Flight of the Fund-raisers! Part One

Run Away! Run Away!

A development director, new on the job, finds three envelopes in her desk drawer, left by her predecessor.  The envelopes read, “open at the end of year one, year two, and year three”, respectively. At the end of year one she opens the first envelope as instructed. Inside, the message reads, “Blame the Economy.” As the second year concludes, she opens the next envelope and it reads, “Blame the Marketing Department.” After three years she opens the final envelope, which contains the message. “Prepare Three Envelopes.”

For many development directors, this hits close to home, as recently reported in The Chronicle of Philanthropy's article, “Half of Fundraisers in Top Job Want To Quit”.

The truth is that more fund-raisers than ever before want out of their current job – or out of the business altogether.  The average stay in a fundraising position is now 18-24 months.  The reasons are varied but usually boil down to one sentiment – fundraising has become a “no win” situation. With this mindset, reaching goals is irrelevant because the Chief Development Officer (CDO) is resigned to the idea that, “even a win isn’t a win”.  So they dream of moving on, either looking for a greener philanthropic pasture or leaving the profession completely. 

As a company that partners with arts organizations across the country, RSC is a regular witness to CDO turnover, as we are often engaged as “interim staff” during these all-too-frequent transitions. Sadly, the issues leading up to “fundraiser flight” have been in force for at least a decade with no signs of them being effectively addressed.

This is an industry-wide phenomenon – and one the arts have a particularly tough time competing in because of the competition for talent.  Every non-profit needs a top-notch fundraising staff, but, as we know, some organizations (and industries) can simply out pay others. Yet, salaries for CDO’s have increased steadily over the past decade in nearly all industries, including the arts, so shouldn’t money solve the “retention” problem? Well, no, because salary isn’t the real problem. 

When it comes to fundraising in the arts, hiring the right “fit”, setting the right expectations, and engaging an entire team are most often overlooked in lieu of the desire to fill the open slot quickly.  Beyond wanting “someone who can ask for money”, many organizations don’t know what type of development director they need, and therefore don’t know how to engage and keep them productive.  When this happens, there are some familiar results:

• Leadership in the institution (staff and volunteer) relinquishes (foists) all fundraising responsibilities to the new CDO. Once the hire is made, the new CDO is often expected to be the chief fundraiser, strategist, letter writer, relationship builder and event planner, just to name a few. You may see a busy fund-raiser, but they’ll burn out very quickly in this scenario.

• Fundraising goals are in flux to bridge other organizational shortcomings. The CDO is not a bank or an ATM machine. If an organization has budget overages or income shortfalls, the worst mistake it can make is to rely on fundraising to close the gap in the final moments of a fiscal year.  Using philanthropy as an institutional line of credit is nearly always a losing proposition.

• Believing that hiring a CDO is the final step of investment.  Securing the right staff leadership is the first step towards success, not the last.  Your CDO may have to build a staff.  Or hire a consultant. Or engage a vendor to expand the base of support.  Or invest in any number of things that creates an environment for successful fundraising.  Hiring a pilot without a plane, fuel, runway and flight plan won’t take you very far – and a great person who is not properly resourced won’t last long.

So, how does an organization really stop the revolving door of development directors, and how do they get a quality team member who will stay, produce and flourish for a long time?  RSC will give some thoughts on that in our next blog article.

In the meantime, you can contact RSC by clicking here to learn more about our services to arts and cultural organizations and how we can help you achieve Fundraising Growth Now!

RSC Launches Fundraising Educational Video Series for Non-Profit Organizations

Scott Giffen, cfre

Indianapolis – Robert Swaney Consulting, Inc. (RSC) has released the video series, “RSC: Arts Fundraising / Engaging and Keeping Partners”, available to the public free of charge, and accessible via Youtube. Featuring RSC Senior Consultant (and certified fundraising executive) Scott Giffen, the series captures excerpts from a workshop generously sponsored by the Missouri Arts Council and presented to local arts leaders in Springfield, Missouri. Aimed to provide “best practices” related to non-profit fundraising, RSC’s seven-part video series focuses on various sub-topics ranging from the 'Components of the Right Ask', 'Ask Techniques' and 'Thanking Your Donors'.
 
“Scott did a terrific job with his presentation that reinforces some very basic but very important principles of fundraising,” states RSC Founder and CEO Robert Swaney, “and RSC is pleased to make these videos available to a global audience. RSC is committed to helping non-profit organizations improve their contributed revenue growth results and we therefore trust that this new video resource proves valuable to those organizations.”

“RSC: Arts Fundraising / Engaging and Keeping Partners” is available via Youtube.com and can be accessed by clicking here to begin the first video, or search “RSC Giffen” in the Youtube search bar.

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Established in 2006, Robert Swaney Consulting (RSC) is a national provider of contributed revenue growth strategies and hands-on interim management for arts and cultural institutions. The firm has offices in Indiana, Missouri and Georgia.

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The Fiscal Cliff Deal and Your Non-Profit: Moving Forward with Practical Advice and Action

contributing writing by RSC Senior Consultant Jeremy Hatch, cfre

Welcome to 2013! Less than a week into the New Year and already our world is changing with some mixed news from 

Your Donors Can Make It!

Congress. Over the past few months, many RSC clients (along with board members, volunteers and donors) have expressed concern and fear about changes to tax law in 2013.  Some donors have stated that they will likely not be able to give with the same fervor as they once did because of the impending changes. 

Before donor-paralysis sets in, let’s look at what we know so far, based on the agreement passed by Congress on January 1:

• Tax deductibility of charitable gifts: The agreement does not include (as feared by many) any “across the board” limit or cap on the deductibility of charitable gifts for 2013 but rather places a cap on itemized deductions for some families earning more than $300,000 per year, or some individuals earning more than $250,000 per year. It is a somewhat complex calculation but shouldn’t have a significant impact on the vast majority of our donors.  click here for an excellent sample scenario, provided by the League of American Orchestras. 

• IRA Charitable Rollover continues for 2013: In happier news for the non-profit community, this popular giving vehicle has been reinstated and allows donors who are 70 ½ or older the option to make charitable gifts directly from IRA accounts. The measure is retroactive to 2012 (giving donors the opportunity to make a 2012 gift via this vehicle if completed by January 31, 2013).

Most non-profit organizations are asking about what these changes mean.  How should you prepare, react and respond?  Is your current Annual Fund program affected?  What about planned gifts?

In response, RSC says, “Slow down, take a breath and initiate some practical steps that will encourage your donors to continue being generous:

• Step #1—Stay the course. There may be bigger changes ahead in future years with our tax code, but for 2013 the tax benefit is unchanged for the vast majority of your donors and prospects. It is vitally important to stick to your solicitation plan and calendar. The development committee needs to keep focused and your direct response plans should proceed without delay.

• Step #2—Communicate the facts to your board and volunteers: Let your key volunteers and solicitors (especially those who expressed concern last fall) know about these changes and coach them through talking about the issues with prospects and donors.   

• Step #3—Communicate with your donors: The IRA rollover has proven very popular in recent years as a giving vehicle. Strategize internally about prospects who might be a good fit for this opportunity (older donors with pending major gift pledge payments, etc.) and consider a custom communication in the coming weeks and months to market this opportunity.

• Step #4—Make it personal:  For a small percentage of our donors and prospects, this situation might be a disincentive to invest in your non-profit’s good work. This is all the more reason to cultivate donors personally via peer-to-peer activity. If one of your key donors has slightly less to give away in 2013, you had better realize they will make a meaningful investment where they feel best connected, most appreciated, and personally invested. Make sure it is to you.

• Step #5—Stay engaged with RSC:  Growing your fundraising capacity for arts and cultural organizations is our business, regardless of the external factors. We can offer strategies, counsel and practical advice. Together we can make 2013 your year to achieve Fundraising Growth Now!

RSC believes that one key to success is to continue communicating with your patrons in times of celebration, success, struggle or uncertainty.  Mailing information can be helpful, but personally reaching out and talking with your most vested stakeholders is paramount.  Always be ready to encourage them to continue their support and always direct them to their financial advisor to deal with specific situations.  If you haven’t reached out to your patrons regarding the tax changes, do it today.

Tasking Your Development Committee Without Pain or Panic

contributing writing by RSC Senior Consultant Jeremy Hatch, cfre

Your season is launched, your direct mail campaign is underway, sponsorship is at a post recession high and renewals are coming along. What’s next?

 

It’s time to task your development committee for year-end fundraising success.

Before we get ahead of ourselves and send our highly-valued board-level volunteers out into the community to promote our good work, let’s pause for a moment to help your organization avoid a lot of pain and panic by first examining a short list of what a Development Committee is not (or shouldn’t be) and what it is (or should be).

Your Development Committee...

IS NOT:

A group that meets monthly, forevermore, to throw around names, eat the bagels, and talk about things that have no immediate effect —“We can approach Mr. Smith after the divorce finalizes and once the leveraged buy-out is approved. In 2018.”  Too little.  Too late.

IS:

Focused on specific prospects for this year with the urgency of a fixed deadline (year-end, before Thanksgiving, in time for the school series) and aimed at prospects with whom volunteers personally know and can ask for support.

IS NOT:

Responsible for direct mail solicitation copy. Give ten earnest volunteers the opportunity to edit your solicitation letter and you will have yourself ten rounds of edits and a month long delay getting our the renewals...and still no peer-to-peer follow-up calls.

IS:

Coached by staff to articulate in a personal way the mission of your organization. Not everyone is a natural salesperson but all volunteers can open doors and facilitate relationships -- which is a highly-valued and irreplaceable asset.

IS NOT:

A reactive group evaluating and / or criticizing the Development staff’s efforts and plans, after the fact.

IS:

In partnership with staff to make specific financial asks to prospects. This is a challenge for volunteers everywhere. Too often our volunteers want to send an email or plan to chat up their prospects in a casual setting.  The "partnership" approach is well-planned, more thoughtful, more focused and more personal.

As a successful board-level volunteer who is focused on fundraising results, you need to:

• Be Prepared:  Know your prospect (don't just "take a name") and then study what you can about   him / her.  What this giving history?  What's this year's target?  Does s/he give to other places?  Does s/he make gifts through a family foundation?  Is there a special affinity for giving, such as education and outreach?  Let the staff help you by preparing you with as much background information as they have available and then prepare for your call.

• Be Comfortable and Confident:  You are representing a dynamic organization worthy of investment.  Your organization is likely a great "sell".

• Be Yourself:  Tell the organization’s story in your own words. Make the prospect comfortable. Tell a funny story about your first opera experience or the time you tried to lead the audience in wild applause between movements Mahler's Symphony No. 3.  You don't have to be an expert in the arts field, you just have to be yourself -- one person talking to another about why supporting a community treasure is important.

• Be Engaging:  Don’t make the meeting about the written proposal or pledge card. Instead, engage in a personal conversation about an organization that is important to you.  Ask good questions and listen carefully to what the prospect is saying.  Why don't we simply send a direct mail piece?  Because we want you to have a real conversation.

• Be Specific: in your request for the gift and with any related points and / or follow-ups.

• Be Purposeful:  It is most important that a volunteer approach this work as seriously as you would your own business.  The meeting can have lighthearted moments, but always remember that securing contributed revenue is most often the lifeblood of the organization you are representing.  Your success is therefore vital to the organization.

Asking for money is serious business -- but it shouldn't incite panic or induce pain.  If your organization believes in the power of peer-to-peer, relationship-based, leadership fundraising, but struggles with fully engaging your volunteers, click here to contact RSC for information about how we can support your important work.  We would be happy to help you – and your volunteers – achieve Fundraising Growth Now!