Board Archives

3rd party fundraiser: should you accept the offer?

August 27, 2017 by Sara Jane Lowry

two hands holding a dollar bill so back side is showing with caption how do you respond when someone wants to do a 3rd party fundraiser for your organization in order to promote their business?

3rd party fundraiser events are common today. That doesn’t mean you should accept one. So should you accept an offer of a business to do a fundraiser for your organization?

The answer is: it depends.

On the surface, it seems like a wonderful idea doesn’t it? Wow, someone wants to raise money for you?

But it’s not that simple.

First, it’s your reputation, so choose the company wisely – do your own research and vetting. What if the business isn’t aligned with your mission? And, what’s the likelihood of the event being successful?

Second, what do they want from you? It might truly be something where they do all the work with no involvement from you, and they just send the check for the proceeds. But in many cases, they only want to give you a percentage of the proceeds (as low as 10%).

Red flag the offer if these are part of the 3rd party fundraiser request

They want to:

use your social media to broadcast the event to your followers (or even worse, want you to use your staff’s time to promote the event, create and send emails, postings, and fliers.)
use your staff and volunteers on the day of the event to manage activities.
send thank yous and receipts to everyone who participates financially. (if you’re a small staff, this is particularly challenging).
use your liability insurance for the event.
get you to invite all of your supporters to the event – if you’ve been busy cultivating your donors and their engagement, imagine what a confusing message this sends!

Will they sign a 3rd party fundraising agreement?

This is a board-approved document that outlines:

the permissions to use organizational materials, logo, or any indication of affiliation only for this event including a point about not altering the logo for their purposes, or not.
your discretion as to whether you are able and or willing to post the 3rd party fundraiser on official organization social channels and website.
how charitable receipts will be handled. For example, cash must be accompanied with the identifying donor’s information, address, etc. And, that donations must be given to the organization within 30 days of the end of the event. Or, that you will not provide receipts, and the dollars raised cannot be considered a charitable donation for individuals but only to the business.
most importantly, that your organization will not be held liable for any issues, injuries, damages to persons or property, or any other incidents that arise during your 3rd party fundraiser event.
get it signed in advance of the event. And make sure your board approves the event.

Third party fundraiser events can be a wonderful thing if the business really has the charity’s best interests in mind. But the charity must weigh the “cost” in time, staff, and donor engagement/confusion before acceptance. If it seems too good to be true, it just might be.

Hiring a development director won’t relieve you of fundraising

July 20, 2017 by Sara Jane Lowry

Before hiring a development director on top of a grove of trees in sunlight

Recently I was talking with a board member of a nonprofit who was considering hiring a development director. This board member has been on several nonprofit boards, and worked on some capital campaigns as well. So, imagine my surprise when he said:

“Our executive director is wonderful but doesn’t have a background in fundraising. Or much time to focus on it. Most of the board don’t have friends with money. Most of them are uncomfortable with fundraising. So, we need to hire a first-rate fundraiser. But we don’t have a lot of money to hire one.”

Sure, there is plenty of evidence that small nonprofits have a hard time finding and keeping skilled development directors. Why? They say it’s because they don’t have the money to pay competitive salaries.

But is the issue salary?

No, the issue is that they need:

a fundraising plan
to hire a development coordinator first that can ASSIST the executive and board with the activities that support fundraising.
a fundraising consultant to help them think through the strategy they need through a two-year plan tied to the strategic plan.
a budget for some software tools, and creation of donor materials.

Unfortunately, the Executive Director and Board often don’t see it as bringing on expertise to help them get better at their role in fundraising: they see hiring a development director as a way to avoid or minimize their involvement even further.

Many Executive Directors are program experts and either loathe fundraising or simply avoid it other than grants. That’s an attitude problem that is indefensible. If you are passionate about your mission, you’re eager to talk with donors and funders about how you’re achieving it.

In our conversation, I learned that this same executive director is willing to write grants, but sees the Board as the one who should be doing individual fundraising. Based on what? Is there a plan? A donor list and giving history? Donor communication pieces? A case for support?

My advice to this board member was this:

Put together a job description for the development coordinator (or associate). Hint: You need realistic performance expectations on the part of the executive director and board as what can reasonably happen if it’s a one-person development office.
Hire a fundraising consultant to help create a plan.
Get a commitment from the executive director to grow skills in this vital area.
Give the development consultant permission to have input on budgets and fundraising goals. The consultant will be more reasonable on what is possible to raise over time and based on the organization’s strategic plan.
Invest in software systems and infrastructure to support fundraising. And you might need time to get all that giving history changed over from a spreadsheet or a database.

silhouette of heads and gears working together as a team Most importantly, you need an understanding among all staff (and that includes program people) that fundraising and relationship building are part of everyone’s job! It’s not the responsibility of one person. Fundraising is important programmatic work.

Newsflash: hiring a development director still won’t relieve you of fundraising

Even at small organizations with budgets around $600,000, hiring a development director won’t relieve the board and ED of fundraising. If you already have a development coordinator, a good development director will be able to create more opportunities for board engagement in fundraising, rather than lessening the board’s involvement. What I see is that too many executive directors and boards have unrealistic expectations about what a development director could accomplish without a team and the right tools in place.

If the following things are in place, a development director can be successful:

· compelling mission and a strong strategic plan

· the leadership, vision, and skill of the executive director;

· an engaged, committed, and high-functioning board

· development tools that are effective and efficient to use

· support staff that can manage the details (fundraising is all about the details)

· a strong working partnership between the board and the executive director.

Be smart. Start small and grow. Prepare for bringing on a development director. And when you do, know that the fundraising work you do will really begin to pay dividends that lead to greater impact.

Six steps to creating a high-performing board and board culture

June 5, 2017 by Sara Jane Lowry

A high-performing board is an entity nonprofits dream of having. Is your nonprofit’s board of directors living up to expectations? And, are your expectations appropriate for them?

When staff and board leadership are disappointed in their board’s performance, it’s often because they have not made their expectations clear – particularly in fundraising. High-performing boards build a culture that everyone works within and understands. What’s yours?

High-performing boards have a strong board culture

When there is a reluctance to truly share the culture and expectations of board members during the interview process, you know that you are setting up a culture that won’t serve you well. I’ve heard about why from governance committees: Fear. Fear that a potential board member will be scared away. But in worrying about scaring them off before they join, you’re forgetting one very important factor. And that factor is the passion they feel for your sector. And that they believe you have the solution to an important community issue. But, that’s just the beginning. A strong board culture includes:

sharing a set of values that includes doing the right thing for the right reason,
encouraging questions and avoiding “group think,”
being willing to challenge management when making strategic decisions.

Therefore, to build a high-performing board of directors, you must be intentional with whom you choose. Start with how you present the opportunity and responsibilities, from the earliest stages of the recruitment process.

Ensure the nominating committee is considering your nonprofit’s unique needs at this point in its organizational development.

I’m not a big supporter of a board “matrix” in governance recruitment, unless it focuses on whether they can help you achieve your strategic goals over the next 2-3 years. For most nonprofits, fundraising is a constant need. So your matrix can include networks you’re trying to reach into, new partnerships, leadership skills, or special talents that help you achieve mission. Be careful in assigning skills to your matrix – if you need a financial person because you’re trying to figure out your earned revenue model, make sure it’s one that has skills in that specific area, and that they really want to help you figure that out.

Talk through responsibilities – including fundraising – during first meeting with potential board members.

You should have written statement of roles and responsibilities, They should include expectations for engagement, giving and fundraising. Other questions include: are board members also expected to participate in events? Attend a certain percentage of meetings? Serve on committees or task forces? Talk through each of these points with potential members so expectations are well-defined.

Explain the three legs of good governance: fiduciary, strategic, and generative.

Many boards get stuck in the weeds of fiduciary oversight of your assets. Get a board treasurer they trust to report out on the important stuff. Make sure you’re looking at funding diversity and sustainability (see my post on financial sustainability). Strategy, the second leg, includes setting priorities for your organization, developing and improving various strategies you’re using to meet your mission, and then monitoring their performance. This is often delegated to staff to monitor with very little board oversight. Spend at least 20 minutes of your board meeting on strategic discussion. The third leg of good governance is generative: not just doing work better; but ensuring your organization does better work. Generative thinking includes probing assumptions held in how you decide things, and living the organizational values that should be driving strategy and tactics. Generative mode is often where board members spend the least amount of time, and yet that’s where real governance truly happens. It’s how you make leaps forward. Remember, boards exist to supplement management expertise by asking a different set of questions. High-performing boards spend time in generative mode.

Make it clear during board member orientation that fundraising is a priority.

Leadership staff should discuss and share fundraising goals and challenges with new board members. We can’t expect board members to excel at something unless we give them the appropriate training. Even if they’re more experienced as a board member, they may need a refresher in major gift fundraising. Once onboard, have them meet one-on-one with development staff to discuss strategies.

A high-performing board supports and guides new members in their role.

Staff and veterans of the board should assist new members in focusing on strategic priorities. Create a plan to help them to do so. Start a buddy system with the new member where they can ask questions with a more seasoned member. A high-performing board always seek third-party training on good governance. Try bringing someone in to help the board develop their fundraising skills.

Have board members evaluate themselves – and set goals.

Led by the board chair or vice chair, it’s a good idea to ask each member – and the board as a whole – to evaluate their goals and performance. In addition, having them set thoughtful goals on how they’d like to engage in the coming year gives you something to work with as you strive to keep them involved. A high-performing board ensures that this role be led by their board peers on the governance or nominating committee annually.

By strategically recruiting the right people for your board, making your expectations clear and helping them hold themselves accountable, you will be well on your way to a high-performing board strategy.

Sara Jane Lowry is a local consultant and coach to nonprofits. Reach her at sarajane@sarajanelowry.com or (412) 821-0242.

Servant Leadership: what every Executive Director and Board Chair Should Know

March 31, 2017 by Sara Jane Lowry

Sharing the Power

Leading social-impact organizations requires a type of leadership that puts other first. There are many types of

leadership one can choose in our world today. Certain types are touted by business as ‘peak-performing’ or ‘results-oriented’. But social-impact organizations need a different leadership style. Often, those differences in styles create conflict between the executive director and the board.

According to Robert Greenleaf who first coined the term Servant Leadership:

“Do those served grow as persons?”
“Do they, while being served, become healthier, wiser, freer, more autonomous, more likely themselves to become servants?”
“And, what is the effect on the least privileged in society? Will they benefit or at least not be further deprived?”

A servant-leader focuses primarily on the growth and well-being of people and the communities to which they belong.

Stephen Covey added that leaders need to build relationships of trust, set up win-win performance agreements; and be a source of help.

Servant-Leaders are those who see their job as serving their staff/board team rather than the other way around.

Servant Leaders are people-focused first – and see staff, clients, donors, stakeholders as who they serve. Here’s how that works in your roles:

Board Chairs serve members best by inviting them to aim high, invoking their passion and best thinking. Board members join to follow a calling to serve. They want to bring their strengths, time and talent to serving the community. They carry external experiences, passion, and networks that contain gems of engagement and wisdom. Thus, Board chairs create an environment of respect, shared accountability, and foster creative discussions where members feel engaged and useful.

Executive Directors make their team feel that they care about them by putting them first. Since staff tend to put their clients and donors first, they tend to overextend themselves. And since staff are on the front lines of service, they often have good ideas on how to best serve. Servant-leaders appreciate the diversity of their staff and board. They allow for the diversity of strengths to manifest through creative approaches to challenges.

Servant-leaders hold a level of respect, patience and time-giving.

As a servant leader, you express care and concern for staff and board members. You show empathy for their challenges. Together, you explore ideas which foster a feeling of bonding, belonging, and ownership of the mission of the organization. Servant leadership leads to participatory decision making but only if trust is present.

Trust comes when people encourage each other to share dissenting opinions. Conflict helps uncover best possible strategies. It also can boost your team’s morale by allowing them to take part in reaching a consensus on decisions and goals. Their opinions and voices feel heard, which will help them buy into changes easier. It creates an environment where fresh ideas or new perspectives allow the organization to pivot. And, it requires skills like listening, sharing, understanding and empowering.

The Golden Rule

This is particularly important in times of stress. Stress is a common in nonprofits struggling with resource flow, and limited human capacity. So, in servant leadership, you practice the Golden Rule — you lead and manage other people the way you would like to be led and managed. You ensure everyone understands their job or board role fully. You offer learning, training, and improvement opportunities. When possible, you discuss capacity initiatives as part of the organization’s growth plan. This is especially important as an idea of stewardship–yes for donors, but also for your board and staff.

Servant leadership elicits peak performance because participation, ideas, and feedback keeps you focused on what really matters – the people. It’s a leadership style that builds a strong culture since it builds respect, trust, and loyalty. This builds optimal responses to the highest possible outcomes for all.

When your executive director resigns

March 19, 2017 by Sara Jane Lowry

When the executive director resigns, its usually a surprise. Every board president dreads the day when their beloved executive director hands them a resignation letter, right? Especially when you feel the organization is just hitting its stride, the rapport between the board and ED is strong, staff are staying in positions, and funders are engaged in your projects.

I’ve been there on both sides of the table: the one resigning, and the one receiving the letter. And I’m currently working with an organization going through exactly this scenario. While everyone is happy for the person leaving and the new opportunities that await, we have to admit that it hurts. When the good executive director resigns, it’s almost always a gift to the organization.

Yep, I said it. Resignations are a gift.

Resignations create a unique opportunity to evaluate where your organization is and its current needs, and if necessary, to redesign the position based on the needs of the team and organization it is today, not 2, 5, or 10 years ago. Within every resignation is a hidden opportunity for massive growth, but only if we pause long enough to seize the opportunity.

When your executive director resigns, here are 5 questions to turn a resignation into a powerful transformation:

How is the marketplace today different than when your executive director was hired?

Who you hired years ago was based on the organization’s needs and goals then. The person leaving might have had certain skills that were appropriate then. There have likely been many changes in the organization or in the funding community or community needs that have (or should have) had a big effect on what you need now. How much financial flexibility does your organization have?

Are there new trends? Policy changes? Possible collaborations or mergers? Reassess and reevaluate how the changes in mission and funding has shaped the current needs of your organization. What are the best practices in your field? Where are your opportunities to innovate? What new skills do you need to add to the organization to successfully serve?

Where is the organization in its lifecycle?

Stevens, Ph.D., Susan Kenny Nonprofit Lifecycles: Stage-Based Wisdom for Nonprofit Capacity, May 2002 — Organizational Life Cycle

Are you a new organization? Mature? In decline? The important question to ask here is: to what extent is your organization consistently delivering high quality programs? Keep that in mind as you think about filling the position. You need a new team member who can help you based on where you are TODAY…not where you were years ago. (Does your job description need a major overhaul?)

Is your board a peak-performing board?

If not, the resignation of your executive director can be overwhelming and stressful. Do you already have a strong strategic focus in board meetings? Do your board meetings spend a big chunk of time on strategy? Does it have a dashboard for measuring what’s working? If not, the board can change its culture by refocusing its attention there. Also, a peak performing board generally has performance goals for itself, including self-assessments. They provide many opportunities for building the skills, mission knowledge, and improved performance process should always rest in the board itself, not in staff or consultants. When your executive director resigns, boards often find new strength in their ability to lead.

What does the organization need as its next stretch?

You want someone who’s going to stretch you and the organization and take you to the next level. Your new hire should help you grow, not keep you stagnant. Develop a profile for what you need next in terms of skills and competencies to elevate your organization.

Should you reallocate funds to meet a different need?

Someone leaving creates a budget opportunity. In fact, it’s an opportunity to look at all your senior positions. Do you need to pursue funding to support getting a more experienced executive? Is there “mission creep” that the executive director led out of personal interest or skills that you would not want the new executive to lead? Consider whether you can/should redesign the position to help the team as a whole.

Ask your team: what are your greatest needs?

You’ve outlined the needs of the community you serve, but what about your team members? A resignation is a great opportunity to see what your team needs to help them perform their roles better. It’s also a good way to promote shared leadership and check your instincts.

Once you’ve worked through these five questions, you will be better able to develop the position description that will be precisely what you need for greatest benefit.

Consider bringing in an interim to help with the transition

The client I am working with is going with an interim director for a few months — a wise choice as they are in the midst of strategic planning. An experienced interim director keeps all the balls in the air. The right interim will be able to add some new networks and processes to the organization.

Despite the sting of the resignation, try to accept it as a unique opportunity, rather than a painful loss. What was working then won’t work to get you to the next level. Reevaluating your needs and hiring for what you need now is a hidden opportunity in a difficult situation. When the executive director resigns, the gift is unexpected.

If you want to chat about your current situation and explore ways to help you turn this tough time into a powerful transformation, I’m here for you!