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Are Professional Fundraising Associations Worth It?

5/19/2014

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Guest Blog Post by DeAnn Acosta

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As a fundraiser, there are countless demands on your day – are you maximizing the time you spend with your top donors, how is that grant proposal coming, are the plans for the next special event where they need to be today, is your direct mail appeal ready to mail, and why aren’t your board members do more fundraising themselves?

Those demands can overshadow an important tool for your success in fundraising: a professional association.  There are a variety of associations you can join for building a collegial and supportive network, including Association of Fundraising Professionals and The Giving Institute, and then there are industry-specific associations such as the Association for Healthcare Philanthropy.  Colleagues in these forums can offer you advice, a shoulder to cry on, and three cheers for your wildly successful endeavors.  They understand exactly what you do in your job, like no one else.

You know how it is: people ask what you do, you tell them you're a fundraiser, and either there's a blank look or they head for the hills, afraid you're going to ask them for money! But when I first joined my fundraising association, I was delighted to find myself surrounded by people who knew much more than I did about the fundraising profession, and I didn't have to explain that it goes way beyond bake sales. I met people deeply engaged in and committed their work and who were curious about mine.

The professional association that I have belonged to for almost 20 years is the Association of Fundraising Professionals (AFP).  My first fundraising job was at the Eleanor Roosevelt Institute, and I had the fortune to work for someone who believed in the value of professional associations, especially AFP.  She supported my attending the monthly educational meetings and had the organization pay my membership dues.  She even endorsed my scholarship application for the annual AFP International Conference, which I attended in Los Angeles as a junior fundraiser.

As a member of AFP, I took the opportunity to learn from the more seasoned professionals I met and cultivated several informal mentorships.  I enjoyed being part of the group and was proud to be a member of an association that promoted ethical fundraising and continuing education to make us better at our jobs.  About five years after becoming a member and volunteering on a few committees, I was nominated to join the board.  It was an honor (and not a little bit frightening) to think that I was joining the ranks of these committed professionals.  It has turned out to be one of the most rewarding experiences of my professional life.

Now I am serving as the Executive Director for the AFP Colorado Chapter, and I’m excited to be playing such a pivotal role with the organization.  It’s a thrill to work on my favorite event of the year, National Philanthropy Day.  The award winners' stories are so inspiring and remind me why I do this work.  I also have the privilege to work on a premier conference, the Rocky Mountain Philanthropy Institute, held in Vail, Colorado in September.  This conference provides a venue full of networking and excellent educational offerings, all in a fabulous scenic location.  The local chapter of AFP also provides a formal mentorship program and countless volunteer opportunities to give back to the profession.

If you haven’t already, I highly recommend that you consider joining a professional organization like AFP to find like-minded colleagues and build your network.  I truly believe that I’ve reached this place in my career because of my experience with AFP.  Hopefully, your employer will support you in joining an association like it, giving you time to attend their educational sessions and paying your annual dues. It’s worth every penny! And if you choose to join AFP, please introduce yourself to me at one of our educational sessions so that I can help you take advantage of all that AFP has to offer.  


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AFP is the leading professional association for individuals responsible for generating philanthropic support for a wide variety of nonprofit organizations. The Association advances philanthropy through its more than 30,000 members in 230 chapters throughout North America. Since 1960, AFP has inspired global change and supported efforts that generated over $1 trillion, with members raising more than $100 billion annually. This is equivalent to one-third of all charitable giving in North America and millions more around the world. The International Headquarters is located in Arlington, Virginia. Check out their video.

DeAnn Acosta, Certified Fund Raising Executive (CFRE), is the Principal Consultant at Mosaic Fundraising and is the Executive Director of the Association of Fundraising Professionals/Colorado Chapter.







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No More Excuses:  Using Data to Achieve Excellence

1/9/2013

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Guest Blog Post

by Sheri Chaney Jones

“That is what every nonprofit needs, but can’t afford.
”         
 
This was said to me by a nonprofit director when I was describing that my organization helps nonprofits measure and communicate their impact and value. She is not alone. Many nonprofit leaders incorrectly perceive program evaluation and data-driven decision making as a luxury they cannot afford.  

My new acquaintance is correct that every nonprofit needs to be engaged in program and outcome measurement. Organizations with high measurement cultures systematically collect and use a variety of data to manage operations and demonstrate effectiveness. Organizations with high measurement cultures are significantly more likely to report increases in positive press, funding, efficiency, staff morale and organizational change.  

The nonprofit director was also correct that a perception exists among nonprofit leaders that they cannot afford measurement activities. This perception prevents organizations from engaging in these critical tools. Although eighty-one percent of nonprofit leaders surveyed by the Center for Effective Philanthropy believe nonprofits should demonstrate the effectiveness of their work through performance measures, our research reveals that only 32% of nonprofits are fully embracing a high measurement culture. Lack of funding and resources are often cited as the main obstacles.

There is good news. This perception is a myth!  No correlation exists between organizations successfully using data to demonstrate effectiveness and a nonprofit’s budget and size. In other words, there are several small nonprofits excelling at program evaluation and then there are very large organizations not using or collecting the required data.

How nonprofits demonstrate and communicate effectiveness is a predictor of organizational success. Demonstrating impact is becoming increasingly more important as funders shift toward outcomes-based funding. Nonprofits excelling because of their data-driven practices go beyond using performance measures and outcomes data as an external reporting tool. They have the right measures, organizational structures, and leadership in place to systematically use these data to manage programs, make improvements, and demonstrate their unique impact and value. 

Greatness starts with the commitment of an organization’s leader to move from having data to achieving excellence with data.  Here are three distinct features that separate the “great” from the “good enough.”

1.     Defining Success:  Great organizations measure success based on the distinct impact they are making and the effectiveness of their services delivered relative to their resources. In addition to measuring participants served, money raised, and activities performed, they measure outcomes -- the extent their programs and services have changed lives and circumstances for their participants, stakeholders, and communities.  
  
2.    Leadership:  Great nonprofit leaders never take their eyes off the mission. They lead with humility and passion for the mission and do whatever it takes (ethically) to fully realize this mission. They align their measures with this mission. Great leaders use these measures to make course corrections when results are less desirable. Data are also used to celebrate success when desired targets are met.  
  
3.     Culture:  Great organizations consistently strive for a high-performance culture with a foundation built on performance and outcome measures. They do this by hiring and retaining the right people for their organizations. They understand that talent can compensate for lack of resources, but money never compensates for lack of the right people. To keep the right people, they create systems based on data, learning, feedback and autonomy. These elements encourage, motivate and reward their high-achieving, positive, self-motivated team members. They avoid the “doing more with less” syndrome by seeking the right people and creating the right data-driven systems that naturally produce more with less.  
  
Great nonprofits let go of the excuse that performance and outcome measurement are “too expensive”. Instead they ask,  "How can we achieve our desired impact and excellence?" Measurement is an essential tool that helps nonprofits achieve greatness regardless of organizational size and budget.  

The first step toward excellence is to create and use success measures. Once this commitment is made, organizations find the resources needed to successfully engage in the activities. Those who are successful know that performance measurement is achievable, can fit within their budget, can be done with their own staff, and will lead to positive results!

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Sheri Chaney Jones, President of Measurement Resources Company, improves the social sector through the use of measurement, evaluation, and organizational development.  For more measurement tips, download Sheri’s free eBook, Ten Tips to Open the Door to More Grants (and Other Funding).  Overcoming Common Mistakes in Outcomes Measurement.

Measurement Resources helps organizations successfully collect, organize, and use impactful data so they can fully achieve their missions.  Clients save public dollars, demonstrate effectiveness, and increase revenues as a result of working with Measurement Resources.

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The Possibilities of the Boardroom

11/14/2012

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Guest Blog Post

By Trish Thomas

Inspiring action, igniting change, networking and giving back to the community… these are common incentives driving individuals to serve on non-profit boards. 
 
As a participant on many non-profit boards and advisory boards, I consider my service to be a much more powerful asset than my money.  But before you step out to join a board or recruit new members for an existing board, it is critical that you understand your obligations and the key factors that foster highly-successful boards.

Because non-profit board members are not compensated and profits aren’t the primary goal, it’s easy to believe that board
service is a pleasant endeavor that will let you contribute to your passion and make new friends.  But board seats are a deep responsibility and a job that requires serious care and attention. 

Beyond the general duties of care and loyalty, the immense possibilities of a non-profit board are unleashed by assembling the
right mix of members and ensuring that they work together in the boardroom. Here are some organizational and personal characteristics to consider as you build a board or select a board to join:

Choose people who understand and advocate for the mission.  One of the key tasks of boards is to build community awareness and raise the stature of the organization.  Directors are not equipped to do this if they don’t align with the cause at a deep, personal level.

Don’t overload the board.  Determine a manageable number of individuals that will be active and contribute in tangible ways.  Not every large donor should be given a seat on the board.  Advisory boards or founders committees can be a great way to honor and leverage friends of the organization without wasting board seats.  I find that boards of ten or less can overwhelm members with work, but huge boards make it hard to hold fair and complete discussions in meetings.  Find the right size for maximum effectiveness and fill seats wisely.

Be sure the board has the right goal in mind. Some boards need to be "working" boards with all members volunteering significant time.  Some boards need to raise funds through sponsored events and capital campaigns, so they need directors with fat checkbooks.  And some boards may be focused on capacity building or improving governance.  The focus of each board should be driven by the organization’s needs.

Every solid board needs to have financial acumen built in.  There should be financially astute members who are knowledgeable and willing to serve on finance and audit committees.  But beyond that, every single director should understand how to read financial statements, ask hard questions, and be fully engaged in financial and strategic planning.

Find board members who are eager to participate within the organization. Money is great, and every board member should give annually, but it is more important that energy, connections and expertise are on the table.  Willingness to take the time and effort to understand strategic, financial and operational issues, engage personally with the staff and activities, and stay current on sound governance principles are all ingredients for success.

Build diversity into the board.  A wide range of individuals of varying genders, ancestry, incomes, ages and levels of connection to the organization are crucial. Blending experienced directors with new additions to the boardroom helps  mix best practices with enthusiasm.  It is also helpful to have some people in the room who are neither large donors nor recipients of services because they bring external perspective.  In my service as the chair of The Women’s Wilderness Institute board, one of our primary champions on the board is male.  Gary is deeply committed to the cause and his unique ideas and skills are pivotal to the board performing well.  A board with all female directors would not serve the organization as well as a gender-balanced board.

Understand each board member’s drivers and ensure that they are coming to the board for the right reasons. If everyone’s
objectives are clear from day one, the board will have a stronger and more effective dynamic than if directors’ interests are at odds and taint the board.  For example, if a member is on the staff of another non-profit and hopes to see the two organizations
partner, that is fine. But the entire board needs to be aware of their intention up front to preserve transparency and goodwill.

Collegiality matters!  I’ve seen stellar people break down boards because they can’t work and play with others.  The ability to
collaborate well and show respect for the ideas and views of fellow board members and staff should be a highly prized trait on a board; as well as the understanding that boards operate as a body not as individuals. 
  
At a non-profit there is so much at stake!  For starters, the very cause of the organization is on the line, as is its survival.  That
is actually a higher ethical directive than just ensuring that a corporation’s bottom-line is trending up.  A non-profit board not only provides governance and safeguards the organization’s mission, the board also takes responsibility for capacity building, sustainability and fundraising.  
 
By treating board service as the valuable and serious commitment that it is, you can unlock the possibilities of the boardroom
and gather people in effort and equality to accomplish great things - ultimately making a powerful positive impact on your community and the world. 

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Trish Thomas, owner of Trish Thomas Consulting, LLC, holds a BS in Computer Information Systems and a MBA in Management & Strategy. An expert in fast track business growth, she has over 18 years of business management experience spanning a wide range of industries, as well as 11 years in ownership of private firms.

Trish currently serves on boards for the Better Business Bureau, the Deming Center for Entrepreneurship at CU Boulder, the University of Denver Women's College, The Womens Wilderness Institute, The Family Garden and The Other Side of Everest Educational Foundation.  She is a thought leader who delights in sharing knowledge, connections and inspiration, as well as acting as an innovator, optimist and protagonist who empowers people to change the world.

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Innovation from Collaboration

10/9/2012

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Guest Blog Post
By Marie Belew Wheatley

Colorado Ballet, based in Denver, is about to embark on a unique community education partnership to promote awareness of the dangers of intolerance and discrimination in our community. Along with Lead Partners, Anti-Defamation League, Mizel Museum and the University of Denver, scores of participating organizations and groups will promote human rights through literary, visual and performance art, education and public dialogue.  At this writing, more than 70 organizations have signed up to be community partners in Light/The Holocaust & Humanity Project.  

Light/The Holocaust & Humanity Project is a contemporary ballet based on the life of a Holocaust survivor, created by Stephen Mills, artistic director of Ballet Austin, where the work premiered in 2005.

Most nonprofit managers learn by necessity that we can accomplish more by working with others than by going it alone.  In a strained economy, when contributions become more scarce, particularly for arts and culture organizations, we look for innovative ways to engage others in collaborative efforts that result in a win for all involved. Light/The Holocaust & Humanity Project is an example of this kind of collaboration, positioning Colorado Ballet in the unlikely role of bringing together a broad spectrum of community organizations to rally around a purpose that we can all support. And an added bonus is exposure of the Ballet to groups and individuals who might never have had an interest in seeing a traditional ballet.

Using the arts as a springboard to convene an important community conversation about creating a safe, healthy, inclusive community, Light/The Holocaust & Humanity Project is a three-month endeavor designed to bring Coloradans together in a united front against indifference and prejudice. It is a broad collaboration that includes local arts organizations, human rights groups, schools and universities, museums, private companies, churches, synagogues, Jewish organizations, GLBT groups, women’s organizations, African American groups, and Latino organizations. These and many other institutions offer community events that address issues such as hate, bullying, discrimination, civil rights and equality.

Light/The Holocaust & Humanity Project
will begin with a launch event on January 14, 2013, the week prior to Martin Luther King Jr. Day, and run through Holocaust Remembrance Week, in mid-April, 2013. Governor John Hickenlooper and Mayor Michael B. Hancock are honorary chairs of the Light Project.

In addition to Colorado Ballet’s performances of a full-length contemporary ballet based on the life of a Holocaust survivor, community partners’ involvement will include the following: plays, music, opera, book club discussions, poetry and dramatic readings, visual art exhibits, films, museum exhibits, lectures, television documentaries, radio interviews, school programs on anti-bullying, faith-based initiatives on inclusiveness, and ongoing education programs on human rights. 
 
We believe that by leveraging the strengths and competencies of these scores of community organizations, we can create a powerful impact in school rooms, work sites, public gathering places and in homes. All communities include differences and inequities. This collaborative effort will move the needle on how we as individuals and groups accept and respond to those
differences and inequities.

Each Community Partner is being asked to set goals for the number of people they will reach with their program, initiative or activity. At the end of the project, we will report to the community how many groups participated, and how many people were reached with programs on tolerance and inclusivity. 
 
Light will be performed by Colorado Ballet March 29-31, 2013 at the University of Denver’s Newman Center, to music from five notable contemporary composers. For tickets go to: www.coloradoballet.org. Please visit www.coloradoballet.org/Light to see the list of Community Partners, learn how to become a Community Partner and/or to peruse the community calendar of events that will shine the spotlight on discrimination and celebrate the triumph of the human spirit during Light/The Holocaust & Humanity Project.

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Marie Belew Wheatley is Executive Director of Colorado Ballet. Marie served 16 years at American Red Cross and six years as President and CEO of American Humane Association. Marie earned her MBA at the University of Colorado and is an alumnus of Leadership Denver. Along with an established executive record, Marie also has an affinity for the arts, having served on the boards of the Junior Symphony Guild, Opera Colorado Guild, and the Denver Art Museum’s Alliance of Contemporary Art.

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What's the Best Reason for Reinventing Your Business Model?

9/25/2012

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Guest Blog Post

By Denise McMahan

Many of us recall David La Piana’s The Nonprofit Strategy Revolution, which pushed past our traditional notion of strategic planning and brought more time-sensitive, relevant thinking to the forefront. La Piana acknowledges that even while Revolution was being published, clients began to raise the common questions surrounding the economic and operational implications of strategic decisions. Specifically, how could they effectively connect their strategy with an execution plan that would truly grow the organization? Answering this question involved developing a rigorous methodology for connecting mission, strategy and execution. 
 
The methodology described in The Nonprofit Business Plan roots strategic decision making in a strong financial analysis. Known as
“DARE2Succeed,” the principles in the methodology have been repeatedly tested in La Piana’s consulting practice to ensure the book represents practical and workable approaches to improving your organization’s outcomes. I asked coauthor Lester Olmstead-Rose about the most common reasons for pursuing a new business model. I loved his answer so I’m sharing it with you.

McMahan
: You explain every nonprofit should engage in ongoing strategic planning but the “deeper dive” of business planning
depends upon your circumstances. What is the most common reason nonprofits should consider formulating a business model? 

Olmstead-Rose: The most common need for business planning is when you know or discover your business model is broken. An obvious example of this is when you can’t pay for what you are doing and you need to come up with a new approach to pay your bills. 
 
We had an executive director come to us who had a really descriptive phrase about why she wanted to enter into a strategy
development process followed by business planning. She said, “I can’t keep raising a million and spending a million!”Isn’t that what so many nonprofits do, living right on the edge all the time and under constant threat of collapse? It means their economic logic isn’t working; they haven’t created a good mechanism to pay for the extent of work they have taken on. But in considering a broken or
stressed business model, don’t forget it is not just a question of money. Any part of the scope of your program or organization may be challenged–for example, the population you serve has changed dramatically or your geographic reach is too big or too small.  
 
Beyond addressing a problem in the business model, business planning is also a great tool to use when thinking about  expansion. We get organizations coming to us saying, “We do this great work, now we want to take it to scale.” Business planning can identify the avenues for doing that and let you know if it’s viable, or if you’re going to lose your shirt and undermine the good you’re already doing. 
 
We’ve had an organization approach us that wanted to start a capital campaign to build new facilities and then use those new
facilities to both expand current programs and start new work. Business planning is a perfect approach for them to make sure they can sustain those programs in the long run.  


Denise McMahan is founder and publisher of CausePlanet, a thriving one-of-a-kind professional development website for busy nonprofit leaders who want to stay informed about essential reading through Page to Practice™ book summaries, author interviews and relevant discussion by peer contributors. Denise dedicated much of her early career to fundraising in academia and experiential education where she was twice recognized for innovation and model account, raising millions of dollars and surpassing client goals. McMahan equally enjoyed working on client side, coaching major gift volunteers and mobilizing unrestricted giving to reach unprecedented participation. In addition to overseeing CausePlanet, McMahan is a writer for nonprofit and corporate clients.

You can read the complete author interview with Olmstead-Rose and learn more about what’s inside The Nonprofit Business Plan: A Leader’s Guide to Creating a Successful Business Model by downloading a Page to Practice™ book summary at
CausePlanet.org. Download this book or dozens of other titles by visiting our summary store or subscribing to our summary library. Or try us out by printing a free sample.
 
Image credit,
AustinArtist, via iStockPhoto.com

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Capital Funding 2.0: The New Approach to Nonprofit Capital Projects

8/28/2012

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Guest Blog Post

By Cherie Kirschbaum

At some point in every nonprofit’s lifecycle, the organization reaches a point where its current facility no longer meets its needs. The organization may consider leasing new space, purchasing a new property, expanding or renovating, or building a new space. In the past, nonprofits thought the only way to finance the project was through a capital campaign. And, nonprofits in this situation typically embarked on a campaign feasibility study to see how much could be raised. 

The feasibility study conclusions typically became the sole instrument to guide leadership throughout planning for the capital project, placing the focus on what could be done for this amount of money.  This approach keeps nonprofits from assessing and addressing comprehensive facility requirements – both immediate and long-term. 

Today, progressive nonprofits approach capital projects by first determining what they need, then by developing a financial plan to fund the project. A financial plan allows nonprofits to develop a diversified approach for funding capital projects, and includes a variety of sources accepted by financial institutions, foundations and donors.

 There are five funding categories available to nonprofits for capital projects:
1. Public funding (local, state and federal)
2. Foundation funding (grants)
3. Bank financing (bonds or commercial loans)
4. Cash reserves
5. Capital campaign

While, each source has advantages and disadvantages, they are not mutually exclusive. Nonprofit capital projects can be funded using a combination of these methods. In many cases, a combined approach allows a nonprofit to leverage the investment among all stakeholder groups. A well developed project and financing plan will not only inspire confidence from potential funding sources, but also encourage participation in the project as an investment. 

Below are a few comments about each of these five funding categories:

Public Funding: While the process to apply for and receive public funding can be daunting, the amount of money that could be granted to the project is well worth the effort. These funding sources include Community Development Block Grants, HOME Funds and others. It is important for a nonprofit to understand the requirements that come with some of these funding sources, such as Davis Bacon Wage requirements or HUD Section 3 compliance. These requirements can have an impact on the cost and schedule of the project. 

Foundation Funding: Most nonprofits are aware of the private and community foundations in their area that provide capital grants. Foundations recognize their role in financing a well-conceived project for a nonprofit with a strong financial track record, qualified leadership and a committed Board of Directors.

Bank Financing: Bank financing can become a bridge between getting a project done now and completing a capital campaign. Some nonprofits may be able to continue to pay the debt service on a bank loan even after the capital campaign is complete. This category of financing is becoming more mainstream, and is frequently accepted by both nonprofit funders and the nonprofits themselves. 
 
Cash Reserves: A nonprofit’s cash on hand or endowment can provide the equity sometimes required by other funding sources, and can be replenished through a capital campaign.

Capital Campaign: Nonprofits that embark on a capital campaign, even in difficult economic times, can be very successful. A well conceived project and financial plan can help to leverage stakeholder support, while also deepening donor commitments. Campaigns can attract new donors, and elevate visibility within the community and beyond. 

Savvy nonprofits consider the full spectrum of funding sources available for capital projects. By doing so, these organizations are often able to open the doors to a new space without sacrificing elements necessary to best meet program needs. They are also able to engage, rather than exhaust, donors, foundations, and community partners in their long-term success.

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Cherie Kirschbaum, President and Founder of City Projects, Inc., is passionate about the power of real estate to affect social change. A recognized community leader, Cherie was named the Denver Business Journals 2011 Outstanding Women in Business and as a Women to Watch by Jewish Women International.

City Projects partners with nonprofits to plan, orchestrate and complete their real estate development projects to transform not only their space but their organization. City Projects’ project management guidance unlocks productivity, unleashes creativity and enhances capacity. City Projects has worked alongside public and private organizations including the Mental Health Center of Denver, Karis Community, Mile High Youth Corps, The GLBT Community Center of Colorado, Pikes Peak Hospice & Palliative Care and others to successfully conceptualize and complete real estate projects. The City Projects team integrates each client’s mission, programs, financing and fundraising strategies into the day-to-day requirements of the project. In addition, the team serves as a translator between the client’s staff, board and project team, facilitating communication and managing implementation through project completion.

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