Recommended Content, Layout, and Uses of the Nonprofit Donation Remitance Envelope, And Why

Of the nonprofit donation remittance envelope, (the envelope of any varying legal size included as a donation request on its own, or included in a more formal donation request (such as folded into an annual appeal letter, for example), its design (layout and content) is the most important aspect of this fundraising tool.

We've all seen tons of them.  Remittance envelopes fall out of the newsletter that comes quarterly by postal mail from our favorite nonprofit; or it falls to the floor as we unfold the solicitation letter we received at the end of November asking for a year end contribution to a charity working for a cause we care about.

Let's step back for a moment.  First, what is effective, successful, and professional fundraising?

When we solicit donations from established donors and potential new donors we are not simply asking for money, holding the tin can out with a little sign taped to it that simply says 'give to this charity'.  We know, today, that according to professional nonprofit best practices, the point of soliciting a donation is not to simply raise a buck here there and wherever we can.  Rather, the point in fundraising is to make a compelling case to people, companies, governments, etc. that may (or already do) donate to your organization such that they are not just guilted into giving or are just giving because they get some tax deduction for it.  We engage potential and established donors, we inform them, and make a compelling case to them why our organization is worthy of their support.  We do it knowing (ourselves, as the nonprofit making the request) that first, we can not fulfill our mission statement's goals without community support such as donations from the public and other entities.  As such, our nonprofits' donors are requisite partners in our effort and in fact, are partners in our organizations' successes and accomplishments.  It is not simply hyperbole or sentiment to thank donors.  Frankly, when a nonprofit says "we could not have achieved organizational success without you, donors" they are not being trite but rather honest and even clear minded.  If a nonprofit does not raise funds, year round, each week of each month, they can not afford their annual operating budget.  The organization that does not raise funds but more importantly, that does not raise partners in order to provide its mission's programs today and in the future is struggling.  I am sure of it.  The nonprofit that understands that its lifeblood is its ability to deliver its mission to the community understands that without its community's current but also ongoing or future support, it is dead in the water or treading and sinking fast.

Nonprofits make a compelling case to a pool of current and potential new donors (who are as determined by professional research to be more likely than just a random group of people to give to this particular cause and organization) explaining why they should give to this particular nonprofit (such as, if it's the case, perhaps it's the only organization doing the work it does; its programs' success rates; its excellent and ethical reputation; 80% (or more) of every dollar raised goes to programs and organizational operations; and its team or staff and volunteers and their credentials, experience, and reputations in their fields).  Too, once accomplishments are achieved, all donors are in relatively short time (perhaps on the organizaiton's website and in the next quarterly newsletter) made aware of the achievements their contributions enabled in the community (perhaps even providing the demographics and service statistics for those served) and the donors are thanked.  They are told in this correspondence that your organization's board, volunteers, and staff know that without their contributions your organization would not have achieved what it has.  Finally, the donors are made aware of what current and new mission based goals (programs) the nonprofit is working on and how they can support current and future work.

So, why even include a remittance envelope at all?

Most of all fundraising is still conducted, today, through direct solicitation such as postal mail requests.  Printing in bulk is not expensive and as long as a nonprofit has a P.O. Box or street address it expects to keep for a while, printing up thousands of donation remittance envelopes (as included in the overhead or expense portion of the fundraising budget) is a small cost compared to its donations (or income) return rate.  Track it and see, if you don't want to take my word on it.  What's more, remittance envelopes (especially postage-paid ones, and using the U.S. Postal Service Nonprofit Bulk Rate when possible) are very convenient and economical modes for donors to submit contributions, right when they are asked for a donation (such as in an appeal letter).  When Susan P. Jones or Abraham Z. Smith receives your nonprofit's request for support, he or she can just write a check and pop it into your organization's included remittance envelope and then drop that into the mail on the way into work the next morning.

You may think, 'Arlene, you were saying that the design of the remittance envelope is all important, earlier?'

Yes, it is.  Here's why.  A remittance envelope (like any contact whatsoever with any potential supporter of any kind of your nonprofit) is an opportunity.  The donor, as they go to fill out the remittance envelope, will also be reading the questions you ask of them, in it; or will be made aware of other ways they can both further their contribution (when possible) or support your nonprofit in other ways IF YOUR NONPROFIT MAKES THEM AWARE OF THESE OPTIONS.  This is where layout and content in the remittance envelope become powerful.

Of course the design or layout of the envelope must be uncluttered, clear, and pertinent.  Space, of course, no matter what size remittance a nonprofit uses, is limited.  So, all of its content must only be that of the highest likelihood to produce a donation and repeat support.  This content, it just so happens, tends to also be the information that is the most helpful and informative to the donor. Click on the following image for an excellent example of pertinent and helpful content for the donor and organization:

All Rights Reserved.  Arlene M. Spencer.

When looking over the content that I've recommended, above, consider the potential donor to be someone that is interested in the cause your organization serves, and is interested in seeing the community continue to receive the services or products your nonprofit provides to your community.  Think of the potential donor as someone who is genuinely interested in your organization's welfare and further success.  If they wish to support your agency, then ask them in the remittance for the help you need, but too, let them know in what vast many different ways they may support it.  They may not know that these are the many different options they have to help your agency.  They may always say "no", of course - but at least they've been made aware.

Important things to keep in mind in the remittance's design:

__ Obviously, on the outside of the envelope you'll print your organization's name and mailing address.  You'll also include a box that either provides pre-paid postage or requests a postage stamp be affixed in the postage spot.  Finally, you'll include at least four blank lines in the return address spot.

__ Both inside the envelope flap, and on exterior of the envelope under the flap, is where the above information that I suggest in my graphic can be placed (obviously omitting what you wish or adding what you wish, such as maybe the demographics of the population your organization serves, or the reason why your organization's work is necessary, etc.).

__ What is key - especially since you do not want to be printing and then re-printing remittance envelopes (except in important instances, such as the change of the organization's mailing address, of course); remember not to put organizational information on the envelope that will become outdated quickly.  For instance, if you include the budget breakdown for your organization's operations for 2012 on the inner envelope (to demonstrate to the potential donor how well the organization is run and where each penny of every dollar raised goes - which of course is great content in the actual appeal letter) then you'll need to recycle any of the remittance envelopes with that information on it in 2013 and after!

__ Also, please keep your donor's need for privacy in mind.  In all places on the remittance where you request their contact or other information (wherever you provide a prompt for them to fill in) - be sure that the envelope flap covers it while it's in transit back to your organization through the mail.  Otherwise, people will not respond with information filled in. 

__ As such, be sure, too, that the adhesive strip that secures your remittance envelope will neither cover up (and seal over) or expose any of the donor's filled in information after they've filled it out and then sealed the remittance envelope to mail it back to you.

__ Finally, but not of least importance, the United States Postal Service provides information and suggested guidelines and helpful tips to nonprofits or other organizations that are having remittance envelopes printed up for regular postal use.  See their USPS Quick Service Guide 201c Courtesy Reply Mail guide.  It's helpful and I recommend you look at it, as you design your remittance, as well. 

Once you have your template submitted to your printer, they will offer to give you a sample or draft of a single remittance, per your design, if you wish.  I would take them up on it BEFORE authorizing the entire order be printed so that you can take that sample to one or two local Post Offices.  Actually ask a post master there what they think of the proof and if there are any changes they'd recommend or problems donors may have mailing them back to you.  Do this.  It is worth the time it will take to do.  Do it before you authorize the entire remittance print order.  This ounce of prudence can save your organization and its donors frustration, time, money, and your organization's professionalism will remain in tact.

A List of Specific Fundraising Methods Particularly Helpful At the End of the Calendar Year

We are fast approaching the end of the calendar year and there are certain fundraising methods that are particularly important at this time of year for any nonprofit to consider conducting.  Any one or more can be done for a year end boost to your organization's bottom line.

__ Year End Appeal - The year end appeal is usually similar to the annual appeal except the written and mailed request sent to everyone who donated a certain amount and above perhaps for the past two years (such as maybe $25 and above), usually lists all of the organization's accomplishments and accolades for the year clearly providing as well (perhaps in two separate pie charts or other quick but informative representation) all of the organization's spending and income, and stating what the goals are for the coming new year.  Usually, too, it is pointed out (gently) that a contribution to your group at the end of this year will provide an equivalent tax deduction (to the extent that the law allows) for the donor when they file their taxes for this year.

__ Major Donor Year End Appeal - Is a specific appeal, exactly like the Year End Appeal described above, except any major donor request is always conducted face to face with the nonprofit's major donors (again keeping in mind that the major donor is often eager to donate at the end of a calendar year to benefit their tax deductions and can also afford to give major assets such as land, stock, bonds, etc. and especially give on this magnitude at the end of the year for the tax break).

__ Grant Donors Looking to Spend Down The Rest of This Year's Giving Budget - By law foundations are required to donate a specific percentage of their total assets each year to remain in good standing with the IRS and other government entities that oversee their operations.  Sometimes a given grant donor will find, at the end of their fiscal year (which can fall, of course, on the end of the calendar year for some grant donors) that they have money left to give in order to meet either this oversight rule or to meet the giving budget for the year.  Either way, it never hurts to research grant donors, more likely to give to your specific nonprofit (see the link in this sentence to know how to determine which grant donors they are) and see if they happen to be needing to spend down this year (as it's the end of the calendar year).

__ Governments Looking to Spend Down The Rest of This Year's Giving Budget - Like the foundations described, above, (and though the economy is down still) some government agencies or programs gave budgets this year and some of those may have money to give yet in order to meet their giving goal for this year.  As suggested above, if their is a federal, state, local, or Tribal, etc. government agency that your organization knows has or would support your nonprofit, it doesn't hurt to research whether their office is looking to spending down some last unused money marked for grant donations.

__ Request Outstanding or Due Memberships, Pledges, and Other Final Quarter Donation Balances- Often, like a for-profit business, nonprofits can run their Accounts Receivable for their donations (or expected income report) for this year and see which donors (sponsors, in kind donors, etc. included along with individual, business, and foundation donors) have yet to give in full for the year if they promised or pledged a certain amount before 2013.  Requests all of these outstanding amounts.

__ Board of Director Annual Contributions - Often nonprofits raise money, annually, through annual leadership contributions which is a specific often larger amount that each board member promises to either raise or donate personally (or give through a combination of the two).  If your organization conducts Board Contributions, be sure to request any outstanding remaining balances from any board members still needing to fulfill their contribution amount for this year.

__ Employee Giving Programs - Many corporations provide their employees with the choice to give to any one (or more) of a long list of area or related nonprofits.  If, for instance, your organization operates in Dallas, Texas you might want to find out how your organization can get onto Hewlett Packard's Corporate Giving List (for their employees to select to give to your nonprofit) over the coming year - usually through a monthly (or other regular incremental) contribution deducted (pre-tax for the donor employee) from their pay check.  Another example is, if your nonprofit operates in Seattle, you could contact Microsoft's Human Resources offices and find out how to get onto their Employee Giving list for 2013 and on.  Always be sure, when requesting/receiving volunteer time or donations from any employer's employees whether the employer matches the contribution.  Often they do but if you don't ask, you don't know to request the matching contribution from the employer, once their employee's donation or volunteer time is given.

__ Corporate Used Items Warehouse Donations - Some corporations warehouse used and old office furniture, kitchen appliances, office appliances, etc. that they intend to donate (for the community goodwill and tax benefits to their company).  Some sell these items at very low prices.  If your organization is needing new equipment or furniture, for your office, contact a local large corporation and ask if they have such a giving program.

__ Thank Supporters - This is a 'no brainer'.  Always make it a point to thank volunteers, partners, and donors without asking them for anything at least four times a year (if not more often, such as thank the donor events).  As we are winding down this year, in all of your organization's year end publications remember the community that allows your organization to achieve its mission goal and the goals of its programs: the community partners, donors, and volunteers who without your organization could not operate, let alone succeed.  In your nonprofit's final newsletter, blog post, Tweet, Annual Report for the year, etc. thank them each and all.  Acknowledge the importance of the partnership you have with them.  State that your  nonprofit and its leadership knows that this ongoing relationship with them is how your organization's successes are achieved.

The Roles A Nonprofit's Founder May Hold During the Life Cycle or Growth of the Organization

Not every person who founds a nonprofit is not necessarily the very best possible candidate to either be the new organization's executive director nor the board president (and should never be both).  Please read Someone Has To Say It: The Nonprofit's Founder May Not Be the Best Executive Director Or Board President Candidate (and Should Certainly Not Be Both).  This post is the follow up to that one.

When interviewing people for either the executive director or board president position there are considerations (each candidate's professional and/or volunteer education, credentials, experience, knowledge, and one's professional and personal reputation) a nonprofit's board should come to know and weigh, compare, and the founder can be considered in either pool of potential 'hires', of course.

But there's more.

A founder is many powerful and important things to a new nonprofit.  He or she is a leader within the community, simply by virtue of deciding to do something about an issue or cause that concerns them enough to develop a solution for it.  They are probably pretty good at getting objectives achieved.   They may or may not have personal experience or a connection to the cause or issue. Too, he or she is creating an organization that will ideally go on and achieve the goals of the mission statement.  There is something to the idea that every nonprofit is in the business of putting itself out of business.  To put it another way, wouldn't it be nice if cancer were entirely eradicated?  Not only would fewer people suffer, but all nonprofits affiliated with cancer research, support services, medical services, hospice, etc. would be out of business.  It would be a good reason to be out of a job.  There is a lot of doing good involved in operating a nonprofit and a lot of satisfaction for anyone who participates in the effort (from volunteers, to donors, to staff, to clients, etc.).  A founder can (understandably) feel very tied to their new start up nonprofit.  They've likely put in tens and tens of hours into forming it, invested their own expertise and perhaps finances into filing, and have perhaps included friends and family by asking them to get involved.  It's a tremendous effort and even a difficulty.  It's an effort to begin and launch a new nonprofit.  It is understandable, therefore, when we hear of nonprofit founders who, without questioning if its in the best interest of the nonprofit's goals or the beneficiaries, insert themselves into the nonprofit start up's executive leadership positions.  They, after all, are the person who brought the organization into existence.  They are not, however, the reason that the brand new nonprofit exists.  This is an important distinction for the founder but also the other leaders to understand.  The reason the new organization exists is the needs of the beneficiaries. If Bill began a nonprofit to provide lunches to low income elderly seniors who are immobile but not in a care facility, Bill may believe his new nonprofit exists because he founded it.  He did indeed bring it into being.  The reason, though, that the organization that Bill founded exists is to feed immobile elderly who are not in care facilities (and their not necessarily receiving enough nutrition at home, if the service was not provided).  The beneficiaries of the new nonprofit and their need is the reason the lunch service nonprofit exists.  Bill is not the reason this new nonprofit exists.

So, if the reason a start up nonprofit organization exists is perceived to be because of the founder (by either the founder, its executive leadership, volunteers, staff, donors, or etc.) - then something is already setting the organization's potential back when it has barely begun operating.

In my example, here, Bill's effort and contribution to the community is admirable, perhaps critically necessary, and everyone who receives its services and the community at large will undoubtedly be grateful to him for his passion and commitment to the impoverished and hungry senior citizens.  Bill is the face of the organization's story - how it came to be - and he is the critical person who initiated its launch.  The seniors the agency winds up feeding are the faces of the nonprofit's mission statement and ideally, its success.  Everyone involved in getting the organization underway and operating, getting the programs and services designed and implemented, and the volunteers and donors who support the organization's effort are each and all team members in the nonprofit's success (whether it is a start up or a two hundred year old organization - this is always the case - it takes a team).  As we've all heard... yes, I'm going to say it..."there is no 'i' in 'team'".  What we don't always hear is why.  The reason why is no one person can do everything necessary to design, deliver, support, sustain, and grow a successful nonprofit (one that achieves the goals of its mission efficiently and ethically).

A nonprofit like any organization has a life cycle.  The IRS has a segment of their website dedicated to the life cycle of the nonprofit called Life Cycle of a Public Charity.  A brand new organization begins with a lot of behind the scenes work prior to the launch.  Usually the process to file with the state, IRS, and perhaps other entities (such as cities, counties, or Tribes, as required) takes at least a year (from start to finish).  A legal charity in the U.S. must file with the IRS in order to operate as a charity legally.  Meanwhile, the founder and probably a small team as well must make sure that the nonprofit is not setting out to do work already being done (or done well).  There is some required due diligence of this sort.  What is the geographic region the agency is going to serve?  Who is the target population (or beneficiaries or clients)?  What are their typical demographics?  What is the need the new nonprofit is being formed to meet?  How will the nonprofit answer these needs (or what are the programs and services the organization is going to provide)?  Which other government agencies, nonprofits, companies, etc. are working in the same cause of issue in the same geographic region the new nonprofit will serve?  How many are doing very similar work?  Is there any overlap?  Is another entity already addressing the issue or cause the new start up is intending to for the same beneficiary population?  Nonprofits that succeed and grow (whether start ups or not) are ones that are relevant. In other words, if an established nonprofit is already feeding the low income home-bound elderly in the same community Bill wishes to serve - Bill should likely address another need (one that is as yet unmet) or risk not being able to raise funds, volunteers, etc.  If another established nonprofit is already successfully feeding the population he's identified (like for instance, perhaps a Meals On Wheels is already doing this work in the same region) then why would a donor give to your new start up to do the thing an established (successful) organization is doing?  Too, why should Bill potentially pull any support from them if they do their services well?  Finally, why do what's already being done when another need that isn't being served could be?  Perhaps, if Bill finds out during his initial needs investigation that Meals On Wheels is doing what he initially considered doing through the new organization and they doing it very well, efficiently, and are reputable.  Then he could instead make this new nonprofit idea a needed and related program of the established Meals On Wheels - one that is needed but has not yet been designed, funded, or initiated by that Meals On Wheels.  Of course, he'd have to discuss this idea with that nonprofit's leadership first.  Or he could also investigate (through a needs assessment conducted among the target population) what needs actually do exist that are not being met or aren't being met well and create a nonprofit to instead of his first idea, serve another.  Maybe Bill, upon learning of Meals On Wheels providing lunch to poor elderly he conducts a professional and well written survey among the target population and through its findings he finds that they need a grocery service.  No nonprofit, government agency, company, etc. is helping them get their groceries consistently, at no cost or a low fee, successfully.  Bill can now consider how to form the new nonprofit's mission, programs, services, and goals around this as yet unmet need because this new organization will indeed be relevant.  Donors, volunteers, clients, and even other organizations (who might become partners to the new start up) will each and all understand the need being met and that it is not being met by any other entity.  Why wouldn't they (and the remaining community at large interested in this issue) support the new nonprofit Bill is starting up (especially if it's run effectively and efficiently)?

 The number one thing that a new nonprofit's founder can do especially initially is network.  A founder can be incredibly instrumental in networking as they are the face of the new organization's administration.  He or she is a store of compelling information.  Bill can sit down with pertinent contacts working for similar or related other nonprofits, companies, and government agencies in the field and impart his passion about this population, explain in quantifiable recent terms (per his needs study's findings) why this need is so important to serve (no one else is doing it and they need groceries), and where he is in the process of starting the new organization.  Perhaps he's even the best person at this stage to do this very necessary work.  Networking is a large percent of his job as the organization is being formed and certainly as it launches.  He will not only be developing potential donors, community partners, volunteers, or colleagues but he will also find out information he did not know that is pertinent to the new nonprofit's existence and work.  Maybe Bill meets with the Meals On Wheels executive director, Deborah, and board president, Seth, and shares with them what the new nonprofit will do, for whom, how and what the founding/launch timeline is.  He might hear from Deborah that Bill ought to meet with Meals On Wheels' programs managers to inform them of the new nonprofit's services and timeline but also to ask them about who they would recommend (as they are professionals in that field) who they could recommend as potential volunteers or staff to assist in designing programs and being hired as programs managers.  Maybe, too, Seth recommends that he take Bill around to a few meetings with the larger businesses in town - he would be happy to make introductions for Bill and the new nonprofit to people who may become board members, may donate themselves and/or through their businesses, and might also be key community partners (for example, maybe Seth introduces Bill to the Ford dealership's owner (who has donated new vans to Meals On Wheels every five years) and that dealership leader after meeting Bill promises to do the same for the new nonprofit - and why not - it's a second and new additional write off, community outreach opportunity, marketing and public relations accomplishment for the dealership). 

Meanwhile, Bill has a million other irons in the fire as do two others who have been helping him since day one.  They, together, are researching recent, local, fundraising trends in general (to take its overall temperature, in the current economy, locally), and researching potential donors for their specific organization (and even through a feasibility study, perhaps) to understand  would local people support it financially or in kind, would local businesses, and if so - how much - how often, etc.  The three of them are also developing job descriptions and qualifications for various volunteer positions - everyone from the first executive director (which Bill intends to throw his hat into the ring for among other candidates) to the fundraising committee, to the board, to the volunteer manager, programs people, and bookkeeper.  They already have a local nonprofit-specific CPA and attorney who are each volunteering time with the start up (and these folks are helpful to have in place as a start up files for their 501(c)(3) status with the IRS).

Bill maybe learns of Keisha and Anthony who are each reputable and credentialed social workers that have worked with the elderly their entire careers, from Meals On Wheels (or another agency) during his networking.  They meet with him and agree to volunteer to help Bill design the new nonprofit's services and programs as he has no experience in programs or services design or management (and certainly not in geriatrics or direct services such as providing groceries).  He asks them to do two things.  Bill asks them to research what other nonprofits in the state and the rest of the United States are successfully delivering groceries weekly to low income elderly and whether any of these nonprofits would be willing to share their programs/services designs and their budgets.  Nonprofits often share the programs or services that they have designed that have proven to be both effective (per the service's goal) and effective (successfully providing the program or service to the target population such that it works for them) because they can then call their programs or services that are replicated by other organizations model programs.  Model programs raise more support particularly from grant donors and some matching grant donors because they are not only successful but proven and replicated.  The other side of this is the organization that uses a proven program or service as a model for their own is building proof of concept (and success) into their own new program or service.  This builds a lot of confidence into their new service offering (even if start up) and donors give when they feel confident.  The second task he asks Anthony and Keisha to do is to identify actual real service numbers or put another way - he asked them to research and be able to state within one hundred people how many people exactly their organization will serve during the first two years of the organization's operations (which is expected to begin within a year's time).  In order for Bill to oversee the designing of realistic programs and services, but too, to be able to budget for, staff, fund, etc. anything - he has to know in real numbers what costs he is looking at.  If Keisha and Anthony find after their research that potentially the new nonprofit will buy and deliver groceries to ten thousand clients, Bill might respond, "Wow.  We will have to grow into serving that many people, and begin smaller but aim to serve them all in five years."  Or he might respond, "I've been raising enough money, already, and have enough pledges, sponsors, and other kinds of donors that I think we could do that within the first two years of service."  His response to their findings has to be based in both what he's already hearing back from potential volunteers and donors; but too, how much he is learning the organization will realistically be able to raise each year.  In the end, given what budget/funding decisions Bill makes, he leaves it up to Anthony and Keisha and their expertise to decide whether going with one of the model programs as a template is potentially the most effective method to deliver their services to local clients (given the findings from the needs assessment), or whether it makes more sense to develop their own programs from scratch (using Keisha and Anthony's expertise, what community partners are pitching in, and local demographics and needs findings).  If they deem building their own programs makes sense, and if the board signs off on this finding, then the two of them will design and implement (and possibly run) the programs and service (including the intended outcomes in specific client numbers, evaluations, budgets, staffing needs, site locations, logistics, etc.).

No one who builds a new organization (for profit or nonprofit) sees that entity as only existing for the duration of their lifetime - only to end when they die.  The intention is that the business or nonprofit will go on growing, succeeding, achieving, and building into the future indefinitely.  As such, the goal is for a new start up to thrive, grow, succeed, and flourish.  What will it take for the nonprofit to do this?  Well, it must achieve the goals of its mission statement.  It's programs must be efficient and effective.  The population served must actually assert themselves (without coercion, etc.) that their need is being met that the agency intends to serve.  The organization has to be reputable, well run (according to professional, nonprofit, best practices probably), and announcing its name, services, goals, and successes in the community.  They must make their organization and its successes known so that current and potential new donors, volunteers, and community partners feel confident supporting this nonprofit.  Operating the nonprofit according to best practices just happens to get a nonprofit in position to be the magic combination: compelling, relevant, and also able to demonstrate (through programs' evaluation findings and service stats) it's a sound investment for anyone in the community that wishes to support it.  This is an organization that is currently successful and whose future is bright.  Efficiency is a best practice that also instills confidence and also ethics - 80% or more of each dollar raised goes directly to programs and services, the agency reports on time and is a transparent operation (anyone at any time can get the organization's annual report).  Aside from its administration, though, a new nonprofit that is going to thrive must have an experienced, talented, credible, reputable, and perhaps even specialized team of volunteers or staff (especially among its board and entirely its programs and services designers and managers).  Credentialed reputable professionals instill confidence, too.  Perhaps more importantly, they know how to build or replicate a successful program design, how to implement it, how to oversee and manage it (and its staff or volunteers, budget, and evaluation) - so that it achieves success for the beneficiaries.  Their needs get met and the organization doesn't waste time, money, or its reputation fumbling and bumbling (even if well meaning).  If a reputable team of leaders and staff or volunteers (especially initially) aren't at the helm - who is going to know what is going to actually work and how long will it take that person to find that out? 

All volunteer positions (leadership, office admin, programs, and specialists, even) should have a job description including qualifications.  These should be state of the art (or current) because anyone considering the position can tell a lot about your organization from the job descriptions it advertises for job openings.  Always put the organization's best professional foot forward and research what the latest best practices job descriptions for various positions entail (and understand why).  Multiple candidates should be recruited for the leadership roles (leaders in the professional field and the sector should be identified whether working already or volunteering already elsewhere, courted, and invited to apply).  What nonprofit couldn't use the cream of the crop to ensure its organization's success and potential?  Aim high.  All for profit executives consider community involvement and many volunteer (especially as board members).  It's a public relations opportunity for their firm, at  a minimum if the company's leaders are volunteering but often these leaders genuinely wish to get involved in the community.  Don't decide for anyone.  Let them say "no" to your organization's opportunity if they need or wish to.  Candidates for office administration or assisting with programs or services should also be considered in larger numbers than necessary but considered based on their commitment to volunteer, availability, maybe experience, but too, definitely their background check results, and what is learned after following up with their references, etc. to determine whether one's beneficiaries (clients) will be safe in their care, and so on.   It helps to use the cause or issue's professional and ethical minimum standards (including too the laws or guidelines suggested by one's state, and other pertinent governments). 

Bill may or may not outshine other candidates in whichever position he applies for (along with the other candidates) but the board (or whomever is 'hiring' for the leadership position) should be clear that they are to choose whomever is the best candidate based on how they stack up to the job description and suggested experience and skills, and how they compare to the entire pool of candidates.  Bill is concerned and has passion and follow through but does he know how to run and oversee a nonprofit organization?  It requires expertise in fundraising, working with volunteers, overseeing budgeting and implementation of programs and services, evaluating those programs and services, and more.  If he doesn't know how to do these things - why doesn't he allow someone who does (and does well) to take the role?  The future of the organization and its best interests (the goal of the mission statement and the intended outcomes for the beneficiaries) should be the focus in all of the nonprofit's leadership's decision making.  Mission-based decision making is what leads to organizational operational and programmatic success.  Kowtowing to a founder's ego or entitlement to a position or role does not do anything for the nonprofit or its beneficiaries and it can actually harm both (see the news item links at the bottom of the previous post, "Someone Has To...".  The link is in my first paragraph, above).  When leadership always uses the mission and best interest of its goals as the number one factor in making decisions - not only is everyone in the leadership on the same page - but it's clear that the values of the organization are truly its services and programs' successes.  This instills confidence among clients and potential supporters, but too, it is how a nonprofit thrives, grows, succeeds, and shines.

A founder may or may not be effective in any role (including being the founder, even) depending (of course) on what their knowledge and experience is in both the nonprofit sector and the professional field that the specific nonprofit is working in.  Nonprofits are unique and require (like any field) unique expertise.  You'll want someone with successful experience but a strong reputation to plan and begin fundraising.  If you don't recruit a volunteer (or eventually staff member) with qualifications - why wouldn't you and what are your real goals, then?  The real answers to these questions need to be brought to the fore and addressed, maybe.  It's the exact same thing with nonprofit programs, nonprofit administration, and leadership.  Expertise saves money, time, and reputations; but more importantly it's how success is achieved (and quicker).  As an organization launches, ideally it has in all necessary positions (executive director perhaps, but board members, volunteers, and committee members) filled by experienced, reputable, talented people who are told to do what is best for the nonprofit and its beneficiaries and not any one or anything else - and then do that. 

A founder may, after an organization launch, become a board member (not necessarily the president), an in office volunteer (who works under the executive director), a committee member (marketing and public relations, fundraising, etc.), or may even simply become a client (the last nonprofit that I was a staff member for was founded fifty years prior by a woman who needed a direct service provider and after helping form the nonprofit became one of its clients (and nothing more)).  Can a founder be the best possible candidate for a leadership position after a nonprofit is formed?  Yes.  Is it always going to be the case?  No.  How can a nonprofit do its very best?  Requiring qualifications and expertise be met.  With the best possible team and the best possible candidates filling each and every leadership position the organization's future is very really potentially incredibly successful.

Someone Has To Say It: The Nonprofit's Founder May Not Be the Best Executive Director or Board President Candidate (and Should Certainly Not Be Both)

When a nonprofit is founded by a single person often that person feels 'the right' to become the nonprofit's executive director or board president.  As I've said in other posts, in this blog, I get it.  The founder is passionate about the issue or cause the organization is going to work on, feels a certain natural claim to the leadership of the new nonprofit, and is likely a great public facing member of the team.  They carry in their person both the passion in a nonprofit's launch but too, the unique story of who began this nonprofit, and why or how the organization started.  This is powerful storytelling which we all know is powerful marketing and public relations.  All start ups must begin fundraising among all other operations (including building programs) and networking is a key component to launching all of this.  It is important that the story be told.  It is a great way to begin networking and introducing a new nonprofit to the community and world; and this individual is potentially a good member of the brand new organization's leadership team.

Is being the person who can tell the founding story of an organization the best person with the most qualifications and experience to lead a particular organization, though, such that it both grows in a healthy fashion and also delivers the organization's mission efficiently and effectively?  It's a mouthful sentence.  The goal for any nonprofit that wishes to succeed and grow is to best serve the beneficiaries of its mission statement while also operating the organization efficiently and ethically.  The mission is "..the thing" and the number one interest is the beneficiaries.  So, does passion and gumption qualify an individual to know how to best do these things if the goal is to succeed at the mission for the beneficiaries? Maybe.  Maybe not.  And, I think that you know this.

The founder is not necessarily the best person to either lead the day to day operations as the executive director nor is he or she necessarily the best candidate to lead the board.  If a founder is truly creating an organization that they believe that the community needs and can really solve some issues effectively - that person will do whatever is best to ensure the organization begins, grows, and exists to do more good another day.  The founder - the impetus - the carrier and instigator of the passion for the new start up's cause does whatever is necessary to best serve the beneficiaries of the organization's work.  Sometimes the founder is the person for one of the leadership jobs, but sometimes they aren't and a professional will acknowledge and even support facing this fact.  Perhaps they are "suited" (i.e. of the founder one probably can comfortably say, 'Joanna cares about the issue...' or 'Dave has a personal history with the organization's cause...' and these are important connections to the mission and the agency, itself) but are they the best candidate for either leadership job?  I am certain the founder is passionate about the cause.  But, is passion enough of a qualification for an executive director or the board president position?  Or, are there more qualifications a leader of the particular nonprofit should have in order to truly be the actual best candidate for the best interest of the future of the nonprofit?

It's uncomfortable to consider and certainly not easy to bring up or say out loud - but the fact is - if a nonprofit's operations, or if its leadership is encumbered by the weight of either a founder's self-entitlement or ego (or both), then the leadership is neither doing its job nor effectively able to.  It is the responsibility of the leadership to see and also acknowledge it if this is the case.  The organization, too, is in a poor position that could lead to it not growing or succeeding as well as it could.  If a nonprofit's leadership is operating always first considering the founder, then the mission statement and the beneficiaries are not the focus of decision making (as they should be).  Instead, whether they acknowledge it or not (whether the founder wishes to acknowledge it or not) often the first consideration goes through a filter ('Joanna won't like it if I or the board comes out against her on this' or 'Dave is the founder, so he knows best') and that has no place in best practices operations.

It might be new to a founder or a founding team to believe this, but it is the case that if your organization's mission is relevant and needed by the community (no other organization is solving a currently as yet unmet known need) there are many experienced, talented, even credentialed professionals who will be interested in volunteering (or the same can be said of potential staff, etc. when hiring becomes a possibility) with your nonprofit.  There are no requirements that a nonprofit, for example, have a Google board member serving in order to attract the cream of any profession's crop to either volunteer or work for your nonprofit.  You may think your new nonprofit is too small, or ask 'who am I to reach out and advertise for the best in this field'?  'Why would they respond?'  If the cause is real and the organization's going to serve that cause - there will be amazing candidates for your organization to consider, and depending on how well your organization is getting the word out about its launch, its mission, and who it's looking for to run it, some may be literally the best in their professional field.  Remember, Microsoft board members, AT&T executives, and even the highest up executives at say, the American Red Cross's executive offices often seek leadership roles in the community.  Talent is out there looking to get involved.  So, who would be better at serving your organization?  Someone with talent and experience or someone who of course did as important an achievement by founding the nonprofit but does not have the experience or know how to do as good a job as the other candidate?  Is founding a nonprofit enough to forgo bringing on the best qualified person to go forward?
 
In this day and age, no founder should be both a board president and an executive director.  Temporarily they might be, but only for a short limited amount of time until one of the positions is filled by a qualified finalist.  Not only is one person occupying both positions too much power held by one individual - it truly is the definition of a conflict of interest.  The board of directors of each 501(c)(3) (and other charities recognized by the IRS) are legally required by the Sarbanes Oxley Act to oversee and be personally accountable for the organization's operations and that includes overseeing the executive director and their performance and so the entire board must be able to fully execute their executive role.  The board is individually and as  a whole legally, per Sarbanes, responsible for all reporting to the federal government including fiscal oversight  and ensuring it's correct; but too, it must be certain that the operation is running in an accountable transparent fashion.  The word "transparent" has been a buzzword since before the law was a law because (as news story after news story can demonstrate) the federal and even state governments that oversee legally recognized business entities (including nonprofits) had had enough of not being able to either discern nor report to the public what agencies were operating on point per their mission, efficiently, or even effectively.  Congress (and the public (who are donors, volunteers, clients, etc. of these nonprofits)) had had enough of that - and so, in part due to this, Sarbanes came to be.

The law is not the only reason that a founder (or anyone) should occupy both the executive director position and the board president role.  If a donor considers giving to a nonprofit - they do so to achieve some accomplishment in the community at large - the goal of the recipient organization's mission and also the goal of its current programs and services.  If though, a nonprofit is led by one person mostly (as they occupy the head of the directors and also run day to day operations) it may not appear like a wise investment for the donor.  Decisions...all decisions (growth, strategy, beneficiaries' needs, policies, oversight, operations, etc.) are best handled by a team (preferably one with expertise, experience, successes, and even (if appropriate) credentials).  If, though, the team is not as strong as it could be (in its accomplishments or professional experience) or if the team is not empowered by its entire leadership to always base decisions on what is best for the beneficiaries and put them and the mission first (rather than a founder's perhaps inappropriate legacy and their expected or entitled position or their ego) - then why would that donor give to this nonprofit over another that is better run (i.e. more effective and efficient which empowered leadership is able to do)?  That other organization's potential - its future also looks better given it is unencumbered by the extra political quagmire (or even drama).  The other nonprofit will appear to a knowledgeable donor as the wiser investment, and well, may be.

Any one person who occupies both the head of the board and the executive director position should relieve themselves of one position (or both), or their board members should talk with them and ask them to do this.

You or they may protest to my blog post's points.  Someone might respond, "Well, Joanna has led us to many programs achievements, fundraising successes, and our operations are on budget and on track..." or "Dave has been nothing but enabling about the board and the other volunteers.  He is not a political quagmire for the organization's operations or future."  If these things are actually true (and also the full potential the organization could actually achieve) then fine and all is good enough at your agency.  If there are cracks showing, so to speak, though - and you know better than I - then there are questions for your organization's leadership to consider and answer.

Then don't take my word for what I've insisted, in this post.  Look at the actual real world.

All of these concerns, cautions, and recommendations are modern day, professional, nonprofit, best practices, and (as I repeat in this blog) are so because they have repeatedly worked (for all kinds of different nonprofits, of different sizes, in different geographic locations, etc.).  Best practices come to be (by someone innovating and then sharing with colleagues at other nonprofits what works) and then these methods are repeated and become accepted because they provide a nonprofit with the best possible outcome, at the best possible savings, in the least amount of time, ethically.  They are tried and determined to work.  These are efficient success-generating practices (which I work to impart to my readers through this blog).

The following news items are cautionary tales (real world news items that are the red flag warnings in our society), and are fairly well known and some are famously so, now.  Here are a few that involve (in all instances) the nonprofit's leadership not making decisions for the organization based first and foremost on the agency's mission statement and its beneficiaries first which is exactly the same as putting an individual (the founder) first in decision making.  Two of these actually involve founders being asked to step down or being found in the wrong by overseeing government.  More to my point - all of these news stories feature prominent long standing nonprofits that by virtue of being such were operating for a while with a founder as a key leader (even operating successfully for a long time) but by not making decisions in the best interests of the mission and its goals first always, this still bit these organizations in their rumps.

Three Cups of Tea Author and Nonprofit Founder Determined To Have Mismanaged Org After Year Long Investigation

A Look At the Susan G. Komen Experience... and be sure to look at the news article, in this post, titled "Komen Founder to Step Down As Chief Executive"

Susan G. Komen Organization's Experience Is The Devil In the Details (for Us and Not Just Komen)

A Real World Example Demonstrating Why Nonprofit's Mission Statements Are More Important Than the Almighty Dollar

Lance Armstrong cuts formal ties to Livestrong 

Whether a nonprofit's leadership is willing to see and also acknowledge it or not, the organization's founder can be a real impetus to a nonprofit's capabilities or worse - its success and greater potential.  Seeing and acknowledging an issue is better than not.  We all know this to be true.  Too, the sooner this occurs the better for the nonprofit's organizational health but more importantly the better for an organization's beneficiaries and meeting their needs well (as demonstrated sadly well by Susan G. Komen's recent news (see above)).  It can't happen soon enough.

Having said what I have in this post - of course, most founders are qualified to play key roles in the organization.  My next blog post, The Roles A Nonprofit's Founder May Hold During the Life Cycle or Growth of the Organization is about what qualifications an organization should look for in each of its leadership roles, how a nonprofit can go about recruiting and finding the best possible candidates (which occasionally may be the founder), and which nonprofit roles a founder can best fill and at which stages of a nonprofit's lifetime.

What the Special Event or Events Fundraising Method Is, and How It Works

Half of my official job duties was administration of special events when I first began working in fundraising for the now defunct Multiple Sclerosis Association of King County (MSAKC).  (In late 2008 its board of directors voted to roll the MSAKC into the National Multiple Sclerosis Society's Seattle office's programs.  This decision ended a local nonprofit that had successfully provided direct services to Seattle-area people with MS and their loved ones for more than fifty years.)

A special event is a fundraising method that nonprofit organizations use to do several things at once.  It is an event or happening that should be enticing to the general public in order to acquire the most attendees or participants possible (and thereby both encourage the largest possible number of people among the general public to know about the nonprofit and to also participate and to give).  The event allows the nonprofit to raise funds.  The event is an opportunity for the organization to market its mission, achievements, and current programs and goals to the general public and increase its public relations.  A special event, too, should engender participants' genuine appreciation for the organization's work and its cause but too - they should feel good about having participated and frankly should genuinely enjoy themselves.  This, in part is how an organization retains dedicated attendees that participate year after year.

 The special event must be repeated once it is started.  It will typically not break even (expenses to put it on compared to amount raised) until approximately year three of conducting it consistently and will probably not make a profit until year four (but this can vary depending on the event's popularity or interest in it, the event's community, the attendees, and the location).  This is the case for almost any nonprofit and for any type of special event.  In other words, the loss in the initial two years of holding it must be expected and built into the organization's fundraising plan or development plan.

The special event raises more and more money each year it is held because it should retain past participants (at least 50% to 60% of them, year to year) and also bring new attendees each year.  It can either grow in number of attendees or participants, or the cost to attend might increase (if that is a cost effective choice to make and realistic), or sponsors may increase how much they pay for of the event as the event's popularity or notoriety grows over the years thereby lessening the amount the organization, itself, pays to hold the event year after year.  Ideally, all three of these things occur! 

Often, participants must register or buy tickets to attend, sometimes they raise funds in order to participate or invite colleagues or friends to join them at their table for dinner, etc. and then they actually attend the event.  None of these steps should be convoluted, difficult to conduct or submit/return to the organization, or annoying to those who sponsor the participant or come as guests with the participant to the event.  Customer service, at every stage of their experience with the nonprofit and its special event, provided to the participants and their donors, sponsors, or guests should be of the utmost priority, always - in order that attendees not only want to participate next year again, but so do those who hear about the event from them but have not yet participated, themselves.  This is the other part that ensures more participants return to attend year after year.  This may seem "obvious" but never assume that your organization's volunteers and staff know this or know how to be excellent at customer service.  Instead arm them with each and all with knowledge and train them.

[Warning: This paragraph's information is not to be taken in lieu of understanding all of your organization's overseeing governments' laws and rules about special event fees and donations and how to collect, account for, and report them.  Ask your organization's Certified Public Accountant for all of the pertinent information.] Participants will ask what their tax deductible contribution amount is, after paying to attend your event (and will ask for a receipt).  The IRS allows for the contribution (or deductible amount from their taxes) to be the difference between the cost of their attendance/and or participation minus the actual expenses to the nonprofit for everything they pay for that they will get at the event.  In other words, if we work for an organization providing a golf tournament and we charge golfers $250 per person to play in the tournament this is the cost of their participation or attendance.  We determine that the actual cost per person who golfs, at the event this year, comes to $150 (i.e. the golf course is charging our nonprofit $100 per player to hold the event at that golf course this year, and their food and beverages costs being charged to us for the entire event is $50 per player (i.e. for drinks and light appetizers during the tournament, and then a barbecue dinner with wine or beer afterward)) and there are no other direct costs to the nonprofit for that attendee, then the attendee is donating to the organization that remaining or additional $100 charged to him or her to participate.  The math is the total cost to the attendee less the actual costs for everything they will get at the event (that the organization pays for) is the contribution amount (in this example, $250 - $150 = $100).  That $100 is the tax free donation the organization is raising on top of the costs it is passing on to the participant in the participant's registration fee.  This $100 (in this example, or the difference between attendance fee and actual costs) is the amount allowed as a deduction to whomever pays for the attendee's participation.  If the golfer's employer pays for their registration then the employer gets the tax deduction.  If the golfer, him- or herself pays for it then they get the tax deduction (as long as their employer doesn't reimburse them because then the employer would being paying the donation and get the tax deduction).


The MSAKC held approximately four or five special events a year (and this was only part of the organization's total fundraising effort each year).  Two events were usually formal dinners.  One was a 'meet the author' event where a renowned author spoke at a formal dinner and the later answered questions and signed his or her book.  The other was usually an executive level (board members) dinner with some major donors, active volunteers, and key staff attending, as well and was sponsored by one of the major multiple sclerosis medication's pharmaceutical firms.  The other two events were sporting events.  One was an annual rollerblading race (around one of Seattle's scenic bodies of water in the summer) and the other was an annual golf tournament hosted by and entirely attended by professionals in various related industries to the construction industry in Seattle and her suburbs.

Special events require specific advanced planning in order for them to go off without a hitch.  Some nonprofits choose to hire special event planning firms or consultants to plan and/or implement their special events.  A nonprofit can hire a consultant (and this, of course, is an additional expense to the organization) but it is not necessary that a nonprofit hire an outside expert to plan and/or conduct its special event.  In fact, more money is saved if a nonprofit plans, implements, and conducts its own special events.  They become experts on how to do it.  Too, they create and then maintain the relationships directly with vendors, sponsors, and donors specific to the event over the years.  This is always invaluable to any nonprofit.  A direct relationship can (and often does) lead to: donor retention and dedication, participant retention (because of ease of attending and consistent professionalism and customer service in registering and actual participation), increased sponsor involvement (anything from sponsor's employees becoming chairs of the special event's planning committee to increased sponsorship contributions, and more marketing of the event within their corporate marketing, etc.), and vendors decreasing their fees to possibly even donating their products or services out of loyalty and support to the organization, its cause, and the popularity of the event (often, for example, in exchange for their logo being included in the event brochure, or on marketing or advertising for the event).  The involvement for sponsors usually has a lot to do with their own firm's marketing goals, but too, they wish to be seen as members of the community that contribute and give back.  Once they come to know your organization (especially if they work with the same volunteers or staff each year to help put the event on) getting their involvement and increasing how much they contribute is easy for them and your nonprofit year to year.

Special events should be planned out well in advance of their being implemented and then held.  It varies, but generally you will want to be planning out a never before held new special event at least a year and a half before the actual event's plan will be implemented (and this is before its held or conducted).  For a special event that has been held year to year, one may only need to begin planning for this year's version six months before marketing and then registration begins.  This too will vary depending on how experienced the committee chair is with the event, how well the event has been conducted in the recent past, and so on. The special event should have its own committee (ideally chaired by someone directly involved with the industry or issue the event pertains to so that they can easily call on colleagues and friends, etc. who will actually attend).  The committee should work well with the executive director and development or fundraising office (volunteers or staff) in order to plan and implement the special event.  Usually the committee conducts high level planning and operations (which leaders in the community will be asked to attend or get involved as sponsors or major donors; or the event is moving to a new larger venue this year and the committee selects it) but specifics are planned and administered by the nonprofit's fundraising staff or committee (i.e.booking the event location, acquiring the mid to lower range sponsors, registering participants, planning and ordering the brochures and marketing materials, etc.).

The special event must have clear and compelling (enticing, interesting, fun) marketing and public relations: made public WELL IN ADVANCE of the event and then ongoing until the day of the event, introducing the event, inviting the general public, and clearly explaining the when, where, who, how much, how, and why of the event.  Do not create an event that allows the organization to advertise it for only a week or two before registration begins or before the event itself.  That is not enough time to promote the event (which is part of what marketing and public relations does) but too, it isn't enough notice for people to squeeze something new into their social calendars.  Provide them with at least a month's notice of an event's date and details.  It seems like I'm overstating the obvious but you do not know how many professionally held events I've read about in which the organization simply directs the public interested in attending to some website to get the basic information!  A website address is not information in and of itself!  Read my last sentence, again.  A website can provide information (and should) but asking someone who hears about your event to then go to a website after hearing about it is foolish.  The public should not have to go somewhere (like a website) to get the basic information about your event, though, EVER.  You have their attention when they read or hear about your event, right then.  You should provide the when, where, who, how, how much, and why in every public relations and marketing piece pertaining to the event.  Never ask someone in the general public to go elsewhere, after you get their attention, for information.  Give it clearly and accurately to them, in the moment, right then and there, everywhere you discuss or advertise the event.  A website is fine for registration or additionally providing basic information but the front line is the second, the moment you have the general public's attention and that's when they see anything about the event like when they read the newspaper, see an ad in a local magazine, listen to local radio, see a poster in their local restaurant's waiting room, get your nonprofit's latest e-mail, get your newsletter, or go to your organization's website, etc.  Always give all of the basic information along with even the slightest mention of the event, itself.

The special event's plan clarifies for everyone involved the who, what, when, where, how, and why of each step in implementing and conducting the event including specific tasks, benchmarks, the entire timeline, the budget, intended outcomes, etc.  Too, each special event should ask participants to review the event in a quick survey and ask for suggestions or where improvements are needed.  The special event's entire team should do a Review and Wrap Up meeting after each iteration of the special event to review participants' feedback and suggestions, determine what worked, what needs improvement, what the improvements will be, how much was spent, how much was raised, etc.  This information should be used, year to year, to improve the entire special event and to increase participation and the participants' ease of attending and enjoyment of the event.

What should the brand new special event be that a nonprofit commits to beginning and then holding annually, thereafter?  It depends.  In the third paragraph, above, I stated about how many years it takes for a nonprofit to either break even or begin to regularly make money from the new event and that "...this can vary depending on the event's popularity or interest in it, the event's community, the attendees, and the location."  This has everything to do with what special event a nonprofit selects to implement.  For example, if a nonprofit chooses to do a special event that is being done to death, already in its town or community; or if it selects a special event that is not in line with local interests or taste; or if a nonprofit picks a special event that is too pricey to attend for its region's locals, or is too difficult to get to in order to participate, etc. then the organization's gotten in the way of its own opportunity and goal.  A nonprofit must think through and even do blind polls or community feedback gathering to determine what will work best.  Remember, your organization is committing to this new special event for probably at least five years to come if not more.  Some successfully special events have been held for more than fifty years.  You'll want to consider what is possible (scale and continuing to scale upward) for your organization to do, that too entices the most participation from the general public, for the least cost to the organization, that results in the most valuable experience for the participant.  Take time to study and determine findings because it will help your organization go in the right direction for success, but too, cost less over time, and be more popular and interesting or fun.

Bottom line - the special event is a fundraising method but it's more than that.  It's truly an opportunity for the nonprofit, the beneficiaries of its work, and the general public.  A well planned and executed special event: entices the general public because it sounds fun or interesting; is easy for the general public to attend because everything required of them is clear, easy, and quick to do; both provides them with the clear message that by participating they are partnering in your nonprofit's mission success but also doesn't hammer them over the head about the organization's cause or needs; engenders the general public's care and support of the organization and its work; and raises funds.  The event should be so fun that they participant wants to attend again next year and tells a friend or two to do the same.  A special event allows the organization to interact with the general public directly (instead of only with its clientele, volunteers, and donors).  Volunteers and staff should enjoy themselves, but too, know their responsibilities and job, and how to provide excellent customer service at each step.  Well conducted special events are an opportunity for everyone to win.

There are many reputable resources that can help a nonprofit's leadership learn how to best plan and successfully implement and raise funds from special events.  If you look in my Amazon  Bookstore, above, in the middle right of this blog - you can search for books explaining the 'how to's' of special event in detail.  The books in my E Store are hand selected.  I picked each for its reputation in the nonprofit sector.  You can't go wrong.  If you locate a book you'd like to use there, but your organization can't afford to buy it - check with your local public library to see if they have it.  If they don't ask about them either acquiring it or if you can get it through inter-library loan.  One of these options usually allows the public to get a book the library doesn't have.

For Efficient But Effective Nonprofit Programs, Service, and Administration Like Fundraising - GIS Is A Tremendous Tool... And It's Free...

Technological innovations are continually offering nonprofits, whether they know about them or not, advanced, simpler to use, faster solutions for their unique needs.  For example, this past Thursday I attended nonprofit tech software and solution providers, TechSoup's webinar, "Mapping Your Impact" for nonprofits which was in part hosted by Geographic Information System (GIS) software and hardware industry leader's ESRI . ESRI's Nonprofit Organization Program account executive, David Gadsden, spoke.

Geographic Information Systems or GIS is computer software that allows a user to "...visualize, question, analyze, interpret, and understand data to reveal relationships, patterns, and trends." ( http://www.esri.com/what-is-gis/index.html )  You can imagine, if you have not used GIS for your nonprofit how it could be a powerful tool to plan, know in real time, and assess so much, including providing solutions to disseminate information and referrals, or to, in real time, currently and efficiently inform: programs' planning and evaluations, strategic planning, fundraising, beneficiaries' needs assessments, accounting or budgeting transparency for donor reporting and relationships, services management, even volunteer management, and more.  Data sets (depending on the user's needs and goals) are layered over maps and tied into real time data and allows for database connections, too.  As with any software system the results are a matter of "garbage in garbage out" or not - but assuming that an organization has on- the-ball volunteers and staff (who are well trained and continually supported by superiors as continuing education or modernizing tech infrastructure are needed) the quality of the nonprofit's data entry is likely not an issue.

Andrew Schroeder, the Director of Research and Analysis at Direct Relief International spoke during the webinar about how his nonprofit uses GIS, and specifically ESRI's Arc GIS product to: discover the specific needs that exists, in real time, in the places around the globe that Direct Relief Int'l provides emergency assistance; to survey program partners and beneficiaries to inform Direct Relief Int'l's programs designs; asset tracking; for rapid assessment in emergencies; programs' and services' effectiveness assessment; to track where service partners (i.e. FEMA, American Red Cross, local, state, and other federal agencies, etc.)  are during emergencies (in real time and live on actual maps including, for instance, where emergency evacuation routes are and whether their clinics are located on then evacuation routes); and discerning what assets the partners have on the ground (to avoid redundancy and to be efficient while being effective, overall).  Specific to fundraising, he mentioned in his presentation that Direct Relief Int'l also uses GIS to provide budgeting/spending transparency to their donors and potential donors in both reporting/donor relationship development and solicitations (in real time, visually).

ESRI's Nonprofit Organization Program currently offers a free GIS software program called ArcGIS Online that anyone can use for free.  It provides two gigabytes of storage per user; hundreds of hundreds of maps that your organization's information can be laid over as you need, including maps containing the most recent demographics information from the most recent federal census, for example (if you click on the ArcGIS Online link, above, and look at the "Featured Maps" at the bottom of the web page, you'll see even more of what maps or data sets are available); cloud computing and storage (so your organization does not need to find space on its server, for example, to store maps which can be large data files); and free tutorials and demonstrations to explain both how to use the free GIS and also how to do any number of technical operations you may choose to add information to your maps.  All of this is the free version of ESRI's GIS (and they are always adding new maps and data sets).

The caveat of using the free GIS is that it will have ESRI's branding on maps (which is a tiny price to pay).  If an organization wishes, though, to have the paid package (or variations or combinations of their offerings as needed) including applying one's organization's own branding on maps, etc. and extended storage beyond two gigabytes, among other benefits and support - you can currently purchase GIS software and/or hardware for nonprofits through ESRI, directly, and the nonprofit discount is 50% the retail price for their offerings and solutions.

Technically, today, GIS involves less hardware (compared to even the recent past) because so much data (i.e. nonprofit clientele information, donor information, and required maps) can be stored in the cloud, rather than on a network server.  ESRI is proactively planning for its cloud storage (as it's more and more commonly used in all industries) so it offers cloud computing and storage solutions in its total GIS service offerings, as of just the past couple of years.  It considers this entire package, enterprise GIS as it offers not just cloud storage computing and solutions but too, online, desktop, server, mobile, developer, and other solutions.

Gadsden, for example, shared in the webinar his recent experience of working with one of ESRI's nonprofit clients in Africa where they were ground-truthing (verifying) the nonprofit's client's needs have been met and feeding the data, as they walked around the village and spoke to people, in real time, up to the organization's database (in the cloud - even though the organization's offices are in the United States) using cell phones and an iPad (because they could access the Internet from the village as they walked around).  The data they collected then immediately renders in the organization's client database (as they chose to do) and also, in real time, on the organization's map of Africa.  Both of these tied into the client's GIS.

ESRI, Gadsden explained in the webinar, is in the process of working with TechSoup to provide ESRI's full GIS solutions (part of the enterprise offerings listed above or the total package, as needed) to nonprofits at a discount.  This arrangement has not yet (as of this date) been finalized but is expected to be available through TechSoup in the near future.  Check with TechSoup to see if they are now offering ESRI's products, if you are interested in more information.  For now, ESRI offers nonprofits GIS solutions at half off the retail prices.

If you would like to hear and see the webinar I attended (and see, too, the Power Point presentation that was given with it) for free, click on Webinar Archive: Mapping Your Impact   It is an hour long and a great introduction to what GIS can do for nonprofit organizations, specifically.

What's The Trick Nonprofits Successfully Raising Funds, Even In This Economy Use to Create Their Success? Planning. All About The Development Plan That Works...

A Development Plan, Fund Development Plan, or Fundraising Plan is the same thing and enables nonprofits to raise funds in order to ensure cash flow for operations - to fund their missions and programs.  In order to raise funds effectively and operate efficiently (especially in this economy) nonprofits plan out their coming fundraising or development work.  I will refer to this plan, herein, as a development plan.

You and I know that the key to a nonprofit's effectiveness is its ability to successfully deliver its mission goal to the community, through its programs and services, and to achieve positive outcomes based on the current as yet (mission-related) unmet needs of the organization's beneficiaries.  Part of that success, deep in a nonprofit's operations, is a nonprofit's ability to raise funds today and also tomorrow effectively in order to afford the programs, services, and overhead.  As I caution organizations to save, budget, and spend less in this blog, I've written "especially in this economy" or "especially today" a lot since 2007 and the economic downturn, but the fact is a nonprofit (like any business) is never in the clear to spend money unwisely, of course - so the real key to whether a nonprofit succeeds and survives to serve another day isn't just its programs achievements; its leadership's experience, knowledge, and oversight; but too, its ability to operate tomorrow is also based on the organization leaders' ability to be efficient in its budgeting, spending, and savings (today or in any economy).

The number one tool any nonprofit leader has to accomplish true efficiency is planning and that includes planning out the nonprofit's fundraising for the coming year or two (depending on the organization's preference). 

An effective development plan raises the necessary funds to cover all expenses or anticipated necessary cash for the coming year (or two, depending on what amount of time the organization wishes the development plan to cover).  An excellent development plan will plan to raise funds for the time period's anticipated expenses, savings goals, an unforeseen possible financial emergency, etc.  All of this is based on finalized organizational planning and budgeting having already been completed before the development plan (for the coming time period) is begun.  If an organization takes the time to have planned programs, services, and overhead (including staffing, rent, utilities, etc.) and their budgets, this will allow leadership to plan for the most realistic future.  Less money will be spent, less time will be wasted and so the more realistic the information is that the plan is based on, the more efficient the spending, and time taken.

Like any operational planning, development plans come in all different styles, formats, and frankly abilities to serve a nonprofit well or not. Formats, styles, and even implementations may vary, nonprofit to nonprofit, but the effective development plan (no matter differences) contain certain common features.

Effective development plans are born out of real data.  For the time period outlined by the organization (i.e. a one or two year development plan) the best data to inform a successful development plan comes from:
__ Organizational strategic plan,

__ Anticipated programs' and services' plans or designs and budgets,

__ Overhead planning and budgeting (or forecasted organizational operating budgets) including the fundraising plan (or fundraising volunteers', staff, and department's budget),

__ A reasonable sense of the coming regional and national economies (using reputable recent regional and national studies or forecasts),

__ The organization's donors' track record and preferences (look for local donors studies' outcomes such as feasibility studies conducted by similar organizations and analyze your organization's own donors' responses and preferences over the past year),

__ The organization's own fundraisers' skill and knowledge (it's alright to have novice or inexperienced board members but they must be trained and expected to become effective leaders in a relatively quick manner, alongside the rest of the board),

__ The staffing plan, the timeline or schedule (including anticipated benchmarks and expected accomplishments by each),

__ And the 'on the ground' logistics (locations as pertinent).

A lot of this may sound like rushing out to the local library's Reference Desk for recent studies, or sticking one's finger up in the wind to take a temperature and it is a bit of both but a development plan that really works well is more.

The more quantifiable defensible data that goes into a development plan and the process of creating the plan the better the plan will be.  What do I mean with such mathematical gibberish?  I mean - you either inform your organization's plan to raise funds successfully for tomorrow, the next month, and during the course of the next year with garbage or factual information, likely patterns, and pretty damn on-point educated guesses.  One gets your organization there successfully and without unnecessary expense and the other might result in a stapled pile of papers or a *.doc file but will be worthless and frankly, a waste of your volunteers' or staff's time.  We know that no one is a swami or able to see the future.   No nonprofit's leadership is.  But some nonprofits - many nonprofits - are pretty damn good at raising funds, even in this tight and harsh economy.  How do they do it?  Through planning but too, in using realistic and real information to inform their organization future operations, like fundraising among others.

Each nonprofit is its own unique 'being' with its own unique donors, clients, and communities.  So, some of the best sources of quantifiable data (whatever is being claimed in the data can actually be measured by another party should they wish to check your organization's claims or the data you're using to assert that claim) and defensible data (the data being used is based on real need or your nonprofit's clients actual demographics and service statistics which will demonstrate the actual need in the community that your organization is providing a solution for) is at your organization's fingertips. It goes without saying that the more current or recent the data sets, the better.

Evaluation methods built in to each of your organization's programs and services are not only excellent tools to help raise more funds and retain donors - evaluation methods' tabulated responses happen to also be excellent sets of data for a nonprofit's strategic planning, for example, but too - its development plan!  Right there you have information not about some people in your organization's region or some subset of the local community but rather YOUR ORGANIZATION'S own beneficiaries - its clients and their specific demographics, needs, and experiences.

Similarly, donor/donations analysis is actual real data about your organization's lifeblood - its support, its donors.

Your nearby public library, some government agencies (from federal to state, local, and even nearby Tribal governments) and certainly other nonprofits often provide recent studies' findings (and sometimes even their raw data sets) for free.  Always be sure to keep relevant and also succinct when reporting or selecting data to use.  These agencies may providing any of the following pertinent information: economic forecasts, the donor climate, communities' needs, communities' demographics, regional politics, trends, population growth, etc.

The development plan should also include the following information after the pertinent data is used to inform the plan:

The timeline should be clearly defined and then throughout the plan, it should be accounted for entirely.

Build a process for the development plan to be carried out through.  This may include: regular meetings, reports, follow up meetings at the end of major benchmarks, trainings, and even the utilization of online cloud solutions such as Google, Wikis, etc.to allow for trainings, meetings, communication, documentation, etc. as deemed necessary.

Identify viable fundraising methods including those conducted annually and new ones.  Make a plan for each (staff, necessary infrastructure or software, printing, event planning, intended participants, how it will be funded, etc.).  If your organization conducts special events, then create a unique individual plan for each special event, too.  State the amount anticipated to be raised by each method, into each fundraising method's plan.  Plan outreach, solicitation, networking, marketing, ongoing donor relations, donor retention, and public relations into each fundraising method's plan.  Create a budget for each. Build an evaluation method and process into each.  New fundraising methods should include a long term plan as it often takes them three to five years of consecutively being held before one breaks even or turns a profit.  Research any new fundraising methods to be sure your organization understands what they typically cost, who typically attends them, what they raise from the first year through the time they begin to break even or raise more funds than they cost and when that is, etc.

Plan out, for each fundraising method, who will be targeted as potential donors (current and new).  It is not necessary, for instance, that you have a complete list of all of the foundations your organization will approach for its fundraising for next year (your grant writer will do that and the more current the prospecting for a grant donor is the more likely your organization's chances of success).  It is effective to list, though, how donors will be targeted or identified for each specific unique fundraising method.  For example: Grant Writing - traditional best practices prospecting; Major Donors - individual donor analysis and research; Special Events - continuing X, Y, and Z annual events and adding Q, and R new events raising funds from: corporate sponsors, participants' registration fees, and get the venue and meals donated and/or sponsored.  Whatever the targeted donors are - they must be realistic and actually viable contributors.  In other words - don't list potential donors that you hope or think will contribute.  If necessary, conduct your own feasibility studies to determine what the current economy and thinking will actually produce for a newly implemented fundraising method.  Knowledge based in facts is the best insurance for the organization's future.

All staff and teams or committees should be clear about what their specific tasks and responsibilities are, what their timeline and benchmarks are, and what resources are available to them.  Everyone should understand who they report to, what they need to report, how they report to them, and how often they report.  They should be supported and enabled rather than micromanaged.  Trust talented, expert, successful volunteers and staff.  Allow people to be successful by delegating responsibilities to them, educating, and trusting them, and providing them with what they need in order to be successful.

As with all other organizational programs, the development plan should have an evaluation method built into it to assess what is working, what is going well, and what needs improvement based (yes... you guessed it) on real actual outcomes (i.e. donations analysis, various methods' success rates and response rates, donors' feedback such as anonymous donor surveys, major donors' suggestions or comments, etc.). Remember, always, that identifying proactively where improvements are needed is your organization's responsibility, is cheaper, is better off discovered by your own organization than by the press or public (for your organization's reputation), is less expensive in the long run, and an opportunity.  Finding where improvements are needed should not result in a punishment or fuming.  Rather, it should be expected.  Anticipate that at a minimum, things change and your organization will need to adapt.  But too, people make mistakes and that's just how it is.  That's not to be faulted but rather anticipated and keeping a proactive eye out for them is cost effective.  Expect them and allow the organization to be nimble enough to make improvements.  There is no organization that operates perfectly.  What the lessons that have been that have been recently learned is actually something that forward thinking grant donors, for instance, often ask for at the end of grants from grant recipients, not to condemn or berate them (!) but to learn lessons themselves (for future grant recipients' benefit) but too, to ascertain how well the grant recipient monitors its own programs and evaluations and what it does about what it finds (such as where improvements are needed).  They ascertain which grant recipients operate their organizations such that they would want to give to that nonprofit again.

Finally, build into the development plan where and how any of the planned fundraising methods, anticipated amounts raised for each, and anticipated expenses.  In other words, if some fundraisers are actual formal events - these require in their event planning renting perhaps a restaurant, a ballroom, or a specific venue.  That will require booking it, etc.  Too, obviously, it will involve either having the location's rental cost donated to your organization, paid for by one of the event's sponsors, or your organization paying for the location.  I am using the venue as an example here to discuss event planning, and venues are only one small part of event planning.  But, it demonstrates my point.

To learn more about what a development plan is, how to create an effective one, or to answer any questions you may have I strongly recommend:

The Foundation Center's free, interactive, online training Introduction to Fundraising Planning course (which allows you to go at your own pace)

6 Steps To A Fundraising Plan For A New Nonprofit by Joanne Fritz, PhD Guide to About.com Nonprofit Charitable Orgs

Nonprofit Quarterly's What Should Your Fund Development Plan Include?

My Amazon Store (in the middle right hand side of this blog) lists books considered standards in the profession, and have been hand selected by me, as such.  If you locate a book that looks helpful but can't afford it, note its title and author and see if your local public library has it.  If it doesn't, ask a librarian for it through either the library's purchasing program or its inter-library loan program.

And as always, please feel free to comment on this post with questions or suggestions that I have missed herein.