I am delighted to announce today’s release of the newest volume in the Financing Not Fundraising e-book series, Financing Not Fundraising, vol. 3.
The idea behind Financing Not Fundraising is that the traditional way nonprofit leaders, boards and donors have approached funding the work of nonprofits doesn’t work anymore. Traditional nonprofit fundraising forces nonprofits to work harder and harder for a smaller and smaller return. Nonprofits must break free from this vicious cycle and take a much more strategic approach to securing the overall financing necessary to achieve their goals.
The first step in this process is to fully integrate money with the mission and core competencies of the organization. In creating such a strategic financial model for her organization, a nonprofit leader will be setting her organization on a path towards financial sustainability, growth, and ultimately change to the social problem her nonprofit attempts to address.
The Financing Not Fundraising, vol. 3 E-book expands on the basic elements of the Financing Not Fundraising model and helps those nonprofit leaders who are ready to start moving away from fundraising to really dive into this new approach.
Contained in this e-book are new ways of thinking, new tools of analysis, new questions to ask. All with the intent of pushing your staff, your board, even your donors, to fund your work in a more effective and sustainable way.
Here are the chapters in the Financing Not Fundraising, vol. 3 E-book:
- Overcome Nonprofit Taboos
- Remove Money Hurdles
- Find and Keep a Great Fundraiser
- Recruit a Money Raising Board
- Set a High Board Fundraising Bar
- Enlighten Your Donors
- Break Free From the Starvation Cycle
- Create Donor Personas
- Calculate Opportunity Costs
- Stop Apologizing
- Get Started
If you are tired of hitting your head against the unmovable fundraising wall, I invite you to explore a new way of sustainably financing the critical work you do.
Earlier this month, there was a great post by Linda Wood from the Haas Fund bemoaning the fact that 73% of nonprofit leaders in a recent Center for Effective Philanthropy study said they lack resources to build their leadership skills. And the recent Meyer Foundation Executive Director Listening Project found that nonprofit leaders’ biggest challenges are fundraising, human capital management and board of directors management — all leadership challenges.
This doesn’t surprise me at all.
I constantly witness the lack of support nonprofit leaders receive for building their leadership skills. Leading a nonprofit is an incredibly demanding task and the challenges are only growing. Nonprofit leaders are expected to magically solve the world’s problems, on a shoestring, while herding a disparate group of volunteers, funders, clients.
Which is why I think nonprofit leader coaching holds so much promise for the sector. If a struggling nonprofit leader had a strategic partner who could help her think through staffing, fundraising, board management and strategic decisions, instead of having to figure it out all on her own, it could be transformative.
Nonprofit leader coaching is one-on-one strategic counsel from someone with deep management, financial, and strategy expertise. With a strategic coach, a nonprofit leader can find solutions to issues like how to:
- Create the most effective staffing structure for growth
- Recruit and engage an effective board
- Diversify and grow funding streams aligned with the nonprofit’s specific mission and operations
- Analyze strategic opportunities for the organization
- Develop effective collaborations that build on the organization’s assets
The return on investment of coaching can be really exciting. Let me give you some examples:
Increased Board Fundraising
Fundraising is such a tricky business. Often nonprofit boards are fairly ineffective at it, largely because they and their nonprofit leader don’t know how to focus the board’s efforts. This was true for one of my clients whose board didn’t understand fundraising and was confused about their role. Through coaching, both with the executive director and board members, the board now understands how each of them individually can contribute to bringing money in the door. They also understand how to focus their efforts on the most profitable activities and now have the skills and knowledge to move the organization’s financial strategy forward. As a result, the board has dramatically increased the number of new donors to the organization.
Clearer Strategic Thinking
Nonprofits are constantly bombarded with new opportunities, new partnerships, new funding ideas. A coach can help a nonprofit leader think through how a new opportunity might fit with the overall organization strategy, ask hard questions and analyze the costs and benefits. In this coaching role, I encourage nonprofit leaders to take a step back and examine all of the implications of a decision, how it might draw resources away, what impact it will have on the larger work, how it moves the organization closer to or farther away from strategic alignment, and so on. Coaching can get nonprofits away from group think and towards making smarter, more strategic decisions.
More Productive Staff
Management of staff is one of the hardest jobs of being a leader in any setting, but I think it’s particularly tricky in the nonprofit sector where resources are tighter and nonprofits are often encouraged to play nice at all costs. In coaching around staff challenges, I help a leader create an effective staffing structure for the organization, analyze and resolve staff conflicts, and make sure all staff are playing to their strengths.
Strategic coaching is not right for every nonprofit leader because it takes a real commitment to change, a willingness to analyze situations, and an openness to making difficult decisions.
But coaching is right for a leader who:
- Leads an organization that is ready for change
- Is open to trying new approaches
- Wants to have difficult, but important, conversations with board, staff and funders
- Needs a thinking partner to help make strategic decisions
- Recognizes that she doesn’t have all of the answers
- Is ready to build her leadership skills
Photo Credit: PhilanTopic
In today’s Social Velocity interview, I’m talking with Bill Shore. Bill is the founder and chief executive officer of Share Our Strength, a national nonprofit working to end childhood hunger in America. He has served on the senatorial and presidential campaign staffs of former U.S. Senator Gary Hart and as chief of staff for former U.S. Senator Robert Kerrey. He is also the author of four books focused on social change, including, The Cathedral Within.
You can read past interviews in the Social Innovation Interview Series here.
Nell: You’ve been on a (writing) kick lately encouraging nonprofits to make bigger, bolder goals. Which do you think comes first: bold goals or a sustainable financial model? And how are the two related?
Bill: Just as every journey aims toward a destination, every social change effort should start with a goal, bold or otherwise. A sustainable financial model, while critical, is a means to an end, not an end in and of itself. We began Share Our Strength with a financial model based more on cause-related marketing and corporate partnerships than on traditional fundraising. By leveraging the assets we’d created and delivering measurable value back to our partners, we generated significant revenues in ways that felt more sustainable. We were a grant maker to other organizations, and proud of the good work they did, but ultimately it was unsatisfying not connected to a bold goal.
Nell: The stated bold goal of Share Our Strength is to eradicate childhood hunger in America by 2015. That’s 2 years away. Will you get there? And how has your experience working toward that bold goal affected your thinking about how realistic bold goals are?
Bill: It’s a great question because a bold goal is a double edged sword. If you achieve it the market will reward you. And if you don’t it may penalize you. That’s all as it should be. But the real reason to do it is not the market or fundraising or the media, but for oneself. When you devote a lot of your life tackling tough social problems, you deserve to know whether you are moving the needle. We’ve seen the market reward Share Our Strength for simply setting the goal of ending childhood hunger by 2015. Our revenues have more than doubled, and that has fueled increased impact. We will not get all of the way to our goal by 2015. We will need more time. But we believe we will have earned it. In the states and regions where we have concentrated our resources we will have proven that childhood hunger can be eradicated. We believe that such compelling proof of concept will give us the support necessary to scale the strategy everywhere.
Nell: You have argued that nonprofits are not resource-constrained, rather that they “suffer a crisis of confidence” in investing in their own capacity. Some might argue that that’s easy for the head of a $40+ million nonprofit to say. How do you think the average nonprofit can move beyond the starvation cycle of never having enough resources?
Bill: It’s not that nonprofits are not resource constrained, it’s because almost all of them are that it is even more important to invest in their own capacity, to take a long view and be willing to trade off impact in the short-term if that impact can be multiplied dramatically in the long term. Imagine a maternal and child health clinic that serves 50 women a day and makes the decision to serve only 25 a day for 6 months so that it can invest in capacity that will enable it to serve 500 a day when the six months are up. The compelling nature of urgent human need makes that a tough decision to make, but it’s the right one if you have the confidence that more capacity will equal more impact.
Nell: Moving to bold goals necessitates a way to measure whether those goals have been achieved. Yet outcomes measurement is a very nascent practice in the nonprofit sector. How do we (or can we) get to a place where we are effectively measuring the results of both individual nonprofits and larger solutions? And who will pay for that work?
Bill: As your question suggests, measuring outcomes, and communicating what you’ve measured, comes at a price. Indeed it can be expensive, and that might mean less money devoted to program in the short-term. With few exceptions there won’t be third parties lined up to pay for it. Organizations will have to decide whether it adds to their long-term competitive strengths to invest in measuring outcomes and if it does, they should be willing to make that investment. A key task of organizational leadership is to marshal the will for these investments that don’t pay off until the long-term. The challenge is exacerbated by the fact that measurement is a still nascent practice, there won’t be common measure that can be adopted in a one-size-fits-all manner, and so each organization must wrestle to the ground the metrics that are right for their work.
Nell: What about bold philanthropy and bold government? Is it possible for those two sectors to be more bold? What would that look like and how optimistic are you that those kinds of changes are possible?
Bill: I’m confident that bolder philanthropy can lead to bolder government. Our politics currently is so polarized and paralyzed that people need to see examples of programs that work. Philanthropy can do things that government can’t do: take risks, innovate, and be closer to the people we serve. And when that all adds up to a program or service that works, it creates an even greater moral obligation on the part of the public sector, i.e. government to take what works and help scale it. Resource constraints and failures of imagination have conditioned us to pursue incremental change. But big and complex problems demand transformational change to address those problems on the scale that they exist.
Photo Credit: Share Our Strength
A couple of years ago I recognized that there was a real need in the nonprofit sector for tools to help nonprofit staffs, board members and donors make their organizations more strategic and sustainable.
So I began developing e-books, guides and webinars to explain new concepts (like Financing Not Fundraising), demonstrate how to use new models (like a theory of change) and guide nonprofit leaders to a better way (like better engaging their board).
Today, I am really excited to announce, as promised, the launch of the expanded and streamlined Tools store at Social Velocity.
I have spent the last several months revising and expanding many of the e-books, step-by-step guides and on-demand webinars available for download at the Social Velocity Tools page. And we’ve completely revamped the shopping cart experience to make it easier to find the tools you need and to offer additional payment options.
There are four categories of Tools available to you.
- On-Demand Webinars
These can be viewed whenever and however many times you’d like. Some of the webinar topics include:
- Step-by-Step Guides
These take a complex concept (like a theory of change) and show you step-by-step how to create one for your organization and how to use it to garner more support, chart a strategic direction, and much more. Some of the Step-by-Step Guides include:
These explain new approaches, the theory behind them, and how to start implementing a changed approach in your nonprofit. Like the:
- Tool Bundles
I’m most excited about these bundles where I’ve grouped e-books, webinars and guides around a particular goal a nonprofit leader wants to achieve, saving you 15% off the individual tool prices. For example:
But there are many more e-books, guides, webinars, and bundles available on the Tools page, so I invite you to check it out.
I hope these Tools are helpful to you as you work to move your nonprofit forward. Please let me know if you have questions as you explore.
And as always, please let me know what other tools would be helpful to you.
Yet, if you take a big step back and develop a groundbreaking board, you can dramatically increase your ability to achieve financial sustainability, reach new audiences, deliver more program results, and meet your organizational goals.
This month’s Social Velocity webinar, “How to Build a Groundbreaking Board”, will help you do just that.
The How to Build a Groundbreaking Board webinar will show you how to lead your board to:
- Define what it should do and how
- Recruit the right people
- Drive strategy for the overall organization
- Raise more money and use it more effectively
- Strengthen the organization
- Open your nonprofit to greater support, awareness and connection in your community
How To Build a Groundbreaking Board
A Social Velocity On Demand Webinar
Keep in mind that all Social Velocity webinars are “On Demand” so even if you can’t make this date and time, you can still register for the webinar and receive all the same content.
The registration fee will get you:
- A link to a recording of the webinar, which you can watch as many times as you like
- The PowerPoint slides from the webinar
- The ability to ask additional follow-up questions after the webinar
Photo Credit: State Library of Queensland
What I love best about my job is opening nonprofit leaders to new and bigger possibilities. Last week was a busy one. I was in Phoenix for part of the week speaking at the Planned Giving Roundtable Conference and then I flew to New York to lead a board retreat at the National Guild for Community Arts Education.
When I am speaking to or leading a group, I love the moment when they move from discouraged, exhausted or burned-out, to energized by new ways of thinking.
At the Planned Giving Roundtable I delivered a keynote address about the power of a theory of change. A theory of change is such an incredible tool for helping a nonprofit articulate what value they provide the community. And once you have articulated that value, a theory of change is a jumping off point to:
- Chart a strategic direction, which guides the action of the organization and focuses limited resources
- Prove the results the organization is achieving, which allows the nonprofit to,
- Attract more support, leading to the holy grail in the nonprofit sector,
- Sustainable Community Change
So the theory of change serves as the fundamental building block in making that process happen, like this:
Because the theory of change is so instrumental, I believe that every nonprofit organization that is working toward social change should have one. Without a theory of change, you don’t know what you are trying to accomplish, how you will get there, or whether you have accomplished it, and you certainly won’t attract the funding necessary to get there.
So once I (hopefully) convinced the group in Phoenix about the importance of a theory of change, I flew to New York City to help the board and staff of the National Guild for Community Arts Education actually develop their own theory of change.
It was so exciting to see the group work together to articulate how their organization puts community resources to work towards community change. It’s not easy to come to agreement about exactly what change an organization is working towards, which is why I think it is important to have an outsider leading that process.
At the end of the day, board and staff were energized and excited about their evolving theory of change and how it could help them chart a new strategic direction, focus resources, and attract more support and momentum.
That is the moment I love. When people who are so passionate and working so hard for community change, can take a step back and articulate how and why they do the work that they do. Because it is in taking that big step back that you can begin to develop a strategy for bringing hoped for change to fruition.
Photo Credit: Dean Morley
There is a new nonprofit that nicely demonstrates the challenge of identifying a social problem and then developing the right strategy for solving that problem. Code.org’s sole aim is to solve the impending shortage of computer programmers. Because we have grown increasingly dependent on technology in our everyday lives, while our schools have not adequately prepared our children to keep up, we are facing an enormous shortage of people who can create the technology we desperately need.
Projections estimate that by 2020 we will need 1.4 million computer programmers, but will only have 400,000 computer science graduates, creating a 1 million person gap. And 9 out of 10 schools aren’t currently teaching computer programming. This is a huge problem.
Enter code.org. The nonprofit was founded earlier this year with two stated goals:
- Spread the word that there is a worldwide shortage of computer programmers, and that it’s much easier to learn to program than you think.
- Build an authoritative database of all programming schools, whether they are online courses, brick+mortar schools or summer camps.
They have an impressive team and list of supporters, many of the darlings of the technology startup world. And they’ve already attracted the attention of the national media and have a very savvy media presentation including some pretty cool videos.
Code.org is fascinating to me, not just because I agree that connecting how we educate our children with the skills they will need in the future is a huge issue, but also because code.org demonstrates the strategic struggle facing every social change agent. The struggle lies in identifying a social problem and then creating the right solution to the problem you’ve identified.
There are many ways you could attack the problem of a shortage of future computer programmers. You could decide to:
- Advocate for changes to the public education system
- Create new training sites around the country
- Develop coding games for kids
- Create a marketing campaign that encourages more kids to try coding
- Develop a database of available training programs
So far code.org has decided to focus on the last two. But it begs the question, why those two?
In identifying a social problem and then choosing a possible way to attack it, social change leaders must ask the following questions:
- What is the most effective entry point for changing this problem? For code.org they think the entry point is kids themselves, getting them to demand coding training, as opposed to changing education policy or increasing the supply of coding locations.
- How do we use our unique assets to address that entry point? Code.org’s biggest asset is their long list of technology celebrity supporters, so they are tapping into those people (Bill Gates, Mark Zuckerberg) to show kids how cool coding is. If, instead, code.org had a unique ability to move education policy forward, or proprietary coding software that more quickly delivered results they could have decided to go those routes.
- How do we structure our organization to deliver the solution? Right now code.org is a website with a series of videos and a growing database of training locations. So they don’t need a lot of staff or structure. If, however, they had decided to set up new training sites around the country or advocate for public education changes in every state, they would have needed a much larger operation with more locations and staffing.
- How will we measure if our solution is working? Code.org has clearly delineated where they need to be. By 2020 they want to see 1 million more computer programmers. So they have to figure out how many more college students they need in computer sciences, how many more high school students they need who can code, how many more middle school students who are dabbling in code and so on. I’m hoping they have metrics all along the way and the ability to see if the numbers are actually growing.
Code.org has very clearly defined a critical social problem and they have marshaled an impressive army of supporters to work toward change. It remains to be seen, however, whether they have asked the right questions and selected the right path for making that change a reality.
I’ve been talking lately about nonprofits needing to make more investments in their organization, in their sustainability, and in their future. Well, I have the perfect opportunity for you to do just that. I’m excited to announce the newest Social Velocity tool — the Financing Not Fundraising E-Course. Over the course of two months I will be leading a group of 15 nonprofit Executive and Development Directors to determine what’s holding them back from raising more money and create a comprehensive financing plan for their organizations.
This e-course will take you from Fundraising to Financing. We’ll start with a fundraising assessment of where your organization currently is in your efforts to bring money in the door, and we’ll end with a comprehensive, actionable financing plan to move your organization forward.
Here’s how it will work:
- We’ll kick off with a webinar to help everyone understand what a fundraising assessment looks like and what it includes.
- Everyone will be sent away to complete the detailed fundraising assessment I will provide them.
- I will then analyze each individual fundraising assessment.
- The 15 participants will be split into two groups. I will lead a 90-minute coaching session with each group to go individual-by-individual to explain what their fundraising assessment revealed and where they should focus their change efforts.
- After the coaching sessions I’ll host an informal Google Hangout where participants can discuss questions, hurdles they are encountering, where they need help.
- Then I’ll lead a second webinar to explain how to create a financing plan.
- I’ll give everyone a Financing Plan template and detailed instructions on how to create their own financing plan.
- Then I’ll analyze everyone’s completed financing plan.
- We’ll do a second round of coaching sessions where I will go individual-by-individual to explain where their financing plans can be improved.
- We’ll end with a final Google Hangout where everyone can discuss, ask questions, get support and move forward.
- And throughout the process you can always reach out to me via phone and email with additional questions or for guidance.
The registration fee for the e-course is $499.
Of course I’m biased, but to me this investment just makes sense. With this e-course you can set your nonprofit on a path to a much larger, more sustainable financial engine. This is about making an investment now in order to enjoy a much larger payoff down the road.
If you’d like to join us, register soon. The e-course is limited to 15 people, and it’s already filling fast.
I hope to see you there!
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