In September of 2011, the University of Chicago School of medicine received a $42 million dollar gift from Carolyn and Matthew Bucksbaum, which was one of the largest gifts to a hospital made last year. The reason they gave: they were so appreciative of the care they received from their doctor that they wanted to help train other doctors to be more like him! 

While the Bucksbaum gift is extraordinary, they are far from unique in their desire to give back to the people and organization that took good care of them.  According to the Association for Healthcare Philanthropy, current and former patients contributed nearly a quarter (23.8 percent) of all donations to healthcare institutions in 2010. 

A new study published this month in the journal Academic Medicine, suggests that development staff can make more connections with potential grateful patients (and generate more gifts) by providing one-on-one coaching to physicians about their role in the fundraising process.

The study, conducted by Steven Rum and Dr. Scott Wright at Johns Hopkins University found that physicians given one-on-one coaching by professional fundraisers produced significantly more leads and more gifts than those who received either emailed education materials or small group instruction from other physicians.

The development “coaches” educated physicians about the importance of philanthropy to the institution, walked them through how to recognize cues that patients might be interested in giving back, and discussed the steps to take once a prospect was identified.

The 19 physicians who were coached individually generated approximately two referrals of prospects each during the term of the study, which led to over $200,000 in realized gifts.

The 18 physicians in the small group lecture cohort generated a total of 3 referrals during the term of the study, and those trained through email alone provided no referrals.  Neither of these groups generated any actual gifts during the term of the study.

This study is a bittersweet reminder that while patients are a wonderful source of support for healthcare institutions, the people they are most intimately connected to are often uncomfortable with or unaware of the role they can play in facilitating the gifting relationship. 

What are you doing to assure your frontline staff understand the impact they have on fundraising?

Recently NTEN, Common Knowledge and Blackbaud released their third annual Nonprofit Social Networking Benchmark Report. The report summarizes data from a survey completed by more than 11,000 professionals from a wide spectrum of nonprofit organizations. It provides some interesting insights into how nonprofits are using commercial social networks (Facebook, Twitter, LinkedIn, etc.) and house (or private) social networks. The 2011 report contains some surprising results. Here are a few of the key findings:

 1.  Facebook is still the leader of the pack and its lead is growing – Facebook is the most popular social network platform for nonprofits. 89% of nonprofits report having a presence on Facebook in 2011. In the last three years, Facebook usage by nonprofits grew from 74% to 89%. By comparison, Twitter declined slightly from 60% in 2010 to 57% in 2011. LinkedIn also dropped from 33% in 2010 to 30% last year.

2.  Commercial social networks are getting bigger – Nonprofits seem to be succeeding in their efforts to attract more supporters through social networks. The Facebook average community size for nonprofits increased by 161% to 6,376 members. The average Twitter follower base is up just 2% in 2011 to 1,822 followers but a huge increase of 535% from 2009 levels (287 followers.)

3.  Fundraising on Facebook is growing but it’s still a low-level effort – The number of nonprofit organizations successfully generating a small gift revenue stream ($1 to $10,000 annually) has risen each year from 38% in 2009 to 46% in 2011. The number of nonprofits raising $100,000 or more per year through social networks is very small but that number doubled this past year from 0.2% to 0.4%.

4.  Here come the newbies – Several social networking platforms made the survey for the first time. Among the newcomers, FourSquare led the way with 4% of nonprofits saying they had a presence on it. Other newcomers are Jumo, Vimeo (video sharing), Yelp (local search and review), Picassa (photo sharing), and the peer-to-peer giving sites: CrowdRise, FirstGiving, Razoo, and Causes, but each had a less than 1% usage by nonprofits.

5.  Surprise: master social fundraisers come in all sizes – Of the 27 organizations that raised more than $100,000 on Facebook last year (“the master social fundraisers”), 30% were small nonprofits with annual budgets less than $5 million. The average Facebook following of a Master Social Fundraiser is nearly 100,000 members – more than 15 times the general average. This number shows that it takes a big social community to raise big dollars by way of social networks.

I encourage you to read the entire 3rd Annual Nonprofit Social Network Benchmark Report. You will find other interesting insights into such topics as what departments are managing nonprofits’ use of social media, what types of organizations are the top performers, and what level of staffing are organizations devoting to social media.

The recent Council of Independent Colleges 2012 President’s Institute in Marco Island, Florida welcomed nearly 400 private college presidents from around the nation to its annual meeting.

The theme “Champions of the Liberal Arts, Presidential Leadership in Independent Higher Education” focused on the proven and enduring value of a liberal arts education.

Perhaps not surprisingly, many of the program sessions – and those that seemed to have the strongest attendance – dealt with the numerous financial challenges facing higher education, in particular private education. Indeed, the conference keynote was given by Ronald Ehrenberg on the topic “The Economy and the Future of Independent Colleges.”

Education writers like Goldie Blumenstyk from the Chronicle of Higher Education  and Doug Lederman from Inside Higher Education  attended and wrote same-day articles on critical cost issues such as tuition discounting, academic program right-sizing, (referred to by at least one institution as “academic prioritization,”) and more arcane topics like debt ratios.

Many of the program sessions over the three days also dealt with the income side of the equation such as endowment management andof course the favorite topic of all president’s – fundraising. JGA’s Senior Consultant and Founder Ted Grossnickle and Westminster College President, Richard Dorman led one such session on “Developing Trustees as Fundraisers.”

One common theme that wasn’t a formal part of the conference, but was heard from nearly every president I spoke with, was that they planned on using the time before, during, or after the conference – sometimes all three – to visit with donor prospects.

Private higher education and the liberal arts are alive and mostly well, in part due to the generosity of alumni, board members, and friends of our private colleges and universities, not to mention the relentless good work of their presidents who never miss an opportunity to talk to one more supporter.

A new year has started and for many that means new resolutions, new goals and new beginnings.  The idea of a “fresh start” on the personal level seems appealing to many of us for a variety of reasons.  On a professional level, however, the reset button rarely returns to zero.

In their online Outlook 2012, The Chronicle of Philanthropy shares its list of “5 Challenges for the Nonprofit World in 2012.”  Among the list of formidable tasks for the coming year, there exists the ever increasing demand for charities to measure effectiveness and show results.  Although calculating overhead ratio has been a common measure in the past, it is by no means a comprehensive assessment of effectiveness.  However, it has yet to be replaced by a more practical evaluation measure.

I can safely say that measuring effectiveness seems to be a top priority for almost everyone in my professional network; clients, colleagues and friends alike.  Many are feeling the pressure to justify their operations and existence, and the demands are coming from board members, donors and managers of all kinds.

Although there is no magic formula for success, following are a few tips you might find helpful as you look for ways to help maximize personal and programmatic effectiveness:

Do your homework.  This means knowing your “business” inside and out.  Knowing your business also means knowing your prospects and donors.  And, don’t be afraid to admit you don’t know the answer.  A polite “I’m not sure, but I’ll find out right away” is much better than the alternative.

Concentrate on results and not on activity.  This means maintaining a laser focus on the activities that will bring about the biggest return on investment.  You can’t do it all, so don’t sacrifice essential functions for ones that are easier to accomplish or tend to be “busy work.”  Working hard does not mean working smart.

Keep score.  It sounds simple, but it’s not uncommon for programs and organizations – even successful ones – to be challenged by the basic task of getting important information recorded.  If you’re the employer, make it as easy as possible for your employees to share needed information.  If you’re the employee, be diligent in getting your information into the system or down on paper.  It’s critical for not only today’s success, but also that of the future.

Work like an owner.  I recently attended an AFP luncheon in Cincinnati where the speaker, Erika Dockery, asked the attendees to consider “what would I do today if I worked 100% on commission.”  Although the concept may be more frequently heard in the for-profit arena, the results are advantageous for all.

Focus on the donor.  You’ve heard it time and again, but it’s true.  The best results occur when everyone walks away feeling like a winner.  In the world of philanthropy, both the charity and the donor can do just that.  There is no better “measure” of effectiveness.

As we conclude 2011 and begin the New Year, we have much for which to be thankful.  

At JGA, we are thankful for the privilege to work with our clients to make the world a better place via philanthropy.

In 2011, we have celebrated the transformational gifts like the new Eskenazi Health made possible by the generosity of Lois and Sidney Eskenazi and  the grand opening of the new Indiana Landmarks Center, the former Central Avenue Methodist Church, led by the philanthropy of the Cook Family of Bloomington, Indiana.

We have celebrated assisting the retired Sisters of Providence via the renovation of Providence Hall and the Realtor Foundation Celebrating a Living Legacy campaign to assist the homeless. We have celebrated the creation of a new Hospice House at IU Health Bloomington (link to webpage and the opening gala at the new home for the Booth Tarkington Civic Theatre.

We have celebrated campaign announcements at Lenoir-Rhyne University and the Indianapolis Zoological Society and look forward to the impact that these campaigns will have on our world through education and conservation.

All of this generosity makes us happy and proud of the work that we do and energizes us for another exciting year in philanthropy.

All of us at JGA wish you a 2012 to celebrate!

Looking for a way to help nonprofit board members understand what is expected of them? 

How about telling them they have the duties of care, loyalty, stewardship, and compliance? 

That’s how two presenters at the Fall Joint Nonprofit Conference, sponsored by the Ohio Association of Nonprofit Organizations and the Ohio Attorney General’s Office, summarized the duties of members of nonprofit boards. 

With these four aspects of board participation, the presenters, Matt Oyster and Melissa Smith of the Ohio Attorney General’s Office, offered a good framework for thinking about the responsibilities of a nonprofit board.  (I have substituted “stewardship” for what the presenters originally defined as the “duty to maintain accounts.”) 

Let’s consider what each of these duties entails.

Care

A board member who “cares” for an organization is concerned about, attentive to, and involved with the organization.  It means that the board member, at a minimum, prepares for, attends and actively participates in meetings.  It means that the board member advocates for the organization and makes sure it is mission-driven and mission-effective.  It also means the board member shares her financial resources, as well as her time and talent, to advance the organization’s mission.

Loyalty

The duty of loyalty requires the board member to place the interest of the charity above any personal interest that may come into play in serving the organization.  Any potential conflict of interest – personal or business — must be disclosed.  The board member must know and adhere to the organization’s written policy for handling conflicts of interest.

Stewardship

The broad duty of stewardship involves the board in oversight of how the organization is acquiring, using, and managing the resources necessary to carry out its work.  The board helps ensure that the organization has in place the systems, policies and procedures for accurately recording and reporting income, expenses, and investments, as well as for developing and monitoring budgets.  The board also is responsible for making sure there are in place internal control systems with checks and balance.  Most importantly, the board “stewards” the organization by procuring resources (especially through fund raising), by hiring, developing and evaluating the organization’s leadership, and by building and assessing the board itself.

Compliance

The fourth and final duty of a board member is that of compliance.  The board is charged with the task of ensuring that the organization complies with legal requirements and all other obligations.  This oversight duty includes federal and state laws, governing documents, contracts, and representations made in fund raising solicitations.

How is your board carrying out its duties of care, loyalty, stewardship and compliance?  Does your board come up short in any one of these areas?  What can your board do to strengthen and enhance its effectiveness?

A few weeks ago we shared a link to a survey conducted by the Nonprofit Research Collaborative.  This survey and the resulting report are produced as a cooperative effort of the Association of Fundraising Professionals, Blackbaud, the Center on Philanthropy at Indiana University, the Giving USA Foundation, Guidestar, and the National Center for Charitable Statistics.

I wanted to share with you the some interesting findings from the resulting “Late Fall 2011 Nonprofit Fundraising Study,” published this month. 

Slow Recovery, Leaves Some Behind

In general the survey appears to suggest that charitable giving is in the midst of a slow recovery, but that the rising tide may not be lifting all ships equally.  A plurality (41 percent) of organizations reported seeing increases in their charitable revenue through the first three quarters of 2011.  In contrast,  28 percent saw their revenues decline and 31 percent reported that charitable revenues had stayed flat compared to 2010.

New Donors are a Bright Spot

Another series of findings of particular interest related to the number of organizations reporting increasing success in acquiring new donors.  Half of organizations reported that they had more success attracting new individual donors in 2011 compared to 2010.

More See Increases in Gift Size, Than Decreases

In addition, many organizations reported increases in the size of average gifts.  Though 46 percent of organizations reported that the average size of gifts from new and renewing donors stayed flat, more organizations reported seeing increases in the average size of gifts. 

More organizations reported increases in gift size from new donors (30 percent) and renewing donors (29 percent), than those reporting decreases in gift size.  Only 24 percent saw decline in average renewal gifts, and only 25 percent reported decreased average gifts from new donors.

Though we are clearly not out of the woods, and continued global economic instability may jeopardize the gains made both economically and in terms of charitable giving in the last two years, we continue to see indications that donors may be starting to reengage and once again expand the circle of causes which they support.   

It is our job as fundraisers and consultants continue to create opportunities that draw donors back into the fold and maintain the connections with existing donors that have weathered the financial storm.

Would you say you’re knowledgeable about basic financial principles and concepts? 

If you answered yes, you are not alone. 

In a recent financial literacy survey conducted by the Center on Philanthropy at Indiana University and sponsored by Moody’s Financial, 76 percent of nonprofit managers considered themselves financially “knowledgeable” and another 7 percent claimed to be “experts” in that regard.

Unfortunately, if you are like the average nonprofit manager, there is a decent chance you overestimate your level of financial understanding. 

In reality, only a third of respondents were able to correctly answer a series of three questions on basic financial concepts like inflation, investment risks, and diversification.  

While nonprofit managers are not expected to be Warren Buffett, when donors make a gift, they expect it to be competently managed, especially when that gift is meant to be held in an endowment. 

We don’t have to look too far back to see significant examples of financial naivety costing nonprofits and foundations dearly.  Whether falling victim to criminal schemes like the one perpetrated by Bernie Madoff, or leaving themselves overly exposed to volatile market fluctuations, a number of nonprofits have paid a high price for not arming themselves with the appropriate expertise and assistance in financial dealings.

The silver lining to this news is that nonprofit managers were more knowledgeable than the public at large.  But nonprofits don’t have to compete with the general public for donations. They compete with each other. 

In an environment where nonprofits are increasingly coming under scrutiny from donors and regulators, it is important for nonprofit managers and their boards to honestly assess their own knowledge and practices to avoid missteps that could have a long-term impact on donor confidence.

So, take some time to crack open that Finance 101 book and brush up on your financial knowledge.  It will pay dividends.

This is the time of year when we stop – if even for a moment – and reflect on those things for which we are most thankful.  At JGA, that reflection leads to our clients and the dozens of charitable organizations we partner with each year.  For those charitable partners, thoughts of thankfulness likely lead to donors and those who selflessly give of their time and talent to help advance the mission.

A recent online article in the Chronicle of Philanthropy gives us yet another reason to be thankful.   In a poll conducted by the American Red Cross, nearly seven out of 10 Americans believe it is important to make giving to charity a holiday priority.  And, 72 percent of those who plan to give also plan to make a contribution that equals or exceeds their gift from last year.

At a time when the economy can still be categorized as challenging, this is encouraging news for charities.  In fact, the same poll indicates that givers plan to cut other expenses before scaling back on their charitable contributions.

Other key findings of the survey are as follows:

• 79% would rather have a charitable donation in their honor than a gift they won’t use
• Four in five Americans agree that helping someone less fortunate is an important part of their holiday tradition
• 68% of Americans believe that it’s important to give to charity because of the economy
• 45% of Americans will cut back their expenditures on travel, and the same percentage on decorations, but only 26% plan to spend less on charitable donations

Amidst the flurry of year-end mailings and appeals, it is especially important for donors and volunteers to feel like their contributions are appreciated.  The good news above lets us know that charitable giving is still a strong priority for Americans and we need to let donors know we don’t take that goodwill for granted. 

Take some time this holiday season to make certain your stakeholders know how thankful you are for their support.  Send a card, write a note, or pick up the phone and share your appreciation.  Despite the fast-paced nature of our society, changes in the economy and also personal priorities, Americans enjoy the opportunity to give to causes they care about.  And we appreciate the opportunity to say “thank you” to those who make a difference.

This week, more than 125 communities and over 50,000 people will be celebrating National Philanthropy Day (November 15^th).

These celebrations honor the donors who generously give billions of dollars and volunteer hours each year to feed the hungry, clothe the needy, save the environment, cure the sick, and fund systemic and long-lasting change.

You know these donors in your community, and I encourage you to send them a special thank you on National Philanthropy Day to acknowledge the difference they are making in countless lives each day. 

JGA is pleased to be celebrating National Philanthropy Day in two cities on the same day  — on November 17^th JGA will host a table to celebrate the honorees in Cincinnati, OH at a luncheon and in Indianapolis at a dinner that evening.

Check out the Indianapolis recipients and the Cincinnati recipients.

And, for all of us who try to emulate these philanthropy leaders, check out Change the World with a Giving – and Wise – Heart! and watch the video for tips on giving wisely, including:

• Plan your giving – create a giving plan that details how much you want to give, when you would like to give and what type of charities you want to support.
• Decide when you will give – some charities struggle in Spring and Summer when giving drops significantly.
• So many charities – educate yourself about the many charities looking for support
• Knowledge is power – thoroughly research those charities you identify
• Financial data is important, but doesn’t tell the whole story – review financial data, but don’t use it as the only metric to whether a charity fulfills its mission.
• Know your rights as a donor – review the Donor Bill of Rights and make sure you are treated fairly.
• Give from the heart – give to support those charities you truly believe in.

Happy National Philanthropy Day!