Sponsor Insight

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.

Information can be found here: https://spea.iupui.edu/executive-education/leadership-programs/nonprofit-executive-leadership-certificate.html

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.

By Mike Harrington, president, Synergy

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.

Hurts your bottom line

The initial implications of this trend are clear. The more your organization spends on employee benefits, the less profits it will make. One of the biggest culprits hurting your bottom line is the price of prescription medication. Already taking up 30 percent of an employer’s health care costs, prescriptions are set to rise 7.3 percent in 2017, with specialty meds rising 16.8 percent.

The bill employers have to foot for healthcare is rising overall, with 77 percent of organizations seeing increases, and nearly a quarter of those employers seeing an increase of 16 percent or more. These numbers provide hard evidence that profits will rapidly shrink if action is not taken.

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.

By Mike Bensi, advisor, FirstPerson

“Let’s promote him!”

This is unfortunately a very common response by leaders when they have a great performer within their company. He’s been with the company “long enough,” and now the leaders find themselves wondering what they’re going to do so he doesn’t leave the company.

What are some signs that making the person a manager might be a bad idea?

1. He’s not good at managing. Sure he’s great at what he’s doing right now, but does that mean he’ll rock at managing other people?
2. Your company is just too young or too small. Within flat organizations, you’ll find limited available management and leadership roles. At larger firms, you’ll find more opportunities for advancement, but it could take years for the person to get there.
3. The person just doesn’t want to manage. Recent research is finding fewer people who have leadership aspirations.

So what can a company do to recognize the work the employee is doing, without handing out a promotion?