5 Donor Problems For Nonprofits

Nonprofits exist to solve problems. Yet as many nonprofit managers will attest, they are much happier solving problems that exist outside the organization. One thing is for sure: Any organization that has problems with its donors has problems.

Wayne Elsey, founder and CEO of Soles4Souls, wrote in his book "Almost Isn't Good Enough" that there are at least five issues that nonprofits encounter from donors. Solving these problems, Elsey wrote, can help an organization increase its footprint and success.

The five problems are:

• “I can’t find you online.” Update the Website every 30 days (or 10). Hire or contract with someone who knows digital Web design. “If I can’t find you on Google, then you don’t exist.”
• “I don’t understand what you do.” A good rule of thumb is if you can’t recite the mission of your organization, then you have no hope of spreading the message and funding your work.
• “It’s difficult to get more information.” Donors want to know something about the organization before they are asked their vital statistics, including address.
• “It’s impossible for me to get involved beyond giving money.” Leaders should be asking how they can get more people involved so they can see the pain in the lives of those in need.
• “I never hear from you except when you want me to give.” A relationship based on one party asking and the other giving isn’t much of a relationship.

5 Techniques To Safeguard Your Technology

The Internet is a useful place for nonprofits to be, but it can also be a veritable danger zone for your technology. If you aren’t careful, you could find yourself on the receiving end of a malicious virus that could severely hamper all the hard work your organization has done.

Luckily, there are plenty of ways to keep your information out of harm's way before you dive into the web.

In the book "Nonprofit Management 101," Holly Ross, executive director at the Drupal Association in Portland, Ore., encouraged nonprofit managers to take the security of your devices seriously. She recommended the following five techniques to keep your operation running smoothly:

• Firewall: This is basically a gate between the outside world and your network of computers. It’s essential that you have a firewall set up to keep spammers, hackers, and other malicious people from infiltrating your network to use it for nefarious purposes.
• Antivirus protection: Antivirus software should be installed on each of the computers on your network. Worms and viruses continue to be written every day, so it’s essential that you purchase the regular update packages for whichever program you choose to use.
• Backup: Most people view backing up as insurance for extreme situations such as natural disasters, but the backup is most important in many day-to-day situations.
• Passwords: The simplest thing you can do to protect your organization’s data and files is to put in place a strong password policy. Ensure that staff are both using different passwords for logins and changing their passwords frequently.
• Physical security: Equipment like laptops, printers, and desktop computers should be secured to desks with cable locks so they can’t be removed.

Is Your Nonprofit Truly Philanthropic?

Most nonprofit managers, if asked, would answer "yes" if they were asked whether their organization truly embodied the culture of philanthropy. But does it really?

To fully answer this question, you must first clarify what makes up a philanthropic culture. During the Association of Fundraising Professionals’ 50^th International Conference on Fundraising, representatives of the Osborne Group, a management, consulting and training firm, defined a culture of philanthropy and stewardship as follows: Everyone within the organization, including recipients of services and their families, and the board of directors, understands, embraces, believes in and acts on the person’s roles and responsibilities in philanthropy and stewardship in a collaborative and donor-centric manner.

With this definition in mind, the speakers listed six ways to create a philanthropic culture at your nonprofit:

• Organizational vision provides the urgency for change. A great organization and a successful fundraising operation begin with a clear and compelling mission and an aspirational and urgent vision undergirded with shared, stated values.
• Change requires a vision as well. Imagining the organization or institution once it achieves the culture of philanthropy and stewardship paints a picture all constituencies can grasp.
• Start with champions and modeling behavior. These champions serve as guiding lights.
• Wow the team. It is hard to make others feel great about giving and participating if the proposed change agent feels beleaguered or under-appreciated.
• You need a plan. A vision without a plan is just a pipedream.
• Institutionalize the new changes. Document the new policies and procedures. Reward and celebrate success.

4 Questions To Ask About Web Technology

Though some would like to believe otherwise, there is simply no way to run a successful nonprofit or business in today's world without being at least familiar with online technology. There are many questions managers will have but, according to experts speaking at this year's Bridge Conference, they should start with their organization's website.

Speaking at the New York City-based conference, representatives of Big Duck and the Environmental Defense Fund said that website technology is an important component of maintaining a good site and keeping it effective.

Getting the most of this technology, the representatives said, means answering specific questions regarding your current web hosting. They said that if the organization cannot give a definitive yes answer to the questions, then it is time to re-evaluate the content management and constituent management systems (CMS and CRM) and to consider alternatives.

The questions you should ask are:

• Does the organization have a way to track actions such as donations, open rates and event sign-ups?
• Is there enough support for the system that there is confidence it will be around for the long term?
• Does the site’s publishing system make it easy for staff to update content?
• Does the site have the tools and functions to meet organization goals and those of the organization’s audience?

4 'ObamaCare' Actions To Take Now

Many of the provisions of the Affordable Care Act -- so-called ObamaCare -- will be going to affect in the coming year. Despite its potential benefits for Americans, the law does pose some issues for employers. 

During the AICPA Not-for-Profit Industry Conference, Eddie Adkins of Grant Thornton and Cheryl Press of Tax Exempt and Government Entities (TEGE) at the Internal Revenue Service (IRS) discussed how employee benefits and compensation are affected by healthcare reform, particularly when it comes to full-time and part-time employees. They reminded listeners that the IRS has rules defining exactly who is and who is not a full-time employee, and those rules are complex.

What can nonprofits do to prepare for these regulations? Adkins and Press said that action should be take now, not later. Specifically, they recommended taking the following steps:

• Take time to thoroughly understand the details in the regulations. With complexity comes the chance of misunderstanding or misinterpreting. A few details could make a difference. 
• Convene a meeting of all stakeholders, including individuals responsible for health plans inside and outside the organization. This includes the employee benefits director, the insurance broker and legal counsel.
• Discuss the details of the rules and how they apply to the organization, and identify changes that might be necessary to avoid mandated excise taxes. 
• Follow through with proper implementation.

4 Kinds Of Bequests

The standard definition of a bequest is a planned gift that ranges from the simple (money) to the extravagant (a house) that is made through a will. Yet while all bequests share the same definition, they are not all created equal.

Nonprofits received more than $23.41 billion in bequests according to the most recent edition of Giving USA. All of those gifts came in different forms and, as Elizabeth Ziemba, J.D., M.P.H. wrote in her book "The Complete Idiot's Guide to Giving Back," it’s important for fundraising officers to clearly understand their differences.

Ziemba noted that there are four distinct types of bequests that can be made in a will. All of these can be mixed and matched in the donor’s will, depending on giving goals. The four types are:

• Pecuniary Bequest: A gift of a fixed or stated sum of money designated in a donor’s will.
• Specific Bequest: A gift of a designated or specific item in the will. The item will most likely be sold by the organization and the proceeds would benefit that nonprofit.
• Residuary Bequest: A gift of all or a portion of the remainder of the donor’s assets after all other bequests have been made as well as debts and taxes paid.
• Contingent Bequest: A gift in a will made on the condition of a certain event that may or may not happen. A contingent bequest is specific and fails if the condition is not made.

6 Tips For Your eNewsletter Campaigns

eNewsletters are an easier and cheaper alternative to print for keeping people in the loop about the latest happenings at the organization. Just because this technology is convenient, however, doesn't mean it's free of potential pitfalls.

People hate unwanted online communications just as much as telemarketers, and anti-SPAM rules have made sending eNewsletters to your supporters into an art form. If you don’t do it correctly you could find yourself in trouble and blocked.

Kivi Leroux Miller, president of NonprofitMarketingGuide.com, wrote in the book "Nonprofit Management 101" that there are a multitude of ways to ensure your organization gets its message across through eNewsletters while also remaining in compliance. She wrote that you should begin by following these six dos and don'ts:

• DO use an email service provider. You can’t do bulk email from your desktop for a variety of reasons, including the potential you’ll be labeled as a spammer.
• DO let your readers talk back. If someone replies to your eNewsletter, make sure it goes to an email box that someone is monitoring.
• DO master the art of subject line writing. The “From” field and the “Subject” line determine whether your email gets opened or deleted. Ensure what’s in the “from” field is recognizable to the reader and what’s in the subject line is interesting, intriguing, or otherwise compelling to your readers.
• DO master the art of headline writing. People naturally skim email, starting with headlines and subheads, so you want to grab their attention.
• DON’T send attachments, including PDFs of your print newsletter.
• DON’T rent or sell your e-mail list, and let your subscribers know that’s the case.

11 Ways To Get Your Employees To Meetings

What are the first words that come to your mind when you are called into a meeting? If you are like most employees, they are probably "boring," "waste of time," or other similar terms. Yet for all of the negatives, meetings can be quite fruitful.

Talia Y. Leman, in "A Random Book About the Power of Anyone," wrote that there are ways for nonprofit managers to make employees dread meeting less. Some of the ideas come from Ben Hirschfeld of the Lit! Solar Lantern Project, and others are Leman’s own:

• Remember the win/win. Find out what makes individuals tick and help them understand how participating will help them;
• Get on their calendars. Give advance notice, and send reminders;
• Make attendance matter. Prepare agendas to harness the value others bring;
• Make their role matter. Having significant roles with official titles helps them see their contribution as a priority;
• Make it fit. Match people with jobs that fit their skills and interests;
• Make it simple. Break down actions that forward team goals into manageable steps with clear completion dates;
• Double-team mission-critical tasks. Adding a backup or co-leader can make a difference in making people comfortable and getting the job done;
• Take care of the team. Snacks and meals can be helpful, as are practical details about locations, etc.;
• Keep it moving. Respect people’s time;
• Keep everyone in the loop. People like to be part of a winning team; and,
• Build team spirit and show appreciation. Even a simple “thank you” matters.

4 Important But Basic Financial Statements

Executives and board members alike generally don't get much joy from financial reporting. They would rather focus on how to best fulfill their organization's mission yet, in order for that to become a reality, the fact of the matter is that these sometimes tedious tasks are a necessary part of any nonprofit.

As Marci Thomas and Kim Strom-Gottfried explained in their book "The Best of Boards," all nonprofits have at least three or four financial statements that must be completed if the organization is to meet federal and state regulations. These statements, which must be read together to have a complete picture of the organization, were described by Thomas and Strom-Gottfried:

• Statement of Financial Position: Also known as a balance sheet, this statement reports the organization’s assets, liabilities, and net assets at a specific point in time (usually at the end of the organization’s fiscal year).
• Statement of Activities: This statement reports the results of operations (revenues and expenses) and change in net assets for the year.
• Statement of Cash Flows: This statement provides information about the cash receipts and disbursements of the organization that result from operating activities, financing activities, and investing activities.
• Statement of Functional Expenses: This statement provides information about the organization’s expenses by function and by natural classification.

3 Ways To Analyze Data

Prospecting for donors has some similarities to what the Gold Rush prospectors did in the the 19th century. Back then, it was enough to shake a pan of gravel in the water and look for what nuggets stayed behind.

Fundraisers are doing the same thing now when combing through data, but it's no longer good enough to use that old-fashioned approach.

Prospecting is a much more sophisticated process these days and, according to Helen E. Brown, Jennifer Filla and Debbie Sokolov, it can pay much bigger dividends than before. Speaking during the AFP 50^th International Conference on Fundraising, they said that fundraising can be improved through prospect research, and that consists of three main components: data analytics, relationship management and donor research.

Looking more closely, they are:

• Data analytics. This includes electronic screenings, data mining, donor modeling and graphing. It helps identify new prospects, segments donors and prospects quickly and efficiently, and, illustrates division/department/individual progress toward goals.
• Relationship management. This means prospect tracking. It makes sure no potential major donor gets lost between the cracks, measures activities to show the board and donors how close the organization is to its goals, and, provides continuity with donors even though staff changes.
• Donor research. This gives the organization the confidence to ask for a stretch gift, finds the links between donors, prospects and the organization, allows the organization to set up a personalized strategy around each major gift prospect, and, keeps the organization current on public events in a prospect’s world.

Professional Development Guide 2013: Don't Rest On Your Laurels

What makes a nonprofit successful? More often than not, it's a strong leadership team that is willing to make the tough decisions. This makes it easy for managers to rest on their laurels but, if they are not careful, that one-time strength can quickly disappear.

The NonProfit Times' Professional Development Guide, which appears in the newly released June 1 issue, is a white pages for services that will help potential nonprofit leaders hone their skills. From nonprofit management degrees at leading universities to leadership seminars, organizations should consider all of these services for their employees so there are worthy successors when it comes time to pick a new CEO or executive director.

There are other things nonprofits can do to develop new leaders. In the Bridgespan Group's Plan A: How

Successful Nonprofits Develop Their Future Leaders, Kirk Kramer and Preeta Nayak detailed five steps that can be taken that will get your organization on the path to a brighter future. Those steps are:

• Engage Your Senior Leaders: If you are a CEO just launching your leadership development efforts, begin by telling your senior team that it is important that they develop as individuals and that you’ll help each of them to do so.
• Understand Your Future Needs: Gather your senior team for a once-a-year offsite meeting to discuss where your organization is going and the potential of their direct reports to move into more senior roles.
• Develop Your Future Leaders: Meet twice a year with each of your direct reports to discuss their progress against their leadership development goals.
• Hire Externally to Fill Gaps:Identify the areas where you will likely need to hire externally to meet your future needs and those where you should aim to build capacity from within.
• Monitor and Improve Your Practices: Set targets for accomplishing the work of the previous items on this list. Next, report on your organization’s progress against those targets to your senior team and the board. Finally, determine leadership development priorities for the coming year.

Follow these steps and check out NPT's Professional Development Guide, and your nonprofit will be on the path to a more sustainable future.

5 "Murphy's Law" Scenarios For Your Special Event

Murphy's Law dictates that anything that can go wrong will go wrong. Veteran special event planners swear by this rule, which is why they are always prepared for the worst possible scenario for their events. Paranoid? Maybe, but you can't argue they aren't being careful enough.

Special events inherently have an element of risk involved, explained Organic Events Founder Marika Holmgren in “Nonprofit Management 101.” While she wrote that there is no foolproof way to predict what issues will arise, that doesn't mean planners shouldn't prepare for every single scenario possible.

Holmgren identified five of the most impactful worst-case scenarios and suggested reviewing these and others to identify what needs to be done in each case and how to reduce the risk and liability of the organization:

• Event income or registration does not meet your goals, financial or otherwise;
• Natural disasters (hurricane, earthquake, etc.);
• Hotel strikes and boycotts;
• A key team member or event planner leaves the project; or,
• A keynote speakers falls through.

Can You Fire A Volunteer?

Everyone knows a nonprofit can fire an employee for not doing a good job, but is it possible to fire a volunteer? According to Susan J. Ellis, a consultant specializing in volunteerism and a frequent contributor to The NonProfit Times, it is entirely appropriate given the right circumstances.

There is a belief among some nonprofit managers that they just can't fire a volunteer. According to Ellis, this stems from three mistaken attitudes:

• Thinking that the threat of punishment is the best way of getting good work;
• Thinking that available punishment guarantees prevention of unwanted behavior; and,
• Failure to understand why volunteers work without salary.

While it is appropriate to fire an under-performing volunteer, it should not be the first option. Ellis recommended trying these positive steps before resorting to discipline or dismissal:

• Careful screening of volunteers when they apply is essential, as it would be for employees. This includes clarification of expectations, on both sides, even if this means writing a letter spelling out the purpose of the volunteer work, anticipated outcomes or products, lengths of commitment and other key mutual decisions.
• Both employees and volunteers deserve full instructions — training, on how to do their work the best way.
• Motivate through approval. Managing through rewards and recognition of work well done is always more effective.
• Finally, understand that it is possible to terminate a volunteer. This is actually not as difficult as many nonprofit managers think. Remember, the manager has a legal right to designate who will be an agent of the organization, paid or not.

5 Ways To Keep In Touch With Monthly Giving Donors

Your work is done just because you got a donor to join your monthly giving program. Far from it; in fact, as fundraising consultant Pamela Grow explains, your work is just beginning.

Grow says that it's up to you as a fundraising professional to make sure your monthly donors are made to feel special. As a member of an exclusive club, these individuals are going to be expecting world-class treatment. One of the best ways to accomplish this is to keep in constant contact with them.

In her e-book, "The Lifetime Donor Attraction System," Grow shared five tips on how to keep in contact with your monthly donors:

• Don’t stop communicating. Keep sending emails, as well as offers to upgrade their monthly commitments. These donors are also excellent prospects for planned giving, having demonstrated dedication to your nonprofit.
• Send monthly donors special versions of your regular communications. Make sure they reference the donor’s membership in your monthly giving program.
• Give them special opportunities, such as events, guided tours and access to your organization’s executives. Make sure they know the opportunity is exclusive to monthly givers.
• Send special thank-yous. Think about including premiums in your thank-you correspondence with monthly donors.
• Don’t neglect your regular correspondence. Follow up if a monthly sustainer’s renewal lapses or if she suspends payments.

10 Fundraising Rules For Managers

Nonprofit managers often have to wear multiple hats if their organization's mission is to succeed. One of those roles requires them to chip in on the fundraising side of the operation.

The word "fundraising" can make any executive start to sweat, but it doesn't have to be that way. Susan Black of Allene Professional Fundraising shares these 10 rules in her white paper, “Ten Rules to fundraise By.”

• People give to people. A gift officer needs to win a donor’s trust so he or she knows the donation is in good hands.
• Know your story, then articulate it. It’s the gift officer’s job to translate the organization’s impact into relatable, digestible bits of information.
• Have a plan. Your organization needs both a strategic and a fundraising plan.
• Get out of the office. Connect with donors face-to-face.
• Identify, cultivate, ask and than, then do it again. Your work doesn’t stop with the first gift; turn your donors into advocates for your organization and they’ll be more valuable, both monetarily and otherwise.
• Remember, you are brilliant. Recognize how important your work is, and have confidence that you can get the job done.
• Your only job with volunteers is to make them successful. Volunteers want to feel useful, be managed, feel appreciated, have an impact and share your success. Your volunteer management plan must take their needs into account.
• If it’s not in the database, it didn’t happen. Recordkeeping is of vital importance.
• It’s not about you. It’s about the donor. Practice donor-centered fundraising, and always be aware of the donor experience.
• Measure it. Start with the end in mind, consider all the costs, and create success metrics before you have to use them, not after.

5 Steps To A Nonprofit Pilot Program

Does your nonprofit have an interesting idea that hasn't yet been tested? Before you throw caution to the wind and test your idea in real-world conditions, it's a good idea to run it as a pilot program first to iron out any potential problems.

Alex Neuhoff and Andrew Belton in their report, “Putting Clients at the Center: A Planning Guide for Multi-Service Organizations,” produced by The Bridgespan Group, outlines five questions to ask when designing a pilot program:

• Where and how will you start? Do you want to focus on a specific client base, or specific region? If you plan to narrowly focus the pilot, be sure you’ll be able to generalize the results across your organization.
• How will you evaluate the pilot? Look at process, program activities and outcomes. Decide if you want a more comprehensive (and expensive) outside evaluation, or if you’ll do it in-house.
• How much will the pilot cost? The cost usually comes out to additional costs of your approach, investments in infrastructure, and management of the pilot. You can break these down into one-time “setup” costs and ongoing costs related to the new program.
• How will you pay for it? Will you chase additional grants or pay for it from your financial reserves, or a combination of the two?
• How do you use what you’ve learned? What challenges and unforeseen developments have the pilot uncovered? How do you scale up the pilot to an organization-wide program?

The Donor Research Checklist For Small Nonprofits

What's the best way to ensure a successful fundraising campaign? Some would argue that donor research should be on the top of that list, and they would have a point. More information about donors means your fundraisers will have a better idea about how to approach them.

While large nonprofits usually have full-time researcher on-staff, it can be a little bit harder for smaller organizations to find room in their budget for donor research. That's why Ann Rosenfield, executive director of The WoodGreen Foundation, offered some tips to help these organizations reap the benefits of this research without breaking the bank. 

She wrote the following checklist in the Winter 2013 edition of Advancing Philanthropy:

• Hire a researcher, even if just for a while: This will enable managers to focus on the technical aspects of fundraising while research crunches the numbers.
• Pay for a research database service: This allows for quick look-ups of prospective donors recommended by the board, events, and potential board members.
• Remember that information on foundations is free: This information is easily accessible online on such sites as Foundation Center.
• If possible, use data analytics: This allows the organization to see how analytics work and keep track of these findings on a spreadsheet.
• Identify new prospects: Having a researcher means being able to seek out new prospective clients who will give.
• Don’t forget that the organization’s small size is actually a strength: The small size of is an asset in that it allows research to be done on a more personal level.

9 Ways To Measure Nonprofit Data

We live in a society where it's easy to be overwhelmed by data. It seems as if there are statistics about virtually everything, making it hard to figure out which numbers are actually important. Nonprofits are among the groups that are gathering more data  than ever, but not all of them are using the information they gather, or are not using it as well as they can.

Beth Kanter and Katie Delahaye Paine wrote in their book, "Measuring the Networked Nonprofit," that it is more important to evaluate impact than to gather and store numbers. They offered nine suggestions on how organizations can get the most out of the statistics they gather:

• “Likes” on Facebook is not a victory. Social change is a victory. Proper measurement keeps organizations focused on results rather than the tools they use.
• Measurement helps nonprofits understand and improve their social networks. It helps them listen to and engage with constituents.
• Measurement means data for decisions, not for data’s sake. It isn’t numbers to dump on the board’s desk.
• Measurement makes an organization plan for success. Measurement leads to smarter investments and smarter use of those investments.
• Good measurement is good governance. Credible evaluation reports and demonstrations of impact are crucial.
• Data without insight is just trivia.
• Measuring failure is part of the path to success. If an experiment bombs or a great idea isn’t really so great, learn from it, and learn why it happened.
• Incremental success is no failure. Victories often come in baby steps.
• Measurement is valuable at every level of functioning.

7 Dos And Don'ts For Nonprofit Technology

Nonprofits have embraced technology, but that doesn't mean they have all done so with open arms. It's this factor that will determine whether or not your organization will have success with the various new devices and software available.

Holly Ross, former executive director of the Nonprofit Technology Network (NTEN) in Portland, Ore., and now head of the Drupal Association, set out a list of Dos and Don’ts to make dealing with technology much easier:

Do:

• Let mission and strategy be the guides when making technology decisions.
• Establish strong systems. Staff can’t get mission-critical work done if they have to reboot the system every half-hour.
• Plan. A crystal ball isn’t necessary to plan for technology needs.
• Evaluate continuously. Learning from experience isn’t possible without stopping to reflect from time to time.

Don't:

• Make technology decisions based solely on cost. It is only one factor in determining the value and expense of technology.
• Forget to include staff in technology decisions. Allies will be needed while new systems are being implemented.
• Select mission-critical software such as a donor database without first documenting key business processes.

4 Reasons Your Nonprofit Isn't Having Fundraising Success

Fundraising can be considered a game of chance. Sometimes you win; sometimes you lose. If your nonprofit is losing much more often than winning, however, there could be something wrong with the way you are playing the game.

In the book "Five Good Ideas,"  Ross McGregor, former CEO of Ketchum Canada, lists some of the more common reasons nonprofits don't experience more fundraising success. One of the practices he most highly recommends avoiding is to hire a fundraising consultant to ask for support on your behalf. These individuals should instead be used, McGregor said, to help shape your overall fundraising strategy.

McGregor also listed four other mistakes organizations make in their fundraising practices:

• They don’t ask;
• They don’t make fundraising a priority;
• They hope that their good work will automatically attract financial support; and,
• They fear rejection.