Holy Mega-Goal! Chief Development Officers and the Superhero Environment

The welcome email lands in your inbox: A new Chief Development Officer (CDO) is starting at your non-profit. When this fine fledgling bursts though the lobby, she’s donning a mask and cape. She is, after all, a Development Superhero who excels at everything: asking, planning, rallying the board, grant writing, and donor retention – she’s exactly who we need to save our non-profit.

With the expectations placed on today’s fundraising professional, is it any wonder a CDO position has an 18-24 month average tenure at most institutions?

We Don't Need Another (Super) Hero!

“We’ll hire a really good fundraiser and then our organization can move on to other things” is not a good strategy. If your fundraising program rests on one person’s shoulders, then the risk is high, the goals will be in jeopardy, and burnout is nearly inevitable.

Skilled development professionals can be good leaders and solid fundraisers, but they cannot single-handedly save your world.  In response, RSC says, “Change your expectations and thereby change your results.”

So, if not a superhero, what type of CDO do you hire? There are two distinct types: 1) the bold and assertive major gift officer always asking for money, and 2) the “never leave the office” tactician who effectively coaches others to raise money.  Who is right for you?

It’s important for the Board to determine what type of CDO best fits the organization, then leverage her strengths and build a team around her.  Once hired by a Board, the CDO is a key fundraising leader in the organization; she is hired to produce a team, while communicating and motivating others along the way.  If attempting all of these roles of fundraising and leading on her own, she’ll become a superhero for a short time, then flame out fast.

The CDO can strike a balance between leadership and super-heroism. Here’s how:

1. Know why you were hired and play to your strengths;
2. Build a team whose culture embraces the institution’s mission and complements you;
3. Develop the “fundraiser” in each team member; and
4. Be a leader who communicates fully and regularly

If you are the CDO, it doesn’t matter if you’re the major gift type or a tactician, or whether you have a staff of 12 or a staff of two. It’s your job to determine which camp you fall in, identify strengths and weaknesses–and above all–fill in the gaps. The CEO, board chair, and CDO must all be in alignment.

Communication and leadership, however, are also the responsibilities of the CEO and the Board. Here are five steps they can take to help ensure success:

1. Share relationships: introduce the CDO to community influencers and decision makers;
2. Value your CDO’s  experience: listen carefully and treat this person as a peer;
3. Err on the side of asking: the privilege of asking belongs to the team, not just the CDO;
4. Avoid procrastination: when the CDO asks you to do something, do it right away; and
5. Share the responsibility: spread accountability throughout the organization

The good news is that it’s never too late to apply these principles within your organization.  Let’s save the superheroes for the big screen.

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

Performing Arts –– Why is Marketing More Important than Fundraising?

Working with performing arts clients, I frequently observe a competitive tension between the marketing and development departments. Instead of an esprit de corps, I see yin and yang. If these two departments can’t play in the sandbox together, it will eventually show up at the board level–and even more disastrously, at the donor and patron level.

So what’s causing the rift? It’s largely due to the finite resources available in these

organizations, coupled with the sizeable growth goals each department is tasked to achieve. The problem with this “us versus them” attitude is that it hurts the organization, deeply, and it’s absolutely avoidable.

Many institutions choose the wrong course. To avoid the pain, they place marketing as the alpha and development second in command, sacrificing contributed revenue opportunities and strategies for a perceived increase in ticket sales. This eventually chokes off both efforts. But how can the relationship be synergistic when the goals for each department are so aggressive?

Step one: understand and accept the balance between the two departments and create a productive environment that helps both thrive.

The ticket buyer is not the primary customer; the other department is the primary customer. You’re both in the “acquire, retain, upgrade” business, right? The development office should keep in mind the large majority of donors are also ticket buyers, and should therefore greatly respect the marketing process.

Step two: acknowledge that marketing’s success is also development’s success.

Marketing has to be focused in the proper area – namely, subscriber growth.  If the marketing department successfully creates a pathway for patrons – from single ticket buyer, to a multi-ticket buyer, to a subscriber, then they are creating patrons. Patrons, who are not only good for frequent concert attendance, but also good for making philanthropic contributions. Once converted to a donor, we know that the value of a patron increases, as does their lifetime value. 

Step three: acknowledge that development’s success is also marketing’s success.

So, when do we convert a subscriber into a donor? While conventional wisdom says three years, RSC rejects that premise; we find it most effective to convert them almost immediately. Since a new subscriber has not fully defined their role, it becomes paramount to get an entry-level gift right away. This allows your organization to tell its story from the very beginning of the patron relationship and to reinforce it over time. By starting early, you’re able to share your mission and worth, and turn what would otherwise be purely an ‘entertainment option’ into a highly-valued, prized organization, worthy of support. 

If marketing and development want a harmonious relationship, they must look at each other as their single largest customer. Then, together, they can accomplish their larger mission: serving their community.

RSC can help integrate your organization’s development and marketing planning strategies to build a successful fundraising program. If you would like to learn more about how RSC successfully helps arts and cultural organizations reach their fundraising goals, call us at 317.300.4443 or visit our website.

Every Annual Fund Dollar – One Face but Two Names

I’ve helped dozens of performing arts organizations with annual fund campaigns. Sometimes my services are called upon when the goal’s already been established, and that makes me rightfully nervous. My first question is: how did you establish the goal? Sometimes I hear this methodology: we’ve figured out the gap and that’s our annual fund goal. Or, “last year we raised 6% over the prior year, so we’re aiming for 9% this year.” And

then there’s my favorite, “the CEO set the goal” goal.

Setting goals through arithmetic alone is a bad idea. Here’s the annual fund creed you need to post in big letters across the development department: One Face but Two Names.

Put another way, you’ve got to look at the ratio of prospects to donors when setting the

How many prospects do you have?

annual fund goal. Simply determine how many donors you’ll need to achieve your goal, then multiply that number by two – think of it as one face but two names. If the goal is $2M, for example, you’ll need $4M worth of prospects. These can be renewals, upgrades, or new donors. It sounds easy and pragmatic, but organizations often stray from this critical metric when they can’t balance the budget – and end up basing the goal on what they need instead what can realistically be achieved.

• Start the planning process at the beginning of the fiscal year. Thoughtful planning, not active desperation, is the reconciliation to the arithmetic problem. Putting your organization through the rigors of a sound process allows you to adjust your strategy and establish budgets and goals based on what the planning process says, not what the institution needs. 
• Engage volunteers to help supply new prospects. After rating your prospects, categorizing them in the right giving club, factoring in donor attrition, and identifying which ones you can upgrade (just don’t count them twice), can help you determine early on whether you need more names. Then, enlist the help of well-trained volunteers; they’re a valuable resource for helping you find more potential contributors.
• Adjust your strategy as appropriate. Maybe it’s a bigger challenge grant, modifying your timing, or changing your message. Just make sure your strategies are always aligned to achieving your goals, and you’ll be well on your way to executing a fiscally responsible annual fund campaign.

If you would like to engage RSC to learn how to evaluate and set up a successful Annual Fund to meet your fundraising goals, call us today at 317.300.4443 or visit our website.

Client Spotlight: Back from the Brink with the Shreveport Symphony Orchestra

2012 was a challenging year for the orchestra business with too little good news or much encouraging

progress. However, for the Shreveport Symphony Orchestra (SSO), 2012 proved to be the year of the turnaround.  Partnering with Robert Swaney Consulting (RSC) through a combination of a development assessment, interim staffing and ongoing counsel, the SSO began the process of rebuilding its annual fund, sponsorship program and peer-to-peer fundraising climate.

Shreveport’s arts and cultural scene is robust – from theatrical and visual arts offerings to family festivals and musical offerings, including the Shreveport Symphony.  Over the years, the arts in Shreveport have struggled financially, and the Symphony has not been immune.  While artistically valued, the SSO has grappled with fiscal challenges for the better part of two decades – becoming a fraction of its former self, with reduced programming, greatly reduced staff, and a budget of just over $1,000,000.  Having barely survived a musicians’ strike during the 2008-2009 and 2009-2010 seasons, a new fight for survival quickly developed.

In July 2011, Lois Robinson was appointed as the SSO’s new permanent Executive Director.  Ms. Robinson came equipped not only with arts management experience, but also prior to that she was a practicing attorney and a double bass player.  Considering the dire circumstances of the SSO, Ms. Robinson’s unique background was immediately put to use. 

As the SSO approached 2012, it faced a variety of challenges – including some startling news about the organization’s non-profit status.  Shortly after Ms. Robinson’s appointment, the Symphony received notification from the IRS, revoking the Orchestra’s 501(c)3 designation due to failure to submit IRS 990 tax forms for the previous three years.  Other tax-related issues followed – donations to the SSO were no longer tax deductible and the organization was ineligible to receive vital operating support grants from foundations.  

As 2011 drew to a close, it became clear that the donor base had eroded substantially from their pre-strike levels, though some generous individuals, corporations and foundations continued their steadfast support.  To further complicate this, the patron database had been neglected for years, making it extremely cumbersome to identify and solicit past supporters.  Finally, the Fiscal Sponsorship arrangement negotiated that fall with the local Arts Council (SRAC), while essential to saving the situation by allowing donors to make designated tax deductible gifts to SRAC in support of the SSO, made the communications and messaging challenges with donors immensely complicated and delicate. 

  

With these challenges, most organizations might have given up, but Lois Robinson and the SSO’s board of directors took bold steps to move forward.

Reinstating its 501(c)3 status and satisfying the IRS were chief “back office” priorities for the SSO.  Simultaneously, and against all odds, the SSO had to develop new approaches that would attract new sources of revenue to allow the Orchestra to continue to play.  

The SSO didn’t have the necessary fundraising expertise in place to meet these extraordinary challenges, nor did it have the luxury of time to search for and hire a new Development Director.  So in November 2011, the Orchestra engaged Robert Swaney Consulting (RSC) to provide an immediate fundraising architecture – including plans, strategies, coaching and support – all needed to quickly rebuild the SSO’s contributed revenue program. 

RSC’s priority was to quickly build an effective Annual Fund program, with a philanthropic, yet “cash now” mentality, with a case for support that would rise above the organizational challenges. RSC’s approach was multi-faceted but remained basic to accommodate an organization with few resources.  Our focus was to carefully but quickly redevelop the fundraising fundamentals at every gift level by developing a plan, case and timeline that offered a series of structured, yet intense and compressed activities that would provide immediate results.

Working with the SSO leadership, RSC began to leverage volunteer resources, target individual and corporate gifts of various sizes, create an environment of “positive urgency” via a challenge grant and a fully redeveloped case for support to address the challenges while emphasizing a bright future.

Board and staff were focused on rebuilding relationships with the local influential stakeholders.  Well-designed messages to the public became more intentional and more frequent. Local leaders took notice and began to recommit themselves to support the SSO’s efforts in a variety of ways.  The database issues were improved to expedite regular communications and gift asks to the SSO patrons.

The results have been overwhelmingly positive. Overall, the SSO’s Annual Fund surpassed both its Individual Gift goal of $265,000 and its Corporate Sponsorship goal of $140,000 – an astonishing achievement considering that for most of 2012 the organization was burdened with a suspended 501(c)3 status and didn’t launch its fundraising program until  almost halfway through the fiscal year.

“RSC’s work had to be fast, precise, yet nimble – especially in the early stages – because the SSO’s needs were great, and the dynamics changed daily,” said Bob Swaney, Founder and CEO of RSC.  Swaney continued, “It was apparent that, despite the dire situation, the board and the community clearly wanted its orchestra and the SSO’s leadership was ready to do the work necessary to quickly redevelop community interest.  They simply needed a strong partner like RSC to guide their fundraising efforts during a most difficult period.”

Staff, board and musicians were in sync and according to RSC Senior Consultant, Jeremy Hatch, “No one was dragging their feet. The community was enthusiastic as they saw a beloved organization turn itself around to play another day. While the budget didn’t quite balance in 2012, the SSO closed much of the gap, addressed some serious issues, and created an ‘environment of asking’ that will help them continue to grow.”

SSO Executive Director, Lois Robinson said, “I am grateful for the Board’s dedication – and tremendously appreciative of board chair Brian Hebert’s leadership since my arrival.  I’m also grateful for RSC’s partnership.  We had so many challenges, all needing to be addressed at the same time.  Jeremy and Bob kept us on track with fundraising and made sure we stayed focused on only those things that would give us immediate return.  RSC has been a huge part of our success!”

“That sentiment is mutual,” said Swaney.  “I had the pleasure of working with Lois while she was at the Louisiana Philharmonic Orchestra.  She was the perfect choice for Shreveport, and she’s doing an outstanding job to reenergize the SSO and to reengage the community.” 

Now celebrating its 65th season, Shreveport Symphony Orchestra, under the artistic leadership of Michael Butterman as Music Director, presents classical, pops, holiday and family offerings to an appreciative community.  The base of support is growing, and while struggles remain, the SSO has laid the groundwork for a brighter future.

Established in 2006, Robert Swaney Consulting, Inc. (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, Georgia, and Missouri, with clients across the country.

If you would like to learn more about how RSC has helped the Shreveport Symphony or how it successfully partners with arts and cultural organizations to reach fundraising goals, call us today at 317.300.4443 or visit our website.

Flight of the Fund-raisers! Part Two

In the last article RSC looked at some of the reasons why so many development professionals are either leaving or wanting toleave their current position.  In this article we’ll look at what your organization can do to attract and keep top-notch, productive fund-raisers.

As a quick recap from the last article, let’s touch on these three areas:

Fundraising is a team sport. 

Winning.

Along with the Chief Development Officer (CDO), the board of directors, the development committee and CEO each have crucial roles to play in the organization's fundraising success.  Part of the CDO’s job is to pull the team together so that there is a concerted effort, shared responsibilities and shared victories.

Many organizations don't define the type of CDO they need – mostly because they don’t know that there is more than one “type”. RSC believes that there are two main types: the “major gift officer” and the “tactician”.  Although both types are goal-driven, they are very different – and rarely will you find a person who strongly possesses both talents.

“Major Gift Officer” CDOs like to cultivate relationships and ask for money – nearly all the time.  That’s great, but they only have so much bandwidth and they can develop only so many relationships before they are maxed out.  Then what?  How does the rest of the fundraising program mature? 

Well, if you have a strong support staff, your organization may be primed for a “major gift officer” CDO. The fearless fund-raiser spends time courting your highest yielding prospects, and the support staff “supports” the running of the overall program.

The “Tactician”, is strategic. They know how to develop people, plans and systems to get a specific job done within a give time frame, but they are often not the “asker”. They need a team to be the mouthpiece.  They just need that team from Day One – so if your organization isn’t “team-centric” then don’t hire a tactician to raise money.

Whether it be “immediately” or “eventually”, the CDO, regardless of “type” needs a team – each just uses the team a little differently.  No matter how uncomfortable the board may be in the act of fundraising, they have an essential role in the process and must look to the CDO to be their leader – but they must be willing to follow. Conversely, the CDO must assume the leadership role.  Effective fundraising teams are built by each person recognizing and embracing his / her role.

Goals should be achievable, based, at least in part, on historical accomplishments.

Setting income budget goals has a myriad of variables predicated on the previous year's budget performance, predictable attrition, and reasonable gross growth targets. Combined, these equal a net gain that represents the new goal. Once finished – that’s the goal, don’t add another 12% because you need it. If you do, you've now entered budgetary “Fantasyland”.  If exceeding the goal becomes possible, terrific, but don’t keep moving the goal out of reach.  Exceed it, celebrate and keep moving forward.  If the development team feels like they can’t have a “win”, no matter how much they raise, then burnout begins.  Make a winnable situation for your entire organization by first making a winnable situation for your development department. 

Be prepared to invest in the program, not just the person.

Lastly, invest in your development efforts. Understand that old axiom that it takes money to make money – because it does. A low “cost to raise a dollar” is great, but it usually means you aren’t broadening your donor base, which will eventually choke off fundraising because you’ll be left with a few “high gift average” donors and no one to replace them with. No replacements equals no sustainable future. Invest in cultivation, in telefunding, in expert consulting assistance – whatever helps your organization and the CDO take the program to the next level of performance at a reasonable cost. Success begets satisfaction – so make the investment.

Don’t fail your CDO and they won’t fail you. Find the right “type” of fundraising professional for your organization, set realistic goals, invest in them, and allow them to build a team.  That’s how you keep a CDO engaged, and productive. 

RSC can help coach your organization’s board and staff on how to establish and engage staff and volunteer leadership, and build a successful fundraising program. 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.

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!