For the PDF version, click here: So How Does Your Board Evaluate Its Own Fundraising Success – AP SepOct 2012
For the PDF version, click here: So How Does Your Board Evaluate Its Own Fundraising Success – AP SepOct 2012
There was a wonderful article in the Union Tribune about me by Henry DeVries. Check it out below or here.
Many fundraisers feel that having an inadequate number of staff members who know how to garner donations is a key internal challenge holding their non-profit organization back from making more impact, according to a national survey of fundraisers.
A 2012 Web poll from the Association of Fundraising Professionals described the challenges of raising money in a down economy.
Along with inadequate staffing, another top concern among respondents was that their board members do not have sufficient understanding of or involvement in the fundraising process. Many fundraisers view board support as critical to their efforts of outreach and relationship-building with donors as they work to clearly articulate the organization’s strategic vision connecting donations with community impact.
“It’s tough out there,” admits fundraising consultant, Renee Herrell. “Many nonprofits have lost significant amounts of funding as large, single sources of funding were suddenly gone. But it’s not always a bad thing. Nonprofits will now have to work hard to stay in touch with their individual donors. They’ll be forced to develop even more transparency than they’ve ever had before. But, despite economics, those with wealth are still philanthropic and if you can connect with them, there will be funding.”
Herrell believes returning to school for her certificate in Fundraising and Development was a turning point in her career.
“The education helps a lot,” says Herrell, a former UC San Diego Extension student-turned faculty member. “Fundraising and development classes weren’t offered until the 1990’s. Previously, the knowledge of how nonprofits acquired their funding was typically obtained through on-the-job experience.”
This career path made attending UC San Diego Extension for a Certificate in Fundraising and Development a no-brainer for Herrell. After UC San Diego, Herrell went on to get a master’s in nonprofit management and leadership from the University of San Diego in 2006 and became a Certified Fund Raising Executive in 2008.
Despite her continuing education, the road to fundraising success has not always been easy. Herrell had what she calls a “bittersweet moment” at the end of 2008 when she was forced to close the nonprofit she established in 2003, the San Diego Women Film Foundation – a nonprofit established to promote women making film through an annual film festival and educate young women in the technical skills of filmmaking through after school programs. “It was a great learning experience to start something that I was passionate about, serve in it and then ultimately close it. Sometimes no matter what you do, it’s just time.”
Herrell also offers nonprofits expertise through her company, RCH Consulting, Inc. She’s helped numerous nonprofits with their donor development, fundraising initiatives, feasibility studies, capital campaigns and strategic planning.
“If you believe wholeheartedly in your cause as a fundraiser, that authentic passion shows through to your donors,” advises Herrell. “Add to that passion, the skills and tools learned through UC San Diego’s Certificate in Fundraising and Development, you will be very successful in the nonprofit sector. ”
When the economy began to turn for the worse, nonprofits saw their corporate partners pull back on their giving. While, corporations don’t give for the “tax-deduction”, they enjoy the community visibility can receive for their donation often in the form of an event sponsorship. The corporations association with doing good work in the community can also provide goodwill in the form of customers.
Recently, we have seen that corporations are including a philanthropy component in their business model by actively supporting their chosen nonprofits. Can an active role in the philanthropic world ultimately do good and attract more customers for these businesses?
One of the leaders, TOMS Shoes has a “one for one” philosophy. For every one pair of shoes purchased by a customer, TOMS Shoes will donate one pair of shoes to a child in need. Same with their newly launched eyewear line: “With every pair of eyewear purchased, TOMS will help give sight to a person in need.”
Instead of becoming experts in delivering nonprofit direct services, TOMS Shoes partners up with humanitarian organizations worldwide that provide new TOMS Shoes to children along with their own health, education and community development programs. TOMS Shoes Founder Blake Mycoskie “We’re here to do more than to give. We’re here to learn about the needs of these communities; to listen and to act.”
While other wineries like FlipFlop Wines donate a portion of the proceeds to one charity: Soles4Souls, (http://www.soles4souls.org) the international shoe charity dedicated to providing footwear to those in need. Their goal is to provide one-pair of flip-flop sandals for each bottle of wine purchased last year up to 100,000 pairs for the first 100,000 bottles sold. Melanie Amezaga, Brand Manager for flipflop says “Partnering with Souls4Soles was a natural fit and is as simple as allowing those who enjoy a good bottle of wine to also make a personal difference in the lives of countless others.”
Since 2005, Soles4Souls has delivered over 16 million pairs of new and gently worn shoes. The shoes have been distributed to people in over 125 countries, including Kenya, Thailand, Nepal and the United States. “The reality of life for many individuals in developing nations is that having a pair of shoes is a rarity. It is not uncommon for children to grow up in these areas without ever having had a pair of shoes at all.”
“Fans of our wine buy and drink our wine because they love it. The philanthropic component is a bonus to them.”
-Kat McDonald, Art+Farm Wine, Napa, CA
In recent years, winery philanthropy has increased by making donations to designated charities through their sale of wine. Interesting concept. In most cases, a certain percentage of each bottle sold goes to a charity like in the case of ONEHOPE Winery (http://www.onehopewine.com), a wine made in partnership with Winemaker Rob Mondavi Jr. in Napa Valley, who gives 50% of profits from each bottle sold. Their mission is two-fold: to create high-quality wines that will raise awareness and give back to noteworthy causes year around. In 5 years, they have donated over $750,000. ONEHOPE pairs their wines - not with food – but with specific causes. Their California Sparkling Wine will help stop childhood hunger; Sauvignon Blanc: Environment, Gold Medal Long Beach Grand Cru Chardonnay: Breast Cancer, Gold medal OC Wine Competition Cabernet: Autism, Gold medal OC Wine Competition Merlot: AIDS, Gold Medal Long Beach Grand Cru Zinfandel: Our Troops, Silver Medal National Tasters Guild.
Napa-based and environmentally conscious, Art + Farm (http://www.artfarmwine.com), maker of famed the Girls in the Vineyard wine, allows the customer to designate the charity with their purchase of wine. Since 2008, they have made over $100,000 in donations to over 110 of charities all over the US with an average donation of $2 on an $18 bottle of wine. They opted to let the wine consumer choose the charity because Kat McDonald, owner and winemaker, felt there are “so many good causes doing amazing things. We have our favorites: our children’s schools, educational foundations-but it seemed presumptuous for us to choose. It means a lot of work on our part. We write tons of checks! But it gives us a thrill each time.” They also learn about new charities that they have gone on to support in other ways through donating wine and volunteering their time.
Kat explains that making philanthropy a key part of their business plan was easy: “From case one we had a philanthropic component. As a business and a family we are part of a bigger community and with that comes an obligation to that community. It was also a natural outgrowth of who we are as people and business owners. Our winery partnership started with a conversation about making wine as a fundraiser for our children’s school. We wanted a philanthropic component that was sustainable and could make a difference.”
High school sweethearts, Kerith and Brian, fell in love with Napa (apparently in the town’s Mental Institution park) and started Bruliam Winery (www. bruliamwines.com) as a fun project with 25 cases of wine… that has quickly grown into something much more serious with 400 cases of wine this year. Even more impressive, is that they have a mandate to donate 100% of their profits to charity. Yep, 100%!!
“We don’t aim to make money with Bruliam Wines,
we try to break even on our direct operating costs
(buying fruit, barrels, custom crush fees, etc.)
and then give the rest away.”
Due to their previous professional success, Kerith and Brian pay for much of the expenses out of pocket and Kerith does not draw a salary. “It’s all a labor of love so we’re happy to do the work for the rewards we’ve already been given and the non-economic rewards that come to us from this endeavor (lasting friendships, professional and personal growth, and the opportunity to raise our kids with an appreciation for hard work and giving back).”
Bruliam asks their supporters to decide where the money goes (usually in tranches of $250-$1000). To date, they’ve donated to about 40 different charities http://www.bruliamwines.com/bruliam-beneficiaries/ recommended by our supporters for a total of approximately $20,000. The generosity doesn’t stop there. Brian reports “in the years where we didn’t have any profits, we dipped into our marketing budget and spent that on charitable donations instead.” Yep, generous!
They see their philanthropy “as a way to explore a shared passion, to teach our kids about philanthropy and following your dreams, and to give back to our communities.”
“Kalyra has always tried to be tied into the community in different ways.
Most of the philanthropic choices stem from things that are near and dear to our hearts (cycling, children’s education, etc.). Making a special wine for a fundraising cause is a natural fit for a winery.”
There are a number of “winemaker” families in the Santa Ynez area who have kids at Ballard School. Kathy Brown, owner of Kalyra with her husband Mike, said: “We were just sitting around brainstorming and my husband Mike just threw out the idea of asking all the ‘wine’ families if they would be willing to donate a bit of bulk wine to make a wine to benefit the school.” Not surprisingly, the winemakers all agreed to chip in with Mike doing the legwork of blending, bottling and labeling the wine. Since the release of this vintage, they have raised $6,000 for the School.
Their next project? Arts Outreach, a non-profit in the Santa Ynez Valley that brings art to the schools and elderly. Arts Outreach holds an annual fundraiser called Real Men Cook and Kalyra will be selling the “Arts Outreach Red” at that event as well as at the tasting room. Five other wineries have donated bulk wine to make the blend and we are doing the blending and bottling. As funding has been cut and/or eliminated in the public schools we feel a huge obligation to help organizations that are trying to bring these important parts of education to our children. Kathy and Mike have a vested interest: “We want our kids to have art in school – so we feel very strongly about helping in any way we can.”
The launch of a capital campaign is exciting and filled with hope. Six- and seven-figure dollar gifts are being solicited pushing you quickly towards your financial goal. Like my clients, I am inspired during this time and caught up with the fever of success.
At a certain point, the large donations have all been solicited and the campaign isn’t operating at the same fever pitch. At this time, the goal may be continuing to increase but at a much slower pace. This is where I am often brought in as a consultant to be the “clean up hitter” on the team.
Based on my experience, here are some ideas for pushing forward during a capital campaign:
1. Make new friends.
Once you have solicited your inner circle of donors, you are going to need to cultivate additional donors by expanding to your outer circles. Ask you current donors to host small receptions in their homes with their group of friends and neighbors. This exposes your organization to potential donors they would have never had the chance to meet. Additionally, ask you inner circle to bring their friends out for a tour of your facility or join you at lunch to learn more about the capital project.
2. Look to different sources of funding.
As you near the end of your campaign, private foundations are often interested in helping through grants for specific projects within the campaign. The Kresge Foundation was infamous for its matching challenge portion of its grant making. When I worked with both the Boys and Girls Clubs of Southwest County and The ARC of San Diego, they successfully applied and received funds from the Kresge Foundation. This match funding, gave both organizations an opportunity to solicit donors to give to the match. When donors know their money can be matched 1:1, they are more likely to give. (Note: Unfortunately, Kresge doesn’t make capital grants any longer.)
3. Re-visit your donor list (again).
Often names on a donor list get pushed down to the bottom because we are unsure of their capacity to give or how to engage them as potential donors. So, do your homework either through free online resources or software like Wealth Engine to determine each individual’s capacity to give. Once you have an idea of who could make a significant gift, prioritize those who have the closest relationship to your organization. Next, determine what cultivation each individual needs in order to be solicited. Let no individual go untouched. Reach out to everyone, but in priority order starting with those individuals who have the best relationship with your organization, followed by propensity to give.
4. Ask your inner circle to give again.
Re-soliciting campaign donors who have already given is a harrowing thought. Many fundraisers worry if they will offend their current donors and ultimately jeopardize a current pledge. Let me share two successful stories of a re-solicitation in a campaign.
At the Colorado Rocky Mountain Schools “Forging the Future: Preserving the Past,” one of the Board (and capital campaign committee) members was eager to see the next phase of the campaign completed and knew that her increased pledge could make it happen. She generously offered to double her half million donation for a total of one million. She then went and asked two other Board members to join her by giving again.
On the homestretch to raising the last one million of a $17 million campaign for on the Boys and Girls Club of Southwest County’s “Campaign for Kids”, we solicited the Board to make an additional donation to the campaign by adding one more year to their pledge payment. If they had committed $50,000 over five years, we asked for $10,000, adding one more payment onto their pledge. In the end, we were able to raise an additional $250,000 towards the campaign.
Above all, stay positive. Jim Lord, author of The Raising of Money, says, “For people to work effectively within our structure, we also want to create a positive climate – a climate of optimism, enthusiasm and confidence. Good things rarely happen in a bad atmosphere.”
Recently, I read The Raising of Money by Jim Lord to prep for a Board meeting client training. Although the book is extremely short and an easy read, I went ahead and made a Book Summary (below) as a cheat sheet just in case any of the Board members did not get a chance to speed read the book.
Working from the Perspective of the Donor
Getting People Involved
Setting the Pace for Giving
Applying the Campaign Principle
Asking for Money
Kindling the Spirit of Philanthropy
Recently, I have been working with the missions team at my church and helping individual missionaries fundraise for their work. While I know very little about missions fundraising, I do know some extraordinary missionaries who helped me with great ideas for fundraising. I owe a BIG thank you to Rachel (pictured below with me) who planted a church with her husband Mike in Cork, Ireland.
Here’s a few ideas on how to kick off your fundraising if you want to serve as a (funded) missionary in the field:
Idea #1: Gain support of a church as a paid staff missionary. In this case, individuals in the church will give as they feel led (through the church), and the church will make up the difference from the general missions fund so the missionary receives the same amount each month.
Idea #2: If paid staff is not an option, gain speaking presentations at a number of your “hometown” churches; craft unique and appealing donation requests to offer during presentation as well as donation cards/envelopes.
Idea #3: Create a social media profile in order to share your work with potential donors.
Idea #4: Gain donations from your friends, family and their friends and family.
Idea #5: Gain online donations from anyone and everyone.
Idea #6: Invite churches and youth groups to take a mission trips from US churches to your mission location. This will provide exposure to your work by potential donors. Also, consider requesting a donation from each group that visits you.