FUNDRAISING LEADERSHIP JULY 18, 2014

Transcription

1 The Alford Group s 2014 Midsummer Learning Labs Series Marilyn Foster Kirk, CFRE Vice President FUNDRAISING LEADERSHIP JULY 18, 2014

2 Strategic fundraising leadership Effective fundraising is a strategic priority for every NPO that depends on contributed support. Viewing fundraising through a strategic lens emphasizes achieving the mission and vision not only meeting immediate dollar goals. Strategic fundraising requires a plan for the future: Building organizational fundraising capacity in order to achieve mission. Leadership for strategic fundraising is a shared responsibility.

3 EVIDENCE OF DYSFUNCTION

4

5 If good communication is the key to a successful relationship, it might be time for chief fundraisers and their institutional CEOs to consider couples counseling. 8 Mind the Gap

6 Despite rising expectations, most board members are reluctant to participate in fundraising activities and identify potential donors. Fundraising continues to be the weakest area of board performance. 5

7 Where s the evidence? 50% of higher ed CDOs leave because of poor relationships with presidents; another 25% leave because of poor relationships with boards 1 Just 43% of CDOs think partnership with CEO is strong; another 21% said partnership is weak or non-existent 2 Fundraising officers among the hardest NPO positions to retain 3 ; Average tenure is years. Nearly 1/3 of NPO CEOs are lukewarm about or dissatisfied with performance of development officer 2 35% of gift officers underperform 4

8 Where s the evidence? Fundraising ranks #1 among board areas needing improvement 5 CEOs overwhelmingly (75%) say board engagement in fundraising is lacking 2 60% of Board members not involved in cultivating leads; 68% not involved in asking for contributions 12 One fourth of college presidents say they are unprepared for fundraising 6,7 Surveys reveal significant perceptual gaps regarding fundraising goals, resources, and respective roles between community college and independent school CEOs and CDOs 8

9 Where s the evidence? Survey of Board members, CEOs and CDOs asked who was responsible for a list of fundraising activities by Cygnus Applied Research : The most interesting finding was the extent to which the three groups disagreed. 9 Board members assume too little responsibility. Professional development staff assume too much. CEOs were most realistic.

10 Perceptual apples and oranges Individual perceptions and preferences Conventional wisdom Other team members expectations Donor expectations

11 What difference does it make? Where community college presidents spent 25%+ time on fundraising 8 More likely to report giving totals of $1.5M+ Where independent school heads spent at least 25% of time on fundraising 8 More likely to see year-over-year increases Where board members are involved in fundraising 5 55% saw contributions increase year-over-year (compared to 45%) 60% reached their goal (compared to 53%) Involving Boards in a solicitation 4 Is associated with larger gifts Involving Presidents in cultivation and solicitation 4 Is associated with larger gifts Engaged Boards give 5 Somewhere between 8% and 23% of total contributions

12 What s the bottom line? Turnover Role confusion Under performance Ineffective relationships Lack of preparation Foregone revenue Negative impact on mission achievement

13 Questions for discussion These issues appear to be wide spread, affecting all types of NPOs. Why have these issues arisen? Why do you think they persist even when they have a negative impact on mission achievement and fundraising? What if we resolve the issues: what will success look like?

14 Thinking about a Process SOLVING THE FUNDRAISING LEADERSHIP PUZZLE

15 Some thoughts from UnderDeveloped 2 Culture of philanthropy is valued across the organization. FR staff, CEO and Board are deeply engaged in fundraising. Development officer is included among key organizational leaders. The organization invests in fundraising capacity.

16 Some thoughts on collaborative leadership The effectiveness of most every ministry relies on the health and quality of the relationship between the Board Chair, the CEO, and the CDO. Raising funds needed to sustain and advance a ministry is, in its best configuration, a team effort involving all three people. 11

17 Some thoughts on shared leadership Shared Leadership: Sharing power but maintaining authority. 10 Aligning values Clarifying accountability Communicating clearly

18 Some thoughts on a team approach 15 A good team shares a common goal of achieving the NPOs objectives: Agree on shared goals Determine values of a strong team: camaraderie, strategic thinking, trust respect Know each team member: what they know, what they do best, what position they play on the team Determine what work must be done by the team

19 Questions for discussion These possible solutions emphasize shared, executivelevel fundraising leadership. What advantages do you see in this team approach? What challenges do you see associated with this?

20 SUCCESS FACTORS IN STRATEGIC FUNDRAISING

21 Critical Success Factors 16 Collaborative Leadership Culture of Philanthropy Inspiring Vision Strategic Fundraising Investment Community of Donors Stewardship & Performance

22 Achieving collaborative leadership Focusing on advancing the organizational mission and vision Acting horizontally rather than vertically Thinking about a continuum of responsibilities rather than functional silos

23 Distinctive yet complimentary roles Board = Influence CEO = Authority Critical Roles CDO = Donors Trust It takes the combined efforts of professional fundraisers, CEOs and leadership volunteers to maximize fundraising success. 9 Penelope Burk, Donor Centered Leadership

24 Some assumptions Fundraising is an organization-wide responsibility. Fundraising effectiveness depends upon a thoughtful strategy documented in a multiyear plan. Financial support for fundraising is an investment, not a cost. Development staff cannot accomplish fundraising goals alone. Neither can CEOs. Neither can Boards. Successful fundraising is a team sport.

25 Agreeing on strategic leadership for fundraising Commit to be an effective leadership team Dedicate time to examining and nurturing leadership relationships Define the purpose of fundraising leadership so it advances organizational vision and mission Eliminate the negative, accentuate the possible Agree on team values Discuss and decide which team members will assume what responsibilities Analyze individual strengths and weaknesses Review/Revise/Replace conventional divisions of roles and responsibilities Determine when additional knowledge and skill are needed to carry out roles and responsibilities Agree on who will do what

26 Agreeing on strategic leadership for fundraising Write a leadership charter Values to guide the team Expectations for working together effectively Assignment of roles and responsibilities Regular team meetings Methods for holding one another accountable Evaluating team performance Accept responsibility for the critical success factors Collective leadership Inspiring vision Community of donors Stewardship and performance Investment Culture of Philanthropy

27 Agreeing on strategic leadership in fundraising Lead strategic planning for long-term and sustainable fundraising program Environmental scan external influences Assessment of organizational culture of philanthropy Analysis of donor segments Strengths and weaknesses of current fundraising strategies, staffing patterns, performance, resources Capability of measuring and demonstrating impact to donors Operationalize the strategic plan Recommend annual goals Establish performance measures Ensure adequate investment Lead and motivate entire board and staff Document and communicate impact of giving on mission and vision Evaluate organizational performance

28 Has your fundraising leadership team had an operational discussion about: Affirming your values and relationships as a fundraising team? The role contributions do/will play in total revenue mix? The proper level of investment necessary for fundraising growth? Setting organizational fundraising goals? Leading organizational fundraising performance? The division of roles and responsibilities for each of you? The amount of time each will devote to fundraising in relation to other leadership responsibilities? Performance goals as a team? Major donor strategies? Strategies for improvement?

29 Closing thoughts For fundraising to be successful, all members of the leadership team must: Embrace fundraising Advocate for it Participate in it, and Inspire it as a worthy endeavor. 13 Karla Williams

30 Closing thoughts As with every other charity in the UK, hospices act as middle man between those that need palliative care and those that want to help people. Our primary role is to ensure both sides of that equation, donors and patients, experience the best.... Valuing and defending our fundraisers is about recognising and supporting our donors and the vital role they play. CEOs play a critical role in building the confidence of our fundraising teams; I want my fundraisers to feel as proud as my nurses when they tell people what they do. 14 Kate Lee, Chief Executive, The Myton Hospices

31 References 1 Initial Findings of Higher Education Chief Development Officer Retention, Ruzanna Tantushyan, Campbell & Company, May 12, UnderDeveloped, J. Bell & M. Cornelius, CompassPoint & Haas Fund, Nonprofit Employment Practices Survey, Nonprofit HR. 4 Five Ways Advancement Leaders Can Make the Most of the Current Environment, Eduventures, Special Report: Engaging Board Members in Fundraising, Nonprofit Research Collaborative, September The American College President, American Council on Education, A Study of Presidents of Independent Colleges and Universities, Council of Independent Colleges, Mind the Gap, R. Goldsmith, Council for Advancement and Support of Education, Currents, November/December Donor Centered Leadership by P. Burk. Cygnus Applied Research, 2013.

32 References 10 Doing More with More: Putting Shared Leadership into Practice, by M. Allison, S. Misia, and E. Perry. The Nonprofit Quarterly, April 21, Managing the Relationship between the Board Chair, the Chief Executive Officer, and the Chief Development Officer, by S. Rodin, Kingdom Life Publishing, January 2, Stigma, Staffing and Boards, Mental Health and Addiction Network, March Executive Directors: What Energy Do You Have? by K. Williams, Philanthropy Front and Center, July 22, Put Your Mouth Where Your Money Is A Challenge to Hospice CEOs, by K. Lee, Institute of Fundraising, January 8, Best Practices of Team-Based Organizations, by L. Kricher, Development Dimensions International. 16 Six Success Factors in Strategic Fundraising, by M. Kirk, The Alford Group, February 2014.

33 Assisting nonprofit organizations achieve their goals through governance and board development strategic planning organizational assessments development program audits and performance enhancement feasibility studies campaign planning and counsel Please visit our website for more information Chicago (847) New York (860) Seattle (206)