Like the President, I’m preparing for an Inaugural! How Exciting!

The inaugural session of my Do-Good Chat is just a week away. I am so excited by the amount of interest and the questions! What is the “Chat”? It’s a monthly teleseminar for people who are currently taking action toward their vision of a better world through service in the nonprofit sector or who are just getting started. I address your pressing questions and provide information related to starting, operating and sustaining a nonprofit organization. The content of each discussion will be completely determined by participant questions!

The idea to do the “Chat” simply popped in my head one day when I was answering one of the many “quick” questions I receive by email and social networking site. I have found that many people have the same questions. So instead of answering each person individually, the Chat will allow people to hear answers to their questions and those of others.

Each call will begin with answers to questions submitted in advance, followed by (as time permits) additional questions and comments from participants. Here are a few examples of the questions I’ve received thus far:

·         I am in the planning stages for my nonprofit and I’d like some tips on how to recruit board members.

·         I have been doing lots of volunteer work at my son’s school and could use some fresh ideas on how to manage volunteers and events.

·         I just started my nonprofit and we don’t have 501(c)3 status yet, does that mean we cannot ask for grants and donations?

 Have you registered for the FREE Inaugural Do-Good Chat? Space is limited, so don’t delay!

Click here to register.

Funder Site Visit: 8 Tips for a Successful Introduction

 

I recently arranged for a nonprofit to have an introductory site visit from a prospective funder. When the staff first heard the news, they cheered with excitement. But quickly the big grins on their faces were replaced with looks of sheer panic. They had never had a site visit from a prospective funder.  I was soon bombarded with:

 

 

“How do we prepare?”

“What are we supposed to do?”

“What will they want to hear?”

“Who’s going to ask them for the money?”

 

They were all great questions. But before I answered any of them, I reminded the staff of a very important fact: They were going to be visited by people.

Yes, funders are people, too. They just happen to be people who have money to support organizations engaged in work that aligns with their priorities. And since they are already supporting other organizations whose work align well with their priorities, you had better make the best of any introductory site visit.

Here are 8 tips for a successful introductory site visit:

1. Clean your home. Have you ever been invited to someone’s home and arrived to find it a mess? How did you feel? Well, that’s it exactly how a funder will feel if they arrive to your office and it’s not clean, organized and inviting.

2. Everyone in the organization should be aware of the visit. Though there may be only one program or service that aligns well with the funder’s priorities, this is an introduction to the organization. Every member of your “family” should be informed well in advance about the visit and prepared to answer any questions they may be asked about themselves, their work and your organization’s beneficiaries.

3. Greet your visitors at the door. Ideally the Executive Director and/or Development Director will greet your guests promptly when they arrive. This would be a great time for them to tour your offices.

4. Be hospitable. Serve refreshments. If it’s winter, you might offer coffee, tea and pastries. If its summer, you might offer iced tea and fresh fruit. Your visitors don’t expect a spread, so don’t go overboard. You want them to be impressed by your work, not your local bakery.

5. Have a written agenda. There should be a formal agenda outlining the flow of the discussion. Though you may be tempted to jump right into talking about your organization and the work you do, remember this visit is as much an opportunity to learn about the funder as it is for the funder to learn about you. Give your guests an opportunity to introduce the Foundation, its mission and priorities. You will likely learn information not available on their website.

6. Don’t overload your guests with materials. Provide each representative with a packet of materials related to your history, mission, programs, etc. Less is more. It is better to package the materials together and give them out all at once than to distribute them individually during the meeting.

7. Keep it concise, relaxed and relevant. Develop key talking points but don't be scripted. The discussion should flow as a friendly conversation. Avoid giving speeches. Think about the funder’s interests as you consider what to share (i.e., success stories, recent accomplishments, what you hope to accomplish).

As you prepare your talking points, keep these guidelines in mind:

· The funder doesn’t know your organization. They will likely have questions that start with who, what, when, why and how.

· Succinctly emphasize successes and challenges. Try not to speak for more than 3 minutes at a time without a break.

· If at all possible, avoid acronyms. If you must use them, be sure to define them first. Using acronyms unknown to your guests will leave them and the point you are trying to make lost in alphabet soup.

· Don’t lecture (no PowerPoint presentations). You want to have a conversation so your guests can get to know you. Allow your guests to ask questions.
 

DO NOT ASK FOR ANY MONEY! This is an introduction. Unless your guests bring it up, there should be no discussion of money during the site visit.

Keep in mind, no two funders are alike and no two site visits will be alike. Be sure you structure each site visit to the prospective funder.

 

Are you preparing for a site visit from a prospect funder? I’d love to hear about it!

P.S. - The nonprofit had a great site visit. In fact, they were invited to submit a formal request for support!

 

 

 

Measurable Impact: A Sustainability Requirement for Nonprofits

Without a doubt, nonprofits are run by passionate people committed to their cause. But many of these passionate people believe something that isn't true. They believe the impact of their work is obvious to themselves, their donors and the broader community. They mistake activity for impact. In fact, for many years major donors would accept activity as a demonstration of impact.

For example, a human service nonprofit would report a 20% increase in clients served. Both they and their donors would accept the increase in clients served as greater impact. But the activity (serving clients) is an output and not an outcome.

Outputs include things like number of workshops held, number of volunteers trained, field work completed, houses built, etc. While outcomes demonstrate the impact of the nonprofit’s work in terms of measurable and lasting effect. In other words, outputs are how you get to outcomes (impact).

 

Output-focused funding is generally a thing of the past. Today's donors are outcome-focused.

Nonprofits that follow an outcome-focused approach will:

• have greater impact,
• demonstrate their impact quantitatively,
• secure more support, and
• experience sustainability and growth. 

The outcome-focused organizations determine anticipated outcomes for each program and service and develop methodologies for tracking activates and gathering data that measures impact toward the anticipated outcomes.

Steve Mariotti, founder of Network for Teaching Entrepreneurship, offers great tips for measuring impact in his two-part article: Is Your Nonprofit Making an Impact? Prove It!

Check out The Word Woman Facebook page for more nonprofit tips, webinars, workshops, grant opportunities, and more!

 

Is Paper Chasing Your New Mission?

We’ve all heard it said, “Money is the root of all evil.” And if that is true, I guess it is also one of those “necessary evils” we also hear about.

Money is a necessary means for getting what we need and what we want. Though nonprofits are not in the business to “make a profit” but to “do good”, doing good requires money. And it could be argued that the more money that an organization has, the more good it can do.

I wouldn’t argue with that statement, but for some nonprofits, the mission (the good they seek to do) gets lost in their pursuit of the funds they need to accomplish the good.  

For some nonprofits, the recent recession has resulted in a shift in mission. Instead of focusing their efforts on effective and efficient programs and services that further their missions and seeking funding that that aligns well with their missions, they are focused on paper chasing – going after money anywhere they can find it – with the hope that they can “make it fit”.

A few years back, rapper-turned-business man Percy Robert Miller (aka Master P) released Paper Chasing. I’m no expert on the song, but no one has to be an expert to get the point. Here’s the chorus:

I gotta gets the money
Gotta gets the money cause I needs the cash cash, c'mon geah
I gotta gets the money
Gotta gets the money cause I needs the cash cash, c'mon geah
You know I need the money
Gotta get the money cause I needs the cash cash c'mon
You know I need the money
Gotta get the money cause I needs the cash cash

For a rapper turned business man, this attitude works. But for nonprofits, fundraising has to be about more than “paper chasing”.  

The Association of Fundraising Professionals offers a wealth of information and resources for ethical and effective fundraising.

Board Membership -- A Commitment Not To Be Taken Lightly

This has been a busy week, but not too busy to focus on a topic very important to me – board membership. I recently completely the Associated Black Charities Board Pipeline, a leadership development project designed to develop a pipeline of professionals from racially under-represented communities to serve on boards in the Baltimore metropolitan area. Since completing the training, I have been seeking board membership opportunities. This week, a national nonprofit dedicated to raising the visibility of domestic violence in the same way as breast cancer awareness, Saving Promise, expressed interest in me joining their board. I had an hour-long telephone conversation speaking with L.Y. Marlow, the founder of Saving Promise. Being our first conversation (I applied via a volunteer recruitment website), she detailed the history, mission, vision and future plans for the organization. Our discussion was candid and full of questions and answers (from the both of us). Though we both agreed that I will likely be a good fit, we also agreed to meet in person and exchange further information before either of us would make a decision.

Board membership is not something to be taken lightly--by the prospective board member or the organization. A nonprofit board has responsibility for taking care that the organization's mission is achieved by ensuring that the programs and services are effective in furthering the mission; ensuring adequate financial resources; and protecting the organization's assets and legal standing. With so much as stake, nonprofits should have a structured process for selecting board members. Additionally, prospects should know exactly what will be required of them before making the commitment.

Today, I read an interesting article regarding nonprofit boards in New Hampshire. The article, New Hampshire Bill Requires Board Training for Nonprofits, discusses a recent NH Senate bill that passed—requiring at least one member of each nonprofit board to go through training sessions emphasizing fiscal management and ethics. There is a lot of controversy regarding the bill, particularly because of the expense nonprofits will have to incur to satisfy the requirement; however, I can appreciate the sentiment. Over my many years in the nonprofit sector, I have seen first-hand far too many nonprofits with poorly performing boards. Boards comprised of members “in name only” to members with passion but lacking the technical skills the board needs.  

Nonprofits need to be organized and intentional when recruiting and selecting board members. Here are a few tips for board member recruitment:

 

1.      Internal Assessment - Nonprofits should complete an internal assessment before recruitment begins. Know what skills are needed so that you can target your recruiting. Although raising financial resources is important, nonprofits should not target people solely for their deep pockets and/or connections. But if someone with the skills and attributes you need just happens to have deep pockets and connections -- win, win!

 

2.      Membership Application & Interview – The board member selection process should be very similar to the hiring process. Have prospects complete an application. The application should ask them to detail their qualifications, interests, and the skills they wish to utilize as a board member. This information will help the selection committee (yes, you should have one) to determine if the prospect has and wishes to use the skills your board needs. Much like in the hiring process, the prospect should be interviewed. He or she should meet with, at a minimum, the Board Chair and Executive Director. Other members of the board that serve on the selection committee should also have the opportunity to meet with and assess the prospect’s qualifications for joining the board.

3.       Explanation of Expectations – Ideally, the board should have position descriptions for all members of the board. The prospect should receive a copy of the position description for which he is being considered (i.e., Treasurer, Member-At-Large) as well as organizational documents (i.e., Bylaws, Articles of Incorporation, and the most recent financials (Form 990 will do)). The selection committee should make clear what the prospect would be expected to do as a member (i.e., meeting attendance, personal contribution, fundraising).

A strong board is critical to the sustainability of any organization. I recognize that recruiting the “right people” can be a challenge, but it is a challenge worth giving the extra effort. A number of nonprofits have learned the hard way. Aloof board members did not see and, therefore did not prepare, for a budget crisis that had been looming for months. Disengaged board members refuse to pitch-in, do not promote the organization, and have poor attendance. “Lifer” board members have long-lost their passion for the mission and organization years ago but for whatever reason feel compelled to stay on. People who will be energized and active can be found, but the worse offense of them all is bringing the energized person on to work with aloof, disengaged lifers.

BoardSource offers a wealth of information and resources on board development.