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Is A Hired Gun The Answer? Print E-mail
Fundraising
Written by <a href='/community/profile?userid=798'>Nick Parkevich, MPA, CFRE</a>   
Monday, 04 April 2011 04:12

 

Is A “Hired Gun Solicitor” The Answer?
There have traditionally been those types of nonprofits that are effectively served by an outside “hired gun” soliciting face-to-face gifts on their behalf. Some of the best examples include specific chapters of Greek-letter fraternities and sororities undertaking capital projects, such as an addition to the chapter house.
Many of these fraternities and sororities have almost no capacity to administer or implement a campaign, despite having access to the resources of a national organization and foundation. Additionally, organization-wide members of these kind of organizations typically know only a few pledge classes adjacent to their own and therefore, an outside solicitor can often be a viable option for successful fundraising; since little to no personal relationship exists between the solicitor and donor.
This is just one of a handful of those unique situations where the infamous “people don’t just give to causes, but rather people with a cause” may not completely apply. The question is can the logic of an outside solicitor apply to your organization?
Is an outside solicitor even an option at a time when the all too prevalent budget cuts facing the nonprofit sector have put pressure on staff and boards to find unique and cost-effective strategies for reaching their desired goals? Or can you afford not to hire an outside solicitor to turn things around today? 
These kind of pressures have pushed organizations who would not have normally considered utilizing an outside consultant or contractor to solicit funds on their behalf to ask whether this type of arrangement might be a good fit for their organization; at least in the short-term. 
Long thought to be a taboo practice by previous generations of strict constructionalists of the resource development profession, the fact remains that many organizations are asking themselves how they’ll raise the funds necessary to maintain status quo at their organizations without the development staff they’ve come to rely on. 
If your organization is wrestling with this question, the answer as to whether or not this would be a good fit is—of course—that it depends. It depends on a number of factors. The following provides a starting point for your organization as it seeks to determine an answer to this question:
Is this moving us forward or backward? Is the intent of this venture to move the organization forward and support a stronger resource development program, or is this assisting the board in circumventing its critical role in fundraising? 
For example, if bringing in an outside solicitor meant that an organization was able to successfully complete a few million dollar campaign that it would not have been otherwise able to undertake; and in the process strengthen its donor pool, should it go to a “hired gun”?
What are the alternatives? Have you exhaustively considered all of the other options? In an attempt to objectively withhold judgment about whether securing a hired gun is a good or bad thing, you will most certainly face some level of scrutiny about the prospect of hiring an outsider to solicit gift on your behalf. Are you prepared to address those concerns, from both internal and external constituencies?

Do we have prospects to solicit? Is there anyone for the “hired gun” to solicit? If hiring an outside solicitor is an attempt to grow the donor base, then it may be the wrong solution. But if instead, the focus is on upgrading current donors and prospects, then it might be the right move. In some cases, the outside solicitor might also perform a traditional feasibility study to identify potential donors and to determine the donor’s level of philanthropic support. This same consultant might also be an effective purveyor of cultivation and stewardship activities if those functions are not currently occurring at the appropriate levels in our organization.
Can the organization support an outside solicitor? Any good major or planned giving officer will tell you that to be successful in their jobs, they have to be out of the office and in the field meeting with people one-on-one. The expectation we place on a “hired gun” solicitor might determine the success we yield in this venture. For example, while an outside solicitor might serve diverse fundraising functions, we may also find greater success if our organization provides the necessary support functions, such as prospect identification and research, gift processing, and other necessary administrative tasks.  . 
How will we measure success? A strong donor pool and culture of philanthropy can take years to develop. With a solid understanding of the process of fundraising—identification, cultivation, solicitation and stewardship—the chances that an outside solicitor will be able to begin soliciting immediately is probably unrealistic. Therefore, what is our measure of success? How do we account for stronger relationships with our donors that don’t necessarily result in funds secured today? 
If the expectation is another warm body making asks will result in new or larger commitments than we’ve seen in the past, we’re probably overestimating the success we’ll see. However, if our donor pool is truly ripe for the asking, then an outside solicitor might be a viable option. 
How will we compensate? Can we afford counsel at all? Determining how to compensate an outside solicitor can be one of the more sticky areas of venturing down this path. Clearly, finder’s fees and awarding a percentage of funds raised aren’t consistent with the ethical boundaries of generally accepted behavior in the industry. Therefore, identifying a method of compensation that fits culturally within the mix of your organization, while still driving home your desire for an outside solicitor to maintain a focus on asking is key.
What will our donors think? Regardless of what private arrangement you have with someone soliciting your donors, whether they are a full-time employee or “hired gun” your donors will perceive that they are representing your organization. As such, donors will anticipate that things they share with the person will make it back to the organization. The litmus may be in whether your donors would perceive an outside solicitor as inconsistent with their view of the organization and its fundraising activities. 
Whose relationship is it? One of the more confusing pieces to the whole question of hired gun or not, is who had the relationship? From a best practice standpoint, the relationship is between the donor and the organization and we as development professionals are facilitating that relationship. 
If your “hired gun” is performing this same service for other organizations, or is serving as an independent consultant in your local community, there may be a chance that the donor is confused by just who the solicitor is representing today.
Is it the right person? One of the more critical components that will determine whether hiring an outside solicitor is successful for your organization is whether you have the right person. The right model with the wrong person in place may mean failure. Does the person have a track-record of gift solicitation and can they exemplify the qualities of your organization, speak the lingo of your organization, and build the confidence of a donor to consider investing in your mission.
What are our exit strategies? Yes, that’s correct, “strategies.” If this is not successful, what is the plan for terminating the process and regrouping? And, conversely, if it is successful, at what point do we need to think in more traditional terms of employing our own solicitor, as opposed to a contractor or consultant. Moreover, if we hired an outside consultant specifically for a short-term project, such as a capital campaign, as opposed to an undetermined length of time, what is the plan for transition?
And finally, one must consider whether the best answer for your organization’s particular situation is whether a hybrid of a traditional development process, paired with a complimentary “hired gun” might be the most likely to result in the greatest success with fundraising. For example, might your fundraising be more successful if you contracted with a professional solicitor to focus on major gifts or planned giving to subsidize your current annual fund, foundation, and corporate fundraising efforts?
Because the philanthropic landscape has evolved enough that a strict “consultants do not solicit” policy seems that it might be shortsighted and leave philanthropic opportunities untapped in some organizations.  While I certainly am not arguing the notion that having an outside solicitor is an option for every organization and its culture and donor pool; or that the only means for successful fundraising is when its done internally. But, if an outside solicitor can put your organization on the track to financial stability and long-term sustainability, and subsidize your development efforts, then it may at least be a question worth asking at your organization.
About the author: Nick Parkevich, MPA, CFRE, is a consultant with Loring, Sternberg & Associates (LSA). Contact Nick at nick@LoringSternberg.com or visit www.LoringSternberg.com for more infoFounded in 1996, LSA offers a variety of services focused on addressing organizational deficiencies and increasing an organization’s fundraising capacity for small and mid-sized nonprofits who seek to seize opportunities they have never considered possible in the past.  
 
Back to Basics? Print E-mail
Fundraising
Written by <a href='/community/profile?userid=798'>Nick Parkevich, MPA, CFRE</a>   
Monday, 04 April 2011 04:07

Back to Basics?

 
Funny how fads come and go, huh? Riding the wave of a fad is great while it lasts, unless you are the one holding the bag when the fad is over. I mean who would not have loved to own stock in the Zubaz® Pants company from 1987 to 1990 when MC Hammer made them all the rage? But stock in Zubaz® today? Where’s the market?
 
French poet Alphonse Marie Louis de Prat de Lamartine had it right when he said, “History teaches everything including the future.” His statement stands strong today when we think about Moore’s Law and the evolution of technology, but does this have any application in the evolution of fundraising strategies?
 
Sure it does. One thing you can count on is that consultant after consultant, development director after development director and executive director after executive director will continue to develop innovative means for raising more money and putting their own mark on the organization. 
 
Fancy web videos, Tweetups, Facebook, Foursquare, Net Promoter Scores, donor communities, an easily identified “Donate Now” button on your website, email solicitations, a focus on Millennial donors…the list goes on. 
 
Have you found yourself on what feels like a non-stop gerbil wheel trying to keep up with all of these innovative fundraising fads? Are you frustrated by the recent results of your resource development efforts? 
 
Maybe you have been simply spending too much time caught up in how to implement the next way to raise more money for your mission at the cost of executing at the top of your game on the basics.
 
Don’t call me a simpleton, and I’m not advocating that some of these methods don’t work for some organizations, but have you revisited the text of the first fundraising class or seminar you took way back when you began your work in development? 
 
Remember how concepts like donor identification, cultivation, solicitation and stewardship hit you? And when you first realized that three simple criteria—financial capacity, interest in your mission, and a connection with your organization—were likely to help secure a donor’s support. Or that while asking someone face-to-face for a gift was uncomfortable for both of you, it would result in a larger gift?
 
Consider new opportunities for enhancing your fundraising. After all, what if nobody had listened when the first guy or gal shared their thoughts on sending gift solicitations by mail? 
 
But consider the return on investment and use of limited resources in your development office as you take in all of these exciting options. And when you feel disillusioned and bombarded by so-called “expert” after “expert” telling you how the implementation of this new strategy or that new medium for fundraising will increase philanthropic revenues at your organization, remember the opportunity cost these distractions offer in pulling you away from simply executing the basics the absolute best that you can.
 
And remember: best practices are best practices because they work. While not all best practices are timeless, there sure do seem to be an awful lot of them that are in the field of fundraising.
 
About the author: Nick Parkevich, MPA, CFRE, is a consultant with Loring, Sternberg & Associates (LSA). Contact Nick at nick@LoringSternberg.com or visit www.LoringSternberg.com for more infoFounded in 1996, LSA offers a variety of services focused on addressing organizational deficiencies and increasing an organization’s fundraising capacity for small and mid-sized nonprofits who seek to seize opportunities they have never considered possible in the past.  
 
Campaign: yes! Feasibility Study: no thank you. Print E-mail
Fundraising
Written by <a href='/community/profile?userid=798'>Nick Parkevich, MPA, CFRE</a>   
Monday, 04 April 2011 04:03

 

“Campaign: yes!  Feasibility Study: no thank you.”
 
These are the words sticking with me, that the Executive Director used to describe her organization’s current stance on the doorstep of a potential capital campaign.
 
As many consultants working in the capital campaign arena will tell you these days, organizations—particularly of the small and mid-sized variety—are soliciting campaign counsel and resisting what some may call the most critical step of any capital campaign, the feasibility study. In summary, a feasibility, often done by someone independent and outside the organization seeks to test the level of philanthropic support that might be available for your organization, a particular project, or a potential campaign.
 
Of course somewhere in here this all relates to the turbulent climate of our economy, right? Well of course it does. After all, The National Bureau of Economic Research has said that the recession was over in June 2009, so we should all feel better, right? Unfortunately, your donors may not. 
 
With four feasibility studies currently underway, ranging from just under $1 million to $10 million, the donors that I have had the pleasure of talking with in the course of the past 60 days are uncertain at best. Words that you rarely used to hear uttered in a feasibility study interview have now become commonplace. In fact, an interview without a mention of descriptors like: concerned, cautious, unstable, or conservative, would be an outlier more than the rule these days. Beyond sharing their feelings about an uncertain future, many donors are honestly and openly low-balling their commitments to potential campaigns. 
 
While any feasibility study has a degree of uncertainty and error until the gift is solicited and secured, all appearances and many donors own comments seem to mean that the risk of having your feasibility study come in way under what’s really possible is a reality of undertaking a feasibility study today. Additionally, the fudge factor, faith factor, wild-card factor, or whatever you want to call it, in guessing what level of support exists outside of those few donors that were interviewed, is likely to be a larger percentage of a suggested campaign goal today more than ever. This means that more organizations are likely to consider launching campaigns today based on soft guesses and faith rather than identified gifts.
 
So, if you’re faced with a potential campaign in the near future, the question you and your board are likely asking is whether we spend the $20,000-$50,000 or more—depending on the size and scope of the study—that  you are likely to spend in a feasibility study to have your donors intentionally low-ball their commitment to you? 
 
Rarely would I advocate skipping this critical step, especially if you truly don’t have a good feel for a donor or prospective donor’s capacity and potential commitment to your campaign, but the reality is that you have to consider it today. 
 
Here are the real questions you are going to have to ask yourself to determine the best process for your situation:

1.      If we undertake a study and learn that many of our key donors are committing at a far lower level than anyone anticipated, can we accept that reduced level of support?

2.      If not, are we comfortable in acknowledging the level of support they offered in the study, yet asking for a larger commitment anyway?

3.      Do we have a real need for a larger commitment? Have we developed and conveyed the case for why we need support at a higher level?

4.      Are there other circumstances which will help motivate your donors or prospective donors to make a larger commitment, such as another donor they consider to be a peer of theirs, a matching/challenge opportunity, or in one of the most unique approaches we’ve directed, a mega-stretch gift from the organization’s CEO/Executive Director or other highly respected leader in the organization that shocks, motivates, or quite simply guilts your donors into a larger commitment.

5.      Conversely, can we afford to risk blindly asking for a campaign gift and either underestimating the donor’s capacity and leaving money on the table or dealing with the awkwardness of overestimating a donor’s capacity?
 
All said, these questions are not much different than any organization should have been asking itself in the past when considering a feasibility study, but the difference is that the outcome of a feasibility study today might be shockingly low gift commitments. And the real question is how your organization and its leadership will react to that news and respond accordingly to remind your donors why your mission—and this upcoming campaign—are important to them through the appropriate donor cultivation and stewardship activities which will only serve to strengthen donor relationships you have built over time.
 
About the author: Nick Parkevich, MPA, CFRE, is a consultant with Loring, Sternberg & Associates (LSA). Contact Nick at nick@LoringSternberg.com or visit www.LoringSternberg.com for more infoFounded in 1996, LSA offers a variety of services focused on addressing organizational deficiencies and increasing an organization’s fundraising capacity for small and mid-sized nonprofits who seek to seize opportunities they have never considered possible in the past.  
 
The Agitator Print E-mail
Fundraising
Written by <a href='/community/profile?userid=121'>Lisa Whelpley</a>   
Wednesday, 16 February 2011 07:37
Good News About Mobile Donors: mGive Foundation's survey about mobile donors

http://www.theagitator.net/hot-research/good-news-about-mobile-donors/?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=388628&utm_campaign=0

Check out this blog entry for key findings on The mGive Foundation's survey indicating that mobile donors whose giving experience normally involves texting $10 or $25 in response to an emergency appeal can be cultivated through multiple channels. From there, you can click and get the full report for free. For political and disaster-based nonprofits, this is commonplace. For others, it's an emerging trend. For still others, we're just watching for a while.
 
Secret to Getting Grants: Needs and Strategies Print E-mail
Fundraising
Written by <a href='/community/profile?userid=451'>Kelsey Holsapple</a>   
Thursday, 15 July 2010 10:35

Your ability to create positive results in your community - and to raise funds - is unlimited when you effectively articulate needs and strategies.  Grantmakers and individuals who contribute always listen for these two elements, even when they do not explicitly say so.

When you ask for money, it is always best to "lead with the need."  Once the need is established, it is important to clearly identify a strategy for meeting that need.  A strategy is a plan of action intended to accomplish a specific goal.

The importance of needs and strategies extends far beyond fundraising.  All nonprofit organizations exist to provide a public benefit (a strategy that meets a need).

More: http://philanthropyjournal.org/resources/fundraisinggiving/my-secret-getting-grants-needs-and-strategies

 
Fundraising Out of Sync with Giving Habits Print E-mail
Fundraising
Written by <a href='/community/profile?userid=451'>Kelsey Holsapple</a>   
Thursday, 15 July 2010 10:08

Technology is changing the way people give, with different generations preferring to give in different ways, and nonprofits should adjust their fundraising strategies to reflect those giving patterns, according to a new study.

Giving through electronic and social media is becoming more popular, particularly among younger generations, yet most nonprofits gear their fundraising to donors born before 1945, a segment from which nonprofits generate strong results but that shrinks each year.

Read more about this study by clicking here.

 
10 Tips for Fundraising Success Print E-mail
Fundraising
Written by <a href='/community/profile?userid=451'>Kelsey Holsapple</a>   
Thursday, 15 July 2010 09:45

Linda Lysakowski, of Philanthropy Journal, tell us how beginning to recover from this economic crisis will affect an organization’s fundraising program.

Don’t let the threat of a poor economy become a self-fulfilling prophecy for your organization.  If you think you can’t raise money, you won’t raise money!  This article states that organizations showing a positive impact on their community will be more successful than those who haven’t built a strong case for support.

To read the full article, click here.

 
Telling Stories On Grantsmanship Print E-mail
Fundraising
Written by <a href='/community/profile?userid=451'>Kelsey Holsapple</a>   
Thursday, 15 July 2010 09:08

Grant reviewers often work in the same field as grant applicants.  Many are highly committed to these issues – They are sympathetic.  It’s a serious mistake for an applicant to assume reviewers don’t care about the human side or will discount proposals that include examples of the problem.

The following are some guidelines to follow when using stories in a proposal:
1.    Stories are not a substitute for strong local data or a well-documented analysis
2.    The point of a story is not its shock value
3.    Stories should be factual
4.    Stories should never be cute or funny

Read the full article by clicking here.

 
5 Steps for Launching a Planned Giving Program Print E-mail
Fundraising
Written by <a href='/community/profile?userid=451'>Kelsey Holsapple</a>   
Thursday, 15 July 2010 08:54

With the slow recovery of the economy and donations still down, many nonprofits are turning to planned giving as a strategy for sustainability.  This article by Julia Vail in Philanthropy Journal offers these five steps for nonprofits thinking about starting up a planned giving program:

  1. Start with the board
  2. Find a community foundation partner
  3. Integrate planned-giving messaging
  4. Form a donor-recognition society
  5. Start asking

This article gives great advice on how to get started on these 5 easy steps. 

Click here to read the full article.

 
Stewarding Donors in Tough Economic Times Print E-mail
Fundraising
Written by <a href='/community/profile?userid=451'>Kelsey Holsapple</a>   
Thursday, 15 July 2010 08:30

David Lamb gives some great advice about stewarding donors in tough economic times.  This recent article in Philanthropy Journal gives seven key steps that nonprofits need to keep in mind regarding their relationship with donors during this recession.

1.  Keep communicating.
2.  Focus on your mission.
3.  Know your constituency.
4.  Prospect wisely.
5.  Market planned gifts.
6.  Stewardship is more than just a "stage."
7.  Remember why donors give.

This is a great article to share with Board members who might be discouraged that giving is down over the past few years.  Click here to read the entire article.
 
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