When Money Problems Persist – Treat the Cause, Not the Symptom

Every arts and cultural organization has the number.  The number needed for their organization to be fiscally healthy. The numerical panacea that would make the institution financially “whole”.  Even if inconspicuous, the number is there – on the balance sheet, in the strategic plan, or in the bucket named “unidentified fundraising” that the organization carries around year after year.

Trim Some More Fat?

When money issues are ongoing, we logically conclude that money is the problem.  If we just had a little more.  Sold more tickets.  Had a bigger endowment.  Secured more corporate sponsors.  Had one “big gala event”.

Or, we cut back to “save” money.  Fewer performances.  Scaled-back productions.  Fewer touring exhibits.  Postponed building repairs. Feed the dolphins only on odd days. 

Most arts and cultural organizations have wrestled with the “cash issue” enough to psychologically understand that money is ultimately a symptom, not the cause itself.  So, why do so many organizations continue to address the symptom as the cause?  Maybe because addressing “money” still feels like the most accurate, measurable, controllable and explainable way to fix problems.

But if money were the ailment, then arts organizations would have found the cure a long time ago.  The need for / value of cultural organizations has increased in communities.  Patrons continue to be generous with their support and in most cases, attendance.  Organizational cost-cutting is so deep it is often worn as a badge of honor both locally and nationally.

Growing the endowment, selling more tickets, increasing admissions and making responsible budget choices are all good things in the right context – and they should all be pursued as part of a carefully-crafted organizational plan.  But too often it’s not actually part of a plan; it’s instead a “reaction” to a deteriorating organizational situation.  The momentum is wrong.  The situation keeps sliding.  The illness isn’t really addressed.

So how does an organization break the cycle?  Don’t treat the symptom (money), treat the cause (likely something structural).   Getting to the root cause isn’t as difficult as you might think.  Simply “ask the right questions”. 

1. Keep Asking “Why” until you get to the real cause.  Not in a writhing-on-the-floor, Nancy Kerrigan way, but in a genuinely curious way that gets to the root problem.  Then you know what issues truly need addressed that will lead to a “cure”. 
2. Revive at the Core. If your organization has drifted from its mission, taken on too much or tried to serve too many masters, it’s time to get back to basics.  Remember why your organization exists, who it serves, and why it’s important and unique.
3. Look Ahead.  Develop (or clean up) your strategic plan to address the future and your organization’s role in it.  For example, talk to the Mayor’s office to better align your mission with the community.
4. Get Back to Business Basics. If you have identified the problems, revived your organization and created a compelling future, now you can address the operational business practices to keep your organization on track and with momentum in your favor.
5. Don’t Be Afraid to Change.  Change is often difficult and painful (which again is why it’s easier to address the need for more money than it is to address change!).  But if taking all the other steps above points to making positive changes that will make a difference to increase the value of your organization, then make ‘em.

As part of RSC’s focus on contributed revenue growth, we pay special attention to overall organizational development.  We’ve seen some terrific examples of organizations that are bold in their approach to tackling the root issues and becoming stronger, more vibrant organizations in the process.  They become more value-driven and community-driven, which adds to their organizational health.  When those things happen, momentum changes for the better and the money can flow more easily.

The Subtext of Strategic Planning

 “Shakespeare doesn’t really write subtext, you play subtext.”

~ Gary Oldman, English stage and film actor

Strategic planning requires deep organizational examination by key staff, boards of directors, and a variety of internal / external shareholders.  Who are we? What are we trying to achieve? What are our challenges and opportunities? Who do we want to be in five years? Questions about “thriving” are more difficult to answer when your organization is more focused on “surviving”, but strategic planning should move your organization forward, no matter where you are.

What's the subtext of your Strategic Plan?

In monologue workshops, theater instructors often direct young artists to have a vision for their scene and press the students with the same questions over and over – What is your objective in this scene? What are your obstacles and your tactics for overcoming? Some artists answer without hesitation while others pause, having no premeditated answer. Good instructors don’t provide the students with the answer, only more questions. Layer by layer, subtext is formed and the actor can create a deeper, more compelling performance. 

An award-winning playwright can produce a play full of words and stage direction, but that’s not yet “theater”. The work is handed over to the performer to bring the work to life through interpretation, depth and delivery. Through text analysis, collaborative input and careful exploration, the work becomes alive.  Continuing questions – What’s your objective? What are your obstacles and what are your tactics for overcoming those obstacles? – breathe life into the story.

Creating and implementing strategic plans are not much different. Although important, the plan is more than just dreams. Ideas come together as plans are forged and left for key players to exercise and interpret, to act upon and assess.  As arts & cultural management consultants, RSC has witnessed this process and its rhythms many times as we’ve partnered with clients to develop strategic plans and funding growth initiatives. When done well, the plan evolves from being a simple document to becoming a deep, maturing interpretation of the organization’s aspirations, goals and pathways to success.

Is your strategic plan a plan full of words and numbers or is it alive and moving your organization forward?  RSC recommends a strategic planning and implementation process that is structured yet fluid and flexible, where roles are refined and matured with tactics that propel the arts organization forward. 

If you want to understand the subtext of your strategic plan, RSC can help through our proven methods of step-by-step counsel and expertise, exploration and direction. Together we can put into action an invigorated, deeper and more compelling effort for your organization.

If you would like to learn more about how RSC successfully helps arts and cultural organizations reach their fundraising goals, call us today at 317.300.4443 or visit our website.

A Mailbox Full of Noise

You are entering the last quarter of the calendar year and your annual fund campaign is just revving up. Reviewing your tactical plan, you prepare to send a direct mail piece to every current and past donor since 1915, along with some other prospects who might respond to a “now’s the time” mailer. Warning! If you haven’t put those wheels into motion yet, RSC says, “Get it going or prepare to wait.”  Those mailboxes are about to fill up with red, white and blue solicitations and there won’t be much room left in your patrons’ mailboxes.

There's a tree in my mailbox!

You know this because you've seen it firsthand.  Every four years the national political environment pumps out so much mail that it can’t be ignored – and the frequency between mailings of postcards, letters and gift envelopes gets shorter and shorter as Election Day draws near. 

So how do other non-profits compete and rise above the noise of political mailings? RSC says, “Don’t compete.  There’s a better way.”

Nobody makes noise better or more loudly than politicians – and the more mail in the box, the noisier it gets.  So don’t even try and compete.  Your organization, no matter how blustery, will have a tough time being heard.  So instead of having your mailings get drowned out by the political noise, simply rise above it with a better plan.  Below are some tips that will pull you through the impending saturation of political noise this fall.

1)    TIME YOUR MESSAGE. REALLY frontload your campaign…beat those political mailings to the box. If you haven’t already done so, get your solicitations in the mail ASAP, with your cutoff being October 15 at the absolute latest. After that, you’d better wait until the second week of November to send any mailings.

2)    BE POSITIVE. The Post Office will soon be flooded with pushing out political mailings and sadly many of the messages will be real downers. For sure, negative messages make for negative patrons.  But hey, you work for an arts organization – upbeat, community-focused, highly-valued and worthy of support!  So, keep your messages positive, never emulating the thick, bitter sludge you might see from political mailings. Re-emphasize your organization’s importance, relevance and partnership with the communities it serves. And always steer clear of mentioning the election – doing otherwise will make your organization’s letter just part of the noise.

3)    WORK ON RELATIONSHIPS. During the last quarter of the year there are fundraising priorities that have nothing to do with direct mail.  During your self-imposed “no mail” period, focus on cultivating relationships, working on sponsorships, stewarding donors or securing that next challenge grant.

Through balance and timing, your annual fund campaign will navigate the disruptions of the election challenge. Use your energy and resources well and don’t compete with the noise. Work smart and rise above it.

If you would like to learn more about how RSC successfully helps arts and cultural organizations reach their fundraising goals, call us today at 317.300.4443 or visit our website.

The Double-Edged Sword of an Annual Fund

The term “Annual Fund” can be a double-edged sword. 

Arts organizations are perpetually in fundraising mode and Annual Funds are the primary vehicle to secure donations.  By comparison, membership campaigns are similar, but Annual Funds are, well, more edgy.  But because Annual Funds run for a full year we’re often lulled into putting off that work by the illusion that we have all year to do it.  Other urgent issues arise. One day goes by.  Then another…and that side of the sword can cut deeply into your performance.

Arts and cultural organizations cannot afford to measure each day of an annual campaign equally. Taking the goal and dividing it by 365 days to determine a daily goal as a benchmark is a losing approach. All Annual Fund days are not created equal. RSC believes that the success of your Annual Fund is determined in the first sixty days and getting out-of-the-gate with intensity is key to your success.  

Frontloading your activities is therefore a must.

Why frontloading?  Annual Funds don’t have obvious deadlines like performances or exhibit openings, but the timing within a campaign is similar with its own urgencies, deadlines and opportunities. RSC recommends tying together the planning, timing and goals – and then orchestrating the campaign with intense amounts of leverage, momentum and urgency – especially during the first six months of your efforts.  Frontloading gives your Annual Fund the energy it needs to be successful.

So how can you frontload your campaign? Here’s the basic structure to get the growth you need…

First, giving begins at home – starting with those who are most invested in the organization and who often require the least amount of cultivation.  Your board sets the pace for the campaign – giving first and giving generously.  Renewing and lapsed donors / sponsors come next – go for the upgraded gifts.  Non-donating subscribers / members and sponsors quickly follow. By using this hierarchy you can reach nearly all of the “family” and often reach a majority of your goal within the first six months of your fiscal year.

You now have a full six months to reach the balance of your goal through new gifts, second gifts, and so forth – and time is on your side.  You can now dedicate the latter half of your campaign to those prospects needing a longer cultivation process, plus, you’ve built tremendous momentum that will attract new donors. This part of the campaign is inherently more difficult but you’ve created ample time for the task of expanding your donor base.

Along with ramping up the campaign’s momentum, frontloading also acts as an insurance policy. If a long-time “big” donor suddenly underperforms, you’ll know about it in the earlier stages of the campaign and will have lots of time to find other sources of income to make up for the loss.

And what about pledges?  RSC says don’t just count on a repeat annual gift; commit it early. Even if the gift doesn’t immediately materialize, securing pledged commitments still helps build momentum for the balance of the campaign. RSC recommends pledges have no more than a three-month fulfillment date because anything longer jeopardizes the gift.

RSC has frontloaded dozens of annual funds because it is a tried and true method to build successful, growing campaigns.  We also know that if your organization isn’talready frontloading, it can be a tough transition – but we can help.

So don’t get cut by the double-edged sword of an Annual Fund.  Growth is important – and the urgency is now.

Is Anyone Else Sick of Online Surveys Yet?

Online surveys. I hate them. Probably get 3-4 a week. Every. Stinking. Week.

They come from my travel services, hotels, airlines, places where I buy stuff, from my music and video subscription services, member organizations, and the list goes on.  And on.  And on. 

How are we doing?

Over the past couple of years there’s been a breach in the online survey floodgates and we’re drowning in pleas begging us to tell companies how well they are doing. For me, they arrive in my “IN” box, usually with a cheerful headline like, “Tell Us What You Think!" Ok, I will – but be careful what you ask for. 

Arts and cultural organizations have been getting in on the action lately, too, and I wish that they wouldn’t.

Now, you’d think a fellow who gets paid to provide fundraising advice would welcome every opportunity to give an opinion, right?  Not so.  I haven’t warmed-up to the online survey phenomenon because for the most part, I think it’s a sham.

Why the skepticism?  Because in most for-profit environments, surveys are used by the marketing department whose mission it is to influence customers, not to redesign a company’s products and services.  Just look at the next five online surveys you get and judge for yourself.

I contend that most online surveys are actually one of the following:

• A commercial (influencer) disguised as a survey;
• A clumsy attempt to say “we care about you”;
• A means to capture additional customer contact information; or
• A plea for validation that how the company treats customers is ok with me.

Arts and cultural organizations are quickly joining the parade of online surveys – and although their motives are often more transparent, we should still take pause. Look, arts organizations deal with such narrow segments of the population, do we really not know what patrons want?  Is it truly probable that arts organizations are so out of touch – or out of answers – that they have to resort to e-blasted online surveys?  In some instances the answer is ‘yes’, but don’t make the exception the rule.

Relying on patrons to tell you what they want is unrealistic, unsophisticated and unreliable.  Plus, at our core, don’t we already know the answers?  They want to be entertained, enriched, enlightened and educated.  They want good value for their money and they want to view your organization as a resource to the community rather than another entitled “non-profit” mouth to feed.  They want you to add value to the community and they don’t want any hassle when they partake in your organization’s offerings.  They want to be thanked and appreciated for their support, too. 

Do you really want a survey to tell you any of this?  Of course not, so let’s choose a better course.  Talk with your patrons.  Observe them.  Study their habits.  Then make good decisions tied to the behaviors you uncover. If your organization is hitting the mark you’ll be rewarded with a growing patron base.  If it isn’t, you won’t. 

If you want to be valuable to your patrons, then have value.  If you want loyalty, then make their experiences memorable.  There is a big difference between getting to know your patrons through their behavior versus their opinions.  One is real, and one isn’t.  One brings in money and loyalty, and the other doesn’t.  One quietly inspires repeat business and involvement, and the other one sets false expectations when the organization’s real ability to change is limited.

People are smart.  They know the orchestra or opera company won’t radically change its programming…or the museum can’t do much about a parking problem…or the ballet company won’t perform more “tap” because of the results of an online survey.  Organizational growth comes from careful introspection, self-awareness and self-analysis, anchored in unflinchingly productive core fundamentals that usher innovations based on many, many variables.  Your patrons can’t do this work for you, no matter how many questions you ask them.   So get out there.  Talk.  Observe.  Study. 

Oh, and one final thing, if you enjoyed this article, please take this quick online survey to tell us what you think!