The Biggest Mistake: Jerry Koontz Talks About Fundraising

In a new series of blog posts, we're asking seasoned nonprofit leaders in our area to share what they view as "The Biggest Mistake" when it comes to raising money. To kick it off, we've posted an insightful perspective from Jerry Koontz, President of United Way of Manatee County:

Fundraising is much more an Art than it is a Science, and that makes it somewhat of a challenge to identify which are the biggest mistakes one can make that impact being successful. However, I welcome this opportunity to share what I consider to be two mistakes that merit your attention.

Assuming all donors are alike.  No two donors are exactly alike. For example, they have different priorities. What is an important Cause to one, might not matter to another. Most want to be recognized and thanked for their contributions, while some wish to remain anonymous. Almost without exception, donors want to know what was accomplished with their contribution. So, it is critical to do as much as you possibly can to know your donor, and respond accordingly.

Not asking/not making a good case for support. In fundraising, it is commonly accepted that the primary reason for not contributing is not being asked. Ask yourself, how often have you contributed to something without being solicited? So, do the Ask. While I believe that most people have what I call a Charitable Giving Need, they are often not sure how to best satisfy that need. Two things are important: a Cause that is worthy of their support, and the assurance that a very high percentage of their gift will go to that Cause and not be diminished by excessive administrative costs. If you don’t make a good Case for Giving, and can’t demonstrate low overhead, you most likely will not get the gift.

I will close with a true story that supports the importance of knowing your donor. An executive of a non-profit was calling on a prospective donor hoping to get a sizable contribution. The prospect asked, “How much do you want?”, to which the executive cautiously replied “$10,000.” The prospect asked, “Is that all?” At the end of the discussion, the prospect pledged $1 million.

Many thanks to Jerry for taking time out of his sharing his experiences with us. Check back soon for the next post in The Biggest Mistake series.

Would you like to be a guest blogger for The Biggest Mistake series? Let us know!

Is it Ethical? by Norman Olshansky, President & CEO, Van Wezel Foundation

One of the most important aspects of being a member of AFP is our commitment to the Code of Ethics of our profession. The code has been one of the most significant elements that establishes fundraising as a respected profession. It has set us apart from hucksters who are unprofessional and unethical…….those who are willing to do anything with or for donors in order to raise funds for their “charitable” endeavors.


Unfortunately, the code only applies to members of AFP. However, by upholding our ethical code, being positive role models and educating the public, we raise the overall level of professional and ethical fundraising in the communities we serve. We have an obligation to not only instill ethical behavior within the organizations we serve but also among donors and others involved in the nonprofit sector.

As many of my colleagues are aware, for many years I was involved as a consultant with clients around the Country and was unable to be very involved locally with AFP, even though I formerly served on the Board of our chapter. Since joining the staff of the Van Wezel Foundation, a fundraising ethical issue came up which may be of interest to you, my colleagues.

Evidently, there is a history where local commercial magazines sponsor events with nonprofits with the proviso that no other magazine be allowed as sponsors. In other words, they ask for and receive an exclusive relationship. The Van Wezel Foundation, in the past, has also accepted such arrangements. When I came on board, I felt that exclusive relationships posed an ethical issue and have stopped the practice.

Are such “agreements” a violation of our code of ethics?

I feel that if we allow exclusivity with a commercial enterprise we end up telling other donors from a similar industry that we can’t accept their comparable donation or sponsorships. My position is that donors who care about our mission should be welcome and recognized appropriately. It would be like a lawyer or doctor telling a nonprofit that they want an exclusive relationship with the organization, thus preventing the organization from accepting and recognizing other gifts from those professions.

The very first two sections of our code state:

1. Members shall not engage in activities that harm the members’organizations, clients or profession.
2. Members shall not engage in activities that conflict with their fiduciary,ethical and legal obligations to their organizations, clients or profession.

One might take the position that the code only applies to individual members and not nonprofit organizations. While an organization may not be subject to the code, AFP members in that organization can indeed be held accountable for actions in that organization.

Is it a violation of the Code for a member to go along with an unethical activity, policy or behavior which is the decision of and implemented by others?

If we do not stand up for ethical behavior in the nonprofit sector, who will? If we observe or learn about unethical behavior shouldn’t we try to educate and work towards the elimination of that behavior?

It is with the above in mind that I want to stimulate a discussion about exclusivity practices requested by donors. It’s hard for an individual member to change a long time practice in a community but if we agree, as a group of professional colleagues, that such practices are inappropriate, even if not technically unethical, we can indeed influence change.

What do you think? Would your organization accept such a requirement from a donor? If so, under what conditions? If not……….why?

Are there other issues involved with this example that have not been addressed above? What if it were your largest donor who set such a condition on their gift?

In our case, following a serious discussion and educational session with the magazine, they backed down and we now have several magazine media sponsors of our gala.

I would suggest that we as professionals need to avoid even the slightest perception of ethical impropriety and by challenging these practices, we help to educate the donor community how we are different from the profit making world where these practices are common and within ethical business practice. I don’t blame the companies for asking for preferential treatment but that doesn’t mean we have to accept the practice.

What do you think?
 
 
Norman Olshansky is the president and CEO of the Van Wezel Foundation.

Good Times at the Fundraisers Forum

The annual Fundraisers Forum, a partnership of our local AFP chapter and the Community Foundation of Sarasota County's Nonprofit Resource Center, embraced over 220 development professionals and nonprofit leaders on July 9, 2010.

Headliner Penelope Burk shared the latest from her donor research to an enthusiastic crowd, and a panel discussion moderated by Cliff Roles on the future of philanthropy provided insights into the good and the bad of today's still struggling economy. Cecy Glenn, CEO of the United Way of Charlotte County, Jerry Koontz, President of the United Way of Manatee County and Stewart W. Stearns, President Emeritus of the Community Foundation of Sarasota County made sure the trends were reflective of our tri-county area.

Special thanks to breakout session leaders Mark Brewer, CEO of the Community Foundation of Central Florida; Carol Butera, CFRE of Children First; Bart Tryon, CFRE of Philanthropy Management; Karin Gustafson, CFRE, President of the YMCA Foundation of Sarasota; and Richard Gans, Shareholder of Fergeson, Skipper, Shaw, Keyser, Baron & Tirabassi, P.A.

Shout outs to Manatee Educational Television for taking such great care in filming the event. What a crew! The staff at Anna Maria Island Community Center made the day especially nice for us. We thank Pierrette Kelly and committee members Donna Dunnio and Laura Breeze, CFRE for working with the NRC team to plan such a great day.

Carol Butera, CFRE and Bart Tryon, CFRE talk about major gifts.

Melissa Burtless, Chief Development Officer of Girl Scouts of Gulfcoast Florida and Jeanne Dubi, President of Sarasota Audubon Society

Jane Lautner, Director of Annual Gifts of the Pines of Sarasota Foundation

Sharna Finkelstein, Program Assistant at the Nonprofit Resource Center, with Laura Breeze, CFRE, Advancement Director of the Education Foundation of Sarasota County

 

Charles Clapsaddle & crew of METV stayed with us all day for filming and interviews with attendees.

Liz Shirley of the Animal Rescue Coalition with father Jim Shirley, Executive Director of the Sarasota County Arts Council

To all those who joined us and to those who did not, happy fundraising and we'll see you at the Forum next year!  Until then, stay plugged in with all of the interesting and essential topics covered in our regular professional development luncheons.

AFP Peers Coming Together: New Mentorship Program!

There's good news for AFP members who want to boost their professional development: a new FREE mentoring program is available to you.  This is your chance to receive personalized feedback, direction and nurturing to build your career and become a more effective fundraiser.

If you have 1+ years of experience in fundraising, let's talk.

Here's how it works:

• You will identify a project or 1-3 specific goals you hope to accomplish during the year. Where do you want to be in your career in 2 years? What specifically do you need to master to serve your institution more effectively?
• AFP will match mentees with mentors by considering appropriate relative levels between mentor and mentee, geography, subject matter to be worked on and matching people from organizations that are mutually illuminating while not being competitive.
• Mentor/mentees meet at least monthly and probably connect more often via phone and/or email.  Communication is confidential and structured enough to ensure progress but open enough to foster communication and evolve as needed.

Are you a senior development professional? We need you as a mentor!  Mentors should have 5+ years in development, a desire to help the next generation of fundraisers, and a willingness to focus on the mentees goals and needs and help him/her achieve them. This is an opportunity to share ones knowledge and nurture the next generation of nonprofit leaders.

For more information and to get involved as a mentor or as a mentee, contact Mary Saionz at Mary-Saionz@smh.com or (941) 917-1286.

Analytical Skills vs. People Skills In Fundraising

What are the "new" skills fundraising professionals need to survive in the high-pressure, high-expectation environment of today's nonprofit world?

We're grateful for AFP's emphasis on ethics and professional development. The organization has done so much to elevate awareness of fundraising as a profession, not as an activity. And as such, we know our own skills are constantly growing and evolving--they must.

Holly Hall wrote a piece in the Chronicle of Philanthropy (April 4, 2010) discussing analytical knowledge, entrepreneurial skills and cross-cultural knowledge as hallmarks of the modern fundraiser.

"People still give to people; they don't give to data," Kimberly Hawkins said in her letter to the Chronicle of Philanthropy in response to this recent article.

Hawkins argued that all of the skills Hall referred to are needed in the development department but requiring too much of a single person may seriously impact their effectiveness at anything. She sites burnout and turnover as results of these unrealistic expectations.

Read her letter, Jacks of All Trades May be Masters of None, and let us know what you think. How much is too much?

Millennial Donors Want Engagement on Facebook, Right? Think Again.

Maybe. But if you want to really engage them, they put a very high value on face to face time.


There's a new study fresh off the press that every AFP member should read. The 2010 Millennial Donor Study, conducted by Achieve and Johnson Grossnickle Associates (JGA), reports findings from more than 2,200 people between the ages of 20 and 40 across the U.S. about their giving habits and engagement preferences. 75% of survey participants fell into that mysterious age group of high powered texters and savvy multi-media users, the millennial generation--otherwise known as Generation Y.

Basically, the study found that when Millennials get involved with a nonprofit, in addition to giving financially, they want:

• To affect change
• Create direction
• Access to the organization’s leadership

Woah! Are we ready for those things? We better be, if we want to influence and attract the next generation of donors. Although they may not have a lot of money to give now, they will. And they're growing up fast, getting into the stream of the workplace and influence many others.
Here's some of what stood out to me:

• 91% of Millennial donors are at least somewhat likely to respond to a face-to-face request for money from a nonprofit, with 27% being highly likely to respond. Only 8% are highly likely to respond to an e-mail request. YET, E-mail is Millennial donors’ most preferred communication method, with 93% of respondents favoring it for receiving information. Facebook comes in at only 23.8%.

So Millenials prefer e-mail communication, but only 8% are likely to respond to an e-mail request? This will take some consideration from our nonprofits. Any thoughts?

• 71.9% of Millennial donors don’t need to volunteer for an organization before they donate.

That was a shocker for me!

• 75% of Millennial donors are at least somewhat interested in working closely with organization leadership to define the direction of the organization or helping the board create solutions to challenges. Maybe not a huge surprise, but how do we engage them? Community Youth Development is a good local source.

So what are factors that influence giving?

• Millennial donors say they would be likely or highly likely to give if asked by a family member (74.6%) or a friend (62.8 %). Only 37.8% would be likely or highly likely to give is asked by a coworker. Hmmmm....interesting. So we still need to keep their parents in mind but ALSO remember to ask our current donors to share their charitable passions and organizations with their kids. Big one.

There are lots of other jewels in this report. Hope you'll check it out and post your comments on the AFP blog.

What are your thoughts? Any experiences with this at your nonprofit?

-Susie Bowie

How to Justify Your AFP Membership Fee

Here are ten ways that AFP provides value to nonprofit organizations. As an AFP member, the value of any one of them far exceeds the cost of an individual’s membership dues. Together they make a smashing investment.

1. What is Philanthropy? Many people wonder if it has something to do with stamp collecting. AFP activities help to deepen the community’s understanding of the philanthropic process. Why do people give? How do nonprofit organizations receive the resources they need to accomplish their missions? Why do they give to specific organizations? The more they know, the more they give.

2. Professional and True. AFP conveys fundraising as professional process that helps nonprofits to obtain income to achieve their missions. A surprising percent of the population believe that nonprofits raise all the money they need by selling candy bars in front of grocery stores on Saturday mornings. The more the community understands nonprofit income sources and how they can participate, the better for the whole nonprofit community. AFP leads in the growth of this understanding and in professionalizing fundraising.

3. Trust Me: Fundraising is built on public trust. AFP provides a Code of Ethics that enhances trust. In addition to candy sales, people also believe that fundraising is the telephone call that interrupts their dinner. The caller implies he is with law enforcement. However, the people holding their forks suspect he’s a hired gun for a for-profit that will receive most of the money raised. The code of ethics supports the elimination of unethical fundraising.

4. Pondering Challenging Questions. Through meetings, telephone seminars, conferences and literature, AFP members ask and confront ethical questions –in advance. These questions explore how money is raised and the appropriate behavior of donors and nonprofits. The right ethical answers in your organization come from living with these questions and answers frequently. AFP helps nonprofit professionals to examine these important issues.

5. In-depth Knowledge. AFP provides you access to information when you need it. For example, when you have a crisis (and if your nonprofit eventually will) AFP provides access to multiple resources, including a library, about how to respond, how to strengthen your organization and how to help your donors to understand the situation.

6. Ideas. Participating actively in AFP events will give you new fundraising ideas to adapt and try at your organization. If you regularly attend meetings and read publications all year long, this is guaranteed.

7. Rights. The AFP Donor’s Bill of Right provides guidelines to fundraisers on how to build deeper and better relationships with donors. The Donor’s Bill of Rights helps nonprofit professionals. It also helps your donors to understand their relationship to your organization and deepens the respect they hold for each other.

8. On-task. Regular AFP activities help the fundraising professional to stay focused on relationships. For almost all of us, it is easier to stay in the office and organize files and databases than take the risk and effort to establish new and deepen existing friendships. The monthly meetings remind us, inspire us and fortify us to return to the field to meet with the community and potential donors.

9. Networking. One of the best benefits of membership, cited by members, are the networking opportunities. You meet people and have a chance to interact with others who have experienced or are going through similar fundraising challenges.


10. Return On Investment. In a recent newsletter for the Southwest Florida AFP chapter, Julia Steele wrote, “This year marks AFP's 50th Anniversary, and the Association of Fundraising Professionals, an international organization with 207 chapters and 30,000 members worldwide, continues to be the standard-bearer of professionalism in fundraising. Established in 1988, the Southwest Florida chapter represents more than 130 diverse professionals in a four county area who share a commitment to promote philanthropy through ethical and effective fundraising.”

How can you justify your membership to AFP? Consider the reasons above and add you own. Then, for the final justification do the math. AFP membership dues cost less than $300 –and you plan to raise how many thousands or millions this year? Yes, it cost money to make money. The returns for APF membership, if you participate fully, will be returned to your organization many times over.


Many thanks to Karen Eber Davis for her thoughtful expression of the great value and professionalism provided with AFP. We hope you'll renew your membership, join for the first time or help spread the word about what we do to others in our field.

What's a Good Response Rate for a Direct Mail Appeal?

We've been talking with Brian Weiner of the One to One Group about direct mail and successful fundraising appeals. What's a good response rate for a direct mail appeal? Here's what Brian says:

It’s easier to describe a “bad response rate” since the statistical norm is less than one-half of one percent. That would unquestionably be a bad rate of response. We are seeing well-targeted, socially centered, and personally messaged appeals deliver an average single mailing rate of response of 4% to 20%.

Those results today depend in great measure on how the donor or donor prospect views the charity’s position in “the social safety net.” In other words, food banks, which are at the center of the social safety net are typically going to do very well in this economic climate. Arts organizations, which are deemed less socially vital, be that right or wrong, seem to find the current climate more challenging.



Will direct mail ever die?

As a student of marketing, I believe in the product life cycle and so, to some degree I believe that direct mail will change as it matures. Variable direct mail and pURLS are but two examples. Last I looked, direct mail still accounts leads the way as the preferred donor vehicle by about a margin of 2-1. I don’t see that changing soon. Social media, cause marketing, email will play a part…but donor caution will cause direct mail to retain it’s dominance for some time to come.

Best of all, since most organizations are not using dialogue tools, pURLS, variable messaging, or responsive email…there is plenty of room for conventional growth. In the end, each of us wants to be recognized for the role we play in the support of a charity, and we want to be acknowledge for our value.

Any thoughts or questions about direct mail? Be sure to leave your comments and thoughts for Brian here.

3 Elements of Effective Direct Mail Appeals

Today, too many direct mailers…and especially nonprofits…are in the “broadcast” industry when in pursuit of donor dollars. They craft a message and then distribute it, often through the most inexpensive means possible (i.e. – newsletters, copied form letters, email blasts), waiting anxiously to see what the postman brings each day.

We have seen an uptick in this “low touch” communication over the last year as the economy tightened. I would suggest that there is much that can be done, at a reasonable cost per dollar raised, to help connect with donors:

1. Personalize everything…the more the better. In the process, provide recognition where it is due. Who among us enjoys receiving “Dear Friend” letters?
2. Incorporate dialogue in everything you do when you mail. Don’t just send a thank you letter to a donor…send a thank you and a survey with a postage paid envelope. Make sure the survey addresses the recipient personally and not generically. Create opportunities to dialogue, and then respond to each one that you receive back.
3. Develop intelligent asks. Donors find formulas insulting (you gave $30 last year, so let’s ask for $37.50 this year…) and without intelligence based research, donor asks based upon historical giving are a shot in the dark in a weakened economy.
   
   My favorite story comes from one of the Florida universities where a west coast donor had given $500 each year for five years. During a trip to California, the VP of Development scheduled a meeting with the donor after a wealth analysis showed that the donor had the capacity and the propensity to give much more. When asked why the donor chose to give $500 each year, his reply was, “That’s all you asked for…”
   
   In the end, the donor made a multi-million dollar commitment to the University. Effective asks are vitally important, as we are in the midst of a period where donor retention is perhaps more important than donor expansion.

-Brian Weiner, Principal, One to One Group

   Stay tuned for part 2 of the direct mail discussion...and don't forget to leave your comments for Brian!

Veteran Fund Raiser & Nonprofit Leader Sandi Stewart Says "Thanks for the Memories"

WOW! What a magical ride I have had over the last 23 years as an executive with the Girl Scouts of Gulfcoast Florida. I joined the Girl Scout council in 1986 as the Chief Finance Officer and became the Chief Executive Officer in 1998. These years with the Girl Scouts has provided me so many opportunities to learn new things, make new friends, and the opportunity to influence the lives of over 100,000 girls.


Before my involvement with Girl Scouts, I was involved with my children’s activities and was a community volunteer where I served on boards and worked with organizations to make my community a better place. These contacts were how I began my career with Girl Scouting.

When I took the job with the Girl Scouts as the CFO, the council did not own one single computer. My first task as a new staff member was to computerize the office. It is hard to believe today that all financial records were kept in ONE ledger. I remember the first audit after we computerized the office and they asked if we took a backup of the records off site. I explained to him that we had a daily backup for five days all in the fireproof safe, and we still had a copy of the ledger book. That seemed pretty safe to me, although today not only do we have a backup off site daily, we actually send one out of state. Just the beginning of new ways of doing things!

As the CFO I watched the council’s assets grow (not only in cash but in facilities at the council’s camps). The job was very fulfilling to me and I felt that I had found the perfect job for the remainder of my career. My first involvement with girls was managing their “cookie points”. The beauty of Girl Scouting where a girl can actually be financially responsible for what active she wants to do, because she receives the beloved “cookie points” for her accomplishments in the cookie program.

After working with two different CEOs, I felt that I would like to become the leader of the organization and become more involved in the program delivery that I had grown to love as the CFO. At that time the Girl Scouts of Gulfcoast Florida served 6 ½ counties and it was necessary to cultivate a Board of Directors made up of members from all the counties. I made so many new friends! And, in 2006 when Girl Scouts of the USA did a reorganization of the movement, Gulfcoast was fortunate to survive as a council and added 3 ½ counties to our jurisdiction. What a challenge to manage the geography that I have grown to love in my 23 years.

I spent my first years learning more about the Girl Scout movement, improving the ever challenging Human Resource skills and continuing to monitor financial records prepared by a new CFO. My job as CFO had given me many skills that I would use as I managed the council’s “personal real estate boom”. We sold the old council office, purchased the new site on Cattlemen Rd, did a bargain sale for property adjacent to Camp Honi Hanta, sold Camp Chanyatah, and most recently negotiated the gift of additional property adjacent to Camp Honi Hanta. In addition, I have spent the last two years in litigations on a new commercial pool at camp that leaked before girls were able to swim.

While I had the responsibility to do the “paper chase,” I experienced girls growing from the shy Daisy, through the toothless Brownies, the happy Juniors, the maturing "Highs and Lows" Cadettes, Seniors “going for the gold” and enjoyed the work of the Ambassadors who are not only the leaders of tomorrow, but also the leaders of today, who are making our world a better place.

My biggest challenge was the capital campaign. As a CEO who got the job because of her business skills, what did I know about a capital campaign? The Girl Scouts have the luxury of the Cookie program which covered about 49% of our budget. I had not done a lot of fund raising and this was a huge challenge for me. This community was unbelievable in the support of the Girl Scouts in our capital campaign. We were able to raise $8,000,000 from 2002-2005 with the help of Philanthropy Management, Inc. and the wonderful support of this community. The result of this successful campaign was the completion of the Searcy Koen Regional Girl Scout Campus.

It was during this time that I realized the importance of AFP. I joined the organization during the campaign to improve my skills, make new friends and just learn more about fund-raising. I have enjoyed my involvement with AFP and plan to continue my involvement during my retirement. My plans also involve staying connected to the not-for-profit world and giving back to a community that has given me so much.

As Bob Hope said “Thanks for the Memories."

-Sandi Stewart, former CEO, Girl Scouts of Gulfcoast Florida