5 Keys to Congregational Capital Campaign

Having been through my share of capital campaigns, including some I led myself in my own congregations, I have developed a set of keys to helping such campaigns be successful. One of those is “don’t do it yourself!” That’s my first key.

Yes, I realize I just said that I had done my own but I definitely don’t recommend it. There are several reasons. One of the most important is that as a pastor you are most likely simply too busy to dedicate the time a really effective campaign needs. Capital campaigns are intensive and demanding. They aren’t something you can just whip out in your spare time.

Another reason for not doing itself is that most of us don’t have the expertise. That’s where a professional comes in. Those who work in the development field have training and experience. They have learned the “dos and don’ts” of a campaign. In addition, since this is what they are paid for, they have the time. This means a “key” key is to get outside, professional help. And one more reason is that sometime the outside professional can take the “heat” that might otherwise go to local leadership. Capital campaigns can generate some controversy. If so, how nice is to to direct that to this person the congregation has retained.

Almost as important is a second key which is simply involving as many people as you can. When there is widespread involvement throughout the congregation there also tends to be widespread understanding and support. A capital campaign is a good place to involve dozens, even a hundred or more, people in a variety of roles from preparing treats or meals to serving on the main steering committee.

Yet another key is to allow plenty of time for planning the campaign. Frankly, a year is not too long. One reason for a lengthy planning time is to get the “buy in” of the congregation, beginning with its leadership and ultimately reaching as broad an audience as possible. All of that takes time as does the recruiting of leaders and communicating the mission. A campaign can be done in six months. I did one once for a congregation in two months! But a longer period of time is generally a good thing.

A fourth key is to have a very carefully developed case statement. Such a statement sets of vision and the rationale for the campaign. Why are we doing this and what will it accomplish? The case statement needs to be clear and concise as well as motivational. This is not a good place to try to answer all the questions. That can be done in an “FAQ,” or “frequently asked questions” document. Along with a case statement, an FAQ is also of key importance.

While there are more keys to a full “set,” a fifth key I will mention in this brief article is having strong communication materials. Too many congregations or organizations skimp at this point. What is called for are materials professionally prepared and produced. Many congregations have people with training and experience, maybe even equipment, to help with communicating effectively. But also don’t hesitate to spend what it takes if, for example, you want a fine video. Typically that isn’t something with a small home camera can do. Hiring a professional, while not cheap, can make a world of difference.

It is amazing how many keys most of us have. So, too, there are quite a number to conduct a successful capital campaign. Now you have in your hand or pocket, a few such keys.

Gary F. Anderson

 

Gary F. Anderson
Associate

3 Reasons to Improve Your Endowment Program Now

Endowment programs have nearly always taken a back seat in non-profit organization fundraising programs, and the economic squeeze of the last decade adding to the urgency of annual funding for current programs has pushed conscious efforts to secure deferred and estate gifts further out of view.

Regardless of the size of your organization—be it big or small, if intentional cultivation of planned gifts isn’t part of your on-going fundraising strategy, you’re setting up your organization for perpetual financial struggle.

It has been suggested that as much as 50% of future contributions to non-profits may come from gifts planned years before (Greenfield, 1999). Few organizations can afford to pass on this financial support, and none would want to.

There are many reasons to improve your endowment program now. Here are three:

  1. You don’t have to be an estate tax specialist.

In our current philanthropic climate, it’s possible that securing estate gifts has never been both easier and more complicated at the same time. Access to information and education for potential donors has never been more plentiful while the host of charitable vehicles and ever-changing tax codes can intimidate even the most seasoned gift officers.

The good news is that there are financial advisors and tax specialists available to help when a donor is ready to make such a gift. In fact, we strongly recommend gift officers direct potential planned gift donors to seek out third-party financial and tax advisors to ensure gifts made to the organization are in the interest of the donor, and avoid the perception of coercion or other impropriety. Establish organizational policies and procedures to receive these gifts, and leave the gifting technicalities to the estate professionals.

  1. For some donors, giving later may be easier than giving now.

Donors who are conscientious about economic uncertainty, or who are anticipating financial transitions (i.e., college-bound kids, a pending retirement, a future inheritance), may have limited resources today, but can more easily support the organizations they care about as part of their estate. Even a small percentage of an estate can have a significant impact on your organization and create a legacy for the giver.

Raising awareness among your faithful supporters that your organization is prepared to receive and manage deferred gifts instills confidence in donors that their donations will have an impact for years to come.

  1. Despite immediate financial pressures, the organizational mission is about the long-view.

For donors and organizational staff alike, it’s common to feel the pressure of immediate needs around budgets, facility maintenance and program funding shortfalls. Deferred and estate gifts help transition responses from reactive to proactive—a healthier and more productive way to carry out the organizational mission.

Endowments create financial resources for those same needs in the years to come, while also inspiring supporters, board members and employees to think about how needs and mission may develop in the future in response to cultural and environmental trends.

If your organization has suspended in endowment fundraising efforts for more urgent funding demand, it’s time to reallocate your strategy. Don’t have an endowment program in place? It’s time to start!

Jennie Wolf Smith

For information on how GSB can help to kick-start your planned and deferred giving efforts with a time- and cost-effective plan, contact me at Jennie@gsbfr.com.

 

 

 

Reference
Greenfield, J. (1999). Fundraising: Evaluating and Managing the Fund Development Process. 297.

Stewardship and the Greatest Generation

If any generation has a fairly clear and even uniform set of characteristics, it is those born before the 1960’s. Some have called this group the” traditional generation.”  It is always challenging to determine exactly where generations begin and end, but for the purpose of this article, I think it should include those who are now in their late 60’s and up. They are what are more commonly called “senior citizens.”

Those leading stewardship ministries in congregations would be wise to keep in mind some of the traditional generation’s mindsets, beliefs, and lifestyles as they plan how to invite people to a more faithful stewardship.  Specifically, for the senior generation, that includes an awareness that they tend toward a high degree of institutional loyalty. Senior citizens generally like the organized church, especially their local congregation. A higher percentage of these ” Traditionals” have grown up with a single denominational identity. Also keep in mind that studies indicate that this generation is more generous in their overall giving including to their local congregation than are those who are younger. The Lake Institute for Charitable Giving has found that 72% give to religious causes as opposed to 45% for those born after 1964.

As a result, presenting the call to faithful giving as a way to support the church often appeals to this age group. Many of them are aware of the threat to local congregations if not to the entire denomination. They worry about their church’s finances and building. They may even be concerned about the support of their pastor and staff. They are often concerned about future leadership for the church. Highlighting those sorts of concerns and appealing to them on the basis of such matters is likely to elicit a response and the potential for increased giving.

Another characteristic of the traditional generation with regard to their church and their faith is concern for youth. They are worried about their grandchildren and whether the church is actively engaged in ministry to them in creative and effective ways. In some regards, this generation may have as much or more concern than some of the parents! That is, in part, because many of them had positive experiences in the church of their youth which may be less true for today’s parents. Lifting up youth ministry and the need for strong financial support can be a key for this generation.

At the same time this generation of those in their late sixties and up is also frustrated and often disappointed with their congregation’s ministries to seniors. Many of them feel their needs are overlooked and that even pastoral care has failed them. It is important that every congregation have clearly defined and effective ministries for them. If there are such ministries, they will be appreciated and will garner financial support. It is especially critical to provide care such as that offered by a parish nurse or a volunteer network of caregivers as well, of course, as visitation by the pastor(s) as needed. If those things are missing, financial support may be lacking too!

Perhaps more than some other generations, the senior citizens of today are also open to preaching and teaching about stewardship, They, actually expect that and may be disappointed if their pastor does not address stewardship with some frequency. A once-a-year sermon on stewardship during the annual pledge program is not sufficient. Frankly, it is not sufficient for any people of faith, but this is especially true for many of the traditionalists.

One final thing in this brief essay needs to be said. This generation either tends to be living very frugally or to have significant resources. There are many who are just getting by. On the other hand, many have accumulated significant assets. We may even be surprised by those who have large assets because it is not obvious. Stewardship efforts should keep the extremes in mind, appealing especially to those with assets to give out of their assets. This is more common in capital appeals but can happen on an annual basis as well. For example, gifts of stock from those who have a stock portfolio are advantageous to both the giver in terms of taxes and, of course, to the congregation.

Do you have people over 65 in your congregation? Of course you do! As you plan your stewardship ministry these are some things to keep in mind. Regardless of our age, we can keep growing in the gift of generosity.

Gary F. Anderson

 

Gary F. Anderson
Associate

Avoiding Shame in Stewardship

As the stewardship workshop came to a close, she raised her hand as God had laid something on her heart.  She shared that she was one of those people who did not take her giving seriously.  She suffered through the annual stewardship appeal waiting for it to end.  She didn’t want to serve on council because of the guilt she felt over not tithing.  She shared that she felt shame for not being generous.

As she spoke, I could tell that she felt a tremendous sense of relief.  She shared that her parents never taught her how to give because money just wasn’t talked about.  In an email to me the next day she shared the following: “I need to refocus my treasure to where my heart already is.  Living in two different worlds isn’t working.  I know I am not the only person in the church in this situation so maybe my stepping out and being transparent will encourage others.  Its very scary but I feel God’s hand in this.”

Often, without noticing or trying, our stewardship efforts cause shame.  Not because we ask people for too much, but because we don’t treat them as a person.  We need to focus on growth.  We need to ask people to move from where they are to where they can be more generous.  We need to challenge people but not offend them based on where they are.

Stewardship should be life-giving as we attach the treasures that God provides us to the ministry that touches people’s lives.  By doing sloppy stewardship, we cause shame.  By taking the time to treat people like individuals, we can help them grow and help them move into that abundant life that Jesus talks about.  I often tell congregational leaders it is okay to treat people different as long as they don’t treat anyone better.

Mike Ward

 

Mike Ward
CFRE, M. Div., Partner
Click here to view my GSB website

 

Properly Engaging Volunteers

We’ve all heard about the 80/20 rule in fundraising as well as volunteering—80% of the work or funding is given by 20% of the people.  Unfortunately, that rule has become outdated, and should now be called the 90/10 rule.

This is especially problematic in congregations.  We all know the statistics: mainline protestant congregations are decreasing in size and giving.  Congregational lay leadership and clergy have a hard time finding volunteers for any task, much less the important ones of church council and stewardship committees.  Attendance is down as a result of the diminishing influence of the church in family life.

We know that engagement breeds involvement, which in turn causes devotion and investment.  The most involved volunteers, whether in a congregation or in a nonprofit, are the very best donors and donor prospects.

When I work with congregations, I hear similar stories: “I invite visitors and new members to join us, but no one ever does.”  As a two-month visitor to a congregation in northern Colorado, I recently experienced the best way to invite and engage visitors and members in a congregation.

Dave is a member of a Lutheran church in Ft. Collins.  Dave plays guitar in the praise band at church every week.  When I began attending with my family, Dave and I struck up a number of conversations.  At one point, he found out I played guitar (only church-camp quality guitar, by the way).  He did not say “you should join us some time.”

Dave asked me if I would be willing to play with the band.  I said I would maybe feel comfortable doing that after much rehearsal.  When I got home, Dave had already emailed me the music and the dates the band would be playing.  He then got in touch with me to schedule one-on-one practice with him between services the next week.

What Dave did differently was he a) invited me, b) followed up immediately with specifics via email and c) called to confirm my involvement.

When we want visitors or members to get more involved, we have to invite them to join us in a specific task, provide the necessary tools and confirm their involvement.  We are then responsible to make the event a great experience for the volunteer.  Then do it all again.  Soon, our volunteers will be inviting others in the same way and we will grow engaged and dedicated members.  Their financial investment will follow.

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Paul N. Marsh, CFRE
Associate
Click here to view my GSB website

5 Steps to Improving Board Engagement

Whatever the non-profit industry—education, social service, religious entities, health care, culture or beyond—the strength of an organization’s governing board is foundational to the strength of the organization. Board decisions have lasting impact on the organization’s ability—or inability—to adapt to future trends and remain flexible in delivering on its mission.

Yet, too often, board relationships are frustrating for executives and disappointing for members. It doesn’t have to be that way. Here are five steps to improving your board engagement:

  1. Understand why members agreed to serve.

We typically recruit board members for the skills and networks they may bring to our organizations. Focused on ourselves, we miss establishing a good foundation with prospective board members.

Board members agree to serve on boards for a variety of reasons. Not all reasons are directly related to your organization. Rather, they may agree to serve because they believe in the broader cause which your organization aims to influence. They may serve to build their own professional network—enticed by the opportunity to serve alongside other notable board members, or to gain experience as a board member. They may be serving on the board as a representative from an affiliated organization.

Regardless of their reason for serving, it’s vital to understand what they hope to gain from their service and position board time and effort accordingly. For instance: allow for collaborative time within meetings, couch the organization’s mission within the broader cause, or in partnership with affiliated organizations. Help board members recognize their goals as part of their board service.

  1. Set expectations early.

A board member’s failure to attend meetings, make a financial contribution or understand the mission and core values of the organization he or she serves is a direct reflection on the organization’s poor board recruiting.

Potential board members should know well the expectations of board service—from time required both in and outside of official meetings to financial participation and the opportunities and challenges facing the organization. If there are specific networks or skills the prospective member has which would be particularly helpful, tell him or her that you believe these areas will be important to helping the organization reach new goals.

  1. Equip!

Board members are often asked to do things for which they are ill-equipped: from sharing the story of the organization to making decisions which have significant impact on the future of the organization. Help these volunteers help your organization!

A few ideas include:

  • Provide them with success stories from your organization which they can share with others.
  • Present all relevant information regarding internal and external trends to best position their ability to govern and guide organizational decisions—even if (and especially if) they are unflattering or lend to new challenges.
  • Offer—and require—educational opportunities which would help them to better serve your organization. Courses on media relations, fundraising and industry-related trends help to inform your board members, and equip them to be better—and more satisfied—partners in their service.
  1. Provide meaningful tasks.

Board members often say the most frustrating board service is “rubber stamp” meetings which fail to utilize knowledge and skills from the collective board. Members leave these meetings deflated, devalued and discouraged.

Comparatively, working together to solve problems, to cast vision, to respond to the changing environment, are valuable and fulfilling responsibilities. When equipped and empowered, board members increase their engagement with the organization, inspired to reach new heights.

  1. Evaluation

Board self-evaluations are a helpful tool to maintaining a healthy board culture by providing feedback to the organization and affording opportunity for board members unable to honor the pre-determined expectations to improve their commitment or respectfully exit from board service. Yearly evaluations remind board members of their agreed expectations and hold members to the same standards.

Jennie Wolf SmithIf you’d like a sample board self-evaluation form, contact me at: Jennie Wolf Smith, GSB Consultant.

Click here to view my GSB website.

Further reading on Board Development
A great book to understand the mindset of your board members, check out: The Truth About What Nonprofit Boards Want:

The Nine Little Things That Matter Most by June Bradham, CFRE

When to Hire a Consultant

“I don’t know where to start.”

 “Too many expenses, not enough revenue.”

“We know what to do, but can’t figure out how to get there.”

“If our organization raised more money, we could….”

Hiring a consultant is like hiring a mountain climbing guide. You have goals you want—or need—to achieve, but something inhibits you from reaching them. Maybe this something is internal disorganization or limited resources; perhaps it’s external challenges or competition.

If you were planning to scale Mount Everest for the first time, you could swing by a store to pick up a few supplies and set out hoping for the best. More likely, you’d seek out experts—via books, blogs, individuals who have successfully navigated the elements. You’d pour over trail maps and test supplies before you leave. You’d probably find a seasoned guide to make the journey with you, to lead you through unfamiliar terrain.

Similarly, a consultant can help your organization identify your goals, develop a realistic and timely plan for reaching them, and provides the tools and accountability for you to be successful. You’ll have a knowledgeable partner and guide in the fundraising effort, peace of mind in the process.

And, consultants can be less expensive than you think. At GSB, we’re about serving our client’s best interests, providing only services you need to be successful. Most of our clients secure funding to cover a consulting contract within the first couple of months of partnering with us. With associates throughout the U.S., obtaining local GSB counsel is easy; check our website to find an associate near you.

Data-Driven Fundraising

Data is big business—I mean majorly big business. Consumer information is arguably one of the fastest growing economic commodities in our society, and organizations are paying big bucks to get their hands on this consumer data. From political analysis to product development, data drives strategy and decisions.

In 2012, a New York Times article raised public awareness regarding how companies are collecting and statistically analyzing consumer information. The article’s author, Charles Duhigg, wrote, “Almost every major retailer, from grocery chains to investment banks to the U.S. Postal Service, has a ‘predictive analytics’ department devoted to understanding not just consumers’ shopping habits but also their personal habits, so as to more efficiently market to them.”

While the for-profit industry capitalizes on data analysis to strategically grow profits and customer base, the nonprofit industry seems to lag behind—particularly in the area of fundraising.

Here are three ways to utilize data in your fundraising strategy, without a lot of added cost:

1)    Know your (potential) donors. It seems obvious, but I respectfully suggest that you don’t know your donors nearly as well as for-profit companies like Target or Amazon.com do. Understand why your donors give—and in this regard, loyalty doesn’t count. Find out what they specifically appreciate about your organization. What other organizations do they support, and why? Where does your cause rank in funding priority? What would cause a donor to increase his/her support?

2)    Track your donor-organization contact. It’s not just about when you send a mailing to the donor, but also when and how a donor responds. Did they attend an event or volunteer for a committee? Was a contribution made in response to a personal visit or public recognition? Are donations directed toward specific projects, but not others? Often donors self-identify and subtly communicate their interests. There is a host of data here, if organizations are willing to look.

3)    Tailor your appeals. Yes, this is a plug for segmentation. Not all donors are the same;  we should stop treating them so by expecting them to respond to one-size-fits-all appeals. We hail long-time supporters of our organizations with recognition and thanks, but often treat them as though they’re newcomers to our fundraising needs, oblivious to our previous partnership.

Target’s careful analysis enables them to send coupons for baby gear or power tools to specific customers rather than spamming their entire database with unnecessary material. When I log on to Amazon.com, I’m greeted with book recommendations tailored “just for me” based on previous purchases—and, no doubt, statistical analysis of similar purchases made by other customers.

Implementing data to grow support shouldn’t be limited to for-profit markets. Whether an agency or congregation, your nonprofit organization has similar information available if you’re willing to look for it. Use this data to uniquely message your organization—and your donors—for stronger partnerships and increased support.

To Know Or Not To Know

I had lunch with a pastor friend of mine last week. I asked him if he knew what his church members gave to the church. He looked surprised and responded, “Of course! Stewardship is a spiritual exercise which is our way of giving thanks to God for the blessings bestowed upon us. If I don’t know what my members are giving, I may miss a sign that something is wrong with my members. I could miss an opportunity for ministry.”

How true. As Henri Nouwen wrote in his book “The Spirituality of Fundraising, “Fundraising is, first and foremost, a form of ministry.”

Pastors should not only know what their members give annually, they should make discussion of a member’s giving an annual occurrence in order to unearth any ministry needs as well as to unleash the joy of generosity.

My friend shared a recent example: “Marjorie, a longtime member of my congregation, stopped giving in the middle of the year last year. It was my first clue that something was wrong. Turns out, she had been diagnosed with stage 4 pancreatic cancer, which I did not know. I called her and was able to begin end of life ministry, which could have been delayed had I not known her giving habits.”

To be sure, donor confidentiality is important, and steps should be taken at a church to make sure that the fewest people possible have access to the giving records of the membership.  Pastors, though, need to be one of those few people. It is not an invasion of privacy for pastors to know the giving habits of their members–rather, it is ministerial acquiescence not to know those giving habits. If this is the case in your congregation, it is time to have a serious meeting with the council to begin the process to change policy.

3 Tips For Fundraising From a Small Shop

Let’s face it, in recent years few development programs have increased staff. More often, fundraising officers are asked to do more with less, leaving them burned out or too stressed to know where to begin. Here are three tips to maximize your time and optimize your efforts:

1) Prioritize. You can’t personally get to everyone in your donor pool, nor should you. Consider how much time you will devote to stewarding long-term relationships, recapturing lapsed donors and acquiring new financial partners.

  • We know keeping a donor engaged is less costly than acquiring a new one. Maintaining those long-term relationships can result in greater support, both now and later.
  • Devote time to re-engaging former donors who have stopped giving. They know your organization and have emotional reasons to reconnect. Start with those who were strong supporters.
  • Have at least one strategy to attract new donors to your cause. While you should encourage your current supporters to introduce you to potential donors, be specific: Host an event where long-term donors bring a potential new donor, ask faithful supporters to write five letters to friends in their network who would resonate with the mission of your organization.
  • Don’t forget the self-identifiers. People who volunteer, who send a gift before you asked for it—or for more than you anticipated, who demonstrate an interest and loyalty to your organization seemingly “out of the blue” are people you should get to know.

2) Plan. Map out a year-long strategy for whom, how and when donors will hear from you. What do you want them to know? When do you want them to know it? How will you communicate and how will they respond?

  • Donor communication isn’t limited to mailings and donor visits. Also consider events, press releases, non-donor directed material, thank you notes and church announcements.
  • Consider the receiver’s perspective. Too often we communicate in ways that donors find incomplete or ill-timed. Just as in storytelling, donor cultivation requires a thoughtful process of bringing the person along to an engagement with the organization. How do the messages a donor receives from your organization tell the story in a thoughtful and logical manner?

3) Systematize. Critical for small fundraising shops, but incredibly valuable for larger ones, developing systems for donor cultivation will streamline the office work and keep moving donors along in engagement with the organization.

  • Automate your steps. Establish timelines for each step of the process from donor identification to calls and follow-up, from gift received to acknowledgement and receipt, and annual fund contribution to conversation about estate gifts. Wherever a donor is at in the process, you can move them to the next step based on your automation.
  • There are a number of tools available to help you automate. Online calendar reminders are a great way to track next steps. Consider outsourcing a step or two, such as arranging annual delivery of birthday flowers to a major donor with a local florist, or use an online vendor like www.sendoutcards.com to pre-arrange birthday and holiday cards.

When you prioritize, plan and systematize, you can allocate more time executing the task at hand, finding more time for donor cultivation and minimize missed opportunities for communication and strengthening donor engagement.