By Kevin Kidwell, vice president, national tax-exempt sales, OneAmerica
If your organization has a 403(b) retirement plan, then you may have already received — or should be receiving — a notice from your plan provider regarding a new Internal Revenue Service (IRS) document requirement.
For the first time, the IRS has pre-approved prototype plan documents for 403(b) retirement plans, typically sponsored by 501(c)(3) organizations.
The plan restatement requirement is happening now, not because of the recent tax reform legislation, but rather is a long-overdue response to many years of lobbying by retirement plan sponsors and service providers.
We think this is a good thing.
The IRS’ goal is simple — to get a certified, model blueprint similar to what protects 401(k) plans and has been available to 401(k) plans for decades.
It doesn’t mean if you have a 403(b) plan that your plan is changing or was poorly planned; it just means there will be guardrails.
There are a variety of ways that providers (or a third party) will engage with sponsors and service providers to make them aware of the IRS request.
While completing the request, this is also a great time for the organization to review and re-evaluate whether your plan is accomplishing what it was designed to do; and whether the objectives of your plan matches your mission and aligns with your values. Is there a better way to structure employer contributions to increase participation? Are you operating the plan as it is written within the plan document? Is the plan optimized to meet the desired outcomes while managing budgetary realities? And, if your plan doesn’t look right, maybe it is because your mission has changed, so does the plan reflect those changes?
At Indianapolis-based OneAmerica®, an organization that can trace its roots back to 1877, we’ve been helping organizations with their tax-exempt retirement plans since 1964. We believe a retirement plan should do more than help someone retire – it can help organizations recruit, retain and reward employees.
In Kevin Kidwell’s role as vice president of national tax-exempt sales, he works to provide ideas, knowledge, information – both technical and practical – in an effort to facilitate improved plan and participant outcomes. Since joining OneAmerica in 1988, Kevin has held various positions within the Retirement Services division. Beginning in 2000, his exclusive focus has been on healthcare and tax-exempt organizations.
OneAmerica® is the marketing name for the companies of OneAmerica.
Products issued and underwritten by American United Life Insurance Company® (AUL), a OneAmerica company. Administrative and recordkeeping services provided by McCready and Keene, Inc. or OneAmerica Retirement Services LLC, companies of OneAmerica which are not broker/dealers or investment advisors.
ByLeslie Wells, Assistant Director of Communications, SPEA at IUPUI
Huddled around a kitchen table, Cali Curley, Jamie Levine Daniel and Marlene Walk discuss their latest research project. They’re focused on the innovative concept of competitive philanthropy.
“We typically don’t talk about nonprofits in terms of competition, despite the fact that they are competing for resources,” Levine Daniel says. “While nonprofits often have a negative view of competition, we wanted to explore its true impact.”
A SPEA research team now has its chance, thanks to the charitable organization Brackets For Good. Each March, the nonprofit hosts March Madness bracket-style online fundraising tournaments in cities around the country.
Since its inception, Brackets For Good has helped nonprofits raise more than $6 million. The Indianapolis-based nonprofit got its start in 2011 and has now expanded to 13 cities and states. Participating organizations try to out-fundraise the others. Each nonprofit keeps its donations, while each tournament’s winner receives an additional $10,000.
With so much on the line, organizers at Brackets For Good wanted to ensure their program was setting up participants to succeed. In 2015, Matt Duncan, co-founder and deputy director of Brackets For Good, and his team turned to the School for Public and Environmental Affairs at IUPUI for help in designing evaluation questions that would create a more balanced bracket.
“We really needed an academic-research approach,” Duncan says. “We knew SPEA could help us design questions that would help us better evaluate which organizations would be best suited for this tournament. That’s why we turned to SPEA.”
“The academic perspective allows them to say their process has been vetted through research scholars at a university, increasing credibility and notoriety in both the nonprofit and academic sectors,” Curley says. “This collaboration also allows Brackets For Good and SPEA to be on the leading edge of what’s happening in the nonprofit world with competitive philanthropy.”
Curley began reviewing the application survey for the tournament three years ago. She soon brought Levine Daniel and Walk on board, relying on their nonprofit research expertise to advance the project.
“We saw this as an excellent opportunity for research,” Walk recalls. “Current nonprofit literature already tells us how individual characteristics – such as gender, race, or religion – impact philanthropic giving. What we want to know now is whether there are softer forms of identity, such as a sports-identity or being competitive, that could drive or promote giving as well.”
The team began analyzing data and developing new application surveys. They examined features such as a nonprofit’s mission awareness, its number of employees and volunteers, how much the organization had in its unrestricted fundraising budget, as well as the nonprofit’s social media habits.
IUPUI students were also able to take advantage of this unique research and evaluation opportunity. Curley and Walk use the project in their classrooms as a learning tool for students spanning several majors, including Sustainable Management and Policy, Media and Public Affairs, Policy Studies, and Civic Leadership. Levine Daniel discusses the research in her courses, as well.
“This project provides students with an opportunity for experiential learning,” Curley adds. She points to the fact that students not only get hands-on experience in data and evaluation, they also learn about local nonprofits. “We approach it from this dynamic space of teaching students to learn about their community and be more engaged and involved, while also doing an evaluation for Brackets For Good in a meaningful way.”
The research team led by example, showcasing SPEA’s commitment to community partnerships. The team says this project allows them to keep their finger on the pulse of the nonprofit sector in Indianapolis, while getting a better sense of what makes it tick. The selection paper only used data from Indianapolis, allowing the research team to model selection statistically and provided a model that Brackets For Good could ‘scale up’ to other communities. BFG applies the survey and evaluation tool to all participating organizations.
While the research is still in the peer-review process, the initial findings from their research show commonalities among organizations that made the cut into the tournament. They rated higher on being tech savvy and were more active on social media. They had a higher amount of unrestricted funds and larger volunteer bases. In addition, organizations that had more community awareness of their mission were more likely to make it into the tournament.
These findings have allowed Brackets For Good to revamp its application survey, ensuring that divisions, rankings and match-ups are more evenly paired.
“SPEA took the competition to the next level,” Duncan says. “They created a much more fair and robust bracketology than what we had developed on our own.”
But can that bracketology predict which organizations will make it all the way to the end?
“If we can provide Brackets For Good with data and studies on topics such as effective messaging and risk mitigation, that will allow them to improve the guidance they provide to organizations, which hopefully enhances the experience for everyone,” Levine Daniel adds.
“We have not yet found out what actually makes organizations successful in the tournament. That’s the next step,” Walk says.
The team is currently combing through the latest data and piecing together the characteristics of winning organizations that will allow Brackets For Good to develop a toolkit for nonprofits. At the same time, Curley, Levine Daniel and Walk also are using this project to boost opportunities for students and SPEA.
“We’re building expertise and laying the groundwork for future research,” Levine Daniel adds. “Now, when people think about competitive philanthropy, they will think about SPEA.”
[content_box box_type=”normal”]Brackets For Good runs from March 2 through April 6. To learn more about organizations in the competition, build your own bracket or donate, click here.[/content_box]
Leslie Wells joined SPEA as its assistant director of communications in 2018. She previously spent more than a decade in broadcast news and three years as media relations manager at the Indiana Youth Institute.
By Pamela Clark,director of student services and admissions, Indiana University Lilly Family School of Philanthropy at IUPUI
Maybe it’s a faint but persistent thought that you’re ready for a new challenge. Maybe it’s the not-so-faint feeling that you want to give more of yourself to help others make meaningful change in their lives, or maybe it’s the conviction that you want to help the nonprofit where you already work have greater impact.
Julia Kathary, executive director of Coburn Place, and Kathi Badertscher, director of master’s degree programs and lecturer in philanthropic studies at the Indiana University Lilly Family School of Philanthropy at IUPUI, recognize firsthand those symptoms of the desire to change or advance your career path.
Since she was a child, Kathary has been helping people. “I really enjoyed giving back and making the community better.” She worked in an Evansville domestic violence and sexual assault shelter for nearly a decade. When she moved to Indianapolis in 2004, she faced a crossroads: Should she continue working in nonprofits?
“I decided to stay in the sector,” she says. “I had noticed, though, what difficult work it is to make a nonprofit sustainable over time.”
While working in a domestic violence shelter in Indianapolis, Kathary learned about the executive option in the master’s degree program at the Lilly Family School of Philanthropy, which allowed her to work fulltime while attending online and in-person classes part-time.
“It just clicked in my soul; I knew that’s what I wanted to do,” she says. “I wanted to have that skillset and that education on how to build sustainability.”
Toward the end of the program, Kathary started her own consulting business, working on capacity building and a range of issues, from deepening the impact of an organization’s mission, to addressing organizational sustainability, to program effectiveness and strategic planning. When the executive director position at Coburn Place came open, it was the merging of her passion, experience and education, and she was prepared to step confidently into leadership.
Kathary was a seasoned nonprofit professional before assuming the top role at Coburn Place. Badertscher, on the other hand, while philanthropically involved throughout her life, worked as a broker in corporate insurance for 26 years before making the leap into full-time philanthropy as her profession. “It was really good for a long time; I traveled, met people, and learned a lot,” she says.
About 12 years ago, Badertscher began re-thinking what she wanted to do. After serving on several nonprofit boards, volunteering in the community, and reaching a turning point in her insurance career, she realized it was time for a change. She found the Center on Philanthropy (now the Lilly Family School of Philanthropy) in a Google search and thought, “I can take a few classes and become a better board member, a more intentional donor, and overall be more systematic in how I approach volunteering and giving,” she says.
Those few classes rolled into a dual master’s degree and then a doctoral degree. Six months after she finished her Ph.D., the school had an opening for a director of master’s programs, and Badertscher was the perfect fit. She loves her new career, and encourages anyone who is thinking of a career change to follow through with it.
Think you’re ready to embark on a philanthropy career of your own? Here are some thoughts to consider:
Wondering if the philanthropic sector or a specific cause or issue area is right for you? Badertscher recommends activating your network from all parts of your life who are engaged with nonprofits. Ask about their experiences and conduct some informational interviews. She notes that you are “interviewing for a new field” as much as you are looking for a job.
“Do direct service and learn how the sector impacts the community,” Kathary says. Gain practical experience in philanthropy, whether through volunteering, interning or serving on an advisory or governing board.
Make a small donation to a nonprofit you may be interested in working with and see how they respond, Badertscher suggests. The thank-you and follow-up communication tell you a lot about the organization and its culture.
“Selling a product for a company is different than selling a mission,” Kathary says. “You’re developing a mission that matters and has impact, telling the story of that mission, and getting people to engage with their time, talent, and treasure.
“There are opportunities in the sector to utilize many different skill sets and turn them into something within civil society that gives back,” she adds. “So bring that skill set and then get innovative with it. The value of what you can do in the nonprofit sector is just as important to our economy” as what you may be doing in business or government.
Assess what knowledge you will need to acquire and explore educational, professional development and peer-learning groups.
Ready to advance? Consider these opportunities:
If you’re trying to advance within a nonprofit, it’s likely that you may be managing people in your next position, Badertscher says. “Look for ways to help other people grow” in their own roles and share your expertise, demonstrating your leadership qualities.
The nonprofit environment is highly collaborative. Identify and volunteer to work on projects in which you can collaborate successfully with others across your organization.
Many nonprofits don’t have time or capacity to revisit their policies on a regular basis. “Rules, systems and processes exist for a reason and have value, but it’s also good to question whether they are out of date or need to change,” Badertscher says. Raising questions and proposing appropriate solutions can show that you understand the bigger picture and have ideas that can help the organization move forward.
Evaluate the information and skills you will need at the next level and determine how you will develop the competencies you don’t yet have. Do you need different — or more — formal education? Can you learn what you need to know through professional development, training or workshops? Is there a professional certification that would strengthen both your knowledge and your credentials?
Consider membership in a professional organization or peer-learning group that can help you hone your abilities and bring new ideas to your organization.
Whether you want to embark on a brand new career in philanthropy or want to help yourself and your current organization advance, Badertscher advises, “Life is short, and if you have a chance and the desire to change something in your life, do it and you won’t regret it.”
Pamela Clark is director of student services and admissions at the Indiana University Lilly Family School of Philanthropy at IUPUI. Clark, in the role since 2013, has worked at IUPUI for 19 years in various roles. While working at University College she developed the first online learning communities designed for freshmen students and specifically for adult learners. She enjoys working with students and supporting them in achieving their academic goals.
By Lee A. Ernst, Associate, Johnson, Grossnickle and Associates
The foundation of a strong fundraising program is built on relationships. When your organization has a talented and dedicated staff, you have the key elements to form relationships with your donors.
What can you do to ensure you’re attracting and retaining your most valuable asset – people – while growing a strong culture of philanthropy?
What does the data show us about the current landscape of hiring development staff?
Recent research shows that the fundraising profession has a high turnover in staff positions and a dearth of qualified candidates to fill the void. Working with our clients, we hear stories of vacancies, long searches and short stays.
Here are some basic facts:
The average tenure for major gift officer positions is 18 to 24 months, according to a study by the Education Advisory Board.
According to the Underdeveloped Study, development director positions are also in a high state of turnover, with 50 percent of development directors indicating they anticipate leaving their position in the next two years and anywhere from 11 to 27 percent — depending on organization size — saying they anticipate leaving the field of development all together.
The same study found that more than half (53 percent) of executive directors reported that their most recent development director hiring process attracted an insufficient number of candidates with the right mix of skills and experience.
What can be done to help attract and retain fundraising talent?
Think outside the box. More nonprofits are seeking and recruiting talent with “non-traditional” fundraising backgrounds. Many other professions such as sales and marketing have transferable skills that apply well to relationship building in fundraising.
Consider compensation incentives.Incentive-based bonuses can be a good way to help promote a team culture and encourage an entire team to hit a fundraising goal as long as it’s done without compromising the AFP code of ethics.
Be flexible.Flexibility in the workplace allows staff to maintain a balance of work and home life. Rethinking policies to allow for earlier and later start times and accommodating working from home and part-time work can benefit the organization and accommodate staff.
Orient and train new staff.Take the time to connect new fundraisers to your mission. Make the job about advancing the mission, not just raising funds. The core of good fundraising is building relationships, and if a gift officer isn’t excited or connected to the mission, donors will pick up on this.
Consider promoting from within. Look for opportunities to home-grow your staff. Forward looking organizations can focus more on promoting from within to build future leadership. This will require a stronger emphasis on training and mentorship from those currently in leadership roles, but will pay dividends in the future.
Build a culture of philanthropy.A shared sense of purpose and vision fosters board, CEO, and organization-wide teamwork. When everyone understands what development is working to achieve, all can see how their individual roles can further support and promote the mission.
Communicate goals regularly.Conduct performance evaluations with feedback regularly and reinforce both short-term and long-term goals, in alignment with the strategic plan.
As the economy improves, jobless rates fall, and we see the long-anticipated surge of baby boomer retirements come to fruition, we can expect the scarcity of qualified development candidates to continue to present a challenge to hiring and retention. However, with ingenuity in attracting and adapting nontraditional candidates and a focus on training and connection to mission, organizations can position themselves to fill the void and find future staff members to help carry their mission forward.
Experience as a successful major gift officer at a large university has given Lee Ernst a unique understanding of major gift work and donor dynamics. As an associate at JGA, Ernst uses this experience to assist nonprofits in the creation and implementation of development and major gift plans that can help organizations achieve their philanthropic goals. She has demonstrated success in a wide range of development situations, and has a proven track record of personal cultivation and solicitation.
By Sara M. Johnson, FACHE, Director, Executive Education, IUPUI-School of Public and Environmental Affairs
Public service is important and over the last 30 years has evolved beyond just describing government careers. Many people are motivated to volunteer on the “front lines” and even donate money to worthy and favorite causes, especially at year end.
And, as critical to the sector as these activities are, serving as a nonprofit board member can be even more important. A board member’s role includes fiduciary responsibility, potential for conflicts of interest, oversight of an executive director and a responsibility to those the organization serves.
In her book, “Five Life Stages of Nonprofit Organizations,” author Judy Sharken Simon defines governance as, “… the legal authority responsible for guarding the organization’s adherence to its mission and ensuring its long-term stability and operations in order to do so.” As organizations move through the five stages, Sharken Simon also describes the phase of governance that characteristically accompanies these five developmental stages. She accurately applies an existing concept of organizational development — the organizational lifecycle to nonprofits.
Interestingly, though, Sharken Simon doesn’t suggest board development until the board is governing in the Third Stage. Prior stages describe the accompanying governance stages as “locating people to serve on the board” and “Homogenous, passionate.”
Is it really a good idea to begin with “locating people to serve on the board” and, then, wait until the organization is more mature to conduct board development? What if you began with locating “qualified” people to serve on the board? Maybe this is inferred in Sharken Simon’s writing, but without this consideration, many boards do just that: “locate people to serve.” Often, accepting the role as a favor, these individuals are not prepared for the responsibilities of nonprofit governance. This approach is not consistent with effective management or governance practices.
Several years ago, Indiana University Executive Education faculty, experts in nonprofit management and governance, developed the Certificate in Nonprofit Executive Leadership (CNEL) program. This program has successfully prepared nonprofit leaders for nearly 10 years.
This same team of expert faculty has now turned their attention to address the need for qualified board members.
The Certificate in Effective Nonprofit Governance (CENG) is designed to prepare individuals to effectively serve on a nonprofit board…BEFORE (or soon after) they are on the board. This IU certificate program not only provides busy professionals both online and face-to-face education and training, it also creates a much-needed pipeline of qualified board members for Indiana nonprofits.
“Taking this course was the right thing to do. I feel better prepared to serve on the board. The course is well organized and I highly recommend the course to anyone who is considering serving on the governing body of a nonprofit.” Donna Haggard, Hendricks Regional Health
SPEA will offer its third noncredit Certificate in Effective Nonprofit Governance beginning in February. The program prepares board members to be proactive in their critical governance efforts. Please check out the Certificate in Effective Nonprofit Governance here.
Consider sponsoring someone to earn this certificate and better support your organization or, if you are an individual wanting to enhance your own board effectiveness, contact our Executive Education team for additional information at spea.iupui.edu/executive-education.
Be proactive – develop your new board members now – it’s a critical role that warrants preparation.
Sara Johnson is clinical assistant professor for the IU School of Public and Environmental Affairs and director of IU Executive Education. Johnson teaches graduate and executive education courses. She is a fellow of the American College of Healthcare Executives (FACHE). As director of Indiana University Executive Education, Johnson leads a team of over 40 faculty and staff.
By Mark Shreve, director of client experience, SmallBox
Among the doorbuster offers, year-end appeals, and shipping confirmations, this survived your daily email sweep. This holiday season – as corporate and nonprofit brands compete for your attention and money – it’s time you ask more of your supporters.
Previously we shared (Charitable Advisors, March 2017) that nonprofits should ask, listen to and involve their audiences as part of their brand strategy. This approach aims to strengthen engagement among supporters and amplify the connection with a broader network.
When we interview supporters of organizations, we hear repeatedly that they desire a greater connection, they want to belong and attach to experiences, and they want to know how they can best serve as your advocates in the larger community and within their circles of influence during the giving season (and every day).
If you have a long wish list this holiday season include your supporters in your ask. It is a great time to finish the year with momentum, and jumpstart initiatives for 2018.
Here are some examples of what our clients and friends have done to activate a larger audience on their behalf:
Empower your ambassadors
#Giving Tuesday has become a ubiquitous holiday tradition among nonprofits, following corporate Black Friday and Cyber Monday campaigns, to jumpstart end-of-the-year giving appeals. One local social-service agency (rather than organization to use another word) joined the #Giving Tuesday festivities this year with a different approach — not asking previous donors for money. An email sent to donors asked for them to serve as ambassadors, provided a toolkit with sample language and photos, and requested them to encourage their contacts to support the organization.
By asking and providing a framework of how to help, this organization was able to expand their reach during this one-day campaign.
Mobilize to energize
A grant-making organization devoted to improving our local communities is setting a new strategic vision to guide their work. Rather than create a plan based solely on internal feedback, this organization decided to directly involve members of the community. Over the course of one month, they were able to convene a group of 40 community leaders, provide training to properly solicit feedback from neighbors, and synthesize the data into actionable insights.
One ambassador said the involvement “left me with so much hope for the future.” Because of the hundreds of facilitated conversations with community members, this organization will enter 2018 with the insights and energy needed to address complex community issues.
Create their! own experience
There’s still time to end the year with energy that can continue into the new year. A county library system is asking patrons to participate in the design of a library experience that aligns with their usage preferences (both online and in branches). Based on interviews and indirect research performed in local branches and on digital surveys, library leaders will start 2018 with patron feedback that will jumpstart efforts to create and deliver more personalized experiences.
These few examples exhibit how your organization can invest in dynamic, end-of-the-year experiences with your stakeholders.
Since your supporters are accustomed to hearing from you, and may be searching for ways to help at this time of year, seek to increase their loyalty by involving them in the mission of your organization. For many organizations, asking for feedback reinforces a connection to supporters and may also lead to financial donations.
Mark Shreve has supported nonprofit organizations for over a decade and is currently the director of client experience at SmallBox, a creative agency that builds meaningful brand experiences with organizations and their audiences. To learn what this may generate for your organization, ask Shreve for coffee at mark@smallbox.com.
SmallBox is a brand experience design agency that collaborates with organizations dedicated to creating impact and serving others. Initiate a conversation with SmallBox at info@smallbox.com.
The largest companies in the world are invested in good corporate citizenship. As a nonprofit leader staying up to date on these opportunities could enhance the resources you have available.
One area in particular has options you may want to investigate: technology infrastructure. This phrase simply means the common area where your files, database and company information is stored.
Large (or even medium) organizations have a LOT of information that many people have to work with and access regularly. They need to be in a shared area like a server. On-premise servers (the big box in the back closet) now cost at a minimum $10,000 and sometimes grow to $18,000 – $22,000 by the time everything is said and done. Finding the funds for this capital expense every 5 to 7 years can be difficult.
These days, many organizations and companies are going to “the cloud.” Clouds are simply large datacenters run by companies like Google, Amazon and Microsoft.
The advantage of utilizing these services means being able to afford the storage and convenience of a server, but paying a monthly fee (operational expense) rather than outputting funds for a large hardware purchase (capital expense).
Then there’s this: the two largest companies in this arena – Amazon and Microsoft – have strong nonprofit programs and are heavily invested in good corporate citizenship. Their programs include grant credits that offset the costs of paying the monthly service fees.
These grants are not difficult to obtain. Depending upon the usage, a grant could cover several months of fees or most of the year.
Amazon web-services grant
Amazon Web Services offers nonprofits a $2000 annual grant that can be used toward AWS services. Depending upon your organization’s needs, this grant could cover several months of payments. One of Netlink’s clients was able to offset an entire quarter. This grant requires you to be a member of Tech Soup and to pay a $175 administrative fee.
Microsoft Azure grant
Microsoft offers nonprofit organizations $5,000 in grant credits toward usage fees. This grant is requested directly from Microsoft and covers all usage fees. A small- to medium-organization may have a monthly fee of $300 to $400. Even at the top end of that range, that pays the usage for the year.
Cloud management is also important!
Which one is best and should you go after the larger grant? That really depends on your organization’s needs, and it’s important to get expert guidance in this area. Infrastructure in tech is just as important as it is in your building. You rely on your technology infrastructure to keep your organization’s digital assets safe.
Your technical experts should be part of your team to make decisions that keep your technology up to date. Look for programs for NFP’s in technology, and let your team know about them to save funds and have a strong technology base.
Teddie Linder is the Operations Manager for Netlink, Inc. She has over 20 years experience helping businesses use technology to accomplish their strategic goals.
By Pamela Clark, Lilly Family School of Philanthropy
Since 2008, Nathan Hand has raised money for causes he believes in. Working for nonprofits like Christel House, School on Wheels, and the Mind Trust, he has gained a wide range of both field and management experience. The Indiana University Lilly Family School of Philanthropy alumnus shared his thoughts about philanthropy, his fundraising career and provided advice for relatively new fundraisers.
Hand joined The Oaks Academy about four and a half years ago and was recently named its chief advancement officer. He says that a few key points stand out about its development program – including that the school and everyone involved with it are “aligned around a set of thoughtfully developed core values” that provide direction for all aspects of its work.
“Our board and leadership are supportive of relationship-based fundraising and understand that we’re in the business of building relationships over time and inviting people to join an incredible mission,” Hand says. “The mission itself is multi-faceted, drawing interest from those interested in (or motivated by) poverty alleviation, community development, racial reconciliation and faith.
“I was always taught to hire people smarter than me, so I’m part of a brilliant team who are experts in their roles, work their tails off, support each other and believe fully in the mission.”
Helping people has been a central tenet for Hand since childhood. “My parents were active in the church and community and expected the same of us kids,” he says. “They modeled a service-oriented lifestyle and always put others first. Many of my early experiences in philanthropy were facilitated by the scouting program, service clubs and activities. They gave me an early understanding of privilege, civic responsibility and the power and beauty of giving.”
Hand attended DePauw University thanks in part to a scholarship that included 20 hours of service each week throughout his four years in Greencastle. He participated in several nonprofit internships and says, “I found myself fascinated by the sector and how various groups came together to address a common concern. Philanthropy and nonprofit leadership became a focal point. I felt at home in the space and loved jumping out of bed every morning to try and move the needle for a cause.”
For him focusing on fundraising seemed a natural choice. He quickly recognized the centrality of funding to any mission and was not shy about inviting people who could help to join him in achieving funding goals.
“I loved meeting new people, understanding their interests and making meaningful matches between people and causes. During those early internships, several nonprofit CEOs shared that in their career path into leadership, they didn’t realize that much of a nonprofit CEO’s role is fundraising and that they didn’t feel comfortable doing it and/or didn’t know how,” Hand says. “I figured I would study and try to excel at something that would be needed in the marketplace. Frankly, it’s less about ‘development’ or ‘fundraising’ and more about mobilizing and engaging a group of people to accomplish something important.”
Hand’s pursuit of such accomplishments led him to study at the Indiana University Lilly Family School of Philanthropy at IUPUI, where he earned a master’s degree in philanthropic studies.
“People are at their best when they’re giving of themselves and that’s enjoyable to be around every day,” Hand notes. “One challenge is that not everyone has a positive image of or experience with fundraising. Too many fundraisers over ask, rush into it, exert pressure and don’t honor people. Philanthropy in its purest form is absolutely beautiful. It should be enjoyed and appropriately facilitated. Some supporters have been burned by bad experiences and assume they can’t engage with a cause without fear of being treated poorly.”
Hand shared five things that could be helpful to fundraisers who are early in their careers — those with two to five years of experience.
Realize that relatively speaking, this is a new and still unknown profession. Many boards and CEOs are looking for ‘quick fix’ fundraising with overnight results, not long-term sustainable philanthropic community building. It’s likely you’ll need to do a lot of coaching and educating internally. You can’t plant today and harvest tomorrow. Find a place/nonprofit that understands that and hasn’t over-committed themselves. That only adds undue (and unrealistic) pressure to fundraising staff and worse, their community of supporters.
Being an early-career fundraiser is hard. Most of the larger donor relationships are held by the CEO and lead fundraising staff. Make the most of your role, learn the various parts of fundraising work, and meet with everyone you can. Practice building solid relationships and your comfort level with talking to complete strangers about important things.
Stay on top of trends. People and institutional funders are looking for outcomes, sustainability, scale, etc. More and more people are seeing their philanthropy to be an ‘investment’ and expect returns. It’s much less about ‘charity’ than years ago. Be ready to champion that thinking internally in your organization.
Thank people. Personally.
Only work for causes and people you believe in. That’s what will get you through the long days and remind you how important the work is. Seek out great bosses and mentors who share those values.
Hand says newer fundraisers can benefit from professional development and training, but it’s important to look for reputable, research or experience-based programs, whether seeking in-person or online courses. One such example is The Fund Raising School, which he says also is accessible, has a strong faculty and is a great way to understand the concepts in several areas of fundraising quickly.
Hand, who teaches at The Fund Raising School, also suggests getting involved in as many parts of the nonprofit’s fundraising operation as possible.
“Take any tasks that no one else wants to do. Do them perfectly and ask for more,” he says.
“When it comes to personal fundraising, it’s very hard to ‘go along’ on a donor visit due to the dynamic between the people and the fact that a personal ask is being made. Instead, afterward ask your boss to walk you through how the visit went, what was said, the donor’s reactions and so on. Learn from that and apply what you learn to your own visits as you build your career.”
Pamela Clark is Director of Student Services and Admissions for the Indiana University Lilly Family School of Philanthropy at IUPUI. She has served in university admissions and advising roles for more than 20 years and enjoys working with students and supporting them in achieving their academic goals.
A business encounters many costs, but the most volatile expenses are those surrounding employee benefits.
Last year, employers spent an average of $8,669 per employee, an increase of nearly $500 from the year before. Multiply that rising number by each staff member and the costs can significantly pile up. There are a number of ways the rising cost of benefits negatively impact your business, but there are also several methods for alleviating this major issue.
However, any action must be approached carefully and strategically. One area where making a wrong decision can be especially devastating to a budget is in compliance. A single slip-up can cause lingering legal issues and attract hefty penalties and fines.
As healthcare reform continues to hang in the balance and confuse business leaders across the country, cutting corners to skimp on costs in this area is not a viable option. During these confusing times your business needs an expert versed in compliance, whether it’s a cost-effective outsourced partner or a higher-priced in-house talent.
Damages retention and recruiting
One increasingly-common way organizations are circumventing profit loss is by passing employee benefit costs to employees through higher deductibles, co-payments, and premiums. While this can look good on financial statements, it is resulting in decreased employee morale. Some workers may brush off increased healthcare costs, but many others will be motivated to look for a new job that offers more affordable benefits or a higher salary. After all, if costs go up once, employees will expect them to go up again.
Similarly, the rising cost of employee benefits is impacting the hiring and recruiting of businesses. Even if you’re able to attract an in-demand candidate into an interview and entice them into considering a formal job offer, it won’t take much to push them to a competitor. When you’re offering a similar salary and responsibilities as someone else, being able to tell a candidate that they will get great benefits at a low cost can be the deciding factor in securing their talent. Additionally, only 20 percent of employers continue to offer a retiree program. Candidates who see such a program in your job offer will take notice and view your organization as a career destination.
Ways to lessen the impact
Despite the gloom and doom surrounding the rising cost of benefits, there are a number of strategies that can lessen the negative effects.
Consumer-directed health plans such as HSAs are one option that allows employees to have more involvement. Such a plan provides tax incentives while also encouraging participants to consider the cost of healthcare services more deeply, meaning they may not go to the emergency room for minor health issues.
Utilizing virtual doctors and health hotlines can deliver an affordable alternative to employees going through costly office visits when they just have one or two questions. Not only does this save money, but it takes the anxiety out of a visit to the doctor and can help employees catch bigger illnesses before they fully develop.
Wellness programs are a popular option, and for good reason. Encouraging employee health with a trained coach/leader can promote healthy lifestyle choices that lessen the potential of preventable diseases and injuries. Rewards for certain milestones and regular checkups are typically included in such a program.
Audit your healthcare programs regularly. Whether due to confusion or ill intent, it’s often discovered that ineligible dependents are being covered when they should not be. Searching for costly inefficiencies such as this is necessary for those serious about accurate and legal benefit administration.
The rising cost of benefits
It can be difficult to take action and implement new strategies for combating the rising cost of benefits without experience, and especially when you have other pressing core business concerns. That’s why the greatest solution of all could be engaging with an expert PEO. The right outsourced HR partner can provide strategic direction and instantly save money by connecting your organization to a larger employee base providing better and cheaper benefits.
Mike Harrington is the president of The Synergy Companies. Joining the organization in 1995, Harrington has held several leadership roles within the company working to ensure its effective delivery of human resource and PEO services. Prior to joining Synergy, Mike spent five years with Safeguard Business Systems in direct sales and sales training and support. He holds a BS degree in marketing from Eastern Illinois University.
By John T. Keith, J.D., consultant, Johnson, Grossnickle and Associates
Fundraising success is increasingly a vital component of an organization’s ability to fulfill its mission. Campaigns have increased in prevalence and frequency and often are dependent upon 90 percent of the dollars being contributed by 10 percent of the donors. (In higher education, this can reach 95 percent of the dollars from 5 percent of the donors, a threshold nearly unheard of 15 years ago.)
This leads many organizations to rely upon major gift fundraising at all times, rather than merely for special projects of need.
At the same time, it has become more common for board members to have backgrounds in businesses that foster a sales culture and therefore look for data-driven accountability from the nonprofits they support. How can we modernize our approach to goal-setting and accountability without sacrificing what makes philanthropy so different from sales transactions?
The art of fundraising focuses on fostering support for your mission by developing relationships with donors and aligning their philanthropic goals with organizational needs. Yet, in philanthropy it is important that we focus on both the art and science of fundraising by tracking the metrics behind those relationships.
Here are a few things to consider as you explore incorporating metrics into your major gift program.
