This Blog has Moved

This blog has now moved to:
http://JeremyGregg.com/

Free online discussion tomorrow on Donor Retention

Per my Twitter feed, I will be co-leading an online chat on Donor Retention tomorrow through the Chronicle of Philanthropy. Join me!

http://tinyurl.com/cnvhx3

Retaining Your Best Donors

Tuesday, March 31, at 12 noon, U.S. Eastern time
As nonprofit groups grapple with the recession, many fund raisers are seeking out new supporters.

But what about those who already give? Many fund-raising experts say it is important for nonprofit groups to take extra steps to keep their best donors during difficult times.

What are some of the best ways to improve ties to donors? How much communication is too much? And what are some common pitfalls for fund raisers as they seek to strengthen bonds with supporters?

The Guests

Jeremy Gregg is vice president for development at the Center for Nonprofit Management, in Dallas. Previously he served as director of development at Central Dallas Ministries and at the Camp Fire U.S.A. Lone Star Council. He writes the Raiser's Razor, a blog for nonprofit fund raisers.

Stacy Caldwell is executive director for Dallas Social Venture Partners in Dallas. Previously, she was co-founder and communications director for the National Rural Funders Collaborative. Ms. Caldwell has also been a Texas delegate to the National Council of Nonprofits and a member of the Policy Working Group for the Texas Association for Nonprofit Organizations.

They will respond to questions and comments about these issues on Tuesday, March 31, at 12 noon, U.S. Eastern time. Readers are welcome to post questions and comments now.

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Hey, Nonprofits! Wake up! You can innovate or you can die.

Why do we fear ideas? 

I can understand fear of opinions. After all, opinions led us to the slave trade; the Holocaust; nearly every war that man has waged. Each of these tragedies resulted from an idea becoming entrenched in a value set that determined a course of action based on that idea.

But the idea itself was harmless. It was what we chose to do with the idea that led to its horrible manifestation.

On the other side, ideas hold no inherent value. It is implementation that matters; or, more directly, it is innovation... the act of implementing new ideas.

After all, without innovation, we'd still be living in caves or trees. No cars, no air conditioning, no iPods, and, God forbid, no Diet Cherry Vanilla Dr Pepper.

Now, I'll admit it: I can say things that get me in a lot of trouble. Lord knows, this blog has gotten me into more hot water than I'd liked to admit. Much of this has been driven by the fact that I am given to ideate aloud.

So, lest I suddenly clean up my act, let me offer another one of my more unpopular ideas: perhaps there are too many nonprofits. 

Try offering up that insight in a room full of nonprofiteers vying for money. You might as well as stand up and say you hate children, particularly sweet and loving ones.

But let's think about that idea for a moment without encumbering it with a presumed opinion like, "My nonprofit should exist and yours should not" or "The government should be providing these services instead of nonprofits."

Let's just consider the idea. Are there too many nonprofits?

Consider a few facts:

• There are nearly three times as many nonprofits today as there were in 1990; 
  
• Nonprofits now employ nearly 1 in 10 U.S. workers
• Nearly 7% of our country's Gross Domestic Product (GDP) falls within the nonprofit sector.

Here is my prediction:

We will have fewer 501(c)(3) nonprofit organizations in 2011 than we have today. 

One thing is certain: even if the economy were still rosy, thousands of nonprofits will be closing their doors over the coming years.

Why?

Because the IRS recently released its first revisions to the Form 990 in thirty years. This new tax filing for nonprofit is much more robust, including 14 more schedules than the old Form 990 and a much more onerous "core form." Many small nonprofits might struggle to complete this task, and the IRS will revoke their tax status. 

In fact, the IRS will automatically revoke the 501(c)(3) status of nonprofit organizations that refuse to file their mandatory tax filings (shockingly, this is something new... many of the nation's 1.5+ million nonprofits are actually defunct but still show up on the IRS roles).

So, we are guaranteed to have fewer nonprofit organizations in a few years.

Beyond that, this darn economic collapse will destroy many businesses. As Robert Egger likes to remind us, "nonprofit" is just a tax status. In every other way, nonprofits are businesses. So, just like any other small business, nonprofits are going to face some hard times ahead. I expect that this fact alone will lead to the shuttering of many organizations.

After all, the Council on Foundations reported that their members lost an average of 28% of their asset base in 2008. In Dallas, I have spoken with a number of foundations whose losses track higher to the 40% mark. 

One local foundation told me that they have lost so much money that they are going to have to dip into their corpus (the "untouchable 95%") just to cover their existing mutli-year pledges. 

What does this look like?

According to Philanthropy Journal, foundations gave 12.6% of all donations in 2007, or $38.52 billion. A 28% drop in this number is therefore a 3.5% drop in the overall amount of money going to nonprofit organizations, or nearly an $11 billion loss for the sector.

So, just count on the fact that we'll have about $11 billion less in the 2009 Giving USA report next year.

Compounding this problem is the fact that corporations - which donated $15.69 billion in 2007 -- are facing incredible pressures to decrease all costs, and we will see an enormous drop in institutional giving. 

So, don't rely on that large corporation that has always given you $25K for your annual gala. Sure, your board chair might work there and their giving maven might loooooove your event, but this year is going to be different.

Here are the exact words from one of my friends who gives away money for a local bank:

"We just got billions of bailout dollars from the government. The last thing we need is for the community to see my name in lights at the top of your event!"

Couple all of this with the fact that individuals are seeing their stock portfolios drop to the lowest level since 1997, and we're in for a helluva ride. 

But wait, it gets better:

The Obama administration has proposed some changes to the tax laws that would likely result in a decrease in charitable giving among the wealthiest of Americans.

Still afraid of ideas? Terrified at the idea of innovation, and think it's best to stay the course? 

Now is not the time to focus on business as usual; it's time to explore some new ideas for your business!

Some ideas to consider:

1. Can you offset some of your philanthropic dollars with earned income?
2. Can you add more value to your sponsorships by exploring co-branding?
3. Is there a way to scale back your special events without turning off your guests (i.e. are they really there for the chicken dinner, or to support your organization)?
4. Are there ways that you can monetize the relationships that you have with clients and donors without compromising your integrity (i.e. are there companies who would be willing to pay you for favorable introductions to your clients, board or donors)?
5. Do you really need an HR Manager and Payroll Clerk, or could you hire a PEO (Professional Employer Organization)  to drop costs?
6. Could you raise the deductible on your insurance plan and replace it with an internal reimbursement program for employee health expenses  so that a $3,000 deductible walks and talks like a $500 deductible, but your organization spends less and has an incentive to provide wellness programs?
7. Would your administrative staff or fundraising team be willing to earn less in order to work from home?
8. Do you really get the same dollar-for-dollar return on investment by hiring a full-time grant writer compared to a contract grant writer who can  focus on writing grants instead of responding to internal emails?
9. Does every employee really need a computer, or would program people actually get more done if they did not have the distraction of Internet and email? Maybe a shared computer they could each use for 30 minutes per day?
10. Is there a vacant cubicle or office in your building that you could sub-lease to another nonprofit? An attorney? A person with a home-based business who needs a place to get away and focus?
11. Do you really need a print newsletter, or could you send a final notice to subscribers that you are going online in order to maximize the amount of their dollars going to programs?
12. Are there neighboring businesses with whom you could share a printer? copier? parking?
13. Could you consolidate your gala event with a peer organization's event, share the costs and split the kitty? Or. split the costs and each "eat what you kill" in terms of sponsors?
14. Is there a local company that would be willing to pay you to put your logo on their products? (seriously)
15. Could you bring in a volunteer to write hand-written thank you notes to your previous donors to ensure them that they are appreciated now more than ever?
16. Is your own fundraising engine so powerful that a smaller organization in a different niche would pay you to raise money for them? (i.e. could a local school with a powerful grant writing program get paid to write grants for a local animal shelter?)
17. Where do you have ad space that you can sell? Company vehicles? empty wall space? banner ads on Web sites? employee uniforms?
18. Are you so good at delivering that your services that other organizations would be willing to hire your Executive Director as a consultant to help them replicate some of your success?
19. Are there smaller nonprofits that share a similar mission to yours who would be willing to entertain a conversation about a merger?
20. Do you really need to own your building, or could you sell it to someone with a clause that you be provided first right of refusal on the lease?

Keep in mind -- it is often not the answer to these questions that is the most valuable, but the process of reviewing the idea. Considering even the most ridiculous  notion might enable your organization to achieve the breakthrough conversation that takes you to the next plateau of performance.

We fear ideas because we fear the unknown. We fear admitting that death is real, that sickness plagues us all, that our backs are growing less flexible with each passing year and that we may not, in fact, be a unique and beautiful snowflake. 

We fear new ideas because they might reveal that we have been doing the wrong thing, and we know that wasted time is wasted life.

Do not fear the idea. Fear the silent lack of wonder that dooms your organization to the grave before its time. Fear only that you might feel content enough to not desire more for you, your organization or your clients. 

Happy innovating.

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Pondering my Decision

I just completed my second month here at the Center for Nonprofit Management. It's been a fantastic journey of self-discovery and, in some surprising ways, renewal. My eyes have been opened to an entirely different perspective on the work that I've been doing for the past eight years.

I won't lie: it's been a great struggle at times. I miss my friends at CDM. I miss going to work every day above the busiest food pantry in North Texas. Strangely, I miss wondering whether I'll be able to make payroll every two weeks.

OK, well, maybe I don't miss everything...

The Center has been incredible. I've had the opportunity to meet some of the most dynamic organizations in our community, and have been able to share in some powerful conversations with people who are dedicated to changing the world. I've especially enjoyed the opportunities that I've had to sit across the table from full-time philanthropists and say,

"I am not here to ask you for a gift. I want you to see me and the Center as a partner in your effort to change the world. You give money to organizations so that they will be better and stronger. We do the same thing, only we do it through training and consulting. We want you to see us not as a grant recipient, but a mission partner."

Mission partner.

I've been thinking a lot about what that means.

I've especially been thinking about what it means for me on a personal level.

What is my mission? Why did I decide to make this move over to the Center? What is it that I am trying to do over here?

I put some thoughts together over on my ListenTheGift.com blog:
http://www.listenthegift.com/2008/12/what-is-this-all-about.html

I have no final answer. But this line from Jim Wallis is about as close as I've come to understanding why I am here:

"Where your gifts coincide with the crushing needs of the world, there lies your vocation."

Shoulder against the wheel,

Jeremy

This Strange Career into which I've Stumbled like a Hungry Dog with a Diamond Collar

The morning sun pulled back the sheets of the evening with the cold kiss of a late-blooming winter; never a morning person, I found myself yet again stumbling out of bed to reach blindly for my PDA. Through the darkness, the device bobbed and gleamed as a will-o-wisp calling me to the hitherland.

I knew I had to be somewhere, but no idea where and wherefore. My eyes gradually brought the swirling whirl of light into focus, and my calendar for the day emerged.

The schedule danced between poverty and promise.

My life as a fundraiser has been, if nothing else, an exercise in accommodation and vergence.

My morning began with breakfast at The Mansion on Turtle Creek for a meeting with my friend Chuck May from Philanthropy World. We discussed his magazine's new Partnership Plan, an extremely innovative combination of cause marketing and target marketing that promises significant returns with our most important customers and donors. Chuck has been a real mentor for me in so many ways, and I credit him with helping me to grasp what Phil Cubeta has been trying to nail into my head for so long: donors are not checkbooks, but people with needs and hopes and desires.

Chuck has helped me to understand that I am not in the business of marketing, but relationship building. He has been a great friend... who happens to have excellent taste in where to get breakfast.

The day then swung me back to the Center for Nonprofit Management, set in the posh surroundings of the Wilson District thanks to the generosity of the Meadows Foundation. I spent an hour in the company of my colleague, Ray McLeod, discussing the unique challenges presented to non-profit organizations blessed with rapid growth.

I then found myself enjoying the pleasure of a visit from Pat Lockerd, President and CEO of Wednesday's Child Benefit Corporation. This was my first real conversation with her, but she struck me as a visionary leader with a passionate drive to change the world for the better. Thank God for people like Pat.

Together, we conspired how to change the world in various and sundry ways... starting with region three of the Texas Department of Family and Protective Services' Child Protective Services Division. I became all too familiar with the sickening tragedies of the world of foster care when I was one of the pirates aboard the Central Dallas Ministries ship.

Amidst our conspiring, I lost track of time and had to set a date to speak with Pat next week. My day was quickly rushing past me, and I had a pressing engagement.

Doing my best Clark Kent impression, I rushed into the private men's room down the hall to leap out of my snazzy black suit-and-matching red shirt/tie combo into my ratty old jeans and a t-shirt.

I scooted out the door with double-takes from my partner at the Center, Katy Spicer. Moments later, I was driving past the Central Dallas Food Pantry. Standing at the bus with their donated groceries were senior citizens; down the sidewalk rolled a legless man in a wheelchair. I miss seeing these folks every day... more than I ever thought I would.

A few blocks farther down the road, I pulled into the parking lot of The SoupMobile. I quickly found myself in the presence of David Timothy, a.k.a. The Soupman; he is is one of my few links to the sanity of understanding our world's insanity.

David runs The SoupMobile. Every day, he distributes about 500 meals to the homeless on the streets of Dallas.

At least, that was what he was doing from 2003 until earlier this year. When Dallas' new Homeless Assistance Center, The Bridge, opened in May 2008, the City of Dallas changed its laws related to distribution of food within the Downtown area (where most of the homeless continue to gather and live). As such, David had to change his basic operating model.

After five years of distributing meals nearly every day in the same place, David was uprooted and his customer base was destroyed. The reason why I love David's approach is that the homeless are engaged as the ones who distribute the food: this is not about food as much as it's about dignity, respect and trust.

That's one of the essential messsages I learned from Central Dallas Ministries' Larry James. We should not treat the poor like stomachs to be filled, but lives to be nurtured and neighbors to be welcomed into our lives.

David reminds me of Larry in some ways, but mostly in the way that he sees challenges as opportunities. Not one to be intimidated, David likes to model himself after the "greatest underdog story of our time" -- Rocky Balboa.

Seriously. The man plays that darn Rocky theme every time he pulls in to the lot to distribute food.

David graciously allowed my to follow him to his new location today in South Dallas: "right on the front lines of the fight," he called it. Together along with a rabbi and two suburban Christians, I joined a team of homeless people who wanted to spend the next two hours feeding their friends.

For breakfast that morning, I'd eaten a $13 bowl of oatmeal at The Mansion while sipping on $6 coffee. My company and I were dressed in suits and ties, as were most of those around us.

For lunch, I was giving away homemade vegetable beef soup, peanut butter sandwiches and bags of pork rinds. The nicest thing I was wearing was the pair of plastic gloves that David had given me.

Later that afternoon, I was one again in my suit and tie, dashing up the steps of the private Catholic school that I previously attended. I spent the next few hours meeting with the capital campaign committee: I was just another rich white guy in a room full of rich white guys going over lists of yet more rich white guys whom we were discussing more like bank accounts than actual people.

This is my life.

Every day is a balancing act. Every day is a constant struggle with figuring out who I am and what I am supposed to be doing in this world. Every day is challenging, rewarding, frustrating and exhilarating.

And every tomorrow is full of more promise than even the most abundant yesterday.

I have never laughed so hard or cried so much in all of my life.

And what a life it has been, and promises to be.

Thanks for joining me on the ride. Together, maybe we can find a way to change the world?

I'm in if you are.

Officially Launched Site for Community Hunger Day

Community Hunger Day

CDM has officially launched the Web site for the 2008 Community Hunger Day here:
http://communityhungerday.org

I had the wonderful pleasure of being a daily part of this ministry from February 1, 2005 through the end of September, 2008 -- 1,338 days that changed the course of my faith and my life! I am forever grateful to this ministry, and for all that they are doing for our community.

I want to raise $1 for each day that I was here at the ministry: if I hit my goal, that will provide nearly 10,000 pounds of food to hungry families!

Please visit my page here:
http://communityhungerday.org/profile.asp?tpgid=59830874%20

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My Big Announcement

After three and a half years, I have made the very difficult decision to leave my position as Director of Development for Central Dallas Ministries.

On October 6, I will join Cynthia B. Nunn's team at the Center for Nonprofit Management in the role of Vice President of Development.

I admit, I did not see this move coming. I certainly did not look for it!

In fact, were it not for the work of my good friends Jim Chambers and Lesa Engelthaler at TNS Partners, I would never have applied. But Jim and Lesa are not the type to be turned down, and their persistence and sincerity convinced me that this move would be worth exploring.

I was drawn to the prospect of not just supporting the good work of one organization, but improving the work of over 1,300 organizations that are touched by the Center each year. One of my growing passions has been my work as an advocate for the overall non-profit sector, and CNM certainly stands at the forefront of the sector's efforts to improve itself as well as its standing in the community.

And I admit ... my fascination with the work of Robert Egger (founder of the D.C. Central Kitchen as well as the V3 Campaign) played no small part in my decision.

However, I do not plan to leave CDM ... merely to transition from "employee" to volunteer and advocate. Much of my heart and life are now wrapped up in the work of this wonderful ministry, and I have no desire to extricate myself from its future.

Beyond that, as I consider the road ahead, I realize that my path does not take me away from CDM's mission of building genuine community . . . in fact, if I am true to the Center's mission of improving the performance and impact of nonprofit organizations, my path will take me deeper into the heart of CDM's own mission.

This is still a difficult time for me. I am grateful that I am turning my work over to some of the best fundraisers in the city of Dallas: Lisa Goolsby, Jenny Fogel and Katie Goldberg are the "Power Trio" that ensures that CDM's wheels keep turning. Jessica Davila had the unenviable task of being my administrative assistant, and her incredible talents will continue to support the CDM Development team in their work. And thank God for Lisa Robinson, who just joined the organization as its Grants & Contracts Manager: her leadership will ensure that CDM continues its incredible trajectory of 20-30% annual revenue growth for the coming years.

Of course, the hardest part of my decision was facing the reality of being outside the immediate world of Larry James, the President & CEO of CDM.

I have worked with Larry nearly every day since February 1, 2005 . . . and I am continually amazed by the clarity of his vision for the community, the passionate dedication that fills his heart and the unbending strength of his will to improve life for our neighbors.

It is impossible for me to know how much I will miss being a part of this world (which is so perfectly described in these Core Values).

My greatest hope is that I will gain an even greater ability to help Larry and his team in this new position.

I look forward to the challenge.

Here is my new contact information, as of October 6th:

Jeremy Gregg, CFRE
Vice President of Development
Center for Nonprofit Management
2902 Floyd Street
Dallas, Texas 75204
gregg@cnmdallas.org
214.286.3470 ext. 224

oh by the way

I flipped a major digit today:

Goodbye, twenties. Hello, three oh.

Speaking of fundraising... (BabiesForObama.com)

Speaking of fundraising, I've got the new t-shirts for sale at BabiesForObama.com, where we provide "Premium Apparel for Progressive Toddlers and Audaciously Hopeful Babies!"

Get 'em while they're haute.

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Changes to ACFRE Certification Process

For those of us who don't even have our CFRE (Certifed Fundraising Executive designation) yet, this is likely a lifetime of planning away... but it's good to know.

For those of you who DO have your CFRE and would be interested in the Advanced Certified Fundraising Executive designation, this likely comes as great news:

Philanthropy.com reports in their article What Senior Fund Raisers Need to Know:

The Association of Fundraising Professionals this month announced that it is revising the certification examination for its highest credential, known as the Advanced Certified Fundraising Executive designation.No longer will fund raisers seeking advanced certification be expected to answer questions on the exam about federal tax laws or bequests and other types of planned gifts.

For those of you who are in Dallas and who are interested in taking the CFRE, a few of us are organizing a regular study group for a few Tuesdays prior to the AFP DFW Philanthropy Conference 2008 and the CFRE Review Course. We're meeting at the Center for Nonprofit Management from 5:30 - 7:00 on Tuesday June 3 and Tuesday June 10. Let me know if you're interested in joining us!

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Training Event tomorrow: Using MySpace and Facebook to build community

My friends at the Volunteer Center of North Texas somehow conned me into leading this workshop tomorrow:

The Power and Influence of Online Communities

Businesses, universities and now nonprofit organizations are turning to Facebook.com and MySpace.com to spread the mission of their agencies, communicate with volunteers and recruit new volunteers into their organizations. But this is no task for the technologically challenged. Gain knowledge on how to create accounts, and learn the pros and cons of communicating with this medium.

I've been told that 23 people have signed up. Those poor people have no idea what they're in for...


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Do fundraisers have friends?

I have frequently joked with my peers that we no longer have any friends because the world is divided into peers, prospects and donors. For example, none of my high school friends answer my calls anymore since I volunteer to lead the school's alumni fundraising efforts for my class!

These quotes, courtesy of AFP Dallas, brought me some hope....

"Only your real friends will tell you when your face is dirty."
- Sicilian Proverb

"The friend is the man who knows all about you, and still likes you." - Elbert Hubbard, The Notebook, 1927

"A good friend is cheaper than therapy." - Author Unknown

"A friend knows the song in my heart and sings it to me when my memory fails." - Donna Roberts

"You can always tell a real friend: when you've made a fool of yourself he doesn't feel you've done a permanent job."
- Laurence J. Peter

"Friends are those rare people who ask how you are and then wait for the answer." - Author Unknown

"There are big ships and small ships. But the best ship of all is friendship." - Author Unknown

"A true friend is one who thinks you are a good egg even if you are half-cracked." - Author Unknown

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About the Author

Jeremy Gregg is a Certified Fund Raising Executive (CFRE) who currently serves as the Vice President of Development for the Center for Nonprofit Management in Dallas, Texas. He has previously served as the Director of Development for Central Dallas Ministries and the Director of Development & Communications for Camp Fire USA Lone Star Council.

He received his MBA from the Executive Program of the University of Texas at Dallas; he also has a BA in English as well as a BA in Advertising from SMU.

He currently serves on the advisory board for the Prison Entrepreneurship Program, Cistercian Prep School and Friends of the Santa Fe Trail. He previously served on the governing board of the Hollywood / Santa Monica Neighborhood Association.

Jeremy and his wife Natalie are the proud parents of Madeleine; they are also expecting another daughter in January.

His profile is also available on the following social networking sites:

Blogger Profile

LinkedIn Profile

Facebook Profile

MySpace Page