Friday, August 31, 2007

obtuse vicissitudes


"Dungeon Master to the Stars," Phil Cubeta cracks the whip widely and with much aplomb in a blog reference The Raiser's Razor, "Donor Centered Fund-Raising."

Hear ye, hear ye, distant reveller:
the Master now has come to call.
Will ye answer? Draw ye near?
The Master, he has come to call.

Thursday, August 30, 2007

Donor Prospects as Investment Clients

Today, Phil Cubeta's blog "Cultivating Client Values through Active Listening" provides a clear directive for how financial consultants can advise their clients on considering philanthropy within their estate planning.

His comments also provide a clear roadmap for any development officer intersted in major gift solicitation.

The more I read blogs like GiftHub, and the more interactions I have with Central Dallas Ministries' most significant donors, the more that I realize that my job is less marketing than counseling. Donors do not need to be "pitched" or "appealed to." They need to be heard.

What are the ways that a development program can integrate "listening" at every level?

The Shift Movie

Talk about a powerful fundraising program. This is the preview for a film that is not yet complete, and needs donations to be completed. You can learn more about The Shift Movie here:

http://www.theshiftmovie.com/



From the site:


A massive worldwide phenomenon is in progress, offering seeds of great hope for the future.

Millions of individuals, organizations and corporations around the world are waking up and embracing a new outlook with an emphasis on their responsibility to contribute positively to our collective future.

We are in the middle of the biggest social transformation in human history, The SHIFT.

At this critical point, it is imperative we make the masses aware of this global movement quickly. This evolutionary phenomenon is broader and deeper than the most visible SHIFT, the environmental movement. It involves our very understanding of who we are as human beings, and our responsibility to the world and to life itself.

THE SHIFT movie raises awareness to the story of our roles in an evolutionary shift in our collective consciousness.

As it chronicles the faces, the stories and leaders assisting in this social transformation, the film reveals its emergence & meaning.

Wednesday, August 22, 2007

Prayer and Philanthropy

Earlier today, I heard from Mr. Curtis Meadows at the Association of Fundraising Professionals' monthly luncheon. He was articulate on the topic of family foundations, and generous in his personal advice to fundraisers.

(more on this experience later)

And yet, I was distracted. For later today, I will ask a local foundation to provide a multi-million dollar gift to a capital campaign. It is easily the largest single request I have ever made.

Seeking solace amidst my heart-pounding edits of the proposal, I turned to a book my brother once gave me: "A Year with John Paul II." The book provides daily excerpts from JPII's writings.

Today's passage really spoke to me. Entitled, "Charity and Justice Together," the passage is as follows:

"He (FRÉDÉRIC OZANAM, FOUNDER OF ST. VINCENT DE PAUL SOCIETY) observed the real situation of the poor and sought to be more and more effective in helping them in their human development. He understood that charity must lead to efforts to remedy injustice. Charity and justice go together. He had the clear-sighted courage to seek a front-line social and political commitment in a troubled time in the life of his country, for no society can accept indigence as if it were a simple fatality without damaging its honour. So it is that we can see in him a precursor of the social doctrine of the Church which Pope Leo XXIII would develop some years later in the Encyclical Rerum Novarum.

Monday, August 20, 2007

Blog cites The Raiser's Razor

Thanks to Abny Santicola and Fundraising Success for their recent article, "Blog Your Mission," about one of my previous posts.

Performing Arts Center marks 100 $1M donors | Dallas Morning News | News for Dallas, Texas | Arts & Entertainment


The Dallas Morning News reports that the Dallas Center for the Performing Arts marks 100 $1M donors.

That's one hundred people who have collectively given more than $100 million towards the development of the Center. The list includes:

Kenneth and Ruth Sharp Altshuler

Harry W. Bass Jr. Foundation

Boeckman family, through Boeckman Family Foundation and JFM Foundation

Christine and Eric Brauss

Diane and Hal Brierley

Toni and Norman Brinker

Nancy and Clint Carlson

Mary Anne and Richard Cree

Linda and Bill Custard and Frank Pitts

Arlene and John Dayton

The Bradbury Dyer III Foundation

The Rosemary and Roger Enrico family

Amy and Vernon Faulconer

Candice and Robert Haas

Fanchon and Howard Hallam

Gene and Jerry Jones

Kim Hiett Jordan

Mark L. and Barbara Thomas Lemmon

Joy and Ronald Mankoff

Nancy Cain Marcus

Phyllis and Tom H. McCasland Jr.

Mrs. Eugene McDermott

Juanita and Henry S. Miller Jr. and the Miller family (Vance Charles Miller, Patricia Miller Donosky, Henry S. Miller III, Jacqueline Miller Stewart)

Dana and Charles Nearburg

Paulos Foundation, honoring Angela D. Paulos

Sarah and Ross Perot Jr.

Nelda Cain Pickens

The Vin and Caren Prothro Foundation

Emily Frances and John Raymond

Edward W. and Deedie Potter Rose

Sarah M. and Charles E. Seay

Stemmons Foundation

The Theodore H. Strauss family

Margaret and Jack Sweet

Debbie and John C. Tolleson

Ellen and J. McDonald Williams

Jean D. Wilson

Margot and Bill Winspear

Mary and Bob Wright

Cheryl and Sam Wyly

Dee and Charles Wyly

Anonymous (three)

Jane and Ron Beneke family

The Robert H. Dedman family

Leah and Jerry Fullinwider

Hegi Family Foundation

Cinda and Tom Hicks

J.L. and Sydney Thweatt Huffines

The Jerry R. Junkins Family Foundation

The Irvin L. Levy and Kenneth L. Schnitzer families

Nancy and Kenton McGee, Alexandra and Robert Lavie and the McGee Foundation

The Murchison family

Virginia and Robert Payne family

Margot and Ross Perot

Boone Pickens

Caren Prothro

Cindy and Howard Rachofsky

Jan and Trevor Rees-Jones

Peggy and Leonard Riggs

Sue Gill Rose in honor of Margaret McDermott

Peggy and Carl Sewell

Annette and Harold Simmons

Jane and Bud Smith

Gayle and Paul Stoffel

Bea and Ray Wallace

Donna M. Wilhelm

Kathy and Rodney Woods

Anonymous (two)

The Alberts family

The James M. Collins family

Marguerite Steed Hoffman in memory of Edmund Hoffman and in honor of Margaret McDermott

Carole and John Ridings Lee

Anonymous (two)

Alon USA

American Airlines

Bank of America

Brinker International

Communities Foundation of Texas

Dallas Leadership Banking Partnership

The Dallas Opera Landmark Fund

Dean Foods

EDS

Elsa Von Seggern Foundation

Eugene McDermott Foundation

Flagship Corporate Alliance

Hoblitzelle Foundation

JPMorgan Chase – Dallas

Kimberly-Clark Corporation

Landmark Partnership

The Meadows Foundation

Nokia

Once Upon a Time

Perkins-Prothro Foundation

The Rosewood Foundation

Texas Instruments

TXU Energy

For the full story, click here.

Saturday, August 18, 2007

A few things to consider before leaving Corporate America to change the world...


In an interview with The Chronicle of Philanthropy, Laura Gassner Otting, a recruiter for nonprofit organizations and author of Change Your Career: Transitioning to the Nonprofit Sector, talked about the differences between the business and nonprofit worlds — and what type of candidate is most likely to succeed at a charity.

A Recruiter Gives Guidance to Those Seeking Switch to a Nonprofit Career - Philanthropy.com

This remark struck me:

What types of people are most likely to succeed in making the transition from for-profit to nonprofit work?

"Those who are generally most successful at making the transition are those who recognize the distinct differences between the sectors and do not bemoan the nonprofit sector's inability to work more like the corporate world. They delegate with kindness and empathy while demanding accountability. They revel in the diversity of the sector and are adaptable, flexible, and open in their management and communications styles. They are multi-taskers and are able to manage broad portfolios of responsibility. They can deliver impressive results with limited resources. Finally, and equally as important, they have a distinct passion for the work of the nonprofit."


I agree with all of this, though I do not think that much of it is that unique to the non-profit sector. I think it just makes good business sense.

Here are some additional characteristics that I think are important which are, in fact, specific to non-profit management vs. leading a for-profit corporation:
  • They need to understand the unique financing structure of non-profit organizations; the barriers to securing debt and inability to provide equity to shareholders is a major barrier in non-profit financing.
  • They need to appreciate the variety of types of board leadership that is found in the non-profit sector, the various roles that boards fill in leading the organization and how it is different than for-profit corporation's boards;
  • They need to be able to adjust their expectations for allowable staff expenses; I have found that this is a surprisingly difficult issue. People in corporate environments are used to getting reimbursed for many of their expenses -- this is often not the case in non-profits, which face a great deal of scrutiny on such expenses.
  • On a related note, they need to understand the unique pressures placed on non-profits regarding stewardship of resources and expenses. It is very difficult for people who are used to investing significant percentages of sales in advertising/promotions to transition to the "blood from a turnip" mentality of non-profit sales/fundraising.
  • They need to not only be inspiring leaders (which all organizations need), but they need to understand the need to use legislative leadership rather than executive power. Jim Collins talks about this very eloquently in his powerful mongraph, "Good to Great and the Social Sectors." When your employees are underpaid and overworked -- and especially when you are working with volunteers -- you cannot drive performance with a whip. Collins' discussion of executive vs. legislative leadership is a critical distinction that people who transition to the non-profit world must grasp.


DISCUSSION: What are the additional characteristics that you think make a great non-profit executive?

Friday, August 17, 2007

Recommendations for a great non-profit newsletter


The Nonprofit Communications blog recently publised Five Questions about Print Newsletters, which provides some excellent guidance for what makes a good nonprofit newsletter. In summary, the author recommends that a non-profit newsletter should be:

  • Focused on your specific target audience.
  • Limited to four pages in most cases.
  • Published quarterly.
  • Contain articles no more than 600 words.
  • Feature no more than two fonts.
  • Be printed in four-colors.
Below are some of my reactions, as well as some additional recommendations for items that need to be considered when publishing a newsletter. I would love to hear your thoughts, as well.

Focus on specific target audience
This is an obvious but often overlooked point. She spells it out very well here, but I think that an even better explanation can be found at the Donor Power Blog's reaction to her post, "One thing you need to know about your nonprofit newsletter."

As with most parts of the typical non-profit donor program, a newsletter generally lacks a specific goal. Staff and board want it to bring in funds, sure, but they also drop senseless lines about how the newsletter needs to "raise awareness," "build the brand," "change people's attitudes" and "put a stake in the ground."

On all of these things, I think that NPO staff/volunteers are mostly delusional. Donors are not looking at newsletters for these things. At least, those are not the main things that they expect. They want to know:

- Where was my gift spent?
- What did my gift do? (i.e. did it have an impact?)
- Who else supports this organization? (i.e. am I a fit with this organization?)
- Why should I continue supporting this organization?

This last question is the hardest to answer, but answering it is the critical task for any newsletter. Focusing on this goal will help non-profit newsletters to focus on their core audience -- donors.

Four pages limit
This makes a great deal of sense. The cost of adding pages -- not just the printing/mailing, but the staff time required to write and design extra pages -- is just not worth it when most readers just flip it open for a few minutes at most. If you can't raise money in the first four pages, the additional two won't make it easier. Focus on the donor, with the goal of telling them why they should continue to support you.

The only difficulty is that four-page newsletters generally require folding/sealing in order to have a remittance envelope. One of the things that we are dealing with at Central Dallas Ministries is our attempt to mail our newsletter "flat" (like a magazine), so that recipients are more likely to read it. When it mails folded, half of what they see is the side with the mailing label (which is reduce to 1/4 of what they see if it is mailed flat and unfolded). The thing you want to avoid is having your newsletter be thrown away without being opened (let alone read).

Published quarterly.
Considering how much mail some of your donors receive, this seems like a maximum amount of times you want to send your newsletter. A monthly newsletter sounds overwhelming -- unless it's a two-side piece with just the bare bones.

Whatever schedule you use, be sure to deliver your newsletter reliably and regularly. This makes it easier on your staff to produce the piece, and donors will be more receptive to it.

Contain articles no more than 600 words.
Amen! I struggle with this a great deal in my work at Central Dallas Ministries. I frequently end up with articles at nearly 2,000 words and try to cut back towards half that much.

I am going to start requiring this limit for our articles. It is unreasonable to expect that donors will read more about our organization than a newspaper article that interests them.

Feature no more than two fonts.
This is pretty clear. Featuring too many fonts looks very unprofessional, like you just learned how to download new fonts and are trying to take advantage of your new skill. Allow fonts to become an unnoticed but effective medium for your message.

Be printed in four-colors.
I actually disagree with this point, in some cases. At Central Dallas Ministries, we are often accused of producing direct mail that looks too "fancy." For a social services organization -- particularly one the deals with poverty -- it can look wasteful to produce a full, four-color newsletter with beautiful photos. Donors want to see that their money is being spent on feeding the hungry, not buying ink.

It's the opposite for arts organizations. They are supposed to look slick and cool, and cutting corners to save a few bucks implies that they don't have the capacity to advance the arts. The nature of your mission should determine the look and feel of your newsletter: everything from paper quality to ink colors.

A few final thoughts
Some additional things to consider when looking at your newsletter:
  • Build Your Newsletter Around Images, not Words. Tell your story with pictures whenever possible. Never use the same photo twice, however compelling it is (readers will think that they've already read the piece). Have a photo on every page. Integrates charts and graphs, as well, since different people are drawn to different images.
  • Small is Big. Don't talk about 10,000 starving orphans; talk about one whom you were able to feed. Don't talk about needing $1 million to meet your annual budget; talk about needing $1,400 to pay your supply budget. Allow your readers to see how they can fit into your organization by providing manageable opportunities for them to get involved.
  • Consider using postcards instead of newsletters. Their printing/mailing costs are dramatically cheaper, and there is no concern about whether or not donors open them. The problem is obviously space and lack of remittance vehicle, but a postcard can deliver a targeted message that drives readers to your Web site for their desired action (i.e. donation, registering to volunteer, etc.)
I'd appreciate any feedback that you have on this topic. What are your own do's and dont's when it comes to newsletters?

Thursday, August 16, 2007

Neighborhood Newspaper rallies behind Rain-Soaked Shakespeare Dalla

The local Lakewood-Now.net online community newspaper published this article to help our friends at Shakespeare Dallas:

"The unusual weather over the last many weeks has adversely affected our friends at Shakespeare Dallas.

Ninety percent of their performances have been affected by rain or lightning, and park admissions are down almost 60% this year.

We urge Lakewood-Now readers to consider a donation to the organization's “rain fund,” to sustain them through this unfortunate turn of events—something of a tragedy, one might say.

Download the Rain Fund donation form here (PEF file) and send it with your check to Shakespeare Dallas. Tell them Lakewood-Now sent you.

"They'll appreciate it, and so will you when this long-time Dallas arts institution can finish the current season with its usual flair and return next year for even more comedy and tragedy right here in east Dallas."


Tuesday, August 14, 2007

Seminar tomorrow you should attend

A few days ago, I blogged about tomorrow's panel discussion, "Essential Collaboration: Fund Development & Finance." It's not too late to register to attend:

http://my.cnmdallas.org

Hear from:
- Michelle Monse, President and CEO of the Carl B. and Florence E. King Foundation
- Tessie Holloway, President and CEO of the Lupus Foundation of North Texas
- Elaine L. Sommerville, CPA
- Sheila Marlow, CFRE, Senior Development Officer for TWU (Texas Woman’s University) and past chair of the D/FW Philanthropy Conference

After all . . . it's August. Do you really want to sit in your office all day? :)

Friday, August 10, 2007

Call for Articles... Inspire Change

I received the following from Candace Gray of Gray Consulting Group. You can see previous issues here:

http://www.inspirechange.net/

Don't have time to put together a full blog, but have some thoughts to share about fundraising and nonprofit management? This is a great opportunity to share your wisdom with the world.




"We are currently accepting articles for future issues of Inspire Change. As you may recall, Inspire Change is a quarterly, electronic publication designed to provide practical information to nonprofits in the Dallas/Fort Worth Metroplex. Developed by Gray Consulting Group, the purpose of the webzine is to communicate best practices and new ideas that improve the performance of nonprofits. Articles will be geared toward the interest of staff, volunteers, board members and supporters of nonprofits.

Submission Guidelines
"We seek articles from local and national experts with knowledge on various aspects of nonprofit management and programming. We desire contributors with a passion for serving the nonprofit community, including nonprofit executives, consultants, funders and others. Content may include "how to" articles on subjects such as fundraising, leadership development, board development and program innovation.

"In addition, the publication seeks articles that provide the Dallas/Fort Worth perspective on issues such as education, economic development, faith- based initiatives, youth development and affordable housing. Articles should be thought-provoking, solution-oriented and practical. Articles must not be strongly promotional in nature. The length should range from 500 to 1,000 words. Shorter articles such as book and technology reviews are also welcomed. There is no compensation for articles published, however, authors do receive a byline at the end of the article with a website link and contact information.

"To be considered for the next edition, articles must be submitted by August 17th, 2007. 2007. Please contact (Candace Gray) at 214-275-7510 or cgray@candacegray.biz if you have any questions."

Thursday, August 9, 2007

Essential Collaboration: Fund Development & Finance

My friend Sharon Bailey, Director of Education for the Center for Nonprofit Management, has invited me to facilitate a panel discussion on August 15, 2007 from 1:00 - 4:00 p.m. The session is entitled "Essential Collaboration: Fund Development & Finance." See below for details -- I encourage you to join us!


The event will feature the following panelists:

There also may be another surprise guest, as we are awaiting confirmation from one more person.

I encourage you to attend this event, which will discuss the importance of accountability, stewardship and effective financial management within both the development and finance department of a non-profit organization. You can learn more here:

e-Events : Event Details and Registration

Here is the event description:
Enhancing how the finance and development departments work together can benefit the entire organization, freeing time and energy to focus on achieving the agency's mission. Accountability and transparency are no longer idealistic concepts, but rather requirements for nonprofits to continue to attract resources and demonstrate effectiveness. This session provides participants with effective tools and practices that these two critical departments can use to support working together effectively and efficiently. Content includes an overview of the different objectives of the fund development and finance departments; identification of the most common obstacles to interdepartmental coordination and cooperation; best practices to work through roadblocks; structures and routines that smooth the way to a strong collaborative working relationship; and other tips that help ensure consistency of information and the highest possible level of accountability.

Please help me to spread the word about this event. We'd like to have a large group to hear from these guests, and to facilitate a good conversation.

Wednesday, August 8, 2007

Who should change -- grantmakers, grantwriters or both?

So much is made of so little, it seems. But yes, I will give in to the tendency to talk about grantwriting.... knowing full well that the vast majority of funding comes not from foundations (less than 10%, last time I checked) but from individuals (over 70%).

That said, here are two very interesting articles related to writing grants... the first is from Phil Cubeta, which includes a link to a longer article on this same topic:

Gift Hub: 12 Characteristics of a Good Proposal

The second, from the Foundation Center, is posted below the link for those who don't want to click (or for those who are subscribing to this blog via email).

PND - News - Funders Recommend Streamlining Grant Process, Survey Finds

An overwhelming majority of grantmakers want to streamline the grant application and reporting processes for nonprofits, a new survey by Harvard University's Hauser Center for Nonprofit Organizations and the New York City-based Nonprofit Finance Fund finds.

Ninety percent of the more than eighty survey respondents recommended simplifying grant application forms and reporting requirements commensurate with the size and scope of a grant opportunity, while almost 80 percent indicated that most grants should have fewer line items and other restrictions. In addition, 83 percent said foundations should increase the size and duration of grants, even if it meant that fewer nonprofits were supported, 70 percent were in favor of standardized grant application forms and reporting, 94 percent indicated that foundation relationships with grantees should move from oversight to partnership, and 89 percent said foundations should jointly decide with grantees on evaluation tools and metrics. The survey respondents included attendees of a recent Hauser Center-NFF symposium called Capital Ideas: Moving From Short-Term Engagement to Long-Term Sustainability (73 pages, PDF), as well as members of Grantmakers for Effective Organizations.

"Funders can do a great deal to strengthen the health of nonprofits by changing how they structure, steward, and share funding," said Kathleen W. Buechel, a visiting practitioner at the Hauser Center and co-convenor of the symposium. "The survey findings and symposium proceedings highlight promising practices that are well within the reach of most funders....Taken together, these accessible reforms should help more nonprofits deepen their capabilities to meet more of society's most pressing needs."


DISCUSSION: What are your reactions as a fundraiser to these changes?

Philanthro-lists

Some interesting lists published recently:

Tactical Philanthropy: Best Philanthropy Books

Charity Navigator: 10 Slam-Dunk Charities

And, my personal favorite, a list of words to avoid in your fundraising pitches:

The Communications Network: Jargon Finder

Tuesday, August 7, 2007

Blogging: Outreach, Mission... or both?

Amidst the growing number of blogs about blogging, I've noticed a trend towards focusing on how blogs can be used as tools to tell people about your mission. Few, however, have talked about how blogs can be used AS mission.

Tactical Philanthropy recently published a blog about Philanthropy Radio on NPR Member Station, in which they outline comments by the Chronicle of Philanthropy's Peter Panepento on the use of blogs by non-profit organizations as well as those commenting about philanthropy. Mr. Panepento cites some wonderful blogs, include Larry James' Urban Daily.

At Central Dallas Ministries, we currently have two blogs (I don't consider the Raiser's Razor to an extension of CDM, though I often write about it). Neither is specifically used as outreach for fundraising purposes, though both affect fundraising. The first is written by our CEO, and was mentioned by Mr. Panapento in the article above as well as in my blog earlier this week. Larry's blog brought in around $70K last year from his readers, but the more important contribution is how it creates a discussion among an international group of readers about the issues that are central to our mission (poverty, hunger, healthcare, housing, etc.).

In other words, the blog itself is advancing our mission of advocating on behalf of the poor. Raisiing money and cultivating relationships with donors is secondary.

This is the same thought that drives our second blog, which is written by the youth and staff of our After-School Academy:

Our ASA Family's Meaningful Relationships

The blog is fascinating. As the director of the ASA, Dr. Janet Morrison, recently wrote in her own blog, entitled Who said money can't solve problems???:

By blogging, kids are reading their own writing and the writing of their friends. They are learning the importance of learning to type. By labeling their blog posts, they are picking out the main idea. As we ask the kids to develop questions for the audio posts and voice recorders, the kids are finally beginning to gain a curiosity for what's around them. While the questions started out as closed-ended questions like, "Do you read healthy books?" "Do you work out when I'm not home?" they have developed into open-ended questions like, "What is fiber?" "Why do people say carrots make you see better?" "How does eating fruit make your muscles bigger?" We have now started researching these questions on the internet. They are developing critical thinking skills!

Thanks to a grant from the Communities Foundation of Texas, we were able to provide the hardware and software necessary for these youth to develop their blogs. For many, this is their first time to see their own thoughts "published" for people to read who are not just their their family, friends and teachers.

It might seem a small thing, particularly when considering how much time is spent on it compared to the potential return. That was my perspective, I must admit. However, we recently had a meeting with a donor who was so impressed by our ability to provide such learning opportunities to young people that he wrote a $100,000 check to us ON THE SPOT.

Is that going to happen regularly? Certainly not.

Was the blog the reason why it happened? Not entirely.

Was the blog an importnat factor in the gift, and could our continuation of the blog help us to develop stronger relationships with donors in the future? Definitely.

It is critical that in our work of raising funds for our organizations that we not lose sight of the far more essential work of our organizations. Indeed, by focusing on mission rather than money, I truly believe that we will raise more money and build stronger donor relationships than if we simply built all of our communications and outreach around fundraising.

Monday, August 6, 2007

The Changing Philanthropy Scene

I recently discovered the "Inside Philanthropy" blog of the Philanthropy Journal. They seem to have some interesting articles that are not the typical "look at how great it is to be in philanthropy!" articles of other blogs. This one really grabbed me:

Inside Philanthropy: Nonprofits need investment capital

I was also impressed by their blog "Foundations need to get real." Hopefully, they will continue to challenge our sector to think about its funding models and business pracatices.

A similar discussion is going on at the Foundation Center's "Philanthropy News Daily." Here is a recent articke that they wrote about SeaChange Capital Partners, "an organization founded by two former Goldman Sachs partners, is applying Wall Street methods to help charities build their capacity, the New York Times reports." Here is the article:

PND - News - SeaChange Capital Partners Employ Wall Street Methods to Assist Charities


The article includes an interesting presentation on how College Summit and Teach for America both used these tactics to raise significant "growth funds." I wrote about this some last week in a blog, Raising Venture Capital for Philanthropy, about how some NPOs are using IPO-type strategies to raise funds.

One thing is certain: this is a very interesting time to be a fundraiser. Indeed, one of the core aspects of our basic reporting functions is under review:

Proposed Changes to the Form 990

In addition, there are many ongoing discussions about how we hold ourselves accountable to a high level of transparency and stewardship. Check out this blog:

NONPROFIT EYE: DON'T TELL THE DEVELOPMENT DEPARTMENT

In fact, some people are talking about changing the name of the non-profit sector:

Philanthropy.com: What's in a Name?

What else is in the future for non-profits/social enterprises/community-owned organizations/charities/___(insert your favorite alternative here)___?

Recommended Blog: Larry James' Urban Daily

I have the great privilege of working for Larry James, President and CEO of Central Dallas Ministries. Larry is a great leader, with a strong vision for how to improve our community for the benefit of all. I have benefited tremendously from reading his daily blog, Larry James' Urban Daily, which was recently written about by the Chronicle of Philanthropy:

Dispatches From Urban America - Philanthropy.com

Larry was also recently quoted in the Dallas Morning News, speaking about CDM's commitment to an "organizational minimum wage" of $10 per hour:

Workers see relief in minimum wage hike | Dallas Morning News | News for Dallas, Texas | Business

--------
On a related note, Central Dallas Ministries just opened the ticket office for its September 24, 20007 concert at the Morton H. Meyerson Symphony Center in Downtown Dallas, Texas. This Monday evening event will feature LeAnn Rimes, and all proceeds benefit the programs of Central Dallas Ministries.

For more info, visit:
www.CentralDallasMinistries.org/ANTR

Saturday, August 4, 2007

a fundraiser's confession, on the day of his birth

Alas, alas... another year has passed, and August 4 is here again. With the passage of this day, I enter another year of life.

I have never liked August 4th, not since I was a child. Now, as I stand but a year removed from the beginning of my fourth decade in this life, I feel compelled to say something noteworthy .... something profound, something that will compel tears and the lighting of large fires. I feel a strange need to blow a trumpet (a feeling exaggerated by the fact that I have never done so).

After all, recalling my thoughts on this same day ten years ago, when I stood on the threshold of my third decade, I thought that I would be dead by now.

(28 was the end of youth, it seemed, and all things after were for those who burned less brightly)

Yet here I stand, 29, and still drawing breath.

So much for my bold plans. (Thank goodness.)

I have no proud statements or wise proclamations. Merely this, my true confession: I did not want to be here. I had not plans to be here. I did not even know this "here" existed.

Yet here I stand, 29, and still drawing breath (though with more difficulty than before).

Here I stand, 29, and happy. This last part is, to me, a grand surprise... owed far more to my lovely wife and magnificent daughter than to my own efforts.

Indeed, here I stand, in a home of my own. 29, with a job in a field that was foreign to me when I was a young pup of 19 forecasting my life and seeing an end within a decade.

I can hear the adolescent self-importance of my voice now...

"Fundraising? Your JOB is 'fundraising'? Are you KIDDING ME??!?!?"

Ahhhh, yes, not a poet but a professional beggar. I spend my days thinking about money: how to get it, how to explain the way it is used, how to figure out where it will be coming from tomorrow. All day long, I am thinking about money.

Or am I?


Is it really the money that drives me, that haunts my waking moments? Or my desire to crack the code that binds resources from achieving their potential? Am I chasing the elusive dollar, or running after a world that is only a breath away from whispering, "I am"?

This is my confession: I am the Director of Development for a charitable organization that desperately needs more funding, and I hate asking for money.

My job, you see, is not really about money. It's not about resources of any kind. It is certainly not about charity. To call it "investments" is to cloud the issue.

It's about relationships.

It's about getting to know my neighbors: Those with money, and those without.

It's about being a part of my community, about connecting people to opportunities to realize their own potential (again, this is for those with and without wealth).

It's about spending my time finding ways to love people and to help them love each other.

If I have to ask for money, I have failed in my higher calling.

I love my work. It involves money, yes. But I do not love money. I love what drives a person to give up their money, and I love what that money can become when put in the right place.

I love my neighbors. I love my community.

I love where I am, all the more because it was not where I wanted to be, but where I was needed.

This is the green light across from my dock, Gatsby. It is the light that keeps me awake, staring into the great and gaping maw of the night. This is the light that drives me, beating on...

Just another boat borne back ceaselessly into the past? Or am I flowing onward, upriver, somberly into the heart of an immense darkness?

We shall see where it leads me, this will-o'-the-wisp.

I am grateful for your company along the way.

Upriver we go .....More on Philanthromapping



Several posts ago, I commented on Phil Cubeta's challenge to me... or, more appropriately, to our sector. I found a possible response to his challenge in item #4 on this blog: Tactical Philanthropy: Top Five Ways to Know Everything About Philanthropy.

Get Xigi With It: Are you on the map? In their own words, “xigi (pronounced "ziggy") is a social network providing market intelligence and mapping tools to make sense of the capital market for good.” Xigi let’s everyone and anyone find the connections between various players in the fields of philanthropy, social enterprise, and the other constantly evolving fields of “doing good”. Find the people and entities participating in the philanthropic capital markets and identify the deals they’re working on together. Try browsing the various member of the network and you’ll quickly find people and organizations you’ve never heard of who are working on amazing projects.


Further upriver...

Friday, August 3, 2007

Raising Venture Capital for Philanthropy

I previously wrote about Homeward Bound's IPO -- not an Initial Public Offering, as it is known in the corporate world, but an "Immediate Public Opportunity ... to end homelessness." Up to 200,000 "fundraising shares" have been made available at $32 each.

The first share was famously purchased by Warren Buffet.

They are calling this the "first-ever charity IPO" . . . but this actually builds on efforts previously launched at other organizations, such as College Summit. For example, see this April 2006 story in Fast Company about a "private placement" that raised $15 million from 10 investors to support the organization's growth:

Next: A Nonprofit IPO?

Locally, you can read about the efforts of George Ellis in a recent Philanthropy World Magazine. Ellis helped "introduce venture philanthropy to Dallas." He has been critical in the growth and expansion of the Entrepreneurs Foundation of North Texas, led by one of the strongest Executive Directors in our community (Pam Gerber). Ellis and Gerber are working to help companies "do well by doing good," and their perspective on philanthropy builds directly on the work of the venure capital markets.

In fact, you can hear an interview with Pam Gerber here:

Philanthropy World on MN1 [feeds.mn1.com]

At CDM, we've been discussing how to apply these principles to our work. We've made a great deal of progress over the past year, thanks in great part to the work of Karen Waller, Teresa Hiser and our friends at the Dini Partners (who have been advising us on the development of our ongoing capital campaign).

These concepts are not new for such campaigns. However, we are now thinking beyond the simple construction of the building, and to the significantly expanded operations that we will inherit once the buildings are complete. We find ourselves asking:

  • How can we possibly ramp up our revenues by 50% over the coming years simply to handle these expansions? (not including the other organic growth that will occur in our other programs)
  • We do not currently have an endowment -- is there a role for such a funding vehicle within our organization? How could we build it, while the demand for funds is so tight and the organization continues to grow at 25%+ per year?
  • Instead of an endowment, is there a way to amass a large amount of "working capital" that we can use to fund our existing operations while refocusing our fundraising energies on the capital campaign?
  • How much will our social enterprise program be able to contribute through its resale operations and car auction program? Will these efforts even be generating a positive cash flow by the time these expansions arrive?
  • What do our donors -- particularly donors to our capital campaign -- expect of us in terms of expanding our annual fundraising? Are their own commitments going to grow along with their expectations, or are they simply wanting us to find new sources of support?
  • How can we move beyond the day-to-day, keep-the-lights-on mentality towards a longer-term, strategic perspective on fundraising?
  • What would a donor need in order to consider a sacrificial, major gift to be used in an unrestricted way to expand our work?
  • Is there a way to build a case for significant, multi-year commitments from donors?
We are not sure if this is venture philanthropy or simply effective fundraising. Whatever we call it, we understand that our current practices must change and we must adapt to the changing needs of our high-impact investors.

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