How much administrative support does a nonprofit board need?

By Kate Goffredo Dougherty

Time can be an easy thing to under-budget. A 20-minute drive into the city? Try 45. Half an hour at the grocery store? More like an hour and a half. A few minutes after dinner for a stroll around the block? Forget about it.

But time is the key factor when deciding how much administrative support a nonprofit needs to give to its board of directors. Over or underestimation of time commitments on either side can result in leadership breakdowns with ramifications throughout the organization. So how can this be avoided?

Follow this golden rule: Boards do not have a lot of time. Never lose sight of the fact that board members are almost always volunteers, with jobs and other commitments that will take priority over your organization. Even the most enthusiastic board member will at some point find themselves running short on time when life's other responsibilities come calling.

For this reason, you must treat your board's time with respect. Expect little of it, and make the most of what you do receive by giving extra emphasis to organization. When board meetings roll around, be prepared.

Don't use word-of-mouth to determine who should be attending or what will be on the agenda. Instead, send out an email a week in advance with all of the necessary materials and a list of who will be speaking. If neither your board nor your administration has its ducks in a row prior to a meeting, you'll end up wasting time or, even worse, arriving at crucial decisions based on faulty information.

Administrative support shouldn't conclude with the meeting, either. Although it can be a cumbersome task, have someone take thorough minutes and commit to spending a few hours after the meeting to cleaning them up and sending them out. You have your board's attention and the meeting is fresh on their minds, so follow up immediately. They can't be expected to jump back into the fray a week or two down the line.

Occasionally, board members can actually be the ones who underestimate how much of their own time is needed. We see this often with organizations that lose an executive and decide to temporarily shift responsibilities to the board. Board members optimistically believe they can divvy up the time, but they often fail to realize the extent of responsibilities: tax filing, banking deposits, invoicing, event organization, and even day-to-day communication with employees and stakeholders.

These responsibilities should rarely, if ever, be given to board members, because these situations can quickly degrade into disorganization and lost revenue. For that reason we always advise nonprofits to enlist administrative support services provided by a company like Dunleavy & Associates when faced with an absence, even if only for a short period of time.

About the author: Kate Goffredo Dougherty is Senior Project Manager, Operations at Dunleavy & Associates. With a background in nonprofit administration, Kate oversees the lion's share of Dunleavy's operations, and shares her expertise with clients seeking to improve their operational and organizational management. She also specializes in event planning.

How can our nonprofit cultivate donors who can make major gifts?

By Debi Hoxter

If only there were an easy answer to the question of how nonprofits can win big donations. Campaign managers would certainly be able to relax a little.

But while there is no easy way to solicit major donations, the answer is actually quite simple: Relationships. Cultivating big donors is all about developing relationships, and while that takes significant time and energy, it pays off in the long run.

The question then becomes, what is the best way to build relationships? Start by reaching out to your board of directors, and ask for their support and guidance. They're often well connected and may know people in their network who would be a good match for your cause. Ask your board member to make an introduction, preferably in person, but at least by having their connection take your phone call.

If there is a dearth of leads from the board, start looking at your own network and conducting research. Find out who your competitors' major donors are and see if you have any common connections. Perhaps you have an old colleague who now works at the same company as a donor, or maybe you share a mutual connection with a prospect on LinkedIn.

Once you've identified a target prospect and have made a connection, you can begin the four-step courtship process: Qualify, cultivate, solicit and steward.

• Qualify: Get to know the prospect and see if your organization is of key interest. Determine if he or she has the proper financial capacity by inquiring about and researching other philanthropic activity.
• Cultivate: Make the prospect feel a part of the organization. Invite him or her to meet your organization's leadership, visit its facilities and attend its events. Demonstrate why your organization is different from others.
• Solicit: The actual ask should not come as a major surprise. Like a marriage engagement, both parties should be expecting and comfortable when the question is popped.
• Steward: After a donation is made, don't disappear until the next appeal time. Thank the donor repeatedly, and continue the relationship by inviting your donor to activities that are of interest, from volunteer efforts to cocktail parties. Even better if they can bring a friend to an event who might also be willing to donate.

The key through this process is to take your time. The clock should not be ticking for you to land a major donation; rather, expect that it will take time to court the prospect and ask when the time is right. Although cultivating major donors is time-consuming, it will ultimately pay off and build as your network grows and strengthens.

About the author: Debi Hoxter is Director, Corporate & Foundation Relations at Dunleavy & Associates. Pulling from her prior experience as Executive Director, Corporate Underwriting at WHYY, Debi works with clients to build donor and corporate relationships and create strategies for meeting revenue goals. She began her career in advertising, working first at Ted Bates and Grey advertising agencies in New York before serving as Advertising Sales Manager at Philadelphia Magazine.

Does a change in nonprofit leadership require a new strategic plan?

By Carolyn Rammel

There are few things in the nonprofit sector that induce as much anxiety as a change in leadership. Whether it's an executive director or an influential board member leaving an organization, that individual holds influence that will leave a vacuum after departure.

While the shift may and often should prompt some soul-searching within your organization, there's no reason a leadership change in and of itself must change your strategic plan.

By design, a good strategic plan will be created through contributions from more than one individual. If created correctly, a plan collaboratively combines the ideas, perspectives and recommendations from various stakeholders. From volunteers to board members, staff members to external constituents, all voices carry the same weight. It is a leader's responsibility to execute the strategic plan, not to dictate the plan.

However, a change in leadership does present a great opportunity to revisit the strategic plan and ensure it is still functional and in line with the mission and organizational goals. Of particular importance is determining that the plan's design was not the reason for the prior director's departure, and that new leadership can still reasonably execute it.

Even if you determine the plan was created with input from stakeholders at all levels and is still executable, it may be time to revise. Strategic plans should be updated every three to five years, regardless of changes in leadership.

If your strategic plan passes review and does not require updating, it can actually be the best tool for weathering the stresses of change. As the plan is intended to be the guiding document of your organization, the individuals leading that strategic direction will be secondary to the plan itself. Even more, a completed strategic plan will offer clarity of direction for any incoming leadership.

About the author: Carolyn Rammel is a seasoned executive and consultant, with 25 years of experience in the financial services, travel management, not-for-profit and consulting services industries. She has executed numerous business, marketing and international joint venture initiatives in the corporate marketplace, and more recently served as the executive director of a Philadelphia nonprofit organization. As a consultant, she specializes in the areas of strategic planning, facilitation and leadership alignment.

How should a nonprofit talk to potential donors about overhead costs?

By Megan Lepore

In a world where everything is scrutinized, administrative costs (also referred to as “overhead”) have almost become dirty words in nonprofit fundraising. Everyone's heard some version of the following, usually from an uninformed friend or family member: "Can you believe [insert organization here] keeps a third of every dollar? They won't get a dime from me!"

With the budgets of even large, nationally respected organizations being targeted for criticism in recent years, the dilemma for small and mid-sized nonprofits is great. How much financial information should you openly offer to donors and prospects, and how can you best convey it? Is it best not to mention overhead costs at all, or perhaps speak in generalities?

At Dunleavy & Associates, we believe strongly in the importance of honesty and transparency. Leaving donors or prospects in the dark about where their money is going will eventually have negative repercussions, and you can bet they'll never donate again once their trust is broken.

What donors are really concerned about is not just confirmation of where their dollar is going, but whether or not it's being wasted. Donors by nature are considerate people, capable of understanding that yes, your staff must earn a salary in order to carry out your nonprofit's mission. And they (should) recognize that there are real costs involved to doing your work.

So, what is the solution? Use your organization's communication channels to talk about those costs. It’s okay to talk with prospects about the expenses associated with using current technologies to provide integral services to your constituents, the need to sometimes outsource services (such as graphic design), and the everyday cost of running a successful nonprofit organization.

At the same time, it’s not unreasonable for them to want to know how well you steward their dollars. Be prepared to share what percentage of donations goes to overhead costs. You can share how your organization has worked with vendors to make more cost-efficient decisions (bulk printing, shared resources, in-kind services, etc.) and how the staff and board have resolved to more closely monitor expenses to increase revenue in the new year. This type of information will help to build trust that your organization is careful with every dollar.

And don't be afraid to spice up your communications. Many organizations report their financials only at the end of the year, often in a large, dense report. Let your donors know how their contributions are making an impact in the community – in both big and small ways.

Send out brief recaps that utilize statistical infographics or photos of your clients and staff. Tell them how the campaign they donated to fed 300 families for a month, or helped 30 pups find forever homes. Highlight your top corporate or individual donors to reward them for their support.

And don’t just wait till the end of the year. Break with tradition and send a brief mid-year synopsis detailing the accomplishments of the first six months, as well as your capital and campaign goals for the next six. Not only will your donors feel more involved in the process, you'll keep up with your financials and avoid the end-of-year pileup.

Always remember, in a time when donors, prospects and journalists have access to your 990s at the click of a mouse, any effort to cloud your financials is a disaster waiting to happen. Instead, get ahead of the conversation and build trust with transparency through smarter, more engaging communications.

About the author: Megan Lepore is a Senior Project Manager at Dunleavy & Associates and has more than 10 years of development experience in the fields of healthcare, education and human services. She holds a Master of Science in Communication Management from Temple University, where she has also taught undergraduate courses in speech communication, public relations and news writing. Annual appeals, corporate sponsorship, grant writing, foundation relations and event planning round out her professional expertise.

What is the best way for a nonprofit to launch a capital campaign?

By Nancy Dunleavy

If you’re an astronaut, you know you’re ready to launch when NASA announces, “All systems go!”

If you’re Kung Fu fan, you know it is time for the student to launch when he can take a pebble from the hand of Master Kan.

But if you’re a leader in a nonprofit organization, only a feasibility study can tell you when you are ready to launch a capital campaign.

Feasibility studies are designed to determine your organization’s readiness and the probability of achieving the campaign goals. They typically take between three and six months because they involve surveying employees, board members, volunteers, and potential donors.

For a nonprofit planning its first capital campaign, a feasibility study is essential. Among the many potential pitfalls to be identified and addressed are insufficiencies in staffing levels, board support, volunteer capabilities, and donor commitment.

Successfully completing a capital campaign requires an entirely different kind of fundraising than nonprofits use to solicit typical annual donations. In most cases, you'll be asking for larger sums of money. So you need to determine if your supporters are willing and able to give more. Savvy donors may well ask if a feasibility study has been done before making a large donation.

Having successfully completed a previous capital campaign does not ensure that a new campaign will achieve its goals. You may be more confident in your ability to raise funds because of your past experience, but a new feasibility study will offer current insights that will enable you to better plan for a new set of circumstances. For example, you may learn that the market is not as strong as it was, and it would be best to adjust your aspirations and/or implement the campaign in phases, starting with a smaller goal and increasing it over time.

Communicating with prospective donors during the feasibility study can also garner new ideas for achieving campaign goals. For example, donors who will be asked to support construction of a building, such as a community center, might reveal that they would be more likely to donate if certain facilities were included, such as a basketball court or swimming pool.

Finally, feasibility studies should be conducted by an outside company or consultant, to ensure candid responses. Donors and prospects are unlikely to be completely forthcoming when someone on the staff or board of a nonprofit asks them about their level of commitment. Dunleavy & Associates has performed dozens of feasibility studies that have helped nonprofit organizations launch successful capital campaigns.

About the author: Nancy Dunleavy is the President and CEO of Dunleavy & Associates, which she founded in 2001. Chair of Gwynedd Mercy University Board of Trustees, Nancy also serves on the Board of Directors of The Union League of Philadelphia, and is Treasurer of Valley Forge Tourism and Convention Board.  She is a popular public speaker and has received numerous accolades for her work and leadership, but most prides herself on being an “extraordinary talent scout” in recruiting phenomenal clients, colleagues, and collaborators.