Posted 2/15/13

A Team Building Lesson

by Michael Wilkinson, CMF

Over a decade ago, before learning many of the techniques in The Effective Facilitator, I was called in to facilitate an international team of 20 who had come together to develop a strategic information systems plan. The international team included representatives from three companies in a joint venture proposing to become the second telecommunications carrier in a foreign country. The joint venture was competing against two other teams who were vying for this country’s business. In 90 days, the country expected to announce the winner. Once the contract was awarded, the winner would be obligated to have wireless service up and running within six months. This tight time frame for offering services to the public meant that all operational decisions for the organization would have to be made in advance so that the six months could be spent implementing those decisions and not deciding what the decisions would be. Therefore, the information systems team had a limited window to identify all the computer systems that the entire operation would need and to create a plan for implementation, in case the consortium was awarded the contract. This was going to take a Herculean effort, to say the least.

With any new team coming together, a team briefing is needed to get all members of the team clear on the five Ps: the Purpose of the project, the Product to be produced, the Participants that will be involved, the Probable issues to be faced, and the Process that will be used. The actual briefing lasted two days. Late in the afternoon of the second day, I noticed the energy in the room falling sharply. As the facilitator, I selected a team building activity to raise the energy in the room. The activity I chose, Categories, had nothing to do with the work we were doing and the results of the activity in no way contributed to the work product. Nor did I hold a debrief session following the exercise to try to explain how the activity related to our overall purpose. (I’m not sure it did. After the activity, the project sponsor pulled me aside and said, “Let’s not do anything like that ever again.”) I learned an important lesson that day about team building exercises.

The Lesson

When you use team building activities, be sure to select an exercise that is appropriate for the purpose and hold a debriefing session to help team members understand how the activity applies to the work of the team.

You can learn more tips about facilitation through our course, The Effective Facilitator.

About the Author

Michael Wilkinson is the Managing Director of Leadership Strategies – The Facilitation Company, and a much sought after trainer, facilitator and speaker. He is a Certified Master Facilitator and a Certified Professional Facilitator. As a past president of the Southeast Association of Facilitators and a board member of the National Institute of Facilitation, Michael is a national leader in the facilitation industry.

Team Building Activity – “Crossing the River”

By Michael Wilkinson, Certified Master Facilitator, Managing Director of Leadership Strategies – The Facilitation Company, and author of The Secrets of Facilitationand The Secrets of Masterul Meetings.

Every trainer and facilitator has his/her favorite team building activity.  Some facilitators like the more active interventions such as rope courses; others prefer the more “touchy-feely” ones like trust walks; still others like using blind-folded instruction, or simulations like Gold of the Desert Kings.

Of course the most appropriate team building activity for a group depends on a number of factors, including your overall purpose, the nature of the group, the amount of time you have, the limitations of the space, etc.

Yet, of all the team building activities I have experienced, my favorite by far is an activity called Crossing the River.  I’ll describe the exercise first and then I’ll tell you why I think it is so great.

Objective	Have all members of the team cross the river at the same time.
Preparation	Create three islands by taping together four 8.5 x 11 sheets of paper for each island.  Create a pebble for each person by cutting sheets of paper in half length-wise to form 4.25 x11 sheets.  Create one rock (an 8.5 x 11 sheet) for every six participants.  Tape off an open area at least 10 medium strides (25-30 feet) long and six strides wide.  Place the islands as shown in the diagram.
Instructions	Have all participants stand on the left side of the bank and hand out a copy of the instruction sheet to each person and review the situation and rules together.  Then give two minutes for questions.  The clock starts after the last question is answered. The Situation You and your teammates are on one bank of a poisonous, deadly river.  The river is so contaminated that if any part of a person’s skin or clothing touches the river, they will die instantly!  Each of the people on your team must cross from one bank of the deadly river to the other.  You have 20 minutes. The Rules No part of a person’s skin, clothing or personal articles may touch the river.  The only items that can survive in the river are islands, rocks and pebbles. Islands, rocks and pebbles are safe spots (touchable). Islands in the river may not be moved. Rocks may not be moved once placed in the river. Each team member owns a pebble. Only the pebble owner, may place a pebble in the river, take a pebble from the river, or move a pebble once it is in the river, and he/she may do so using his/her hand only. All team members must step out of the river at the same time.
Execution	During execution, pay close attention to group dynamics.  Some items to be conscious of in particular follow. Points for Observation Communication How long did it take for there to be a single conversation going? Did everyone who wanted to speak get an opportunity to be heard? When suggestions were made, was a response given every time? (Or did some people’s suggestions get listened to while other’s were ignored?) Planning Was a plan created?  Who initiated the plan?  How many people were involved in developing the plan? How was agreement reached?  Did the group check to ensure understanding and agreement from everyone before acting on the plan? Did the plan provide a complete picture of how to start and how to end? Execution Was there a leader or multiple leaders?  How was the leadership chosen? Was the leadership followed? How willing were people to rely on one another, to help one another and physically support one another? Was the goal achieved?  How much time was required?  What was the key to achieving or not achieving the goal?
Debrief	At the completion of the exercise, debrief with the team.  Have them identify their own observations. Be sure to offer your own observations as well. Following observations, have them identify their learnings, and how to apply their observations and learnings to the workplace.

 

Crossing the River is ideal for 8-16 people. If you have up to 24, you can choose several to be observers and assign them different sections of the Points for Observation.  If you have more than 24, you can split into multiple teams that do the exercise all at the same time, each with their separate “rivers” they have to cross.  I have done this with 16 teams simultaneously in a very large room.  As each team completed, they let out a team cheer.

What makes Crossing the River so great for team building?

1. The goal requires team planning and execution; the team has to come together for success.
2. No one can do it on his/her own; the team either succeeds or fails together.
3. The exercise breaks down barriers; it requires people to share their thoughts, share their resources, and share their space.
4. And perhaps most interestingly, the time limit creates a sense of urgency that frequently results in people defaulting to the same behaviors that do in the workplace: those who typically takeover, do so in this exercise; people who drop out, also do the same; people who frequently serve as naysayers, often take on this same role when faced with Crossing the River.

For years I have been looking for a second team building exercise as good as this one.  If you have one I loved to hear from you.  I’ll share the best I get in a coming issue.

Interested in learning more facilitation techniques?  Check out our course, The Effective Facilitator.

Michael Wilkinson is the Managing Director of Leadership Strategies – The Facilitation Company, and a much sought after trainer, facilitator and speaker.  He is a Certified Master Facilitator and a Certified Professional Facilitator.  As a past president of the Southeast Association of Facilitators and a board member of the National Institute of Facilitation, Michael is a national leader in the facilitation industry.  You can get more tips from either of Michael’s books, The Secrets of Facilitation or The Secrets to Masterful Meetings. You can receive a signed copy through our website.

************************************************************************************************************************

Ten Tips for Analyzing Your Organization’s Balance Sheet

By guest author: Heather Young of Young Associates which provides bookkeeping and financial management services to non-profits focused on arts and culture.

May 2012

Understanding your organization’s financial statements is essential to controlling the purse strings. These ten tips are intended to help you better assess and interpret your Balance Sheet – a.k.a. Statement of Financial Position, or Statement of Fund Balances.

The balance sheet captures the value of your assets (things you own), liabilities (what you owe) and net assets (difference between assets and liabilities). This statement shows your organization’s financial position at a single moment in time. The next moment, things may change – every deposit and withdrawal changes the balance sheet. The balance sheet is often more challenging to interpret than its companion, the statement of operations. However, grasping it is essential to understanding your charity’s finances.

1. Understand your financial documents. Formal financial statements (including those prepared by professional accountants and those generated by commercial software programs) are designed to be understandable by people who’ve made a reasonable effort to learn how to read them. It’s worth taking the time to become familiar with the layout and terminology. Read your balance sheet regularly. The more familiar you are with your organization’s reports, the better you’ll become at spotting good news and bad news, and knowing how to address potential problems.
2. Balance sheet accounts are “permanent.” These account balances roll on from year to year. Last year’s closing balances become this year’s opening balances. In contrast, revenue and expense accounts (found on your operating statement) start at zero each fiscal year, accumulate a full year of results, and are “re-set” to zero for the new year. That is, your operating statement shows only current year activity. When you read the balance sheet, you need to be able to interpret what’s current and what’s historical. Transactions stay on the balance sheet until they are settled. Thus, last year’s unpaid bills will sit in Accounts Payable until you use this year’s income to pay them off.
3. Understand how day to day operations affect the balance sheet. The Balance Sheet shows your organization’s “lifetime” result – the accumulated surplus or deficit – in the Net Assets section. This year’s revenues contribute to an accumulated surplus or deficit, and this year’s expenses reduce it. If this year is going well from a financial viewpoint, then quite likely your operating results are increasing your assets, decreasing your liabilities, and increasing your net assets. The opposite is also true. You need both statements to understand your situation fully. (NB: see also Ten Tips for Analyzing Your Organization’s Operating Statement.)
4. Go beyond the cash account. Yes, most of your transactions probably go through the bank as cheques and deposits. It’s tempting to read the operating statement and the bank balance, and feel that you’ve gone as far as you need to go. However, you need to look at all balance sheet accounts to understand your resources and obligations. Some accounts contain transactions in progress, e.g. Accounts Receivable (you’ve sold goods or services but the client has not yet paid) and Accounts Payable (you’ve purchased goods or services but have not yet paid). Receivables appear in your revenue accounts – but you haven’t yet got your money. Payables appear in your expense accounts – but you haven’t yet paid for them. These items haven’t hit the bank yet – but they will – and you need to know what to expect. These are just a couple of typical examples. Make sure you understand all of your charity’s particular balance sheet categories.
5. “Current” has an accounting meaning. Anything “current” pertains to items that are cash or will be converted to cash within this fiscal year. See the next two bullet points for fuller explanations. Anything not designated “current” has a longer timeline. Thus, long-term liabilities don’t need to be settled this fiscal year: e.g. if you have a mortgage, this year’s payments are a current liability, and the rest is a long-term liability. Capital assets are items of substantial value that are owned for longer than a year.
6. Current assets = short-term resources. The #1 current asset is cash – in the bank, in short-term investments, in your petty cash box. Other current assets are considered “near-cash” in that they will be realized for cash within the year. You need to know what you’ve got here. If people owe you money (Accounts Receivable) – who, how much, and how quickly can you collect? If you’ve paid for something in advance of receiving it (Prepaid Expense – e.g. a rent deposit for a special event), when will you get the value of it? These are typical current assets. Your charity may have other categories – all of which represent financial resources to you.
7. Current liabilities = short-term obligations. These are debts that must be paid within the year. If you owe money to others (Accounts Payable) – to whom, how much, when are the obligations due, and how will you meet them? If you have received money in advance (Deferred Revenue – e.g. a grant or sponsorship for next year, received early), will you have enough cash to carry out the obligation when it falls due? These are typical current liabilities. Your charity may have other categories – all of which represent obligations that must be met.
8. Working capital = current assets minus current liabilities. This figure defines your ability to carry on in the short term. If current assets exceed current liabilities, you’re doing well! You have more than you need to meet short-term obligations – as long as your near-cash items become cash before your debts are due. If your current liabilities are greater, you may be facing financial challenges. Calculating working capital and understanding the details behind your balance sheet figures are key to assessing what kind of shape you’re in.
9. Capital assets and depreciation (amortization) policy affect your financial position. A capital asset is an item of value that your charity will own for more than a year. Typical examples include buildings, land and equipment. Depreciation (amortization) is an accounting mechanism that allows you to spread the cost of an asset over the estimated years of ownership. (It’s tempting to think that depreciation equals the decline in an asset’s value over time. This might be true – but often it isn’t. For example, many companies depreciate computers over a three-year period. Do you think your $1000 computer would fetch $666 if you tried to sell it after owning it for a year?) Depreciation is an estimate, pure and simple. Choosing a longer depreciation period versus a shorter one affects your financial position – and your operating statement. For instance, if I depreciate my $1000 computer over three years, each year bears $333 of expense. If I depreciated it over two years, each year would bear $500 of expense. If I used a four-year depreciation period, each year would bear $250 of expense. How many years will I get out of the computer? Impossible to know ahead of time. This is a fairly complicated topic – beyond the scope of this tip sheet – and a good one to explore with your accountant.
10. Compare deferred revenue to current assets. It’s fairly common for charities to have deferred revenue: e.g. grants and sponsorships intended for next year but received early; the unspent portion of a multi-year grant; subscription sales for next season. If you’re in good financial shape, your deferred revenue will be sitting in the bank, or in short-term investments. If your cash balances are less than your deferred revenue, it means that you’ve already spent that money on immediate needs. Comparing deferred revenue to your cash accounts will tell you quickly about your ability to meet this category of obligation.

Tracks to Success 
Planning Nonprofit Events

by Natasha Geraghty-Medved, Acteva

Part 1 –Event Management and Marketing

Are you helping your nonprofit raise funds by hosting an event? Are you lost when dealing with the event management side? Stay tuned, this series is designed to make events, especially fundraising, simple.

1. Conceive the Event

Before you create an event, dream it. Drill the dream down to the basics; this will assist you in planning and marketing the event. The following questions can help achieve your goals:

• What are the event goals?
• Target Audience: What drives their interest/involvement?
• Distinction: What makes your event special? Cater to your target audience.
  • (Theme, live music or performances, free food, open bar, speakers, door prizes…)
• Location: Is it convenient to get to? Easy parking or public transportation access?
• Date and Time: Carefully choose the date, be aware of conflicting events.

As your event takes shape, create a checklist detailing your needs: vendors, caterers, decorations, and more. The pieces of the event will fall together as the list is checked off. This is also the time to start marketing and selling tickets.

2. Promote the Event

What is an event without people? Nothing! Get YOUR EVENT on people’s CALENDARS FIRST. Chances are that your event is not the only one your attendees will be invited to on the date you have chosen.
Before you create your marketing campaign, figure out the answers to these questions:

• Target Audience
  • Who is your target audience? (Age, gender, education, interests, preferred form of contact)
  • How will you reach and capture your target audience’s attention?

You will have to repeat your message multiple times before your audience remembers it. Find the best way to reach your audience and leverage your event landing page. Tailor your message to your audience. From social media, print, radio, email, to “snail” mail, reach your target audience in multiple ways.

When creating your event campaigns, remember your audience cares about one thing: “What is in it forme?” Tell them, in a personal and creative way, consistent with your brand, why they should pick your event. Let your readers know what you want them to do (e.g.: buy a ticket) and include event incentives in any communication. It’s also a good strategy to include promotion codes to quickly sell tickets. Let attendees’ invite friends or share information about the event via social media.

There is still plenty to do when planning a nonprofit event, but this gives you a starting point. Check back for Part Two which will focus on solidifying your check list and provide a number of fundraising tips.

Genealogy Help

OHA Webiste

Genealogy – Trace Your Family Tree

Where Do I Start? It’s Easy as 1-2-3

1) Download the “My Ohana Tree” Chart (MS Word .doc)

2) Start with yourself: Fill in all the information about yourself and your family. If you are unsure about the exact dates and places, estimate them. : Highlight the missing or incomplete areas.

3) Free Internet Help: The internet has many websites to help you with your research, start by clicking on the links below:

ONLINE GENEALOGY LINKS

www.familysearch.org – The largest collection of free family history, and genealogy records in the world.
www.ancestry.com – Looking for your family tree?
www.rootsweb.com/~higenweb - Hawaii Genealogy and History
www.hawaiian-roots.com
www.ulukau.org

If you want to further your research click on the links, call or visit the genealogy resource locations below.

“THERE ARE MANY ANCESTORS TO BE FOUND”

Hawaii Genealogy Links and Resources

 

HAWAII STATE LIBRARY 478 S. King St. Phone: 586-3535 Hrs: M W F Sat- 9am-5pm Tu & Th – 9am-8pm www.librarieshawaii.org	STATE OF HAWAII DEPARTMENT OF HEALTH Vital Records Section 1250 Punchbowl St., Rm. 103 Honolulu, HI 96813 Phone: 808 586-4533 www.hawaii.gov/doh	ALU LIKE, INC. Hale O Nā Limahana 458 Keawe Street Phone: 535-1359 Hrs: M – F, 8am – 4:30pm www.alulike.org
HAWAI’I STATE ARCHIVES Iolani Palace Grounds Phone: 586-0329 M – F , 9am-4:30pm www.hawaii.gov/dags/archives	FAMILY HISTORY CENTER Honolulu Stake FHC 1560 S. Beretania St. Phone: 955-8910 Hrs: T,TH 9-5pm, Sat 9-1pm www.familysearch.org/	DEPARTMENT OF HAWAIIAN HOMELANDS (DHHL) Corner of Alakea & Hotel St. 1099 Alakea St., Suite 2000 Honolulu, HI 96813 Hrs: M – F,7:45am – 4:30pm Phone: 586-3800 MAIL: PO Box 1879, Hon, HI 96805 www.hawaii.gov/dhhl
STATE OF HAWAIʻI BUREAU OF CONVEYANCES 1151 Punchbowl St. Across the street from the State Capitol & Main Library Phone: 587-0148 Hrs: M – F ,7:45am to 4:30pm www.hawaii.gov/dlnr/boc

 

Posted June 13, 2012

Are you getting the most out of meetings?

Meetings make people groan. Since we spend so much time in meetings, let’s make them as productive as possible. After all, a great meeting can energize you. You leave clear about the next steps and who’s responsible, and everyone feels that their contributions added value.

To set the stage for meetings that are strategic, outcome-oriented, and productive for all, we did some research to find out what makes for a great meeting. Here’s what we found.

First things first: Is this meeting really needed? There is no question that face-to-face meetings, while maligned as time wasters, are actually most effective for reaching consensus. In-person meetings also draw out feedback with greater detail and nuance than possible through email. But if there is not a decision that absolutely needs to be made, why meet? There could still be other compelling reasons to gather with your colleagues. But before you do, be clear from the outset what the objectives are

Circulating a draft agenda in advance can flush out items that may need more preparation before they are ready for presentation or discussion. If only a few people will be attending, circulating the final agenda to everyone, “FYI only,” to help keep everyone on the same page – and may result in some extra comments or background to augment the discussion. If the agenda includes more than one issue, whether an update, discussion, or action item, the agenda should clearly identify who is leading each component

Three Meeting Purposes

There are three basic reasons for meetings: decision-making, information-sharing, and “idea-floating.” Information-sharing and idea-floating meetings can often be streamlined with an advance email that contains background information. Preparation of a “pros and cons” memo, shared in conjunction with an idea-floating meeting, can help focus the discussion and spark ideas to overcome barriers to implementing a good idea. If the goal of your meeting is a decision, be sure that those with the power to move an idea forward are present and well-briefed so the question presented at the meeting is “ripe” for a decision.

What Kind of Meeting Works Best?

The type of meeting you plan can complement the exchange of ideas and lead to better outcomes.  In addition to traditional gather-round-the-conference-table meetings, stand up meetings are good for a quick exchange of ideas that leads to a clear decision. Because everyone is on their feet, they are less likely to settle in or ruminate in detail on the issue at hand. Off-sites are good for out-of-the-box thinking because being in unfamiliar surroundings can break old habits and release energy leading to fresh ideas and deeper thinking. Meeting at a round table is conducive to peer-to-peer exchanges and encouraging less senior staff to speak up because there is less hierarchy when no one is sitting at the “head” of the table. Rotating offices periodically to meet in a different team member’s office shows respect for all and offers everyone the opportunity to “host” a meeting. Walking meetings are good for one-on-one conversations, head-clearing, and trust-building.

Strategic agendas

To move your meetings toward the outcomes you seek, try framing agenda items as a statement of the best possible outcome. This can help ensure that everyone focuses on the goals for the individual agenda items during the meeting. Here are two ideas for designing agendas so they are strategic and promote outcomes, instead of roundabout discussions. One is to actually include a reference to your nonprofit’s strategic plan in the meeting agenda. When you do, you can group action items and issues for discussion according to the strategy they support. This helps build momentum around forward-looking actions, rather than miring the meeting in lengthy reports and updates. Also by doing this you are reinforcing the nonprofit’s strategic priorities for those attending the meeting. The second idea for promoting strategic and outcomes oriented meetings is to use a consent agenda. Put anything that doesn’t require discussion on the consent portion of the agenda. This opens up your agenda for deeper discussions on trends, policies, and priorities, and allows board members to sink their teeth into issues where their wisdom can add the most value. We’ve designed a sample strategic agenda that incorporates a consent agenda as well as reflects the strategic priorities of the organization.

Time management

Being respectful of time is as essential as refusing to call a meeting unless there is a clear purpose to meet. Including a timeframe for each agenda item keeps focus on the clock, and offers a subtle signal to rein in those who tend to ramble. When ideas are shared that aren’t directly on point, offer to put them in a “parking lot” (also referred to as an “idea bin”) for future agenda items. When someone raises an interesting idea that doesn’t fit with the agenda, say something like, “That’s so interesting. But let’s return to today’s agenda.” But if the side idea feels important, don’t let agenda-rigidity rule the day. Check-in with everyone: “Should we switch out one of our other agenda items so we can set aside a few minutes right now to explore this tangent?” If an agenda item is running over the allotted time, show respect by asking whether attendees can spend a few more minutes in the meeting. Extending this courtesy will reveal how urgent others believe that resolving the current issue really is.

Meetings as Leadership Lessons

Healthy debate and diverse opinions help sharpen our thinking, so creating an atmosphere (and a culture) where people are encouraged to speak up is optimal. Do this by asking open-ended questions, modeling support for out-of-the-box thinking, and making sure that everyone at the meeting is encouraged to share their ideas. For those who are quiet during a discussion, encourage them to share: “Sam, you are familiar with this topic. What issues do you think we should be considering?” Allowing all voices to be heard can be a challenge when one person dominates the conversation. Defusing a dominator is a challenge, but you can acknowledge the person’s input while firmly moving on: “Beth has shared her views on this. Does anyone else have something to add?” Often overlooked is that meetings can be tools for leadership development. Asking different team members to plan and lead meetings deepens the leadership bench. Assigning roles can also keep everyone engaged, whether as “timekeeper,” note taker, or “white board wrangler.”

One final tip: We are planning an annual meeting in two weeks. When we realized that we would have a significant number of new people attending the meeting, we asked veteran attendees to be “meeting mentors” for those who will be new to the experience. We’ve heard feedback like, “Great idea – I’m going to steal it for our conference!”

*********************************************************************

Tracks to Success 
Everything You Always Wanted to Know About Fundraising (but were afraid to ask)

by Jay Frost, President & CEO, FundraisingInfo.com

Part 1 – The Top Questions in Fundraising 

Who What When Where Why and How?

Since 2000, FundraisingInfo.com has served as the industry’s version of a cross between “Dear Abby” and “Hints from Heloise”, answering thousands of questions of deceptive simplicity and mind-boggling complexity with direct and practical advice and recommendations.

While the range of what fundraisers need to know is broad, some questions keep coming back to our desk on a regular basis, demonstrating just how much nonprofits have in common in their search for support.

Grantstation invited us to comb through our archives for some of the most important and popular topics to share with you. This week, we have chosen a very common theme: penetrating the seemingly impenetrable foundation.

Question:  We have identified several foundations that give to causes and populations directly related to our organization. However, these foundations explicitly state that they don’t accept unsolicited proposals. Does that mean that interested organizations can email or submit an unsolicited Letter of Intent to introduce their work? Is that even appropriate? How can we go about being invited to apply, introducing ourselves, making them aware of what we do, etc.?

Answer:  You will need to cultivate a relationship with the decision makers at these foundations. Keep in mind that foundations do not make funding decisions. People do. Therefore, the more you can learn about the people making the decisions at these foundations, and the more established a personal relationship with these decision makers becomes, the greater the chances that your organization will be invited to apply and eventually receive funding. As part of this research, find out if the foundation is professionally staffed or more personally run by the donors or board members. Foundations that have staff generally want them to be involved in meeting with potential grant recipients to clarify the foundation’s interests and to guide the potential recipients in the funding process. So, if there is staff, get to know them. Foundations, such as family foundations, that are run by donors or board members should be approached more as you would approach an individual donor. With your research complete, the next step is to then try to arrange a meeting with the appropriate foundation representative to discuss your program. You may want to send a letter of introduction explaining a little about who you are and what you do and letting them know how you will be following up. This is a great activity in which to involve your board members and development committee. Ask for their assistance in scheduling meetings with foundation representatives that they know. Once you have secured the meeting, do your best to learn their goals and objectives for funding as well as their guidelines. Then, follow their advice and guidelines to the letter! In other words, try to build relationships with the staff and/or board members of the foundations first. You will have much more success.

Of course, Grantstation subscribers have a distinct advantage over fundraisers at nonprofits that do not commit to this type of research. Not only will those who research foundations carefully before approaching them have a better understanding of what is possible but they will also be more sensitive to the needs and interests of the individuals behind the foundations, from the donors to the professional staff. This is essential to your success since, as every fundraiser knows, people give to people.

Tracks to Success 
Everything You Always Wanted to Know About Fundraising (but were afraid to ask)

by Jay Frost, President & CEO, FundraisingInfo.com

 Part 2 – The Top Questions in Fundraising 

Who wouldn’t love a grant to hire another fundraiser?

One of the most challenging elements in fundraising may be identifying and approaching institutions for “seed funding.” And developing the strategy, let alone the courage, to approach a foundation or corporation for underwriting the hiring of fundraising staff can be particularly fearsome.

FundraisingInfo.com has received frequent questions on this topic over the years. Here’s one example of how we recommended an organization could address this matter confidently and effectively:

Question:  I am trying to research how to package a request for foundations to provide seed funding for a new staff position with our nonprofit organization. It would be a position dedicated to arts development and special events for our downtown economic development program. Do you have examples of how this is done? How long does the seed funding last typically, and is there a sliding scale basis, etc.?

Answer:  Many foundations have very specific application processes for seed funding. That said, your first step should be to research various foundations to learn about what to include in your application or proposal. For example, you may need to address such issues as:

• how this funding will solve a critical need for your organization;
• your goals and expected outcomes for what the new position will accomplish;
• a timeline for how long the funding is needed and when the position will become self-sustaining;
• how the position is in line with the foundation’s mission and your organization’s strategic plan; and,
• whether your organization has a track record for providing strong programs to the targeted constituency.

Once you are satisfied that you can answer the above questions and have targeted various foundation prospects – using great tools like Grantstation to guide you to them – your next step should be to build a relationship with the decision makers at the foundation before sending any kind of funding request. The more you learn about the people making the decisions at these foundations – and the more established a personal relationship with these decision makers becomes – the greater the chance that an application/proposal will receive funding. Do your best to learn the foundation’s goals and objectives for funding as well as their guidelines. Then, follow the advice and guidelines to a tee! In other words, build relationships with the staff and/or board members of the foundation first, and then make the funding request.

As with every other type of successful fundraising effort, doing your homework first brings big benefits when the time comes to approach potential contributors. This is especially true when you are working as partners in investing in an organization’s resource development capacity.

Tracks to Success 
Everything You Always Wanted to Know About Fundraising (but were afraid to ask)

by Jay Frost, President & CEO, FundraisingInfo.com

 Part 3 – The Top Questions in Fundraising 

We are just coming out of a very difficult time for fundraising. Many have attributed the drop in private giving almost exclusively to the great recession. But there may be another important reason nonprofits have had such a tough time raising money: The need to pursue new opportunities.

Pursuing new funding opportunities carries the twin risks of taking focus off what has worked historically and the possibility of rejection. Board members, in particular, may need a commanding case for investing personal time and energy in meeting prospective new individual donors when much of an organization’s revenue has come from institutional support in the past.

So how can we inspire our leaders to take the leap?

FundraisingInfo.com has received numerous questions about how to effectively inspire board members to engage in fundraising. Here is one such exchange about that particularly thorny matter of approaching individual donors for the first time:

Question:  We are having our annual board retreat in a few weeks. I am on the agenda to give a presentation on why individual donors are so important to our organization. I understand that individual giving is very important, but I’m not sure how to convey to the board why it’s so important and how much I’m going to need their assistance without sounding desperate.

Answer: You may want to begin your presentation with statistics from the FY 2011 Giving USA Foundation report (http://www.givingusareports.org/). Focus on the fact that giving by individuals, bequests, and family foundations totals 88% of all charitable funding. Then compare this percentage to the percentage of funding your organization currently receives from individuals. Is there room for improvement? We have found that this one piece of information is usually very “eye opening.” Next compare your foundation and corporate giving sources to the Giving USA statistics. If you have one or two grants that make up a large part of your overall philanthropic revenue, you might discuss how this could be a problem in the future if these go away. This can help you make the point that by focusing on individual donors, your organization can create a large base of support and a more diverse base as well. As with every other type of successful fundraising effort, doing your homework first brings big benefits when the time comes to approach potential contributors.

There is no question that all sources of funding are important to our organizations. And we are usually gratified—and sometimes even relieved—when we are successful in attracting and retaining a few sources of significant support. The danger, of course, is that a change in economic conditions or any number of other unforeseeable factors can radically alter any single donor’s ability to continue providing that support. Diversifying our sources of support, and increasing the number of donors of all types, helps us to ensure we have the resources we need to carry out our mission whatever the economic climate.

Tracks to Success 
Everything You Always Wanted to Know About Fundraising (but were afraid to ask)

by Jay Frost, President & CEO, FundraisingInfo.com

 Part 4 – The Top Questions in Fundraising

Fundraising is a very old craft and many tools and techniques have as much value today as they did decades ago. Every so often, however, a new pathway to raising revenue appears almost overnight. This challenges fundraisers to determine exactly how much time, energy, and resources to invest as well as when and how to start.

Over the last decade or so, nonprofit organizations have needed to quickly learn about how to build and deploy websites that facilitated online contributions and then launch and manage email fundraising campaigns. Now social media platforms like Facebook, Twitter, and Pinterest, all under seven years of age, are the big unknown quantity to the future of fundraising. Will they provide access to new audiences and revenue or just be a drain on the limited resources of already overextended organizations?

FundraisingInfo.com is receiving an increasing volume of questions on the social media revolution and its relevance to nonprofits looking for new and increasing sources of revenue. Here is one typical exchange:

Question: What is the best reason to set up a Facebook and/or Twitter for my organization?

Answer: Generally speaking, using social media is a good way to generate, sustain, and grow interest in your organization’s work and to empower people to advocate on your behalf across their own individual networks.

With over a billion people around the world using these networks, most of whom would be inaccessible through traditional outreach methods, there are many opportunities to engage existing and new supporters efficiently and at minimal cost. Furthermore, these services are fairly easy to set up and do not require a lot of time to maintain. And perhaps the best part about them is that they are free.

Some of the more popular networking tools include Facebook, Twitter, LinkedIn, and Pinterest. If you are not familiar with these sites, you may want to briefly browse each, searching for some of your top donors, other organizations providing similar services, or even just key words that might lead you to conversations on topics important to your work and the people engaging in those exchanges. This will both give you a feel for the type of back and forth occurring within each platform and inspire you to consider ways your organization might be able to mobilize people to share information on your activities.

While most social networks are not fundraising platforms but rather environments for an exchange of information, they are powerful conduits to your online fundraising efforts. In fact, while only modest revenues are attributable to transactions made via Facebook causes directly, many tens of millions of dollars are being donated through a combination of social media and email campaigns driving traffic to fundraising pages. These numbers are growing very fast.

We are confident that today’s social media fundraising efforts will soon be considered as essential as those of email, telephone, and mail. The key differences are that social media opens the door to donors everywhere to give and ask, often for the first time.

At the heart of this question on social media, as with those on individual and foundation fundraising we have shared in prior articles, is a concern about change.

How can we continue to do what we have done previously and successfully, making sure we neither lose that support or those who provide it, and venture into new approaches critical to future success?

One answer is to approach every such dilemma with an eye to the numbers of the present and projections for the future. We can move rationally toward opportunities that enable us to fund our missions. In doing so, we may need to be as dispassionate about our approaches as we are passionate about the work of our organizations.

Another answer might be found in the words of a distant cousin who famously wrote:

“Two roads diverged in a wood, and I –
I took the one less travelled by,
and that has made all the difference.”

But unlike that traveler, we have the ability to explore new roads and old, often simultaneously, letting us neither forget where we started our journey nor where we want to go.

Posted June 11, 2012

Tracks to Success
The Nonnegotiable Feasibility Study

by Tom Ralser, Principal, Convergent Nonprofit Solutions

Thinking of skipping the feasibility study? While the feasibility study is not the proper place to solicit potential funders for money, it is the nonnegotiable first step to a successful capital campaign. There is much more to it than you might realize, and Tom Ralser of Convergent Nonprofit Solutions will present his thoughts on this subject in The Nonnegotiable Feasibility Study.

Tracks to Success
The Nonnegotiable Feasibility Study

by Tom Ralser, Principal, Convergent Nonprofit Solutions

Part 1

Feasibility Study. Goal Assessment. Opportunity Analysis. No matter what you call it, a face to face meeting with potential funders is the nonnegotiable first step to a successful capital campaign. But let’s be clear: the feasibility study is NOT the proper place to solicit them for money.

Just as capital campaigns have been around as long as fundraising, feasibility studies have been around as long as capital campaigns. Previous articles for GrantStation’s Tracks to Success series (Capital Campaigns: The Next Generation, Parts 1 and 2) have discussed the need to rethink and retool how the campaigns themselves are positioned and run. This article discusses one important issue which is not new, one which is often glossed over, and one new concept to integrate that should provide better results.

The Traditional Point That Is as Valid as Ever

The traditional view that a feasibility study is a necessary first step to a successful campaign has been validated over and over in campaign after campaign. Despite this successful history, one of the comments we hear most often is, “We know we are going to do a capital campaign, so why do we need to spend the time and money doing a feasibility study?” The cliché that pops into my mind to describe this is penny wise and pound foolish. To even consider skipping a feasibility study disregards the pivotal role it plays: it is a cultivation step, not a solicitation step. Solicitations are for campaigns. Cultivation is what feasibilities are all about.

It is simply unrealistic to assume that the very first time a face to face meeting is held, the prospect will pull out their checkbook. Since the feasibility study is often the first personal contact one has with a potential prospect in a fundraising context, it is the opportunity to converse, interact, and truly appreciate their opinion. Their opinion is vitally important: it is what allows the program of work being tested to ultimately become their program of work. With their input reflected in the final program or project, it is now their program or project, which of course, they are much more likely to fund. Their ownership of the program or project leads to larger dollars raised.

The Often Glossed-over Point

While the need for a feasibility study has not changed, how it’s actually implemented varies widely. Although this is the time to engage in real discussion and gather input, there are some practitioners out there that avoid the key ingredient of discussing money. It’s as if talking about possible future investment is unsavory and talking about specific amounts are off limits. While this visit with a prospect is not a solicitation for money, the topic of money must be discussed. Without this discussion, the takeaway is nothing more than a guess, and one could have guessed without going through the trouble of setting up the appointment, preparing material, driving through traffic to the appointment, etc.

Those feasibility study reports that are nothing more than page after page of charts and graphs of opinion read like nothing more than a survey. If the issue of possible financial involvement in the program of work or project is not a part of the feasibility study, it is not a real feasibility study. Certainly not one where I would put my name on the dotted line to then raise that money.

The New Concept That Makes for Better Results

The new concept that I suggest makes for better campaign results is one of featuring outcomes in the feasibility document. Although the meaning of the word “outcomes” is becoming diluted these days, boldly stating what an investment in the project being tested will accomplish is highly effective in terms of prospect engagement and cultivation.

Outcomes are simply the impact the program will have on the nonprofit’s primary customer. They are one step beyond outputs, which are typically the things which are easy to count, such as number of people served, number of classes delivered, or number of jobs created. Outcomes, on the other hand, demonstrate how those outputs manifest themselves: how did the classes change a person’s life, or what does a job mean to the community at large? Getting to the outcome level also allows for the non-emotional motivations of a prospect to be uncovered and later capitalized upon.

A more in-depth discussion of both the traditional and new practices for an effective feasibility study will be presented during a webinar to be held June 28th at 2:00 pm eastern time. Check the online education section on the GrantStation website for further details.

*************************************************************************************************************

April 01, 2012

Tracks to Success                                                                                                                                Common Grant Writing Mistakes You Can Fix Today!

by Alice Ruhnke, CEO, The Grant Advantage