Category Archives: Intelligence

Old Mother Hubbard's Cupboard Syndrome

We have written about the issue of a fundraiser’s legacy many times over 30 years and our belief is little has changed.

Successfully acquiring donations is the ultimate goal of all organizations but what about all the other information that provides the charity with its wealth. What about its ability to build relationships?

We equate information with wealth, once it has been collected. It is what a charity knows about its donors that support relationships; this becomes knowledge that remains regardless of staff turnover.

When you look into a database only to find donations recorded, we need to ask “Does the charity and its fundraisers understand the job?” “Where is all the other information on donors?” In essence, this question is profoundly linked to the ability of a charity to succeed much less to sustain itself.

To understand our perspective, think of a beautiful house. From the outside, it looks perfect. Now, open the front door and what do you see? Could it be a hoarder’s delight with things everywhere? Is this how your charity might function? It looks good from the outside but the internal workings are chaotic and the donor database is mostly empty, much like Old Mother Hubbard’s cupboard.

What would happen if everyone left your fund development department, never to return? This is what happened with one charity and then a high-value donor came knocking with an important question about a project he was funding. The answer was enlightening. You may wonder what he thought when no one could give him a reasonable response.

In our recent interview with Ralph Young, a past Chancellor of the U of A, successful businessman and philanthropist, he related just this situation about a gift he had given for a specific project. The development team had all resigned. When he connected with the development office, no one could provide details about the project or its progress. Where did the information go? Who is ultimately responsible to ensure good methods are employed?

We believe it is the charity, which needs to define its expectations so that all staff understands how they contribute over the long term, and where staff change won’t expose the charity to risk due to the loss of data, information, and knowledge. Remember, good intentions are not enough when you are managing thousands of dollars of donor goodwill. Good people come and go but the charity needs to be sustainable regardless of this reality.

What do we mean by content? A charity needs to understand and know its supporters. Consider foundations that could provide grants. ‘Need to Know’ information includes gifting criteria, the names of staff members who accept grant proposals, dates or time frames proposals are accepted and the history of outstanding requests, declines, and awards.  When placed in a donor management system versus binders, access is accurate and accessible and staff can react in a timely manner. How long would it take your charity to assemble a list of its grants over the last 18 months including requests, declines and awarded? Would your response be two or three minutes, two or three hours, maybe a week?

Consider corporate donors and what the charity needs to know about them. This might include their giving criteria, the contact information of staff members who can help the charity, when dates proposals are due, what sort of support the organization could offer, and their type of business.  These tidbits offer the charity an entrepreneurial advantage.

Private donor information, depending on how well they are known to the charity, might include information on family members, specific interests they have in supporting the charity, family pets, relationships in the community, plus, plus, plus. Not all private individuals will have data but as the relationship grows so does the charity’s knowledge about the donor. A well- defined coding system is preferable for accurate access through the donor management system used by the charity.

In our many years working with the charitable sector, we have found the amount of information housed in a useful form is almost non-existent, even though the tools are present to easily capture this data. In a recent conversation with a fundraiser, they commented that how each person on their team captured donor data was determined by the team member, not the charity. This equates to an inconsistent approach if the data was collected at all and a recipe for failure.

Content is wealth. It supports relationships by offering talking points that turn into touchpoints with donors. New staff can familiarize themselves with donors based on what is known about them and why they support a charity.

If every staff member did what they wanted, you would find Old Mother Hubbard’s cupboard or vacant databases with little to offer. The outcome is often donors who feel more like a money source and less like a lifelong contributor.

The charitable sector manages billions of dollars annually. In Canada, CRA has some oversight, but what about oversight related to how the charity runs internally. A chaotic environment, often run by untrained staff who are responsible for donor management practices, puts the charity and its funding dollars at risk. What if a charity could say to prospective donors the following?

  1. We have an annual training budget and all staff engaged with fund development are required to be fully trained which ensures data is recorded correctly.
  2. We have an organizational strategy for all electronic tools, to access our resources in seconds, not minutes or hours.
  3. Senior managers all participate in adding to our organizational history.
  4. Fund development managers can all use the donor management software and collaborate with data entry to ensure all campaigns and appeals are properly defined.
  5. We have specific policies and practices for all forms of data management, which we adhere to allowing, for corrective actions where needed.
  6. We invest in continuous improvement but all within the context of our current methods of information management.
  7. Our investment in these methods has continued to improve our productivity and our charitable dollars.
  8. Staff change will no longer put us at risk as our methods and policies have enabled us to continue to work regardless of change.
  9. We have developed a high-performance work environment to achieve our goals and maintain high-performance staff.
  10. We have more time to invest in building relationships with our valued donors, so we are a true donor-centered organization.

Change starts at the top. We challenge executive directors to invest in change which can be implemented quickly and show instant results. Write these changes into the charity’s bylaws so that no one can ignore them, so chaos doesn’t return in the future.

As a final note, don’t say you don’t have time. Everyone has time for their priorities which affects their business. May HOW become your mantra not CAN’T!

A High Value Donor and Accountability

What a High Value Donor Thinks Part II

Batsch Group (BG) sat down today with a High Value Donor (HVD), who has played many different roles in our community and in Canada. Some of those roles included CEO of a Melcor Developments, Chancellor of the University of Alberta from 2012 – 2016, a Board member,  a fundraiser and as a donor. These are just a few of his community activities, which makes him the perfect person to ask about his perspectives on giving.

Please meet Ralph Young (RY)and hear what he has to say.

BG:     How do you choose the charities you wish to support?

RY:     First, it is the cause.

Next, it is believing that our contribution will bring value.

Finally, I like to see it’s working, so feedback is important.

BG:     As a developer, what are your thoughts about the foundation that supports a building?

RY:     Well, without a strong foundation, the building doesn’t stand.

BG:     What are your thoughts about charities and their organizational foundation?

RY:     Well, we have worked on many not-for-profit projects and found that their foundations are often dysfunctional. Staff members change, and often little is known on what has been committed or what will happen with donor’s wishes, leaving it in question. There has to be accountability by the organization to donors.

BG:     Accountability is important. You have mentioned several times today.

RY:     Acknowledgement is nice, too. Don’t forget us once the gift has been received.  

BG:     Are you suggesting that once the gift is received, charities forget about you?

RY:     It’s nice to hear from charity staff. They could take a moment to just drop a line, maybe a quick card signed by someone who has worked with you.  This keeps our interest and shows the charity understands we are more than the gift.

Note to readers: What is being expressed here is relationship building and how a charity can maintain a donor’s interest in how projects are proceeding.

            I once heard a fundraiser say they wanted to make friends with donors. Our position is donors are not your friends they are collaborators supporting a common cause.

            We also heard a comment from a young fundraiser who had worked for one of the cancer charities. They bragged that they had acquired so many gifts in kind for an event that they didn’t even bother thanking the donors. If you were the donor what would you think?

RY:     The problem is staff change so often. It is hard to build a relationship. I am working with a Foundation and I thought the development staff worked well, but they have all left.

BG:     The level of disorganization can affect staff morale. It’s hard to be successful when you spend most of your time looking for information or trying to build a donor profile so you can be credible when you meet with a donor.

RY:     Another area is reporting. I have often received very glossy reports but something simpler with more content would be useful.

BG:     Would you consider donating to a charity where they run a chaotic organization?

RY:     It would depend, but chaos and a lack of discipline would be a consideration.

BG:     What do you think of a form of certification for a charity which supports how it works to successfully deliver its programs, and which cannot be undone by every new staff member.

RY:     I think it’s a good idea.

BG:     Ralph, thank you so much for taking time to share your thoughts, your suggestions and some of your frustrations!

Summary Comments

The charitable sector manages billions of dollars annually. In Canada, CRA has some oversight, but what about oversight related to how the charity runs internally. A chaotic environment, run by often untrained staff, who are responsible for donor management practices puts the charity and its funding dollars at risk. What if a charity could say to prospective donors:

  1. We have an annual training budget and all staff engaged with fund development are required to be fully trained.
  2. We have an organizational strategy for all electronic tools, so access to our resources is seconds, not minutes or hours.
  3. Senior managers all participate in adding to our organizational history.
  4. Fund development managers can use the donor management software and collaborate with data entry to ensure all campaigns and appeals are properly defined.
  5. The charity has specific policies and practices for all forms of data management, which we adhere to allowing for corrective actions where needed.
  6. We invest in continuous improvement but all within the context of our current methods of information management.
  7. Our investment in these methods has continued to improve our productivity and our charitable dollars.
  8. Staff change will no longer put the charity at risk as our methods and policies have enabled us to continue work regardless of change.
  9. We have developed a High Performance work environment to achieve our goals and maintain high performance staff.
  10. We have more time to invest in building relationships with our valued donors, so we are a true donor-centric organization.

Batsch Group Inc

Authors of From Chaos to Control Build a High Performance Team Using Knowledge Management

Productivity, Stewardship, Results: The Donor Centered Charity

20181202_052709

Ya Ya Ya ,,, Change?!! No Way! Barbary Ape Gibraltar

A common theme for charities is staff turnover, lack of productivity and the struggle to maintain donation levels.

We attribute many of these issues to the charity’s ability to create and maintain a high performance work environment.

Like any business, access to tools and information is critical to its function and to those it employs.

Surprisingly few of you reading this will be interested in the how and why, to achieve better results.

The old adage ‘it has always been this way’ is clearly the mantra of common leadership.

This conversation is directed at Executive Directors who want more and are willing to make deceptively easy changes to free up staff time, bring in more dollars and have job satisfaction. You have said ‘We don’t have time to change’.

For some of you this is true. But for a few, this will be a challenge and one where you will rise from surviving to thriving.

There are four requirements:

  1. Leave your ego behind
  2. Be prepared to invest in change
  3. Never say Can’t
  4. Commit to action & implementation

2019 will look and feel and be, different.

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NPO Intelligence

coming March 2019