by Melanie Norton

I was fortunate to attend the National Conference on Philanthropic Planning last week inSan Antonio,Texas.  The Partnership for Philanthropic Planning (PPP), formed in 1988 as the National Committee on Planned Giving, hosts this annual conference for the variety of professionals whose work involves charitable gift planning. 

The annual conference is always an energizing opportunity to learn from and network with others who devote their time and energy to making charitable giving more meaningful.  I’m always impressed with the variety of gift planners, major gifts officers, financial planners, attorneys, accountants, consultants and other professionals who attend and make this such a rewarding experience.

There were many common themes among the participants this year, but there remains an overriding desire among professionals to provide solutions that are in the best interests of both the donor and charitable entity, to do so in the highest ethical manner, and to seek closer relationships among all of the parties in the charitable process.  

As uncertainty prospers, planning and staying ahead of the educational curve is becoming increasingly important.  But, in this era of tighter budgets and fewer staff, breaking away to indulge in professional development is difficult at best.  Staying on top of the latest information takes real dedication. 

The PPP website offers helpful tips for those who might need extra support convincing his or her boss that a conference or other educational opportunity is a good investment.  Consider sharing the following benefits:

• The opportunity to learn about new approaches or tactics developing in response to donor demographics, economic conditions and legislative/regulatory developments
• Contact with the nation’s leading experts in the field
• The ability to converse with quality service providers and vendors, as well as solicit feedback on their services from other attendees
• The occasion to dialog with fellow professionals – sometimes before and after the event – who do similar work
• Access to materials, both online and in person, for future reference and sharing with internal staff

Perhaps one or more of the above arguments will help you make the case for your next development opportunity.  Take the time to refresh, learn from the best minds in the business, and form meaningful relationships with your professional colleagues.  These investments of time and resources will serve both you and your constituents well in the future.

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 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.

by Ted Grossnickle

JGA and Achieve have worked to understand the ways Millennials engage, volunteer and give because we see the important role this audience of 20 – 35 year olds will play in the future of philanthropy.

But we have seen many organizations struggle to make the case that Millennials matter. What we are learning is that for some non profits, there is a real divide or obstacle to changing their practices to meet the needs of this growing group.

We frequently hear in board meetings and among development staff that they don’t see the value in focusing time or efforts on trying to understand or engage this generation.  The mental calculus seems to be: “Well, they are not giving that much money right now and I have larger more pressing things which command my attention.”

Old habits are tough to break.  Experimenting with new approaches and moving away from “this is how we’ve always done it,” may mean changing how you are funded and approved in your work.

For these reasons, there remains a contingent of those in charge of advancement or volunteer efforts that just don’t pay much attention to this generation of future donors — a decision that will undoubtedly have repercussions later.

So whose fault is this?

It might be that some of your colleagues don’t understand that persons this age do want to be engaged and involved and simply require some new ways to get them to do so.

If it’s a question of not understanding how to engage them, I urge you to look at recommendations provided in the 2011 Millennial Donors Report or join us for MDS11, a virtual conference and conversation on exploring new methods of engaging Millennials.

But it might be something else.

Suppose we do a better job of conveying to our colleagues- those in charge of advancement and volunteer efforts- that this is ALL about the future?

Have you talked with your colleagues about the following?

• What percentage of your donor base are aged 20-35?
• How many are visiting, volunteering or giving right now?
• How many email or cell phone numbers do you have for them? Are you making strong efforts to even capture those?
• Have you shared the 2011 Millennial Donor Report or a summary with them? With your advancement committee? (It’s available at www.millennialdonors.com )
• Has your volunteer committee asked for a plan to engage younger donors and friends?

And this…

• What happens to your millennials if you don’t capture them? Who will?

Maybe it’s time you learn to make the case for the future…

by Ted Grossnickle

A recent NY Times article articulates something we have seen growing the last several years in the world of philanthropy . . . more donors desiring a louder ‘voice’ in how their money is spent.

In “Donors Demand a Bigger Voice in Catholic Schools,” Paul Vitello captures issues we hear frequently in our discussions with major donors. Impassioned donors today are less willing to sit by the sidelines, write a check and hope for the best.

More people today approach philanthropic decisions as they do major business decisions.  They want to see ROI.  They want to know their funds are being used efficiently and effectively to have a material impact on the issues they support. And to some extent, that is really a good thing.

The question for non-profits is how to facilitate and engage with this desire for input.  How do we provide meaningful involvement for major funders that facilitates input and discussion rather than a dynamic of dictatorship? Or one way conversations?

Part of the solution, as noted in the article and implemented by the New York archdiocese school system, is appropriately matching those donors who wish to be more involved with those areas where they can implement more change. In New York, this involved matching donors with schools in an “adopt-a –school” type program where donors are given greater input into the nuts and bolts operation of the schools.

Managing the solution, however, demands that you have enough of a relationship to have authentic dialogue with your major donors. And it also means as a donor you had better be prepared to learn. What works in your business does not automatically work in a non-profit!

It is the dynamic between a non-profit CEO and a major donor that is really at issue.  Are you willing to spend the time it likely will take to be able to speak honestly to one another about how gifts can have their best and largest impacts? It means the CEO must let the donor know about how the organization really does its work. And the donor has to keep an open set of eyes and try to understand the context in which the organization must perform its mission. 

This stuff takes time.

It can make a huge difference.

By Andrew Canada

Budget cuts, tuition increases, reduction in services offered, staff furloughs and reductions in force seem like common titles to news articles these days.

The changes that have taken place in our economy the past few years have drastically altered the way all organizations make budget and staffing decisions. What role will philanthropy play in how these key decisions are made?

Many organizations are hoping donors will help make up the deficits their budgets are facing, and so are increasing the goals placed on their fundraising staffs.

However, are they making strategic decisions and providing fundraisers with the resources needed to reach these new expectations?

In a recent article for the New York Times, Lisa Foderara talks about the decisions many public universities are making in her article “Amid Cuts, Public Colleges Step-Up Appeals to Alumni.”  She discusses how schools are looking for ways engage their alumni and encourage their support to help relieve their budget shortfalls.

Organizations have to make strategic and sometimes difficult decisions. It is not an easy or popular decision for a President to hire more development staff when they are either cutting or not hiring new faculty members.

But in order to meet the new goals, this is what many institutions are doing. Without proper staffing and resources, development staffs cannot reach the ever increasing needs of their organizations.

It would be wonderful if there was enough private support to make up the shortfalls facing organizations today, but this does not happen overnight.

It takes time and hard work to engage potential donors with your organization. Your mission and case for support has to be sharply focused and you have to prove your organization is a solid investment. Donors are taking longer to make major philanthropic decisions and they are viewing their gift as an investment in the future of not only your organization but also their community. 

Investing more in your development staff can be a strategic investment, but don’t look at it as a quick fix for today’s budget woes.

By Dan Schipp

The other day someone reminded me of the “Rule of Three.”  The rule states that if you want someone to remember something, break it down into three key points. 

Since  lately I’ve led several development staff training sessions on gift solicitation, I thought I would write about the three most important things to keep in mind when soliciting a gift for your nonprofit organization.

The three keys are:  plan, engage, ask.

Before even picking up the phone to call for an appointment, make sure you have a plan for the meeting and have taken the time to determine the desired outcome. 

• What do you want to accomplish? 
• What are the primary messages you want to convey? 
• Who, if anyone, should accompany you in the call? 
• What questions and objections might you encounter and how will you respond to them? 
• What will be the amount of “the ask”? 

Don’t go into a meeting with a prospective donor without having a strategy for the conversation.

Engage the prospect.  Avoid letting the conversation become a monologue.  As you make the points for investment in your organization, seek feedback from the prospect.  Ask for their views on the points you are making.  Listen and respond to their interests and concerns.  The more you can get them actively involved in talking about your organization and its plans for the future, the better your chances of having a successful outcome to the conversation.

Finally, provided you have not heard anything in the meeting to cause you to think this is not the right time to move forward with a request for support, make the ask clearly and confidently.  Lead into the ask by asking permission of the donor to solicit a gift:  “In light of the discussion we have just had about the impact that XYZ organization is having on health care in our community, may I now speak with you about a gift to support XYZ’s work?”  Then ask for a specific gift and having done so . . . stop . . . be quiet . . . let the prospective donor be the next one to speak.

That’s how I would apply the “rule of three” to philanthropic gift solicitation – plan, engage, ask. 

What do you see as the keys to successfully soliciting financial support?

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.

by Kris Kindelsperger

A Double Dip for the Summer?

In my last blog I wrote about the impact of what some have called the loss of “psychological wealth.”  I described how donors a year and a half ago had described despair which was followed by concern and with the relative recovery in the market had moved to cautious optimism about their philanthropy this spring.  A new factor appears to have emerged this summer; the fears of a double dip in the recession.  I spoke to a small business owner who is heavily dependent on the construction field.  He told me about the apparent upswing in his business this spring which has for all intensive purposes evaporated this summer due to concerns about both the slowness of the economic recovery and the potential for another down turn. 

So add “double dip psychosis” to the lexicon of philanthropy.  Will there be a genuine worsening of the recession that will qualify in the language of economists as a double dip or will double dip be confined to your order request at the ice cream parlor?  What’s your opinion?  

“Let Kris know how helpful  A Double Dip for the Summer is for your organization and share your results by posting in the JGA comments section below.