Gail Perry Associates

10 Basic Responsibilities of Nonprofit Boards

Gail — Thu, 11 Mar 2010 00:01:27 +0000

There’s so much confusion about the appropriate job of a nonprofit board member.

Lots of boards ask me to help them understand what their work really is. I often refer to a list that BoardSource created a few years ago that has become a reference in our sector.

Here’s the list. I’ll be discussing these responsibilities in my upcoming blog posts. There’s lots to talk about here! What do they really mean? How do you implement them?

Ten Basic Responsibilities of Nonprofit Boards From BoardSource

Determine the organization’s mission and purpose. It is the board’s responsibility to create and review a statement of mission and purpose that articulates the organization’s goals, means, and primary constituents served.
Select the chief executive. Boards must reach consensus on the chief executive’s responsibilities and undertake a careful search to find the most qualified individual for the position.
Provide proper financial oversight. The board must assist in developing the annual budget and ensuring that proper financial controls are in place.
Ensure adequate resources. One of the board’s foremost responsibilities is to provide adequate resources for the organization to fulfill its mission.
Ensure legal and ethical integrity and maintain accountability. The board is ultimately responsible for ensuring adherence to legal standards and ethical norms.
Ensure effective organizational planning. Boards must actively participate in an overall planning process and assist in implementing and monitoring the plan’s goals.
Recruit and orient new board members and assess board performance. All boards have a responsibility to articulate prerequisites for candidates, orient new members, and periodically and comprehensively evaluate its own performance.
Enhance the organization’s public standing. The board should clearly articulate the organization’s mission, accomplishments, and goals to the public and garner support from the community.
Determine, monitor, and strengthen the organization’s programs and services. The board’s responsibility is to determine which programs are consistent with the organization’s mission and to monitor their effectiveness.
Support the chief executive and assess his or her performance. The board should ensure that the chief executive has the moral and professional support he or she needs to further the goals of the organization.

What’s the Goal of Your Fundraising Visit?

Gail — Sat, 06 Mar 2010 20:41:52 +0000

One of my favorite blogs (For Impact) is talking today about making fundraising calls.

I hear so many times how excited my friends are when they manage to actually get the appointment.

In their excitement, they forget about planning the details of the visit.

I remember years ago when I was a beginning fundraiser at Duke University. I was walking down the street with the VP for Development at Duke. He was going to accompany me on a fundraising visit.

I was pretty excited but also nervous because he was the head honcho. And I will never forget what he asked me: “what are your goals for this visit?”

Well, I almost swallowed my tongue! I had never given it any thought! I managed to scramble and come up with some objectives to share with him, but boy – what a jolt!

Don’t let this happen to you.

Never make a fundraising call unless you determine what you want to get out of it.

If you are clear, you’ll actually be able to achieve what you want during the conversation. If you don’t know what you want to accomplish, you can pretty much be sure that you won’t accomplish it!

The For Impact blog today talked about a particular visit, and then suggested these as possible goals:

Qualify the prospect. (Financial capacity and interest).
Have her help to identify the correct players in the city to get on board.
Get her help in getting to some or all of those identified in number two.

A great start!

3 Essential Ingredients for Every Great Fundraising Appeal

Gail — Wed, 03 Mar 2010 03:33:10 +0000

Here are the number one, absolute essentials for writing a hard-hitting successful appeal:

1. Use I and you words. Keep it personal. Keep it between you and me. Make it intimate.

2. Give them detail regarding what exactly you need and exactly how the money will be used.

3. Show how the money will make an immediate and lasting difference.

OK – an example: a ballet company can write and ask for:

1. general support, OR

2. Help us pay our dancers; they make less than $xx/year and can’t even afford xxx. If we can reach our goal to cover our dancers’ salaries, we’ll be able to (do this, and this and this) and with more dancers, we can stage the ballets you know and love. Without enough dancers we’ll have to eliminate dances from our repertoire.

Another example: A community college program helps foster youth when they transition out of the social services program to go on their own:

You can ask for a gift to “fund the foster youth program,” or

$25k to expand the program, employ another coach/social worker, and bring in an additional 20 kids into the program. These kids are much more 40% likely to become incarcerated or pregnant than others of their age group. Helping them transition to college gives them a new hope for the future. And they return as coaches to inspire the foster kids currently in high school who may be thinking about dropping out.

You tell me which type of appeal works!

Average Gift Size to Haiti is Smaller Than Other Disasters – What That Means to Us

Gail — Fri, 26 Feb 2010 14:47:56 +0000

The Chronicle of Philanthropy reported this week that some international relief organizations said their average gift size to help the Haiti crisis is smaller than after the tsunamis in 2004. The good news is that the number of gifts went up even if the size of the gift was down.

For example, (and I’m quoting from the Chronicle article here:)

In the first 10 weekdays after the earthquake in Haiti, Mercy Corps received 61,505 contributions, compared with 49,561 donations during the same period after the tsunamis. But the average size of the Haiti gifts was $109, compared with $208 for the tsunami gifts.

As of Wednesday, the American Red Cross had received approximately $231-million, a little more than a third of the more than $644-million raised by major U.S. relief groups. Online donations for Haiti have averaged $92 for the group, compared with $150 after the tsunamis.

World Vision U.S. has raised almost $30-million for its work in Haiti, roughly the same amount the organization had received during the same period after the tsunamis. But the charity’s average gift size is $130 this disaster, compared with $191 for the tsunamis.

Here’s my take on this: Clearly the disturbing trend to smaller gifts is because of the recession. How long will we be here? Gift size has dropped almost across the board.

I, for one, am anxiously waiting for signs of spring – looking for signs of a resurrection in the economy and in giving. These trends in gift size may be the first bellweather to let us know how things are going. And clearly, the tide hasn’t turned yet. But these donors are more of the anonomyous type – the kind motivated by media to “help out” in times of crisis.

We CAN be successful when we make focus in on our CURRENT donors – those who are already on the bandwagon with us. All the more reason for us to be keeping our donors and friends of our cause excited about the impact we are making in the world.

I just read in the Benevon newsletter yesterday of some stunning results from first time “ask events’ – major funds that were raised from both new and old donors. When we pull in those personally devoted to our cause and tell our story with impact and passion, they WILL give.

Our inner circle donors are a better bet right now than new donors who come to us thru the media.

It’s OK to BLATHER, Board Members!

Gail — Mon, 22 Feb 2010 18:46:05 +0000

Wow is this idea a hit with board members!

Here’s the deal – what I find is that board members don’t, repeat, don’t know what to say about their cause. This may come as a surprise to smart staff members, BUT it’s TRUE!

(If you don’t believe me, then ask one of your board members what they say to people about your organization.)

I’ll bet that maybe only two or three of your board members have any sense of how they want to share the story of their favorite organization to their friends and the rest of the world.

The problem is this:

Board members think they need to be able to recite the mission statement. Or the 3 main marketing points. Or the five reasons somebody might be interested in their cause. They make it too complicated. And they make it WAAAAY to formal.

And they forget all that stuff. They can’t remember what to say when they have a chance.

And when you ask them to tell the “story,” what do they do? They stiffen up, that’s what they do.

They become all about themselves, and what they are trying to say – and not about the person they are talking to. And their energy plummets. It dries right up into a little hard ball.

Are they engaging and enthusiastic? NO – they are nervous and dry.

SO HERE’S WHAT I SAY TO BOARD MEMBERS: IT’S OK TO BLATHER -

as long as you are totally enthusiastic, engaging, passionate and speaking authentically from your heart.

If board members can just remember that their energy and passion for the cause are what will engage people, then they just might be on fire sharing their story wherever they go!

They just might be a bit incoherent because they are so excited and enthusiastic.

Sure, I prefer a board member with a smooth, well-rehearsed pitch that is exactly right. But until I have them trained well enough, in the meantime I am happy if they are sharing their excited, passionate story over and over with anyone who will listen. Even if they blather.

Because the person who hears them will understand their authenticity and their commitment.

Like the lady on “When Harry Met Sally” who overheads Meg Ryan mimicing sex at the dinner table, they’ll say “I’ll have what she’s having.”

We all know that energy is contagious. And what I want is my board members out there spreading the good news about our cause.

Happily and enthusiastially.

Even if they blather. : )

: I’ll have what she’s having

How to Create a Hard-Hitting Hands-On Planning Session With Your Board

Gail — Tue, 16 Feb 2010 15:11:14 +0000

Ah, death by strategic planning!

Don’t get me started on how AWFUL and what a TIME WASTER strategic planning can be. At least the way we do it in the noprofit sector.

I am organizing a “hard-hitting, hands-on planning session” with an organization that has been wandering aimlessly for a few years. They wonder why they can’t raise money? Here’s the answer – their vision is not juicy enough to get excited about.

Here’s our agenda for our planning session: (I’ve changed the names to protect the innocent!)

Reconfirm Good Cause’s vision and mission.
Reach consensus on what Good Cause wants to do in order to implement its vision and mission in the coming year and in the next 5 years. (broad framework here for the longer time period.)
Identify strategic directions and set some firm goals around each direction.
Answer the question: “how will we know if we have been successful?”
Determine the critical success factors that will make or break the new goals.
Agree on the board’s role in creating success for Good Cause and what each person is committed to doing.
Set next steps so that the staff can flesh out a complete operational plan for the coming year.

I had to tell the staff – you can TRUST me that it will not be a WASTE of time. I told her that I will not facilitate a meeting that I wouldn’t attend myself. : )

This board has GOT to pull itself together around a plan or the organization probably doesn’t have much of a future.

Do you know what the critical success factor is in this meeting? The facilitator. He or she is the person who will challenge, direct, pull together, referee, and ultimately ensure actual results. I take this role very very seriously! It’s an honor and a burden at the same time.

I’ll let you know how it comes out!

Emotional Hot Buttons to Use When You are Writing Your Appeals

Gail — Sun, 14 Feb 2010 21:48:57 +0000

I am reading my favorite blog today, the Agitator. The authors Roger Craver and Tom are “direct response” guru’s (remember it used to be called “direct mail?” Now it’s much more sophisticated direct response.)

They are citing an article by Denny Hatch about the best way to write “marketing copy.” That’s the technical term for the wording we use when we write appeals, brochures, email broadcasts and our fundraising materials.

Denny is apparently an old pro at marketing and copywriting. He says that we need to be sure to do the following things:

1. Set a deadline that will create urgency. By WHEN do we need to hear from you? Now we all know that you really have a terrible time raising money if you don’t have some sort of deadline.

You have to give people a reason for acting NOW. Write that check NOW. Put it in the mail NOW. Because we have to act quickly … (you know how to complete this sentence, right?)

2. But choose your deadline carefully. If you leave it out too long in the future, the need to act now dissipates. But if it is too close, you are at the mercy of mailing schedules that might go wrong and ruin everything.

3. Use emotional hot buttons. If you appeal to these powerful, motivating emotions, you’ll have the most success. These hot buttons are called “key copy drivers” — because they are so powerful they can change behavior.

When you insert them into your effort, the more powerful your argument. Those copy drivers are: fear – greed – guilt – anger – exclusivity – salvation – flattery.

So how do you flatter your donors?

Tell them how smart and wonderful they are and how they’re so helpful, kind and caring.

I’ve seen lots of fundraising material that appealed to anger and guilt. Haven’t you? Not so sure about using greed or fear here.

But don’t forget that it is POWERFUL emotions that will get attention and create action – and funds to help your cause.

Fundraisers are on the Front Lines of the Battle

Gail — Thu, 11 Feb 2010 16:02:35 +0000

The New York Times today ran an opinion article about a new study from the national organization Feeding America.

The study showed that one in 8 Americans sought emergency food aid last year. (This is 37 MILLION PEOPLE!)

Lord have mercy, as we say in the south! They are feeding one million more Americans a week than they were in 2006.

Hunger is alive and well in America, it is awful to say.

The need is so very clear. All over our country and the world, there are people desperately in need.

We fundraisers and nonprofit leaders are on the front lines of the battle for safe, decently-fed, healthy families in our communities.

If you ever start to lose heart and feel that what you do is not making a difference, do step back and look at the real results of your work.

I think fundraising is one of the most noble professions ever.

When I say we are on the front lines of the battle, I am not kidding. We literally can make the difference between tragedy and safty, or hunger and food, or the difference between illness and health. We do this because we bring in the resources to make it happen.

We are the catalyst. We bridge between the well-meaning people who want to help and those who so desperately need the help.

Don’t ever lose heart. Call me or email me if you need to and I’ll pump you up. Find other fundraisers and bond with them for support. Our causes need us more than ever, ever before!

Onward, and may the force be with you!

How to Talk to Your Donors About Overhead and Administrative Costs

Gail — Tue, 09 Feb 2010 14:06:22 +0000

Donors are always carping on the whole issue of “overhead.” They act like it is a terrible thing that their funds would go into the black hole of “administration.”

BUT we need to take the bull by the horns and take charge of this discussion.

We have to educate our donors on the importance of investing – not only in direct program work on the ground – but also in the infrastructure of our organizations.

You have to explain to donors that infrastructure funding is really important too – it keeps the lights on, pays for staff and computer systems – so that the good work on the ground can happen.

I think when you explain this to donors, they do get it quickly, and then they are likely to be ok with the administrative costs. If you don’t explain it, and pitch it to them just right, then you just might get in trouble with your donors.

I’d like to see a pitch for “infrastructure” right along with the pitch for “direct program funding.” We should never apologize for our overhead costs. Instead let’s re-define the words “overhead costs” into “investing in infrastructure.”
This is a proactive and proud term we can all stand by!

Treat Board Members as Real People With Real Concerns

Gail — Mon, 01 Feb 2010 22:46:15 +0000

I think we approach our board members ALL WRONG.

We nonprofit folks have this idea that our board members should be devoted to the cause 24/7. And when they place other priorities in front of our to-do list, we are disappointed in the least.

I hear a lot of complaining about board members. “My board members won’t raise money,” the executive director sadly whispers to me. “They won’t even open doors,” another friend confided.

I thought to myself, well do these board members think they are supposed to raise money or not? I could have bet a case of beer that the staff’s notion of what board members were supposed to do was not at all the same as the board members’ idea of what to do.

My nonprofit friends think, “Of course board members are supposed to raise money!”

But the board members are probably thinking secretly to themselves, “I’ll do anything BUT ask for money.”

Is there a conflict here?

And here’s the rub. There is bound to be disappointment on one side or the other unless there is a frank conversation about what you need your board members to do.

If you want your board members to help in fundraising –

And if you do need them to “raise money,” then you have to give them a format for this work. You have to tell them exactly how to do it and make it easy for them. They need a lot of encouragement and hand holding, and that’s fine! They aren’t the “hardened professionals” that we are.

So DO be realistic about your expectations and treat your board members like you’d want to be treated. They are volunteers. Wonderful, well meaning community volunteers. But they are untrained. They are not fundraising professionals. Treat them like the real people they are.