by Andy Canada

I had the honor last week of attending my second AHP Midwest Regional Conference. The conference held this year in Cincinnati, Ohio, brought together 120 healthcare development professionals from across the Midwest. 

JGA was the overall conference sponsor and it was great to support this opportunity for professionals to gather, interact, and share ideas. We believe strongly that conferences like AHP are a vital part of our profession. It allows you to take a step back from your daily responsibilities and reflect on what has worked and what hasn’t, hear from your peers about their experiences and learn new ideas.

Angela joined recent JGA client Chris Molloy of the Bloomington Hospital Foundation as they shared lessons learned during a successful campaign to raise funds for Hospice House. Their presentation, Running a Successful Campaign in a Time of Economic Uncertainty, shared best practices from setting the stage to choosing the right volunteer and campaign partners that can help make a campaign a success even in the most trying circumstances.

The conference also offered the opportunity to recognize a truly memorable gift from the past year. Sidney and Lois Eskenazi were the recipients of the AHP Midwest Distinguished Philanthropist Award. The award presentation offered the opportunity to reflect back on their spectacular gift and it was great to be there and see the staff of the Eskenazi Health Foundation receive recognition for the wonderful work they do.

The Eskenazi’s had a dream to give back to the community they love and make an impact and the Wishard Hospital project allowed them to fulfill that dream. New programs can’t be launched, new buildings can’t be built if we all don’t dream big and work together to make the dreams become a reality.  

It was a great lesson for everyone in the room and carried on the theme of the conference introduced in Kay Sprinkle Grace’s keynote address. Her comments and thought provoking discussion set the tone for an outstanding conference.

She asked everyone in the room to dream big with their organization and their donors and find connections to make the dreams come true. Kay got us to stop thinking about just “getting back to zero” when looking at the budget and the role of philanthropy and start dreaming about how to truly have an impact.

Budgets are tighter and there are countless things on all of our to-do lists but I would encourage all of you to find a conference or continuing education opportunity that interests you and make the time to go. We can all learn something new from our friends and colleagues in the development profession and these opportunities present a wealth of knowledge and the opportunity to openly discuss new ideas.

by Dan Schipp

We knew it was coming and now it is staring us in the face.  Yes, ready or not . . . there’s a considerable change coming in the leadership of our nonprofit organizations. 

With many baby boomers holding top executive positions in the nonprofit sector and reaching retirement age in the next few years, there’s a sea change in nonprofit leadership taking place. 

According to research conducted by the Bridgespan Group (“The Nonprofit Sector’s Leadership Deficit”, T.J. Tierney, 2006), over the next decade nonprofit organizations will need to attract and develop 330,000 to 640,000 new senior-level managers.  In just four years, the not-for-profit sector will reach a point where it will need almost 80,000 new senior-level leaders annually.

Not only will the nonprofit sector need many new leaders, it will need leaders who will be ready to handle the ever-increasing demands and complexity of nonprofit management.  What are the competencies they will need to excel in their roles?  This is the question that the Nonprofit Leadership Alliance pursued in a study it undertook in 2010.  The results of this research were released in the past year in a report entitled, “The Skills the Nonprofit Sector Requires of its Managers and Leaders” (Nonprofit Leadership Alliance, June, 2011). 

The study, perhaps the first ever comprehensive assessment of the skills required by the nonprofit sector, involved 3,200 nonprofit leaders from various areas of focus within the sector.  Human services (35%), education (17%), heath (10%), and cultural arts and humanities (7%) were the top-represented areas in the study.  I recommend reading the full report but here are a few highlights.

The competencies deemed to be highly important for mid-level and executive leaders to have are the following (ranked in order of most importance):

• Ethics and Values – understanding the importance of personal and organizational ethical standards, accountability structures, and a code of conduct for an organization devoted to public service.
• Board and Committee Development – understanding the purpose and role of the board of directors, the dynamics between an organization’s staff and its volunteer directors, and staff support strategies.
• Nonprofit Accounting & Financial Management – understanding basic nonprofit accounting, budget development, audits, and the monitoring of fiscal operations.
• Diversity Awareness – understanding professional practice and interaction skills in culturally diverse settings, enabling one to navigate dilemmas and challenges in such settings.
• Nonprofit Management – understanding the central importance of mission orientation, as well as public policy processes, human resource procedures, and strategic planning.
• Community Outreach/Marketing and Public Relations – understanding the role of community outreach and marketing strategies in building public awareness of the mission and messages of nonprofit organizations.
• Risk Management and Legal Issues – having a working knowledge of risk management, crisis management, and the basic laws and regulations under which nonprofits operate.
• Fundraising Principles and Practices – understanding the variety of fundraising strategies and methods used to support the mission of an organization, including grants, major and planned gifts, annul funds and special events.
• Program Planning, Implementation, and Evaluation – ability to assess needs within a population, ascertain the feasibility of a program, calculate the resources and staffing necessary, implement a program, and then evaluate and improve the program.
• Volunteer Management – understanding of American volunteerism coupled with the ability to create a volunteer program that harnesses volunteer service to advance the organization’s mission and also fosters the spirit of volunteerism.

How do you feel about the leadership bench strength in your organization?  Is it properly preparing entry-level and director-level professionals for future leadership roles?  Are your current and future leaders equipped with these competencies?  Do you have a talent pipeline in place to ensure a smooth leadership transition from the baby boomers to the next generation?

by Kris Kindelsperger

In 2012 there are many new and interesting ways to deliver content about your campaign, but the Case Statement for Support remains a staple of campaign fundraising.  The premise is simple.

A good case has a few key elements:

– It briefly puts the needs of the institution in perspective of the history and mission of the organization.

– It paints a picture of the vision for the future of where your organization is headed, its dreams and ambitions.

– It clearly outlines what needs to happen to reach that dream or fulfill the mission and what kind of investment is required.

– Last it explains how your organization will be changed by a successful campaign, and the role donor support plays in that change.

So what are the issues that organizations struggle with in creating a case statement?

Are you ready to put this in writing?

Case statement writing sometimes reveals inadequate planning or lack of readiness on the part of the organization.  If you can’t clearly explain your needs in writing, tell people how much it will cost, and why this is important; why would donors have the confidence to invest in your organization?

Keep it simple.

Too many organizations pack too much in the case to the point that the reader misses the point.

It’s boring.

Just because you need 10,000 more square feet of space, it doesn’t make automatically make for a compelling case to others.  You need to tell an interesting story about how more room will impact the lives of your constituents, strengthen your program, etc.

It’s too long.

You may think it takes 1000 words to explain one component, but it really doesn’t.

A strong case statement for support continues to be the bedrock on which the messaging for your campaign must be based.  Content trumps delivery every time.

by Melanie Norton

I have been asked to share some wisdom about working with philanthropic consultants with a group of students from Indiana University.  Although this subject covers a variety of topics, creating an effective request for proposal (RFP) for consulting services is one area that certainly merits attention. 

There is a wealth of information on the web about creating an effective RFP, and the tips and techniques can be narrowed to a very narrow topic depending on the nature of your business.  Despite the very technical requirements of some RFPs – think IT services, for example – there are some basic tips that ring true no matter what your profession.

Who are you?  An effective RFP gives the reader a good sense of who is requesting the proposal in a complete yet succinct manner.  Think elevator speech here…what can you tell someone about your organization in a limited amount of time (or space)?  The Chronicle of Philanthropy recently published an article and videos on effective elevator speeches that may help you narrow it down.

What do you need help with?  In other words, what is the issue you are trying to solve as it relates to your basic mission?  The scope of the project and specific areas of desired assistance are very important here.  Be as detailed as possible and think through your request thoroughly.  The more detailed you are with your request, the more accurate and complete your responding parties will be.

What is your timeline?  This is an important aspect of an RFP for consulting services (and arguably any service).  Providers need a realistic assessment of your time requirements in order to assess their own capacity to serve.  The more lead time you can give a firm, the more likely you are to get a thorough response and a desirable outcome.

What is your budget?  Although you may not wish to share your budget outright in an RFP, it is important to make certain the range with which you are dealing is in the ballpark.  We’ve had potential clients do it both ways, and there are some advantages to sharing your budget.  In rare circumstances, the budget is a non-starter (something I ran into when hiring employees many years ago – and establishing the parameters up front saves a lot of time).  In other cases, sharing your budget allows the service provider to frame their response in a realistic and reasonable way.  If you think the budget might be a question, make a phone call.  This is a smart practice anyway (if not prohibited by your organization or purchasing guidelines).

What are the deliverables?  At risk of sounding like a broken record, it is important to be as specific as possible when outlining the deliverables you are seeking.  This sets you AND the service provider up for the best possible outcome.  In the case of consulting services, both parties are best served when the relationship is viewed as a partnership.  Valuing transparency and authenticity with expectations is key, and JGA places a high value on “fit” with our clients.

What qualifications are you seeking?  It is very appropriate to ask for information about the person or persons who will be working with you during the tenure of the relationship in addition to seeking information about the company itself.  Asking specific questions up front avoids the circumstance of meeting one person or team during the “sales pitch” and ending up with an entirely different team when it comes to doing the work.   And, don’t forget to check references!  Including evaluation criteria is also helpful.

One final tip I might offer is to limit your RFP to the information you really need.  This saves you time when weeding through responses and allows you to focus on the most relevant information.  The Foundation Center (www.foundationcenter.org) is one of many who offer a resource listing to consider when creating an effective RFP.   And, don’t forget to provide your contact information for questions and follow up.  A little research can go a long way in making the RFP process painless and productive.

by Andy Canada

I recently read some preliminary findings from this year’s Cygnus Donor Survey, and was struck with how similar some of the messages were to what we have been hearing frequently from donors in our feasibility studies. 

Penelope Burke, principle author of the study, pointed out upon initial review of the data that donors frequently admitted they could have given more if they were more certain of how their gifts had ­– and by extension would be – used.

In some ways this is fundraising 101.  We all know that donors need to be moved by a story of what their gift will accomplish.  Most fundraisers also know that they should follow-up after a gift to let people know their gift made a difference. 

I am, however, struck by how often nonprofits and the fundraisers representing them feel the rationale for a project and the argument for a donation are self-evident.

Fundraisers need to remember that research has shown that major donors are far more risk-averse with their charitable donations than they are with their personal financial investments.

Research published by the Center on Philanthropy at Indiana University and Bank of America/Merrill Lynch since 2006 has repeatedly shown that high-net-worth donors are significantly more willing to take a chance to make a profit than they are with their charitable dollars.

It’s not surprising, then, that we often hear potential donors in feasibility studies hesitate to support a project unless they are provided firm details about its costs and impact. 

Whether it is cost per square foot of a construction project, or fiscal models for how an institution will pay ongoing expenses of new additions, or the specific activities that will take place in a building, major donors want transparency.

As a fundraiser, it can be easy to forget that we are not just seeking a donation, but attempting to build a lasting connection between a donor and a cause. 

The better we, as a field, become at remembering that the most generous donors want to be connected firmly to our organizations’ aspirations and accomplishments, the better we will be at earning their trust.

 by Angela White

Amid a slowdown in charitable pledges to hospitals, a study just released by the Association for Healthcare Philanthropy (AHP), indicates health care organizations have increased their reliance on cash-based fundraising, emphasizing annual gifts and special events, such as community runs/walk, golf outings, luncheons/dinners, etc.

However, with an ever-increasing emphasis on cash gifts, I believe that we run the risk of sacrificing our broader donor relationships that culminate in ultimate major and planned gifts.

• Are we focusing on cash gifts to fund immediate needs at the expense of listening to our donors and their desires for longer term philanthropic goals?
• Are we undervaluing planned giving as a charitable gift vehicle?
• Are we sending a signal to our donors that we are more concerned with meeting our annual goals than we are in helping them achieve their philanthropic giving plans?

Of course, all institutions need cash gifts for annual support, yet how we couple immediate gifts with a holistic approach to the donor relationship and giving is critical to the role of philanthropy at each of our institutions. 

The study showed a definite downward trend in securing multi-year pledges in the 2010 fiscal year for major and planned gifts. 

Susan Doliner, FAHP, CFRE, chair, AHP Board of Directors. points to one probable cause for the drop in pledges the report noted. “Philanthropic contributions can make an extraordinary difference in the health of our communities, yet the ongoing debate around health care costs, delivery systems and access combined with economic conditions nationwide have slowed decision-making for major donors considering gifts to health care related organizations,” said Doliner,

Another item of note from the report: “in almost all instances, organizations that devoted more staff and resources to philanthropy did significantly better when compared to benchmarks than did those with less to spend on charity programs and fewer professional fundraisers.”

Learn more about the AHP Performance Benchmarking Service, now in its seventh year,  and the FY2010 Performance Benchmarking Service survey.

by Dan Schipp

Metrics have been on my mind lately.  Maybe it’s because we are assisting several clients with strategic planning and helping them develop measurable objectives and a dashboard of strategic indicators. 

Maybe it’s because in feasibility studies, more and more, I hear prospective donors asking, “How are they going to gauge their impact?” 

Or maybe it’s because I am looking forward to Jim Hodge’s lecture at the end of this month on the topic, “If philanthropy is all about relationships, why do metrics only measure money?” (More on this lecture later.)

There is no denying that we are in an age when donors and other stakeholders expect greater accountability and measurement of performance from nonprofit organizations. 

They not only want to know what the organization is doing but the impact it is having on the issues or needs it was established to address. 

They want to see performance and outcomes data.  It’s not just a matter of tracking the standard measurements of dollars raised, number of donors, membership growth, number of people served, and cost per dollar raised. 

There are a couple other things to keep in mind.

Measuring is not the same thing as counting.  Measuring involves determining the magnitude of something in regard to some standard.  Counting is just adding up. 

As Steven Mc Laughlin, director of internet solutions at Blackbaud, said at the Association of Fundraising Professionals international conference a couple years ago, “Counting doesn’t actually count for very much.  As it turns out, when you count things, you’re usually successful.  That is not always true when you start measuring things.”

In measuring, the focus is on lessons to be learned and improvements to be made.  Measuring requires asking questions like, “What was it in the past?  What is it today?  What should it be in the future?  How do these results compare to those achieved by similar organizations (benchmarking)?” 

And these questions need to be asked in regard to how the organization’s programs are fulfilling its mission, how successful it is in mobilizing its resources, and the staff’s effectiveness in carrying out the organization’s work.  As you look at how your institution or organization is tracking performance, are you measuring or counting?

Two other important things to keep in mind in regard to metrics are that you cannot measure everything and what you do measure should be tied to your organization’s strategic plan. 

In developing a “scorecard” for monitoring your organization’s performance, you will want to build it around the goals of your strategic plan. 

Another option is to build your plan around the categories that are often included in a nonprofit’s scorecard: 

1. revenue/funding;
2. resource allocation;
3. service delivery;
4. donors and board members;
5. internal operations; and
6. staff development.

Now about that lecture . . . if you are in Indianapolis on March 22, I encourage you to attend the ninth annual Thomas H. Lake Lecture sponsored by the Lake Institute on Faith & Giving. 

This year’s lecturer is James M. Hodge III, vice chair and director of principal gifts for the Mayo Clinic. I am looking forward to his thoughts on philanthropy metrics that go beyond measuring money.  For more information and to register, please visit:  www.philanthropy.iupui.edu/LakeFamilyInstitute.

by Angela White

Bank of America and the Center on Philanthropy at Indiana University recently published the fourth volume in a series of highly informative studies they have produced examining the philanthropic behavior of high net worth individuals. 

The most recent iteration of this study examined the specific philanthropic traits and preferences of high net worth women by combining previous data with a national survey of the American Red Cross’s Tiffany Circle, a group of female donors giving more than $10,000 each annually. 

To no one’s surprise, they found that women of means behave differently than their male counterparts.

For instance, while both men and women shared many of the same motivations for giving, women were significantly more likely to be motivated to give based on the belief that their gift could make a difference. 

Women were also more motivated by a desire to give back to their communities, and to support the organizations where they volunteered (a practice they were also more engaged in than their male peers!) 

Women were also nearly twice as likely as men to donate in order to set an example for young people.  The concept of supporting the legacy of others was similarly twice as likely to motivate women to give.

This behavior, however, shouldn’t be confused with some warm and fuzzy female stereotype.

 Women were significantly more concerned about the efficiency of the organizations that approached them for gifts and they were more likely to approach their giving with a distinct strategy and a set budget.

The study also found that women were less likely than men to give to an organization simply because they had given there before. 

Women were also significantly more concerned that nonprofit organizations honor the intent of their gifts, and more likely to expect nonprofits to provide them with ongoing communication and clear feedback on the impact of their giving.

Women care about the future and are ready to be passionate supporters of your organization, but that passion and hope should not be confused with naiveté. 

Women who give do so because they want to make a difference, and they will hold your organization accountable for using their gift wisely. 

I encourage you to read this report for yourself and think proactively about how your organization is engaging women to make transformative change.

For the past three years, Johnson, Grossnickle and Associates along with our partners at Achieve, have been conducting research to understand what Millennials want nonprofits to know about engaging them as volunteers and donors.

This year, we are taking the research a step farther, seeking to explore what nonprofits are doing to engage Millennials. As part of the 2012 Millennial Donor and Engagement Research, we are asking nonprofit practitioners to share their experiences in The Nonprofit Perspective Survey.

Have you invited Millennials to join your board? Do you have a Young Professionals group actively supporting your cause? Are employing social media to attract younger volunteers and donors?  What’s working at your shop?  Do you have a best practice or a hard lesson learned you can share with fellow practitioners?

Answer a few questions and share insights into what you are doing to engage Millennials as donors, volunteers and leaders. 

Your responses and feedback to the Nonprofit Perspective survey will be incorporated into the 2012 Millennial Impact Report  and complement the responses to the 2012 Millennial Donor and Engagement  Survey completed by nearly 7,000 Millennials.

Please help us capture the insights of other nonprofit professionals by sharing the survey with your colleagues.

Share this link:  https://www.research.net/s/NonprofitMillennialImpact