The EDGE Group

American Charities Raise $774-Million for Haiti

2010-02-18T13:04:00.000-08:00

Five weeks after the devastating earthquake in Haiti donors have contributed more than $774-million to support relief efforts.

Aid to Haiti got a big lift from a star-studded telethon that was broadcast on major television networks in January. Donations made in response to the telethon totaled $66-million, and organizers awarded $35-million in grants on February 5.

The biggest player - the American Red Cross, which had raised approximately $276-million as of February 16, including $6-million from last month’s Hope for Haiti telethon. More than $32-million was pledged to the Red Cross via text message. But churches and faith-based organizations we're a huge component of total as well. Among the results:

Adventist Development and Relief Agency has raised $3.2-million.
The American Jewish Joint Distribution Committee has raised approximately $5.5-million
American Jewish World Service has raised $5-million for its Haiti Earthquake Relief Fund.
Catholic Medical Mission Board has raised $1.3-million in cash and donations medicines and medical supplies worth $10.6-million.
Catholic Relief Services has secured $60.4-million in gifts and pledges.
Habitat for Humanity has raised $2.3-million.
Lutheran World Relief has raised more than $3.2-million.
Mennonite Central Committee has raised more than $3.2-million from donors in the United States, and another $5.1-million in Canada.
Mercy Corps has received $11.6-million.
The Salvation Army has raised $10.8-million.
Save the Children USA has raised $18.2-million, and another $48-million from its international affiliates.
The United Methodist Committee on Relief has raised $11-million.
World Vision’s U.S. operations has received $27.6-million in cash.

Powerful philanthropy at work!

Three Ways to Deal with a Difficult Budget

2010-02-02T23:30:00.000-08:00

An updated economic survey from The National Association of Church Business Administration (NACBA) has found even more churches struggling in the economic downturn. At the end of 2008, only 14 percent of survey respondents said their church was definitely having economy-related financial difficulties. In the last quarter of 2009, that number had risen to almost 35 percent - or 1 in 3 churches!

In response to the challenges, 47 percent said their church had frozen or reduced staff benefits (up from 18 percent in 2008). 20 percent had laid off staff, and 26 percent had postponed a major capital project.

But are staff cuts or capital project postponements the best ways to deal with difficult financial times and a shrinking budget? How else can churches survive the recession? Consider these three options:

#1: Slash the budget strategically.

Funding programs and ministries that have little, if anything, to do with a church's primary mission and vision can unnecessarily strain both financial resources and human resources. It can also lead to a decline as congregants realize that rather than paying for progress in the church’s mission to make disciples, they are funding an organization.

Steve Stroope and Dr. Aubrey Malphurs stress that churchesmust identify their core values, their mission, a clear vision and a strategy for accomplishing that vision before they approach the budgeting process. "Without a clear vision, values, and a strategy, you’ll not be able to develop a strategic budget," Malphurs and Stroope write in their book "Money Matters in Church."

They also caution churches against simply increasing the budget, despite a downturn in giving, under the mistaken assumption that people will rise to the occasion and make up for the previous deficit with newfound generosity. In fact, rather than relying on percentage increases in giving to set yearly budgets, Stroope and Malphurs recommend using the pattern of numerical increase only as a more conservative tool. For example, an annual budget of $200,000 that winds up with a $30,000 surplus would be used to increase the budget by $30,000, but only in the following year.

#2: Create an optimal staff size.

The largest single budget item for any church is its staff. Paid ministry personnel eat up the largest share of a church’s funds. On average, salaries and wages comprise 38 percent of church operating budgets. When asked what options they have considered to reduce expenses this year, 20 percent of churches say they have implemented salary freezes, followed by hiring freezes, pay cuts and layoffs.

Larger churches naturally require larger staffs. According to Tim Keller, senior pastor of Redeemer Presbyterian Church in New York, NY, "This creates a great burden on large churches, because unless you have a wealthy congregation, you can’t add staff as fast as you need to." The answer, he says, lies in a competent volunteer recruitment. A large and growing church must learn to depend more on lay ministry.

This means more decision making is left up to the staff and more basic pastoral ministry, as well as shepherding, teaching, and discipling is in the hands of volunteers. "In summary, in small churches policy is decided by many, and ministry is done by a few. In large churches ministry is done by many, and policy is decided by a few," Keller writes.

#3: Trim the fat.

A lot of large church budget items can be cut before leaders are forced to cut staff. "Bonuses, pay increases, ministry budgets and flexible expenses should be cut first," Eugene Mason writes. "Capital spending should be reduced. If the budget adjustments must result in loss of personnel, it’s crazy to leave in money for new Christmas decorations at the expense of a person’s livelihood. Personnel should be the last cut on the list, because when you make those cuts, they’re going to leave wounds."

Mason also mentions one budget item that should not be cut—especially in a time of financial struggle for more people than usual—the benevolence fund. Instead, he says churches should encourage more giving in this specific area. "Consider special offerings with the proceeds going to families in need in the church and surrounding communities," he writes.

These ideas, while focused on churches, are right for all mission-driven organizations. We hope these principles will be helpful as your leadership team faces challenging times and challenging decisions. If we can be of service, please call!

Ten Essential Responsibilities of Nonprofit Boards

2010-01-22T14:18:00.000-08:00

From Bridgestar, the "Ten Basic Responsibilities of Nonprofit Boards."

#1. Determine mission and purpose. It is the board's responsibility to create and review a statement of mission and purpose that articulates the organization's goals, means, and primary constituents served.

#2. Select the chief executive. Boards must reach consensus on the chief executive's responsibilities and undertake a careful search to find the most qualified individual for the position.

#3. Support and evaluate the chief executive. The board should ensure that the chief executive has the moral and professional support he or she needs to further the goals of the organization.

#4. Ensure effective planning. Boards must actively participate in an overall planning process and assist in implementing and monitoring the plan's goals.

#5. Monitor and strengthen programs and services. The board's responsibility is to determine which programs are consistent with the organization's mission and monitor their effectiveness.

#6. Ensure adequate financial resources. One of the board's foremost responsibilities is to secure adequate resources for the organization to fulfill its mission.

#7. Protect assets and provide proper financial oversight. The board must assist in developing the annual budget and ensuring that proper financial controls are in place.

#8. Build a competent board. All boards have a responsibility to articulate prerequisites for candidates, orient new members, and periodically and comprehensively evaluate their own performance.

#9. Ensure legal and ethical integrity. The board is ultimately responsible for adherence to legal standards and ethical norms.

#10. Enhance the organization's public standing. The board should clearly articulate the organization's mission, accomplishments, and goals to the public and garner support from the community.

The Board is often one of the most misunderstood and most underutilized resources in a church or nonprofit organization. Call us if we can help you take your board's work from good to great!

Communities Need Locally Focused Nonprofits

2010-01-22T14:13:00.000-08:00

Here's an interesting article from the Nonprofit Quarterly:

Too often the focus of the national nonprofit and philanthropic press is big-state and big-city oriented. Technically, McHenry County, Illinois may be in the Chicago metropolitan area, but lying northwest of Chicago, the county is small with a total population the size of a large Chicago neighborhood. Probably not all that many people can locate Woodstock, Illinois, which happens to be the county seat, or pay attention to the comings-and-goings of McHenry County nonprofits. But they should.

The McHenry County Latino Coalition shut down in 2009. A “victim of the recession,” according to one staff member, the Coalition had been largely dependent on state grants which “dried up during the state’s fiscal crisis,” and the organization lacked private funding to make up for the public sector cutbacks. Worth noting is that between 2000 and 2008, the Hispanic population of the County increased from 7.5 percent of 260,000 people to 11.3 percent of 318,000 people, reflecting the large increase in Latino immigration to Illinois during the past decade. Losing the Latino Coalition is no small thing to a rapidly increasing immigrant population that probably needs the kind of services of this small organization in Woodstock, Illinois.

This is a poignant reminder of (a) the importance of community-based organizations to the health of our communities, and (b) the need to diversify funding so that changes in any one source does not put our mission at risk.

Ask "Why"

2010-01-13T06:52:00.000-08:00

...And Ask It More and More

School tests and poor teachers and exhausted parents – the way the world operates – teach us that there’s one “right” answer to just about every question. So, questioning gets short shrift the older we get. Too often, questioning is seen as threatening or disloyal. But if we want to move our organizations -- and more importantly, our missions! -- forward, we need to ask "why" we do things...and to ask it more and more.

Clarifying purpose is an essential ingrediant to Monster Missions. Need help clarifying yours? Let us know.

Is This Charity?

2010-01-13T06:47:00.000-08:00

A great little "article" by Kristin Barrali of the Nonprofit Quarterly:

Goldman Sachs might require its top executives to pay a percentage of earnings to charity according to the New York Times yesterday. Bear Stearns tried a similar tactic, requiring their top executives to donate 4% of their salaries to charity. While Goldman Sachs is still working on the details, if their top executives have the large bonuses many are anticipating, this could infuse hundreds of millions of dollars into the nonprofit sector. We’ve written before about Goldman Sachs and the history of philanthropy as a public image booster. While nonprofits sure could use more money, it begs the question, is required giving voluntary giving? Is this what the IRS had in mind when it defined charitable giving? Either way, we’ll keep watching to see just how big those Goldman Sachs bonuses are and how their latest philanthropic endeavor takes shape. As my favorite news commentators Seth Meyer and Amy Polar said, “Also if you are trying to convince people that care about things other than money, may I suggest you remove the words “gold” and “sacks” from your name?

What do you think? Does "mandated" giving qualify as charitable? Philanthropic? How do you believe such approaches effect philanthropy as a whole?

Grow People

2010-01-12T07:36:00.000-08:00

A Chinese proverb: If you want one year of prosperity, grow grain. If you want 10 years of prosperity, grow trees. If you want 100 years of prosperity, grow people.

Quote: Leaders Give What Is Needed

2010-01-12T07:34:00.001-08:00

“Leaders give what is needed, not what is expected.” – Jerry Porras, Stewart Emery, Mark Thompson

Three More Years of This?

2010-01-06T17:01:00.000-08:00

Experts Say Giving Downturn Likely to Last Until 2012

A recent article in The Christian Science Monitor reports that giving may remain flat or continue to decline for a few more years. According to the Giving USA Foundation, contributions dropped 2 percent from 2007 to 2008 and are likely to decline more steeply this year. Another study concluded that, based on giving patterns in the aftermath of the Depression and the recession of 1973-75, inflation-adjusted giving won’t return to the 2007 level until at least 2012, even if the recession ended by this June.

Other recent studies have concluded that due to the shrinking economy, global shifts in economic power, and the enormous growth of the nonprofit sector over the past decade, a large percentage of churches and nonprofit organizations could remain in a chronically difficult situation for years to come. That is, unless, something significant changes.

Organizations that intend to continue to serve the needs of their community will have to confront this reality directly, implementing new strategies for raising funds and providing service that maximize resources and organizational impact.

Even amidst this challenging economy, numerous organizations continue to raise significant support, initiate new plans and programs, and increase their overall impact. New “start-up” organizations are emerging with energy, optimism, business smarts, and a ready-to-change-the-world posture. People are doing it. You can too!

This is not a time for incremental or reactionary thinking. This is a time for monster missions. This is a time for highly engaged leaders and teams. This is a time for real comprehensive and strategic approaches to funding. This is a time for creating new mission-driven visions and vehicles for impact – grounded in reality, but no longer relying on past paradigms for guidance and success.

This is, above all, a time to live on the EDGE.

Good In, Good Out

2010-01-06T16:59:00.000-08:00

A Simple Way to Change Your World

You probably work for a community or faith-based organization because you want to make a difference in the world, right? Well, if you really want to change the world, start by changing you.

Change the way you work. Change the way you communicate. Change the way you interact with people. If you can change you, then you can impact your environment. If you can impact your environment, you can have a positive influence on others. And if you can have a positive influence on others, you can actually change the world you are living in.

Consider for a minute the old IBM computer term, “Garbage In, Garbage Out.” What if the opposite is also true…good in, good out? To test this theory, try living the next few weeks by intentionally filling your day with good things like positive music, people, media, and prayer. As you consume “good things” then consciously move to producing positive actions and words. (Remember what your mom always told you, either say something nice or don’t say it at all.☺) And then take the time to show appreciation to people in your life who deserve it – someone who has helped you along the way, or who has always been supportive of you regardless of your strengths and weaknesses.

Once you have taken care of your world; start applying this “Good in, Good out” thinking to your charitable work. Take the time to make your workspace warm and inviting. Update your voice mail to include a holiday greeting or positive word for the day. Speak kindly about co-workers or team leaders. Write a thank you note to a special donor or volunteer.

Even the smallest “good thing” can make a big difference in the world in which you live. This life approach will not only make you feel better about your day, but it has the potential to transform your work too.

This is the day the Lord has made, let us rejoice and be glad in it.

Megachurch Pastor's Plea Brings in $2.4-Million in Three Days

2010-01-05T07:35:00.000-08:00

Did you see this article about Pastor Rick Warren's recent offering?

Parishioners of Southern California’s Saddleback Church donated $2.4-million last week after their nationally known pastor issued a plea for funds to close a $900,000 deficit, reports the Associated Press.

The Rev. Rick Warren, who delivered the invocation at President Obama’s inauguration last year, announced the windfall in a sermon January 2, three days after he posted a letter on his Web site detailing the evangelical church’s budget problems. He attributed the gap to a dramatic drop in holiday-season donations and the rising cost of aiding out-of-work parishioners.

Mr. Warren said Saturday that all the money raised came from church members in donations of less than $100.

What implications does this have on fundraising in your organization, if any? We would love your thoughts and comments.

Time for your Annual Report

2009-12-30T12:38:00.000-08:00

Year-end provides a fantastic time to communicate with your supporters and stakeholders - and an Annual Report is a great way to do it. The report can be used to communicate the impact your organization had in the year past, and to look ahead to your plans and expectations for the year ahead.

Habitat for Humanity just released a beautiful report - focused on outcomes and impact. Here's the lead sentence: "Despite the struggling economy, more than 61,000 families were served in fiscal year 2009 - the most we have ever served in a year's time. Celebrate our successes, consider our goals for 2010 and review our financial information in this year’s annual report." Great impact and outcome language!

We realize not all organizations have the manpower or design budget of an organization like Habitat. But no matter how modest the report, the discipline of doing it will force you to be strategic, and to communicate strategically with those that support you.

Call us if we can help!

World Peace, For Everyone, All Over the World

2009-12-22T18:08:00.000-08:00

A Lesson In Mission and Visible Message Making

True story. I was working today, trying to wrap up a long list of details that need to be accomplished before year-end, when there was a knock on my office door. In walked a young Asian girl (Chinese, I believe) asking for donations. English was obviously not her first language, and so we had a few communication problems. But here is general transcript of the conversation.

"What is this for?" Her answer: a charitable organization.
"What does the organization do?" Answer: brings peace to people.
"How?" Answer: Training and other programs that help bring peace.
"Where does the organization operate?" Answer: all over the world.
"Who does it help?" Answer: Children, university students...and adults

Now granted, we we're both struggling to be understood. But after a few minutes of talking with this representative about the organization she wanted me to give money to (right that moment), here's what I knew: they serve all ages, everywhere, with training and programs that bring peace.

I told her I had already made my gifts for this year. True. Mostly it was just a good excuse to mask the fact that, based on what I knew, I had no intention of giving her any money.

The conversation reminded me again of how important our organization's mission and message efforts are. Here are a few key points to consider:

Monster Missions bring organizational focus. Bringing peace to the whole world is a really nice idea, but nearly impossible to execute, especially for a small organization. Good Monster Missions should focus on outcomes, not programs, and help define what an organization can and will be responsible for.
Visible Messages require clarity. Saying you provide "traning and programs" is simply not enough. What do you do? How do you do it? What are the results?
Visible Messages require ROI. Needs and opportunities to give abound. Visible messages provide would be donors with a clear sense of what their money helps accomplish, what "return-on-investment" they can expect.

Make sure your would-be donors don't miss out on the opportunity to understand and support your amazing and life-changing work. Clarify your mission and message today!

Mission-Oriented Merger to Increase Impact

2009-12-21T13:27:00.000-08:00

According to an article in the San Fransico Chronicle, The Yosemite Association and The Yosemite Fund, two nonprofit organizations that provide private financial support and interpretative programs in Yosemite National Park, have decided to merge.

The Yosemite Fund, established in 1988, raises capital improvement money for projects in the park. Over the past 20 years, the fund has raised more than $55 million for 300 projects in the park. The Yosemite Association, which has headquarters just outside the park borders, has been a major player in Yosemite for years. It provides volunteers to help staff the museum in Yosemite Valley, it runs bookstores in the park, and it handles applications for wilderness permits for the park's backcountry, among other tasks.

Three things to note:

Mergers and partnerships are really happening! We keep hearing about the concept, but smart organizations are looking for ways to maximize their effectiveness and expand the reach and impact of their mission.
They have complimentary strengths. These two organizations focus on different components of work (fundraising, programs), are focused on the same "cause," and realized that they were stronger together than apart.
Strength squared. Both organizations have successful histories and have been around for some time. Their merger isn't about surviving, it's about moving forward!

We believe that mergers and partnerships provide one important way for organizations to "find a better way to do more good." If you'd like to explore the possibilities for your organization, give us a call!

Hero-focused Appeals

2009-12-08T01:59:00.000-08:00

Every good story needs a hero. Here are four tips by Michael Margolis to better-framed fundraising appeals that focus on a hero and a good story:

Tip#1: Recognize that every good story needs a hero. We all want a central character to root for, to sympathize with, and to get invested into what happens next. Without a sympathetic hero, a story often arrives dead on arrival. But who is the hero in your fundraising appeal? And where do heroes fit in the world of marketing and sales?

Tip #2: When it comes to marketing, it usually works best to put your customers at the center of the story. Rather simple when you're selling laundry detergent or TV dinners. We love to hear stories that appear to be about us. If you can see yourself in the story, you are more likely to buy-into the message. That's why most consumer product commercials build around the customer as hero.

Most nonprofits don't have the luxury of a clear customer. At least not in the traditional sense. Instead, you face the murky waters of multiple stakeholders each relating to your issue from different angles: beneficiaries, donors, members, clients, and indirect customers. It's not an easy story to tell.

Tip #3.Consider the following three hero alternatives:

Donor/Member as Hero - In many ways this most resembles the classic "customer as hero" storyline. The donor/member audience is often your "financial buyer" and therefore you want them to identify within your story. No better way than if they somehow see themselves inside the story. The challenge with this is that it puts a lot of emphasis on donors, and can perpetuate imbalances of power, endemic to the philanthropic sector.
Beneficiary as Hero - This is the most common hero chosen by nonprofits. On one hand, this hero is often closest to the "action", and the direct mission of your organization. The challenge with this choice is that the story often turns into an glorified "overcoming adversity" story which is often dismissed as clichéd and melodramatic. Audiences are quick to tune out this story if they don't personally relate to the hero.
Founder as Hero - Some nonprofits are started by charismatic leaders who experience or discover something they don't like and decide to personally do something. CNN Heroes Awards honors these kinds of heroes. This story is most familiar in our modern culture that seeks to celebrate regular individuals accomplishing extra-ordinary feats. The challenge here comes when the story needs to live on and travel beyond just one person. How do you get others to feel like they also own a piece of the story and can effectively speak on its behalf?

Tip #4.You are not restricted to these three classic hero alternatives. In practice, it can work any, which way, as long as you're telling the right story. You can also consider making your brand the hero, your culture/values the hero, or even use a metaphor as the hero. But each of those comes with their own set of issues.

There is an ideal goal to keep in mind: Make your hero a character everyone can relate to - donors, beneficiaries, employees, and stakeholders alike. In other words, identify the common identifiers and connections that cut across audiences. Too often we spend time reinforcing the differences of income, age, ethnicity, etc...instead of identifying that which invites and unites.

Not everyone's been homeless and lived on the streets. But most of us have felt overwhelmed, alone or completely lost at some time in our life. If homeless organizations spent more time telling this bigger story, they would reach a wider audience, than those who self-identify as "caring about homeless issues". The best stories are those that transcend the traditional boundaries and remind us of our collective humanity.

Choosing the hero of your story is not always a simple process. But it goes to the heart of how your nonprofit frames its story for (a) wider mainstream acceptance or (b) more narrow restrictive appeal. The choice is up to you.

93% of Charities Feel Recession's Impact

2009-12-08T00:49:00.000-08:00

The stock market may be rebounding, but for charities the negative impact of the recession has only deepened over the past year, according to a survey released by the Bridgespan Group, a nonprofit consulting group in Boston.

Ninety-three percent of charity leaders said their organizations are feeling the effects of the economic downturn - a significantly higher percentage than in previous polls.

2010 promises to be a challenging year, and will require organizations to consider new strategies and models for reaching both donors and those they serve.

Stewardship as a Lifestyle

2009-12-08T00:41:00.000-08:00

Pastors and ministry leaders will want to check out John Frank's recent post Stewardship as a Lifestyle. It's an excellent take on what stewardship implies to our organizations and to those that support us. Here's an excerpt:

I have a challenge for my leadership friends in churches and parachurch ministries: Your organizations are not in Scripture. What you do is. To feed the hungry, care for the widow and the orphan, share the Good News, and the like are clearly in Scripture. But your organization, denomination, or local church structure is not defined in the Bible.

The steward by contrast is Scripturally defined. God cares about how we live. He is concerned with how we, as stewards, invest ourselves in frontlines ministry. We will be held accountable for our stewardship generosity in caring for God's people. (Phil. 4:17) Our churches and ministries are conduits for stewards to exercise their priorities and callings.

Do you work in an organization without a faith-based orientation? Well, the lesson still applies to you! What you do, not who you are, is what matters. Our organizations are conduits for our donors/stewards to exercise their priorities, passions, and callings. We serve to help them serve.

So be it.

Developing an Effective Strategic Fundraising Plan

2009-12-08T00:25:00.000-08:00

Ready to start planning for 2010? Well, here are ten excellent steps from Douglas Shaw and the Christian Leadership Alliance for forming a Strategic Fundraising Plan. (Notice how mission-driven the whole plan is!)

Identify your Mission Statement/Vision Statement.
Establish your goals for each major area of responsibility as they support your vision and mission.
Document your historical methods for achieving your goals and their effectiveness.
Establish assumptions for each major area of consideration.
Develop specific strategies for each area including all resources needed to accomplish your goals.
Review your strategic plan to assure compliance with goals and their direct support of your mission. Confirm that resources are available; if not modify the plan to acquire additional resources or downsize the plan.
Publish your strategic plan to all members involved in accomplishing it.
Monitor the execution of your plan, making modifications to assumptions as new information dictates.
Modify your plan as reality dictates, making sure that all parties are aware of all changes and appropriate approvals are secured.
Maintain a continuous planning file during the course of the year to facilitate more effective planning in the upcoming year.

Need help? Give us a call!

Top 10 Ways to Boost Online Giving at Year-End

2009-12-02T10:38:00.000-08:00

Online Giving Strategies for Successful Year-End Campaigns

The most important - and most critical - giving season is upon us. For many nonprofits, one out of every two gifts comes in the last three months of the year.

Online giving is even more important at year-end. About 40 percent of online gifts are made in December. And 40-60 percent of those gifts are made the last two days of the year. Online giving brings in wealthier, higher-dollar and younger donors. AND the average online gift ($84) is much higher at year-end than earlier in the year ($67).

Smart fundraisers want to be all over their online fundraising strategies. Use these tactics from Gail Perry to zoom past your year-end goals:

#1. Use multiple asks this month and multiple formats. Repeating your appeal is always more powerful and successful than a single ask that goes out as a stand-alone effort. People are busy during the holiday season and they will need plenty of reminders. Donors all have different visions of how they want to help you and how they want to give. So be sure to offer different giving opportunities and a variety of ways that they can support you.

#2. Start now. The first step to any fundraising campaign is thanking your donors for their partnership and friendship. Start with a pre-or-post-Thanksgiving feel-good note that expresses your thanks to your donors.

#3. Vary your messaging. Share a compelling, emotional story about a special success; recap your outcomes and accomplishments for the year; help your donors celebrate your successes; or ask donors who have already given for an additional year-end gift, as you talk about the challenges of the coming year. Create a deadline-driven challenge or matching gift opportunity that can build momentum and visibility.

#4. Promote philanthropic gift-giving. "Holiday e-cards for your family and friends" provide a green alternative that can promote your nonprofit AND carry a donation to your cause. "Last minute holiday gifts" promote gift memberships that your donors can give to others.

#5. Focus on tax deductibility on Dec. 30 and 31. Remind your donors that they can make a secure last-minute donation just in time for the tax deadline. But only send this after Dec. 26. Here's an example: December 23 -a "holiday support" email; December 29 - an email emphasizing tax deductible giving opportunities; December 31 - a final "last chance to donate" email.

#6. Be sure your website is up to date and snappy. Remember that over 65 percent of ALL DONORS will probably check out your website before they write a check or make a gift, according to Kivi Leroux Miller of nonprofitmarketingguide.com. Here's a list of the Top 10 things donors want from your website. And be absolutely sure that your call to action is clear, concise and directive!

#7. Make it easy to give. Online donors are often impatient and in a hurry. If you make it difficult for them, they'll be gone - possibly to another nonprofit's site. A majority of would-be donors never make it through the process to complete their gifts. Make sure the online process is easy, provide phone support, etc.

#8. Create an extra large "donate now" button. Check out Network for Good's three tips for the best donate button: make it big; put it above the fold, and create a simple, easy-to-use contribution form.

#9. Make your donate page seamless and easy to whiz through. Check out this list of the 11 Deadly Sins of Donate Page Design from Seachangestrategies.com. Be sure you avoid these common mistakes in nonprofit donate pages: Cluttered pages, Unintuitive layouts, Unclear directions, Long and complex forms, Unnecessary fields

#10. Test your own online donation process. Ask a friend to make a donation and watch them as they go through the process. Ask them for feedback as they are making the gift. Ask them to find the site, and find the donate page - and see how easy - or difficult it is.

Four Nonprofit Essentials for Effective Social Media

2009-12-01T10:31:00.000-08:00

The study, ENGAGEMENTdb: Ranking the Top 100 Global Brands, reviewed how the top 100 most valuable brands (as identified by the 2008 BusinessWeek/Interbrand Best Global Brands rankings) use more than 10 different social media channels, including blogs, Facebook, Twitter, wikis and discussion forums. (The full report, along with the survey and comparison tool, is available at the ENGAGEMENTdb website, http://www.engagementdb.com/.)

While the study focused solely on for-profit entities, the findings from the study can be easily applied to nonprofit organizations, and offered four key tips for organizations just beginning to find their way in the social media arena:

#1: Emphasize quality, not just quantity. The report shows that engagement is more than just setting up a blog and letting viewers post comments; it's more than just having a Facebook profile and having others write on your wall. Rather, it's keeping your blog content fresh and replying to comments; it's building your friends network and updating your profile status. Don't just check the box; engage with your customer audience.

#2: To scale engagement, make social media part of everyone's job. The best practice interviews have a common theme--social media is no longer the responsibility of a few people in the organization. Instead, it's important for everyone across the organization to engage with customers in the channels that make sense--a few minutes each day spent by every employee adds up to a wealth of customer touch points.

#3: Doing it all may not be for you--but you must do something. The optimal social media marketing strategy will depend on a variety of factors, including your industry. If your most valuable customers do not depend on or trust social media as a communication medium, or if your organization is resistant to engagement in some channels, you will have to start smaller and slower. But you must start, or risk falling far behind other brands, not only in your industry, but across your customers' general online experience.

#4: Find your sweet spot. Engagement can't be skin-deep, nor is it a campaign that can be turned on and off. True engagement means full engagement in the channels where you choose to invest. Thus, choose carefully and advocate strongly to acquire the resources and support you will need to succeed. If you are resource-constrained, it is better to be consistent and participate in fewer channels than to spread yourself too thin.

Three More Years of This?

2009-11-30T10:15:00.000-08:00

Stop Choosing Program Over Mission

2009-11-21T13:33:00.000-08:00

Great Thoughts for Pastors of Mission-Minded Church Leaders

Here is John Pearson's review of the book Missional Renaissance: Changing the Scorecard for the Church, by Reggie McNeal.

Reggie McNeal says that “the rise of the missional church is the single biggestdevelopment in Christianity since the Reformation.” That’s an extraordinary claim—and you should read his latest book to see if you agree.
Churches, he argues, can now be divided into two groups: those that get it (being missional) and those that don’t. The typical clergyperson, McNeal writes, “Is groomed to do project management (yes, even the sermon is a project) and perform religious rites, not develop people.” So he calls the church to a new role and a new scorecard:
Ministry focus: from internal to external
Core activity: from program development to people development
Leadership agenda: from church-based to kingdom-based
The missional movement is not about “doing church” better. “It is not church growth in a new dress,” or a hot new trend or fad. So what is it? McNeal says that “the missional church is the people of God partnering with God in his redemptive mission in the world.” The focus is on the world, not a full calendar of church activities that are exhausting, not equipping, God’s people.
The author/church consultant reports on many North American church leaders who have moved from a church-centric operation (come to our buildings) to a community focus (we go to you). Example: a senior pastor sent his staff into the community (malls, schools, stores, etc.) and asked them to observe people through God’s eyes for one hour. Their conclusion: all the nifty programs back at the church were not now reaching nor would they ever reach those people. Then on a Sunday he sent the whole church into the community to observe. Bingo! The people got it—and it turned the church upside down by being outwardly focused.
McNeal adds, “We were told that if we built successful churches, people would come. We bought and paid for the lie that Six Flags over Jesus was what the world needed. We believed that if we built better churches, our cities would be better off. We telegraphed in dozens of ways the message that involvement in church life was the portal to fulfillment and the mark of an abundant life.”
“The program-driven church has produced a brand of Christianity that is despised, not just ignored, by people outside the church.” His solution? We need a new scorecard to measure what matters—not church attendance and a zillion sermons, but out-in-the-trenches life-on-life community engagement that produces life transformation.
McNeal then suggests how a church could reallocate resources and he gives more than 75 missional indicators that could be measured in six key areas: prayer, people (leaders and others), calendar (time), finances, facilities and technology. For example, he suggests you measure the number of schools that use the church’s facilities. Another measurement: track the amount of time invested in leaders meetings that focus on the people development side.
If McNeal is right—that there is (or will soon be) a major chasm between those “doing church” versus those “being the church”—then this insight from Phil Cooke’s newsletter, The Change Revolution, is noteworthy. Citing Alexander von Humboldt's Three Stages of Scientific Discovery (as referenced by Bill Bryson in his book, A Short History of Nearly Everything) Cooke notes that there are five stages to innovation:
People deny that the innovation is required.
People deny that the innovation is effective.
People deny that the innovation is important.
People deny that the innovation will justify the effort required to adopt it.
People accept and adopt the innovation, enjoy its benefits, attribute it to people other than the innovator, and deny the existence of stages 1 to 4.

Leadership Controversy Impacts Fundraising and Future

2009-11-12T11:39:00.000-08:00

Feed the Children, one of the nation’s biggest antipoverty charities, enters the crucial holiday fundraising season with a fundraising situation much more challenging than the bad economy: It is embroiled in a high-profile legal dispute after it fired its founder and most prominent fund raiser, Larry Jones.

The report from the Chronicle of Philanthropy states that Feed the Children raised more than $1-billion last year in cash and donated goods, placing it at No. 5 on the most recent Philanthropy 400, The Chronicle’s list of the charities that raise the most each year from private sources. The organization provides food, clothing, medicine, books, and other supplies to needy children and families in the United States and overseas.

Whatever the specifics of the organization's leadership issues, here's the point - leadership matters. Decisions made by senior leaders and board members can either ignite an organization's mission flame, or nearly extinguish it. The volunteers, staff members, stakeholders, and most importantly the people served, all benefit from good leadership. Unfortunately, with poor leadership, they can all suffer too.

This is why EDGE places such an emphasis on leadership while working with charities, churches, and schools. Strong, mission-driven leadership is the backbone of all good work. Under it's guidance, good work has the opportunity to flourish. But more than one organization has experienced the dismay and disruption of leaders and boards who put their own needs above the needs of those they serve, destroying invaluable amounts of good work in the wake of their decisions.

In Feed the Children's situation, the politics and lack of good leadership is threatening more than the organization's year-end fundraising.

New Fame for the Everyday Donor

2009-11-12T11:20:00.000-08:00

The New York Times recently published an article on the impact of small donations. Large multi-million dollar gifts usually get all the media attention, but the philanthropic reality is that more than 80% of all individual donations come from people with middle or low incomes.

"We are deluded by the attention paid to the large contributors in our country,” said Wendy Smith, author of Give A Little: How Your Small Donations Can Transform the World. “Small checks coming through the mail are the bread and butter for most organizations.”

Here are a couple examples:

Example 1: After a tsunami devastated parts of southeast Asia in 2004, individuals in the United States donated $2.78 billion of the $6.2 billion raised for relief efforts — and the median gift was $50.

Example 2: One Day’s Wages, a new charity established by Eugene Cho, a Christian minister in Seattle, asks donors to give up a day’s income to charity. The idea came to Mr. Cho during a trip to Myanmar a few years ago when he visited a school in the jungle whose teachers were taking better-paying jobs in bordering Thailand. He asked a village elder what it would take to retain teachers, and they said about $40 each. Not a week. Not a month. “I realized he meant per year,” said Mr. Cho. “It hit me: $40 can make a huge difference.”

Measuring Outcomes, Not Dollars

2009-11-11T17:31:00.000-08:00

This quote from Robert Egger, Founder of DC Central Kitchen and author of "Begging for Change," is a crucial message for organizations, ESPECIALLY in the midst of a challenging economy.

"From now on, giving isn't enough. Philanthropy has to take itself to the next level by demanding results from what's given and taken. We've already been down the road of using money as a metric. Charity for the 21st century is about the ways in which we use money - and other resources - to get the maximum long-term results in whatever or whomever we're trying to help. If the 20th century was all about bucks, the 21st century has to be about what kind of bang we can get from those bucks."

Who are we in this for?

2009-11-11T12:54:00.000-08:00

The Wall Street Journal (online) is reporting that charities and foundations are lobbying Congress to maintain the estate tax at current levels.

"Nonprofit coalitions such as Independent Sector and the Council on Foundations are urging members to press lawmakers to keep the 45-percent rate and $3.5-million exemption." Because charitable bequests lower the taxable value of estates, keeping the higher tax rate in place gives people an incentive to contribute to charity at death rather than leave everything to heirs.

I think for-impact organizations stray onto dangerous ground when they start lobbying for tax policy that puts the needs of the organization above the needs and personal choice of the donor. In the long-run, real philanthropy cannot be advanced by such tactics.

Maximizing Monthly Giving

2009-11-11T10:19:00.001-08:00

There is a good reason why we encourage organizations to pursue regular/monthly giving plans with their donors: donor regularity strengthens their value of and engagement with the organization. If you can get donors to give to your organization on a regular, ongoing basis, they will give more and be more engaged.

If you haven't started down the "regular giving" path, here are six key elements from Jonathan Grapsas of Pareto Fundraising to producing inspiring, compelling and effective conversion campaigns - campaigns that encourage your donor to make the move from occasional contributor to regular supporter.

Step 1: Focus on the benefits, not the "product." Many charities get obsessed with product names for monthly giving programs and forget that donors want to support beneficiaries, not products. Do not be converned about a fancy name; rather, highlight the difference the individuals support will make (such as, "...with a monthly contribution of $20, you can make a profound difference in the life of a needy child...").

Step 2: Explain why monthly giving is so vital. Remember, you aretrying to change behavior, not attitudes, so a clear and thorough explanation of the importance of monthly giving is crucial. It is important because it provides long-term and committed support that allows your organization to plan more effectively and therefore make a bigger impact - not just save on administration costs ("...with your affordable gift every month, you will help make it possible for us to commit to the highly effective, long-term work these children need...").

Step 3: Target the right donors. A simple but effective election criteria should include donors who have donated more than once, have given within the last 12 months, whose gift is greater than $20 and who have previously paid by credit card (which indicates a propensity to use periodic payments.). If you overlay these criteria, you will reduce your selection significantly and increase the likelihood of a greater response.

Step 4: Use compelling and empowering copy. Always talk about the impact this change of support will have on someone's life. It is not about the organization, but the people it supports. Use language that suggests that donors are becoming your partners, not monthly donors.

Step 5: Personalize where possible. Go beyond name and address. Always refer to the donors' past support and the impact it has made. Talk to them about areas of your work that you know they are interested in, and refer back to comments they have made in the past or areas they have told you (through surveys) they are passionate about ("...For more than 11 years you have provided exemplary support... I know that you share my concern about the increase in homelessness among children...").

Step 6: Break it down into daily amounts. A dollar a day is easier to sell than $30 a month. Make the amount sound affordable to the average person, even using analogies such as "less than the price of a cup of coffee."

The Imaginary Feast

2009-11-10T16:03:00.000-08:00

I recently received an invitation to PATH Partners Imaginary Feast. "The Imaginary Feast will not be at a fancy hotel. Cocktails and dinner will not be served," it read. This imaginary donor event encouraged donors to put the money they saved on clothes, dinner tickets, baby sitting, and parking toward the mission of PATH (People Assisting the Homeless).

What a brilliant idea - and so in touch with the current economic-outlook of most donors! This non-event is very visible and very mission-driven.

Donors are tired of the well-worn trails of fundraising. Let's follow PATH's example and keep working to create mission-driven, philanthropy-raising events!

What's Wrong With Charitable Giving—and How to Fix It

2009-11-09T16:37:00.000-08:00

That was the title for Pablo Eisenberg's recent editorial in the Wall Street Journal. "What can foundations and others do to make a difference for the nonprofits and the people they are designed to help?" he asked.

Well, here are nine changes Eisenberg says would go a long way toward making philanthropy do what we all claim we want it to do:

Increase the Distribution Percentage
Increase General Operating Support
Increase Multiyear Funding
Adopt Rolling Grant Making
Allocate More Funds to the Truly Needy
Reach Out to Local Groups And Underserved Regions
Simplify Application and Reporting Procedures
Improve Public Accountability
Fund the Watchdogs

Once you read the article, we'd love to know your feedback. Do you agree with Eisenberg's assessment of "how we can fix it"?

Also, check out these other articles from the Wall Street Journal's nonprofit series.

Philanthropy is Too Donor-Centric

2009-11-09T16:29:00.000-08:00

In a recent blog post, Holden Karnofsky writes that philanthropy suffers from being too donor-centric. Karnofsky is a founder of GiveWell, the nonprofit group that rates charities. “The sector revolves around telling donors great stories, while charities’ actual impact is unexamined and essentially irrelevant,” says Mr. Karnofsky.

This post has some really interesting thoughts about charitable-return-on-investment, something we’ve been talking about as a part of “visibility” for some time.

Morale Boost

2009-11-06T18:17:00.000-08:00

Improve post-layoff morale by communicating hope and encouraging creativity

Here's a recent article from the Christian Leadership Alliance with leadership tools to help your organization move forward after layoffs. The article answers three key questions:

Q1: How can an organization best prepare employees for layoffs?
Q2: What is the immediate effect of layoffs on employee morale?
Q3: How can employers best encourage this refocusing of creative energy?

Take a moment to read it for yourself.

Expectations of the CEO

2009-11-06T16:29:00.000-08:00

Here's a recent Christian Leadership Alliance post by Dr. William C. Crothers containing excellent priorities for CEOs and executive leaders.

The CEO can delegate to others many aspects of his responsibilities, but he cannot delegate away some aspects of development. He must be personally engaged in the process if the institution is going to be effective. The role of the CEO includes at least the following:

1) Articulate Vision and Mission. The president must communicate with enthusiasm the vision for the institution and the institution's mission. This creates a positive climate for fund-raising. A study at the University of San Francisco of successful fund-raising presidents documented that enthusiasm for the institutional mission was the first priority.

2) Conserve Institutional Integrity. Donors will give gifts to institutions in which they have confidence. Compromises to personal and institutional integrity can be devastating. The pressure to compromise can come from internal or external forces.

3) Lead Strategic Planning. A fund-raising campaign is a logical extension of the planning process, but the CEO needs to articulate the need for a capital campaign and assist in building a compelling case statement. The President must also build conscience around the priorities and ensure agreement on the solutions proposed in the case statement.

4) Foster Team Spirit. Fund-raising is a team effort and the relationship between the board, the senior development officer, volunteers, and the president is fundamentally important.

5) Assure Leadership. The president should expect strong leadership in development including a written development plan and an accountability system for each development staff member. The president should receive weekly reports on calls made and should expect follow through.

6) Allocate Time Appropriately. To be successful in development, the president should expect to focus at least a third of his time off campus in development and external relations. During critical periods of a capital campaign it may be more.

7) Build Relationships with Prospects. A president should be engaged in external community relations for the purpose of identifying and cultivating major prospects. The objective is to move prospects along a continuum of commitment: identification, introduction, cultivation, involvement, solicitation, appreciation, and ownership.

8) Serve as Solicitor of Major Gifts. The major donors want to know the president personally. The president should expect to receive a briefing from the development staff prior to making the development call, and the development staff should expect the president to do a report on the visit for the files.

130 Foundations That Tweet

2009-11-06T13:22:00.000-08:00

Unless you've been hiding in a cave, you're aware of the social media rage around Twitter - a microblogging tool allowing users to send 140-character messages to one another, follow the tweet-streams of others, and be followed by those interested in what they are saying.

Chances are you've thought about using this tool to reach your donors, supporters, congregants, and volunteers. But what about Foundations? Kris Putnam-Walkerly's recent post provides the names (and tweet addresses) for 130 foundations that use the tool actively.

Take a look at the list...you just might just find an organization you've been looking to connect with!

Top 10 Year-end "Over Goal" Fundraising Strategies

2009-11-06T13:13:00.000-08:00

From Guidestar.

The fall fundraising rush is upon us. You are probably deep in your year-end fundraising campaign. And this December should be a big one. The fundraising outlook for year-end is looking more positive. Donors who were reluctant to give earlier this year seem to be feeling more generous right now.

This year your year-end campaign needs to be the best ever. Here are my Top 10 Strategies that will help you zoom past your year-end goals.

Identify the 10-15 major donors who have yet to give in '09. Go see them personally, find out what is on their minds, and ask them for another commitment this year. This could be the one single thing that catapults your fundraising for the year.
Identify 50-100 donors and make face-to-face calls on them to ask them for their year-end gifts. If you can't do 50 personal visits, then do 40, or 30. Enlist your volunteers to help. But you MUST include personal one-on-one "asks" in your year-end fundraising strategy if you want to zoom past your goal.
Don't let reluctant volunteers hold you back. Some volunteers are saying, "Let's just ease off the personal visit because of the recession." Here's what you say back: "When is it ever a great time to ask for money? There's too much at stake. We have to ask now.
Warm up your donors before the ask. Send your donors an e-mail saying, "I want you to be the first to know that we will launch our year-end campaign next week. Our goal is X. The theme is Y. The deadline is December 31... You will receive a letter describing the campaign, and I hope you will pay close attention and respond.
Don't forget to add to your prospect list. Include your suppliers and vendors, your volunteers, past board members, capital campaign donors, and even your clients themselves.
Use a visual and emotional hook in your appeal letter. Use a visual metaphor such as a lunch box (food for the hungry) or a diploma (for scholarships). And don't begin your letter with "For 20 years the xxx organization has lovingly served xxxx people in our community." (Yawn!) Instead start like this: "Little Johnny Smith woke up Monday morning, hungry again." Makes you want to keep reading, doesn't it?
Make your appeal letter attractive and easy to read. Use white space. Short sentences. Short paragraphs. Action verbs. Pictures. Boldface headings. Wide margins. Make it readable by someone who is just skimming. Use the pronoun "you" liberally.
Make your solicitation obvious and easy to find. Place it in the very front of the third or fourth paragraph. And in the first few words of a sentence. By all means, don't bury it at the end of a paragraph deep at the end of a sentence. Then most readers will totally miss your "ask" because they only skim the first part of any paragraph. And, of course, always ask for a specific amount.
Follow up the appeal letter with a phone call. A call can double your response. If you only send out one appeal letter, you can expect your return to be only about 15 percent. Keep communicating with non-responders until December 31.
Plan one or two e-mail follow-ups the very last two days of December. Studies show that 40 percent of online donors make their gifts in December, and that 40-60 percent of those donations are made December 30 and 31. Which means that your Web site needs to be updated and snappy, with a great big "donate now" button.

Writing for the Web

2009-11-06T13:04:00.000-08:00

On the web, reading is perceptually harder, with visitors to your site processing Web information read 25 percent more slowly than they can read your printed materials. This leads to reader fatigue. On top of this, when someone arrives on a webpage, especially if from a search, there may be limited context with which to help in processing the information.

In a recent NTEN post, Debbie Moorehead provided some tips for getting your web content read, and UNDERSTOOD.

Tip #1: Lead with Clarity

Mention (or subtly imply) your target audience near the top of your webpage.
Link to your website's homepage from individual pages in multiple ways. Make the intent of the material obvious. Are you providing general information, answering a question, etc.?
Get right to the point. Avoid long, interesting opening paragraphs used in print.

Tip #2: Simple Is Better

When writing for the Web, use text that is succinct and focused.

Use short words, sentences and paragraphs. Leave the "big words," compound sentences and endless paragraphs for your printed materials. (And you might want to avoid them there also, but that's another article.)
Lead with your main point. Provide two to three sentences to quickly get to your main point.
Use bold and/or italics for important words and terms.
Use in-line links instead of more copy.
Write your piece ... Then cut: Only keep information without which your meaning is lost.

Tip #3: Don't Forget Search Engines

In addition to making your Web writing accessible for your website visitors, write to increase your search ranking - critical to ensuring the most - and most appropriate - visitors to your nonprofit organization's site.

Choose a meaningful title for your page (two to four words if it's part of a larger title).
Make sure your opening paragraph provides a clear and accurate page description. It is the information that will be displayed in search results.
Use focused, structured, usable content with links.

Tip #4: Think About Structure

You will want to structure your information in a way that makes it easier for your visitors to follow.

Most general content pages should be one to two screenfuls (200-400 words).
Some content merits lengthier pages. For example, articles like this one are easier for visitors to follow if all on one page.
Break up paragraphs with clear headings, which reflect content (in-line or regular). Use bullets or numbered lists so that visitors can scan the information quickly (remember that Web reading is 25 percent lower).
Use subheads and captions to break up text.

Tip #5: Use Smart Links

Inbound links (within text) help drive traffic to your nonprofit's site and establish you as trustworthy. However, users may miss these, so duplicate links at page end.
Outbound links cause users to rely on you as a resource and increase your website's "credibility" with search engines.
"Click here" should be used rarely, if ever. Instead make a simple word or phrase "hot."

While maintaining your nonprofit organization's website takes a lot of thought, time, energy, money and more, beginning with clear, simple and accessible writing is the first - and most critical - step to making it effective.

Secrets of the Charismatic Organization

2009-11-05T17:43:00.000-08:00

From GuideStar.

Where some nonprofits are chronically underfunded, others can raise hundreds of thousands of dollars at a single event. Their boards are full of energetic, knowledgeable, and connected people. They have grown steadily over the last decade. They are the go-to groups on their issues, the places to work, the leaders in their fields.

The reason for the success of these nonprofits is not charismatic leadership. Not every charismatic leader runs a successful organization, and not every successful organization has a charismatic leader. The secret is far simpler—and within the reach of any organization.

Imagine a strong, well-run organization. It is almost inevitable that human capital—board members, staff, and volunteers—is fundamental to its success. Nonprofit organizations that successfully attract and retain human capital rarely do so with high compensation packages or glitzy perks, however. They do so by inspiring people with their missions and by building strong connections among those who work for the cause. In this way, they attract not just staff but other essential human capital as well, including board members and volunteers, all of whom make it possible for the organization to deliver on its mission.

Focusing only on internal management, however, will not build a charismatic organization. Nonprofits also need to draw new people into their circles—as staff, volunteers, donors, political supporters, and influential champions. They do this through powerful communications, active outreach, and offering multiple opportunities for engagement—not just an annual holiday appeal but a wide array of occasions for individuals to connect to the cause in meaningful ways.

In short, success demands high levels of social capital—relationships with people who will make introductions, recommend the organization for funding, build partnerships, advocate for the cause, tell others about the organization's work, recruit staff and clients, and act in dozens of other ways to support the organization. Instead of focusing on major donors or influential policymakers, organizations that hope to increase their influence and impact need to focus on building relationships at all levels. In short, social capital is the key to unlocking all other essential forms of capital that nonprofits need—including financial, human, and political capital.

In an organization with strong social capital, once a person checks in, they rarely check out. A former staff person becomes a board member. A donor becomes a key partner. A client becomes a volunteer. And they bring their friends, families, and colleagues with them. Among the benefits that these organizations receive from building social capital is that it forms a bridge to other networks. Each staff person, board member, volunteer, and client is the hub of a potentially vast network of other contacts. They may belong to clubs or sports teams, religious congregations, or book groups. They have family members—spouses, in-laws, cousins, children, or grandparents. They have current or former employers, and their family members do too. They meet people on planes or trains or bus stops. And they have friends—different friends, in all likelihood, from diverse walks of life.

So when it is time to find a new receptionist, corporate partner, or person who knows the mayor or how to use social networking Web sites, the organization has the ability to reach beyond the people on its payroll for help. The volunteer who does the Saturday shift may be married to the mayor's press assistant and have a daughter who's a computer whiz. The client who credits the organization with changing his life may know someone who runs the biggest company in town. The receptionist who is moving on may know someone from her synagogue who would be just right for the job. And when it is time to play "Six Degrees of Separation" to find the right person to make a call to a congressman, these broad social networks significantly increase the likelihood of success.

Most organizations could increase their social capital with reasonable effort. They could prioritize their outreach and cultivation efforts. They could tell their story more compellingly and widely. And they could make it easy for new people to join their community—using their strong track records and existing relationships to reach out credibly to a broader network of prospective staff, volunteers, funders, and other champions. Building social capital can't be within the sole purview of the organization's leader; it needs to be a key responsibility of everyone who cares about the cause. When that happens, any nonprofit can become a charismatic organization.

Creating Social Media Opportunities

2009-11-05T17:28:00.000-08:00

Using outbound strategies to cultivate new relationships

One of the most powerful aspects of social media is the opportunity it gives organizations to increase their connection and relationship with their supporters. And yet, so many organizations fail to cultivate that opportunity – expecting that their donors, volunteers, or congregations will just somehow stumble upon their social media “presence” and join the conversation.

Here are just some of the ways that you can encourage your supporters to join your online conversation:

Get a Facebook Page and put a fanbox on your site.
If you’re on Twitter, put a follow me button on your site.
While we’re at it, get a blog – it’ll have an RSS feed folks can easily grab.
Have an outbound link to your organization’s Flickr gallery.

Make sure these connection points show up on every appropriate page on your site – not just the home page. And don’t forget to put social media links in your email newsletters. By doing so, you’re giving your donors, supporters, and prospects multiple ways of opting in to you and what your organization offers.

Recession-Sensitive Tweaks for Visible Appeals

2009-10-29T15:28:00.000-07:00

If you're like most organizations, your financial needs are intensifying. Demands for services continue (and may even be increasing) while donations stall or slide.

While you cannot possibly know the economic circumstances of all your individual donors, and you want to be sensitive to those who may be struggling or out of work, you can't stop asking for money entirely. So what are you supposed to do?

Our suggestion keeping asking, but with four things in mind:

Empathy is appropriate. Acknowledge times are hard - for everyone - right now. If a donor can't give, they'll appreciate you understand this.
Show you are tightening your belt. Describe every step your organization has taken to tighten your belt and operate as efficiently as possible this year.
Demonstrate that all donations count. Because you're stretching every dollar, make the point that every donation helps more than ever this year - whatever the size of the donation.
Show impact. Thank your donors profusely for their past help and explain in tangible, vivid terms how their donations have made a big difference. And then do it again and again and again. Donors usually don't stop giving because they don't have money. They usually stop giving because of a surfeit of appeals and a shortage of thanks. Show donors that they are making good things happen - and give them credit for every piece of good news you have about your programs.

Source: Nonprofitmarketingblog.com

Americans Unsure About Social Media's Charity Benefits, Survey Finds

2009-10-29T15:16:00.000-07:00

From the Chronicle of Philanthropy
by Nicole Wallace

Americans seem to be conflicted about the role of social networks as a way to support the causes they care about.

According to a new survey, while nearly eight in 10 people who use new media think the technology can help companies and nonprofit organizations to raise money and awareness for causes, fewer than one in five has made a donation using the tools.

In September Cone, a Boston marketing firm, asked 587 people who use new media a series of questions about how they use the technology to interact with companies and nonprofit organizations.

For the study, the company defined new media as “dialogue among individuals or groups” on social networks, blogs, Twitter, online games, mobile devices, message boards, and sites that allow people to share photos, audio, and video. In some cases, the company also included e-mail and Web sites.

Nearly three quarters of respondents agreed with the statement that new media raise their awareness about causes but do not motivate them to do any more to help, and 39 percent said they didn’t trust that their efforts would actually help the cause.

Among the other reasons participants sited for the lack of engagement:

I’d rather spend my time and/or money supporting causes offline. (31 percent)
I didn’t see any existing results or impacts. (27 percent)
I felt overwhelmed by the number of causes on new media. (22 percent)
My favorite issue, cause, or organization doesn’t use new media. (19 percent)
I didn’t understand the tool/application. (17 percent)

“Americans are actively engaged with causes on new media, but they’re lacking a degree of trust that takes them to the next level of engagement,” Alison DaSilva, Cone’s executive vice president of cause branding, said in a written statement. “Organizations can overcome this barrier by showing tangible and compelling results, offering multiple consumer touch points, and making the bridge to offline activities wherever possible.”

Big nonprofits predict 9% drop in donations

2009-10-29T10:02:00.000-07:00

The nation’s largest nonprofits, including prominent universities, hospitals, and foundations, are expecting a 9 percent decrease in donations in 2009, according to a survey by the Chronicle of Philanthropy.

It’s the steepest drop the publication has reported in the 17 years it has surveyed the 400 largest charities in the country.

While many of these groups, from the United Way and the Salvation Army to Harvard University, saw fund-raising increases in 2008, their donors had not yet felt the full force of the economic downturn and the stock market’s dive, according to the survey. Many are expecting far leaner times through 2010.

Click here to read the entire article from the Boston Globe.

But some organizations are still finding ways to advance their mission, even amidst the challenges. What about you? Will you sit tight and wait until the economic clouds pass by? Or will you engage, passionately and strategically, in your monster mission?

You probably know where we stand. :)

Accelerate Out of the Turn

2009-10-21T15:54:00.000-07:00

Race car drivers accelerate coming out of a turn instead of waiting for the straightaway. The concept of “accelerating out of the turn” captures some important ideas for leaders at this time. Here are a few ways that you might be able to put the idea to work in your organization:

Reclaim your big picture, purpose and vision. Months of cutting, pacing, and wondering have left the heads of many nonprofit executives and pastoral leaders spinning. Cut through the haze – remind yourself what your care about, and what you’re really doing this for.
Start staffing (or reassigning existing staff) strategically. Envision what your organization needs to be like to meet the challenges and opportunities ahead. Get people in place and ready.
Thoroughly evaluate your fundraising and revenue streams. What areas of the economy are going to be slow to recover or may never recover? How will this affect your funders? What things are you willing to stand by, even if it takes longer to get back to their former strength? What things were you counting on that are either picking up strength or have been shut off by a changing economy?
Re-think and reinvigorate your brand, your marketing, and your donor network. People are ready for an optimistically “new and improved” version of your organization. This is a great time to update a tired brand, bring your marketing message and tools up to date, and start talking with your network donors, volunteers, and other supporters.

It's time get your foot off the brake and start preparing now for the next season of mission-driven work!

Great ROI-Driven Message!

2009-10-21T09:38:00.000-07:00

Central Dallas Ministries just came out with a new this new video for their "Community Hunger Day" drive. What a compelling display of ROI (return-on-investment) thinking. Check it out.

Baby Boomers Are Redefining Charitable Giving

2009-10-20T23:34:00.000-07:00

You've probably heard the news: in the next 30 years, we will see the largest transfer of wealth in history. This wealth has profound effects and possibilities for philanthropy as Baby Boomers begin to retire and consider their estate planning.

Baby Boomers are redefining every industry, from coffee and computers to cars and electronics. Baby Boomers are also redefining charitable giving. Boomers demand three things:

They demand control;
They demand options;
They demand flexibility.

Who gave Baby Boomers what they want? Fidelity. The Fidelity Charitable Gift Fund became the country’s largest grant-making organization in 6 short years, from its beginning in 1992 to 1998. (“The Charitable Gift Fund Phenomenon: Is it a boon for nonprofits or a ploy for investors.” Los Angeles Times. 1999).

The Fidelity story clearly demonstrates the power of focusing on the donor and offering control, options and flexibility. Think about this. What do Baby Boomers need? Three things, really:

Reposition Assets;
Create Lifetime Income;
Leave a Legacy.

What philanthropic tool offers Boomers the ability to do all three? Planned Giving! If you don't have a well-designed planned giving plan in place -now is the time. (Call us if we can help.)

Taxes for Tax-Exempt Organizations?

2009-10-13T14:27:00.000-07:00

The issue of "property taxes" has been a hot topic in nonprofit circles for the last two years. Recent developments in Massachusets and other local cities could start an interesting trend, one churches and nonprofit organizations should keep their eyes on:

Following the lead of other Boston-area towns, cash-strapped Belmont, Mass., is asking its resident tax-exempt institutions for voluntary payments to cover the cost of city services, reports The Boston Globe.

The payment-in-lieu-of-taxes, or PILOT, program drafted by Belmont’s Board of Assessors seeks four cents per square foot of property owned by 37 local nonprofit organizations, about one-fifth of what a private owner would pay in property taxes.

Tools for Your Next Auction

2009-10-07T12:00:00.000-07:00

Guidestar just published a great article, "Anatomy of a Charity Auction," with excerpts from the book Everything You Need to Know to Raise Money (and Have Fun) with a Charity Auction. With the fundraising and event season in full-swing, this is valuable information for auction-newcomers and seasoned veterans alike.

Check it out: http://www2.guidestar.org/rxa/news/articles/2009/anatomy-of-a-charity-auction.aspx?source=oct09nwsltr

Irresistible Email

2009-10-07T06:59:00.000-07:00

Here's an excerpt from Nonprofit Email Marketing Guide: 7 Steps to Better Email Fundraising & Communications

How many times have you decided to read an e-mail (or not) based on the subject line alone?The subject line is your first chance to make an impression. Pack your subject lines with details about what's inside, emphasizing why the reader should take a few extra seconds to see what's in the body of the message.

Change it every time. Your subject line should change with every edition. Don't waste space with dates, edition numbers, sender information, etc.
Lean toward personal value. For example, "Where Your Best Friends Will Be Dancing All Night Long" will work better than "Register for Our All-Night Dance-a-thon Fundraiser."
Describe the candy, not the wrapper. Tell us what goodies are inside the e-mail, not about the packaging. Forgo wrappers like "Parenting Workshops" when your readers are craving candy like "Dinnertime and Bedtime Routines That Preserve Your Sanity."
Keep it short. Somewhere around 35 characters seems to be the ideal now. You can play with subject line length and see what works for you, but do try to keep it between 20 and 60 characters tops.

Before an e-mail can be read, it has to be opened. Make your subject line so irresistible, your supporters won't be able to help themselves.

Monopolize Search Engine Results with a Blog and Social Media

2009-10-06T14:42:00.000-07:00

Here's an interesting FastCompany article on using blogs, social media, and other online tools to enhance your organization's visibility. http://www.fastcompany.com/blog/rich-brooks/social-media-strategies-small-business/monopolize-search-engine-results-blog-and-so?partner=leadership_newsletter

But before you launch into editing your next YouTube video hit, you want to develop a good strategy. We help organizations develop communication and social media strategies that deepen connections with donors, congregants, and other members of the community, and also help introduce new people to the organization's mission and work. Go to http://www.theedgegroup.org/services/funding.php or contact us for details.

New News on "Religious Hiring"

2009-10-05T13:51:00.000-07:00

The Institutional Religious Freedom Alliance recently provided some perspective on rumors regarding the attack on RFRA protections for religious hiring. This is important information for faith-based organizations that provide services to the community - especially if there is federal money involved.

Some sixty religious, civil rights, gay rights, feminist, and secularist organizations yesterday demanded that Attorney General Eric Holder review and then reject a 2009 legal memorandum from the Department of Justice's Office of LegalCounsel concerning religious hiring by faith-based federal grantees. The memo and the demand do not involve the religious hiring freedom in general or most faith-based organizations that receive federal funds to provide services.

The OLC memo concerns the application of the Religious Freedom Restoration Act, which was adopted by Congress and signed into law by President Bill Clinton in 1993 to restore a high level of protection, after a US Supreme Court decision had undermined religious freedom protections. According to RFRA, a faith-based organization can be excused from complying with a generally applicable law if obeying the law would impose a substantial burden on its religious exercise.

The OLC memo holds that RFRA applies to religious staffing in the limited number of federal social service programs that ban job discrimination on religious and other grounds by grantees. The memo says that if the faith-based organization can make a case that having to abandon its religious staffing practice in order to take part in the federal program would constitute a substantial burden on its religious exercise, then it can receive the federal funds without having to abandon religious hiring.

The letter of complaint implies that the OLC memo opened the floodgates for discrimination by federally funded faith-based organizations. In fact, the 1964 Civil Rights Act does not regard it as discrimination when a religious organizations selects staff on a religious basis, although these organizations, along with all others, cannot discriminate in employment on the bases of race, color, national origin, or sex. This Title VII exemption enables faith-based organizations to ensure that their employees are compatible with their religious identity (just as environmental groups screen out people who don't care for the creation).

Many federal programs respect this Title VII exemption, imposing no restriction on religious hiring when a faith-based organization receives federal funds to provide services to the poor and needy. That's not an unconstitutional freedom, according to the courts, although opponents would like to think it is. The faith-based group hires on a religious basis; the federal program doesn't restrict that practice; there is no barrier to the group taking part in the program. The controversy about the OLC memo does not affect this broad federal religious hiring freedom.

The OLC memo only applies to that subset of federal programs that includes employment rules (e.g, the Head Start program, services funded under the Workforce Investment Act, many Department of Justice service programs). In these programs, there is a specific provision banning employment decisions based on religion, race, etc. Usually, faith-based organizations that care about religious staffing would not even apply for funding from such programs.

Far from legitimating a "blanket override" of the job rules in these federal programs, the OLC memo states that the government must be unable to come up with a "compelling interest" to deny the RFRA exemption to the faith-based applicant and the applicant must be able to demonstrate that religious staffing is vital to it so that having to give up the practice would indeed impose a "substantial burden" on its religious exercise.

For the legal and policy aspects of religious hiring, consult Carl Esbeck, Stanley Carlson-Thies, and Ron Sider, The Freedom of Faith-Based Organizations to Staff on a Religious Basis (Center for Public Justice, 2004). A pdf version of the book is available.

The Impact of Health Care Reform

2009-10-04T13:46:00.000-07:00

The ECFA recently reported some of the possible impacts of healthcare reform on churches and other nonprofit organizations and their employees.

Some of the impacts include the following:

Health care insurance premiums might no longer be tax-free
Organizations that self-insure might be hit with a 35% excise tax
Individuals might be required to pay a tax if they don’t have basic coverage by 2013
Employers might have to pay a fee if they don’t insure their own workers
The pay in to flexible spending accounts (FSAs) might be limited
The payouts for nonprescription drugs might be eliminated.
Form W-2 reporting might be required to include the value of health care benefits, so workers would know the value of their coverage
A tax credit might be awarded to small businesses that provide their employees with health insurance but churches and nonprofits would not receive the same benefit since they do not pay income taxes.

To read the entire article, go to http://www.ecfa.org/Content/NewsImpact_HealthcareReform.aspx

Should We Allow Churches to Close?

2009-10-01T11:27:00.000-07:00

Thoughts on church closings from The American Church in Crisis by Dave Olson (Zondervan, 2008).

The two case studies also highlight the second counterintuitive fact about closures. There is an inverse relationship between the closure rate and the growth of a denomination. The lower the closure rate, the more likely the denomination is declining. The higher the closure rate, the more likely the denomination is growing.
The denominations with high closure rates are growing rapidly and those with low closure rates are declining. The mainline instinct never to let a church die actually discourages energy from being directed toward the development of new churches. Growing denominations create an atmosphere that encourages and provides for health and growth in all their churches while allowing unhealthy or marginal churches to die with dignity. Growing denominations also reinvest the assets of closed churches into new church-planting projects, usually producing multiple new churches to replace each closed church.

These are hard questions - and even harder answers/actions. But in the end, decisions regarding church closure must come down to: "How can we accomplish the most impact and missional advancement?"

Is your church in crisis? We've helped a number of churches face their crisis and move forward. Please call if we can be of service.

Avoiding One-Way Conversations

2009-09-30T22:59:00.000-07:00

When talking to your donors, make sure you’re not having a one-way conversation. For example, I wouldn't come up to you at a Starbucks, hand you my life story and say, “Hi, I'm Shannon. I was born in 1971. I care about good causes and work for The EDGE Group. I'm a really good person; therefore, you should be my friend. Won't you be my friend right now?” You would think I was nuts.

But how many times do we do this in our materials? We cite the year we were founded, our mission statement and then ask for money. That’s a monologue, not a true conversation – and we need to be having conversations with our donors.

There are 119 new nonprofits being formed every day. All of them need money. All of them are good causes. All of them have mission statements. It's just not enough to assume need alone will get someone to give.

What Motivates Religious Giving?

2009-09-30T22:46:00.000-07:00

Here is some excellent material on religious giving from John R. Frank (www.johnrfrank.com):

What motivates giving, and giving to religion? The results of numerous research studies have proposed a variety of ideas. Consider this:

Christians gave one to three percent of their annual income. Twenty percent of Christians gave nothing to religious institutions or charities. (Passing the Plate: Why Americans Don’t Give Away More Money)
Gifts of over $1 million continued despite the economic downturn. (Guidestar)
The John Templeton Foundation funded $70 million in grants for theology, philosophy and science. The Templeton Foundation is one of a handful of major foundations that fund religion.
Factors associated with higher giving include: living in a community 10 years or more, a higher level of trust in others and great interaction with others through social networks and civic involvement. (Social Capital Benchmark Survey)
A higher level of religious giving is associated with a higher level of personal happiness. Or, happier people may give more to religion.
In 2007, 67.7 percent of high-net-worth individuals (income of more than $200,000 or a net-worth of over $1 million) gave an average of $17,044. (2008 Bank of America Study of High Net-Worth Philanthropy)
Religious organizations provide 25 percent of the private development aid to developing countries. The average gift from congregations to an aid agency was $34,000. (Hudson Institute’s Center for Global Prosperity and University of Notre Dame’s Center for the Study of Religion and Society)

Churches with a high level of market-oriented features such as customer service and a “market mentality” were able to increase giving, volunteer involvement, and showed stronger growth in attendance at Sunday services, Sunday school and Wednesday night services. However, membership growth rates were not significant from low and medium market-oriented churches. (Darin White and Clovis Smith, McAfee School of Business Administration, Union University)

Of importance to religious organizations is the growing number of unaffiliated individuals, especially adults under age 30, the low percentage of tithing by congregants, and increased competition with secular alternatives as blue laws are repealed.

New Nonprofit Compensation Report

2009-09-25T08:15:00.000-07:00

The ninth annual edition of the GuideStar Nonprofit Compensation Report was released September 24, 2009. Derived from information on 157,406 individual positions at 99,827 tax-exempt organizations for fiscal year 2007, it remains the most comprehensive nonprofit compensation analysis available and the only one based entirely on IRS data.

Females held 56 percent of CEO positions at organizations with expenses of $1 million or less but only 36 percent at organizations with expenses of greater than $1 million. These numbers were comparable to 2006. Overall, women held 47 percent of the positions reported upon (an increase of 1 percentage point over 2006) but received only 35 percent of the total compensation.
Median compensation of females lagged behind that of males when considering comparable positions at similar organizations.
A trend of the last few years toward larger median compensation increases for incumbent female CEO continued to hold for 2007. At the very largest organizations, however, those with budgets of greater than $50 million, men had a median increase more than 1 percent higher than women.
The larger the organization, the larger the increases in compensation. For example, CEOs at organizations with budgets between $500 thousand and $1 million saw a median increase of 3.6 percent from 2006 to 2007, whereas those at organizations with budgets of greater than $50 million had a median increase of 6.3 percent. Increases at all sizes of organizations were generally lower in 2007 than they were in 2006.
Not surprisingly, health and science organizations had the highest overall median salaries. Food, religion, and housing organizations brought up the rear.
For the fourth straight year, Washington, D.C., had the highest overall median salaries of the 20 largest metropolitan statistical areas, and Riverside-San Bernardino, California, had the lowest. Adjusted for cost of living, San Francisco nonprofit executives again had the lowest median buying power, while those in Houston again had the highest.

White House Issues New Federal Grant Guidelines

2009-09-23T14:17:00.000-07:00

The White House has issued new guidelines to federal agencies emphasizing the need to keep politics — or even the appearance of politics — out of grant decisions, says The New York Times.
The move followed reports that an official at the National Endowment for the Arts asked artists to get involved in helping to promote Mr. Obama’s health-care, education, and environmental proposals.

Stay Out of the Center of the Frame

2009-09-22T14:34:00.000-07:00

Here's a great post by Ruth McCambridge, editor-in-chief of the Nonprofit Quarterly:

A few weeks ago I got to work in my usual disheveled state and remembered that I had a meeting with people who don't know me well enough to not think about my 40-year-old tie-dye tee shirt during what was supposed to be a serious conversation. So I went out and bought a blouse.

Long story short, I went to the meeting trying not to think too much about what I looked like. When I got there I was ushered into a conference room where we met not only the local group but, also people at two other locations -- their voices emanated through a speaker and there was a screen set up at one end of the room. As the distant folk began to introduce themselves I turned toward the screen and found that what it showed was the group in the room I was in and I was front and center in this weird blouse.

Two things came to mind. First, "Omigod, I look horrible!" And second, what kind of weird setup is this where you are talking to others but gazing at yourself?

Right.

So I turned my back to the screen and the meeting went well. But it made me think about the line that we all approach once in a while, where on the surface we are negotiating for the best interests of the people our organizations are meant to benefit, but looking more directly at ourselves as institutions and players in those institutions.

It is an ethical concern.

In times of scarce resources (and anytime) these are the kinds of mixes that require us to step back a bit and think about the work and the best interests of those we are meant to benefit without ourselves (or our institutions) in the center of the frame. Our institutions are merely vehicles, albeit often ones full of spirit and soul.

What a great reminder of our monster mission - an approach to our purpose that keeps purpose first and our organizational and personal interests a very distant second. (Remember, we exist for our impact, not for the opportunity to be the biggest and best nonprofit organization the world has ever seen.) The challenge of aligning your charity, church or school with that mission-driven mentality will take radical leadership...go for it!

We Have A Winner

2009-09-15T14:20:00.000-07:00

The EDGE Visible Challenge Winner!
Joy Junction (Albuquerque, NM)

In August, we announced our 2009 Visible Challenge. Organizations from all over the country, representing a wide array of mission-driven work, applied. (It was thrilling for us to read about all the amazing work going on in our communities!) From all of those submissions, we had the task of selecting just one winner – an organization that represented itself with clear, detailed, inspiring and ROI-driven language.

We are pleased to announce Joy Junction (Albuquerque, NM) as the winner of our 2009 Visible Challenge and the recipient of a $1,000 gift from The EDGE Group. Several other organizations received honorable mention. Go to www.edgeresources.org/challenge.htm for the complete write-up and all the winner’s organizational descriptions.

If you missed this challenge, don’t worry. The next EDGE Challenge will be announced October 15, 2009. Stay tuned for details. :)

Congratulations to all our winners!

The Visible Challenge

2009-08-13T16:39:00.000-07:00

We’re giving away $1,000 to the most “visible” nonprofit!

We are celebrating our 5-year anniversary by giving away $1,000 to the most “visible” charity, church, or school in the USA.

"Visibility" is at the heart of EDGE's Fundraising Mastery, a model that has helped more than 75 small and mid-sized nonprofits create a compelling message and raise over $150 million for their mission-driven work.

So tell us your organization's story by completing the brief online application at www.theedgegroup.org/challenge.htm. Any tax-exempt, nonprofit organization in the United States may apply, but there is a limit of one application per organization and applications must be received by August 31, 2009.

The responses have already started pouring in. Don’t delay!

What Do You Have to Say About That?

2009-07-03T13:08:00.000-07:00

How Nonprofits Can Benefit From and Promote Stakeholder Reviews

A recent post by GuideStar.org gave tips on generating and using stakeholder reviews to bolster your online presence and donor/community confidence.

What are stakeholder reviews? They are "user-generated" reviews written by people who have had an experience with a nonprofit. The writers are your nonprofit's volunteers, clients served, board members, donors, interns, and other non-paid stakeholders.

Why reviews? How many of you have used Yelp, Tripadvisor, or Amazon Book Reviews in the past month before making a buying decision? If you have, you are like the majority of consumers on-line, who read user-generated reviews of products and services before making buying decisions.

Reviews make it easier for your stakeholders to share their experiences with you so that other people can discover you. Reviews provide a vivid, emotionally engaging, and authentic perspective on a nonprofit. The impact of your nonprofit is visible on a human scale and through the voices of people who have witnessed your work.

All nonprofits have stories to tell—stories about the clients you've served, policies that you've influenced, and communities you've made a difference in. This is an easy, fast, and free way to collect those stories for all to see.

Plus, you're getting instantaneous feedback about your programs and services—what your nonprofit is good at and what areas it can improve on. None of us are perfect, but as a sector, we all aim for continuous improvement and transparency.

No reviews about your nonprofit yet? You can encourage non-paid stakeholders—your volunteers, clients served, board members, donors, interns, and others—to write reviews.

E-mails to your board members, donors, volunteers, and current/former clients.
E-newsletters to your volunteers and community.
Your staff's e-mail signatures at the bottom of their e-mails.
The home page of your Web site—it shows commitment to transparency and excellence.
Materials you hand out to clients.
Signs in your office.
Mentioning the opportunity to volunteers while they are at your office.
Your thank you letters to donors—they will appreciate the opportunity to express themselves!

Developing a fearless approach to stakeholder reviews will help more deeply engage people with your organization, and give you the support and ideas you need to lead your mission-driven charity, church, or school more effectively. SDB

New Surveys Confirm Perceptions: Recession's Impact Runs Deep

2009-06-30T23:00:00.000-07:00

Two studies released this week offer fresh evidence that the recession has created havoc for nonprofit groups. Ninety-two percent of the nearly 100 respondents in a survey conducted in May by the Bridgespan Group said they were feeling the effects of the downturn.

Eighty percent of charity officials reported that their organizations were experiencing financial stress, in another study conducted in April by the Johns Hopkins University’s Listening Post Project. Nearly 40 percent of the 363 respondents described the stress as “severe.”

Small organizations have been hit the hardest, according to the May study.
Seventy percent of organizations with revenue of less than $1-million reported that their financial picture had worsened in the past six months, compared with fewer than half of larger organizations.
The study found that an increasing percentage of charity leaders were tapping reserve funds and creating contingency plans.
Nearly half (48 percent) of the nonprofit organizations said they had renegotiated terms with donors to focus on their main programs, up from 34 percent in November. More than 60 percent realigned staff members to support such programs, slightly more than in November.

Staying Positive

Despite the deepening unemployment rate and stagnant stock market, the study found that charity leaders were optimistic about their organizations’ financial picture.

Forty-five percent said they expected their groups’ financial outlook to be better in a year. Just 22 percent thought their outlook would be worse.
Nearly 70 percent of respondents rated their groups’ financial performance as successful, despite the pressures they were facing. Just 27 percent said they had been forced to reduce their services.
Groups that serve people who face big challenges fending for themselves, such as elderly individuals and those with disabilities, were even more likely to maintain or increase their assistance.

Bent, Not Broken

Few charity officials in the survey were worried that their breaking point was near.

Only 13 percent of the respondents said they were concerned about their nonprofit organization’s survival. But those numbers rose significantly among people at theaters and orchestras, which were the hardest hit of all charities in the study.
Twenty-four percent of orchestra leaders and 33 percent of theater officials reported concern about their groups’ fate.
Midsize groups, with revenue of $500,000 to $3-million, said they felt the effects of the downturn more severely than their larger and smaller peers, according to the Listening Post Project study.

The study found that nonprofit groups were developing many ways to cope with the recession, including working more with other charities (47 percent) and expanding efforts to promote themselves (48 percent).

Innovate Your Way Out

2009-06-19T10:15:00.000-07:00

More Feedback and Fallout from the Giving USA Report

According to the recent Giving USA Foundation report, individual giving (which accounts for a huge 75% of total giving) decreased by 6.3%, again bucking the general recessionary trend. U.S. household net worth decreased nearly 18% in 2008. (See http://online.wsj.com/article/SB123687371369308675.html and our previous postings on this report.)

As we posted, the human services sector was the biggest loser in this downturn. This reversed the historical trend toward greater giving in this area during times of distress. We are accustomed to seeing giving to human services go up substantially when there is a natural disaster or an unnatural disaster, such as after 9/11. No one seems to know why human services giving suffered so during this downturn, but some clues might lie in these trends:

direct mail results declined.
events fundraising declined.
the recent rapid growth in the formation of nonprofit organizations resulted in many small nonprofits that were financially vulnerable.

So now what? We must innovate.

Take an example from another hard hit sector. I recently heard a presentation by the vice president of a large regional newspaper. As he walked to the front, I think we all assumed we were in for a eulogy - a report of impending doom from this "troubled industry." Instead, we heard a report about a company that was changing its ways, completely re-writing its business model, and redefining its profit centers. They were moving vigorously to the web and taking on Google in their market for ad share, purchasing local "weeklies" that still had solid readership and ad buys, and streamlining and focusing their staff to meet production needs without breaking the bank.

If newspapers can do it, then organizations that serve the physical, mental, and spiritual needs of our communities MUST TOO! We cannot use these stats to explain what we are experiencing - we must use them to demand (if we haven't already) a new approach to what we are doing.

Let's help each other get there. Have an idea, or an innovation that's working for you? Write a comment and share it with us! Need help with your organization's "next steps"? Contact us, info@theedgegroup.org. SDB

Those Most In Need Are Taking the Hardest Hit

2009-06-16T08:09:00.000-07:00

Human Services Getting the Worst of the Downturn

Although the overall news about 2008 giving is good (at least considering the options), one startling fact emerged - human services had the largest drop in revenue, during a time when their needs were increasing.

Contrary to giving trends during past recessions, giving to the human services subsector was down sharply in 2008, by about 12.7 percent in current dollars and 15.9 percent in inflation-adjusted dollars. Last October, the Giving Institute and the Giving USA Foundation published a Spotlight bulletin, "Giving in Recessions", reporting that annual giving had trended upward overall during the 11 recessions prior to 2008. Last year, then, was an exception - and one of particular note to nonprofit leaders in the human services sector and institutional funding community.

The impact to human services becomes more critical when comparing the subsector's 2007 and 2008 giving. In 2007, giving to human services, in current dollars, was up 8.4 percent over the previous year, but declined by an estimated 12.7 percent in 2008: a big swing in funding that the sector had to absorb just as demand for services simultaneously grew. SDB

[Let's find a way to do more good, even amidst the challenges. Contact us, info@theedgegroup.org.]

Giving Down Only Slightly In Worst Economy Since Depression

2009-06-16T07:57:00.000-07:00

Giving USA 2009: Giving Tops $300 Billion in 2008
Giving Down Only Slightly In Worst Economy Since Depression

U.S. charitable giving in 2008 exceeded $300 billion for the second year in a row, according to Giving USA 2009. Donations to charitable causes in the United States reached an estimated $307.65 billion in 2008, a 2 percent drop, in current dollars, from 2007's record-setting $314.07 billion. (The total for 2007 has been revised upward since initial reports put it at $307 billion.)

The 2008 results show the first decline in giving, in current dollars, since 1987; this is only the second time Giving USA has reported a decline since it began publishing annual reports in 1956 (www.givingusa.org). The report, now in it's 54th year, is a publication of Giving USA FoundationTM, researched and written by the Center on Philanthropy at Indiana University.

Given a 40 percent decline in the market in 2008, what turned out to be a full year's worth of recessionary economic indicators, and sharp drops in the housing and job markets, the fact that giving only declined by about 2 percent in '08 is pretty phenomenal.

We need to stop allowing "the economy" to be our excuse, and do all we can to passionately and innovatively find ways to take our clear mission-driven message to donors who, while struggling personally, are still giving generously. Let's do it today! SDB

[Our advisors can help refocus or completely rebuild your development efforts. Contact us for more information, info@theedgegroup.org]

Persistence

2009-06-12T15:25:00.000-07:00

Just discovered a great quote on persistence from Calvin Coolidge:

Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination or omnipotent. The slogan "press on" has solved and always will solve the problems of the human race.

Press on! SDB

More Thoughts on Crisis Leadership

2009-06-04T16:27:00.000-07:00

Three Vital Characteristics of Leadership Under Pressure

I continue to hear from nonprofit leaders who are near the end of their rope -- experiencing pressures from their boards, their senior donors, their stakeholders, and their communities to find solutions for the economic and other systemic challenges they are facing.

For those of you leading under pressure, here are three crucial things to remember when the going gets tough.

1. Establish Trust
John Maxwell writes, "People don't buy into a vision; they buy into a leader -- then they buy into the vision." If you haven't built trust throughout your organization, then people are not going to buy into your leadership, no matter what you stand up and tell them. They've got to buy into you first.

2. Be Courageous
You have undoubtedly heard the proverbial statement: "Courage is not the absence of fear. Courage is, in the face of fears, have the strength to confront it." In a crisis, there are plenty of reasons to feel stress and fear. Leadership requires that we acknowledge and confront those fears. Without knowing the conclusion, we need to act.

President Theodore Roosevelt said it this way:

"It is not the critic who counts, nor the man who points out how the strong man stumbled, or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes short again and again, who knows the great enthusiasms, the great devotions, and spends himself in a worthy cause, who at best knows achievement and who at the worst if he fails at least fails while daring greatly so that his place shall never be with those cold and timid souls who know neither victory nor defeat."

3. Make Decisions
Michael Bloomberg was elected mayor of New York just two months after the 9/11 attacks. Although the crisis had passed, Mayor Bloomberg was immediately faced with an onslaught of agonizing and emotionally-charged decisions as the city tried to recover. Bloomberg and his team worked nonstop, doing what had to be done to get New York back on its feet.

A few years later, while touring the devastation following Hurricane Katrina, he commented, "I'm not here to brag about New York, but our recovery didn't happen by accident. It happened because we did what we were hired to do; to lead and to manage for results."

Needlessly delaying or avoiding decisions is not leadership. Crisis leadership demands that we "lead and manage for results."

Oh, I forgot number 4...pray, a lot. Seriously.

Call us if we can help. SDB

What’s a Leader to Do?

2009-05-29T14:34:00.000-07:00

Drucker’s Priorities for Crisis Leadership

No news to you – things are tough. Reports from almost every sector indicate decline and a record low confidence in the future. Some estimate as many as 200,000 nonprofit organizations will close in the next 24 months, and that as many as 20,000 churches may close in 2009! Those are some really tough and tragic statistics.

Peter Drucker said, “The one predictable thing in any organization is the crisis,” and that the job of the leader is to develop an organization that is “battle-ready, that has high morale, that knows how to behave, that trusts itself, and where people trust one another.” In this difficult environment, your organization is counting on you to help them navigate the challenges. Here are some steps to take:

> Honestly assess your situation: Gather wise counselors and look honestly (not pessimistically) at your organization’s situation.

> Make plans, and take action where necessary: Based on your evaluation and assessment (see our article on page 2), make plans and take action. “Wait and see” attitudes clobber morale and the ability of your organization to move forward. If surgery is needed, do it; if you need a health club, enroll today!

> Focus your organization on solutions to your common challenge: Your people are concerned about their jobs, concerned for one another, and are surrounded and distracted by all sorts of internal and external “challenges.” Focus them on co-creating solutions, on new goals, and on moving forward.

> Communicate openly and continually: Your stakeholders, staff, and board need to know what’s happening, what to expect from the future, what leadership is working on, and how they can be involved. The truth stated simply goes a long way.

You can do it! We’re here to help. -SDB

Organizing and Preparing Your Team

2009-05-20T14:28:00.000-07:00

The EDGE Development Process - Part 2

In part one, we discussed the first component of the EDGE development process – the importance of completing an organizational assessment. This month, let’s look at organizing and preparing your team for growth.

Within your organization you have a wide variety of working teams including your board members, executives, managers, departments, and various working groups. It’s important you identify and inventory all the teams within your organization and clearly define their strategic roles and responsibilities. Problems occur when working groups operate outside of their roles and responsibilities, so as their leader you must constantly remind team leaders to stay on task.

Once you’ve identified your teams, it’s important for these teams to understand what they are trying to accomplish or build. If you expect your teams to give their best then you must clearly establish your organizations mission and vision. Your mission answers the question “why does your organization exist?” You can develop your mission by identifying who will you serve and what will you do for them. Your vision answers the question “what are you building?” Develop your vision by identifying who you will serve, how many you will serve, where will you serve, what will you provide, and how much it will cost.

Your organization will be prepared for growth when all key stakeholders understand your mission and vision and your teams understand their specific roles and responsibilities.

Look for part 3 of our development process – strategic implementation. -JS

The Value of a Well-Executed Assessment

2009-05-12T14:23:00.000-07:00

The EDGE Development Process - Part 1

Our primary aim is to help nonprofit leaders like you, “find a better way to do more good.” To accomplish this, we implement a three-step process: (1) assessing an organization’s past and present condition, (2) organizing and preparing teams around newly developed growth strategies and then most importantly, (3) walking alongside our partner clients through the process of strategic and tactical implementation.

Why do we begin with assessment? Well, if your organization is looking to raise more money, improve its leadership structure, align more people with your mission, or launch a major capital project –accessing your past is crucial to creating a path for future success.

Assessment can take a variety of forms. Self-assessments require an organization to have the internal human resources and expertise to know how and what organizational data to analyze. Although these assessments cost very little, they carry the risk of producing a biased view of your organization. On the other hand, professional assessments require you to find an expert who has experience assessing organizations like yours. And of course, professional assessments require a financial investment. But, the value of these assessments is that you receive a complete and unbiased review of your organization.

Whichever you choose, there are important things to include in the process: (1) financial data analysis, (2) a marketing audit, (3) a review of human resources, and (4) feedback from key stakeholders. The end result will be a clear understanding of past and present successes and failures along with an understanding of potential future roadblocks, obstacles, and opportunities.

Make sure to check out part 2, "Organizing a Preparing Your Team" discussing the ins and outs organizing and preparing your teams for future growth. -JS

[Let The EDGE Group help you professionally assess your organization and help create a roadmap for future success. For information, contact us at 888.650.3343 or info@theedgegroup.org.]

Treating What Ails You

2009-05-07T15:23:00.000-07:00

In 2008, it seemed the career Shaquille O’Neal was on the skids. Although Shaq has averaged 25.6 points and 11.5 rebounds in his 16 NBA seasons, he had missed much of the 2006-07 season with injuries, finishing with career lows in games (40), scoring (17.3 points), rebounds (7.4), minutes (28.4) and free-throw percentage (.422).

Fed up, the Miami Heat traded O’Neal to the Phoenix Suns in February 2008. Suns coach Mike D'Antoni said he was wholly in favor of the trade because of the quality of O'Neal as a player. But the coach was well aware of widespread criticism and the prevailing belief that Shaq was no longer a formidable player.

While in Miami, Shaq was diagnosed with a joint problem in his hip. Team doctors prescribed regular cortisone shots, but the treatment did not produce substantial relief or recovery.

As it turned out, the problem was not in his hip...

Once in Phoenix, athletic trainers found that Shaq's posterior muscle was not “firing” properly. Quickly, the new treatments produced results. “I thought I was done (in Miami) because those doctors didn’t know what was going on,” O’Neal said. “These guys, trainers Aaron Nelson and Mike Clark, they saved me.”

Shaq had had one of the worst seasons of his career, and was ultimately traded, due largely to a faulty diagnosis of the problem.

And what does this have to do with running your organization? A poor diagnosis of organizational problems can easily lead you to invest time, resources, and endless hours of frustration in the wrong direction. Whether you are looking for solutions to difficult board dynamics, trying to solve a fundraising crisis, or simply wondering why the organization is just not as effective as it once was, a proper assessment is essential for meaningful "treatment."

Before you downgrade your potential or embark on a hastily-conceived plan, take time to properly assess your organization and get the information you really need. Read Jim's great post "The Value of A Well Executed Assessment"

Oh, and by the way, this past season Shaq (the fifth-oldest player in the NBA) did 200 sit-ups and 200 push-ups - before the game! -SDB

[For information on our Organizational, Fundraising Readiness, Campaign Readiness, and Board Governance Improvement assessments, go to www.theedgegroup.org/assessment.htm.]

Sixty-Two Percent of Foundations Plan to Decrease Giving

2009-05-06T12:35:00.000-07:00

Most foundations plan to decrease their giving in 2009.

The Council on Foundations surveyed 430 foundations in March and found that 62 percent expect to reduce their grant making this year. Almost half said they will be decreasing their giving by more than 10 percent, and most foundations — 92 percent — said they are focusing on assisting low-income people, the unemployed, and others in response to the economic downturn.

What's more, as the number and size of foundation grants decreases, grants for upstart or yet-unproven organizations will be even harder to come by.

You can view the full report at the council’s website.

Organizations whose fundraising is grant-centric could experience significant reductions in grant-donations and increased fiscal challenges in the years head. Nonprofit organizations, for the first extended time in the last 25 years, will be competing for significantly fewer resources - a reality that most economists expect to last for quite some time. (As one article I read recently put it, the coming economic expansion will still feel like recession.) If you haven't done so already, it's time to reassess how you fund your mission and to develop strategies for pursing diverse sources of future revenue. -SDB

[Our Fundraising Mastery training will help you increase your organization's visibility and value with donors. Contact us for details - info@theedgegroup.org.]

Influence - Connecting with People

2009-05-03T14:47:00.000-07:00

I just read a great leadership-short by John Maxwell. Take a look:

Influence: Connecting with People
John C. Maxwell

As a train's source of energy and direction, the locomotive plays a vital role. However, unless a locomotive connects to other cars on the track, it is relatively useless. A train's value comes from its ability to transport massive amounts of cargo, and doing so requires the locomotive to link up with dozens of freight cars. Traveling by itself, a locomotive would arrive at its destination empty-handed. In that case, its journey would be nothing more than a waste of fuel.

Leaders are like locomotives in that they're blessed with drive, energy, and vision. However, until leaders learn the art of connection, their influence remains minimal. In isolation, their talents accomplish little, and their efforts are squandered.

To read "8 Steps for Connecting with People - Practical Ways Whereby Leaders Can Make Meaningful Connections with Others," click here. -SDB

Fundraising Lessons from Drive-Time Radio

2009-05-01T00:52:00.000-07:00

I'm a public radio fan. I spend a lot of time in the car, and am often kept company by Morning Edition, Fresh Air, Speaking of Faith, Prarie Home Companion, and others. They're good company.

But recently, my regular NPR programming was interjected with the ongoing pleas of hosts and fundraisers for our station's Spring Donor Drive. Because I'm such a faithful listener, I didn't simply move to another station for two weeks. I was undetered, and listened right through all the reiterations of the phone number and web address, all the announcements of "this hour's goal" and appeals to join the donor ranks of the stations.

And after two weeks of half-hearted listening, I realized that I had picked up a few valuable lessons worth sharing with all of you as you raise money in these challenging times.

> They listed the benefits of the station: Listeners were constantly reminded of what the station was doing, and what positve effect their actions had on the listeners and community.

> They listed the benefits of giving: Whether it was a "special gift" being offered that hour, support for the local food bank, or just the joy of giving, listeners were contantly reminded that giving was a good thing.

> They presented and achieved small goals: Every hour the station presented a goal of so many new or renewing donors...40, 60, 100...something aggressive but doable. Over the two weeks of the drive, they used this tactic for 11 hours of each day. At the most conservative estimate, that's 440 donors a day -- over 6,000 donors for the drive.

> They encouraged monthly giving, low amounts: They never asked for gifts of $100 or $200. They asked for gifts of $10 or $20 a month. People were encouraged to get involved at a level that felt reasonable - just the cost of a few cups of coffee.

> They constantly encouraged action: There was never time for "thinking about it" -- the campaign positively pushed action all the time.

> They had strategically placed lead and matching gifts: To keep the energy up, the drive used strategically placed leadership and matching gifts..."We have a $25,000 gift on the line if we can add 65 new donors this hour." You get the idea, and it worked.

Now, while you probably aren't using 24-hour radio to make your fundraising appeals, these tactics can work just as well for your next direct mail piece or event. Here's the gist - break down your big goals into portions and foci that people can deal with. Keep the energy up, and make it fun!

[posted by Shannon Barnes. Let us help you develop a "visible" fundraising plan and bring energy to your efforts. Contact us, info@theedgegroup.org.]

Another Pandemic

2009-04-29T11:04:00.000-07:00

Thoughts on Swine Flu and Poverty

I just heard the news - the United States has just reported its first fatal case of the swine flu. A young 23-month old boy, visiting from Mexico, died Monday night in Texas. To date, the outbreak has reportedly been responsible for the deaths of more than 150 people, and hundreds of additional hospitalizations.

I am not indifferent to the loss of life, the possibility of an epidemic or pandemic outbreak, or the fear people are feeling regarding the unknown. But as I have listened to news reports about the drastic civic responses, decade-long "pandemic preparation" programs, the extensive medical testing, and the investment of billions in vaccinations, I have been thinking about another pandemic - one that is raging through the global population currently and killing 1000s - no 1,000,000s - of people. I'm talking about the pandemic of poverty.

The Christians Ending Poverty website (http://www.christiansendingpoverty.org/) has a counter that reads, "3,410,006 poverty related deaths since January 1, 2009," a number which puts us on track for over 10 million poverty related deaths this year. Other sources estimate a much higher total - around 18 million annually - or one-third of all human deaths.

A quote from UNICEF’s 2000 Progress of Nations report is telling: "The continuation of this suffering and loss of life contravenes the natural human instinct to help in times of disaster. Imagine the horror of the world if a major earthquake were to occur and people stood by and watched without assisting the survivors! Yet every day, the equivalent of a major earthquake killing over 30,000 young children occurs to a disturbingly muted response. They die quietly in some of the poorest villages on earth, far removed from the scrutiny and the conscience of the world. Being meek and weak in life makes these dying multitudes even more invisible in death."

I have witnessed desperate poverty in parts of Latin America, Asia, and Africa that I have visited. But I have also seen increased poverty and homelessness in my own neighborhood. Like a virus threatening to spread, poverty is not someone else's problem, in someone else's back yard.

As we work diligently to ward off this new flu stain - washing our hands, changing our travel plans, and staying home when sick - I hope we will not neglect the everyday things we can do to ward off the poverty pandemic too - giving lavishly, caring deeply, and loving our fellow man. That's the true spirit of philanthropy.

[posted by Shannon D. Barnes]

Facing Up to Facebook's Limitations

2009-04-27T07:11:00.000-07:00

Facebook's 'Causes' Has Yet to Provide Big Fund-Raising Gains

A recent article by The Washington Post shows clearly that the popularity of Facebook’s fund-raising application "Causes" has not translated into substantial donations for charities. Here are some highlights from the report:

More than 25 million of Facebook’s 200 million worldwide users have signed on to support a cause since the application’s 2007 debut, but less than 1 percent have used it to give, and average donations are smaller than those garnered from direct mail and other traditional methods. Only a tiny fraction of the 179,000 nonprofit groups using Causes have brought in as much as $1,000 through Facebook.

The data conflict with the lessons many nonprofits took from Obama's presidential campaign: that a well-run organization could raise huge amounts of money online. The problem is, nonprofit fundraising requires considerably more outreach than many political campaigns, which do not require as much relationship-building because they revolve around highly visible candidates.

Data available from the Causes developers on Facebook show the application's meteoric rise since its founding. More than 25 million of Facebook's 200 million worldwide members have signed on as supporters of at least one cause, making it the third-most popular of the more than 52,000 applications on the site.

Just 185,000 members - less than .01 percent - have ever contributed through the site, which sends credit card transactions on Facebook to the Bethesda-based Network for Good to distribute. The majority of Causes' participants have received no donations through the site. The median gift through Causes is $25. The median charitable donation through more traditional means is $50, according to the Center on Philanthropy.

In 2007, Eric Ding, a Harvard postdoctoral researcher, used Facebook's Causes to create the O Campaign for Cancer Prevention, which raises money for cancer research at a Boston area hospital. While the group now has 4.6 million members, it has raised only $85,000 - less than 2 cents per member.

Research shows that the Internet and email are generally considered the least successful nonprofit fundraising techniques, according to a report by the Center on Philanthropy at Indiana University. But even email campaigns are generally more likely to raise significant amounts of money than Causes, according to a comparison of Facebook's data with widely accepted philanthropic benchmarks. Those data show that 1 percent to 3 percent of a nonprofit group's email list would donate money when solicited, at an average of about $80 per person. That would have brought Ding's cancer research group $3.7 million, more than 44 times what he made on Facebook.

Most organizations are continually making decisions about what is best to do with limited funds and personnel time. Before you launch or work to maintain your organization's online presence, make sure you have throughly considered your objectives, your needs, and designed an approach that is able to meet them.

[Posted by Shannon D. Barnes. Let us help you become "Fundraising Masters" and design a custom fundraising approach to meet the needs of your mission. Contact us, info@theedgegroup.org or 888.650.EDGE.]

Volunteer Value

2009-04-21T13:00:00.000-07:00

Understanding the Fiscal and Organizational Value of High Impact Volunteers

The Independent Sector recently published an updated value of volunteer time. According to the resport, the estimated dollar value of volunteer time is $20.25 per hour for 2008. The estimate helps acknowledge the millions of individuals who dedicate their time, talents, and energy to making a difference and gives organizations a way to quantify the enormous value volunteers provide.

Too many organizations neglect this vital resource. To receive the real benefit of volunteers, organizations must work to build a culture that is volunteer-centric, and does everything as possible to make the volunteers experience meaningful and memorable.

Here are some key points covered in our recent "High-Impact Volunteers" teleclass:

> Volunteers are available 24/7/365, not just at events.
> Make sure your organization and calendar are open to volunteers.
> Look for variety in the opportunities you offer.
> Find introductory opportunities and “done in a day” projects.
> Weekends are workdays for many; and vice versa.
> Provide definition and expectation.
> Provide phenomenal support.
> Supply lavish kudos.
> Make volunteering a highlight.
> Treat volunteers like stakeholders.

For a download of the "High-Impact Volunteers" teleclass presentation, send email to info@theedgegroup.org. You can see the entire report, including comparisons by year and by state, at http://www.independentsector.org/programs/research/volunteer_time.html.

[posted by Shannon D. Barnes. Let us help your organization attract and strategically utilize volunteers. Contact us, info@theedgegroup.org or 888.650.EDGE.]

Dealing with Economic Challenges

2009-04-21T12:29:00.000-07:00

This article from The Chronicle of Philanthropy details the way organizations are responding to today's economic challenges. Specifically, notice the priority of mission, even as "survival" oriented decisions are being made.

The tumultuous economy will test the leaders of charity-run businesses in a way they have never been tested before, Kevin Lynch and Julius Walls, Jr., authors of Mission, Inc., told participants at the Social Enterprise Summit.

Staying on top of the business’s cash flow is critical. “If you run out of cash, you’re done,” said Mr. Walls, who is chief executive of Greyston Bakery, a charity-run business in Yonkers, N.Y., that provides employment to people who are recovering from addiction, returning from prison, or have other problems that make it difficult to get a job.

Six weeks ago, Rebuild Resources, a screen-printing business in St. Paul that employs people who are recovering from substance abuse, instituted pay cuts to cut expenses during a tight period. But the pay cuts were driven by the organization’s values, said Mr. Lynch, the charity’s president.

The cuts started with Mr. Lynch, who took a voluntary pay cut of more than 30 percent. “That’s where the money is, in the higher salaries,” said Mr. Lynch. “So if you want to actually affect something, you have to go to the people who are paid the most.”

Other charity staff members took pay cuts that were tied to their salaries, with employees who made the least money taking a 5-percent decrease. But the hourly workers in the charity’s business were not asked to take a cut. “Economically, they simply couldn’t sustain it,” said Mr. Lynch. “But more importantly, that is where the rubber hit the road for us on mission, and what we wouldn’t compromise on.”

At Greyston Bakery, cash flow is tightest during the first three months of the year. So, before the quarter started, Mr. Walls brought the business’s major vendors together, and explained that during that period, the business would pays its bills within 45 days, rather than its regular 30-day term. “Not one of them said, No,” Mr. Walls told the audience. “Not one of them even gave me a hard time, but that’s because we talked to them about what we were doing.”

Balancing a charity-run business’s financial goals and its social mission becomes even more difficult in tough times, said Mr. Lynch. “We’re learning to live with the fact that, for a period of time, we’re making more decisions that are 70/30 on financial survival, because we know we have to be there for the long run,” he said.

The danger, he said, is that over time that ratio will move further and further away from mission. “So the way to avoid that happening is to get clear right now on what you will compromise and what you will not compromise on, and to know what that is before the decision that puts you into that zero-sum realm arises,” he said.

The extraordinary challenges of the recession will stretch the leaders of charity-run businesses in unprecedented ways, said Mr. Walls. To best help their ventures weather the storm, he said, leaders need to make sure that they take care of themselves and their personal relationships and not let the business become all-consuming. “Give sweat and tears,” Mr. Walls told the audience, “not blood.”

[posted by Shannon D. Barnes. We can help you lead and fund your mission - even through difficult times. Contact us, info@theedgegroup.org or 888.650.EDGE.]

A Positive Message for Donors

2009-04-20T09:47:00.000-07:00

Here's a excerpt from a recent article by Dr. John Frank, written to faith-based ministries and organizations. What a powerful message of hope and impact! I hope it helps you as you approach your donors and craft your visible messages.

So this is my challenge to you as you take your Ministry of Development to your donors who may be struggling, or feeling hopeless, or even negative: Generosity is the best way to turn your spirit to a positive direction!
In your next Thank You letter for donations, speak of the gratitude and impact their giving represents.

In your next appeal, make sure you let them know how God is still working in your ministry. Make it positive and encouraging.

In your next face to face meeting with a donor, if they are discouraged by the economic situation, share some encouraging stories from the book of Acts. Remind them that God is still at work. Do not lecture, but encourage them!

If you have a special event coming up, do not start by apologizing about the "e-word", but rather celebrate all that God has done and is still doing!

At your next board meeting and report, along with the numbers, make sure you remind the board of God's continued impact on your work. If you are not in a ministry setting, remind your board that lives are still being touched.
Generosity, stewardship, and philanthropy all contribute to the common good of our communities, families, and our own lives. It is through this great community of causes that our country is the most generous of all time. Remind your donors of just how blessed we are. Through this realization we will start to look at the good in our own lives, our non-profits, and our ministries.

[posted by Shannon D. Barnes. Need help assessing and re-tooling your fundraising efforts? Contact us, info@theedgegroup.org or 888.650.EDGE.]

The Value of a Well-Executed Assessment

2009-04-02T16:13:00.000-07:00

Our primary aim is to help nonprofit leaders like you, “find a better way to do more good.” To accomplish this, we implement a three-step process: (1) assessing an organization’s past and present condition, (2) organizing and preparing teams around newly developed growth strategies and then most importantly, (3) walking alongside our partner clients through the process of strategic and tactical implementation.

Why do we begin with assessment? Well, if your organization is looking to raise more money, improve its leadership structure, align more people with your mission, or launch a major capital project –accessing your past is crucial to creating a path for future success.

Assessment can take a variety of forms. Self-assessments require an organization to have the internal human resources and expertise to know how and what organizational data to analyze. Although these assessments cost very little, they carry the risk of producing a biased view of your organization. On the other hand, professional assessments require you to find an expert who has experience assessing organizations like yours. And of course, professional assessments require a financial investment. But, the value of these assessments is that you receive a complete and unbiased review of your organization.

Whichever you choose, there are important things to include in the process: (1) financial data analysis, (2) a marketing audit, (3) a review of human resources, and (4) feedback from key stakeholders. The end result will be a clear understanding of past and present successes and failures along with an understanding of potential future roadblocks, obstacles, and opportunities.

[posted by Jim Shapiro. Let The EDGE Group help you professionally assess your organization and help create a roadmap for future success. For information on our assessment services, contact us at 888.650.3343 or info@theedgegroup.org.]

Seeking Grants - Insider Tips from a Grant Professional

2009-04-01T20:20:00.001-07:00

Here are some important "grant-seeking" tips from Gail Vertz, executive director of the American Association of Grant Professionals.

1. Develop accurate budgets - As a grant reviewer, Ms. Vertz says one of the weaknesses she sees most often on grant applications is a budget that doesn’t match up with program descriptions. “If you’re putting in staff time and you say you’re getting half of your case manager’s or social worker’s time, make sure it’s easy to see that someone is spending 20 hours on a project,” she says. Otherwise, grant makers are likely to give an application a low score and may not award it any money.

2. Account for all spending - Ms. Vertz said she is also irked by line items marked “miscellaneous” on grant-application budgets. “If somebody can’t tell me how they’re going to spend that money, that’s inappropriate,” she said. “You should be able to explain everything you plan on doing.”

3. Always include results-oriented evaluation - She recommends including an evaluation component that describes how a program’s results will be measured and how that will be reported to the grant maker – even if the foundation doesn’t seek such details. That will demonstrate the charity’s seriousness about making a difference.

For small organizations that may not be able to hire an evaluation specialist, Ms. Vertz suggests looking to a local college or university where a graduate student may be interested in following a grant as part of a thesis.

[posted by Shannon D. Barnes. Let us help you clarify your strategic direction and find new ways to fund your mission. Contact us, info@theedgegroup.org.]

Ask EDGE - Involving Gen X and Y

2009-04-01T19:58:00.000-07:00

Should nonprofit groups be aggressively working to involve people in their 20s and 30s? Even though there is little expectation of raising significant money, I've been advised to not abandon efforts to seek out young donors, even if the initial return is low. Sounds good, but as a small organization, we can't do everything! Any advice? - Derrick

Derrick,

There is a lot of buzz about the generation transition that has started with the first of the boomers hitting retirement. There are a large number of people speaking and writing books on dealing with generational divides and more intentionally incorporating younger generations in company, philanthropic and religious endeavors. I'm sure you're question is on the mind of many nonprofit directors.

First, there is a lot of territory between “aggressively working” and “abandon efforts.” It’s a no-brainer that people in their 20s and 30s are the future of philanthropy. The real question is not whether they they will be the future, but how an organization should approach that demographic now, what it should expect from them, and whether it’s really a “fundraising” question at all.

I would suggest it’s much more strategic, and more about philanthropic involvement/service than giving. President Obama's campaign certainly showed the influence and energy younger generations can bring to a cause. They seem eager to be involved and be used. I would suggest that you focus your efforts on recruiting volunteers and mission-partners, not donors, from younger generations. Once involved, my guess is that their financial resources will follow, and will increase as they develop professionally and financially.

[posted by Shannon D. Barnes. We can help you reach more donors, more effectively. Contact us, info@theedgegroup.org.]

Ask EDGE - Flakey Board Members

2009-03-21T10:30:00.000-07:00

I serve on the board of a nonprofit organization in my community. The organization has been "treding water" for some time - alive, although barely. We have a core group of staff and board members who are consistently working to develop a strategic plan, but the process keeps being disrupted - really "sabatoged" - by sporadically attending and marginally involved members of the board. What can we do? - Jeanne

Jeanne,

Thank you for your question. Take comfort in this - many of the organizations we work with have experienced this same problem before. Getting board members to engage in strategic changes can be difficult, especially if they are marginally involved and the whole board is not pursuing it together.

Here are a few things you might want to try:

> Revist the purpose of the planning
There is a possibility that all the board members are not aware of why the planning is taking place, and may feel as though they have been left out of this important initial decision. The board needs to have a clear sense of the need for planning, and agree together that a new plan should be developed. Every effort should be made to get the input/vote of the entire board.

> Clarify the attendance requirements for your organization's board; visit these with infrequent attenders
Your board policies may already indicate what is and is not acceptable for board attendance. If you do not have an attendance expectation already in place, set one. Board members with sporadic attendance are most likely communicating either a lack of interest in the organization or that they have other prioroties thast preclude regular involvement. Allowing them to clarify this and make decisions that are in the best interest of the group is good for everybody.

> Solidify the board's ownership
I operate from the adage, "Plan with, not for people." Once your board has made a decision to pursue strategy planning, and spoke directly with those who do not regularly attend, make every effort to engage the remainder of the board in the planning discussions. The board can decide to task staff or a board committee with strategic development, but conversations about mission, vision, and strategic objectives should happen with the whole board present.

Board leadership requires the participation of the whole team. Make sure you know who is on and who is off the organization's leadership bus, and then move forward with people involved and empowered to be a constructive part of the planning process.

[posted by Shannon D. Barnes. Move your board governance from "good" to "great." Contact us, info@theedgegroup.org.]

Ask EDGE - Are Visions are a Load of Nonsense?

2009-03-21T09:30:00.000-07:00

I like the honesty of this question. So many people invest in the process of vision and mission development, only to question its value and place in their organization's operations. James addresses this squarely in this Ask EDGE submission:

We are in an unprecedented period in world economic history. Banks have failed, companies have failed, the system has failed. We've moved from Worldcom and Enron, who illegally pillaged the system, to the legal marauders who have now brought us to our knees. Where did it all go wrong?

Here is an example of what I mean: "General Motor’s vision is to be the world leader in transportation products and related services. We will earn our customers’ enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people." What a crock that is! Vision is supposed to be the basis of strategy and here we have an example from one of the great businesses of the age demonstrating that vision in business is not understood.

So what does this mean for nonprofits, who base so much of their work on their "vision"? Maybe the whole approach is misguided? - James

James,

Great question! I think many nonprofit executives, pastors, and board members are wondering the same thing. We have all been through planning processes that produced lofty rhetoric with little or no executed change or mission increase as a result.

That said, I am a firm believer in and evangelist for clear and inspiring mission and vision statements. For a purpose-driven organization (nonprofit or church), the "mission" is the bottom line - the reason it exists and the reason people support its work with their contributions of time and money. Organizations that lose sight of this begin to operate as though the "purpose" is the organization itself. (Relating to your GM example, nonprofits do not have a "profit" outcome to base performance on. Their only performance indicator is cause-effectiveness, which is based in mission and vision.)

When leading organizations through Mission/Vision/Strategy development, I intentionally change the parameters of the "vision" statement. First and foremost, we work to develop a specific and inspirational purpose that clearly defines what the organization is committing itself to -- a mission. With that statement in hand, we develop a vision (5 years, 10 years, 20 years - depending on their size and maturity) that is a bit audacious and measured, clearly saying what "dreams" the organization is working to accomplish. The mission defines the path to be walked on; the vision defines how far the group is planning to hike. While many make the mission subject to the vision, I have found it much more meaningful to do exactly the opposite, to focus organizations on action and responsibility, not mere aspiration.

Our "mission" and "vision" must be much more than mere statements - they must represent and continually operate as the heartbeat and lifeblood of our organization - directing the actions of the staff, board, donors and volunteers toward effective action in the area of their common calling. Don't give up on yours - it is crucial for your organization's success!

[posted by Shannon D. Barnes. Need to revisit your organization's mission and vision? Contact us, info@theedgegroup.org.]

New Approaches for New Realities

2009-03-18T20:55:00.000-07:00

Okay, we all get it, right? This is a difficult economy. No matter how many times we have heard this news on the radio and television, or read extensive reports in magazines, newspapers and online articles, it seems that many nonprofit leaders are just waking up to this fact. Donations are down in many organizations as executives and development directors try the same tools with diminished results.

Yet, recently the Salvation Army managed to set a new record with its year-end red-kettle campaign, which in 2008 raised $130-million, or 10 percent more than last year’s national total. The increase is the largest one-year jump the annual campaign has seen since 1997.

Some might quickly reason that the increase was because people are prone to give to the less-fortunate in tough times. True. Israel L. Gaither, the Salvation Army’s national commander wasn't surprised with the results: “We know that Americans always give more in time of need, so we were confident that they would again respond to the call with an outstanding show of generosity.”

However, while people certainly were generous, the Salvation Army was very intentional with its efforts, and launched a number of new fundraising opportunities this past holiday season, including:

Branches in Denver and Dallas tested “cashless kettles” that accepted credit and debit card donations
Several locations gave supporters the option of making small donations via text message.
Target sold Salvation Army ornaments and CDs in its stores.
The organization also partnered with a digital media company to create an iPhone application that allowed users to download Christmas music to their phones for $2.99.
The National Hockey League added online red kettles on team Web sites, as did the Jonas Brothers band. The Army’s “virtual kettles” raised $10-million online this year.

All that to say, the 2008 campaign wasn't "business as usual." The Salvation Army provided a number of new "channels" that were all significant to the overall success of this long-standing campaign.

Here's the bottom line - organizations that believe strongly in their mission will be aggressively looking for ways to adopt past successes and incorporate new ideas to raise funds in this challenging climate. Success is possible if we are willing to try new approaches to new realities.

[posted by Shannon D. Barnes. let us help you re-think your fundraising message and methods to become Fundraising Masters. Contact us, info@theedgegroup.org]

Nonprofits CAN Turn Challenges Into Opportunities

2009-03-16T15:52:00.000-07:00

Some organizations won’t respond well to today’s crisis. Recent surveys indicate that as many as 200,000 nonprofits – over 11% of the total – will not survive the next year. Another large group of organizations (some estimate as many as 30%) are now operating and will continue to operate in “financial distress.”

What will make the difference between the survivors and the, well, you know? More importantly, what differentiates an organization that will THRIVE from one that will merely SURVIVE? Well, it would be foolish to distill the entire remedy of today’s financial crisis, especially given the wide diversity of the nonprofit sector, to one simple remedy. But here’s one to start with: INSPIRATIONAL LEADERSHIP!

There is no time to lose - it’s time to take a chance – a chance at mission success. It’s time to move forward as though there is vast opportunity ahead. As a CEO, executive director or development professional, you set the mood and direction for your Board and constituents. You can reject the concept of establishing a “campaign ready” mindset as “nuts in this economic environment.” Or, you can relax, prepare and build a network of “yes” supporters.

Defining Chance
By definition, chance (or "luck") is a random occurrence of an unpredictable phenomenon that leads to good or bad. While we have no control over the occurrence itself, the way in which we approach happenstance can shape its outcome.

“Think good and it will be good.” Professor Richard Wiseman, PhD, at the University of Hertfordshire in England, writes in his book, The Luck Factor, “…only 10 percent of life is truly random. The remaining 90 percent is actually defined by the way you think.” A right state of mind can turn a chance encounter at a business luncheon or in line at the grocery store into an opportunity to share your story and welcome a new supporter to your family of volunteers and donors.

Shape Successful Outcomes
Nonprofit organizations can shape successful outcomes by combining best practices in essential fundraising while adapting with an eager and open mind to opportunities and challenges. Shape success by:

Bringing a relentlessly positive attitude to your fundraising, and displaying a passion for your mission and those you serve
Improving, refining and customizing your cultivation and stewardship efforts
Recognizing the contributions of your staff and volunteers, and sincerely applauding their efforts

The world doesn't need any more organizations that merely survive. Your mission and the people you serve deserve more. So, how will the way you think and lead affect the future of your organization?

[posted by Shannon D. Barnes. Need a leadership boost, or new ideas and inspiration for fundraising? Contact us, info@theedgegroup.org or 888.650.EDGE.]

2009 Philanthropic Outlook

2009-03-16T12:36:00.000-07:00

The Chronicle of Philanthropy recently posted an article with the rosy headline: "52% of Donors Plan No Decrease in Giving in 2009." I'm not sure that statistic calls for much rejoicing, but there were a couple important nuggets worth bringing to your attention.

HIGHLIGHT #1: Respondents were prepared to make sacrifices to sustain their philanthropy. Of those who planned to give at least as much in 2009, 50 percent said they were willing to make compromises in other areas of their life to do so. Most people said the recession would not affect their previous charitable commitments. Of those who were committed to a multi-year gift, 87 percent said they would pay the donations on time.

EDGE THOUGHT: Many of your donors value "giving back" and have chosen your organization as an important part of that philanthropic work. This statistic shows that a very high percentage of people who had already made commitments (campaigns, annual fund, monthly giving) intend to keep those commitments, even if personal sacrifices are required.

HIGHLIGHT #2: While a recession may not seem like the ideal time to seek out new donors, many people in the survey (42.5 percent) said they would give to a charity they had not supported in the past if someone they knew was seeking the gift. Many donors (40.3 percent) said they were also willing to give for the first time if the charity was working directly to help people hurt by the recession.

EDGE THOUGHT: Don't stop asking and seeking people to support your mission! Even if current donors are cutting back their giving, a large percentage of those surveyed indicated they were willing to support a new organization - if there was relationship with the organization (think network!) or the organization was serving people hurt by the recession (think "how are we doing this?" or "how will we be doing this in two weeks?").

The article was full of other statistics. Click the blog title to read the whole thing for yourself.

One last thought...Philanthropy is driven by its very definition - "love for man." People are still looking to your organization to meet the most pressing needs of their communities. Don't forget to give them the chance to help you do it!

[posted by Shannon D. Barnes. This is a crucial time for rethinking your fundraising strategy and message. We can help you raise the funds needed to fuel your mission. Contact us, info@theedgegroup.org.]

A Strategy for Advancing your Mission in the Current Economic Cycle

2009-03-09T09:34:00.000-07:00

Here's a great article written by Marco Montenegro, Senior Program Associate for the National Community Development Institute (NCDI; ncdinet.org) and posted on the Alliance for Nonprofit Management website. Enjoy!

A Strategy for Advancing your Mission
in the Current Economic Cycle

Today’s economy has ushered a rapid decline for nonprofits. The typical nonprofit business model of fundraising is hamstrung by the cutbacks in government funding and philanthropy, two sources of funding on which many, if not all, nonprofits heavily rely. The following process is a way for nonprofits to advance their mission despite the current economic challenges, while continuing to build a community of supporters.

1. Schedule calls or visits with your financial supporters.
Talk with your financial supporters and find out how they plan to deal with the impacts of the economic downturn and how that will affect your organization.

Meeting preparation: Invite staff and board members to participate in the funder calls or visits, so that they can assist in carrying back the message. Consider what you know, what you think you know and what you need to know. Also, prepare to share how you plan on surviving this economic downturn.

I recently met with a local foundation to seek support for our work with local nonprofits that wish to build their level of cultural competency. What surfaced in our conversation was that the foundation was scaling back on the number of new grants and the size of their grants. It raised for me the importance of nonprofits to be able to project and strategize where they can and will receive support for the next year or two during this difficult economy.

2. Share the findings of your calls and visits with your staff. Meet with your staff and share your findings. Also, ask your team what challenges and opportunities they foresee and how your organization can address them and or make the most of them.

In the spring of 2007 I spent time with executive directors at a three-day gathering that offered them an opportunity to reflect on their leadership. As we went around the table sharing where we currently found ourselves in the work of our nonprofits the similarity that most executive directors shared was an anxiety about spending three days away from their organizations. It underscored for me the importance of building an organization of shared leadership where the absence of a staff member is diminished by the confidence and ability of other staff to fill the vacant role.

3. Communicate with your board. Share with the board what you have learned from your discussions with funders and staff. Share with the board how you expect to be impacted and what solutions the staff has presented. Also, invite the board to share their insights and ask them what role they believe they can play in a solutions-driven process.

As the organization’s governing body with the fiduciary responsibility the board of directors should be engaged in a dialogue with the staff that informs the strategy for moving forward. (Note: Steps 2 and 3 can be combined.)

In 2003 I joined the board of directors of a San Francisco nonprofit that had just undergone a transition in executive directors. I immediately learned from the new executive director that the budget was in decline, there were no reserves and that we were not on target to meet our fundraising goals. Our board and the new executive director strategized together and agreed to hire a development director.

That year we made our budget and over the next 5 years the development director assisted in growing the budget and building the organization’s reserves.

4. Hold meetings with community leaders that you serve and work with, similar organizations and allies. Communicate with your constituency as to how you expect the economic downturn will impact the organization’s level and quality of service. Ask meeting participants to share their concerns and suggestions for minimizing impacts. Invite them to consider the ways in which they might be able to assist with minimizing the impacts.

Communicate with similar organizations; competitors and allies, and learn how they’re preparing to navigate the economic downturn. Identify where there might be opportunities for collaborations and identify if there are opportunities to share office space or administrative support. Be candid, challenge your assumptions and most of all be creative.

Meeting preparation: If you can expect it, you can manage it! When organizing large community meetings, take time to learn the concerns of those you’ve invited to attend before the meeting. When conducting outreach to invitees explain the purpose of the meeting and ask what concerns they have given the impacts you expect on the organization. Take notes and use them to prepare for the meeting.

For ten years I have been a member of a faith based nonprofit that builds leadership through organizing. I have learned that it is ideal to conduct several small meetings (one-to-one if possible) – to better prepare for a large community meeting. The insights gained from the small meetings will help you to manage the large meeting and maximize productivity.

5. Synthesize the information gathered and draft an “Advancing the Mission Plan.” Organize your findings from your multiple discussions into a plan. Draft and share the plan with a team made of staff, board members and stakeholders that have come forward through the process. Before finalizing the plan, make sure that you have answered all questions that were raised in earlier conversations and reached all necessary agreements.

National Community Development Institute’s approach to capacity building is to build a committee of organizational stakeholders that assist in drafting the change strategy and marshalling the plan. One of the many benefits to this approach is that it reveals the organization’s current capacity, ensuring that we draft a realistic plan that the organization can actually implement.

6. Work your plan. Assign appropriate staff, board members and stakeholders to specific parts of the plan. Begin implementing and monitoring the plan through the guidance and participation of a team that represents the demographic makeup of the organization.

Nonprofits need to seek out their supporters and create dialogue to address the changing economic times within the country. The more an organization communicates with its supporters, the easier it is for supporters to decide what they can and are willing to do to build the organization’s sustainability and help it to meet its mission. Nonprofits that apply this strategy will increase their ability to advance their mission during the current economic downturn.

[Let us help you survive and thrive in these challenging times. Contact us, info@theedgegroup.org.]

Ask EDGE - Leading In "Dire Straights"

2009-03-06T10:56:00.000-08:00

I picked up the following question from another leadership discussion board, but felt the response was so complete that it should be shared. The question: "When two companies are in similar dire straits, what enables one leader to turn it around while the other fails?"

The answer: "Two words: Stability and humility. Having just been laid off from a company whose leaders could NOT turn it around I offer the following:

Stick to a strategy and don't be thrown by your numbers to frequently switch tactics. Turning a ship takes time and perseverance.
Communicate - excessively - with everyone. The rumor mill fills in any gaps, misreads any "omens" and causes a lot of distractions from productivity.
If you're in over your head (e.g. you haven't been in dire straits before) hire a coach or a consultant who has been and LISTEN to them. Your inexperience and fear of making a bad decision will interfere with your judgment.
Rely heavily on your informal leaders to help you communicate, make decisions and maintain focus. Co-create a consistent message and send them out to their teams.
Work at the office. Don't retreat to frequent off site meetings or your home office. Be present, visible and accessible.

While some of this may seem like common sense/general good leadership behaviors, rational people become irrational under duress. The "leaders" I worked under had no idea the negative effect their minor behaviors had on the morale and focus of the organization. And their arrogance in "going it alone" only served to force them to rely on the behaviors and ideas that got them here in the first place. Good leaders recognize when they need to get help and that what they do and say is minutely examined by their constituents. " - Answer by Rebecca Everett, CEO and Connecting Point Consulting

I believe Rebecca's five points are timely and crucial for nonprofit leaders facing tough decisions in today's economy. As you end your week, evaluate her points and make some commitments to improve yourself in at least one - if not all five - of the areas mentioned. Our organizations and our missions are depending on it!

[posted by Shannon D. Barnes. We've been there, and we would be happy to LISTEN and HELP your organization find a better way to do more good. Contact us, info@theedgegroup.org.]

Ask EDGE - Leading Organizational Change

2009-03-06T01:03:00.000-08:00

I recently read this quote: “The benefits of changing the status quo must be seen as exceeding the risk of moving from the existing approach. Individuals facing change must be convinced of the need to change and believe that their personal change will benefit them.” Is relating to others important in changing the status quo? -- Phil

Phil,

Absolutely! This is the essence of William Bridges' book "Managing Transitions." People carry out the change, and Bridges showed not only the emotional impact of change, but what can be done to keep it from disrupting the entire organization.

It requires much more than understanding. In the end, effective change requires ownership... ownership of the problem and ownership of the solution. Change that is performed "on people" will in large percentage fail. Change that is performed with people has not only the opportunity to affect the status quo, but to recreate the organization's entire culture.

[posted by Shannon D. Barnes. Have a question of your own? Send it to ask@theedgegroup.org.]

More Thoughts on Taxes and Charitable Giving

2009-03-03T16:45:00.000-08:00

For another take on the possible ramifications of the new 2010 tax proposals, see a recent article posted by Marc Hoffman on the ECFA wesbite, http://ecfa.org/Content/News2010Budget.aspx.

Have your own thoughts? Send them to us at ask@theedgegroup.org.

Will Tax Changes Affect Philanthropy?

2009-03-03T13:18:00.000-08:00

Half of Wealthy Americans Say Taxes Don't Affect Their Giving

The question has been moving through nonprofit circles all week -- Will the proposed changes in the tax code, if passed, affect philanthropic giving? Well, according to a new study by The Bank of America and Center on Philanthropy at Indiana University, a majority of affluent Americans say their charitable giving would be unaffected by the elimination of federal tax provisions designed, in part, to encourage philanthropy.

This is yet one more sign of the resiliency of philanthropy, and the commitment of those who support the humanitarian, educational, mental, and spiritual needs of our communities. Over the last year, in both the lead up and full onslaught of this recession, donors have responded to questions about their "intention to give" with resiliency and commitment. And look at the recent history:

There has been only one year in the past 27 in which philanthropy has dropped from one year to the next (1987), and it was only a modest drop.
Even during the worst decline in the stock market (2002, when the Dow Jones Average decreased 17 percent and the S&P 500 Index dropped 23 percent), philanthropy still increased by 1 percent.

Yet, fundraising remains a difficult task in this economy. There are fewer resources to support the enormous number of nonprofit organizations (1.8 million, not including religious institutions). So how do you respond to the mixed message? First, be encouraged - people still intend to give. Second, be intentional - only "visible" messages and well designed strategies are going to help your organization succeed in this challenging climate.

[poted by Shannon D. Barnes. Let us help you assess your organization's fundraising efforts and craft strategies to increase your organization's mission impact. Contact us, info@theedgegroup.org]

Raising Money in Hard Times

2009-02-25T07:45:00.000-08:00

For a recent article from the Chronicle of Philanthropy, fundraisers across the country were asked about the approaches they are now taking to attract and keep donors in this economic climate. Based on those interviews, ten important steps were identified. Here is The Chronicle's "10-step battle plan" for making the best of a tough fund-raising climate.

Don't treat giving as a financial transaction
Keep close ties to donors
Offer matching grants
Ask donors to give monthly
Look for ways to save money on fund raising
Seek alternatives to soliciting private donations (fee and revenue options)
Collaborate to raise money
Scale back ambitious campaigns, but don't give up on them
Avoid emergency solicitations
Shore up relations with grant makers

We also can't stress enough that a clarified mission, an efficient model, and a fresh message are essential to your fundraising efforts. Making your organization "visible" to your donors and community at large is key to overall fundraising success.

[posted by Shannon D. Barnes. Let us help you pursue fundraising practices that work. Contact us, info@theedgegroup.org.]

Creating Budgets for Crazy Times

2009-02-20T14:35:00.000-08:00

Using financial information and projections to keep your organization and your mission on track

In our training and client engagements, we often reference the nonprofit "E-Myth": just because you know how to serve the cause for which your organization exists does not mean that you know how to run the business that supports your cause. A recent posting on the E-Myth blog deals with one of the most essential issues -- creating working budgets, especially in times of economic turmoil.

The need to create and use a realistic budget is increasingly pressing in today's economy, but how do you do that effectively and accurately? Especially if your business revenue fluctuates significantly month to month? Here are four important points:

• Determine your variable costs
• Establish your fixed expenses
• Project your break-even revenues
• Create forecasts for both a conservative and an optimistic scenario

From the article: "A forecast is a projection modified by what you think will be different. A projection is simply historical information assigned to a future date. It becomes a forecast when you take into consideration any changes or activities you expect to take place, such as implementing a new marketing plan or launching a new product or service. You should also take into account outside factors such as economic trends, downturns, etc."

"Create forecasts for both a conservative and an optimistic scenario. Although you do want to make the most realistic assessment possible for your operating budget, it may be useful to develop contingency budgets for a "worst case" and a "best case" scenario. Strategically planning for lower-than-hoped-for revenues should not be viewed as being cynical or pessimistic, but practical and proactive. And planning for exceptional, or better-than-hope-for revenues, can allow you to generate breakthrough ideas and strategies that can grow your business!"

Material for this post taken from the E-Myth article "Budgeting for Fluctuating Revenue" (http://www.e-myth.com/cs/user/print/post/budgeting-for-fluctuating-revenue. For more information, see our post, "Strategies for Overcoming the Financial Crisis, http://theedgegroup.blogspot.com/2008_10_01_archive.html#6279620531775345913)

[posted by Shannon D. Barnes. Our Fundraising Assessments will help you pinpoint the strengths and weaknesses of your organization, and make proven plans for increasing your organizations mission-revenue. Contact us for details, info@theedgegroup.org.]

Keep Investing In Fundraising

2009-02-20T09:05:00.000-08:00

As the economy tightens your formerly flush donor-revenue streams, you may start considering ways to cut costs - and as well you should! However, you may want to think twice before reducing your investment in the staff and tools you count on for fundraising.

A recent article from the Catholic News Service indicates that private universities are actually increasing their efforts related to and investment in fundraising. "The economy is bad, everyone is tightening their belts and the natural instinct is to say, 'Wait until everyone's financial situation gets stronger before asking for money,'" said Charles J. Dougherty, president of Duquesne University in Pittsburgh. "But we're on our way to having our best fundraising year ever. We just had to change the way we do our fundraising."

Prior to the recent recession, the development office employed two fundraisers and four administrative assistants. The university restructured, and now has 14 fundraisers in the development office and have increased their in-person visits to potential donors by 300 percent!

Whatever the size of your fundraising operation -- from a team of dedicated volunteers to a group of professionals -- continue to invest in your fundraising efforts and to focus those efforts on the things that are bringing you the most success.

[posted by Shannon D. Barnes. Learn more about The EDGE Group's "Fundraising Mastery." Contact us - info@theedgegroup.org]

Bad Economy No Match for Entrepreneurial Spirit

2009-02-20T08:18:00.000-08:00

Most Entrepreneurs Are Optimistic About 2009

Looking for a group of optimistic donors who are planning to continue or increase their giving? A recent study indicates that small business owners might be a good start!

The Association of Fundraising Professionals (www.afpnet.org) recently posted an article about entrepreneurs giving patterns and outlook for the coming year. "The Entrepreneurs’ Organization, a group of business owners with members across the globe, recently surveyed its members about their plans for giving and their business outlook for 2009. Nearly 60 percent of entrepreneurs surveyed said they would maintain their current level of commitment to corporate social responsibility activities. Nearly a quarter said such efforts will take higher priority this year."

Entrepreneurs remain optimistic about revenues and confident that their business will survive the bad economic climate. Almost half (50%) of the 894 business owners that responded to the survey said they anticipate an increase in revenues in 2009. A quarter (25%) expect revenues to stay the same.

Overall, 70 percent of entrepreneurs are highly confident or confident that their businesses will survive the economic downturn. Only 13 percent of respondents said they were not confident in their business’ ability to survive in this economy.

Optimism is a rare commodity in today's business environment. Finding optimistic donors is a key part of an effective donor strategy. As you work to fund your mission this year, make sure you are including your local entrepreneurial business community. Need help finding them? Start by looking for professional venture groups and business associations in your area.

[posted by Shannon D. Barnes. Fundraising Mastery is a system designed to help small to mid-sized nonprofits, with or without the help of dedicated development staff, create an approach to fundraising that brings your organization both short-term success and long-term sustainability. Let us help you! Contact, info@theedgegroup.org]

Organizations That Lead

2009-02-18T17:03:00.000-08:00

The Los Angeles Regional Food Bank
www.lafoodbank.org

Pasadena resident Tony Collier started the Foodbank in 1973 through the Grandview Foundation (www.grandviewfoundation.org). Collier, a cook with a charitable organization, received more food donations from local businesses than he anticipated and shared them with other organizations feeding the hungry. Shortly after, four members of the community, impressed with Collier's work, formed a voluntary Board of Directors and created the Los Angeles Foodbank.

Initially, the Foodbank’s operations were conducted from a two-car garage. Next, the Foodbank occupied a converted 2,600 square foot dry cleaning facility, and a few years later, a 10,000 square foot warehouse. And only 15 years after its inception, the Foodbank moved to its present location: a 55,000 square foot facility specifically designed for the Foodbank's operations.

LA County has one of the highest percentages of “at-risk” people who struggle for adequate food. With a metro population of around 10 million, over 1.2 million people are in need of food assistance. In just 35 years, The Los Angeles Regional Foodbank has made a significant mission-impact on the cause of hunger, currently serving 900 organizations and 700,000 people each year!

The Foodbank’s growth is mission-driven, and fueled by excellent executive and board leadership. They have intentionally and consistently reached out to their community with a “visible” message, created numerous opportunities to include volunteers and bolster their network of supporters (last year, 13,000 volunteers contributed over 60,000 hours of service), and pushed themselves to improve their capacity and effectiveness.

Their success is phenomenal, but not impossible to match. Organizations that will invest in developing their leadership, defining clear strategy, and raising resources will find the resources, energy, and support they need to further their mission! Maybe it’s time your organization moved out of the garage! We’d love to help!

[posted by Shannon D. Barnes. Contact us about The Leadership EDGE, the Strategic EDGE, and the Fundraising EDGE – info@theedgegroup.org.]

One Lifetime

2009-02-18T14:35:00.000-08:00

What One Man with Determination Accomplished

Did you see this recent headline: Millard Fuller, Founder of Habitat for Humanity, Dies at Age 74.

Mr. Fuller was a millionaire entrepreneur in 1976 when he gave away his wealth and left the business world to start Habitat for Humanity. He and his wife, Linda, oversaw the charity’s growth and expansion from rural Georgia into a global enterprise that has helped house more than a million people. Yep, 1,000,000 people! (For some perspective, that is more people than live in any of the following American cities: Dallas, San Jose, Detroit, San Francisco, Baltimore, Seattle, Denver, Portland, and 40 others!)

Last year Habitat raised more money than all but 13 other organizations in the United States, according to The Chronicle’s annual Philanthropy 400 ranking of America’s most-successful fund-raising charities. In fact, Habitat for Humanity is the only organization founded in the last 25 years to make it into the Top 25.

One life, with focus, dedication, and a passionate cause, was able to provide housing for more than a million people. And the work continues today through a network of people who carry on Habitat's mission, and will reach millions more in the years ahead. Makes you wonder what might be accomplished through one of us?

[posted by Shannon D. Barnes. Let us help you "Find a better way to do more good." Contact us, info@theedgegroup.org]

Inspire Them

2009-02-17T17:17:00.001-08:00

The Role of Encouragement in High-Impact Leadership

I recently received a note from a friend with this quote by John Spalding: "Those who believe in our ability do more than stimulate us. They create for us an atmosphere in which it becomes easier to succeed."

In a season where challenges abound, and where the survival of so many organizations is in question, the idea of inspiration and encouragement seems secondary at best. However, the research and writings of today's preeminent authorities on leadership point to inspiration as a vital component of effective organizational leadership, especially in times of discord and chaos.

In his new book, Axiom, Bill Hybels (founding pastor of the 25,000 member Willow Creek Church) says, "Great leaders cultivate an environment where instead of people getting injured, discouraged, and burned out, they are equipped to become what they never thought they could be and achieve things they never thought they could achieve."

As nonprofit leaders, we must work for the stability and success of our organizations no matter the circumstances – and especially in difficult ones. Our positive outlook is a key attribute to releasing the innovative and mission-focused energies that are so critical to the organization’s success.

[posted by Shannon D. Barnes. The primary factor that differentiates organizations is the quality of their leadership. The EDGE Group can help train and equip your organization's leaders, giving you the tools and focus you need to lead with impact and effectiveness. Contact us, info@theedgegroup.org]

Too Many Charities...Sorta

2009-02-17T14:33:00.000-08:00

Great Ideas and Superior Management Will Prevail

In a recent opinion article for The Chronicle of Philanthropy, Caroline Preston asserted, even amidst the 1.8 million organizations in currently in the nonprofit sector, that the silliest critique in social circles is "just because there already may be too many nonprofit groups, someone with a great idea and the ability to deliver on it shouldn't start another one."

The phrase "ability to deliver on it" is key. With the near glut of organizations (currently 1 organization for every 169 Americans), delivering on your nonprofit takes more than passion and a cause. Organizations that will survive in this competitive climate must have intentional and professional leadership, and work hard to get their message out to a wide audience in order to fund their work.

"Just because there may be many ineffective charities that linger because a donor or two agree with their mission, does that really mean that strong leaders with great ideas should be shut out?" asks Preston. Our answer: NO WAY!

And our encouragement to existing organizations...with more than 100 organizations starting everyday, a sour economy, and less money available through grants and foundations, things that brought past success cannot guarantee future performance. It's time for new ideas, for mission clarification, and for investing in your organization's "ability to deliver on it."

[posted by Shannon D. Barnes. Let us help you become Fundraising Masters. Contact us at info@theedgegroup.org]

Ask EDGE - Trust and Authentic Leadership

2009-02-07T00:10:00.000-08:00

We recently received this question about leadership: What is the correlation between trust and authentic leadership? Do all leaders deserve to be trusted? -- Benjamin

Benjamin,

Thank you for your question. We do not actively follow anyone that we do not trust. Trust is a pre-requisite for "followership" as much as leadership.

There is a great quote from John Gardner that speaks to this: "Confusion between leadership and official authority has a deadly effect on large organizations. Corporations and government agencies everywhere have executives who imagine that their place on an organization chart has given them a body of followers -- and of course it has not. They have been given subordinates. Whether the subordinates become followers depends on whether the executives act like leaders" (On Leadership). ALL leadership, even the most maniacal, begins with trust. If and when trust turns to fear, it ceases to be leadership and becomes dictatorship.

We follow those we trust. We allow them to lead us, and we allow ourselves to follow. Trust is absolutely essential to real and meaningful leadership. Do all you can to build trust among those you lead!

[posted by Shannon D. Barnes. Have a question of your own? Send it to ask@theedgegroup.org.]

Learning from the Past - What last year’s year-end giving statement tell you about 2009

2009-01-31T17:20:00.000-08:00

As we transition into a new year, this is a great time to evaluate your past fundraising efforts and plan new future tactics and strategies.

When reviewing historic data I like to analyze donor and giving trends from one year to the next. With this in mind, I’d suggest analyzing the number of active donors and total amount given in 2008 compared to 2007.

In addition to looking at historic trends, this time of year is perfect for securing new gifts and commitments for 2009. It is common practice for nonprofit organizations to send annual giving summary statements to their donors so they can have accurate records to prepare their taxes. These giving statements are a great platform for donor appreciation and new gift acquisition.

In place of your typical financial document, leverage this opportunity to draft a simple letter that reports positive mission driven outcomes from the past year to your donors. At the end of this letter ask your donors to make a 2009 financial commitment by increasing their 2008 giving by 10% or more. You can secure these gifts by encouraging your donors to pledge this amount throughout the year.

Make the most of the New Year. It’s a fresh start for our donors, our mission, and our fundraising plans!

[posted by Jim Shapiro. Let us help you develop a successful fundraising plan for 2009! Contact us, info@theedgegroup.org.]

Donors Plan To Give This Holiday Season

2008-11-19T21:47:00.001-08:00

Here is some interesting and encouraging data from a recent "online giving" survey. While this study was focused on online donations, it resonates with what researchers are projecting for 2008 holiday donations generally.

Despite the crash on Wall Street and the national economic recession, more than half of Americans polled say that they plan to give to charity this holiday season and only about a third of them will donate less than last year. That’s good news for charity officials holding their breaths about fundraising this holiday season. They might be looking at a $3 billion bonanza from online giving.

A national survey conducted for online fundraising firm Convio by JupiterResearch, a Forrester Research company, shows that of the 175.6 million online adults (age 18+) in the U.S., more than half (51%) plan to donate to charities during the upcoming holiday season.

Nearly over 70% of those surveyed plan to donate the same amount or more in the 2008 holiday season than they donated in the 2007 holiday season. Less than 30% say they will donate less this holiday season.

By analyzing and comparing the self-reported giving plans of survey participants with historic and actual online giving patterns, Convio officials estimate that online consumers will donate nearly $3 billion via the Internet this holiday season. Just two years ago, $3 billion was the estimate of all online giving for a 12-mopnth period.

“More than 50 percent of online consumers say that they plan to donate online during the 2008 holiday season,” said Vinay Bhagat, chief strategy officer and founder of Convio. “This level of online support shows that nonprofits of all sizes need to make sure that their Web sites and other electronic communications meet consumer expectations. It is also important to make sure that traditional appeals such as direct mail, television and events provide people with the option to give online. If it is difficult to give to your organization online consumers will find an alternative.”

During the Holiday Giving Season, human and social services (food banks, homeless shelters, etc.), faith based organizations (churches and ministries) and disease and health non-profits (cancer, heart, etc.) are the most likely recipients among donors at all donation levels. While there are differences in the types of charities donors plan to support based on age, ethnicity and the amount a person plans to donate, human and social services and faith-based organizations stand to be the largest recipients of online consumer generosity.

The overall top five charities of choice:
41% plan to give to human and social service organizations.
34% plan to give to faith-based organizations.
33% plan to give to disease and disorder organizations.
24% plan to give to animal welfare organizations.
22% plan to give to disaster and international relief organizations

[posted by Shannon D. Barnes. Need help reaching a broader donor audience? Contact us, info@theedgegroup.org]