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May 23

UnderDeveloped: A national study of challenges facing nonprofit fundraising

By Feature, Fundraising

The 2013 study, UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising, revealed that many nonprofits are stuck in a vicious cycle that threatens their ability to raise the resources they need to succeed.

A joint project of CompassPoint and the Evelyn and Walter Haas, Jr. Fund, the report found high levels of turnover and lengthy vacancies in development director positions throughout the sector. More significantly, the study reveals deeper issues that contribute to instability in the development director role, including a lack of basic fundraising systems and inadequate attention to fund development among key board and staff leaders.

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May 23

Resetting development: Highlighting the bright spots

By Feature, Fundraising

By Yasya Berezovskiy, associate project director of learning and evaluation, CompassPoint |

What will it take to reset entrenched and ineffective development practices towards a fresher mindset and more effective approach?

Prompted by the widespread fundraising challenges identified in UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising (a joint project of CompassPoint and the Evelyn and Walter Haas, Jr. Fund), the Haas, Jr. Fund convened a Resetting Development work group focused on highlighting potential solutions to chronic fundraising challenges.

Underdeveloped‘s findings resonated. Development staff felt validated. Executive directors were motivated to address these issues in their organizations. But how? What’s next? Are there groups who are successfully raising money from individuals in a way that’s personally sustainable for staff and financially sustainable for the organization?

At the heart of the Resetting Development project are these two questions:

  • What can we learn about a “culture of philanthropy” as a way of breaking the vicious cycle of chronic fundraising problems?
  • What can we learn from organizations that are beating the odds? https://www.compasspoint.org/blog/resetting-development-highlighting-bright-spots
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May 10

Anchors provide foundation for nonprofit planning

By Feature

By Lynn Sygiel, editor, Charitable Advisors

Ask any organization — for-profit or nonprofit — about strategic planning and most will tell you it’s an important part of their operation. After all, what can be wrong about planning for the future?

Nothing, says Fort Wayne-based consultant Mike Stone, as long as it’s done the right way.

Stone, the founder of Impact Strategies Inc., cautions that when it comes to strategic planning, nonprofits should have a different focus than for-profit companies.

There are things that for-profits can do that nonprofits cannot, and being constrained by their social mission is inherently limiting. Nonprofits not only have to find the consumers, but they have to find someone willing to pay for the service to clients.

“They are fundamentally chained there. I think it changes the nature of what strategy is. I think for a long time, it did a disservice because nonprofits tried to use a model that wasn’t appropriate,” said Stone, who has been an adviser to nonprofits for the past 11 years.

“Unfortunately, nonprofits have adopted the processes that weren’t always a good match. There are enough differences fundamentally between the for-profit and the nonprofit world that the wholesale importation of the for-profit model doesn’t work well,” he said.

“It was different when money was flowing in the ’80s. There were still government contracts and nonprofits were popping up to provide services. I think what’s changed is that now we’re moving in the opposite direction. Money’s become much more tight and people are having to return to their core. I’ve seen people start to jettison programs that they took on at the time they made sense. That’s just a luxury I just think we don’t have any more.”

What works, according to Stone, is treating an organization’s strategic direction much like an individual’s vocation, and creating a framework to make decisions.

“You have this notion of who you are as an organization, why you exist, what defines you. When you express that, you pursue a social mission. That’s the essence of what strategy does.”

He learned this lesson when he was working as a career counselor. Prior to Stone’s work advising nonprofits, he spent over a decade working in higher education and then as a program officer and executive director of a community foundation. Stone would tell students that it was crazy to think that a 22-year-old could predict a career path for five years or 20 years in the future, without spending time figuring out what is important. This is much like the advice he gives to nonprofits.

“It’s just as crazy for nonprofits today to anticipate what decisions they are going to make over the next three to five years,” he said.

For the nonprofits he works with, he has developed a unique approach to strategy development to address two key features of the nonprofit environment: uncertainty and unpredictability.

“You learn that sometimes you refine your self image, you say, ‘You know what, I’m better at this than I thought, but what I’m not as good at this as I thought,’ and you adapt. Individual vocation is akin to organizational strategy. “

His approach is to have an organization know what its anchors are and create a decision-making framework with those anchors firmly in mind.

Stone understands it’s hard work. Using his approach, organizations have to define internal anchors and have deep, serious reflective discussions about motivation and identity.

“Understand enough about what the organization really is and then move out from there to evaluate opportunities,” said Stone.

The balloon guy often placed at a car dealership is used to illustrate his point.

“If you think about balloon man, he’s anchored, and he never moves. He claims the spot. You don’t know which way the wind’s going to blow, but you’re going to have to respond, and have got to be anchored somewhere.”

Too often, he said, nonprofits are opportunists and grab the next shiny object or opportunity.

“Let’s start with, OK, who are we? Would that shiny object, if we pursue it, change who we are? Does it enhance who we are? Is it a distraction?”

Stone sees a strategic framework as a living document and separate from a plan. The framework helps define an organization’s limitations.

“Affirm that this is who you are, and this is the best expression of who you are. The external environment has changed, so what an organization needs to do is going to change. That’s the plan, but the framework is still legitimate. That’s why you separate the two,” Stone said.

All kinds of plans — from staff level plans, fundraising plans, board plans – can be attached. Stone said nonprofits are good at planning, that’s never been the problem, but too often have the detail without the vision or without the purpose.

“This goes back to bringing it over from the for-profit side. I think that’s where the confusion is. There’s a strategic direction that’s portrayed in the framework and there are all kinds of action plans that have to be in effect to start moving in that direction. Action plans are going to come and go and become obsolete.

“Your vision or your direction as portrayed in that document, should be pretty durable at any given time and context. The organization’s anchor points can mean something different in 2008 than they meant in 2000. But hopefully, they had integrity and didn’t shift. They just had to react differently because the wind was blowing differently.”

The modern paradox is when you lose strategic focus in an effort to save an organization’s bottom line, the nonprofit risks losing its soul.

“And to me that’s what strategy is. How do we balance the bottom line without losing our soul? It’s hard. It means tough choices.”

Apr 18

A proving ground for board service

By Feature, Governance

By Lynn Sygiel, editor, Charitable Advisors

When Forbes magazine published its list of 20 Best Cities For Young Professionals last month, Indianapolis was No. 10.

But Jesamyn Sparks, Shae LeDune and Trevor Bruner would take the description one step further: Indy has a vibrant young professional network. And the three have had a hand in creating it.

Bruner is co-president of the executive committee of Agave, the Eiteljorg Museum’s young professional group. LeDune is an executive committee member. Sparks is president of the Ronald McDonald House’s Young Professional Board, and has assumed other leadership responsibilities during her five years as a volunteer.

While young professional boards are a relatively recent phenomenon, nationally, nonprofits have begun to find opportunities to capture the attention of the 21-to-40-age group.

“I think that nonprofits are really recognizing the value of tapping into a slightly different demographic than traditional boards. It’s really about thinking ahead and keeping the boards fresh,” said Sparks. “It’s great to see organizations around town that are embracing that strategy to start cultivating those board members earlier.”

Sparks credits the Ronald McDonald House with having the foresight to recognize this untapped resource seven years ago. Agave got its start 10 years ago.

LeDune said that educating her age group about Central Indiana nonprofits is key to the organizations’ future. Her former boss, Tom Hoback, who was an Eiteljorg board member, recruited her. Initially, he relied on her for advice about how to get younger people in the museum’s door, but then he realized she would be a great fit for the auxiliary.

LeDune is not alone in her volunteer service. Agave has six people on its executive committee and the Ronald McDonald House engages a 12-member leadership board and 10 additional committee members in volunteer activities.

Other nonprofits, like Goodwill and the Children’s Bureau, have created similar groups, Sparks said. BoardSource, a national organization working to strengthen nonprofit board leadership, has challenged boards to reflect the constituency they serve. Sparks said that has never been an issue at the Ronald McDonald House because typically, individuals come to serve because they have a personal connection.

“That direct experience is a really powerful thing, and I believe that it’s critical for the health and success of an organization to keep everybody focused,” said Sparks. “The mission of what the Young Professionals are trying to do is to support the mission of the House.”

The House has two-year board terms. Agave is less formal and has an organic transition for its leadership. Both boards have bylaws. As presidents, Bruner and Sparks attend their organizations’ board meetings, but leave when the board is in executive session and do not cast votes.

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Ronald McDonald House

Eiteljorg

Indianapolis’s young professional groups

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“So we kind of get an inside look. We get to sit in and see what the museum has planned, and get updates as the year goes along about how those initiatives are going. We can bring that to our board to make sure that whatever we’re doing is in line with what (the museum) needs, so we can complement what they have going on,” said Bruner.

Communication between the young professionals and the nonprofits is supported by staff liaisons who attend all their meetings, take notes and answer questions.

Agave executive committee members must attend their group’s meetings, volunteer for the museum at least five hours annually and be a museum ambassador. They are responsible for setting the strategic direction for their group, plan events, secure sponsors and recruit museum members from their age group. There is not a personal contribution expectation, other than an annual $30 membership fee.

The Ronald McDonald House’s group functions much like a board. There is an expected $50 annual minimum contribution.

“Although when you add in other events, fundraising that’s happening here at the House and campaigns, certainly our board and leadership committee members do tend to give more than just the expected amount. It is certainly not required, but people get excited about the mission of the House, and they connect with the stories,” said Sparks.

Both groups regularly champion the work of their parent organizations to young professionals, using informal informational sessions and the city’s organized professional networks. They are also able to share their groups’ missions at a young professionals’ roundtable group.

But both groups believe the key to involving their generation is getting them through the door.

“We like to invite new members to participate in the quarterly dinners we host for families by bringing a food item, serving families and talking with families. Just physically being in the House is important. To me it is a real hopeful place, and I think sometimes for someone who hasn’t really spent a lot of time there, it can be a surprise. I was surprised when I first started volunteering here years ago,” said Sparks.

One of Agave’s primary activities is recruiting museum members from their age group. Typically, there are 50 to 75 members annually. Bruner, with his co-president Brian Cusimano, added a personal commitment to secure at least five new members unique to their networks.

There is a $30 fee, which includes access to the museum and Agave’s social events.

“Agave tries to educate and engage young professionals in the world of contemporary, Western and Native American art to develop the next generation of Eiteljorg visitors and leadership. I think if we can get new people through the door, then they are going to see the world of the Eiteljorg. There is amazing art and so much more that I think people just don’t realize,” said LeDune.

The Ronald McDonald House’s board plans three fundraising events each year — a trivia night, a bingo event and a Colts viewing party — with all of those funds going directly back to the House. Sparks said she’s proudest of the game room that the group helped fundraise for.

“We’re always available to help whenever the House needs us. And I like to think that we’ve helped to grow that segment of the donor base that maybe previously just scratched the surface,” said Sparks.

Agave offers networking social events in conjunction with new exhibits and scavenger hunts to learn more about the museum. When the museum had the guitars exhibit a few years back, the group did a summer event called Jorgstock with bands and food. This year, they are making changes to keep it fresh.

Both groups are excited about the opportunities to learn from current nonprofit board members.

Agave is actually formalizing its approach and putting a mentorship program in place, pairing each Agave executive committee member with a museum board member.

“I think it’s priceless. There are so many people on the board who have done so much with the museum, but outside that are just successful people. To have a mentor like that, I think is going to be great. I think it will be a big time value proposition for Agave folks. They get direct access to community leaders, and they get to see exactly what goes into board member service,” said Bruner.

The three think there is an opportunity to learn more about governance, how nonprofits function and the ethical responsibilities of board members.

Bruner offers advice for young professionals thinking about service.

“If you are interested in getting involved, I say ‘Dive in.’ If I had to say anything, it would be, ‘Go for it,”’ he said.

Apr 11

The risks — and rewards — of reinventing signature events

By Feature

By Susan J. Ragusa, contributing columnist, Inside Philanthropy

There’s a great Bette Davis quote that goes something like, “Old age ain’t no place for sissies.” It puts me in mind of the recently departed month and the image of decrepit Father Time ambling out of the year. Certainly for nonprofits that depend on a year-end fundraising blitz, December has never been for the faint of heart. Nor, for that matter, is January, when the donation tally is complete.

That high-stakes setting informs the success story I have to share. Last year, I was part of a daring December initiative. A nonprofit organization of which I’m a board member, Astor Services for Children and Families, took a popular free event and, for the first time, required a contribution to attend. That’s practically the definition of risk-taking for nonprofits. Yet, the outcome was an event that generated positive buzz and raised a significant amount of money — in fact, more than other signature events in recent years. How it was accomplished may be of value to others — at any time of the year.

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Apr 11

Revamped Relay for Life

By Feature, Fundraising

By Bruce Barton, staff writer, Los Altos Town Crier

The annual Los Altos Relay For Life fundraiser for the American Cancer Society started with a bang in 2004, with hundreds participating and hundreds of thousands of dollars raised.

But the 24-hour event lost steam after a few years as participants and organizers grew weary of the massive effort and time commitment required. Organizers realized that major changes were needed to keep the event afloat.

Enter Relay 2.0, a revamped event scheduled June 12 at Hillview Park that completely changes the format while keeping the Relay’s overall purpose intact. Instead of a 24-hour marathon, this year’s affair runs 4-9 p.m. Instead of multiple laps, 2.0 will feature a single 2.5-mile lap along streets surrounding the park. Other new elements include a flamingo decoration contest, picnic site judging and a relay, with runners passing a torch. The luminaria – candle-filled bags with memorial messages lining the track – have been replaced by “messages of hope,” in which participants can attach artwork and notes to a decorated chain-link fence.

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Apr 11

Chicago Charity Challenge: reinventing corporate giving

By Feature, Fundraising

By Stacey Rago, executive director, Chicago Charity Challenge

People want to work for and do business with companies that give to charities, whether in volunteer hours or financial contributions. As a result, corporations are increasingly seeking ways to show a tangible impact of their giving by going beyond the “one-and-done” form of charity events held within their business. Last year, 23 Chicago-area firms found a fun, engaging and motivating solution to keeping employees focused on their favorite cause or charity, while making a significant contribution to the communities they serve.

Last year, more than 4,500 employees from 23 businesses competed in the Chicago Charity Challenge, a unique corporate giving contest designed to motivate participants to fundraise and volunteer. Affectionately dubbed “the Cha Cha,” the Chicago Charity Challenge is the only corporate giving initiative that harnesses the competitive spirit to maximize employee engagement. The challenge serves companies interested in developing more meaningful and ongoing relationships with their select charities.

Corporate employees who joined the 2015 competition logged over 46,000 volunteer hours and raised more than $14 million for Chicago-area charities.

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Mar 28

Communicating data to drive change

By Feature, Leadership

By Patrick McCarthy, president and CEO, and Lisa Hamilton, vice president of external affairs, Annie E. Casey Foundation |

Kids can’t vote. They can’t buy ads on television. They can’t form a political action committee to get what they need. They can’t speak up for themselves, and as a result they often disappear from the crowded list of political priorities competing for attention. To combat this invisibility, the Annie E. Casey Foundation has been building a project known as KIDS COUNT for more than a quarter century.

KIDS COUNT began in 1990 as a single product: a national data book comparing 10 indicators on children (including infant mortality, education expenditures, and the teenage employment rate) across the United States. The theory behind the book was that if we created an accurate, comprehensive picture of what children need, change would follow. With its ranking of outcomes by state, the foundation hoped to draw attention from the media, as well as from local, state, and national policymakers, by capitalizing on the human impulse to compete.

Learn how the Annie E. Casey Foundation has leveraged the power of information and communication to drive public investment in children and their families.

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Mar 28

From project to platform: the evolution of KIDS COUNT

By Feature, Leadership

By the Annie E. Casey Foundation |

This report tells the story of how a single data book documenting child well-being measures turned into a mission-critical vehicle for the Foundation in building bipartisan support for proven practice solutions and policy change. The report includes data and research insights that the Foundation gained from decades of investing in a program that turned into a keystone for shaping and amplifying policy on a broad scale.

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Mar 28

Investing to close America’s racial wealth gap

By Feature

Like many economists who care about American families struggling to make ends meet, I spend a good amount of time thinking about how parents can earn more income to give their children better opportunities and reduce stress in their daily lives. But my real mission is one you hear less about in the debate over income inequality. For families to make their way to a better life, it’s not enough to earn more. They’ve got to keep and grow their earnings, too.

Savings and assets — homes, cars, retirement funds — are launching pads to something better, even as they cushion against today’s inevitable emergencies. But for generations, policies to help families build the savings and assets they need to give their children a better life have created a persistent and widening gap in net worth between white families and African-American and Latino families.

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