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Posts Tagged ‘management’

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers: NPO

In change management, Discussables, Research, strategic planning on April 13, 2011 at 8:07 pm

INFLUENCES ON THE NOT FOR PROFIT SECTOR

The recession was a wake up call.

Many nonprofits were left high and dry when their sole funding stream, gov’t line items, grants or contracts, began to disappear. Many scrambled to pressure the feds, others sought funding elsewhere. Some sadly closed up or, if they were lucky, merged with a similar organization.

Relying too heavily on one form of funding is a death knell. Diversifying funding is essential to nonprofit sustainability. In the recently released 2010 Nonprofit Fundraising study by the Foundation Center, organizations raising over $3MM annually did so because of their diversified funding streams. Over seven different funding vehicles were used by over 73% of those in the $3MM plus group. How many funding streams are you accessing right now? Corporate giving is an important part of those streams.

Another influence on nonprofits, peeking their interest and attention toward new corporate philanthropy, is the overwhelming BUZZ on corporate social responsibility, which has not been missed by these organizations. This is making them question their approach and strategy and reformulating to meet the new corporate perspectives. Additionally, many nonprofits are now finding themselves being denied funding from previous corporate partners, many of whom they relied on for significant help, because the companies in question are realigning their giving in a more unified and strategic fashion with their CSR model.

Finally,  bad information being disseminated and lack of research on corporate giving among the nonprofit sector has a negative influence on our thinking and planning.  Corporate giving is not about marketing.  Neither is it influenced by an ‘obligation’ the company feels to society.  And if we went off and approached our corporate partners with this in mind we would be dead in the water before we got to the closing statement.

It is an investment, not an obligation; a partnership, not a market approach. And it is directly tied to their business goals.

Up tomorrow: Defining Corporate Social Responsibility to understand process, policy and approach

SHIFT- Meeting Corporate Philanthropy Where It’s Headed- Influencers: CSR

In change management, Discussables, Research, strategic planning on April 11, 2011 at 6:01 pm

THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY ON CORPORATE GIVING

You’ve heard me use the term Corporate Social Responsibility (CSR).  It is the increase in the number of corporations attemping to define and implement their CSR that is also influencing corporate philanthropy.

Corporate Social Responsibility is not a new concept. It actually has been an ‘activity’ of corporations for over 100 years. We’ll explore its roots a little further into this series.

But it is the phenomenal growth of CSR over the last twenty years, both in number of companies embracing its tenets as well as companies creating a more deeply integrated CSR strategy in their business model, which has been a driving force in the way corporations are defining and implementing their philanthropic activities. Essentially, CSR is a strategic shift away from ‘giving to’ charities, toward  ‘investing in’ opportunities with charities, opportunities that align with their business goals.

What used to look like this: A corporation giving in a variety of ways to a variety of causes that were defined primarily by societal and community pressures…



Begins to look more like this: a turning inward to investigate the corporations basic social, brand and financial benefits and then identifying a unified cause that aligns and supports beneficial outcomes to those measures.

Does this mean there is less for us?

Absolutely not, the amount of corporate giving is increasing, its just the segments in which we will be viable partners are different.

Hear from Jerry Lee, co-founder of Newton Running, talk about his desire to express social responsibility through the vision and mission of his companys philanthropy.

Up tomorrow: Influences on Nonprofit Organizations in seeking more sustainable corporate funding.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers

In Discussables, Research, strategic planning on April 8, 2011 at 2:59 pm

THE INFLUENCE OF BUSINESS CRISIS ON CORPORATE GIVING

You may recall that BP nearly wiped out the Louisiana and Florida coasts last year following the Deepwater Horizon oil disaster. Over the course of weeks over 200 million gallons of oil spewed into the Gulf of Mexico. The disaster may have been one of the worse ecological assaults in history.



Ultimately, BP was assailed but not defeated by the oil spill. Their stocks plummeted, protests and boycotts ensued, heads of divisions lost their posts.  But BP weathered through, their stocks rebounded and their reputation is slowly and delicately on the mend.

In their favor was over 25 YEARS of brand management through Corporate Social Responsibility. At a Corporate Social Responsibility Conference at Boston College Center for Corporate Citizenship in the early 2000’s, BP was a highlighted  speaker and won awards for their ecological philanthropy programs. We might laugh now, but that investment saved them from collapse.

The need to build emotional trust, a bank account of goodwill with society, is an important strategy in corporate governance and a significant influencer on a corporations philanthropic efforts. This bank of trust will allow the company who has been the cause of, or has exacerbated, a crisis, to make withdrawals and weather it through.

Bad business will happen, and that knowledge drives corporate giving.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers

In change management, Discussables, Research, Training on April 7, 2011 at 8:28 am

THE INFLUENCE OF GOVERNANCE ON CORPORATE GIVING

In addition to the shifts and perspectives being discussed and implemented in the business academic world, we see advancement in environment surrounding business governance as well.

ISO 26000 was implemented September 14 2010. For those not familiar, The ISO –a network of the national standards institutes of some 160 countries that develops and coordinates standards of operations for business lines. The standards govern management of Quality, Risk Environmental and now Social Responsibility. Simply put, these standards are applied to a company’s business practices, who actively engage in pursuing compliance. When they do so, they are awarded an ISO brand of approval for achieving and maintaining these standards. These are highly coveted and companies who achieve them make them visible.

In the words of the ISO itself “The world demands social responsibility. ISO 26000, the first internationally approved standard to provide guidance on social responsibility, is a global response to this global challenge.”

The ISO 26000 is intended to outline for companies:

  • concepts, terms and definitions related to social responsibility;
  • the background, trends and characteristics of social responsibility;
  • principles and practices relating to social responsibility;
  • the core subjects and issues of social responsibility;
  • integrating, implementing and promoting socially responsible behavior throughout the organization and, through its policies and practices, within its sphere of influence;
  • identifying and engaging with stakeholders; and
  • communicating commitments, performance and other information related to social responsibility.

This is the first time an organized set of standards has been produced and disseminated for companies to follow. Thought leaders believe this will be game changing for companies in strategizing and developing their social responsibility.

ISO 26000 is a response and a governance influence on corporations. IN part it may stem from the multitude of influencer’s outside the corporate circle. When JP Morgan Chase investors assemble to vote on a “Genocide Free” investing policy for the company, the pressure to conform and perform to standards is undeniable.  Loss of trust by the consumer, civil society activism and Institutional investor pressures, all bear significant influence on corporations today.

VIDEO: Highlights on ISO 26000 from inside sources            

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers

In change management, Discussables on April 6, 2011 at 10:56 am

THE INFLUENCE OF CORPORATE THOUGHT LEADERS ON CORPORATE GIVING

Corporate philanthropy has seen some radical shifts in the last twenty years. We may just now be drawing concern about what is happening, where it is headed and how do we stay engaged as these changes evolve?

To understand the shifts as they appear, we need to look at some key factors, one being influences on the corporate sector.

Let’s take a look at thought leaders in business and how their rockstar status and larger than life influences have impacted the patterns we are experiencing with corporations as they support causes and charitable efforts.

No conversation about corporate giving could be complete without a reflection on the impact of Milton Friedman.

Milton was a Nobel Prize winner in economics. He was a distinguished professor at the University of Chicago. He was the author of the classic best-seller Capitalism and Freedom and a long-time Newsweek columnist.

Milton Friedman was one of the greatest and most influential economists in the 20th century. This certainly qualifies him to be considered a business rockstar. He was also an unapologetic curmudgeon, an outspoken and controversial thought leader on all things business.

He was vehemently against corporate social responsibility as an obligation of business. He held that giving by a publicly held corporation in the name of “social responsibility” was a form of theft.

But Friedman was not against all corporate giving. Corporate philanthropy could be justified if it served a business objective—improving employee teamwork and motivation, strengthening the marketing of a company’s brand, enhancing financial outcomes. He also had a less emphatic position on giving by privately held companies. He thought that was a decision best based on the individual or family owning the company, as it was their money to give away.

Milton was a multi-dimensional man. Besides being a powerful voice in the business sector, he was also a great philanthropist and a tremendous advocate of philanthropy.  He was not alone

Alfred P. Sloane, another uber-chief of corporate discipline, he was born in New Haven Connecticut, educated at MIT and graduated from there in just three years, as the youngest member of his class. Alfred was a long time President and CEO of General Motors, resigning to remain as their board chair until the late 1950’s.  He steered the corporation through some tenuous and deadly years of bad business, Nazi allegations, and revenue slumps.

He was not as eloquent a man as Milton, but he too felt philanthropy had no business being tied to business. He simply stated “The business of business is business.” And like Milton he was a prolific philanthropist. Because of his personal generosity, his name today is on buildings and foundations across the nation, from Sloan Kettering in New York City to the Alfred P Sloan Foundation, whose assets currently reach about 1.8 billion dollars.

Why is it important to have knowledge of these two giants of industry? Why should we abandon our cynicism and try to comprehend their position on corporations and giving? Because every MBA student leading or preparing to lead companies today, have at their hearts, minds and training, the words, vision and example of Milton and Alfred. And it is with this training today, that they are approaching the development of corporate giving strategies.

The apparent disunion in the perspectives of these two gentlemen, when it came to business and philanthropy, is at first perhaps perplexing. But it is not unusual. Their beliefs still hold true today.  Whether you agree or disagree with their perspectives, these men continue to have tremendous influence on the culture of business through their legacy.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- An Introduction

In change management, consulting, executive coaching, Research, Retail ideas, strategic planning on April 6, 2011 at 10:11 am

This is the start of a four week series on corporate philanthropy, based on research, best practices and personal experience from the field. We’ll keep it entertaining and packed with good useful information that will help you develop your own Corporate Giving program. To follow along, bookmark and check back daily, or subscribe to the blog using the button at the bottom of this page (left side).  But don’t just follow along.  Ask questions, challenge observations, make recommendations, share your own experience, invite friends to participate.

Many of us have been in the philanthropy industry for years….maybe even decades…and we have much to lean on when we think about corporate giving. We know it is changing, it’s evident around us, and we know it has evolved over time, through some pretty hairy and weird years, to some truly meaningful examples. I’m going to ask us to set all of that aside for the next few weeks.

Let me start with a short, true, story to help us understand perspective and prepare our frame of mind. This story came to me from a friend.
“Years back a group of scientists in New Guinea visited a tribe who believed their world ended at the river. After several months, one of the scientists had to leave, which involved crossing the river. Safely across the river, he turned and waved at the tribesman he had left behind. They did not respond, because they said they did not see him. Their entrenched beliefs about their world had distorted their perception of reality.”

But changing  beliefs can be hard, right?

Let me give you an example.

Look at this door panel of squares. Now stare at the X in the center and think circles. What happens?

The circles that appeared when you thought ‘circles’, are an example of a shift in your perception of reality.
When you change the way you look at things, the things you look at change.

That’s why, in this series on corporate philanthropy, I’m asking you to abandon your old beliefs, your old perceptions about what you think you know about corporate giving, and become open to new understandings. In the words of our old friend Stephen Covey: Seek first to understand.

This month of posts on meeting corporate philanthropy where it’s headed, will help us to understand the influences on corporations as they strategize their giving efforts. We’ll identify influences on the sector. We’ll connect with company  goals and needs, and explore key behaviors in winning partnerships.  Not winning in the Charlie Sheen way, but in the way that provides outcomes and benefits for both the corporation AND the nonprofit partners.

A busy few weeks, but worth the investment if you want to create sustainable, efficient and effective corporate philanthropy revenue streams.

So join in, ask questions, engage, share, learn, enjoy.

Ethical Bonus Structure for Fundraisers

In Random on March 23, 2011 at 1:22 pm

Image: jscreationzs / FreeDigitalPhotos.net

In a recent discussion on a group in LinkedIn, the topic of commissions for fundraisers was a hotly debated point of disagreement, and often fierce agreement, among posters.

After 50 posts, the group began to consider another question:  If not commission, then is there an ethical way to offer compensation as a bonus for work well done by fundraisers?

I posted my response, outlining my successful experience and ethical structure for providing bonus compensation to staff. The response for a copy of the outline was overwhelming and after responding to a few by email, I decided to post it to my website for free download (PDF). You can go there and if you have further questions, feel free to contact me.

A few more thoughts on bonus compensation, and then would love to hear your thoughts on this subject.

Bonuses work. It’s a studied fact. But they don’t work in isolation and should be combined with non-tangible compensation as well. People want to be acknowledged and validated for their value, in ways additional to monetary compensation.

Establishing and working toward bonus goals should never be done in a vacuum. The goals-

  • Must be drawn from an organizational strategic plan, and relate directly to how the employee can help the org reach their departmental goals.
  • Must include more than just financial goals, and ideally only reflects financial goal achievement of the TEAM.
  • Must be developed in a collaborative fashion between the employee and supervising staff.
  • Must be built on the capacity for the fundraiser and the organization to achieve the goals realistically (“Can we get there from here?” is always a number one consideration in building bonus goals.)
  • Must be a PART of an overall performance management assessment tool and not the only factor.
  • Must be tracked monthly. Its only fair that the fundraiser knows where he stands on a regular basis, so that he can improve his performance or making changes to his approach. No surprises.
  • Must be calculated with a balanced, but benevolent approach and must include supervisory staff as well as Executive Leadership in determining final calculations. For smaller NPO’s that may mean ED and a Board member.
  • Must leave room for discussion. Don’t deliver it in an email or paycheck envelope, please!
If managed correctly, with sensitivity, a fierce determination to goal achievement and ongoing support- it can only be an ethical approach.

Use these mid winter months to GROW, not slow, your organizations philanthropy

In Retail ideas, strategic planning on January 19, 2011 at 12:14 pm

Most nonprofits experience a significant lull in donations and donor activity in the months of January and February. The post year end doldrums.

Donors are slow to give, having distributed their 2010 charitable contributions during the ebullience of the holiday season.

Consumers are recovering from gift purchases.

The weather makes for hermits, with snow, ice and early nightfall urging more indoor, stay at home activities.

And snow birds have fled for warmer climates, leaving their local neighbors and friends to fend until spring.

This is the perfect time to grow your philanthropy program!

No other time in the calendar year do you have the potential to capture your audience’s undivided attention.

With all of the inactivity your donor and prospective donor is engaged in, you can offer a variety of options to help keep them entertained and informed, from the comfort of their warm living rooms.

  • Give them good reading for a cold winters night. January and February are the perfect time to send out newsy information on your group, your past success, your future plans.  Make sure your communication is meaty and news worthy, capturing the weather dulled eye of your constituency.
  • And to make sure those e-newsletters get to the right place, this is a perfect time to clean up your database.  With the reduced number of donations being processed and less visits to be made, your staff should spend time tidying up. Use an email verification software provider or staff can correspond and validate emails themselves. Capture address and phone while you are at it.
  • While you’re assessing, audit your grant programs, ensuring that you are on track with grantors expectations.  Send love notes to all your grantors, with New Year greetings and a true note of appreciation for what their funding has provided to your clients/mission.
  • Spruce up your website, e-newsletters and social marketing plans for the coming year.  Increase the frequency with which you are sending e-notices on your organizations marketing efforts, driving traffic to your newly spiffed up site.
  • Your staff has unique insight and talent, let others know! Identify media outlets and negotiate opportunities for your staff to contribute articles or podcasts on activities of interest, connected to your mission. A schools newsletter might appreciate a guest blogger or author writing about the importance of home support in education. A local grocer might find an article from an expert in the field of nutrition, valuable in their marketing to their customers.  Nows the time to get those pieces written and published. And don’t dismiss national journals. They need good writing too.
  • Lay the ground work for your spring appeal. Collectively send out notice to your annual donors, giving them insight and a sneak peak at your case for the spring and summer months.
  • Train your board. Your board meets regularly and has clearly defined agendas. Make the January or February agenda one that focuses on philanthropy.  A little bit of elbow grease and knowledge sharing by the board, will prepare them for an active and engaged year.
  • If you are planning a feasibility study, plan to launch it now. Most study participants can be reached by phone or online, so travel is less necessary.  Staff has more time to devote to feasibility study efforts. And the sobering months of January and February will flavor the feedback from your constituents, providing a more realistic and conservative view of your organizations ability to raise those funds through a campaign.

Engaging Your board In Fundraising: Framing Your Perspective

In Discussables on October 4, 2010 at 10:05 am

So in my last post we talked a little bit about Passion in your Board being the driving force for Philanthropy. But we are getting ahead of ourselves. Lets bring it back to the beginning.

In order to be open to new ideas, its essential we frame our own perspective on the boards involvement in fundraising.

Whats important to know is why bother? We all know that it is often easier to just do it ourselves. The board asks too many questions, is too resistant. Doesn’t believe, isn’t invested, doesn’t even give themselves. They are too judgemental, demanding and disconnected. They are naive and lack the fundamental education to be effective. They are more interested in the type of potatoes to serve at the next gala, or the color of the napkins. Maybe what time to tee off at the golf tournament, or whether its a scramble or best ball format.

Is this how you see your board?

A board’s legal role is to govern and act as fiduciary authority for the nonprofit organization. By their position, their involvement in fundraising is expected. Additionally, their presence on your board puts them on stage. The community is watching. If the community sees a board not raising money for the organization, then the community sees an organization that matters little with regard to their own donation. If the board isn’t involved, then why should they be. Board involvement in fundraising (not only giving of their money but being involved in raising it) validates the nonprofits mission. Nothing will kill an NPO faster than an invisible board of directors.

Also, no organization is an island. It would be virtually impossible for one Exec Director and a fundraising staffer to go out and raise all the money needed to survive. Its a Sisyphean endeavor. But with the board invested AND involved we have tripled and quadrupled our opportunities to get the job done. The network of your board and their networks network, act as a funnel flipped on its side to share the burden and increase the return.

Legal accountability, organizational validation and increased outreach/expanded return, three solid reasons why getting your board involved is critical to the success of fundraising in your organization.

So if its this important, then why cant they get out there and help?

Well here is the reason. And you’re not going to like it. Maybe I’ll lose my followers at this point, but the reality is:

Most board issues are not about the board, but about us.

There, I said it. And for those of you still reading, here is why.

If asked, here is what board members will say about why they are resistant to getting involved in fundraising. This is not an exhaustive list by any means, but it is a good representation of some of the most commonly heard complaints:

No education

Too overwhelming

Too embarrassing (no skill)

Not aware what they were signing up for

No money themselves

Fear of rejection

Or fear that they are asking too much of someone, something the other can’t part with.

Lack of confidence in plan, process, person, organization

Disinterested

I had a board member say to me once, she would rather shrivel up and die, than ask for money. That’s hard core resistance.

What they say and what they feel are actually two very separate things, but connected. Most boards resist fundrasing because we have not done our job in leading and administering the fundraising effort. We too often lack concrete goals, lack clarity in board roles, we offer hazy expected objectives/outcomes of their efforts, we develop poor organization of the donor pool, we lack research on prospects, we have ineffective communication of organizational success, and so on and so forth. When they say its overwhelming, we have to ask- Are we being clear and concise in our goals? Is the prospect information simply understood, specific and relevant? Is the process organized and direct, with concrete outcomes, strategy and actions steps? Do we have valid measurements to share? When they say they are embarrassed, have we done our job in bringing the mission into the board room, developing passion, choosing the right board members? I can hazard a guess that the early board members of Susan G. Komen Foundation were not embarrassed about fundraising, as they had the passion for the mission, they were the right people for the job.

Being responsible for our board not fundraising doesn’t make us bad or not worthy of support. It does make us take inventory of our internal operations, our strategy, our board development and our leadership, in developing the best possible framework for the board to fundraise within. And thats were our control comes into play.

In my next post we will talk about some of these controls, starting with developing our board of directors to be an engaged, passionate board.

Engaging your Board in Fundraising Part II

In News on October 4, 2010 at 9:38 am

So I’ve struck a nerve!

More people have written to me about this topic since my last two posts than ever before. So first, thanks for reading. Its good to know that this blog has value in the cyber world for those of us doing the heavy lifting in funding our mission driven nonprofits! Secondly, your response has driven me to develop a series of posts on “Engaging your Board in Fundraising”. I recently had the opportunity to teach at a conference in Boston on just this topic and the feedback and interest was remarkable. So based on that presentation (the PPT can be found at my Linked in site here ), I’ll be blogging over the course of a week in a series, sharing insight and recommendations on board engagement in fundraising.

Enjoy and thanks for your commendations 🙂