Dear Friends,

Last week’s blog generated several comments about taking the long view. In a field predicated on relationships, only the long view makes sense; yet, there is another aspect when considering the long view. Have you created a sustainable organization?

Many non-profits start off with a bang. Funding might come from a founder, a few angels, and maybe there might be reimbursement from third-party funders, state agencies, and so forth; that does not mean it is sustainable. Several years down the road, those “reliable” sources dry up, and the organization finds itself at risk.

The most effective course of action is to invest in building a development program while you still have a reasonable source of funding. Development takes work, and it takes time. Relationships, by their very nature, take time to build. Furthermore, fundraising cycles function on an annual basis. Finding out that your funding is suddenly being cut and then deciding to build your fundraising efforts will not solve an immediate problem.

Today, we often talk about building capacity…foundations will even support capacity building, meaning they will fund your initial efforts to build an infrastructure and a plan that will sustain your organization.

A full-fledged plan has many components and should project revenue over several years. Here are some things to consider when you are thinking about building a development program:

1. Grants do not provide immediate support – it takes time to build a relationship with a funder and should not ever be considered an instant remedy.
2. Events are a mainstay of non-profit support, but they are not the venue through which to build sustainable donor relationships.
3. Building an annual fund does not mean sending out an annual letter. It is a year-long, renewable process of building donor support that will be there for the long-term.
4. Nothing is more effective than meeting with a donor face-to-face
5. Thank your donor often and communicate frequently. Let me say that again…thank your donor often and communicate frequently!

This all takes work, time, and effort, and there really is no shortcut.

Dear Friends,

Sixteen months. That is the length of time someone in a development position stays with a non-profit organization. Sixteen months! In a profession dependent on building long-term relationships, this should be a wake-up call for many non-profits. 

This statistic was introduced and discussed at the recent AFP Conference in Vancouver and was published in the Chronicle of Philanthropy.  The turnover rate has long been a cause for concern, but this latest statistic shows a further decline from the previous rate of 18 months. The study also revealed that the cost of bringing in and training a new development professional can be as high as $125,000. Many non-profits today are struggling to accelerate their fundraising efforts.  Furthermore, raising funds today is more difficult than it has been in the past two decades. The question we must ask is:  Why is this so, and what can be done?

I have my own theory on why this is the case, based on years of practical experience and having worked with many, many organizations. It is also based on anecdotal data I have gleaned from many colleagues over the decades, and I would like to share it with you now.

The first observation and concern is that development officers are hired with mixed, unclear, and sometimes conflicting expectations.  An organization is experiencing a financial shortfall and decides it needs to increase its focus on development.  Therefore they hire a development officer to raise the funds and expect that by hiring someone, their work in “solving the problem” as a Board or management team is done.  Development officers do not work in a vacuum.  Effective development work requires active support from the chief executive, management and, especially, the Board.  If they are not willing to be engaged partners in the process, the results will be less than stellar, and the assumption is that the development director has not done his or her job.

The second major problem is that development work does not happen immediately.  It takes a minimum of one year to understand the ebb and flow of a fundraising cycle, donor behaviors, activities, and events that will generate revenue and the type of fundraising activities that will work best with the organizational culture.  If the fundraising efforts are to be truly effective, the development director should conduct an assessment of the program and develop a 3-5 year fundraising plan.  While results will be seen after year one, significant results are not usually achieved until year two or three when a philanthropic culture begins to take hold in the organization.  This happens only when the relationship with funders has been developed and donors become familiar and comfortable with an organization.   An impatient organization and Board doesn’t consider the time required to build and grow the program.  Therefore, because there are no immediate results, the development director and organization parts company and the pattern repeats itself.

Organizations are not hiring the right people.  I have observed that organizations focus a lot of time and effort on “chemistry,” whether or not there is the right organizational and cultural “fit.”  While I don’t disagree that it plays a role, the reality is that a good development director is not going to be similar to the other employees you hire. They have a more external focus, they are more “sales” oriented (allowing that the best sales people are those who know how to develop long-term relationships) and the work they do is far different than most of the individuals hired by the organization.  I worked an average of 5-10 years with most of the organizations that employed me.  I will unequivocally share that the first few months were very difficult, and I was not the most popular person at the agency.  Fortunately, I was bringing in much-needed funding – but I was different than the other employees they hired.  A development office is a small business, and development folks are entrepreneurial – which is different than those who are caregivers, social workers, teachers, etc.

If the organization is focused on chemistry – then it is not usually seeking the actual skill sets that are required to build a development program.  In the past two decades, non-profits have proliferated at an extraordinarily high rate.  That has caused an equally high demand for development professionals.  Many organizations are not able to find or (or can’t afford to hire) the skill set and talent required to establish a development program.  They will hire someone who has done a great job at putting on events, running a terrific social media campaign, or successfully writing grants.   These are all commendable skills, but they are not the same as building a sustainable development program.

The fault lies on both sides of the hiring desk.  Development directors have the responsibility for developing skills and continually advancing their practice, and those hiring development directors must either commit the resources required, or be willing to invest in the person they have hired to help him or her achieve those skills. There is a craft and a science to raising funds.  Today there are even Masters Programs in development.  Associations such as AFP, AHP, CASE, and others have a long-standing commitment to providing their members with ongoing education and training.  Whether through national conferences, college courses, or regional workshops that help development directors achieve certification, the resources are available, along with scholarship programs.  However, both the development director and the organization must recognize that there is more to raising funds than executing a few successful tactics and that true development work requires a sustained commitment.

I am truly saddened and dismayed that the turnover rate in development continues to decline.  I do believe that it is possible to stem the tide, but it requires commitment on both the part of non-profit organizations and development professionals.  The commitment must be a two-way street, and for it to succeed, attention should be paid to the following basic principles:

1)      Set clear and reasonable expectations when deciding to hire a development professional and communicate them in advance.

2)      Ensure there is active support from the Board and the management team; development is not a stand-alone function.

3)      Be willing to invest for the long-term.  Sustainable success will not come overnight, but will build consistently over time.

4)      Hire the person who has the skill set to do the job and the commitment to continually improve.

5)      Invest in the development function through ongoing training and education.

Development is not a “quick-hit” solution; rather it is an investment in building philanthropic support from your community.  It’s not easy – but then, nothing worthwhile ever is.

(If your organization is concerned about hiring the right development person, seek advice from other organizations or consultants who can help you set the expectations and guide you in the process.)

Dear Friends,

It’s spring…at least I think it is! The weather is warm, and my yard is looking brown and bleak.  That’s usually a sign that I have to invest some time to make sure that things are growing and glowing so I can enjoy the fruits of my labor.

Is it springtime in your development office? It’s time to invest the effort in doing development spring cleaning.  So, I developed a little chart to help us think about some of the things we should be looking at as we all get ready for the next “planting” season.

Here are the top ten ways to tend your development landscape in the next month:

OK – now let’s hope the rains will come and everything will turn green!  Happy Spring.

Dear Friends,

It’s event season and from the look of things you could easily attend three or four events per-weekend if your social life afforded you the opportunity. As much as you want an event to be fun, which is very important in the scheme of things, it is, after all, a fund raiser (emphasis on the d at the end of the word) and there are certain things we need to think about to ensure this emphasis is not lost.

Most banquet facilities are used to doing weddings, corporate events, and private parties.  The focus is ensuring that the guests have a good time – plenty to eat and drink and a wonderful opportunity to mingle and converse.

A fundraising event is different.  The focus must be on raising money and your set-up and flow has to be orchestrated with that in mind.  So, when working with your banquet facility, there are a few things you need to keep in mind (these also happen to be a few of my pet peeves when working with event planners).

Never put the food in the middle of the room.   That is where people congregate and mingle, and banquet facilities naturally assume that people should congregate around the food.  This is a natural assumption. After all, when we throw parties in our own homes we all end up in the kitchen. However, you are not about the food – you are about raising funds.  So, if you have a silent auction, raffle, or treasure chest – that is what needs to be in the center of the room, and food should be placed around it. Another good idea is to place the crudité table on one side and the bar on the other and watch how people go back and forth, lingering around your fundraising items, spending money ….

Ambiance is nice, but a secondary consideration.  Gentle seating arrangements, bubbling fountains, a glowing fireplace… are all very beautiful and display the banquet facility well, but again it is contrary to the fundraising mode.  If people are lounging in front of a fireplace, chatting on a banquette, or watching the coy in a fish pond, then they are not spending money at your event (didn’t we say this was a fundraiser)?

The timing of the event activities is up to you.  Have the food come out based on your program, and ask your banquet manager to work with you.

• Maybe your silent auction got off to a slow start and the bidding has just picked up.  Okay, keep it open for another 10 minutes.  You want to raise as much money as you can.
• Your dinner should not interfere with your program.  I prefer waiting until the program is over before dinner comes out (and I have seldom had a complaint from guests…they are there to raise money, too; they get it). It’s always a good idea to have a plated salad on the table when guests go to sit down – this can keep them from getting hungry.  No matter what, don’t ever allow the food to come out during the peak of your program.  It will distract your guests.  I once saw dinner come out right at the beginning of Fund the Need (or the Special Appeal).  It was barbeque chicken wings you ate with your fingers.  Nobody reached for a bid card with sticky fingers, and the appeal bombed.

Make sure people are congregated together so they can hear the program.  Move the dance floor if you need to … people will still figure out where to dance even if the dance floor is “small.”  I always think it’s a great event if people are actually dancing in the aisles. It’s most important that people can hear and see your program.  Otherwise, what is their motivation for giving?

Finally – check-in and check-out.  This is not meant to be easy for staff or the facility.  It is meant to be easy for your guests.  So, make sure you set it up so there is no line going into the event and no queue leaving to check out.  There are ways to do it, and maybe it’s a bit more work, but your guests will leave happy, inspired, and will become a bit more loyal to your cause.  Isn’t that really the bottom line?