Avoid Mission Drift January 3, 2012

Congratulations!  You’ve made it to another fiscal year.  Not only is this good news for your staff (employment is the new black), but it looks like your organization will continue meeting the needs of its constituency.  While most of your fundraising tactics should be guided by your fundraising plan, you will undoubtedly come across an interesting Request for Proposal (RFP).  This RFP may have you running down the hallways screaming, “Hey, our organization could totally do that this year!”.  But before you get too excited, consider if this opportunity jibes with your mission statement.

A mission statement clearly articulates the reason why your organization exists.  It also describes the population you serve as well as the strategies your staff undertake to meet the needs of your constituency.  Your mission statement is incredibly useful in not only guiding your programs and activities, but it should be used to help you and your staff screen which funding opportunities you’ll pursue during the year.

So, how do you do this?  Below are a few strategies to guide you in deciding which funding opportunities merit your application time:

• Know Your Mission Statement. Do you find your eyes wandering into space when tasked with saying your nonprofit’s mission statement?  If so, you’re not alone. In my experience, I’ve worked for a number of nonprofits where staff was hard-pressed to repeat the mission statement on cue.  Beyond being incredibly embarrassing, not knowing your mission can translate into hours of wasted time pursuing funding opportunities that have nothing to do with your nonprofit’s purpose.  The end result?  Rejection letter after rejection letter from funders piling in your inbox.  The solution?  Memorize your mission statement.  As I used to hear on Saturday morning cartoons when the word of the day was announced: “Use it. Say It. Wear it Out.”

• Add Value.  Once you’ve become reacquainted with your mission statement, you’re now ready to pop your monocle in and scrutinize every RFP that crosses your desk.  If awarded, will the RFP allow your organization to serve more people?  Will it help your organization streamline internal processes?  If the answer to either of these questions is a resounding ‘yes’, then the RFP is likely a good bet.  If the RFP is aligned with your mission but best suited for an organization twice your size, then you may need to hold off on applying this time around.

• Join Forces.  You may be reading this and thinking, “But, Tamar.  You really think our nonprofit shouldn’t pursue a funding opportunity simply because we don’t have the staffing to do so?”.  This is most certainly the case if your nonprofit typically works alone.  However, if you occasionally partner with other nonprofits whose work is similar to yours, then it might be worth it to collaborate on a funding opportunity.  This usually means that one nonprofit applies as the fiscal agent and then distributes the funding to other partners, according to mutually agreed-upon terms.  With the strong emphasis on nonprofit collaboration in the foundation world, this option will undoubtedly prove beneficial to all involved.

Now it’s your turn.  Do you have any other ideas of how to stay on mission this year?

Move the Crowd December 6, 2011

Hip-hop legend, Rakim once rapped that to him, “MC means move the crowd.”  Now before you get the urge to clap to this, you may be wondering what these lyrics have to do with fundraising?  Well, plenty.

Last year, I wrote several blog posts highlighting tips on how to effectively engage individual donors and ask for their support.  When cultivating donors, most fundraisers will tell you that real success occurs when they move a prospective donor from cheerleader to long-term donor.  But, how do you do that without having to purchase an additional (and sometimes expensive) constituent relationship management system (e.g., Raiser’s Edge, DonorPerfect)?

Here are three strategies on moving various stakeholders from fans to funders:

• Volunteers.  Let’s face it: volunteers are an invaluable asset to any nonprofit.  Not only do they selflessly give of their time and talent to advance a charitable goal, but they are natural “foot soldiers” capable of spreading an organization’s good works.  So, what’s to stop you from asking them for financial support?  Absolutely nothing.  When soliciting a donation from this group, consider segmenting your requests based on their natural interests.  For example, if your nonprofit offers a tutoring program to public school students, you should ask tutors to contribute to your campaign to raise money for school supplies.

• E-Newsletter Sign-Ups.  Your organization has a monthly e-newsletter.  You’re excited about how large your email list has grown. Yet, it’s not always clear how these folks heard about your nonprofit or why they even care about your mission.  So, how do you work to translate their interest into financial gifts?  For current sign-ups, consider highlighting a specific issue in your upcoming e-newsletter and following up with a direct solicitation explaining how a financial gift could help address the issue.  For new sign-ups, consider making an ask when someone first signs up.  I recently signed up to the email list of the NAACP and the follow up email not only thanked me for signing up, but it directed me to get involved in my local community and become a paying member.

• Facebook/Twitter.  Someone likes you. Another starts to follow you.  Before you begin sleeping with a knife under your pillow, contemplate how your nonprofit can turn these social media fans into bonafide donors.  There’s no better way to engage these subsets than through an in-person event (aka, tweetups or meetups).  After all, who doesn’t like to mix and mingle over drinks and little crostinis? While it is certainly up to your organization to decide if you want to do a special event for  Facebook and Twitter followers only, my advice would be to simply share a note on both sites inviting these folks to your annual fundraising event.  Whichever method you choose, make sure you pay attention to the names on each list and don’t invite someone twice to the same event .

What other strategies would you recommend on moving fans to donors? 

Right Reporting November 1, 2011

Fall is in the air!  As most of us near the end of our fiscal year, we might feel inclined to kick back, grab that medium hazelnut coffee from Dunkin’ Donuts (I’m not picky), and stare into space about all the days we have off in the next few months.  Will we finally take that ski trip or opt for a staycation?  The options are endless.

But, as you know, reality always rears its ugly face.  Because while you were daydreaming about Aspen, up popped an email from the XX Foundation reminding you of that final grant report that’s due in two weeks.  Not only did you forget about this deadline, but you failed to ask your program staff to start gathering the data you need to evaluate this grant’s impact on the population you serve.

————————<feel free to bang head here>—————————-

Once you’re done sobbing in a fetal position, look at this as a lesson learned on the importance of grants management.  Sure it’s great to be uber-savvy about cultivating foundation prospects, writing compelling proposals, and thanking your donors.  Yet, if you fail to report back to your supporters in a timely fashion, you risk cutting future funding off at the kneecaps.

So what are some sure-fire ways to ensure that the grant reporting process is as satisfying as the day you received the grant award letter?  Check out my top three tips below:

• Track Deadlines.  Ok, so this first tip isn’t that mind-blowing.  But it has to be said because the solution to never missing a grant reporting deadline is, well, to write it down.  Love online reminders? Consider using the ‘tasks’ function in Microsoft Outlook.  Think paper and pen work best?  Place sticky notes across your desk.  The best way to keep track of your grant report deadlines is really up to you.  The main thing is to pick a tool that helps you to remember these important dates so you’re not stuck panicking at the 11th hour.

• Monitor Milestones. Chronicling your program accomplishments is incredibly important.  That is, this process provides tangible proof that your nonprofit is effectively meeting its mission.  Not only is this good fodder in which to high five your colleagues, but it is often required in proving to your foundation supporters that their money was put to good use.  Membership organizations like the Nonprofit Technology Network offer incredible (and sometimes free) resources on how to create a “data-driven” culture in your office.

• Make It a Company Affair.  I once attended a workshop on individual donors where the presenter asked who was responsible for raising money in an office.  Responses ranged from the development staff to the board to that of the executive director.  The answer?  Everyone.  From the person who answers the phone to the one who processes payroll, all staff must have a spirit of accountability in ensuring that potential and existing supporters experience the best interaction possible with the nonprofit.  The same is true when it comes to reporting on a grant.  Development must work with program staff to make sure the appropriate data is collected in advance of a reporting deadline.  This includes frequent check-ins between the two departments as the day-to-day workload can often take precedence over data collection.

Now it’s your turn.  How does your nonprofit manage the grant reporting process?

When For-Profit Met Non-Profit October 11, 2011

Once upon a time, there was a fellow named For-Profit (FP). He was creative, handsome and had tons of money (me-ow).  One day, he was strolling down the street (counting his cash, of course) and bumped into a lovely woman named Non-Profit (NP).  Suffice it to say, it was love at first sight.  Some people gossiped that NP only wanted FP for his loot; others said that he was only with her because he pitied her.  Despite the rumor mill, their love grew and FP asked NP to marry him.  A year later, FP and NP welcomed their first child into the world: Corporate Giving (aka, CG).  As FP and NP gazed down at their son, they knew that CG would add to the fulness of their lives for many years to come…

 

Silly love story? Perhaps.  But before you judge my fiction-writing abilities, consider the real opportunities that arise when nonprofits partner with for-profits through the latter’s corporate giving programs.

 

According to Giving USA 2011: The Annual Report on Philanthropy for the Year 2010, corporate giving rose an estimated 10.6% last year (i.e., $15.29 billion).  In taking a closer look at the data, the Committee Encouraging Corporate Philanthropy found that 53% of companies gave more in 2010 than in 2007 (before folks began using the phrase “in these tough economic times” to begin every conversation).  Much of this increase is attributed to a variety of factors, including increased corporate mergers and acquisitions, a rise in donations of medical products to uninsured individuals, and a heightened sense of human need in the wake of natural disasters (e.g., the earthquake in Haiti).  While corporate contributions are still small compared to the support received from individuals and foundations, it remains a viable revenue stream for nonprofits to tap into.

 

So, what are some of the things that your nonprofit should consider in pursuing corporate support?  Check out my top three tips below:

• Match Mission.  When researching corporate support, the process is similar to that of foundations.  You want to make sure that your nonprofit’s mission aligns with the goals and strategies of your corporate prospects.  For example, if your organization provides back-to-school supplies to urban youth, you might consider approaching the Staples Foundation in soliciting either cash or in-kind donations (e.g., folders, pens, etc.) for your program.

• Emphasize Partnering.  In my experience, I have found that soliciting support from corporations is a much easier sell than that of foundations.  While any giving program is designed to address a social need, with foundations the funding pitch begins and ends with a nonprofit promising to partner with grantmakers to advance their shared charitable goals.  However, with corporations, nonprofits can emphasize how the corporate gift will not only advance charitable goals, but increase the company’s bottom line.  A perfect example is Susan G. Komen for the Cure.  Synonymous with the fight against breast cancer, the partnership between Komen and their corporate sponsors have undoubtedly raised the financial and marketing profiles of all involved.

• Consider Dual Impact.  Now that I’ve gotten you all excited about soliciting corporate support, a word of caution is in order.  Before you make the leap in approaching a corporation, be sure to consider their track record in the community.  Has the corporation been involved in any fair-wage disputes (think: Wal-Mart)?  Is there a questionable increase in philanthropic dollars due to a proposed company merge (think: Capital One-ING Direct)?  If your nonprofit is at all concerned about the potential backlash of accepting certain forms of corporate support, then it is worth it to do your homework in the front end.

 

Now, it’s your turn.  What other tips would you suggest in seeking corporate support?

Time is Money September 13, 2011

For nonprofits, volunteerism is the best thing since sliced bread, especially in these tough economic times.    According to a recent report from the Corporation for National and Community Service, Americans spent a total of 8.1 billion hours volunteering in 2010.  This increase was most significant among Generation X (people born between 1965 and 1981) as they devoted 2.3 billion hours to service last year.  While one could argue that the economy has freed up a lot of time for people to lend to charitable causes, this may not necessarily be the case.  In fact, the data from this report is consistent with generational patterns about the volunteer life cycle (i.e., volunteerism rates tend to be high during the teen years, drop significantly during early adulthood, recover as individuals pass through their the mid- to late twenties, and peak in middle age).

So what does this mean for YOUR nonprofit?  Well, for one, this data affirms the altruistic value of most people.  Oftentimes, it is not the pursuit of the almighty dollar (or even a fancy schmancy title) that gets folks to put in their best work to forward your organization’s cause.  In a world where xenophobia and self-preservation reign supreme, volunteerism (like its play-cousin, philanthropy) is still a significant source of in-kind contributions for the nonprofit sector.  But, the previous statement is only true when you effectively manage this free-will offering.

Below are some quick tips to consider in soliciting and stewarding volunteer support:

• Free ≠ cheap. While it’s true that you do not pay volunteers to work, this does not lessen the value that they bring to your organization.  Having said that, be mindful of the way in which volunteers are organized within your company.  If possible, consider hiring someone to recruit and manage your volunteer base or restructuring the responsibilities of your current staff to fill this need.  Still have to tighten your purse string?  Consider using social media (e.g., LinkedIn and craigconnects) to reach out to the volunteer community.
  

• Leverage impact. Strong community involvement is a great way to show potential funders and donors that your organization is worth supporting.  And while reporting the number of volunteers that you have is a start, consider adding a financial value to their support as well.  Case in point: Civic Grind.  Launched in 2010, this social enterprise company was created to advance progressive growth in under-resourced communities throughout the Baltimore-Washington region through the civic-engagement of Gen X and Y African American professionals.  In its first year, Civic Grind ran a blog post about a local nonprofit.  One of its readers saw the article, reached out to the nonprofit’s executive director, and offered to write a grant proposal pro bono.  Shortly after that, the executive director received news that their proposal was approved and they would be receiving a $50,000 grant!  This story is a real-world example of the financial impact that volunteers can have.  
  

• Steward well.  Since volunteers ultimately add to your organization’s bottom-line, it is imperative that they are treated with respect among your staff and board.  Have an annual fundraising gala?  Consider dedicating a portion of this event to acknowledging the contributions of your volunteers.  And don’t just wait until a public event to say “thank you”.  Let your volunteers know you appreciate them all year long.

How have volunteers contributed to the success of your organization?  What other advice would you offer on how to effectively translate their support in advancing your financial goals?

Time Flies When You’re Having Fun(d) August 10, 2011

Ok, as you probably know by now, I absolutely LOVE puns.  I mean, any opportunity to use a homonym and I’m all over it.  Hence, the title of this post.

But seriously folks, I am excited to announce my almost one-year anniversary blogging at Fund Times!  It has been an amazing year for me and I could not have done it without the loyalty of readers like you.  Since a physical group hug won’t suffice at this moment, I thought I would express my appreciation through a quick video.  Check it out:

 

Thank You! from Tamar Cloyd on Vimeo.

Midway is More Than an Airport July 13, 2011

Congratulations on making it to the middle of the year!  I hope you’re making progress on meeting both your program and revenue goals.  Now I know this is the time of the year where hardcore assessment is the furthest thing from your mind.  After all, its 90 degrees outside and that luscious red sangria is calling your name.  But, the summer months are also great for reviewing your organization’s fundraising plan and adjusting your program activities (if necessary) to make sure your organization doesn’t end up in the hole at the end of the year.

So where do you start? Below are three tips to help you stay on track to meet your year-end goals:

• Review your financials.  All nonprofits should produce monthly financial statements.  Not only does this keep your board of directors up-to-date on the health of the business, but it allows you to have current financial information handy when it’s time to submit foundation and government grant reports.  When assessing your nonprofit’s progress in the middle of the year, these statements also provide a snapshot for your staff to consider how your remaining expenses will be covered given your expected revenue.  If the latter is less than the former, then you may have to scale back some of your program activities for the year.

• Prioritize.  If the worst-case scenario happens and you have to scale back  your program activities for the year, don’t panic.  In fact, take a deep breath (or a deep sip of that red sangria; when no one is looking of course) and prioritize those activities that are most in line with your mission and the needs of your constituency.

• Get creative.  If you find that you can’t cut out any of your program activities, then it might help to find creative ways to still meet your mission.  Could you partner with another nonprofit to deliver your services? Do you have an existing funder that would consider providing a discretionary grant to your organization to supplement the revenue gap?  Fundraising is all about creativity and being able to tweak programs/revenue-generating strategies midway is a great strategy to practice in strengthening your organization’s long-term sustainability.      

How does your organization use the summer months? Are there are any other practices that your organization uses to assess its progress midway?

Government Cheese June 15, 2011

Now that change has come to the White House, there seems to be an abundance of government grant opportunities.  With the creation of President Obama’s Office of Social Innovation and Civic Participation in 2009, the Federal Government is committed to increasing the impact that the social sector has on improving the quality of life for all Americans.  Good news for nonprofits, right?  Absolutely!  But, not necessarily all nonprofits.

<clears throat> Allow me to explain.

The government grants process is incredibly competitive, not to mention rigorous (which I just did).  In FY 2009, more than 300,000 applications were submitted to the Federal Government.  While this submission rate is likely based on the Recovery Act, the Federal Government still provides access to more than $500 billion annually.  But, as with all things groovy, it is important to assess whether or not your nonprofit is ready to apply and oversee a grant from the feds.  As the old saying goes, “To whom much is given, much is expected.”

Here are four tips to keep in mind when considering when to apply for a federal grant:

• Partner Up.  When applying for government funding, many agencies want to know if you have existing partnerships with other local nonprofits.  These partnerships not only give your nonprofit “street cred”, but it shows the government agency that they are funding a larger system of change.  And simply listing your partners is not enough.  Government grantors often require you to provide signed letters of support from these organizations when submitting your application.
  

• Check Your Capacity.  Do you find yourself submitting grant reports to foundations on time?  Is your staff already strained to deliver its existing services?  If the answer to either question is “yes”, then you should pump the brakes on applying for a government grant.  The application process tends to be a tedious one (often requiring lengthy page narratives and attachments) and the full participation of your staff will likely be needed. 
  

• Can You Sustain This.  When I moonlighted as a grant reviewer, several applications asked the nonprofit to discuss their plan for ensuring the financial sustainability of the program once the government funding has expired.  Unfortunately, for many applicants, this plan was not entirely clear and resulted in a low-score on their grant submission.  The rule of thumb is that all nonprofits should have a long-term funding plan, regardless of the type of grant that is being applied for.  So if your nonprofit has yet to chart out a strategy to raise funds beyond the current fiscal year, you may want to wait to pursue government funding.   
  

• Set Realistic Goals.  Funders are keen on requiring nonprofits to assess the impact of their work on improving community life.  The same requirements are true for government grantors.  Case in point: Race to the Top grantees.  According to a recent article in Education Week, the majority of states that received federal funding in 2010 to improve their public school systems are struggling to meet the expectations made in their original work plans.  Their progress in achieving goals is under significant scrutiny from the Federal Government, resulting in the hold-up of needed funds to continue the next phase of program implementation.  This situation highlights the need to provide realistic and attainable goals when applying for government funding.

What do you think?  Given these suggestions, is your nonprofit ready to pursue government funding?

Tales From the Funding Side May 6, 2011

The “overachiever” in me wants to always understand the entire process of things.  Not only do I like to eat (my family can attest to that), but I want to understand the seasonings that are combined to create a magnificent dish.  The same is true with my love of all things fundraising.  Dedicating my professional career to fundraising is only one way that I show my support for building the capacity of nonprofits.  What you may not know (if you haven’t read my “About” section, shame on you) is that I have moonlighted as a volunteer grant reviewer.  The things that I’ve learned from this process are enough to prompt you to want to take me out to dinner to hear all about it.

But never mind that.

This month’s post is dedicated to sharing the top four grant writing strategies that will make  a  program officer want to commit a “philanthropic drive-by” on your behalf (i.e., slide past your office with grant check in hand).

• Understand the Process. Before you put pen to paper (or finger to keyboard), it’s important to review the entire Request for Proposal (RFP) or application guidelines.  Taking time to do this ensures that you gather all of the necessary information in order to effectively respond to each section of the application.

• Grading on a Rubric. The strength of your application will likely be assessed using a scoring rubric.  While you won’t necessarily have access to the scoring rubric or know how many points each section is worth, it is important to thoroughly answer each and every grant question.  Which takes me to my next point…          
  

• Don’t Curb Your Enthusiasm. When reviewing grant applications, there were many applicants that omitted the requested information.  They cynic in me likened this to laziness on the part of the writer.  Was the applicant tired of writing about their program or did they in fact, not have an answer to the question?  I can’t say, but it definitely impacted my decision to move their application forward.

• Less is More.  It can be tempting to want to describe each and every detail of your program in a grant application, but don’t.  As a volunteer grant reviewer, I was tasked with scoring between five and ten applications.  That may not sound like a lot, but when you consider that each was about 10 pages long, the process turned out to be rather lengthy.  The first thing I learned in my “Introduction to Grant Writing” class in graduate school was to sum it up.  Mastering the art of succinct sentences is critical in keeping a grant reviewer or program officer interested in reading about your work.

Have you ever volunteered as a grant reviewer or worked as a program officer?  What other bits of advice would you add about the review process?

The Art of Schmoozing April 4, 2011

If you’re like most people, the idea of asking individuals for money is the last thing you want to do.  Unless, you’re my oldest son who doesn’t mind asking me for a lot of things.  In fact, he seems pretty confident each and every time.  But, I digress.

What is it about individual solicitations that cause nonprofit leaders to lose their confidence, stumble over words, or devise an elaborate process in which to woo potential donors?  Having known plenty of people who excel at this seemingly amazing feat, I decided to ask Roxanne Fiddler, my new BFF (Best Fundraising Friend) to elaborate on the art of schmoozing individual donors.

Q: I often hear people use the term “friend-raising” as an alternative to the word “fundraising”.  Is there a difference between the two terms? If so, what are they?

A: There’s a world of difference. Friends make the organization.  Funds provide fuel for program implementation.  It’s the same thing with a car. Funds are the fuel; without them, we go nowhere. But friends are the action, the drive behind the funds. Friends provide direction, vision, inspiration, and passion. They keep the staff supported with their enthusiasm.

 

Q:  As a person who majored in Psychology in both undergraduate and graduate school, I am continually fascinated with human behavior.  What role does understanding human behavior have in a fundraiser’s ability to raise charitable dollars?

A: It’s a fascinating topic. Giving is a crucial part of our identities. This is because it’s what we do with the money we’ve made that gives it meaning. Most people WANT to improve the world around them, but have to find a place for giving and supporting in their valuable spare time.  A fundraiser needs to make the notion of ‘being yourself by giving’ fit and flow seamlessly into a donors life.  This idea needs to improve a donor’s quality of life as well as improve the lives of others. Giving needs to feel like the natural expression that it is.

 

Q:  As a fellow fundraiser, I’m sure you can attest to the importance of engaging a variety of different groups in supporting community change.  What advice would you give a nonprofit leader who is interested in cultivating financial supporters from different racial and generational groups?

A:  I would say get out there. Charitable giving and community involvement is not exclusive to anyone. Everyone has a vested interest in these things. Get out, get involved, and listen to what people want to be involved in as well as how they want to be involved and then, make it happen. People give to people. To a large extent it’s not about raising money itself. Fundraisers connect those who give with those who need.

 

Roxanne Fiddler is the Philanthropy Manager for Govans Ecumenical Development Corporation (GEDCO) in Baltimore, MD.  To learn more about the wonderful work that GEDCO is doing to provide affordable housing with supportive services to low-income communities, be sure to visit their website at www.gedco.org.