Dani Robbins

Posts Tagged ‘special events’

Things that Aren’t Really Free and Don’t Raise Money Anyway

In Leadership, Non Profit Boards, Resource Development on November 21, 2015 at 10:33 am

There are three questions that I regularly ask when it comes to fund raising and many other topics as well. The questions are “What is the goal?” “Is this a good use of your time?” and “To what end?”

What is the goal?

When the answer is raising money for an agency, sometimes the goal is not in concert with the actions. I once ran an agency that held a duck race as a fund raiser. I should say I ran an agency that had a duck race in process when I arrived and that once I saw recommended we never do again.

If you’ve never seen a duck race, it really is just that: a race of plastic ducks down a river. People pay $5 each for their ducks and get assigned a number; if their duck wins, they win a prize. Now all of this sounds fine, until you hear the details. The devil is always in the details.

Here are the details: We rented for $1 and then “sold” 8,000 ducks for $5 each.

They – and I’m completely disowning this part- had my Board members selling ducks for $5 a piece at Walmart. My Board members, the pillars of our community whom we (they) should have been treating like gold, honoring and cherishing, and giving meaningful strategic work to do, were at Walmart selling ducks for $5 apiece, and not just them either.

It takes a long time to sell 8,000 ducks, so we also invited service groups to sell ducks on our behalf for which we paid $1 for every duck they sold. If you’re doing the math with me, and I know you are, I’m now down $2 for every $5 we bring in.

8,000 ducks were sold. They came in filthy from whatever river they had most recently been fished out of and needed to be cleaned, stored and have the 8,000 stickers from the prior race removed and 8,000 new stickers added. We borrowed the factory and used volunteers so other than the cost of soliciting and managing those pieces, no additional cost there, but man was it a lot of work!

The prize was a $5,000 cash prize. As you might imagine, it came right off the top and in case you’re wondering was not donated back to the agency. 8,000 ducks at $5 a piece is $40,000, minus the $1 cost per duck, the $1 we paid other groups to sell them, the cash prize and the staff time.

I had two staff, one of whom was an intern (brilliant who I later hired and who we’ll come back to later), that worked nonstop for at least the two months I was there on nothing other than this event, which did not have the agency name in its title. No one even knew the event benefited the agency.

What was the goal?

It was intended to be a fund raiser. Because it didn’t really raise funds, especially once you added in staff time; because no one knew it benefited the agency so we couldn’t even call it a friend raiser; because my BOARD MEMBERS WERE AT WALMART SELLING DUCKS; I recommended we never do the event again.

That is my favorite illustration of “things don’t raise money anyway.’” Now, let’s move on to things that “aren’t really free.” Our intern, later promoted to event planner who was amazing – and also ornery – insisted she stay and physically put together 300 program books for our gala. She printed, copied, hole punched and bound each book by hand. It took forever. It possibly would have been justifiable but it didn’t even save us money. She spent hours on something we could have paid a printer to do for less money in less time.

I cajoled. I teased. I encouraged her to make a different decision. Finally, I insisted, sent her to the printer and then home. If the goal is raising money, spending 10 hours to do something I could pay someone else to do for a fraction of the cost is counter-productive. Had I asked, the answer to my next question would have been no.

“Is this a good use of your time?”

I am consistently amazed at the things people do that are not only not a good use of their time, but are actually other people’s jobs. Weekly, someone tells me about a situation in which they, as the executive, do the work of the board; they, as the board, do the work of the executive. Worse, sometimes they, the executive, do the work of the staff. If you are doing the work of someone who you pay, what are they doing? Also, what are you not doing?

I totally get that it’s easier for you to do it. Here’s the problem with that logic: you will always be the one that does it. If you don’t want to be the one that does it, and if you want to be the kind of leader that develops others, you will have to teach other people how to do it and then allow them to do so.

Boards that are trained to their role and allowed to fulfill their role, do. Ditto for staff. Let them.

Doing other people’s jobs isn’t the only way to “not really free.” When you have a small agency and the CEO is doing basic admin work, such as coding or data entry, there is an opportunity cost. It’s not only the highest paid admin work in town; it’s the actual CEO work that is not getting done. It’s every donor that is not getting cultivated; every public event at which your leader is not being seen; every strategy that is not being considered. This brings me to my last question:

“To what end?”

If the end game is a strong sustainable agency, and your CEO is doing work that you could pay someone else a fraction of the cost to do, that not only isn’t really free, it’s costing you money and opportunity.

If you want to go down a path, it is important to know where it will lead. Sometimes, it’s staff that are doing things that are not within their charts of work, and way below their hourly rate. Sometime it’s volunteers. If the cost of free is high, maybe it’s time to pay someone to do what needs to be done.

I know of agencies that get a variety of things done for free, which is awesome when it works and totally frustrating and disengaging for all involved when it doesn’t. If you can’t get done what you need done, free isn’t working for you and it’s time to do something different.

Free is only free when it gets you what you need. If the cost of free is frustration and disengagement, your actions aren’t aligned with your goal. It’s time for a new decision. Life is about making new mistakes.

What price have you paid for free? Will you share your stories? As always, I welcome your insight, feedback and experience. Please offer your ideas or suggestions for blog topics and consider hitting the follow button to enter your email. A rising tide raises all boats.

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Events, Grants and Individual Giving

In Leadership, Non Profit Boards, Resource Development on October 23, 2013 at 9:08 am

I was having breakfast this week with a friend and fellow consultant and we were discussing resource development efforts, including events and grants.  As I’m sure you are well aware by now, I’m not a huge fan of organizations hosting multiple events.  Events are expensive, labor intensive and don’t usually generate a lot of income.

I can hear you out there saying “No Dani, they’re fun!”  And they are, at least some of them are.

One signature event a year is a wonderful way to engage new donors, connect with current donors and showcase your programs while raising significant money. Even signature events that don’t raise significant money may still be a good use of your resources.  However, more than one signature event a year is too much.

More than one event (two, if you must) may be a sign that your leadership, board or executive, is reluctant to raise money in other ways.

Leadership that doesn’t want to embark on an annual appeal or a major donor campaign will often advocate more grants be written or additional events be introduced.  Not only will more events not raise more money, more events will cannibalize your signature event and may yield less income for more work.  Any process that doesn’t get you to your goal is a bad process.

“The Executive Director is the Chief Development Officer” of any non profit that seeks contributed income. (Erik Anderson Donor Dreams blog) Whether they want to or not; whether they’re good at it or not; whether they have a development director whose job it is or not, the Exec is still responsible for fund raising and one of the responsibilities of a governing board is to raise money. Neither is a role that can be abdicated.

Events are often 5-15% of an agency’s budget and generally net 50% of what they cost, sometimes less. Most attendees would be appalled to know that, but it’s true. It’s too high! I recommend events net 75% of what they cost. There are other, better, avenues to raise money.

Grants, which are often 30-50% of an agency’s budget, more if they receive United Way funding, are one way.  Yet, they too come with a cost. Most agencies get somewhere between 50-80% of the grants they submit. That means that the time spent on writing the 20-50% of the grants that don’t get funded is time lost.  For the grants that are secured, there are reports to be written, dollars to be tracked, objectives to reach and programming to introduce. All of which is as it should be, and none of which is without cost.

As I mentioned in the Culture of Philanthropy or Fund Raising post, according to “Fund-Raising: Evaluating and Managing the Fund Development Process” (1999) individual giving offers the highest rate of return for the lowest cost (5-10%) to the organization.  It is also the largest pot of money given in this country and usually only reflective of the percentage of special event income in most agencies’ budgets.  In other words, 80% of the philanthropic dollars in this country are given by individuals yet 10-15% of most agencies budgets are received from individuals. Like the post says, “opportunity is knocking. Get the door!”

Your board, staff and major donors will be the foundation of any individual giving program and the program should be introduced in just that order: Board giving should come first with the Board setting and then meeting a giving goal. Staff should then be asked and then major donors. Individual giving is about one on one relationships that are cultivated – and later, stewarded – and require intentional asks for specific dollar amounts.

Once those asks are made, as mentioned in the Sustainability by Descending Order of Love post, “if you have the time and the volunteers, consider asking your larger mid level donors and prospects in person. Those with the potential to become major donors should also be asked in person as should anyone who is committed to your organization.  While we follow the path of descending order of love in planning, we love all of our donors equally.  If someone would like to see you in person, even if it will be a small gift, go.  It is fun to thank someone in person and is worth keeping a committed donor engaged. When that is not practical, the next best thing is a phone bank or phone calls.”

There are a lot of ways to raise money and some will generate more money in less time than others.  Nonprofit leaders are busy.  Get the best bang for your buck and get on the individual giving path.  It will be scary, and also worth it!

What have you done to increase individual giving?  As always, I welcome your insight, feedback and experience.  Please share your ideas or suggestions for blog topics and consider hitting the follow button to enter your email.  A rising tide raises all boats.

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