Innovating Nonprofit Fundraising and Social Entrepreneurship: For Impact

November 6, 2009 | Nick Fellers

I believe 90% of the funding challenges organizations have are a function of

1. Not asking

2. Not being with the right prospects

3. Not having the right message (which usually makes number 1 much easier and makes number 2 much more apparent).

Message should be simple, fit on a napkin, clear, concise, compelling. That being said, I’m not sure I (Nick) have my own crystal clear napkin definition of MESSAGE is. In fact, when someone says they need help with their message I first ask them to define what they mean.

For the past year I’ve been referring to message as:

That, and only that, which a prospect needs to UNDERSTAND in order to say, “I totally get it!”

*And, if a qualified prospect, to also say, “I’m IN!”

Think about it. UNDERSTAND. Not:

• What you SAY
• What you PRINT
• What you put in a 10 page case statement.

If you can work with that definition then 99.9999% of those reading this can resolve their message (ultimately) to one of the following:

CHANGE LIVES
SAVE LIVES
IMPACT LIVES

If I, as your potential investor, could understand that I can SAVE LIVES then it’s game over. No longer about ‘fundraising’, no longer about ‘cultivation’, no longer about ‘asking for money’.

Common response from those too close to the issue: “It can’t be that simple.”

Yes it can.

Sometimes the ‘message derivative’ could be:

- ECONOMIC DEVELOPMENT
- TRANSFORMING EDUCATION
- ENDING CANCER

Again… all SIMPLE. These are all applications of SAVE LIVES. CHANGE LIVES. IMPACTING LIVES.

I don’t want to lose a very important word in the definition – UNDERSTAND.

So how do you make me UNDERSTAND?

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November 5, 2009 | Tom Suddes

How to Weigh In On the Healthcare Debate

I’m an entrepreneur. (French word for fool.) I was entrepreneur way before it was cool or hot. I have an entrepreneur’s attitude and an entrepreneur’s perspective. (Creative Destroyers, Opportunity Exploiters, Value Creators, Pathfinder Rule Breakers.)

This is not about politics. It’s about the classic dilemma of actually DEFINING THE PROBLEM.

From what I’ve read, nowhere in the four, five, ten different ‘bills’, with over 2,000 pages, is there anything about PREVENTIVE MEDICINE!

According to Alan Deutschman’s provocative Fast Company cover story in May of 2005 (which he turned in full-length book called Change or Die) the healthcare industry consumes almost $2 TRILLION A YEAR in the U.S. alone (15% of our gross domestic product).

80% of this healthcare spending budget is consumed by five behavioral issues: too much smoking, drinking, eating and stress… and not enough exercise.

We know the CAUSE of these health problems. We even know the SOLUTIONS. Read more

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November 4, 2009 | Nick Fellers

9 Types of Funding Pitches

Made a reference list this AM of some of the framing devices or pitch types I/we often use to rationalize the ASK. In an abridged form:

• The Gap: Using a gap number to justify the ASK.

o Tuition: Tuition is $6K, cost per student is $8K. Gap is $2K. Could ask someone to underwrite THE GAP for five students.

o Project: Receive federal grants to the tune of $45K/year for $60K/year program. Ask someone to fund the gap for three years = $15K/year or $45K ASK.

• Leverage: We need to raise X to generate 10X.

Note: Yesterday I was on the phone with an organization that needs to raise $5M to generate $1Billion. To make my point. They need to raise $5M to generate $1,000,000,000,000.

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November 4, 2009 | Tom Suddes

Simple Is Better

SIMPLE IS BETTER.

This is the lead of a cover story in the Money Section of USA Today last Wednesday, October 28th.

The second sentence says, “This could be 2010’s most powerful marketing mantra.”

Duh? You think? Simple is better? No kidding!

“2010 marketing will increasingly stress LESS AS MORE… as in fewer parts, additives or ingredients.”

The entire article really centers on the idea of offering products with the “fewest number of ingredients”.

I don’t know why this hit me so hard, but it just reinforces the whole concept of BUILD SIMPLE!

A Simple MESSAGE.
Simple MATH.
A Simple MODEL.
A Simple FUNDING PLAN.
A Simple PRESENTATION.

Yes, Dorothy, SIMPLE IS BETTER.

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November 4, 2009 | Tom Suddes

Where Are the (Social) Entrepreneurs When You Need Them?

I’ve been carrying around a quote from USA Today about Florida’s Statewide Nursing Shortage. The facts:

• Four of Florida’s public universities have turned away about half of qualified nursing applicants.

• An Associate Dean says they don’t have the resources or teachers to teach them.

• The quote: “It’s very difficult attracting people to academia.”

• Florida Center for Nursing reports that the state faces a “critical breakdown” in its healthcare system.

• Nurses qualified to teach can earn much more outside of the classroom… at $100,000/year.

• The universities are looking to hire faculty members for $45,000/year.

Here’s an entrepreneurial thought:

Pay qualified nurses $100,000/year (instead of the $45,000/year)… and generate millions more dollars in TUITION!

Duh?!

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November 3, 2009 | Tom Suddes

C-6 Your Message

I just did a great session with a YMCA in the Northwest. Did an after-dinner ‘keynote’ to the staff and volunteers to kick-off their 2010 Annual Operating Campaign. Spent a half-day visiting with three or four Y branches and then did a half-day staff training.

One of the Cool things that came out of these sessions was reminding the Y (and all of you) the POWER OF YOUR MESSAGE.

IF… your (BLUE) IMPACT drives your (GREEN) INCOME (which it does!)

THEN… you need to be able to Communicate the MESSAGE in a

CLEAR

CONCISE

COMPELLING

CONGRUENT

CERTAIN

CONSISENT

Massive ‘C’ alliteration with a guarantee from me that it will generate HUGE Commensurate Commitments!!!

CLEAR. Simple. Powerful. Visionary. Visual. (Easy to ’see’.) On a Napkin. (Pics definitely worth 1,000 words.

Message on a Napkin worth 10,000 words.) Do a Jack Nicholson and Tom Cruise in A Few Good Men. Make your message Crystal Clear
CONCISE. Again, simple. Tight. 3 Words. 6 Words Max. (Can you communicate your entire message in 6 words?)

*Einstein wrote the entire Theory of Relativity on 3 handwritten pages. Reduced it to 3 words. And then summarized it on the back of a napkin with 3 letters! Don’t tell me you can’t simplify your Message!

COMPELLING. It?s about the ‘WHY’. Your PURPOSE. Your DEFINITE CHIEF AIM, VISION, etc. Financial detail around Operating Expenses is not COMPELLING.

CONGRUENT. Message actually matches your Impact, what you do and why you do it. It?s authentic. It is what it is. Everybody is in alignment, agreement and harmony.

CERTAIN. You need to know with Certainty, within your heart and soul and every part of your brain and body, that what you are doing is right. Has purpose. Making an impact. With that Certainty comes Conviction. (Another great ‘C’ word!)

CONSISTENT. Simple test. Ask any 3 staff and any 3 volunteer leaders and any 3 people you serve to tell you WHAT you (the organization) does and WHY you (the organization) do it. Based on 30 years of testing this, I’m pretty confident you will get 18 different answers. (3 + 3 + 3 x 2)

Does your Message pass the C-6 test?

If not, Carpe Memento! Seize this moment and make this happen.

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November 2, 2009 | Tom Suddes

Help People Get What They Want!!!

Zig Ziglar is a God-like figure in Personal Development and Sales Training. He summarizes his entire philosophy, point of view and message as follows.

“To get what you want, help enough other people get what they want first.”

He’s all about ATTITUDE. So are we.

You need to believe that to “get what you want” (Make more IMPACT, have more INCOME to Fund Your Vision, etc.) you have to “help enough other people get what they want”:

It’s sometimes hard to put yourself in the INVESTOR’S proverbial shoes, but I believe they want:

• An Opportunity to Make A Difference

• A Chance to Move from Success to Significance (in Drucker’s words)

• A Meaningful Way to HELP You Achieve Your Impact

To get what you WANT… help other people get what they WANT!

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November 2, 2009 | Nick Fellers

Announcing: Board Workshops

At workshops and boot camps the number one comment on our feedback forms is: “I wish I could share this with my board.”

We’re launching a new way to address this feedback: The For Impact Board Workshop.

What is it?

A focused session, led by a For Impact field coach, with your board+senior staff to do the following:

Cover the For Impact Point of View / Framework.
Get everyone ‘on board’ with a Funding Road Map.
- Thinking Big/Thinking Different… about what a Quantum Leap would mean!
- Simplifying a funding process
- Learning how to simplify a message for the organization
- Ideas for Prospects and Prospect Strategies
- How to build a relationship-based development model.
Develop a simple/clear strategy and action plan for near-term and long-term funding results.

How does it work?

A For Impact field coach will lead your organization through a brief discovery process to make the most of the session.
Coach comes on site to facilitate the workshop.
Board members received materials, training and work to build the funding road map for your organization.
For those of you that have attended a Boot Camp it will be similar to the first half-day at Camp.

We’ve priced this to be very reasonable, starting at $1000 for most organizations + travel costs.

To learn more:

Our capacity to deliver this new solution is limited by timing, travel, etc. To express an interest and to learn more complete this short form.

*I will be posting more about this in the coming days and months. For now, wanted to get the message out.

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October 30, 2009 | Nick Fellers

Think: Chipotle, not Max & Erma’s

Chipotle - One product (meat in preferred wrapper with toppings) - lots of options: taco, burrito or bowl. Same toppings to choose from for every product. One line. Move. Fast.

Max & Erma’s: Infinite products AND infinite options. Choice is overwhelming.

Chipotle has one of the highest revenue per sq ft numbers per store. Max and Erma’s filed for bankruptcy this week.

This is a metaphor for simplicity.

How does this apply to funding? Your funding message should be more Chipotle less M&E. I’m working now with a youth organization that works in schools. We’ve developed one message around a ‘School Partnership’.

The School Partnership: $10K/yr for 3 years. Sponsors two schools (20 classrooms/500 students) for three years.

We have 15 employees at this org - all of whom come in contact with potential funders each day. Now, when someone says, “This is incredible, how can I help?” We don’t wait to schedule a meeting with development… anyone can communicate this message.

One message - many choices: Of course the prospect can come back and fund ONE school. Of course the prospect can chose to fund only one year. However, now we have ONE baseline ask for $30K with a ton of options.

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October 30, 2009 | Nick Fellers

Read Now: Rules of Thumb by Alan Weber

Tom and I recommend a ton of books. However, note this as an über-recommendation. Alan Weber’s Rules of Thumb - 52 Truths for Winning at Business Without Losing Yourself is the best book for entrepreneurs I’ve read in five years… hands down.

Usually you read a business book and you can boil it down to a few juicy nuggets or takeaways with a lot of filler and fluff and the token story about Southwest Airlines or Dell. I’ve been chewing on every sentence in this book. The last time I remember doing that was when I first read Marcus Buckingham and before that, my first encounters with Peter Drucker.

I wish I could/did write this book. It’s awesome. Some randomly picked nuggets:

“If you’re a leader, your people need three things: clarity about purpose, honesty about values, and focus on metrics.”
Rule #5: Change is a Math Formula. “Change happens when the cost of the status quo is greater than the risk of change: C(SQ)>R(C).”
Rule #10: A Good Question Beats a Good Answer.
Rule #20: Speed = Strategy
Know the difference between text and subtext [extended discussion about].
“Numbers, charts, and graphs appear to be specific, but without verbs it’s hard to know what the numbers actually mean. The numbers may look “hard,” but they’re actually soft. Stories may appear “soft,” but the verbs make them hard.”
“When in doubt, leave it out. Less is more and more is too much.”
Rule #36: Message to Entrepreneurs - Managing your Emotional Flow is more Critical than Managing your Cash Flow.
“If you don’t ask, don’t expect the investor to make the pitch for you.”

I’ve put through a bulk order for this book with Amazon. Will be giving away many copies… leave a comment below (first three to do so) and I’ll mail a copy to you.

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