by Kris Kindelsperger

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.

by Melanie Norton

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.

by Ted Grossnickle

Since 2008 we have all noted quantitative answers to what the impact of the economy has been on gifting.

What is talked about less is what individuals tell us. We know there is more uncertainty and we know that uncertainty, not bad news, is not good for philanthropy.

But what else do we hear from donors and prospective donors? What trends are emerging? Are there lessons to be learned as we navigate these new waters?

Our clients tell us — and we hear for ourselves during feasibility study interviews- the following key themes:

“I’m going to think about a gift more carefully – especially one from assets rather than cash flow.” Donors seem to be taking a longer time to decide and are definitely seeking advice from advisors more frequently.

“I used to support 6 or 8 organizations; I’m cutting that down.” Again, this is anecdotal but it seems donors have decided they wish to continue to be generous but they are giving to fewer organizations. Is this because they have less to give? Perhaps. Is it because some organizations have not done as good a job of staying in touch with donors? Perhaps. Is it because some organizations have not responded well during these times and donors don’t think they are as meritorious a cause? Perhaps. It may be a combination of these factors – or others.

“I’d like to see a clearer, more precise picture of what the organization will be like as a result of my gift. Is there a sound and strategic fiscal model?” We hear this more and more. And believe it ties closely to some of the points mentioned just above.

If one result of the current era is for donors and prospective donors to be savvier and more thoughtful about their philanthropy, then that is good. Everyone wins. Not only those that receive the gifts, but even the organizations that learn the lesson that they must change how they articulate what they do — and be very sure they are effective and efficient in their missions.

As some have called it, this period is the “new normal.” Things will not go back to the way they were and all nonprofits must work harder to help donors see the value they can create with their gifts.

by Andy Canada

There are many steps an organization must take to build and maintain a loyal and sustainable donor base, and perhaps the most important and often overlooked is retaining your existing donors.

Not only is putting a stop to donor attrition important, it also pays dividends, according to a recent report from the Fundraising Effectiveness Project (FEP), a joint effort by AFP and the Center for Nonprofits and Philanthropy at the Urban Institute. The 2011 Fundraising Effectiveness Survey Report shows that for every $5.35 gained in new gifts by an organization in 2010, $5.54 was lost from the organizations current donors not renewing, resulting in an average net loss of 1.9%. Though the study did show improvement from 2009 to 2010, donor attrition is still a challenge that nonprofits need to address.

As we have all heard many times, it is more cost effective to retain and motivate your current donors than it is to attract new first time donors to your organization. However, often current donors are taken for granted as organizations go out searching for a new group of potential donors. Attracting new donors to your organization should never overshadow stewardship to your current donors.

Turnover of donors increases your overall fundraising costs and inhibits growth. With increased turnover, organizations struggle to build long term and sustainable relationships with donors, move donors to higher giving levels, or build a major gift pipeline for the future.

Here are some steps to assist in donor retention:

1. Focus on thanking your donors within 48-72 hours after they make their gift. Let them know the gift has arrived safely and that you appreciate their support.
2. Personalize your communications. Utilize your database system send personalized letters and notes.
3. Periodically touch base with your donors. A personal call is great but an email providing an update on the organization is also effective. Allow them to feel engaged with the organization.
4. Personally visit to say thank you whenever possible.
5. Explain how their gift has made an impact.

These are basic steps but they do require an investment of time and coordination from your organization. But, current donor relationships are an asset well worth the investment.

by Dan Schipp

When you work in development there are always a few gifts that stand out in your memory.  Often they are the large gifts that involved years of cultivation. 

Not in this case. 

One of the most memorable gifts that Saint Meinrad Archabbey received during my tenure as vice president for development came from a junior high school student. 

The gift of cash — $45 – was accompanied by a handwritten note from John, the young donor.  He explained that he had decided to contribute a tithe of his annual allowance to our $40 million campaign. 

John said his parents encouraged him and his siblings to give a portion of their allowance to charities of their choice.  Thanks to his parents, John was learning to be a philanthropist.

I was reminded of this experience earlier this summer when I read an article in the Wall Street Journal entitled “How to Raise a Philanthropist” (June 20, 2011). 

In the article, Veronica Dagher notes that the great generational transfer of wealth has more and more affluent families taking an active approach to teaching their heirs about philanthropy. 

In addition to leading by example and demonstrating an attitude of gratitude, here are some other practices that she says parents are using to encourage their children to become volunteers and philanthropists:

• Talking with their children about giving and volunteering
• Matching gifts to their children’s charities
• Volunteering with their children (at an animal shelter or soup kitchen, for example)
• Conducting family meetings, often facilitated by an advisor, on individual and collective philanthropic goals
• Asking children to research causes and to “pitch” them at meetings of the family’s foundation board.

Research is showing that the younger generations are philanthropically inclined.  JGA’s and Achieve’s 2011 Millennial Donors research revealed that 93% of the nearly 3000 millennials (ages 20 – 35) who participated in the survey made a gift in 2010.  Nearly eight out of ten volunteered. A nudge from a family member prompted 42% of the millennials to give.

It is encouraging to see that we as a society are becoming more intentional about teaching philanthropy and volunteerism to younger generations.  Families and churches still lead the way in teaching and encouraging giving, but there are more formal efforts underway. 

One remarkable example is the Learning to Give organization, which is working with generationOn to provide high quality K-12 lessons, units, and materials on philanthropy to schools throughout the world. 

With efforts like this, more and more organizations will be counting young philanthropists like John among their donors.

by Angela White

 Our JGA team of professionals has grown by one with the addition of Melanie Norton, our newest consultant.

Melanie is a talented planned giving director and fundraising professional well known to the JGA family. Over the years, she has served both at Franklin College and most recently at Depauw University.

Her keen understanding of the legal, financial and emotional dimensions of charitable giving will be immensely valuable for our clients. She provides real world insight into best practices, proven processes and procedures that can help clients generate success in their donor management programs.

I am very excited to welcome Melanie to our team and look forward to having the opportunity to introduce her to you personally over the next few months. Please find more information on Melanie’s background and experience in the announcement below.

JGA Welcomes Higher Ed Development Professional

(Indianapolis) September 8, 2011 – Johnson, Grossnickle and Associates announced today that Melanie J. Norton has joined the firm as Consultant. Norton will provide philanthropic counsel to JGA’s nonprofit clients to help them maximize their fundraising potential and position themselves for long-term success.

Prior to joining JGA, Norton was the Director of Gift Planning for DePauw University in Greencastle, Indiana. She brings more than 12 years of experience with Planned Gift Giving committees and boards for higher education institutions.

During her work at DePauw, Norton was responsible for the oversight and administration of the $180 million gift planning program. She helped donors navigate the complex legal and financial mechanisms while matching donor giving interests with the institution’s needs to create a mutually positive and effective legacy between donors and the university.

“We are very excited to incorporate Melanie’s skill set into the JGA team,” said Angela White, Senior Consultant and CEO of JGA. “We have been familiar with her work over the years and her notable track record of success. Her proven leadership on volunteer boards and her expertise with prospect strategy and development will provide great insight and counsel for our clients.”

In addition to her four year tenure at DePauw University, she worked for seven years as the Director of Major and Planned Gifts at Franklin College, where she also began her career as Assistant Director of Admissions.

During her career, Norton also spent seven years in the banking industry serving as an Assistant Vice President at Fifth Third Bank in the divisions of Trust and Investment Advisors and Retail Banking.

Norton holds a B.A in Business with a concentration in management from Franklin College. She also holds an M.B.A from the Kelley School of Business. She was recently elected to serve on the national board for the Partnership for Philanthropic Planning (PPP). She is past President and board member of the Planned Giving Group of Indiana and also served on the board of Independent College Advancement Associates.

About JGA

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

by Angela White

I recently recorded a short video interview on why we advocate feasibility studies at JGA. A feasibility study provides vital answers to help an organization create and run a successful fundraising campaign. By conducting a feasibility study, an organization can receive a third party perspective on the organizations upcoming campaign or project.

Here are some questions a good feasibility study should help you answer.

1. How much money can you expect to raise in a capital campaign?
• What are donors willing to do to aid your organization in achieving its goal?
2. Who are your potential volunteer leaders?
• Who might be able to partner with staff to make the campaign a success?
3. What are the perceptions of your organization among your constituents?
• How do donors connect to the leadership of your organization?
4. Are there underlying issues impacting your organization’s potential for success in a campaign?
• What might be out there that could maximize your giving?
• Are there challenges that could cut back on the amount of gifting you are likely to receive?
• Are there issues impacting your constituency of which you need to be aware?
5. What are the broader questions that need to be asked specific to our organization?
• How can we position this campaign to be successful today and set the stage for long term growth?

A feasibility study can be a valuable tool to help develop a thorough understanding of how successful your campaign may be and where you may encounter problems.

But from my perspective, to get at the broader answers about the campaign you need to tailor the approach specifically to the organization.

Through the years, we have recognized that the feasibility studies that yield the most useful information include the following:

• Detailed, custom plan development specifically to meet your organization’s needs, not a cookie cutter approach
• A tailored selection of questions that allows a feasibility study to take into account your organizations history and current situation
• Face to face interviews with clients which yield more insights and build closer relationship to volunteers and donors
• Enough time for a thorough study of the aspects that could impact your campaign, sometimes up to 90 – 120 days
• Go beyond donors and involve committees, staff, volunteers and other constituents important to your success

Taking this extra step to tailor the questions and the approach to your organizations unique needs allows the feasibility study to answer the bigger question of what do you need to be successful not just today in this campaign but to set the stage for long term philanthropic growth.

by Andy Canada

So who is tired of hearing about credit ratings, a possible double dip recession and an up and down (mainly down) stock market?

It has certainly been a really interesting and unsettling few days in the financial markets. The recent news is coming on top of a slower than expected economic recovery and will most likely allow the seed of uncertainty to grow in your donors’ minds.  

So how will you and your organization deal with these ever changing times?

It is hard and most likely impossible to predict when the economy will improve, but you and your organization need to stay on course and continue executing your plan of action.

Stay in communication with your donors and continue telling your story. The recent economic news might make people slow down their gift decisions or make smaller gifts, but your donors will still want to hear from you and stay connected to the mission of the organization.

During the last economic slow-down, the non-profits that stayed in contact and maintained close relationships with their donors came out with stronger relationship and more loyal donors.

We don’t know what the recent events will bring or how long this uncertainty will last but we feel that the same principals will apply and that the time you spend with your donor base will have a long lasting impact on your organization.

by Dan Schipp

Not long ago I had the opportunity to attend an organization’s annual gathering for members of its planned giving society. 

It was an impressive event, not because of great fanfare or an extraordinary venue, but because of the generous hospitality extended to the guests and the messages conveyed to them:  we’re glad you’re here, we care about you, you are helping us accomplish great things, and we thank you for building the endowments that help sustain our programs and outreach.

This organization got a lot of things right with this event. First and foremost, the hospitality was superb.  

• A staff member greeted arriving guests in the parking lot and directed them to the reception area. 
• Golf carts transported those who needed assistance. 
• Name tags (with sufficiently large print!) were provided to all guests and staff.
• Overnight lodging was arranged for those who had traveled a distance. 

In addition to making all guests feel genuinely welcomed and appreciated, the organization impressively carried out several other aspects of this “thank you” event for members of its planned giving society. 

• New members of the society were introduced. 
• Members of the society who had passed away in the past year were remembered.
• The president of the organization, not only extended his gratitude to the members for their support, but inspired them with his remarks about the lives impacted and the exciting opportunities made possible by their generosity. 
• A print annual report, listing members, summarizing the different programs and activities funded by endowments, and offering a brief recap of the endowment’s growth and performance during the past year, was distributed to guests. 

One last highlight of this well-planned and executed event was the featured speaker at the after dinner program — a recent alumnus of the school.  He acknowledged that as a student he did not realize how endowed funds were influencing his education and he gave personal and concrete witness to the impact of endowment-building through planned giving.

• Endowed scholarships not only directly assisted him, but they also promoted greater diversity within the student body. 
• Endowed faculty development funds helped the school retain a top-notch faculty.
• Lectures presented by outstanding speakers were made possible by endowments, as were study abroad opportunities. 
• Even today the alumnus benefits from planned gifts to his alma mater by way of a continuing education program in which he is currently participating and for which the school is building a sustaining endowment. 

Yes, this organization offered its planned giving donors a memorable evening because it did several things right. 

• It executed a well-conceived plan. 
• It attended to the details of hospitality. 
• It enabled donors to hear and see in a very personal way how their planned gifts were assisting others.

I hope you can find ways to incorporate some of these key elements of hospitality into your own donor recognition events.