To our friends at this organization (they know who they are): Don’t let ‘a recession’ determine your timeline for saving lives, changing lives and impacting lives…
- A campaign is a time to build and maximize relationships. This begs the question, when would you NOT want to be building and maximizing relationships? We should be funding the vision – always. Note: Get more on Funding The Vision with Tom’s Campaign book.
- You need to be out selling. If I were to put that in a softer way that might be more widely received I would say you need to be out telling the story… or even just making visits.
- 16 months. This is how long it’s taken me to schedule a visit with my best project on one particular project. 16 months of persistence, gate keepers, put-off’s, delays. We persisted because the prospect was our top prospect (we knew/believed this). When we FINALLY got the visit the prospect thanked us for our tenacity… it turned into a $2.1M commitment. If you wait until we’re out of a recession to start ‘working the list’ what happens?
- 4 months. This is about how long it takes from the time you ASK to the time a six-figure gift is closed. Note: This is of course a little arbitrary and a complete generalization. I took a composite of my own experiences plus stories from funding boot camp alums – representing orgs of every shape and size. My point is, if you need the money in April you can’t start visiting in March.
- Fine. Don’t call it a campaign. If you’re that worried about perception just don’t call it a campaign.
- December 6, 1994. This was the day Orange County declared bankruptcy. It was also the same day The Suddes Group started a successful economic development campaign in that same county. I share this and could share dozens of other stories about being out in every economic climate. I’m not just typing a bunch of empty thoughts. We’ve been out there. We are out there – now. I’m damned straight playing the credibility card on this one… now more than ever you need to be out making visits. We’ve put together an entire seminar/publication around these stories.
- If you’re worried, be authentic. Let me assure you. No one is going to throw you out of his or her office or home because you’re there on behalf of a worthy cause during “a recession”. And, I PROMISE no one is going to ask, “How dare you come to me right now?” But, if it helps, work up your response and your security blanket. “We can’t stop telling our story because of the market and quite frankly, it’s not the market that’s driving us. It’s [CANCER] [HOMELESSNESS] [EDUCATION] [HOPE] [BEAUTY (arts)].”
- Finally, remember this is about RELATIONSHIPS, not transactions. The RELATIONSHIP to your CAUSE has nothing to do with the economy. ]]>
Every business in and sector lives and breaths by fundamentals, first.
- A clear vision/direction (illustrated a clear MESSAGE).
- A clear revenue MODEL.
- A clear PLAN including an understanding of the MATH (impact math and income math) to get there (e.g. goals, levels, etc.)
As I’m writing this to compare and contrast trends and fundamentals I realize most of the trends (that get discussed) are really fads because too often they’re ‘the next big thing’ and don’t have staying power. These could include:
- Earned Income (Social Enterprise)
- Lance Armstrong’s bracelets
- 5K races
- Social Networking Funding (The Obama effect)
Maybe if they were backed on a case-by-case basis with fundamentals they would be true trends and not fads.
Example – Earned Income: I went to a Social Enterprise Alliance gathering four years ago. What I witnessed were some orgs starting earned income ventures without attention to fundamentals, no clear plan and no willingness to do the math to see that they were losing $50 on every widget they produced. On top of that, one speaker cautioned, “It’s hard enough to start a business with people that have their lives together let alone those that don’t.” Four years later 16 out of 17 orgs I interviewed abandoned the earned income stream – each for the lack the fundamentals outlined above.
The reason most small businesses fail is because they don’t have a grasp on fundamentals. Nonprofits often don’t ‘fail’ in the same sense that for-profit businesses do [running out of money]. Instead, they limp along for years longer, subsidized by passion, volunteerism and employees on the fast-track to burnout (human capital model)… this unique resource model is often a masking agent for a lack of fundamentals.
If you’re a board member, a senior staff person or development officer you can do a great service to your organization, your team and your cause by leading a discussion on the fundamentals… by leading a discussion to clarify the direction or purpose of the organization, by clarifying the model and by working through the math. This discussion is simple, not easy.
]]>In this seminar we discuss:
- A new look at “conventional” nonprofit funding silos (annual fund, special events, direct mail, grants, major gifts, endowment, planned giving, campaigns)
- A 100 Day funding plan to generate $100,000
- The triple ask (operations, projects & endowment)
- How to build a funding plan
- Top-down focus (not bottom-up)
- The master prospect list
- Simplicity, focus and return-on-energy
- Edit: “Year-end Funding Strategy”
Some of the questions that came in following the seminar are posted below. Add your questions to the comments.
Q. We are just getting starting and we don’t have a real funding plan.
[Our Org] has a yearly budget of $400,00.00 per year. $380,000.00 for running our school and training programs for the orphaned children in Rwanda and20,000.00 to pay our director and rent here in NY. We have never been able to raise the full amount of the money we need.
We have the opportunity to purchase land and build a boarding school for at risk girls, but no plan to how to do the fundraising.
We spend all our efforts on events where our Director (who is so compelling) speaks and we maybe raise $10,000.00 at a time. Now I understand how this is the wrong focus.
I do need to work on a real plan to get us solid. What you have said to this point has been helpful. Thank you
- BK
A. BK-
Thanks for your note!
Need to be focusing on following up with people at those events (to maximize the relationship). Talk to them about your programs — you need money for
Teachers (or curriculum)
Campus (or places where you do the teacher)
Students (a cost associated with each student).
The funding priorities might break out like this:
Teachers: $175 K (training, finding, supporting, paying)
Campus: $50K (we use other campuses but still need a central HQ – I’m making this up)
Students: $175K (we help 350 kids at an average cost of $500/kid)
Your plan should be around this — either get people to fund blocks of kids. Eg. “Nick, can you underwrite 20 kids?” OR Ask me to take make a $50K lead gift toward the vision for each of the next three years.
NJF
Q. I missed what you mean by flip to fill the funnel … can you repeat?
- JW
A – JW, if and only if someone is actually maximizing relationships then you can think of the model as a funnel. Without the focus on the top then it’s just a pool (not a funnel). You can use your events as predisposition events — with the idea that you will follow-up with attendees one-on-one following the event.
NJF
Q. How do I “think big” and shoot for a $1M budget, but also prove that we’re a lean organization?
Have a call with a legendary VC in a few hours!
- MDP, Social Ventures
A. MDP. As a VC he will understand Think Big, Build Simple. There is a reality… you don’t NEED $1M TODAY but you do need $1Million. So you can talk to [name] about growing with the vision – it could be a $200,000 ask in which he does $25K this year, $75K the next and then $100K. This is all a function of how/where you can let your plan go.
The other part of the answer is accounting for WHERE The money will go – your three circles. If your plan really requires $1M then it really requires $1M. You could be a $100M org and still be lean. So… what are you doing with the $1M?
Does that help?
NJF
Q. Hi Nick,
In planning your top tier, how do you determine when to use 5 angels at $100k each or top donor of $200k plus next 2or 3 at $100k, etc.
Then the same thing for the second (or middle) tier.
Thanks.
Best Regards,
- CP
A. CP
Thanks for the question.
I think it starts with what you can get your best prospect to do. The plan is DYNAMIC (I’m making a note to share this next time). Dynamic means that you can adjust your plan. If your top prospect agrees to $50K then you know you need to widen the base.
The important thing is that you do the math. The math will reveal when the plan becomes ‘not viable’. That is, if you find that you let everyone down a few levels and now need 700 prospects at $1000… well, that’s not viable.
I usually start out with a very aggressive funding plan and adjust if and as needed. I am reluctant to let off the aggressive plan though because in many cases, if you start adjusting your levels the funding just can’t be made up.
NJF
Q. Nick,
You distinguish the difference between sales & marketing. I understand this and wonder as a 1 person department who needs to raise awareness and funds, how do you measure the no-monetary yield such as greater awareness, buzz, etc…and include these needs in our plans
Do you have suggestions of best ways to identify qualified prospects?
Thanks,
D.
A. D – I think the key lies in understanding the distinction.
As a one-person development department my plan would focus on 20-30 prospects. We cannot fund our vision without those prospects. I don’t know the nature of your org (re: awareness) but re: funding, it’s only important that those 20 or 30 have a greater awareness. Heck, if we can get the funding on board we’ll hire someone to do marketing 
NJF
Nick,
Thank you so much, I felt this was an excellent, excellent seminar……….. As a one-woman development department, I’ve got to tell you, that I was originally shaking in my shoes thinking of our upcoming, $3.5 M endowment/capital campaign………. And now, after your seminar, realize we probably need to make that a $12.5 M campaign – I strangely feel less anxiety than I did about $3.5 M
- JT
Q. JT – We’ll definitely get that for you when it becomes available.
Funny. It’s easier to think big than think small, isn’t it?
I just helped a retirement community in San Diego do this. The catalyst for the relationships was that they needed $5Million for a new center. We elevated the vision (did not change or arbitrarily add funding priorities). We took into account the entire picture and through that the org was able to secure a $5M gift to underwrite the project – as a piece of the vision. They never could’ve done this had they been about a $5M campaign.
NJF
]]>Almost every 'COMMUNITY LEADER' I know is engaged on some BOARD for their church, school, United Way, social service agency, whatever.
Special Note: I led off my session on COMMUNITY LEADERSHIP by simply writing this on a flip chart:
Almost every ‘COMMUNITY LEADER’ I know is engaged on some BOARD for their church, school, United Way, social service agency, whatever.
Special Note: I led off my session on COMMUNITY LEADERSHIP by simply writing this on a flip chart:
BOARD RESPONSIBILITY (read more PDF)
- THINK… and GROW RICH
- FOCUS… at APPROPRIATE ALTITUDE
- COUNSEL… based on EXPERIENCE/EXPERTISE
- Be a CHAMPION… for the CAUSE and for the CASE.
- INVITE others… to get INVOLVED & ENGAGED.
- Make a COMMENSURATE COMMITMENT…
to help FUND THE VISION.
| 30,000′ | THE WHY (Think View from an Airplane) |
VISION |
| 14,000′ | THE WHAT (Think Top of the Mountain) |
STRATEGY |
| 33′ | THE HOW (Think Nap of the Earth) |
EXECUTION |
I am always AMAZED… STUNNED… OVERWHELMED… that there does not seem to be a SINGLE ‘NOT FOR PROFIT‘ that has figured out the ROLE and RESPONSIBILITY of the BOARD!!!
I have done a considerable amount of work with colleges, large national associations, almost every Catholic secondary school in America (at least that’s what it seems like), the leaders and national models in cancer research, international education, homelessness, healthcare, museums and much more.
Every single one of these groups… along with pretty much every organization who has attended our workshops or training camps… has a HUGE PROBLEM with this whole BOARD ROLE & RESPONSIBILITY.
ACTION:
You can share this WOW E-Mail with your team, board members and other community leaders.
I’ve also provided stand-alone one-pagers to go deeper on each of these.
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