Tag: fundraising

  • The toughest sale

    Here’s a riddle: all good product sales are not about the product, they’re about the story about the product, right?   (Method soap tells a story about the kind of hip, environmentally conscious, non-ostentatious but still a little bit fancy consumer you are;  there’s a whole ethos and culture and world outlook story that surrounds each iPhone (and, soon, iTouch) ; JetBlue sells an attitude about flying along with free TV.)

    What about selling something that has no product?  That seems hard to do.  In fact, it seems so hard to do that if you could find someone who knew how to do that, you’d know that they were pretty darn good at their job – probably better at selling that someone who has a product AND a story to sell, right?

    Selling philanthropy seems to me to be a product-free sale.  It’s the pure sale of an idea, of an ethos, of who you can be.

    So the riddle is: if philanthropy is a product-free sale, why aren’t the people selling philanthropy the best salespeople around?

    add to del.icio.us : Add to Blinkslist : add to furl : Digg it : add to ma.gnolia : Stumble It! : add to simpy : seed the vine : : : : post to facebook

  • Blue Hill – if restaurants were nonprofits

    The other night I got to eat dinner at Blue Hill at Stone Barns, easily one of the best restaurants around.  Chef Dan Barber has radically shortened the time and distance food takes to get from the farm to the table, and the tastes that result are simply exquisite.

    But more interesting than the tastes, to me, was the meal – and that’s something completely different from the food.  The meal was the experience, the meal was a story about what food could be.

    Just one example:  near the end of dinner, to kick off desert, our server came to the table with a full honeycomb, covered with honey, that she placed on the table.  It’s kind of a big, messy, natural thing – honeycomb within a wood frame.  She explained that Blue Hill started harvesting its own honey last year; they started with six hives and are up to twelve.  This was the last of the late fall honey, she said, and it is richer and deeper than the early spring honey.  And it would be part of our next course.

    Then she disappeared.  A few minutes later, four waiters, with the precision of synchronized swimmers, simultaneously placed four white bowls in front of the diners.  Each bowl had no more than two tablespoons of a concoction with “homemade tofu, bergamot, and honey.”  Then, for the final flourish, each of the four servers simultaneously whipped out a stainless steel garlic press with a piece of honeycomb inside, and each squeezed the press to drizzle fresh honey over our dessert.  Performance, panache, surprise, story, and a little bit of magic.  And it was delicious.  This was one of a hundred moments that made the meal exceptional and memorable.

    After dinner we got to peek into the kitchen, filled with the cooks who make this spectacular food.  No surprise, things feel different when you pull back the curtain…cooks and staff are busily washing dishes, or heads-down prepping and running food.  They’re the engine that makes the magic possible, but the kitchen, of course, isn’t magical.  It’s a shop floor.

    The interactions at the “front of the house” (with the maitre d’, the waiters, the sommelier, the honey-squeezers) and the “back of the house” are distinct.  The front of the house is populated by storytellers who are creating an experience.  In the back of the house, amazing food is created.  But the skills required of folks in the front and the back might have very little overlap.  And you need them all to create an exceptional dining experience, and to deliver it night after night.

    *                           *                               *                                 *                                 *

    So now, with the restaurant story as backdrop, fill in the blanks at your favorite nonprofit.  Who’s who?   You can do your own, magazine-quiz-style “match column 1 with column 2”:

    1. Waiter                                                              A. Program staff

    2. Line cook                                                        B. Head of Development

    3. Chef/owner                                                    C. Fundraiser

    4. Maitre d’ / General Manager                   D. CEO

    Who creates the reality?  Who is doing “the real work?”  Without whom do you fail? (hint: it’s everyone).

    To take the analogy a step further, if restaurants were run like much of the nonprofit sector:

    1. The only job anyone would ever want would be to work in the kitchen
    2. It would be impossible to hire waiters
    3. There’d be no set menu – diners would pick what they want; and over time the kitchen could end up serving tons of dishes that they don’t best know how to cook
    4. Before choosing a restaurant, diners would ask whether the restaurant spends more than 10% of its operating budget on waitstaff.

    Bon appetit.

    add to del.icio.us : Add to Blinkslist : add to furl : Digg it : add to ma.gnolia : Stumble It! : add to simpy : seed the vine : : : TailRank : post to facebook

  • The gift you give

    There are two reasons I’ve been thinking and writing about generosity: first, I know I’ll be happier the more generous I am, so I’m practicing.  Second, by experiencing the rewards of my own generosity, I will be able to translate something I KNOW into something I FEEL.

    Let me explain.

    Most people don’t feel comfortable asking other people for donations to causes they believe in.  I’ve been told often, even by people who give a lot, that there’s deep discomfort in “hitting up my friends,” and I’ve witnessed fabulous nonprofit professionals who commit their lives to a cause, yet who somehow cannot bring themselves to stand in front of someone and ask them to fund the cause in which they so deeply believe.  And even fundraisers box themselves in to comfort levels of what kind and size of donations they’ve decided they can ask for.

    So here’s the thought experiment: yesterday I wrote about the $20 I gave to a guy who asked for money on the subway.  And what I experienced was that I came out ahead.  Personally, I got more out of giving than the $20 I gave away.

    Of course this makes sense.  Whenever anyone gives a donation, they are coming out ahead.  They are deciding freely to give the money away, which means that they are getting something of more personal value than the money they are giving away.  And the kicker is that it doesn’t matter if the person is giving a gift of $20 or $2,000 or $20,000,000.

    What that value is will vary for every person – it could be the economic value their gift is creating through lost suffering and economic hardship; the moral value of righting an injustice; the social value of putting one’s name on a plaque or a list or on the side of a building; the psychic value of helping someone (the donor) become the person she wants to be.

    Intellectually, I get it and you get it.  But until we all feel it in our gut, we hold ourselves back.  Until we feel it our gut, we believe on some quiet level that the playing field is unbalanced, that the person doing the giving is in one way or another on higher ground than the person doing the asking.

    By making a practice of your own generosity, you have a chance to remind yourself: they are the ones getting the deal; you are the one giving the gift.

    You are the one who has something special, something precious, that you are offering up to them at a bargain price.

    Truly.

    add to del.icio.us : Add to Blinkslist : add to furl : Digg it : add to ma.gnolia : Stumble It! : add to simpy : seed the vine : : : TailRank : post to facebook

  • The toothless monster

    Speaking of fear, just recently something exceptional just happened to me:  I had the absolutely worst fundraising meeting I’ve had since starting my job at Acumen Fund three years ago.  It’s not worth going into the specifics…suffice it to say it was unpleasant and transactional in the worst way.  Paint your worst picture of what a fundraising meeting could be, and that was this meeting.

    I admit, I was a little shaken for a little while.  I had to vent some to a couple of folks to clear the air.

    And then, almost right away, it was done.  The feeling was gone, the meeting was in the past.   And no real harm was done.  The actual experience of the thing I feared – the thing that can keep me and you from picking up the phone or putting yourself out there or standing in front of an audience or pitching a new, crazy idea or going with your gut – was exposed.  And it was so much less powerful or meaningful than the picture I’d drawn over time.

    There’s the lurking monster I imagined, and the reality that it had no teeth.

    add to del.icio.us : Add to Blinkslist : add to furl : Digg it : add to ma.gnolia : Stumble It! : add to simpy : seed the vine : : : TailRank : post to facebook

  • Original passion

    I recently came back from a weeklong trip to Europe and was swapping stories with my wife about the week. She admitted what I already knew, that my five-year-old son has started to really notice my absence when I travel for work.

    “But,” she said, “It’s actually really easy to explain to him why you’re away.  I say to him that Daddy is out helping get money to help pay for things like safe water to drink or a safe place for a mommy to have her baby for people who need it.  And he understands that and it makes sense to him.”

    First, I was overwhelmed by this kind of support from my family.

    Second, I noticed that, even to me, this is not exactly how my week felt.

    Of course I was talking about the work that Acumen Fund does and explaining to people why supporting Acumen Fund helps bring about large-scale change to persistent social problem.  But, even for me, it is easy to get caught up in the process of it all and lose track of that very simple, very important, very basic connection.

    A friend of mine who serves on a number of nonprofit boards recently told me that, in her opinion, there’s no better way to tap into your original passion for a cause than to sit in front of someone else and ask them to support that cause financially.  It forces you to get to the root of why you think that cause matters, to share that original passion with someone else, and to invite someone else to have the same sense of exhilaration and purpose that you feel in being part of that organization – that cause – every day.

    Somehow, in the midst everything it takes to do the work – getting introduced to the right people, meeting with them, sharing your story – you can get so caught up in the process that the original purpose gets out of focus.

    It helps to remember, every day, “this is why I do this.”

    Yes, the act we’re engaging in is raising money, but the thing that’s really happening is that another person has safe water to drink, or a proper place to give birth, or a more productive farm, or a vaccine for a life-threatening disease, or a school that will provide them with opportunity in their lives…and all of this thanks in part to the work you’re doing.

    If we can tap into that original passion – in ourselves and in others – I’m sure we can unleash a different kind of energy, and I’m sure that we can overcome all our fears about putting ourselves out there and asking people to walk our path with us.

    add to del.icio.us : Add to Blinkslist : add to furl : Digg it : add to ma.gnolia : Stumble It! : add to simpy : seed the vine : : : TailRank : post to facebook

  • Jeff Immelt was a sales guy

    Jeff Immelt, the CEO of GE, was a sales guy.  So was Sam Palmisano, CEO of IBM, and Steve Ballmer at Microsoft.  In fact, Steve Ballmer started in sales at Proctor and Gamble, selling something called the “Coldsnap Freezer Dessert Maker.”   Better yet, while selling the Coldsnap, Steve shared an office with Jeff Immelt, another entry-level sales guy.

    When you’re a Fortune 50 company looking for your next CEO, you often pull from the ranks of your top salespeople.  Why?  Because they spend all their time talking to your top customers, who are, in turn, the lifeblood of your business, not just today but into the future.

    What about in the nonprofit sector?  A friend of mine who is a very successful nonprofit fundraiser describes fundraising jobs as “the best-paid unfilled jobs in the world,” and while I don’t know all the data, every time I check out the Chronicle of Philanthropy job site I see more unfilled “fund raising” [sic] jobs than any other (today’s count: 233 fundraising, 151 Executive, 98 program, 82 administrative.)  It strikes me that if nonprofit fundraising jobs (sales jobs, right?) were where nonprofit Boards looked for their next CEOs, then this wouldn’t be the case.

    My chicken-and-egg question is: why isn’t the “Head of Development” job the proving ground for future nonprofit Executive Directors and CEOs?  Successful EDs and CEOs spend most of their time in external-facing roles (representing the organization, raising funds, working with the Board, creating strategy and positioning and owning the brand and thinking about organizational growth), so shouldn’t at least a typical stepping stone to the CEO role be the top fundraising job?

    It isn’t and I wonder if this is because:

    1. Fundraising jobs are confined to the proverbial “boiler room” in the organization – not seen or heard from, with most organizations actively insulating these people from the “important stuff” (including, ironically, interaction with the Board, which is the Executive Director’s job)?
    2. The low status of fundraising self-perpetuates the problem – status is low, so it is hard to get the best people into these roles and harder still to keep them.  As a result, the development staff often isn’t positioned to be the next crop of nonprofit CEOs?
    3. Fundraising professionals, over the years, get so disconnected from the program work that they don’t make good CEOs?
    4. I’m just flat-out wrong – lots and lots of nonprofit CEOs came from careers in nonprofit fundraising?
    5. Something else

    This matters because in order to have growth and large-scale impact, nonprofits need to mobilize resources.  And if we could find a way to bring the best people into fundraising roles (however broadly conceived), and if we could groom them to become world-class at mobilizing capital and at creating the best deep, innovative, lasting partnerships, we would take a huge step forward in cultivating a different kind of leader for our sector.

  • The only guy I met

    The other day I took about eight boxes of books and clothes to the Salvation Army, part of a (meant to be) biannual, you-ever-going-to-wear-this-again? ritual that I talked about here.

    I have to admit, there’s so much inertia around getting this done that when I get enough momentum to go through my closet, pack up clothes, and get out of the house, I don’t stop to ask whether the Salvation Army or Goodwill or anywhere else is the most efficient place to give things away.  I just assume that stuff that I drop off at the local Salvation Army eventually ends up in the hands of the people who need it.  Trust in a brand, through and through.

    My local Salvation Army is an ominous, somewhat murky place: a giant, brick, 1930s warehouse with a single door leading to a small room with one small desk.  The only other door opens to a giant room filled with trash bags of dropped-off, donated stuff.

    The giant room is enough to raise some questions: how long do these clothes sit here?  Do they end up in the right hands?

    I should find out more, to be sure.  But I haven’t and I don’t, yet I still end up feeling like things are going to be OK.  Here’s why:  the guy who mans that tiny front desk where I drop off the clothes is such an obviously compassionate, serious, considered person – and this comes across so readily in even a short interaction with him – that I’m left with a sense of confidence.

    Specifically, I think, “if he’s here manning this ship, then he’s made a decision based on a lot more information than I’ll be able to get easily”  Barring my own opportunity to really dig in and learn more, I’m going to trust this decision of his as proxy for my own due diligence.

    To me, on this day, this guy was the whole story.  He was the only guy I met, and he is the Salvation Army to me, just like the Zappo’s Customer Loyalty Team is Zappos to their customers (and if you haven’t seen this New Yorker article on Zappos, it’s worth the read).  In fact, Zappo’s CEO Tony Hsieh doesn’t even care much about shoes, he cares about culture and about the consumer’s experience.

    If this is right – if for most of the people most of the time, their experience of the organization is about the one person they meet – tell me again, what’s the desired profile of people who serve on the front lines in your organization (your delivery people, your teachers, your CSR reps, your repairmen and women, your fundraisers)? How important are these roles?  What’s their status within your organization?

    Is there a single reason why you’d want these folks to be anything other than  your best, brightest, blow-me-out-of-the-water, if-you-work-here-it-must-be-great, people?

    add to del.icio.us : Add to Blinkslist : add to furl : Digg it : add to ma.gnolia : Stumble It! : add to simpy : seed the vine : : : TailRank : post to facebook

  • The one thing you need to know before launching a nonprofit

    I was on a phone call today with a number of young people who are interested in working in the social enterprise space, and the question arose, “What advice would you give to someone who is interesting in launching a social venture?”

    The answer is: figure out how you’re going to fund this thing.  Without that, you’ve got nothing.

    Does the intervention/program/enterprise and its impact matter?  Yes.  And having the right people to tackle the problem? Absolutely.  And great, smart advisors who understand your space and who are willing to help?  Definitely.  But cash is king.

    I’m not saying that people with great social venture/nonprofit ideas don’t know this on some level.  But I have seen too many people launch a nonprofit venture and then say, six months or a year in, “I wasn’t planning to spend so much time fundraising.”

    Really?  I cannot think of another sector where figuring out the revenue model is anywhere but at the top of the list.  Try going up to any successful small business owner and saying, “I’m going to start a new restaurant (bakery/gift shop/coffee shop/bed and breakfast).  Only problem is I’m not completely sure how it’s going to make money.”  This would be a very short conversation.

    Sure, there are a few network-oriented businesses where winning the market share game first might make sense (Facebook and Twitter today, but there was a time when this applied to Amazon and Ebay too).  But in almost all cases this doesn’t apply to nonprofits.   In fact, you’d think that since, by definition, nonprofits work to fill gaps that the markets alone don’t address we’d care more, not less, about getting revenues right.

    Personally, I’m pretty agnostic about whether the funding stream you have in mind is large donations from individuals; government contracts; lots of $25 donations; or some sort of earned income.  What matters is creating a substantial, reliable revenue stream so that you can keep the lights on, pay people, make longer-term strategic decisions, and, of course, do whatever it is you want to do to make the world a better place.  And you want to do things on a large scale, which probably requires double the cash you think you need.

    The good news is that you can right-size your cost base today ways that used to be impossible.  Networks of volunteers, low-cost website tools, technology enabling people to work remotely around the globe, free international phone calls on Skype….there is a way to take your nonprofit’s business plan and cut the costs in half.

    But if you’ve got a fabulous idea with everything right except for how you’ll raise the first $100,000 and after that the first $1 million…it’s time to redirect your attention to what really matters.

    (And if you need a pep talk, here it is.)

    add to del.icio.us : Add to Blinkslist : add to furl : Digg it : add to ma.gnolia : Stumble It! : add to simpy : seed the vine : : : TailRank : post to facebook

  • Ask and ask again

    Ira Glass, host of the NPR show This American Life, has a new twist on getting people to give to NPR.  As part of NPR’s funding drive, Ira is calling people on the phone and having them “turn in” family members who don’t give to NPR, despite being devoted listeners.  I heard Ira call up a woman who said her parents “subjected” her to NPR for years when she was growing up (now she’s a fan).  On the radio, the daughter gets the mother to the phone and says, “Mom, I’ve got Ira Glass on the phone and he wants to know why, after so many years, you haven’t given to NPR?”   It’s the light, respectful version of the phone tap.

    (For a laugh, here’s the audio of Ira’s calls to Megan, Paul, and Kathleen from January 21, 2009.)

    I used to spend 8 hours a week driving to and from work – a horrible waste of time, but I did get to listen a lot of NPR.  The pledge drive always was painful, but I admit that it sometimes took being asked more than once for me to remember to give.  And I fell for all the tricks – 2x and 3x matches; give a certain amount and get a copy of The Silver Spoon cookbook, you name it. I guess I and the rest of the listeners got what we deserved – it took that much ear-pounding to get us to give.

    What I like most about the pledge drives is that the hosts of shows I listened to every day would get on the radio and say, “If you liked this show, if you listened to it all year long and if it made a difference in your life, you should support us financially.”  No qualms, no apologies.

    I do think there are better ways to raise money, but it is helpful to be reminded that we often have to ask more than once to get someone to make a financial commitment (especially the first time).

    A parting thought: I wonder if the NPR hosts themselves dread this or are proud to ask for money?

    add to del.icio.us : Add to Blinkslist : add to furl : Digg it : add to ma.gnolia : Stumble It! : add to simpy : seed the vine : : : TailRank : post to facebook