by Meg Gammage – Tucker

Nonprofit professionals are regularly asked to justify the efficiency and effectiveness of their missions, programs, staff, and all other elements of their existence.   The reason—we live in an era of substantial competition for limited financial and human resources; under the light of growing public attention and scrutiny; and greater demands from donors for evidence of organizational impact and importance.

How can nonprofits deal with the growing demands of volunteers, audiences, clients, and donors who need more justification to invest in us and our missions and programs?  For the majority of the 1.6 million+ nonprofit institutions, the response has historically been to produce reports that generally outline the need for their “vital” services.  The organization then lists the number and amount of gifts received. 

It becomes somewhat circular as a justification process. 

Our clients and those who attend my classes often indicate that those reports are the extent of what they can generate given the substantial limitations on their time and staff resources.  Planning, modeling, evaluation, reports, impacts, outcomes—take too much time and they limit the energy available for running their organizations and developing and deepening donor relationships. 

It is not enough, however.   More justification and reports are necessary.  Why?  For the very reasons that you shy away from the concept:

• you have limited resources,
• your competition is growing, and
• you  have to justify our existence, let alone any possibility of growth or greater impact or influence. 

In other words, you simply need to work smarter, be better, and share the results of your successes (and, sometimes, your challenges).

How can we do this?  Employ simple and effective models and metrics to:

• illustrate your effectiveness;
• gain the support and greater engagement of your volunteers and investors; and—certainly not last or least—
• justify your existence. 

They do not need to be elaborate, but they do need to be meaningful, reflective, informative, and useful.  Start simple and seek board input.  Once you engage that audience and answer their questions, you can offer larger audiences more insights into your nonprofit’s efficiency and effectiveness.

by Angela E. White

Do you have brown M & M’s in your office?

Apparently, when the rock band VanHalen toured in the 1980s, their contract contained Article126,  which read, “There will be no brown M&Ms in the backstage area, upon pain of forfeiture of the show, with full compensation.” 

Thus, when David Lee Roth got to the concert venue, he immediately checked the M & M bowl to see if it contained brown M & Ms.

This was not a power trip by Roth, but rather his check on details. If there were brown M & Ms in the bowl, then he would require that the concert operations plan be reviewed, line by line, so that he could ensure that no other details were overlooked.

This story was shared with me by Nicole Bickett, CEO of Vision Bridge (www.visionbridgeinc.com), an organization that works with companies to help them deal with the details and become more efficient.  I think it is also an excellent reminder of the importance of details in the work that we do in philanthropy. 

Think of the times that attention to the little details made all of the difference in building and strengthening relationships with those people who care about the mission of your organization.

So, I challenge you to think about the brown M & Ms and how attention to detail can strengthen your philanthropic work. And, by the way, I am eating M & Ms as I type this blog….and I ate the brown ones first!

by Kris Kindelsperger

In our discussions with donors and clients in recent months, we’ve observed that some donors are, for lack of a better word – paralyzed – by uncertainty. 

Some are looking for more reliability in the markets, some are looking to the November elections for guidance on economic policy, others are looking at January 1, 2011, wondering what the tax structure will be like. 

Adding to this anxious mix is a flood of conflicting advice obtained through personal research or from those that may be advising them about what might happen in the months to come.

The instinctive reaction for some is to preserve personal resources and avoid – or postpone -philanthropy.  For gift officers this often comes with the message “now is not a good time to make a major gift.”

While those who represent our nonprofit organizations are not financial advisors or financial planners, thoughtful discussion with donors can open opportunities to devise strategies that meet donors’ needs and allay concerns.

Philanthropy is frequently a “win-win” financial situation for both the non-profit and the donor if both can have a frank and open discussion about the outcomes. A carefully planned gift can benefit a donor who is worried about their taxes.  Non profits also offer a number of very attractive income producing financial instruments in today’s market.

So, in these uncertain times, now is a perfect time to move beyond the confines of simple gift discussions and to have conversations with donors about how philanthropy might bring a level of certainty to an uncertain world.  Non profits are in a unique position to have these discussions.

Are there ways that your organization is productively engaging donors in an uncertain world?

by Dan Schipp

Last month I wrote about the critical relationship between an non profit organization’s chief executive officer (CEO) and chief advancement officer (CAO). 

I noted that the goal of a strong CEO/CAO relationship is to forge a partnership that enables each to be as effective as possible in their respective roles and with their unique skill sets. 

How do you do that?  Here are some practical suggestions.

Be clear about expectations.�
The CEO and CAO have expectations of each other relative to their roles in advancing the mission, values and goals of the organization.  They must communicate openly and authentically with one another about those expectations and be willing to hold the other person accountable for addressing mutually agreed upon goals. They must be committed to helping the other to be successful.

Understand the other’s work style.�
Every individual has his/her preferences for communicating, making decisions, managing, and handling conflicts.  For an effective relationship, it’s important for the CEO and CAO to acknowledge, understand, and respect the other’s preferences.  Is business best conducted formally or informally?  What communication is best done orally and what is best presented in writing (or email)?  Is the CEO or CAO more likely to make a decision on the spot or need time to process the information?

Agree to disagree and then commit.�
To state the obvious, the CEO and CAO are not always going to agree with one another.  At times they will need to agree to disagree but commit to a plan of action regardless of underlying disagreements.

Don’t take the other for granted.
It’s easy to get caught up in the work and the drive for results.  The CEO/CAO’s relationship needs to reflect concern and compassion.  They need to offer and receive from each other honest feedback as well as encouragement and gratitude.

A strong relationship between a CEO and CAO sets the stage for non profit success.  Let me know if there are other approaches that have helped you strengthen your leadership bond.

by Ted Grossnickle

JGA is very happy to announce the addition of Andy Canada to our team. 

After thoughtfully considering for some time the need to enhance our team and increase our staff capacity – with someone who could live up to JGA’s highest standards of customer service and professionalism – we identified Andy as the newest member of our team. 

Andy has honed a strong reputation as a professional and talented development officer while working with two major Indiana universities and distinguished himself as a strategist with the ability to achieve results.

I look forward to having the opportunity to introduce Andy to you personally once he joins us officially on September 27^th.  In the meantime, please see the announcement below for more information on his background.

Higher Education Development Professional Joins JGA

INDIANAPOLIS (September 9, 2010) — Johnson, Grossnickle and Associates, Inc. (JGA) is pleased to announce that Andy Canada will join the firm as a consultant on September 27, 2010.

Canada brings to JGA significant development experience focused in large public higher education institutions. For the past four years, Canada has served as Development Director for the Indiana University Foundation where he was lead Development Director for the School of Health Physical Education and Recreation (HPER).

Prior to joining the Indiana University Foundation, Canada distinguished himself within the development team at Purdue University, serving as Director of Development for the Krannert School of Management. Canada also worked in Purdue’s Planned Giving area, leading key initiatives to increase donor gifts through estate planning vehicles. By educating donors on planned giving opportunities, Canada helped to raise $26.5 million in new documented gifts for the university.

Canada will provide JGA clients with a new perspective and a solid background in annual fund, planned giving and major gift work.

“Several months ago, JGA began a quiet and thoughtful process to expand our team by identifying a fellow professional who could embody JGA’s commitment to delivering excellent client service with a focus on providing authentic and strategic counsel to our clients,” said Ted Grossnickle, Chairman and CEO of JGA.  “Andy fills the bill in every way. He is a bright young talent who has already distinguished himself in the development field and we are very excited to welcome him to our team.”

 Canada is a graduate of Purdue University with a Bachelor’s of Science in Organizational Leadership and Supervision. 

Founded in 1994, Johnson, Grossnickle and Associates provides authentic and strategic philanthropic consulting services to private colleges, seminaries, independents schools and large cultural and community organizations in the central United States. 

by Ted Grossnickle

It’s no revelation that our very tough economy is causing many nonprofits to have to deal with a range of issues and decisions that are new for them.

As we work with our clients, those of us at JGA occasionally hear something like this:

“Look, we know that there is a right way to do a campaign, but we need funds now. Why not just go out and start campaigning right now?” 

This impulse is one that has organizations willing to ignore:

• the lack of readiness of their donors
• uninformed and disengaged staff or volunteers; and,
• their own half-completed planning and preparation.

The implicit trade off is to sacrifice preparation and “just go raise funds…”

Activity associated with a campaign often seems to suggest progress, to create enthusiasm and excitement and to hold promise of better days and more resources. And we all know that sometimes activity is a terrific camouflage for not dealing with the real issues. It is an understandable impulse.

What we can say in our experience over many years is that the track record for campaigns which had their genesis in a hurried up idea without adequate preparation is lousy. Some of the best known campaign failures are those which got their start in this fatally flawed manner.

A successful campaign must be rooted in:

• a sound business model and strategic plan
• board and staff leadership on the same page with regard to a Case for Support
• volunteers and staff oriented and trained to get the most from prospective donors
• a sense that you are ready for whatever the world may throw at you.

When hit by tough issues or economic hard times, campaigns that have done the right stuff up front respond and respond well and go on to succeed. Properly planned campaigns take the time to get it right so that when the inevitable uncertainties and problems arise, they know what they are doing and have thought about contingencies and can move ahead with dispatch, confidence and some elan’.

We have an old carpenter’s saying here in the JGA culture: “measure twice and cut once.” It’s even more important in bad times than it is in good ones.

Despite the pressure, stick to your guns and do it the right way….

by Angela E. White

Want to know what 15,000 donors said could influence them to be more generous in 2010 than they had originally planned?

Want to know how these donors are feeling about the recession and its impact on their philanthropy?

Want to know if direct mail campaigns are dead?

These are just a few of the questions addressed in the latest research released by Penelope Burk, President of Cygnus Applied Research, Inc., in her new study The Cygnus Donor Survey … Where Philanthropy is Headed in 2010.  

You can review an executive summary and purchase the full report at http://www.cygresearch.com/.  As always, Penelope provides us with very interesting and helpful information to set the stage for our work.

For example, her research shows that the impact of the recession on philanthropy seems to be moderating; however, among the top 10% of select donors, 17% said that they would give less in 2010.

We know that a decrease in giving from our most generous donors has a large impact on our overall fundraising success and thus may indicate that we will not see our total giving bounce back right away.

Now that we are 7 months through the year, how do your philanthropic results compare to last year? Review Penelope Burk’s latest research and see how you compare to national donor trends.

Learn something interesting in the study? Discuss it with Angela and others by posting in the JGA comments section.

by Meg Gammage-Tucker

We all get in such a hurry these days that we often forget to take that all important step back and think about how we affect the multitudes of other people whose lives we touch each and every day.  You would think that in this business of philanthropy—which literally means for the love of mankind—that we would take that time and assess our impact a bit more often….but alas, we so very often do not.

Several events of this week have encouraged me to think about the impact that my actions have on the lives of others.  Most are personal and not interesting to many of you.  Two have been very public and deserve a broader audience’s attention. 

The first is a story that was on this morning’s news about an organization named Operation Beautiful, founded by 24-year old blogger Caitlin Boyle.  The organization’s whole purpose is to eliminate “fat-talk” and negative self-imaging.  It’s done one post-it note at a time.  The founder simply asks that you place positive self-image messages in random locations to make others feel better about themselves.  Simple kindness—what a concept!  And all accomplished by writing a random note and leaving it somewhere—for a specific person or for anyone who just passes by and needs to feel better about themselves and this world that we all live in.

The second event was attending the premiere of Rob Reiner’s latest movie, Flipped, in Indianapolis.  The event was coordinated by Heartland Truly Moving Pictures , an Indiana-based nonprofit “dedicated to recognizing and honoring filmmakers whose work explores the human journey by artistically expressing hope and respect for positive values of life.”  Flipped certainly deserved an award for its life affirming values as it reminds us that  focusing on negative perceptions only serves to undermine some of what can be life’s most positive and enjoyable moments and opportunities.  Kudos to Heartland (and all its staff and supporters) and Mr. Reiner (and his cast and crew) for holding on to those values and reminding us of their importance. 

Hopefully, as I was this week, a few others have been reminded of the positive impact a few affirming words and/or ideas can have on the lives of others they touch…

Let Meg know how Sharing Affirming Words has helped you or your organization by posting in the JGA comments section below.

by Dan Schipp

Forging a Strong Relationship between the CEO and CAO

Recently I was asked to coach a new chief advancement officer (CAO) on how to work effectively with her chief executive officer (CEO).  The goal for a strong CEO/CAO relationship is to forge a partnership that enables each to be as effective as possible in their respective roles and with their unique skill sets.

The relationship between the CEO and the CAO has been called by some the most critical relationship in a not-for-profit organization. As Michael Gaylor outlines in his chapter in the book, Transformational Leadership, edited by Stanley Weinstein, the two leaders must have an authentic relationship, based on mutual respect, genuine interest in one another, and a deep commitment to the organization, its mission and values.  They must be comfortable spending time together and be able to work out the conflicts that inevitably will rise up between them. The CEO and CAO need to be headed in the same direction.  They may disagree on some of the tactics for getting to their destination, but they must be aligned when it comes to strategic goals.

The CEO and CAO have different roles to play in advancement.  The CEO is the visionary. She ensures that the organization’s mission is fulfilled efficiently and effectively.  She articulates the organization’s aspirations.  She exercises judicious oversight of the organization’s resources.  She builds relationships and seeks the resources necessary to fulfill the organization’s aspirations.

The CAO is the “bridge” between the organization and its external constituents.  He is the donors’ advocate.  He is the facilitator and supporter of the CEO, board members and other volunteers in their roles in advancement.  He is the developer, implementer and evaluator of fund development strategies.  He also is a builder of relationships and lead participant in seeking philanthropic support for the organization.

A strong relationship between an organization’s CEO and CAO is a key element of a successful advancement program.  What kind of relationship do your CEO and CAO have?  What do you see as the essentials for forging an effective CEO/CAO relationship?

Look for more info on this subject next month as I provide you with practical exercises on forging a stronger CEO/CAO relationship in your organization.

Let Dan know how helpful  “Forging a Strong Relationship between the CEO and CAO” is for your organization and share your results by posting in the JGA comments section below.