What Should Nonprofit Leaders Expect from the Development Officer?

Today’s post is provided by Lynda Lysakowski, ACFRE, President of Capital Venture.

As a consultant to nonprofits, my blood just boils when I am asked by executive directors or board members, “So, we are thinking about hiring a development officer, how long it will take before this person is raising more money than the salary we pay them?” This question indicates that these leaders really do not understand development or the role of a development officer in their organization.

I recently asked a group of fundraising professionals about their biggest challenge. Contrary to what I had expected, it wasn’t raising money in a challenging economic climate, or finding new donors, or even getting donors to give at higher level. It was “getting the rest of my organization (board, CEO and program staff) to understand what development staff people actually do, and getting them to support development efforts.”

This is a huge area of concern for many organizations. But, think about it, what is usually the last position filled in an emerging nonprofit organization? The program people were there first; after all, if you don’t have program, you don’t need a nonprofit. Then, as the organization grows, an executive director is appointed and a finance director hired. Often a PR or marketing person comes next, and then one day the organization grows to maturity and says it itself, we need more money to expand program, move to a larger facility, hire more program people, or whatever. So, let’s hire a fundraising staff person.

The result? Most of the people in the organization have no idea what “development” actually means. Nonprofit leaders must understand that it is called “development” for a very good reason—it often takes years to develop relationships with major donors. These donors can be a tremendous source of support for the organization once they understand its mission and are ready to become investors in its vision. The organization’s leadership must understand that it needs to invest not just time, but money, in its development office. A good software program, professional development opportunities for the development staff, and an investment in things such as research tools and consulting and training help for the development office can reap huge rewards.

Nonprofit leadership must understand the ethics of fundraising and not expect that they can pay a development officer or a consultant on a commission basis. Furthermore, one of the most critical aspects of engaging a development officer is that this person should not be expected to “raise their salary.” Does any nonprofit ask its CFO to “cut the budget by an amount greater than his or her salary,” or tell program directors that they need to “bring in program fees equal to or more than their salary?” I have never hear anyone expect this from anyone else in the organization, and yet, so often they think in these terms when engaging a development officer. They need to, instead, look at the ROI (Return on Investment) that a professional development officer can bring to the organization.

And, finally, leaders must understand that donors will expect the organization’s leadership to be involved in the fundraising efforts, both with their own financial commitment and in the process of identifying, cultivating, and soliciting donors. The development officer is there to coordinate the effort, create the development plan, and prepare the leaders for success, but leaders must get involved in the process themselves if the organization is to succeed in its fundraising program.

A few tips I’ve found helpful for nonprofit leaders:

• Make sure the development person reports directly to the CEO and is part of the management team.
• The development officer needs to have a good working relationship with the CFO and the CFO must understand the role of the development officer.
• The development officer should be given time at departmental staff meetings to talk about the role of development, how it helps the organization fulfill its mission, and how the rest of the staff can help development efforts.
• CEOs and board chairs must support attendance of development staff at board meetings and assure that the chief development person is the liaison to the development committee of the board.
• Boards and organization leadership should seek guidance from an expert if they are not certain of their role in the fundraising program.

For more tips on how the executive director and board can support development efforts, including a Philanthropic Assessment Form to evaluate our organization’s philanthropic profile, visit www.cvfundraising.com.

Linda Lysakowski, ACFRE

Linda is President/CEO of Capital Venture, a full service consulting firm with offices throughout the United States.  Linda is one of fewer than 100 professionals worldwide to hold the Advanced Certified Fund Raising Executive designation. In her seventeen years as a philanthropic consultant, Linda has managed capital campaigns ranging from $250,000 to over $30 million; helped dozens of nonprofit organizations achieve their development goals, and has trained more than 16,000 professionals in all aspects of development.

Linda is also a prolific writer and Wiley Press has published her books, Recruiting and Training Fundraising Volunteers in 2005, The Development Plan in early 2007. Linda is a contributing author to The Fundraising Feasibility Study—It’s Not About the Money, also published by Wiley in early 2007 and her latest book, The Essential Nonprofit Fundraising Handbook, was published in July 2009 by Career Press. Linda’s first eBook, Everything You Wanted to Know about Capital Campaigns is available on her website and she is currently working on several more books.

When the cat gets too big

I love days that I get to work in my office.  It gives me some quiet time to think and plan.  But today, my solitude ihas been interrupted.

Sadie is a rather large kitty and has decided that she wants to sit in my lap.  This is one of our older cats and she’s a big girl (16 pounds!).  Not only is she in my lap, but she’s purring to beat the band and insists on keeping her paw on top of my arm, making it difficult to type.  Why she isn’t upstairs pestering my daughter, I don’t know.

Now, you probably know I love my critters.  This one included.  I just don’t love her when she gets in my way. 

Which reminds me of a donor story I heard today.

My friend Lynn is an Executive Director of a good-sized organization and has a new facility manager she just hired.  He’s working out great and is followinfg her directions for keeping things clean and tidy.  There’s a long-time volunteer who also happens to be a major donor who has taken it upon himself to tell this young fellow everything he needs to know.  The only problem is that the volunteer/donor is giving the staff guy different instructions than what Lynn did.

So for Lynn, this volunteer/major donor is kind of like the cat in my lap – I love you, but don’t get in my way.  If the proverbial cat gets too big (if the volunteer/donor gets too caught up in being in charge) it can really cause problems.  Best to deal with it as soon as possible.

Lynn feels a bit caught between a rock and a hard spot. My suggestion is that she sit down with the volunteer/donor and go over the procedures for the facility and get his buy-in.  She should also let him know that she’s got the new guy well-oriented and is supporting him.  She should probably go one step further and ask the volunteer/donor to let her know if he sees things happening that he thinks needs to be addresed with the new guy.  And find a way to let the volunteer/donor know that it’s not his job to tell the new kid what to do.

This is a tough situation, trying to keep the volunteer/donor happy and engaged, but keep him out of staff business.

What would you do if it were you?  Click on the comment link and let me hear from you.

Meanwhile, I’ll see if I can convince Sadie to go find another lap!

Get your staff issues handled quick!

I’ve coached several Executive Directors lately about staff changes they need to make. Each of them have someone who needs to be let go and they know it. They just can’t bring themselves to do it.

Firing someone isn’t easy, I know. I hated doing it both times I had to let someone go, but I focused on the best interest of the organization, and things worked out.

In my most recent coaching conversation, I pointed out to the ED how this situation is not only dragging morale down in the organization, but it is sucking her energy and creating a negative atmosphere. There’s a cost to keeping that person around.

The longer she lets this situation drag on, the more the rest of the staff may lose respect for her, which may lead to even more problems with staff. It’s not so different than dealing with kids. You can threaten punishment and threaten punishment, and if you never take action, kids figure out that you’re all bark and no bite.

This organization really needs to be focusing on serving more people and fundraising. My concern is that while the ED is in this perpetual state of turmoil, she will not be able to provide the leadership the organization needs to move forward.

So, treat it like a bandaid – rip it off fast. It’s gonna hurt either way. May as well get it over with!

Are you making mistakes?

In the July/August 09 issue of Advanding Philanthropy, there’s a great article about learning from your mistakes in fundraising. The article talks about ways you turn mistakes into learning opportunities.

In my own experience, I’ve made plenty of mistakes! I always try to learn all I can from those mistakes so I can avoid making them again and become a better fundraiser.

One of the best things to do when a mistake is made in your Development office is to identify exactly what went wrong, NOT whose fault it is. Focus on the process, not the people. When you can pinpoint the place where the error was made, you can put policies or procedures in place that will prevent it in the future.

Mistakes are not a bad thing. I know some people that are so careful to not make mistakes that they hardly move forward. I believe that if you aren’t making mistakes at least occasionally, you aren’t pushing the envelope hard enough and you’re not raising as much money as you could be.

What do you think? Click on the comment link below and share your thoughts or experiences with mistakes.

When your Executive Director is not a strong leader

I had an amazing conversation with a client this week.  He’s the Board President of an organization that is facing many challenges.

They’ve been around for years but have relied too heavily on government grants. (Can you feel what’s coming?) Over the past few years, the state has cut their budget repeatedly, so this organization’s funding is shrinking.  They finally realized a couple of years ago that they were going to HAVE to do some fundraising if they were going to maintain their service level, so they hired their first Director of Development.  She’s doing a good job – writing grants, running events, sending out newsletters and appeals, etc.

One of the biggest problems in this organization is the Executive Director.  He seems to get in the way of progress more than he helps.  At a recent Board meeting, it was clear that the ED wasn’t on the same page with his Development staff.

Back to my conversation with the Board President.  Great guy.  Trying hard to do the right thing.  He took the ED to lunch and told him, in a supportive way, that he should be supportive of his Development staff’.  Basically, he gave the ED an attitude adjustment!  I was so proud of him for that, but also in the way he did it.  He was firm and supportive at the same time.  I’ve been really concerned about this organization for a while, but they seem to be moving in the right direction (however slowly).

As the Board President and I talked, I realized yet again how important – no, how CRITICAL it is to have a strong leader in the Executive Director role.  In order to really be successful, you MUST have someone who can hold a vision, motivate staff, and do the right thing.

I recently led a call for the Get Fully Funded Support Club on strong leaders.  I talked about the 10 characteristics of a strong leader, what to do if you are the leader, and what to do if you’re not the leader.  If you’d like to listen to the audio, simply become part of the club and you’ll have access to this audio plus many more.  It’s just $17 for your first month.  www.getfullyfundedsupport.com/benefits.html.

A word about staff – hiring and firing

I’ve had several conversations lately with Executive Directors about staff.  Some have openings that they need to fill and others have staff who need to be let go.  Here’s what I told them:  be slow to hire, quick to fire.

Take your time hiring and make sure you get the right person.  It’s critical to the success of your organization to get the right people in the right spots.  Hire for the skills you can’t train (like passion, commitment, etc.) and mentor your new hire for the rest. 

When it’s time to let someone go, be brave and do it.  Don’t ignore the problem and don’t fool yourself that it will get better.  If you find yourself dreading interactions with a particular staff person, deal with it!  Otherwise, it will suck your energy and slow down your organization’s momentum.

What do you think?  Let’s hear your horror story about hiring and firing.

Let Michael Phelps help your nonprofit organization

What does Michael Phelps have to do with your nonprofit organization?  Not much at first glance. But there’s a good lesson you can learn from his recent publicity.

In case you missed it, Michael got in some trouble over a picture of him at a party, having perhaps too good of a time.  Whether he’s guilty or not, lots of people have formed opinions and it has certainly tarnished his image and credibility.

I’ve preached for years that a nonprofit has its reputation and not much else.  When you depend on donors from the community to support your good work, it only takes a little negative publicity to slow down the donations.  Who can afford that in today’s economy?

So take a lesson from Michael: keep your nose clean!  Make sure everything your organization does is above board and beyond reproach.  Be transparent: be willing to share any information with the public.  After all, you should have nothing to hide and lots of your organization’s information is public record anyway.

When you’re making a decision you aren’t sure about, use what I call the ‘Front Page Test.’  If the results of your decision were on the front page of the paper tomorrow, how would people react?  What would your donors think?  What would your Mother think? 

I remember a story several years ago about a food bank that had a rodent problem.  Word got out and the media picked it up.  It was not good for their reputation in the community!  They had to do a good bit of work to do to rebuild trust.  Seems like we hear stories regularly (unfortunately) of incidents at day care centers, and the way the media tends to focus on news like this there’s a good chance it will get picked up.

So, what would be the worst thing that could happen at your organization?  Is there something that can be put in place to prevent it from happening?  Have you thought through how to handle communications with the public in times of crisis?  It’s really worth the time and effort to think through these questions.

Post a comment and let me know what you think.

Getting help – virtually

You know how sometimes there just aren’t enough hours in the day to get everything done? In most nonprofit organizations, that’s the case. A neat way to get some help is to hire a Virtual Assistant or VA.

I have a couple of VAs who help me in my business.  Each gives me a few hours a week and each has specific skills.  One handles most of my techie stuff (help with my website, blog, etc.) and the other helps me with administrative stuff and everything non-techie.

Think about times when you could use extra help.  Could you use help getting press releases or your newsletter out?  Or help handling registration for an event?  Or help with grant research?  Someone who is skilled in these things working from their own home and communicating with you via telephone and email could save you a lot of time.  Many VAs offer services that are very affordably priced (think $25 to $50 per hour depending on their skills).

My VA Terri lives fairly close to me and has been a huge help to me this summer.  Not only has she handled things like mailing out books, researching things on the internet, and helping me launch my e-zine, but she has accompanied me to a couple of full-day events to sell my books.  Twice I’ve been invited to speak and been offered a vendor table to sell books. I knew there was no way I could do both. Enter Terri. She did a great job of manning my table for me and we had a great time in the car talking about managing our businesses.

You can learn more about Terri at www.avirtualbiz.com.

Great way to dig up helpful information for grants!

If you write grants then you know that it can be hard deciding how much to ask for.

Here’s a great way to solve that problem!

Check out Guidestar (www.guidestar.org).  They keep a database of nonprofits, including foundations, along with a ton of information about each one.  One of the most helpful things that they have is the organization’s tax return or 990.

In a foundation’s 990, they report their assets (interesting to know), their Board of Directors (also interesting to know), who they gave to during the reporting year (very interesting!) and how much they gave to each (VERY interesting!!). If you haven’t looked at many 990s you’ll have to get used to wading through a lot of numbers that you won’t care about.  Typically, there are additional pages at the back that list who the foundation gave grants to and how much they gave.  This will give you a good idea of how much to ask for.

I like seeing who else they gave to.  If I work for a food pantry and I see that the foundation supported two other food pantries, I am definitely going to ask them for money, because it looks like feeding the hungry is one of their focus areas.

It takes a little bit of time, but it’s time well spent if it helps you focus your grant request.

Can your organization be Great?

I got my hands on “Good to Great and the Social Sectors” recently.  I’ve read it and I highly recommend it.

I’m a big reader of all things nonprofit and there are a couple of things in this short book that really resonate with me.

The first thing in the book that struck me was the importance of leadership for a nonprofit.  We all know that already, right?  You’ve got to have a good Executive Director in place to keep the organization moving forward.  The book talks about leaders being “ambitious first and foremost for the cause, the movement, the mission, the work – not themselves- and they have the will to do whatever it takes to make good on that ambition.”  It goes on to talk about this leader having a combination of personal humility and professionalism.  What a wonderful combination!  Sounds like a “servant leader” to me.  When I read it again, I think it applies to fundraisers as well – being committed to the cause and not themselves.

Another point in the book that really hit home for me is to get the right people on board.  When I was responsible for hiring, I knew this to be true!  The book suggests “getting and hanging on to the right people in the first place – those who are productively neurotic, those who are self-motivated and self-disciplined, those who wake up every day, compulsively driven to do the best they can because it is simply part of their DNA.”  You can’t teach someone how to always strive to be better.  You have to hire that talent.  But what about people who are already working for your organization who are stuck in the status quo?  From the top leadership, you can shift the culture of your organization to encourage staff to reach for more.  Be warned it can be like steering a cruise ship – direction can be moved only a little bit at a time.

Jim Collins, the author, writes “Greatness is not a function of circumstance.  Greatness, it turns out, is largely a matter of conscious choice and discipline.”

How will you choose to be Great today?

Staff hiring and retention

I believe that for most nonprofit organizations their staff is their greatest asset.  You must put a priority on hiring and keeping good people.

Hiring is tough, in my opinion.  I’ve done it many times.  Sometimes I made good choices and sometimes not.  I figure that a person can put anything in writing on a resume and they can say anything they think you want to hear in an interview.  Thank goodness for a 90-day probationary period when you do hire someone!  It gives you both the chance to make sure it’s a good fit before you move on.  If it’s not a good fit, you must cut your losses and try again.

My best success in hiring came when I looked for critical skills that I could not teach someone.  For example, when I hired someone to do grant writing, I wanted someone who could write well.  I didn’t care if they’d ever written a grant before or not.  If they could write persuasively, clearly, and concisely, I could teach them how to put a grant proposal together.  I don’t think I could teach someone how to write well.

Retention is another key piece in ensuring an organization’s success.  When you have good people on staff, don’t take them for granted.  Thank them.  Offer them more responsibility if they want it.  Take care of them or you’ll lose them.

Turnover is one of the biggest hurdles nonprofit organizations face.  It slows momentum considerably when you have to recruit and train new people.  There’s an article in the May/June issue of Advancing Philanthropy that talks about turnover.  A report from the Georgia Center of Nonprofits in Atlanta offers some interesting facts on retention and vacancy.  Check it out at www.opportunityknocks.org

Great tips for running off your staff

I believe that good staff people are the heart and soul of a strong nonprofit.  Unfortunately, there are lots of supervisors out there who aren’t good at their job and cause turnover by following these great tips for running off their staff.

1.  Don’t give your staff any support.  Let them flounder on their own. I’ve seen an Executive Director do this.  She thinks she’s doing a great job, but the truth is she isn’t giving her staff any guidance or direction at all.  She holds all the cards when it comes to information and she doesn’t seem to want to share.  Not a good situation for anyone.

2.  Give them waaaaaaaay too much to do.  Then add responsibilities that have nothing to do with their job. I was talking with a friend today who is a Director of Development at a small agency.  Her ED decided that since she was the most computer-savvy person among the staff he would put her in charge of IT in addition to all her fundraising and PR duties.  She tried to talk with him to let him know she is not comfortable doing that.  He’s unwilling to negotiate.  Guess who is reading the job ads now?

3.  The best way to be a boss is to be a pal.  Make friends with the people you supervise. We spend more time with the people we work with than our families, but that doesn’t mean we have to be best friends with our co-workers. It’s very difficult to provide constructive criticism to one of your staff if you have shared too much personal stuff with them.  Strike a balance of getting along with your staff and being professional with them.

I hope you get that these “tips” aren’t meant for success but for failure.  To be a good supervisor, you need to be a good leader and truly care about your staff.  You need to provide them with the tools and training they need to do their job well, then get out of their way.  Listen when they need to talk.  Support them when they are uncertain.  And be a good example of the kind of staff person you want them to be.

Cut your losses when it’s time

I was talking with a friend the other day and he was telling me about a problem with a staff person he supervises.

This person is causing a problem and is very negative, and could be the problem child at any of a hundred nonprofits.  His story reminded me very much of a co-worker I had once upon a time.  It was so draining to have to deal with her and very frustrating that the Executive Director wouldn’t address the situation.  The ED thought that the staff person’s commitment to the organization more than made up for the number of volunteers that she ran off and all the other damage she did.

I suggested to my friend that he needed to let the negative staff person go.  When you consider how much time and energy that kind of staff member can suck out of an organization, it can completely undermine the good work your organization is doing, and it’s worth gathering your gumption and cutting them loose.  Sometimes some good coaching can help a staff person get it together and get on board with everyone else.  Other times, nothing will help.

It’s really important to figure it out and take action. Don’t let ugly personnel situations fester. It’s much better to deal with them and move on.

Fundraising requires strong leadership

Leaders who embrace their roles make all the difference in the success of a nonprofit organization and its fundraising efforts.

Board members are all Leaders of the organization.  They must accept their roles and responsibilities, and if they don’t know what those are, get training quick!  Board members must be willing to participate in fundraising and make a financial gift themselves.

Executive Directors should provide vision and enthusiasm for their organization.  They have mentoring and coaching duties for their staff.

Here are some helpful quotes on Leadership:

Great leaders are great simplifiers. Complexity breeds procrastination. Grand ideas, plans and ventures must be broken into doable bits, understood by all.  –Mike Monahan

Let your energy and enthusiasm shine when you talk about things you believe in.Your wholehearted commitmentto what you believe in will make it easier for others to drop their natural resistance.  Your energy and enthusiasm, if genuine, will make it easier for others to choose to believe in what you believe in.  –Doug Smart

Practice the Leadership ABCs… Attitude, Behavior, Communication.  Think like a leader (attitude).  Act like a leader (behavior). Speak like a leader (communication).  –Donna Satchell

Please don’t chase the dollars!

There’s an organization I’m familiar with that has done a great job of chasing dollars.  And it’s NOT a good thing.

You see, they started with a mission that was focused in one direction.  Then, as they found grants, they would start programs so they could qualify for them. Big mistake!

After doing this several times, their organization has become quite disjointed programmatically.  They have programs that don’t fit in their mission, and they are nearly completely grant dependent.  If those grants ever go away, they’re going to be dead in the water.

From an outsider’s viewpoint, I’m thinking they must not have passion for their original mission, because they don’t seem to be interested in staying true to it.  They’re just chasing dollars.  They should be focusing on fundraising and building relationships with donors.  They should be working on programs that further their mission.

Fundraising is about raising money to support what you are already doing, not getting money to start something new just so you can keep paying staff.  Eventually, it will cease working and the organization could cease to exist.

Benefits of professional networking

I attended my local AFP chapter meeting today.  It’s a great group and always a good time.

In case you aren’t familiar with AFP, it’s the Association of Fundraising Professionals (www.afpnet.org) and it’s a great source of education and networking.  Most of my fundraising buddies are members and the meetings give me a chance to catch up with them and hear the latest from the local nonprofit scene.  We share news about capital campaigns, special events, and job openings.  In fact, we usually hear about jobs through AFP before they hit the classified ads.

Networking with fellow fundraisers can offer lots of benefits.  You get the chance to get the inside scoop on events others are doing, learn about vendors, hear about local grant opportunities, and more.  If you aren’t networking, you miss out on all the cool educational opportunities and you limit your learning.  You also miss out on some really great friends who face the same challenges you do.

Take advantage of every opportunity to network with other fundraisers. The benefits are great!

Executive Coaching is catching on with Nonprofits

Executive Coaching has been popular with for-profit businesses for a while now and it’s finally catching on with nonprofits.

Executive Coaching provides a unique form of support for the person being coached.  It’s more personal than working with a consultant, and it’s definitely not a one-shot deal.  A coach gives you someone to work with over time to work on issues that get in your way of being successful. Coaching helps you discover your own solutions by asking thought-provoking questions.  It’s not about giving you the answers, but about bringing out what’s already inside you.

For an Executive Director who is knee-deep in work and starved for resources, a Coach can help enhance skills like time management, leadership, and delegation.  In turn, this creates a more positive work environment as it ripples through the organization.

Here are some signs you might benefit from an Executive Coach:

• You struggle with the same issues over and over.
• You have conflict with key people in your organization (Board or staff).
• Problems in the organization keep you awake at night.
• You’ve recently experienced major change in your organization (loss or addition of a program or key staff person).
• You spend lots of time putting out fires.

When you are frustrated, exhausted, or at your wit’s end, a Coach can help you get to the root of the problem.  You’ll get an outside person with an objective eye providing you with the support you need to make the changes you want.

Cut Your Losses

I was talking with an Executive Director today who has a staffing problem.  She’s got someone in a role who just isn’t working out.  She’s made several efforts to work with this staff person to help them be successful, but it just isn’t working.

My advice to her is to cut her losses.  It’s no fun to fire someone (believe me, I’ve done it more than once), but you have to do what’s in the best interest of your organization.  And when you have a staff person who is obviously not a good fit, you have to make the tough move and let them go.  Staffing issues can drain your energy and hold you back from doing the good work you need to be doing.

By letting the mis-matched employee go, you can start to move forward again.

Signs of change

I happened to look out the window a few minutes ago and saw a robin in my yard.  Seems a little early for that first sign of Spring, but it’s a good reminder that things do change.  Things change, circumstances change, everything changes.  Boards change, staff members come and go, programs get cut and added.

Maybe it’s time to think about those things that must remain no matter what else changes.  Will your mission stand firm no matter what happens to the economy this year? How about your philosophy for taking care of your donors? What else must remain steadfast in your organization?

How goes the fundraising this year?

Since today is February 1st, it seems like a good time to take stock of the year so far.  Just one short month ago, many of us were making plans for the year.  So how’s it going?

If you haven’t made plans for the year, it isn’t too late to start.  Set 3 goals for things you’d like to accomplish (maybe the number of dollars you want to raise, the number of new donors you want to get, and the numbr of current donors you want to renew).  Then for each goal, write out the action steps it will take to reach each goal.

If you’d like more help, I’ll be leading a teleseminar on Feb 19th to cover the basics of strategic and fundraising planning.  Check it out at www.sandyrees.com/training.html.

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