  It’s the best I’ve seen.  For Miami Rescue Mission, they are Compassion, Hope, Restoration, and Transformation.  In July, the Mission will celebrate the culmination of a year long process of exploring the meaning of these values with everyone throughout the organization.  The values of these two organizations permeate in all that they do-- their programs and activities, their policies, how they relate to  those in need and to one another, how they talk about what they do, and how they plan for the future.  This conscious attention to values is having a powerful effect throughout each organization.

Vision:  What does your team live for?

How teams view their cause is seen through their vision.  The vision of high performing teams is literally what they live for, what they aspire to bring about in the world.  For these teams, vision is not an exercise of self affirmation, or how they can be the best.  It is a statement of how the world will be different—transformed—for those they serve because of the work they do.  This type of vision imagines a perfected future.  It is believing in something that does not yet exist—but should.  These teams have visions that stir passions and inspire people to act.  

Some examples of compelling vision statements include:  "Every child is born perfectly healthy." (March of Dimes);  "No one is homeless." (Miami Rescue Mission); “A Community of Safe and Healthy Children in Loving Families” (KID) and "A Montana where communities thrive in co-existence with abundant wild places." (Montana Wilderness Association).

These vision statements are not Pollyanna notions.  They have been created by a team of individuals who live for their realization.  Though their visions may not be achieved in their lifetimes, these teams are inspired to give their highest and best—and to celebrate each and every accomplishment along the way.

Being part of a team devoted to a cause allows one to leap beyond personal limitations; to be part of something very significant.  But, it takes shedding the need for individualistic self-preservation—which allows a realization that through such a process your gifts are magnified.  And, you discover, you don’t lose anything—you become more, not less.

Jim

Are You Looking in the Mirror or Out the Window?

Many of you have probably heard me rave about a recently published book, Tribal Leadership, by Dave Logan, John King, and Halee Fischer-Wright.  In a rigorous eight-year study of about 24,000 people in more than two dozen companies, the authors found that the success of companies depends on the effectiveness of its team's tribal culture.  While many companies had adequate teams, only about 25% broke through to be outstanding--like the Apple team that developed the iPod.

The authors found that organizational cultures evolve  through stages, and that each stage grows out of the previous.

1. The lowest stage identified by the authors is composed of people who are alienated and express their behavior through despairing hostility.  Fortunately, only two percent of tribes are stage one, and they are likely not to last--due to embezzlement, theft, cheating, etc.
2. Stage two tribes, 25% of  all workplace tribes, are not really teams.  They are what I call the Dilbert crowd, passively antagonistic people who believe "my life sucks" and are neither interested nor prepared to do anything about it.  
3. Half of all workplace cultures are stage three--with good reason because we train stage three cultures from kindergarten through graduate school.  Stage three is comprised of individuals competing to be the best.  Winning is personal, knowledge is power, and the winner gets promoted.  Trust is not a premium.  Synergy is not in the vocabulary.  
4. Stage four is where it gets interesting. Stage four, 22% of all tribes, is arrived at when individuals have an epiphany:  "Together we can be greater than our individual strengths...  and my value is not diminished through collaborating openly."  This team develops tribal pride.  These tribes still need an adversary--another tribe, another organization, etc. to compete against, but they commit to shared core values and hold one another accountable.  Thus, they perform well above the individualists of stage three.
5. Stage five comprises 2 percent of the workplace culture.  Stage five tribes no longer concern themselves with competition with others, but with serving a noble cause and having  impact.  The authors describe this tribe's mood as innocent wonderment.  "This stage is pure leadership, vision, and inspiration.  Life is great."  These are the teams that change the world.

Tribes one through three (and to a some extent, tribe level four), look in the mirror more than out the window--where members are more concerned with how they are surviving, achieving, or performing as compared to others.  And many nonprofits--whose missions speak to a tribe at level five--are often entangled in level three and four habits.  We see evidence of this in many ways--hero leaders, lack of integration among departments (or within departments), vision statements that speak about being the best rather than impacting the lives of those the organization serves, and competition between nonprofits serving a similar cause.

It takes courage, insight, discipline (and an epiphany) to develop a level five tribe--a team capable of collaborating across organizational boundaries for a greater good.  But the payoffs are huge.   Tribes that achieve level five are made up of people who aspire to a noble cause and share core values.  The authors recommend that leaders who want to develop level five tribes need start with defining what the tribe stands for (core values) and lives for (the cause).  Then they need to provide leadership to help the tribe determine:  What they want (outcomes).  What they have (assets).  What they will do (behaviors).

As the authors of Tribal Leadership note, the level of the tribe can be diagnosed from the language tribe members use.  To achieve level five, tribes need to replace their mirror with a window.  They need to relinquish their focus on shortcomings, self concern, preservation of the status quo, and posturing in exchange for a focus on the possibilities, on securing a greater good for the people they serve. When achieved, level five tribes have extraordinary power because of their ability to connect to others who care deeply.  As the authors describe, level five tribes "form ever growing networks with anyone whose values resonate with their own."

May we all discover our noble cause.

Jim

Make Someone Happy--Ask for a Gift

According to the BoardSource Nonprofit Governance Index 2010, boards across the country gave themselves a “D” in board fundraising, the lowest grade of any other area of board performance. Not all boards fundraise, but of the 79 percent that do, BoardSource asked: What do you find so uncomfortable about it?

• 14 percent were uncomfortable writing or signing personal letters
• 21 percent were uncomfortable with providing names for letters and calls
• 24 percent with meeting potential donors face-to-face
• 40 percent with calling potential donors
• 44 percent with asking for money directly

 

As someone who serves on boards and has been working with them for years, I’m inclined to think that the real percentages are even higher. The discomfort people feel can be traced to what motivates them to serve on boards. Common reasons for serving on boards are: it’s a nice thing to do, or I like the organization, or it’s an obligation to the community, or a friend asked me, or it is a good place to network, or it’s a good experience to have, or I just want to help out.

 

All of those reasons are good starting places. But, board members have to discover their passion for the cause.

 

When working with boards around the topic of fundraising, I make the distinction between sales/motivation and inspiration. Many of us are stuck in the sales mentality, the “give and get” mentality where we have to meet our goals. Motivation has a short shelf life and it constantly needs to be fed. It requires an external power source—crisis, reward, expectation, threat, peer pressure… Inspiration is self-renewing, it flows from our hearts, from our passion.

 

When we make the emotional connection to the cause our nonprofit serves, when we get out of our heads and into our hearts, when we immerse and invest ourselves in making a difference for that cause; when we discover the connection between what we value and how it is realized through the nonprofit… then the resistance to fundraising dissolves. Because it is no longer fundraising, it is telling the story of how we can make an important difference in the world. It’s energizing.

 

Some board members need a guiding hand. Helping board members get inspired is a primary responsibility of the board chair—in collaboration with the chief executive and the director of development. Most volunteers are busy people. So when the organization has their attention, it shouldn’t miss the opportunity to sharpen their focus on the cause and to remind them about the great things that the nonprofit does in the world. Mission moments, heart-warming stories, successes, meaningful experiences with those who benefit… all of these help. Then give board members an opportunity to tell their stories—why they are involved, what it means to them, how it connects to what is important to them. With a little coaching we can all find the spark that kindles our passion. But, then get ready, passionate board members want to make a difference in the world.

 

Coming back to where I started, connecting with potential donors is all about offering them an experience that will bring greater joy to their lives. It really is a fact. Research just published in The Science of Giving(D. Oppenheimer and C Olivola) found that giving makes people happy. So, let’s go out and tell our stories about how we are making a difference in the world. And tell others how they can do the same. Let’s make a whole lot of people happier.

  

Happily,

  

Jim

Friendraising Leads to Fundraising

My friend and colleague, Les Weil, related this oft-told story the other evening at a fundraising workshop:

The Solicitation

A local nonprofit organization realized that it had never received a gift from one of the city’s most successful businessmen.  So the executive director called upon him, hoping to secure a very nice donation.  "Our research shows that out of a yearly income of at least $500,000, you have not given one dollar to any nonprofit organization.  Wouldn't you like to give back to the community in some way?"

The businessman replied: “First, did your research also show that my mother is dying after a long illness and has medical bills that are several times her annual income?”

Uncomfortable, the director mumbled “Um… no."

“Or that my brother, a disabled veteran, is blind and confined to wheelchair?” The embarrassed director began to stammer out an apology, but was interrupted.

“Or that my sister's husband died in a car accident,” the businessman's voice rising in indignation, "leaving her penniless with three children?”

The humiliated director simply said, “I had no idea.”

"So if I don't give any money to them, why in the world would I give any to you?”

There are a few lessons that can be teased out of this story.  The first is, when we do our research we really need to do our research.  Whenever possible, talk to people who know your prospect.

Second, not everyone is charitable, so don’t waste your time seeking a gift from those who are not. 

Third, just because someone is wealthy doesn’t mean they are going to make a gift to your nonprofit.  I’ve seen many boards operate under this misguided notion:  “There are a lot of wealthy people in our community, so if we just hire a fundraising professional we’ll be in good shape.”  Most people give to causes that are important to them through organizations that they trust.  Building relationships, articulating a solid value proposition, and a telling good stories about your work are the foundation of fundraising. 

It is often said that if we ask people for money, they will give us advice.  If we ask them for advice, they will give us money.  This adage is backed up by recent research that shows that if we ask people to spend time with us they will give more than if we ask them to give us money.  Some of you have heard me tell my story of being recruited to a board.  It was a very thoughtful process.  By the time I was asked to serve, I’d had breakfast with the CEO and Board Chair, had spent a Saturday on a tour of their programs and facilities, attended a dedication for a large in-kind gift, and participated in an awards ceremony.  The annual gift I had in mind at the end of that experience was far larger than the one I had in mind early on.  I was moved and impressed by their value proposition, their stories, and the dedication of the staff an volunteers.

As those of you who have been in the field for awhile know, fundraising is the responsibility of everyone—staff, board, volunteers.  Everyone needs to be listening and responding to the people who come through the doors, call on the phone, or connect through the web.  We need to be listening to what they care about, why they showed up—what they value…  Then we can make the link between what they love and what we do.

We need to always be building our band of believers.

Jim

Don't Bore Your Readers

Take a look at this article from TIME:  Using Business Savvy to Help Good Causes.  It makes the case for nonprofits to use direct mail as a sound business strategy. Worth the read.

In your direct mail, though, remember the cardinal rule:  Don’t bore your reader!  According to Pew’s research you have only seconds to grab your reader’s attention and to make your case.  Don’t make the mistake I made early in my career:  grammatical standards and language uses that were too precise and correct—and really boring.  Hey, I wanted to look smart.  That’s well and fine.  But, don’t waste money on  a fundraising letter to demonstrate it. 

Use direct, colloquial language.  Be interesting.  Be compelling.  Make your point early and use snippets of stories and quotes to bring it home. 

(Earlier in my career I would have written my last sentence as follows:  “Demonstrate  your compelling and inspirational value proposition in the first or second paragraph to communicate your investment worth to your reader.”  So, tell me, which sentence did you understand more quickly…)

The bottom line:  connect to your reader.  Hold a donor in your mind and write to that person.  As Jennifer Aaker, professor of marketing at Stanford Graduate School of Business discovered:  The trick is to be seen as both warm and competent.  So, as a reader, don’t cool my affection with studied rhetoric.  Tell me a great story.

Cheers,

Jim

Authentic Story Telling Rooted in Core Values Makes a Terrific Annual Report

Trust. Family. Compassion. Safety. Wisdom. Tenacity.

Click this link to read one of the best annual reports I’ve ever seen.  Let me tell you why.

When working with nonprofits to identify their core values, I often begin with examples of value sets of actual organizations and ask those in the room to identify the type organization they describe.  Through such an exercise nonprofit leaders begin to understand why articulating your core identity—your core values—is an important exercise.  Core values are the rich soil into which you sink your roots and they are evident in everything you do.  They serve as both a foundation and a compass for good decision making.

If I were to tell you that the values listed above are from an organization that works with children from distressed families, you wouldn’t be surprised.  The board and staff of KID spent several months last year working on a strategic plan.  They began with core values, digging deep into the heart of why they exist and what they deem nonnegotiable.  Once they defined their core values, they posted them around the board room throughout the strategic planning process.  Seeing them on the wall (along with the vision, mission, and brand position) during each planning session was a powerful reminder about what is most important.

Using these values as the basis for their annual report is powerful on its own.  But K.I.D. went a step further; by using compelling stories their work comes alive for the reader.  They turned what is often a dry document into a gripping, persuasive case.  The metrics describing their impact are still there in sidebars.  But, the way they masterfully put this report together, leaves the reader feeling both emotionally and intellectually engaged—and I think, deeply appreciative of the work they do.

Follow their lead on this annual report and you won’t go wrong.

Jim

Why the Attorney General Gets Involved with Nonprofits

Bob Carlson, assistant attorney general in Missouri where he coordinates nonprofit and charity law issues, penned a terrific article in the Chronicle of Philanthropy. The article, titled Why State Officials Step In to Clean House at Nonprofits, provides case examples of why his job is necessary. And he gives some really practical advice on good governance. He summarizes the article with:

“To avoid these meetings [with charity regulators] (and the possible consequences), nonprofit board members and executives must abide by the easy-to-articulate but occasionally hard-to-follow principles of fiduciary duty: Make sure your nonprofit is doing what it is supposed to do, and always make sure you have enough information to guarantee that. Always ask questions, demand answers, and never stop pushing your organization to excellence. Otherwise, you may get to meet with us.”

Jim

Strong Governance

Evocative article today in the Chronicle of Philanthropy by Michael Peregrine on strong board leadership.  Click here for  the link, though you might have to create a login to read.

His key points:

1.       Focus on the long view – Financial pressures of the day can steal your vision.

2.       Pay attention to those who do what you do, i.e. competitors/collaborators.  Though his advice here is a bit “lawyerly” and focused on protecting your assets and interests, I take a broader view.  We need to also look for ways to collaborate to effectively deliver programs to a shared constituency.  I don’t believe we should strike a posture that is too defensive.

3.       Keep an eye on the risks… anticipate, think pro-actively.

4.       Avoid conflict of interest.

5.       Consider term limits.  This does not mean that someone who cycles off as a voting member cannot remain involved in a substantive fashion.

6.       Scrutinize compensation.  Though his advice here is to avoid excessive compensation—particularly in light of the new regs on disclosure of deferred compensation; I also think we need to provide adequate compensation.  I see that problem more often than excessive.

7.       Examine Fundraising.  Board members should be engaged.

8.       Make sure audit committee is doing its job.  Ask good questions.

9.       Quantify how much difference your organization makes.  Mr. Peregrine addresses this from the point of view of protecting the sector from government and public scrutiny.  But, it is also just good sense fundraising.  Being able to articulate the difference that gifts make and communicating gift impact is the rule of the new Millenium.  Donors must know how their gifts make a measurable (or palpable) difference.

Good food for thought.

Best,

Jim

Three Studies on Wealth and Giving

The Community Foundation of Sarasota has a wonderful blog called The Non Prophet. They asked me to write on wealth and giving trends. If you are interested, you’ll find it posted here.

Happy Thanksgiving. Have a wonderful holiday!

Jim

Event Planning for the Next Generation

Thanks to Andria Nolan at Henderson Mental Health Center for passing on a great resource for event planning for the post baby boomer generation.  It’s the 2010 Charity Event Market Research Report.  To obtain a copy, click here.  It was produced by CharityHappenings.org, which describes itself as “the online social hub for the country’s powerful community of young and influential philanthropists.”  The report is a national survey of which “an overwhelming number of responses (91.7%) came from event goers age 50 and under.”

So, if this demographic is your target, here are some of their findings: 

• Women play a more dominant role in planning and participating in events than their male counterparts. (Not that that is surprising; but they advise something simple that we may overlook:  market to your community, the women. They bring the men.)
• Best time for an event is Thursday evening, between 7 and 10 PM.
• Most event sales occur within two weeks of the event.
• Personal connection to the cause is the key driver of attendance.
• Most participants want to see over 50% of proceeds going to the cause.

There’s lots more interesting stuff in the report.

Enjoy,

Jim

Improving Your Fundraising Appeal

Katya’s Non-Profit Marketing Blog is a reliable source for good marketing and communications ideas.  Her advice on unblocking your brain for writing an appeal is terrific.  I especially like the idea of asking your kids… Here it is.

Four creative exercises to improve that dull fundraising appeal

Are you having a creative block in writing your year-end appeal?

I thought so.  That’s why you’re reading this blog post instead of writing the appeal!

Here are some tips for unleashing your creativity.

1.) Call one of your biggest fans or largest donors and ask them why they support your cause. Ask them to describe what you do and why it matters.  Invite them to tell a story.  Use their words in your appeal.

2.) Ask someone who benefitted from your programs to write the appeal based on what your cause means to them.

3.) Ask your child or a friend’s child how they would describe what you do.  It’s often wildly creative, if not accurate.  But it will get you thinking.

4.) Make a collage of some pictures that speak 1,000 words about your work.  Describe what you see from an emotional place - rather than simply writing about what you do.

5.) Don’t worry about writing a good appeal.  Try writing a great story.  The money will follow.

Good luck!

Jim

The 2010 Study of High Net Worth Philanthropy, funded by Bank of America and Merrill Lynch and researched by the Center on Philanthropy affirms a lot about what we already know; but adds a few interesting new tidbits.  You can find the entire 75-page study here.

Key Findings Regarding Giving High Net Worth Individuals:

·         Despite economic downturn, high net worth individuals remain committed to charity.

·         Most have some or a great deal of confidence in nonprofit organizations to solve problems.

·         The average gift dropped significantly, with healthcare taking the biggest hit.

·         Most important considerations that motivate giving:

o   They believe their gift will make a difference (72%).

o   They feel financially secure (71%).

o   The organization is efficient in its use of their gifts (71%).

o   Percent going to program v. admin (54%).

o   Communication about impact of gift (34%).

·         They expect professional competence:

o   Sound business and operational practices (86.9 %)

o   Acknowledgement of contributions (including receipts) (84.9 %)

o   Spend appropriate amount on overhead (80.1%)

o   Protection of personal information (80.1%)

o   Full financial disclosure (61.7%)

·         In response to need in last two years, more gave to basic need and operations.

·         Use of private foundations or trusts increased by 21%

·         More are volunteering.

·         A majority use advisors in their philanthropic decisions.

·         Most confer with their spouses/partners.

·         The top 3 reasons they stop giving:

o   Too frequent solicitation or inappropriate amount (59%).

o   Another cause captured their interest (34%).

o   Household circumstances changed (29%).

·         Effect of tax policy on giving:

o   67% would decrease their charitable contributions if there were zero income tax. (Compared to 47% in 2007).

o   43% would increase the amount they leave to charity if the estate tax were repealed. (Compared to 36% in 2007).

The good news is that most believe nonprofits can get the job done.  Let’s make sure we live up to their confidence.

Jim

Coordinate and Integrate If You Want to Raise the Most Money

The synergistic link between direct mail and online giving is quite explicit.  Simply, when used in tandem, you are very likely to raise more money than if you don’t.  And in these challenging times... 

I recommend reading this Chronicle of Philanthropy Article (or the study results posted by Dunham + Company) on the research conducted by Campbell & Company (great research firm!).  Then take a look at the most recent data on online giving compiled by the Blackbaud Index of Online Giving.

It only makes sense to coordinate your resources.  Though integration requires a bit of strategy, it’s pretty simple to do—we just have to think about it and coordinate.  At the risk of sounding too simple, here are some of the fundamentals:  1. Use an annual giving theme that is carried through your newsletters, website, email, and letters (and facebook and Twitter, if you have the capacity). 2.  Use stories that appeal to the heart and facts on impact to appeal to the mind.  3.  Time your communications—coordinate messages.  4.  Make giving easy—especially on your webpage!  5.  Use hyper links and give people the specific web address to make a gift.

Wish you the best of success this year.

Jim

Volunteers' Role in Fundraising

Gift giving is about taking the opportunity to make a difference… for a cause you care about… through an organization you trust. 

Most of us want to do that. 

But, oftentimes, we confuse fundraising with an onerous, unpleasant task of asking people for something they don’t want to do, or feel obliged to do.  No one wants that job!  And, in truth, it’s not even close to what volunteer leaders should be doing. 

The most important responsibility of volunteers is to build trust and deepen relationships.  In practical terms, this means (1) identifying people who likely care about the cause you care about, (2) introducing them to find out if they do, (3) talking to them about your passion so they understand it, and (4) seeing if it fits with their interests.  When they say yes, you have opened the door to inspiring conversations about what your cause hopes to achieve (its vision), what it’s doing about it (its mission), and the successes it has already achieved. 

Then—after the trust is built and the passion is shared—comes the discussion of what we need to do and the resources we need to do it.  When someone stops saying “you” and “your” cause and begins saying “we” and “our” cause, you know they are ready for that conversation.  And then the real excitement begins.

Jim

Social Media--what's it worth?

Measuring the value of social media can get complicated because you can measure a lot of stuff.   And a lot of that stuff isn’t worth knowing—it only matters if you can show a productive impact on desired outcomes.

One of the most popular tools used in social media today is to poll people’s opinions.  But according to KD Paine, publisher of The Measurement Standard, whose company provides measurement and accountability for corporations and nonprofits internationally,  there is little evidence that surveying sentiment is connected to outcomes.  “In reality, conversations aren’t necessarily positive or negative,” she noted in a recent interview.  She went on to say that content analysis research shows results that are very predictable: “20% are positive, 5% are negative, and the vast majority are either neutral or balanced.” 

Because it is so easy to employ, relatively inexpensive to use, and provides access to millions of people, social media is a valuable tool.  But nonprofit managers need to carefully research, identify, and define the value they are seeking from it; and use the tools that work.  Because we can tweet, type, and text till our fingers are blue and not raise a dollar.

Start by defining what you want.  Is it financial contributions? Volunteers to help with programs?  Advocates for an issue?  Then define your target(s) and desired outcomes specifically.  What does success looks like in measurable terms?

Social media is seductive because it seems so easy to get broad exposure.  But, it is important to recognize that exposure is not awareness; and even awareness is not commitment.

Social media can work for us but we have to be smart about it.

As KD Paine said at the end of her interview: “all the research points to the fact that what really matters is relationships.”  And that’s coming  from a numbers person!

Your Brand is What You Do

Last fall, the Agitator gave a big thumbs up to Aline Reed’s opinion piece posted on SOFII: “What kind of advert would your supporters make for you?”   I agree.  This is an insightful piece on the impact of social media on our brand and our public appeals.  She uses terrific examples such as this one from Alexis Ohanian: “How to make a splash in social media” that tracks the very successful out-of-their-control campaign of Greenpeace.  In making her point she quotes blogger Jeff Brooks: “Your look is not your brand. What you do and who you are is your brand.”


When you lose touch with your donors view of your cause, you lose their support.  You should be a conversation.  Especially today when, through social media, they have more control of messaging than we imagined just a few years ago.   But, there is a tremendous upside to all of this:  it provides extraordinarily low cost ways to engage our donors and cultivate deeper, more loyal relationships. 


I encourage you to click on the link above and take a look at what Ms. Reed has to say. 


Jim

Make Your Case

As you implement your fundraising program this year, make sure your case for support is clear, crisp, and compelling.  Use stories prominently.   To quote Hank Russo:  “The case tells the story. It reaches beyond the organization to where constituents live. Its purpose is to inform, inspire, excite, uplift and motivate the reader.”

But great stories are only half the equation.  You also must talk about your value proposition and the impact you are having in words that are practical and pragmatic.  John Templeton once said, “If your charity isn’t raising money, it probably isn’t doing anything worthwhile.”  Although there is truth in that statement, sometimes we fall short not in what we are doing, but in our ability to communicate it from our donor’s point of view.  To paraphrase my good friend and branding expert, Jim Paglia, “You don’t own your brand, your customers do.  Customers become loyal when they can  say “I see me!”

Have you listened to  your donors lately?  Do you know how they view your programs?  Your mission?  Your vision?  There’s still time to ask your donors before they are on the receiving end of the fall fundraising deluge.  Will your appeal catch their attention and speak to their desires, beliefs, and values?  Those that do will be the winners.

Writing Appeal Letters

Thanks to the Agitator  and SOFII for bringing attention to this article from Jerry Huntsinger.  It has terrific, practical advice.

http://www.sofii.org/node/542?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=388628&utm_campaign=0

Charitable Giving v. Charitable Receiving

We need to begin to discriminate between charitable giving and charitable receiving. Charitable giving research is research regarding  actual donor giving or the econometric models like Giving USA and Boston College Center on Wealth and Philanthropy. Many other models are charitable receiving: counting or estimating $ received by a pool of nonprofits. With the growth in nonprofits outstripping the growth in philanthropy in the last several years (growth in 1023 nonprofits has grown 16.4% in the last 3 years) the terms now have quite divergent meaning.  Mission competition is a reality. Even if giving has generally grown, $ per nonprofit has shrunk. Nonprofit managers need to understand both—and the implications for crafting and delivering a compelling value proposition.

Jim

Recipe for Innovative Thinking

Recipe for Innovative Thinking:

•      Take an inquisitive development officer.

•      Combine with a self-assured, forward-thinking CEO.

•      Mix vigorously with generative thinking board members.

•      Place in a transparent, heat-resistant board room over medium heat until the passion rises to activate the ingredients.

•      Gradually increase the temperature.  (As the mixture heats, there is a tendency for the ingredients to separate.)

•      Constantly stir the mixture by exploring constituent needs, organizational expertise, successes to date, and resources.

•      As best ideas rise to the surface, skim them off and assign to a task group for immediate action.

•      Take the most appetizing and digestible morsels and serve to constituents while still hot. 

•      Discard if lukewarm or cold.

As nonprofits committed to serving the public good, we need to embrace constituent-focused innovation throughout our organizations in a disciplined fashion.  We need to challenge and test our assumptions and consistently ask ourselves: “Can we do this better?”

Jim Collins, in his book Good to Great, describes it well under “Building Greatness to Last:  Preserve the Core and Stimulate Progress.”  He advocates adherence to core values combined with a willingness to challenge and change everything except those core values—keeping clear the distinction between “what we stand for” (which should never change) and “how we do things” (which should never stop changing). Great organizations have a purpose and they translate this purpose into BHAGs (Big Hairy Audacious Goals) to stimulate progress.

It’s easier to read reports than question assumptions and challenge ideas.   But, with practice, we not only grow to appreciate the latter, we discover how it fuels innovation and effectiveness—and passion.

Competence, Character, and Connections: Nonprofit Governance Recruitment

The key to effective governance often turns on the simple, but often overlooked task of effective board recruitment.

Nonprofits need to approach board recruitment with the same rigor with which they approach hiring the CEO.  Rather than beginning the process with “Who do we know?” or “ What pro bono services do we need?,” boards should carefully consider two critical components:  (1) the ability to fulfill the fiduciary responsibilities combined with (2) the capacity to advance the institution to greater levels of effectiveness.  

I advise boards to think carefully about their current capacity and what they need in board members to take governance to the next level.   I urge them to develop a recruitment profile based upon three C’s:  character, competence, and connections.   

·         Character is important because board members are a very public face of the institution—bringing either burnish or tarnish.  Some considerations for character include:  Are they passionate for our cause?  Do they care deeply about our mission?  Are they honest and ethical?  Are they respected in the community?  Do they play well with others? 

·         Competence should not be confused with profession.  Competence includes such things as sound judgment, listening skills, ability to anticipate and understand implications of decisions, and “political” astuteness. 

·         Connections means more that “who you know.”  Connections means the ability and willingness to connect the institution to those it serves, to those who are influential or wealthy, and to those who can help the nonprofit better succeed at its mission and serve the community. 

Implicit in all of this is the need for diversity.  But, not diversity for its own sake—that’s just tokenism.  Diversity at its roots is the inclusion of different perspectives and life experiences—particularly as it reflects the diversity of the community we serve.  Embracing diversity means embracing differences.

To be effective, recruitment must be an ongoing process rather than a once-each-year rush to the finish line.  This takes time and forethought; but the results are worth the effort: highly capable governance that is able to move the institution forward strategically and creatively.

Jim

Mission Competition

There is absolutely no question that nonprofit mission competition is now a reality.  In crunching the numbers freshly released from Giving USA, a simple comparison between the growth of the nonprofit sector and the growth/contraction of giving in just the last four years tells a compelling story.  Though there is debate over the giving estimate for 2009, what has been left out of much of the discussion is the impact of the growth of the sector.  When the growth of the sector is simply compared to the growth of the population for the last 10 years, the number of prospects per nonprofit drops by over 15%.  Using Giving USA figures, when giving over the last four years is compared to the growth in nonprofit organizations, contributions per nonprofit has dropped by over 10%—increasing each successive year.

Competition does not only arise from within the sector, there is an increase in competition from the for-profit sector.  We have for-profit hospitals and institutions of higher education.  Google recently created a $1B seed fund to support social entrepreneurs.  And in May, McKinsey&Company released “Shaping the Future:  Solving Social Problems through Business Strategy:  Pathways to Sustainable Value Creation.”  The report concludes:  “Businesses are increasingly expected to address social and environmental issues...  In order to sustain value creation, businesses must be proactive on social issues...  Business has the power to shape the future and move us toward sustainable value creation.”  Are we ready for business to lead?  Are we ready to lead?  Are we even prepared to collaborate?

Add to this equation, the fact that donor expectations are changing.  Younger donors are surfing the web looking for value.  As for major gifts prospects, Berkeley economist Emmanuel Saez notes: “Top income earners today are the working rich, highly paid employees or new entrepreneurs who have not accumulated fortunes comparable to those who accumulated during the Gilded Age.”  This new type of donor expects value and impact.

Nonprofits that succeed in this new environment need to have trusted, recognized cause-brands; proven quality and impact; a strong band of believers; and nimbleness that allows them to respond to donors, trends, and the new marketplace within which we live.

Are we ready?

Telling Your Story

When fundraising guru Hank Russo wrote about the case for financial support he said: “Its purpose is to inform, inspire, excite, uplift and motivate the reader of the case to become involved with the cause as advocates, contributors, volunteers, and informed constituents.”

Last week was pretty busy for me, leading two workshops at the statewide Association of  Fundraising Professionals conference and three board retreats.  A common theme in each of those conversations is the need for us to compellingly tell our stories of why we believe in our cause.  This requires authenticity and passion—not something we can easily fake.  Do you know your story?  Have you stepped back to reflect deeply on why you love what you do.  The two links below provide very different approaches to storytelling, but I think both work. 

Enjoy.

Jim

http://www.nonprofitmarketingblog.com/site/great_storytelling_-_get_inspired_by..._google/

http://www.youtube.com/watch?v=NlYJQ0psZYA

James Mueller & Associates

James Mueller & Associates LLC is a national consulting firm serving clients from across the spectrum: education, environment, civic engagement, social service, healthcare, and business. Founder Jim Mueller has 35 years of experience in management, staffing, board development, and fundraising. Drawing upon his personal expertise, the experience of seasoned colleagues, and the resources of strategic alliances, his firm provides  services in the areas of organizational development, governance, and philanthropy. James Mueller & Associates helps clients organize and build strong teams, strengthen their boards, conduct strategic planning, structure their development programs, succeed in fundraising, understand their culture's decision-making style, manage their work flow, organize work deployment, construct work plans, conduct internal and external studies, and employ performance management tools. With every client, the team maintains a focus on achieving outcomes consistent with the organization's unique mission, values, and objectives.