Most board members fail nonprofits as fundraisers!

Train your board members in how to be successful fundraisers. Don't fall into the trap of letting your board members off the hook when it comes to supporting your nonprofit. The need to Give and GET the moneys you need to accomplish your mission.

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Find Your Burning Desire--to fundraise successfully

highlights from Find Your Burning Desire--Day 1

from bestseller 30 Days to Successful Fundraising

Order full text from http://www.amazon.com/Successful-Fundraising-Research-Success-Library/dp/1555716369/ref=sr_1_1?ie=UTF8&s=books&qid=1269530458&sr=8-1

by Dr. Stephen L. Goldstein

You cannot succeed in life or in fundraising if you have an anemic goal, mission, or vision statement.

Successful fundraising is NOT about asking for money; it's about MUCH MORE than that.

Thought rules the world.

Too often, in the process of anticipating the search for funds, fundraisers forget or take for granted the underlying idea that inspired their purpose or porject, focusing only on the acquisition of dollars.

In fundraising, as in business, money follows great ideas.

Sometimes, an idea that started as a burning desire burns out over time and needs to be rekindled.

The best fundraising is selling, pure and simple

“The Fundraising Guru”
Fundraising only gels if you sell well
By Stephen L. Goldstein

I know that people who work on behalf of nonprofits like to think of themselves as doing something for the common good. I know that because, whenever I hold workshops, the first question I ask participants is, “What is a nonprofit?” And invariably, their answers accentuate an altruistic angle. “It’s an organization that serves society,” they say, or one “that helps the needy,” or it’s “a group of individuals who hold events to raise money for worthy purposes.”

The last thing in the world that supporters of nonprofits like to think they are is salespeople; they consider themselves a cut above schnooks selling shoes or used cars. I know that because when I ask my second question—“What is fundraising?”—no one ever answers “sales.” Instead predictably, the answers have a mushy quality equal to the definition of a nonprofit. Fundraising is the “ability to raise capital for an entity,” “stewardship, relationship-building in order to raise funds for an agency,” “an effort to generate funds for a good cause.”

So, it’s time for a major reality check for everyone who works on behalf of nonprofits. From doctors and plumbers to entrepreneurs and artists, successful people know how to sell--well. Fundraising is “nonprofit sales,” pure and simple. If you don’t know how to sell, you’ll never be an effective fundraiser. And if your first reaction to the idea of “nonprofit fundraising as selling” is to hold your nose, you’re probably holding back whatever cause(s) you support. So, here are some basic tips to help you increase your effectiveness in fundraising sales:

1. Selling is the quintessential skill. It’s not about getting others to do something they don’t want to or to buy something they don’t need. At its best, selling is the highest form of communication: It’s about making the perfect match between what you have to offer and what someone else wants. It’s an art.

2. Rejection isn’t rejection. So what if someone says no to you. It’s not the end of your life nor should you punish them on your voodoo doll. Think of how many times you may have said no to someone without meaning any ill towards them—and move on to someone else.

3. Fundraising is not about “the ask,” but about “the listen.” Remember the lyric, “fools rush in where angels fear to tread.” Consider your customers before you chew their ears off about your cause. Too many do-gooder fundraisers have a “prima facie, ipso facto attitude.” They think that all they have to do is blurt out the basics of their case and their prey will open their wallet. Ain’t so! Do your homework: Find out about people you approach. Take an interest in them. You’ll be amazed at how interested they’ll become in you.

4. Commit to selling 24/7. The best/most successful fundraisers even dream about raising money. Fundraising is a frame of mind, an all-consuming passion, not a 9-to-5 job. From a check-out line in Publix to a tuxedo-filled ballroom, fundraiser-salespeople know that there are six degrees of separation—or less--between them and the next contribution they receive.

5. Multiply your donors’ gifts. Donors who are treated well beget other donors. The most successful fundraiser-salespeople know that fundraising only gels if you sell well.
Dr. Stephen Goldstein if the author of 30 Days to Successful Fundraising and www.fundraisingguru.blogspot.com. He is the host of the broadcast radio program, “The Forum for Nonprofits” (www.forumfornonprofits.com), which is also available 24/7 from anywhere in the world.

Nonprofit Boards Fail "The Fundraising Test"

“The Fundraising Guru”
Nonprofit Board x 10 = “Your Fundraising Threshold”
by Stephen L. Goldstein

Ask (too) many people associated with (too) many nonprofits how much money they think they can raise in a fundraising cycle and usually they’ll smile and answer, “As much as we can.” How silly!

Typically, nonprofits operate on a wing-and-a-prayer and live out of hope—that “the money will somehow come.” After all, they think, “we’re doing good so somehow good things should happen to us.” Right!

In addition, my guess is that even if they know better, most nonprofit boards resist anything to do with establishing realistic goals for fear of under-motivating paid staff. Even worse, too often, when boards put a number on how much they need or want to raise, they set an unrealistic, “stretch” goal. Then, having set pie-in-the-sky parameters for their success, they give marching orders to paid staff to meet it. And staff are afraid to challenge their board’s unrealistic expectations.

In other words, fundraising is typically based upon unrealistic assumptions and expectations. No one thinks that there may actually be a formula to apply to answer the question, “How much money can we raise?”

So here is a standard against which every nonprofit can set a realistic yearly fundraising goal. An organization’s “Fundraising Threshold” (FT) is equal to the amount of money its board personally donates annually times 10. In other words, if the board of nonprofit X collectively contributes $100,000, it is reasonable to expect that it can raise $1 million yearly.

Of course, in some years, an organization may have a windfall—a major gift from an estate, for example. That’s always good, just not predictable. By contrast, an organization’s FT establishes the parameters of its ongoing activities, putting it on a reliable, solid footing.

The FT formula is based upon two important assumptions. First, the board of every nonprofit must understand that it is the key the organization’s successful fundraising. The bucks begin and end with them. As fiduciaries, board members are responsible for their nonprofit’s financial health and well-being. They are its prime fundraisers. Paid staff guide and assist them in their fundraising role; they cannot and should not replace board members as prime fundraisers.

Second, board members “worth” anything should be able to get at least 10 others to donate as much as they do. Of course, they may have to approach many more than 10 people to reach their goal, so they have to be willing to pull out the stops. They agreed to be on the board presumably because they were committed to the mission and goals of the organization. So what’s the big deal?

Before even considering making a major gift, potential donors should ask the board member asking them how much he or she gives, how much the board donates as a whole, and at what levels board members give, without naming names. The reason is simple: Why should a potential donor bankroll an organization, when the people who are supposed to be committed enough to it to be on the board don’t ante up?

So, to increase your fundraising goal, determine your current FT, motivate your board to give more—then score a perfect 10!
E-mail your questions and comments to Stephen Goldstein at trendsman@aol.com. He’s the author of 30 Days to Successful Fundraising and the blog www.fundraisingguru.com. You can listen to the radio program he hosts, “The Forum for Nonprofits” 24/7 at www.forumfornonprofits.com.

New Column Every Monday: "The Fundraising Guru"--October 8, 2007

Overcome Your Fear Of Asking For Money
by Stephen Goldstein

At some level, everyone hesitates to ask for money, even for a good cause. We all have a dollar threshold beyond which we are reluctant to go. Yet, unless we break through that psychological barrier, we will stand in the way of our fundraising success.

One surefire way to embolden yourself to ask for money is to remember that you are not asking for yourself. Another way is to know how to ask for money the right way. Follow these 10 tips:

1. Initiate every funding request with a letter. Everyone’s heard stories of how a chance phone call has inspired some millionaire to make a major gift, but as a rule, cold calls are bad strategy. Even if you get through, you will catch people off guard and they are only going to ask for follow-up information. So, it’s better to write and then ask for an appointment. (Exception: Always solicit major gifts in person with someone who knows the potential contributor--and bring written materials personalized for the donor with you.)

2. Show that you know to whom you are writing or speaking. Get to know the people you are soliciting before you meet them. (Don’t be so obvious as to let them figure out you have researched them, by dropping hints of the details of their life, or they may feel like laboratory rats.) Most donors have giving histories, so you should be able to determine their priorities. Let them know why you think your project would be consistent with their interests.

3. Personalize your communications. Never write boilerplate to a possible donor, no matter how small the potential gift. (I know you’re saying, “But I get them all the time.” And don’t you throw them out?) Even in a mass mailing, include some form of personalized message. Handwrite as many personal notes as you can, such as a P.S. If you can’t do them all yourself, get a group of volunteers to help. The more you personalize, the more positive your response.

4. Be clear, straightforward, and precise. Don’t waste people’s time. Let them know exactly what you want from them.

5. Ask for a specific amount or commitment. Always include a clear call to action. Don’t leave the ball in your donors’ court or they may drop it.

6. Be prepared with alternative scenarios. Give choices. For example, ask potential contributors to make an outright gift in the full amount this year, two installments (one this year, one next), or according to a schedule convenient for them.

7. Make it easy for everyone to say, “Yes.” Make your appeal so irresistible and flexible, that no one can refuse to give you something--even a small amount. Shoot for the moon, but if you can’t get it, settle for another constellation.

8. Don’t be afraid to ask after you’ve been rebuffed. Just because people said “No” the first time doesn’t mean they won’t say “Yes” later. Re-ask politely.

9. Ask for assistance. Ask everyone you solicit--even people who turn you down--for names of others who might support your project.

10. Always include a visual that “summarizes” your purpose. Think like a contributor. Ask the way you would want to be asked. Turn your fear and hesitation into dollars.

E-mail your comments and questions to Stephen Goldstein at trendsman@aol.com.

New Column Every Monday--"The Fundraising Guru"--September 10, 2007

Go Around the Fundraising Clock
by Dr. Stephen L. Goldstein

Successful fundraising is cyclical. Your current effort starts where your last one ended. Think of the hands of a clock. Your fundraising cycle should go through four stages and 12 steps, beginning and ending at 12.
Phase 1--Research
Step 1 (12:00-1:00): Review analyses of all your organization’s previous fundraising efforts. Were the dollars raised worth the time, energy, and money you spent? If you’re starting something new, try to find out the effort-result ratio of a project similar to yours.
Step 2 (1:00-2:00): Research what products and programs the people you serve or want to serve need for the foreseeable future. Ask potential donors to what extent they would support them. Avoid preconceived notions and yesterday’s truisms. Look for fresh answers to the question, What will “sell” in the short-run and long-run?
Step 3 (2:00-3:00): If you have a project in place, be merciless in light of what you learn in Steps 1 and 2. Consider modifying or scrapping existing efforts or proposing new ones. Don’t change just to change, but don’t be stuck in the past.
Phase 2-Strategy
Step 4 (3:00-4:00): Based upon your Phase 1 Research, compare the kind of program you want to pursue with funders’ priorities. Do they agree? Are you willing to make any modifications? How flexible are you willing to be—or can you be?
Step 5 (4:00-5:00): Develop your program proposal.
Step 6 (5:00-6:00): Identify the people who you think can help you reach potential funders. Determine those who are most willing to support your efforts and get them to commit to how they will assist you. Draft your proposal materials. Get accurate contact information for possible donors—street and e-mail addresses, phone and fax numbers. Plan your public relations strategy—the media outlets you will use to create awareness of your efforts.
Phase 3—Implementation
Step 7 (6:00-7:00): Share the draft of your proposal with key supporters and reconfirm how they will help you.
Step 8 (7:00-8:00): Produce your proposal. Make it appropriate to the scope of your project—as brief as one page or as elaborate as a printed brochure.
Step 9 (8:00-9:00): Let it roll! Get your proposal to funders. Schedule person-to-person solicitations with potential major donors. Release publicity about your effort, updating it as contributions are made.
Phase 4—Evaluation
Step 10 (9:00-10:00): Collect data. For example, find out why prospects didn’t contribute or give as much as they could have. Did those who promised to introduce you to potential donors really open doors?
Step 11 (10:00-11:00): Analyze your data. What you have learned to improve each of the 12 steps of your fundraising cycle in the future?
Sept 12: Write a concise analysis of your latest fundraising cycle, even if only you and a few others will see it. You will benefit from looking at how well you’ve done in black-and-white. Your fundraising cycle is complete only when you have “closed the circle.” Then, you can apply what you’ve learned at the start of your next Phase 1, Step 1 (12 to 1 o’clock).
Follow the 12 steps of the fundraising clock. Hit the jackpot.
Send your comments and questions to Stephen Goldstein at trendsman@aol.com. He is the author of 30 Days to Successful Fundraising and the host and executive producer of "Fundraising Success," a weekly one-hour program broadcast by WXEL/National Public Radio and available on the Internet from anywhere in the world at any time at http://www.wxelpodcasts.org/.

New column every Monday: "Fundraising Guru"--September 3, 2007

Create budgets that make people want to give
by Dr. Stephen L. Goldstein, author of 30 Days to Successful Fundraising and host and executive producer of "Fundraising Success" on WXEL/National Public Radio, available at http://www.wxelpodcasts.org/ to anyone with Internet access or its equivalent at any time from anywhere in the world

The best way to bolster your case for your fundraising objective is to develop the (usually dreaded) budget. Every lofty purpose has to make dollars-and-sense to a potential funder's critical eyes. But don't look upon the process just as a matter of slapping dry numbers down next to likely expenditures. Turn it into an opportunity to inspire potential contributors.

If you are applying for foundation or government grants, you will have to provide funders the financial information they want in the form they want it. (Whoever has the money writes the rules.) Private donors may not hand you a preprinted checklist, but they don't want to get fiscal mush. Everyone wants clear budgets, timelines, and outcomes. Major donors want to know what percent of your tab they are being asked to contribute. For them, your proposal is a risk and an investment, even if they don't personally receive dollar dividends from it. They want to feel that you are doing something that is likely to succeed and will only be convined if you add responsible financial projections to a description of your worthwhile aims.

Dare to be different. Include a brief, but meaningful, narrative to explain the logic behind your budget proposal. Slip in choice editorializing wherever it strengthens your case. For example, make interpretive statements at strategic points about the cost-effectiveness of your proposal. Guide potential funders through your budget.

Follow these 10 basic guidelines to develop a budget that makes people want to give:

1. Don't pad your request, anticipating you will have a chance later to negotiate a more realistic figure. You will probably have blown it. Funders don't play games or like game-players.

2. Develop two or three different budgets for the same efforts, showing how much or how little you'll be able to accomplish, depending upon your success at getting funding.

3. Stress the "invisible" dollars your organization brings to the table: the value of staff and in-kind servcies, for example.

4. Demonstate the cost-effectiveness of the way your organization conducts business. Use comparative data to show how your expenses are in line with or more economical than those of comparable entities.

5. If it's true, sell funders by proving that you can deliver quality services more inexpensively than anyone else. (Even nonprofits must recognize that you compete in the marketplace.)

6. Resist the human tendency to ignore inevitable, unanticipatable costs and to think that they will somehow take care of themselves. Budget a lump sum for the unexpected.

7. Include dollars for public relations. Describe how the positive press you generate will help you attract additional donations.

8. Emphasize how you can stretch contributed dollars through collaborative efforts with other appropriate individuals and agencies.

9. Budget for your increasing self-sufficiency and, ideally, financial independence. Funders do not want to see a budget that will obligate them forever or that will rely solely upon the kindness of strangers. Be specific about how your project will be able to become less dependent upon contributed monies as time goes on.

10. In addition to budgeting for start-up costs, estimate what it would cost responsibly to close a project, should that be necessary.

A creative budget proposal can be your most persuasive fundraising tool--turning your good sense into other people's generous dollars.

Email your fundraising comments and questions to Dr. Stephen L. Goldstein at trendsman@aol.com.

New Column Every Monday--September 3, 2007

Suggest a feature segment for WXEL/National Public Radio: "Fundraising Success"

From WXEL/National Public Radio: "Fundraising Success," the unique, one-hour, weekly Internet radio/podcast, is now available to anyone with Internet access or its equivalent from anywhere in the world at any time. Just go to www.wxelpodcasts.org and click on "Fundraising Success." You can then hear, download, and forward the program.

August 26, 2007
Dr. Stephen L. Goldstein, host and executive producer of "Fundraising Success" and author of 30 Days to Successful Fundraising, talks with:

1. Former Goldman Sachs executive, Chuck Harris, now Executive Partner, SeaChange Capital Partners (queries@seachangecap.org). He’s already gotten a commitment of $5 million from Goldman Sachs. Now, he’s out to raise $100 million in the next three years to provide multi-year funding for high-performing nonprofits—especially for operating expenses, the most difficult monies to obtain.

2. Beth Kanter, beth@bethkanter.org: Step 2 of 10 Steps to Web 2.0—“Read people’s minds; change their hearts. Liberate their dollars.” How to use http://www.technorati.com/ to search and research the blogosphere for your name and topics of interest. What one nonprofit dealing with the homeless discovered to its surprise when it did so.

3. Weekly feature: “Philanthropist’s Corner” with Sean Stannard-Stockton, author of
the blog, http://www.tacticalphilanthropy.com/, and principal with Ensemble Capital Management (Burlingame, CA): “Family philanthropy for almost everyone.” You don’t need to be a Rockefeller or Gates have a family philanthropy strategy.

5. Weekly feature: “Freebies Galore” with Jesse Carter from Profit Quests, “The People’s Fundraising Web site,” http://www.profitquests.com/: “Raising funds by offering donors the opportunity to dine with celebrities in your community--elected officials, sports figures, TV and radio personalities, etc.”

6. Weekly update from The Chronicle of Philanthropy: Holly Hall on the shortage of major gift fundraisers and the skyrocketing salaries they are commanding.

7. Stephen Rockwell, mailto:srockwell@mcs.org, of Management Consulting Services: Breaking traditional barriers of time and space to raise money. “Not for young people only!” How nonprofits can use social networking sites—like http://www.myspace.com/, http://www.facebook.com/ , http://www.change.org/--to build their presence, create an identity site, and raise money.

8. Regular feature: “Blog Beat” with Peter Panepento of The Chronicle of Philanthropy, www.philanthropy.com/giveandtake: Susan Herr author of http://www.philanthromedia.org/, gives advice for the “discerning donor,” high net worth individuals. Her blog is syndicated daily to 70 community foundations. A new media/fundraising genre: filmanthropy!
E-mail your comments and questions--and suggestions for guest segments on "Fundraising Success"--to Dr. Stephen L. Goldstein at trendsman@aol.com.