Can Your Education Events Help You to Raise Money?

Is one of your goals to educate the community? When you educate others do you do so in a way that enhances fundraising? Is it possible to educate and leave your audience more committed to your cause? The answer is yes. Here is an example:

A hospital foundation holds an annual education luncheon. The event’s cost covers it’s cost. The goal is to educate the community and enhance donor relationships. Staff and board members are on-hand to greet and welcome guests. The event’s one page double-sided program contains two brief presenter bios and the day’s events. It includes a paragraph noting that the event’s sponsor had, “through the generosity of the community, provided $4.5 million to advance oncology in the community.” A slide show throughout the event shows the foundation’s logo. All this is basic. You’ve seen these elements before and include many if not all of them in your events.

The Difficult But Worthwhile Difference to Replicate

The main program consisted of two doctors sharing the latest breakthroughs in their field. Sprinkled throughout their presentations they referenced, and in one case showed pictures, of new equipment purchased by the Foundation. They shared how it helped their work. They shared how it made a difference in the lives of their patients. While one can argue that this was self-serving, since the doctors were thanking donors for their gifts and hoping for more, the impression the doctors gave was one of grateful humbleness (not always a common doctor trait) for having access to cutting-edge tools. One never sensed it was a commercial. Instead, it was a sharing of facts from their perspective and the equipment was a natural part of the breakthroughs.

The event left one educated about newest advances—some of which attendees will remember a week later. More than facts, the education attendees got was an understanding of the foundation’s case. Buying new equipment, in this age of quick technology turnover is not exciting. What is exciting? Giving to enhance my hospital, to make it more competitive, to provide residents (including possibly me and my family) local quality care and creating grateful dedicated doctors.

This community education event did double duty and more. Do your education events do as much for your cause? For more ideas about how to develop income for your organization see the many articles, podcasts and other resources on our website.

The Feasibility Study - Take the Guesswork out of your Capital Campaign

Your non profit organization decides it needs to raise a significant amount of money for various projects and you want to run a capital campaign (also known as a comprehensive campaign). The cost of all the projects becomes your campaign goal. But how do you know if your goal is realistic?

One way of gauging your goal is to conduct a feasibility study. You can test various things in the study, including your case for support, your organization's reputation and recognition in the community and your campaign components and goal as well as your campaign readiness. The results of the study may surprise you.

One post-secondary institution was convinced they were ready to launch a major campaign for various projects on campus. They wisely decided to invest in a feasibility study to be as confident as possible in their decision to launch the campaign. They polled 50 prominent citizens who were top prospects and were astonished at the results.

The respondents felt they were not ready to launch a campaign, for many reasons:

- their reputation in the community was not as favourable as they assumed

- they would have had difficulty recruiting a campaign cabinet because of their community image - few wanted to be associated with their brand

- they felt their goal was 10 times too ambitious

- only 20% of respondents said they would donate to the institution.

Once the reality set in, they regrouped and spent the next 5 years turning things around. They built relationships, improved their image by investing in the community and recruited board members from leading corporations and institutions. The result? They were able to launch a highly successful multi-million dollar campaign to build new campus infrastructure and fund research, scholarships and bursaries. They continue to receive community support for their initiatives - their efforts made everyone sit up and take notice. All because they invested in a feasibility study!

Laura Mikuska

Mikuska Group

Fund Development & Event Specialists

Summer Reading: Whatever It Takes

Cheryl Pollock recommended this book at a collaboration presentation sponsored by the Nonprofit Leadership Center of Tampa Bay late last year. In the presentation, Pollock shared the success of the Y’s Community Learning Center program at Sulfur Springs Elementary School. Before starting the program, after a year of research, the Y selected the Harlem Children's Zone, discussed in this book, as a model for the Sulfur Springs program. The Harlem Children's Zone is a community-based program that serves 17,000 children in a 100-block area of Harlem in New York City.

Except for the concept of finding board members with extremely deep pockets, you will not find any answers here about how to fund your programs. However, if you seek moral support for solving an enduring, multifaceted, challenging problem, which many nonprofits do, or if you wish to help end “the cycle of generational poverty”, Paul Tough’s book will give you insight into the thinking and actions of the Zone’s leader Geoffrey Canada. Along with sharing five years of investigation, the author who is the former editor of the New York Time Magazine, shares history, related research and the background story on recent efforts to end poverty.

Summer Reading: Banker to the Poor

Muhammad Yunus’ book traces the start of the now international Grameen (village) micro-lending program in Bangladesh. It has three vital lessons for nonprofit leaders.

1. Never underestimate the value of a small amount of resources in the right place at the right time. The people Yunus started serving with mirco-loans made the equivalent of two cents a day.

2. Never forget your mission. As micro-lending became perceived as successful, Yunus received many opportunities to lend money to people who were poor, but not necessarily the poorest of the poor. Yunus remained focused on his goal to serve the lowest 25 percent of the population.

3. Never forget to shape your requests to donor and others in packages that help them “see” your needs in ways they can appreciate. At one point working with the Central Bank, Yunus sought to develop a housing loan product. The Central Bank declined these since a house constructed from a $125 loan would not add to the country’s housing stock. Next, Yunus requested a “shelter loan.” This too was rejected. Finally, Yunus asked for a “factory loan” since the borrowers worked as entrepreneurs from their homes. With the assistance of the Governor of the Central Bank, Yunus received permission to begin his loan program.

For other reading suggestions see Recommended Reading.

Instead of Low Overhead…Show How You Make A Difference

Earlier this year, Don Pallotta, author of Uncharitable, spoke locally. His key thesis, backed up with a lot of data, is that rating nonprofits based on their overhead asks the wrong question. Instead, he suggests that potential donors should ask: “Does the nonprofit make a difference? Do I trust them?”

For years, many nonprofits have completed extreme aerobics to keep their overheads low. Others simply report bogus numbers. Read a handful of 990’s. You’ll see some examples of creative accounting. What’s more, the whole sector has scars from decisions that were made to keep overhead rate low. Scars that were gained seeking low costs rather than improved results.

Let’s endeavor to use Pallotta’s work to reduce the frequency of the overhead question and increase the “does your nonprofit make a difference” question. How might you demonstrate your effectiveness? Pallotta shared several ideas. He suggested video clips that share your goals and progress. He also mentioned sharing the results of your customer satisfaction surveys. Add these and other proofs to your website and Guidestar information. Show how you make a difference.

If you are interested in making more of your outcomes first class, see How First Class are Your Operations? at www.kedconsult.com. Or, email me karen@kedconsult.com , I will send you a copy of the April Added Value article on this topic.

Ruined By A Grant?

The other day, my cousin emailed about a program at her congregation. “We have a Hispanic Ministry here which was funded partially though a grant. It will expire at the end of this year. With that income source going away, the Finance Committee is interested in learning if there are other grants out there that we could target.”

Too many programs, started with a grant, have weak or absent sustainability plans. In most cases, the grant funds are shortly expended and the program (no matter how excellent) closes for lack of funding. Thus, your great idea is ruined by a grant.

Don’t let a grant ruin your great program. Disciple your organization, to create a realistic sustainability plan and implement it. Here, are two articles that will help you to create programs that will be enhanced, instead of ruined, with grant funding:

When to Begin Your Sustainability Plans
and
Sustainability Questions for Before You Seek the Grant

Compelling message nets flood of results

As the rising flood waters pass through Fargo and Grand Forks, North Dakota towards Winnipeg, Manitoba, I am impressed how communities come together to combat the always challenging Red River. People do extraordinary things for their neighbors and friends in times of crisis. What strikes me the most is how complete strangers pitch in after a public call for volunteers to fill sandbags and build dikes (truly back-breaking work), provide food and any other task they are called upon to do. Hundreds heeded the call for help in our area and thousands more have already contributed time and labor, as well as moral support, throughout the flood zone.

What makes people respond? It's the compelling nature of the call to action. While this is a short-term crisis situation, convincing people to respond to any non-profit or community cause all comes down to the case for support.

A good case generally has these components:

• Mission (save the communities affected by the flood)
• History (history of fighting similar flood events over the years)
• Accomplishments (enhancing flood protection, mobilizing volunteers)
• Goals and Strategies (breaking up ice jams, reinforcing existing and building new dikes)
• Need for Support (filling, hauling and heaving sandbags, making and delivering sustenance, directing traffic, providing moral support)

A good case will outline not just needs, but also how engaging in the cause will benefit the donor, volunteer and community. It's evident as I write this how mobilizing the community has benefitted the communities of Fargo and Grand Forks. As Winnipeg and Manitoba citizens hold their collective breath, we feel confident that we will also see how responding to a compelling case will save our homes and neighborhoods.

Laura Mikuska

Laura Mikuska Consulting

laura@mikuska.com

(204) 253-2447

www.mikuska.com