Special Address – On Third Sector Funding & The Economy

Nick Fellers | October 3, 2008

Listen-on-demand: Special Teleconference – Recorded Friday, Oct 3, 2008

What the financial crisis means to “nonprofit fundraising” and how to respond.
With Tom Suddes, a 35-year veteran of the third sector.

In the past two weeks we’ve received hundreds of questions about the economy, funding plans and financial uncertainty. Tom Suddes has prepared a special session to address these questions including:

What a ‘bailout’ and economic uncertainty mean to your organization.

How to respond (based on field experience from other economic crisis and field experience over the last six months).
An action plan including a conversation on the fundamentals which become increasingly important in a downturn.

As is always the case, Tom presents this ’state of the sector’ as a challenge to change — giving listeners the clarity to move forward and a ’shot in the arm’. The presentation lasts 30 minutes followed by 15 minutes of Q&A.

Click To Play:

Download MP3 | Transcript (Word Doc) | Discuss | *Buy Board Packs*

Who this is for:

Board members and your best champions/benefactors

Development directors and development staff

CEOs, Presidents and Executive Directors

Email This Nugget | Comment |

41 Comments So Far

Nick Fellers (FI Admin) - October 3rd, 2008 9:58 am

We’ve extended the phone lines (twice) and now have more than 300 orgs registered. Going to keep everyone muted throughout the call and we’ll take Q&A here. Post/Ask/Respond.

Others will not see your email address but they will have the ability to respond or ask follow-up questions to your question.

You can also send in by way of email to nick@forimpact.org

Sonya Gladwell reply on October 3rd, 2008 10:17 am:
Thanks, Nick – looking forward to these remarks.

Terry M reply on October 3rd, 2008 11:05 am:
Loud and clear – good to be here.
Mark Kordic - October 3rd, 2008 10:55 am

Nick: Maybe you can be the moderator of the next presidential debate!
Greg - October 3rd, 2008 10:58 am

Nick,
where do we see the comments coming in?

Nick Fellers reply on October 3rd, 2008 11:02 am:
Greg, can refresh page at any time to see new comments.
Tracy Elliott - October 3rd, 2008 10:58 am

Nick: Don’t moderate the debate, run for VP yourself!
Jen Horsch - October 3rd, 2008 11:10 am

Some of our prospects are real estate agents and financial people. We know they’re having an off year. How do we address this with them?

Nick Fellers reply on October 3rd, 2008 11:15 am:
i will ask tom to address these examples in the Q&A
Sandra Dunn - October 3rd, 2008 11:12 am

any advice for small organizations who don’t have any cash reserves or endowments, and yet provide valued services
Diane Berry - October 3rd, 2008 11:17 am

This is great, podcast?- I’d like to be able to play it to everyone in our org.

Nick Fellers reply on October 3rd, 2008 11:19 am:
We’ll post an audio here later this afternoon. Will follow-up with a transcript and added notes (that couldn’t fit into the 30 mins).
Genevieve - October 3rd, 2008 11:24 am

I’m on the marketing board of a budding nonprofit. Any thoughts on how to find and approach possible funding sources? We don’t have long-term supporters who are in the habit of giving, and it seems a hard time to create that habit, especially without major incentives.

Nick Fellers reply on October 3rd, 2008 12:02 pm:
G – I will echo what Tom said. With a clear message you can build and maximize the relationship in one visit. The challenge is to communicate – not cultivate.
Tim - October 3rd, 2008 11:24 am

Comment: “Don’t make decisions for prospects” – agree, like it.

Question: Our board has talked about moving our event from November to March because of the ‘economy’ – thoughts?

Paul Roberts reply on October 3rd, 2008 11:36 am:
“Next March you will still have a need…” T. Suddes.
(10/3/08 Teleconference Discussion – On Third Sector Funding & The Economy)
Greg - October 3rd, 2008 11:31 am

Just this week, we received $25,000 from an unexpected donor, plus a $5,000 pledge and another $500 from a community leader for his birthday …

We’re doing 6 presentations in the community between now and Nov 6th and have another set up Dec 18th with CORE key leaders in our community. People don’t seem to be really concerned at this point from my persepctive.

ksuddes reply on October 3rd, 2008 12:28 pm:
Great examples from the field – Thanks for sharing Greg.
Amelia - October 3rd, 2008 11:33 am

I feel as though we are competing with the Obama and McCain machines for donor dollars – many of our supporters are in DC and are very politically engaged and telling us to hold off until after elections/January…
Tracy Elliott - October 3rd, 2008 11:34 am

Tom & Nick,

Once again, you have hit every note perfectly. Ed, Ed, Jon, Justin and I are listening in and are inspired and encouraged.

Good times: need
Bad times: NEED!

Good times: ask
Good times: ASK!
Joan - October 3rd, 2008 11:34 am

My board development ctte told me last night we can’t possibly have our Spring fundraising dinner. We have to move it to 6 months later to allow people to recover. How do I get them to not be so scared of fundraising?

Greg reply on October 3rd, 2008 11:44 am:
Joan,
we’re having FOUR events coming up and instead of scaling down, we’re adding fuel to the events and taking them to the next level. Dream Big Luncheon is Nov 12th and we’re aiming at $860,000 in pledges. We’re in a capital city of 30,000 people and legislature is next year, but aren’t waiting for anything.
As I mentioned above, we got a $25,000 check this week from a lady who interestingly wanted to sell some stock… and we still got $25 K…. then we did a presentation for the Rotary yesterday and got a $5,000 pledge from an attendee, and WE DIDN”T EVEN ASK FOR MONEY. We showed our impact and he came up afterwards and offered his pledge.
I’m telling you…. people are loving it when we sell our impact and it’s working.
Print this off and share it with your board or development people. In my opinion, they’re crazy to wait!
I’m after the money that the frightened people are leaving on the table for ME to pick up! HA!
Armen Boyajian - October 3rd, 2008 11:34 am

Excellent presentation. Tempus fugit — just get out there! Sometimes we just need to be re-reminded. I had a successful Bishops’ Circle meeting on the day of the 777 point stock market drop!
Willy - October 3rd, 2008 11:40 am

Wow! I’m pumped; feeling validated!
I can verify what was said about the good presentation/message, demonstrating the solid belief we have in the services we provide. We recently launched (and are in the midst of) a capital campaign that will allow us to serve more people/provide more services. Our CEO and Exec Management people have gone out, visited top prospects and have been met with nothing but positive responses with every single one of them, and we’re talking no less than six figures per ask at this point!
Thank you for sharing your advice and energy!
Diane - October 3rd, 2008 11:44 am

Our director is getting increases in funding from county governments from visits
Jan Fonger - October 3rd, 2008 11:45 am

Just read this on the Chronicle of philanthropy “Give and Take” blog. What do you think?
http://philanthropy.com/giveandtake/article/733/wealthy-families-rethink-charitable-giving

Nick Fellers reply on October 3rd, 2008 12:15 pm:
I’ve just not seen that – as stated. I do think people are getting more clarity around their priorities For another discussion – I also think ‘charitable gifts’ can be lopped off the radar as part of that clarity – while ’strategic philanthropic investments’ are growing across the board. The ability to count on that ‘$3000 table sponsorship’ (charity) is not a given and the opportunity to sit down with prospects to talk about funding a significant and untactful priority at $300,000 or $3M is there. The mechanics of the commitment could be impacted (timing, etc) very well could be impacted and is in cases but the level has not been (for organizations that have a clear message, clear priorities and a clear plan — out visiting and asking).
Greg - October 3rd, 2008 11:46 am

I’m after the money that the frightened people are leaving on the table for ME to pick up! HA. We’re having FOUR events coming up and instead of scaling down, we’re adding fuel to the events and taking them to the next level. Dream Big Luncheon is Nov 12th and we’re aiming at $860,000 in pledges. We’re in a capital city of 30,000 people and legislature is next year, but aren’t waiting for anything.
As I mentioned above, we got a $25,000 check this week from a lady who interestingly wanted to sell some stock… and we still got $25 K…. then we did a presentation for the Rotary yesterday and got a $5,000 pledge from an attendee, and WE DIDN”T EVEN ASK FOR MONEY. We showed our impact and he came up afterwards and offered his pledge.
I’m telling you…. people are loving it when we sell our impact and it’s working.
Print this off and share it with your board or development people. In my opinion, they’re crazy to wait!
!
Jan - October 3rd, 2008 11:48 am

Thank you so much for your encouraging words and strategies.
You really put a nonprofit “for impact” touch on the comments on Tom Peters blog this week. Great work still can be done.

I’m going to share this info with my development board. You guys are the best!
Joan - October 3rd, 2008 11:48 am

Thank you very much!
Stephenie - October 3rd, 2008 11:50 am

This was a very powerful teleconference. Thank you so much for sharing your wisdom and energy!!
Nick Fellers - October 3rd, 2008 12:16 pm

The notes posted so far reinforce the point – get out, visit, communicate/ask. Good things will happen – any economy, any time.
donna p - October 3rd, 2008 1:04 pm

Tom’s straight talk was such great encouragement!!!

I’m going to get on the phone today and get some visits scheduled. I had also “forgotten” about the whole “no special events” thing and we were struggling with how to do our luncheon this year. We’re going to revamp it and work the “memorable experience” concept instead. I LOVE it!!
Armen - October 3rd, 2008 1:24 pm

Yes, perhaps Tom Suddes is the original “Straight Talk” guy! Good work again, good recharge for us development folks…
Steve Elder - October 6th, 2008 1:06 pm

I made 8 visits in Kansas City and New England last week. Only one person mentioned the economy will hurt his giving. Several didn’t even bring it up. Every one of them will increase their commitment as a result of the presentation (which, of course, every one of them received).

My favorite was the first visit — a presentation I made on the Monday afternoon that the house failed to pass the “bail-out” and the market crashed. I had been in board meetings in an underground room we called the “bunker.” None of us were getting cell signals, so we had no idea what was going on in the world. I left the board meeting, hopped in a cab, and went to my visit. The prospect increased his annual giving, his Legacy commitment, and is coming to campus to discuss a major gift to our campaign. He never mentioned the economy. It wasn’t until I got back to the hotel that evening that I found out what had happened that day in Washington and New York!

That day, being in a BUNKER really helped!
Nancy Santullo - November 27th, 2008 7:17 pm

Tom, how I found you was I was sitting in my office in Cusco Peru at about 9 pm thinking/worrying/open to how the heck I was going to manifest 3.5 million dollars for our expansion project to bring clean water, proper sanitation and health and hygiene education to remote native rain forest tribes here in the southeastern Peruvian Amazon. I googled, “I need to raise a million dollars” and there you were!

Your special address on third sector funding and the economy went straight to the heart of the matter in true wizard form. I realized that my pre-judging and fear of the outcome of people answers (especially in these times ) with limited funds in our account. You reminded me of our IMPACT and to just ASK, and not to buy into the fear based reality all around!

We are small, grassroots, no reserves, and all money raised was through private donors, and foundational grants. (We only have a donor base of 100 people. 8 of those 100 were our heavy hitters.) Do you have advise on how we go from the $500,000 raised for our pilot , now to raising 3.5 M.

Thanks for reminding me of our magic, our impact, our absolute love of what we do… and that transformation lives in the present moment when dare to go BEYOND and inspire humanities greatest potential.

Many thanks!

Nancy Santullo

Tom Suddes reply on December 1st, 2008 3:14 pm:
@Nancy Santullo,

Nancy,

What a great email to get on THANKSGIVING in the USA!

Some quick thoughts:

As you picked up, don’t “pre-judge” nor assume that people will not help.

“Donor base” of 100 people is fine… as long as you focus on the 8!

Obviously, you need to go back to the people who put the $500,000 for your “pilot” and ASK them to expand their INVESTMENT (commitment) to help you SCALE and GROW.

Additionally, you need to find a small group of additional COMMITTED CHAMPIONS who want to see this project be successful.

As you pointed, Nancy, it is all about your MAGIC… your IMPACT… and your LOVE of what you do that is going to make the difference.

I will send you a pdf version of ON PROSPECTS and (Gold, Diamonds & Oil) that I thought would be some real help as you look to expand your base (but, at the TOP).

Additionally, I’m sending you access to our Online Learning Center for 3 months to try it out. (Usually $1,000 per year).

Keep up the great work.

Nancy Santullo reply on December 3rd, 2008 8:41 pm:
@Tom Suddes,

Dear Tom,

Thank You!

Working on my heavy hitter continues to be my work, only now without fear that I am “asking again”…that by now I should of found other benefactors by now. My heart is tied to this project, the people, the kids, my staff –all amazing “heart centered” human beings. I know as I continue to evolve my own limitations, the outside world reflects that change! LOL! My laughter reminds be that true “transformation lies within.”

Its really 5M that I need. The 3.5M would limit the transformation that we envision for the health of people and the amount of communities we could serve. Its never been done before in Peru with success for remote rain forest cultures. My greatest lies before me.

Thank you again for your generosity, your vision, and for inspiring my highest potential. That little tape up top has a powerful transmission. I am printing out Gold, Diamonds and Oil. As soon as I get access to the Online Learning Center I will log on.

with gratitude,
Nan
Phatsoptosuse - April 14th, 2009 10:46 pm

Does anyone knows what should we expect in 2010? they promise more problems on wall stree? I are heading toward dipression?
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