Innovating Nonprofit Fundraising and Social Entrepreneurship: For Impact

November 2, 2009 | Nick Fellers (admin)

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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October 29, 2009 | Nick Fellers

How to: Planned Giving

I’ve watched development officers come back from planned giving seminars with four D-ring binders full of options, vehicles and mechanics… no joke.

Some people go to school for years to understand those D-ring binders – they’re called accountants and lawyers!

Your job is to get the person/prospect/family to agree they want to leave a legacy – then have the people that went to school for this stuff figure out the mechanics. Stay high level. Stay simple.

Personally, I’ve never done anything with a CRT or creative insurance policy. I know that some gifts have ended up using those vehicles – the ‘how’ was just completed by someone more qualified than me.

I noted to someone the other day that I pretty much only use two ways to close a planned gift.

PROTECT CLOSE: Asking someone that gives a regular and recurring amount to ‘protect the investment’. Example: Let’s say someone is giving $10K annually. You could rationalize a $200K planned gift to ‘protect’ that annual commitment. Idea is that if you had $200K and you wanted to use that as an endowed gift it would generate about 5% every year — or $10K.
COMPLETING THE BALANCE: If someone wants to get to a funding LEVEL… say $5M but just can’t because of mechanics you might ask them to work for a gift level and commit to the balance via a planned gift. Example: Perhaps she can figure out how to pledge $3M in cash. The remaining $2M could be planned gift (note: may not help your immediate funding plan but does create a rationale for the gift). Of course, this planned gift pledge could also be converted to a cash gift at a later time… always creative options.

The coaching: Spend time getting people to WANT to fund your impact… COMMITTED to funding your impact… this is what YOU do well. Then, team up with others that do their job well to figure out the HOW-TO.

Complex things don’t work. Simple things work. Look at the D-Ring binders on your self. Look simple?

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October 28, 2009 | Nick Fellers

FACT: Change Organizations are Designed to Not Change

I’ve been very torn about nonprofit boards for several years.

You have a bunch of people that barely know each other. They get together once/month – take 60 minutes to review some info and then they’re asked to make decisions. Really no incentive to take risks… to leap for change. Adding to that, these board members – because they’re are disconnected the rest of the month – feel they need to inject a token voice for concern about the decision de jour. It’s easier to point out how something could go wrong than to try to grasp an idea enough to figure out how to make it work.

One board member voices a concern – the others don’t know him well. No one wants to be the one to say, “That’s ridiculous.” Instead, someone layers it on – this offers both some camaraderie/support for the first objector AND demonstrates active participation by the second board member… and so on and so on.

I mean for this to be less of a rant than it would sound, I’m sure. I’m on boards. I can vouch first hand for the dynamics above. I’m sure I’ve even been ‘guy 1′ or ‘guy 2′. The structure and perceived risk/rewards lend themselves to these dynamics.

This means CHANGE is often killed dead in the water.

Perception: No upside to taking a risk… to changing… only downside… what if it doesn’t work?

Different perspective: What if we don’t change? How many lives do we NOT impact? So what if we fail spectacularly? Isn’t that better than slowly dying?

There is a solution. Simple. Not easy. Be a LEADER. Tell the guy or gal that you respectfully disagree with the WHY NOT… stand for the WHY IT WILL. Be the CHAMPION for change. Be passionate about VISION and moving forward.

Note: I visited with a board about one year ago – at the time of the financial melt down. 14 voices in favor of hunkering down… doing less… changing none. One voice – the board chair – saying, “NOW is the time for CHANGE!”. One year later I was in the same board room – org doing great… changed… I heard one board member whisper, “This VISION thing actually works.”

Absent of strong leaders, nonprofit boards are designed to maintain the status quo – with minutes and reports to back it up. Leadership takes courage, conviction and the ability to take some criticism.

No new wisdom here… Leadership (Rah! Tah!) Vision (Rah! Rah!). That being said, let’s just call this a REALITY and a FACT for the third sector: Change organizations are designed to not change.

Ergo: FACT, need a LEADER!

Good News: Easier to CHANGE when we deal in facts.

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October 20, 2009 | Nick Fellers (admin)

Buffet’s Contrarian Approach

Just saw a note from one year ago today (19 Oct 08) in my journal… from über-investor Warren Buffett:

“Be fearful when others are greedy.
Be greedy when others are fearful.”

My parallel thought goes like this:

Be ASKING when others are hiding.
Be ASKING even when others are asking.

JUST ASK. It was almost a year ago when the economy crashed and everyone in the nonprofit world panicked. I wrote NOW MORE THAN EVER, where I basically said that this too shall pass….. and then that every For Impact organization needed to stay in front of its best investors (not hide under the desk).

I guess the recession is “officially” over. Dow just went back to 10,000. However, there is still a ton of people without jobs; and, clearly, things will never go back to the way they were.

For most of us in the third sector the DEMAND for our services and support has dramatically increased.

NOW MORE THAN EVER… we need to be out with our best CHAMPIONS and PROSPECTIVE INVESTORS.

Go forth… and JUST ASK!

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October 19, 2009 | Nick Fellers (admin)

19 Oct 09 Birth Date

Today is my BIRTH DATE (19th of every month). A great day to review goals, re-connect with special people, etc.

I spent the morning at the coffee shop capturing ‘LIFE NOTES’ from 5 or 6 journals. (I’m revising my LIFE MAP… Version 49.)

Worked outside at the farm, then heading to Sullivan Brothers for a boxing workout. Then, quick visit with grandkids.

*Making your BIRTH DATE special is something I recommend to everyone. One day a month for yourself would seem to be a no-brainer.

P.S. Notre Dame Boxing and the Missions were featured on NBC at half-time of the USC-ND game last Saturday. To view (:02 minute)

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October 19, 2009 | Nick Fellers

It’s a boy!

Update: My wife, Anna, and I welcomed our first child to the world (very) early Friday morning: William (Will) Xavier Fellers.

Will and mom are doing great. He’s a big baby – coming in at 10lbs 11ozs! He’s built like a tight-end with long legs and big hands. It’s clear he will make an excellent addition to Fighting Irish recruiting class of 2027. Though, growing up around Tom he may just turn those long legs and arms into become a golden glove boxer…

Thanks all for your well wishes and support. Send an email – I’m happy to pass along a picture of the little ‘X-Man’ as many have taken to calling him… though I’m an internet geek I’m still weary of posting Will for the world at three days old

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October 14, 2009 | Nick Fellers

Sales Process (A Visual)

Wanted to share this illustration of a customized sales process Kerry and I did with a client. If you’ve been to a workshop you will recognize Predisposition > PTO (Present the Opportunity) > Follow-up from the Roadmap: Sales Process.

Though we made it for one client, I think it’s pretty near universal.

Leads feed into a PREDISPOSITION STRATEGY

VISIT! Do Discovery and then PTO… could be two visits or one but not more.

The GOAL is a big deal to me… if we can get them to say, “Wow, this is great, what can I do to help?” Then it’s not about cultivation, time or a chess-like gambit. It’s about communicating the ‘how to help’… now/today.

If they don’t say, “Wow!” then we effectively JUST ASK around the goal… and get permission to talk about the funding plan on the next (second) visit.