http://curtisgroupconsultants.com/ en wesley@curtisgroupconsultants.com Copyright 2012 2012-05-18T00:28:57-05:00 http://curtisgroupconsultants.com/index.php/blog/article/funders_agree_nonprofits_must_operate_like_a_business/ http://curtisgroupconsultants.com/index.php/blog/article/funders_agree_nonprofits_must_operate_like_a_business/#When:00:28:57Z Today, for the fourth year in a row, Keith moderated VOLUNTEER Hampton Roads’ Annual Funders Forum. This event, which brings together funders from across Hampton Roads, always produces a variety of interesting takeaways. An underlying theme of the funder’s comments from this year’s forum was the importance of a nonprofit operating like a business. The following is their advice. Today, for the fourth year in a row, Keith moderated VOLUNTEER Hampton Roads’ Annual Funders Forum. This event, which brings together funders from across Hampton Roads, always produces a variety of interesting takeaways. An underlying theme of the funder’s comments from this year’s forum was the importance of a nonprofit operating like a business. The following is their advice: It’s not enough for a nonprofit to simply do good; they must do it well.  Nonprofits must operate like a business. In order to operate like a business, nonprofits need to shape their operations and their applications in terms of asking for an investment and be prepared to demonstrate the return on that investment. Foundations are not about simple charitable giving, but making sound business decisions.  They want to be a part of something successful, so do your homework.  Be sure to have a plan for sustainability—set your organization up with a plan for long-term success before seeking funding. A nonprofit should not consider itself at a disadvantage to receive foundation funding if they have reserves or an endowment in place. Funders universally agree that they want nonprofits to be financially sound. In fact, it boosts their confidence in your organization when you can demonstrate fiscal responsibility. 2012-05-18T00:28:57-05:00 http://curtisgroupconsultants.com/index.php/blog/article/tracking_the_true_cost_of_fundraising/ http://curtisgroupconsultants.com/index.php/blog/article/tracking_the_true_cost_of_fundraising/#When:18:16:19Z Earlier this spring, The Giving Institute hosted an interesting webinar on “The Cost of Fundraising” presented by fellow Giving Institute member, Melissa Brown of Melissa Brown and Associates. Melissa began by pointing out the fact that there are a lot of gaps that exist in fundraising costs today. In fact, the majority of organizations only track revenue as a cost of fundraising, failing to account for things like staff time which technically should be a considered a cost as well. She also emphasized that in order to determine an accurate cost of fundraising for your organization, it’s important to examine the whole development program, dividing the total amount raised by your total fundraising budget.  Earlier this spring, The Giving Institute hosted an interesting webinar on “The Cost of Fundraising” presented by fellow Giving Institute member, Melissa Brown of Melissa Brown and Associates. Melissa began by pointing out the fact that there are a lot of gaps that exist in fundraising costs today. In fact, the majority of organizations only track revenue as a cost of fundraising, failing to account for things like staff time which technically should be a considered a cost as well. She also emphasized that in order to determine an accurate cost of fundraising for your organization, it’s important to examine the whole development program, dividing the total amount raised by your total fundraising budget. This topic reminded us of a recent conversation we had with a nonprofit who reported that their event had just “raised” $34,000. When we questioned whether this number represented the event’s net profit, they realized that it had actually yielded $17,000. We also inquired as to whether staff time had been factored into this estimate and unfortunately it had not. This example serves as a perfect case in point for the importance of tracking all costs associated with fundraising. There are more details to factor in than meets the eye, that’s for sure. It’s no wonder more organizations don’t track their fundraising costs more precisely.  In fact, due to the breadth of information needed to accurately track fundraising costs, its often recommended that nonprofits begin considering and planning for the cost of fundraising several years out. And, because there are no standardized guidelines that lay out a plan for this yet, we as fundraising consultants have work ahead of us, educating nonprofits on the importance of not only tracking fundraising costs but how to do it correctly.  Especially since many donors these days, particularly high net worth donors, care greatly about the percentage of funds raised actually going to the organization’s services. 2012-05-11T18:16:19-05:00 http://curtisgroupconsultants.com/index.php/blog/article/us_economy_shows_considerable_progress_in_recovery/ http://curtisgroupconsultants.com/index.php/blog/article/us_economy_shows_considerable_progress_in_recovery/#When:01:29:23Z I attended a luncheon today hosted by the Economics Club of Hampton Roads and Old Dominion University, which featured an interesting presentation by Jeffrey Lacker, president of the Richmond Federal Reserve Bank and voting member of the Federal Open Market Committee. Lacker addressed the “considerable progress of the U.S. economy in recovering from the great recession” and noted three key areas that have kept the economy from recovering more quickly: the lingering depression in new home construction, the labor market, and uncertainty over the federal budget and tax policy. He also mentioned that as the labor market continues to grow, consumer confidence will continue to increase which should nudge GDP growth higher. In our opinion this is positive news, as it should of course help philanthropic giving.  I attended a luncheon today hosted by the Economics Club of Hampton Roads and Old Dominion University, which featured an interesting presentation by Jeffrey Lacker, president of the Richmond Federal Reserve Bank and voting member of the Federal Open Market Committee. Lacker addressed the “considerable progress of the U.S. economy in recovering from the great recession” and noted three key areas that have kept the economy from recovering more quickly: the lingering depression in new home construction, the labor market, and uncertainty over the federal budget and tax policy. He also mentioned that as the labor market continues to grow, consumer confidence will continue to increase which should nudge GDP growth higher. In our opinion this is positive news, as it should of course help philanthropic giving. Click here to read an article on Jeffrey Lacker’s full commentary. It’s quite informative and contains at least some hopeful news for giving.  2012-05-03T01:29:23-05:00 http://curtisgroupconsultants.com/index.php/blog/article/from_the_donors_perspective/ http://curtisgroupconsultants.com/index.php/blog/article/from_the_donors_perspective/#When:19:59:46Z As a part of our daily work we spend a lot of time listening to donors share their candid impressions of our client’s organizations as a whole; everything from the effectiveness of the staff and board to the way they are cultivated. Through the planning study, development assessment and capacity building interview process we learn a lot about donor’s expectations and we’ve found that there are many valuable takeaways when you examine cultivation and stewardship from a donor’s perspective.  So, we thought we’d share some of the words of wisdom heard recently from the wide variety of donors we’ve spoken to.  As a part of our daily work we spend a lot of time listening to donors share their candid impressions of our client’s organizations as a whole; everything from the effectiveness of the staff and board to the way they are cultivated. Through the planning study, development assessment and capacity building interview process we learn a lot about donor’s expectations and we’ve found that there are many valuable takeaways when you examine cultivation and stewardship from a donor’s perspective.  So, we thought we’d share some of the words of wisdom heard recently from the wide variety of donors we’ve spoken to.  Ask me what motivates me to give. I want to know where the organization stands, and in what particular areas they are in need of help. Ask me about my preferred method of communication, and what my preference is when it comes to solicitation. I want to meet with someone from the organization twice a year, and perhaps do a site visit. I don’t ever want to be handed a gift proposal without having had a conversation first with someone from the organization. A personalized thank you note means so much more than a form letter. I don’t appreciate being asked to make an unrestricted gift to an organization and then receiving another ask a month later. Even as a longstanding donor, I like to get something personal every once in a while—a call to update me on the organization or to provide me with important statistics that will help me better tell the story and get the word out. It’s nice to have board members call donors every couple months to follow-up and simply thank them for their gift. I could do more if I were asked (i.e. bring people to events, talks to get the message out, etc.). Interesting to hear the donor’s side of the story, isn’t it? Proof that it’s always beneficial to take time and listen to your donors. After all, as one donor simply put it, “It’s not just about writing a check, it’s about building a relationship”—our philosophy exactly. 2012-04-24T19:59:46-05:00 http://curtisgroupconsultants.com/index.php/blog/article/tips_on_converting_event_donors_to_organizational_donors/ http://curtisgroupconsultants.com/index.php/blog/article/tips_on_converting_event_donors_to_organizational_donors/#When:20:51:49Z We recently tuned in to an informative webinar on “Converting Event Donors to Organizational Donors” presented by fellow Giving Institute member, Event 360. The webinar, part of Giving Institute’s monthly series, opened by defining the characteristics of these two distinctly different types of donors—the difference being the individual’s degree of knowledge, connection, motivation and investment. Event donors are often connected by a third party and less knowledgeable about your mission, connected to your cause, and motivated to make a significant contribution, while organizational donors are usually far more invested in your cause, thus knowledgeable, connected and motivated. We recently tuned in to an informative webinar on “Converting Event Donors to Organizational Donors” presented by fellow Giving Institute member, Event 360. The webinar, part of Giving Institute’s monthly series, opened by defining the characteristics of these two distinctly different types of donors—the difference being the individual’s degree of knowledge, connection, motivation and investment. Event donors are often connected by a third party and less knowledgeable about your mission, connected to your cause, and motivated to make a significant contribution, while organizational donors are usually far more invested in your cause, thus knowledgeable, connected and motivated. An event, if approached strategically, can be much more than a one-time opportunity to raise funds for your organization—shift your focus to view it as an opportunity to engage with a brand new pool of donors. Be sure to present your organization in the best possible light (i.e. are your materials professional, polished, up-to-date, etc.). An event often draws individuals with little relationship to your organization, so it’s imperative to make yourself as attractive as possible in order to leverage this network to the best of your ability. So, how do you convert these “arms length” donors to long-term organizational donors?  A few helpful tips include: 1. Information Gathering. Gather as much data as possible to help segment event donors into categories. Are they potential Major Gift, Annual Fund or Planned Giving donors? Ask them why they give, to help find out more about their motivation and allow them a chance to tell their story. 2. Engagement. Develop a segmented engagement strategy by looking at the 8 to 10 months following the event to determine how you will engage each group of donors. How often will you engage with them, what methods will you use, what types of touches will you have, etc.? Involve colleagues from appropriate areas of your development office. 3. Qualify and Cultivate. First, qualify event donors as a yes, no or a maybe, then cultivate according to their segment to move these donors from an educational phase to a call-to-action where they are prepared to make a gift. Define your relationship with them and make a long-term strategy. 4. Conversion (or the ask). Make sure the “who, what, when, where and how” of the ask are in place. Involve other colleagues (i.e. people who brought the donor to the event) to ensure you have the right solicitation approach. 5. Stewardship. Use best stewardship practices to continue to keep event donors engaged and grow the relationship, reminding them that their contribution will help your long-term mission.  Weave the event into the donor’s ongoing relationship with the organization. The nature of an event donor lends itself to a slower path to the ask, but by laying the proper groundwork, convincing them that your organization is a good fit for them, it will be worth it in the end.  Not only will you be educating more people about your organization’s mission, but you will be growing a whole new group of organizational donors to support your long-term goals. 2012-04-19T20:51:49-05:00 http://curtisgroupconsultants.com/index.php/blog/article/building_excellence_grantees_reflect_on_development_successes_and_challenge/ http://curtisgroupconsultants.com/index.php/blog/article/building_excellence_grantees_reflect_on_development_successes_and_challenge/#When:18:38:04Z Earlier this week, The Hampton Roads Community Foundation gathered past grantees of its Building Excellence program to share ideas and discuss development challenges.  The gathering not only produced very interesting conversation but some great ideas that we thought we’d share.  Earlier this week, The Hampton Roads Community Foundation gathered past grantees of its Building Excellence program to share ideas and discuss development challenges.  The gathering not only produced very interesting conversation but some great ideas that we thought we’d share. Board engagement was a reoccurring theme that presented itself over the course of the lunch. The conversation centered around not only how to keep current board members engaged, but how to engage past board members, and how to recruit the right board members for the future.  Continuing to involve and engage current board members in fundraising was a challenge that was mentioned by most organizations, specifically the difficulty of motivating the board if it is only staff’s role. One nonprofit representative brought up the concept of identifying one “champion,” either a board chair or a development committee chair, to really turn the tide for the rest of the board. If this one person truly understands the fundraising process and is excited by it then they could motivate their peers and help bring other board members along.  With regard to engaging past board members, one organization talked about how they had begun hosting special cultivation events where they invited them in for a “VIP” briefing on the state of the organization. This was only being done once or twice a year, which is typically about as much as past volunteers want to be involved anyway, but a great way to keep them in the loop and make them still feel as though they are a part of the organization. The importance of continuing to recruit the right kind of board members was also discussed.  In one organization, the executive director and director of development were actually playing a key role in board recruitment. Sure, the board needs to be involved in this process but the staff also knows exactly what the organization needs which can be extremely helpful in recruiting the appropriate volunteers. Another organization mentioned that when they recruited new board members they were bringing them on having already identified three specific things they could do for the organization (i.e. recruit another board member, obtain a key sponsorship for an event, make three major gift calls for a campaign, etc.). The conversation then turned to the stewardship and cultivation of current donors and many organizations agreed that they are seeing a shift in the “we must find new donors” mentality to “let’s first focus on the ones we have.” For several grantees, this involved taking mid-level donors, currently in the $250 to $1,000 range, and ensuring that these people were receiving an adequate number of touches and that they weren’t all passive (i.e. making actual visits to these donors to move them along instead of a sending a letter). Lastly, raising the visibility of development and fundraising within an organization was another theme that arose during the lunch. All of the grantees agreed that the Building Excellence grant process had raised the priority level and importance of development and fundraising within their organization. Some organizations even reported that they have this conversation at the board level every month to discuss how they are performing in development, etc. What a great way to keep fundraising top-of-mind for your board members. We certainly look forward to meeting quarterly with these nonprofits to hear more about their successes in fundraising! 2012-04-13T18:38:04-05:00 http://curtisgroupconsultants.com/index.php/blog/article/nonprofit_research_collaborative_releases_new_nonprofit_fundraising_survey/ http://curtisgroupconsultants.com/index.php/blog/article/nonprofit_research_collaborative_releases_new_nonprofit_fundraising_survey/#When:15:22:18Z Earlier this week, the Nonprofit Research Collaborative released the results of its most recent Nonprofit Fundraising Study, which covers charitable receipts of U.S. nonprofit organizations during the 2011 calendar year. More than 1,600 nonprofits responded to the survey representing organizations with both large and small budgets and across all sectors from Arts, Culture and Humanities to Religion.  Earlier this week, the Nonprofit Research Collaborative released the results of its most recent Nonprofit Fundraising Study, which covers charitable receipts of U.S. nonprofit organizations during the 2011 calendar year. More than 1,600 nonprofits responded to the survey representing organizations with both large and small budgets and across all sectors from Arts, Culture and Humanities to Religion. The study found that 53% of nonprofits surveyed showed an increase in charitable receipts by the end of 2011, as compared to 2010. This is the first time in more than five years that the majority of survey respondents reported an increase in charitable giving. In addition, nearly 59% of nonprofits surveyed met their fundraising goal for 2011. As far as an outlook for 2012, the survey produced optimistic results with 71% of respondents expecting to raise more money this year than they did in 2011. We encourage you to check out the full report which looks at other areas of fundraising including, board participation, fundraising approaches and much more. 2012-04-04T15:22:18-05:00 http://curtisgroupconsultants.com/index.php/blog/article/planning_for_pledge_attrition/ http://curtisgroupconsultants.com/index.php/blog/article/planning_for_pledge_attrition/#When:00:26:42Z Speaking of questions that have come up following our presentations lately, someone recently inquired about pledge attrition after our webinar on effective capital campaigns. The question was: How can nonprofits best plan for unpaid pledges during a campaign?  Speaking of questions that have come up following our presentations lately, someone recently inquired about pledge attrition after our webinar on effective capital campaigns. The question was: How can nonprofits best plan for unpaid pledges during a campaign? Because capital campaigns are built around multi-your pledges, a nonprofit can expect to experience some pledge attrition due to unforeseen circumstance such as a bankruptcy, loss of employment, or the death of the donor over the course of the campaign. But, by and large donors fulfill their commitments. Accountants often advise nonprofits to plan conservatively for 8-10% pledge attrition.  However, over the course of our firm’s 23-year history working on campaigns, we’ve rarely seen a percentage of unpaid pledges that high—normally see no more than 2-3%. The times when we have witnessed a higher rate of pledge attrition have been in campaigns with many broad-based, smaller donors that may not have a strong relationship to the organization. Ongoing stewardship is key when considering pledge attrition, especially in a multi-year campaign. A nonprofit cannot assume that just because a donor has made a pledge that they will fulfill it. A verbal pledge is never something you should count. We always advise our clients not to add anyone to the publicly shared contributors list and certainly not to the “books” until a written pledge from the donor is secured.  In addition, it’s imperative to stay in touch with the donor, send them frequent pledge payment reminders, and of course, thank them throughout the campaign. If a donor misses a pledge payment, it’s important to follow-up immediately—do not let months go by before addressing it. It’s possible that it just slipped the donor’s mind. Remember too, that often times it’s the satisfied donors who have been stewarded properly over the course of the campaign that you can return to towards the end of a campaign when you’re looking to reinvigorate and close on your goal. It’s also worth noting that we don’t recommend a campaign pledge period of more than five years; our recommended range is usually 3 to 5 years. Beyond 5 years, your chances of unpaid pledges will likely increase as there are many factors that could arise and affect a donor’s ability to complete their pledge. I recently heard a great story told at the Giving Institute/Giving USA meeting, where a large organization in California that just concluded a $1 billion capital campaign (with hundreds of thousands of donors) only had a pledge attrition of $500,000. This is an amazing rate—below 1/10 of 1%. The point being that if people believe in your mission, and they are properly stewarded, without any unforeseen circumstance, they will give. 2012-03-13T00:26:42-05:00 http://curtisgroupconsultants.com/index.php/blog/article/restricted_gift_dilemma_the_importance_of_shooting_straight_with_your_donor/ http://curtisgroupconsultants.com/index.php/blog/article/restricted_gift_dilemma_the_importance_of_shooting_straight_with_your_donor/#When:01:35:08Z Wendy had an interesting question following a presentation last week that we felt was noteworthy.  A participant inquired how best to handle a donor who offers to make a restricted gift that could be put to better use if directed toward a different area.  This nonprofit leader described a situation in which a donor wanted to give $50,000 restricted specifically to endowment. This was a very significant gift for this organization but at the time their primary need was debt reduction, which meant that restricting a gift of this size was not going to help them meet their immediate challenges.  Wendy had an interesting question following a presentation last week that we felt was noteworthy.  A participant inquired how best to handle a donor who offers to make a restricted gift that could be put to better use if directed toward a different area.  This nonprofit leader described a situation in which a donor wanted to give $50,000 restricted specifically to endowment. This was a very significant gift for this organization but at the time their primary need was debt reduction, which meant that restricting a gift of this size was not going to help them meet their immediate challenges. While the organization didn’t want to appear ungrateful for the gift, they decided to sit down with the donor and discuss what $50,000 toward debt reduction could mean in terms of savings on future interest. In addition, they demonstrated how this large savings would compare to the small amount of money that would be generated annually from a $50,000 endowment. We affirmed the nonprofit’s plan of action.  Sitting down with a donor to explain the immediate needs of your organization may be the necessary step to not only educate them, but open up their thinking to other options for their gift. Many donors aren’t close enough to an organization to know what its pressing needs are; they simply know they want to help. Just as in the situation above, some donors may think that a gift of $50,000 for endowment is a priority when in fact it wouldn’t actually contribute a large enough amount to make an impact on an organization’s budget. In the end, a simple face-to-face conversation with your donors to help them better understand your most pressing needs may be worth the hour of time invested. After all, as a development professional it’s your charge to serve as a wise steward for your nonprofit and to help donors invest wisely in your organization. 2012-03-01T01:35:08-05:00 http://curtisgroupconsultants.com/index.php/blog/article/komen_planned_parenthood_the_importance_of_a_crisis_communication_plan/ http://curtisgroupconsultants.com/index.php/blog/article/komen_planned_parenthood_the_importance_of_a_crisis_communication_plan/#When:19:25:33Z An article that ran last week in the Chronicle of Philanthropy got us thinking about the recent controversy between Susan G. Komen and Planned Parenthood. No matter where you stand on the issue, there are valuable lessons to be learned for any nonprofit. The most obvious to us is the importance of a solid crisis communication plan. An article that ran last week in the Chronicle of Philanthropy got us thinking about the recent controversy between Susan G. Komen and Planned Parenthood. No matter where you stand on the issue, there are valuable lessons to be learned for any nonprofit. The most obvious to us is the importance of a solid crisis communication plan. The time that it took for the Komen organization to respond to the backlash of its decision to cut off grants to Planned Parenthood for breast cancer screening and education, may have caused just as much damage to donor relationships, as the decision itself. This was obviously a decision that the organization had taken time to come to and certainly one that they anticipated controversy over, but it became apparent that they were unprepared for the overwhelming rejection of the decision.  First lesson learned: we live in an information-rich society where news is made instantaneously available through technology. Many heard this decision and immediately voiced their rejection and demand for a change in policy; however it took Komen officials almost four days to communicate the news that they were rescinding their decision to defund Planned Parenthood. The delay in response to donors will likely have a negative impact on the organization for some time. As for Planned Parenthood, they have become the beneficiary of a great outpouring of support and funds as a result of Komen’s decisions. Not only this, but the controversy has highlighted the fact that Planned Parenthood offers more than just reproductive health initiatives, but programs surrounding breast cancer screening and early detection education.  What an opportunity to cultivate new donors and to leverage the interest and visibility generated by this situation? Second lesson learned: If a situation of this scope were to affect your nonprofit tomorrow, would your leaders be prepared to capitalize on it?  Would you have the ability to quickly build on the new donor relationships?  Would you have the ability to cultivate and steward these donors wisely so they could become more than just one-time donors? Both sides of the controversy beg the question: Does your nonprofit have a crisis communications plan in place? Can crisis management-type decisions be made without consulting large groups or committees? And most importantly, if a situation like this were to arise for your organization, would you be agile enough to respond and communicate with your donors more expeditiously than Komen did? 2012-02-21T19:25:33-05:00 http://curtisgroupconsultants.com/index.php/blog/article/before_the_campaign_planning_study_theres_the_business_plan/ http://curtisgroupconsultants.com/index.php/blog/article/before_the_campaign_planning_study_theres_the_business_plan/#When:15:50:25Z Last week, as a result of our webinar on “What Makes an Effective Capital Campaign?” a question arose that we thought was worth addressing.  One participant asked us to further explain the need for the business plan that we often recommend developing before moving into any type of campaign.  Last week, as a result of our webinar on “What Makes an Effective Capital Campaign?” a question arose that we thought was worth addressing.  One participant asked us to further explain the need for the business plan that we often recommend developing before moving into any type of campaign.  The simple answer is this: a campaign should be considered a new line of business for an organization; therefore, a plan for the particular project that you are raising money for should be developed. Just as a company wouldn’t launch a new product line without a strategy for its marketing and sales, a capital project, for example, shouldn’t be embarked upon without a plan either.  Obviously, testing the feasibility of your campaign through a Planning Study is imperative to the success of any campaign but even before this step, it’s important to develop a business plan for the project itself.  This entails a thorough analysis of all aspects of your project, including: the need and the cost, how it will be managed, how it will be sustained (operated and expenses covered), does it fit into your mission and does your organization have the ability to execute this project simultaneously with its existing programs/projects. It is imperative that your board thinks through these questions and develops a plan before even beginning a Planning Study, much less a campaign. Going through this exercise will help not only refine your plans but address any deficiencies. Having a business plan in place helps an organization ensure that their project is credible and well founded. This is particularly important when talking to prospects about their gift to a campaign because it allows ‘the ask’ to be presented to them as a sound investment. Now more than ever, donors view charitable gifts as investments—they want to not only feel confident about the feasibility of the campaign, but to see metrics and know that the project has been well thought-out. So before you consider proceeding with a campaign, no matter how big or small, ensure that you’ve done the proper planning and developed a road map not only for how the campaign will be orchestrated but how the project will sustain itself as well. This will allow your organization’s leaders more confidence in the campaign’s execution and your donors will be more responsive to your requests knowing there is a solid plan in place for the project once the money has been raised. 2012-02-17T15:50:25-05:00 http://curtisgroupconsultants.com/index.php/blog/article/impact_of_proposed_tax_changes_on_us_giving/ http://curtisgroupconsultants.com/index.php/blog/article/impact_of_proposed_tax_changes_on_us_giving/#When:19:26:30Z The Giving Institute recently hosted an informative webinar on the proposed changes to the U.S. tax code and what it means for giving in our country.  We wanted to share some of the valuable information presented in the webinar, led by Patrick Rooney, PhD, Executive Director of the Center on Philanthropy at Indiana University. The Giving Institute recently hosted an informative webinar on the proposed changes to the U.S. tax code and what it means for giving in our country.  We wanted to share some of the valuable information presented in the webinar, led by Patrick Rooney, PhD, Executive Director of the Center on Philanthropy at Indiana University. The webinar opened with a brief historical overview of how the top marginal tax rate (currently at 35%) has varied in the U.S., specifically since 1940, and has impacted the cost of a charitable gift to the donor.  President Obama’s 2012 budget proposal, which includes two policy changes, was then outlined: 1.) Limit itemized deductions to 28% for taxpayers at the highest marginal income tax rate, which reduces the value of charitable deductions for those in the 35% tax bracket 2.) Increase the tax rate for highest marginal income tax bracket (households with an annual income of $200,000+) from 35% to 39.6% Given these changes, the President’s proposal would impact giving in two ways: 1.) Reduce the cap on deductions to 28% which decreases the charitable giving incentive 2.) Raise the top marginal tax rate which reduces disposable income available for charitable giving Based on the Center on Philanthropy’s research, as well as some other reputable related studies by the Congressional Research Service and the Tax Policy Center, the proposals will have a relatively modest negative impact on charitable giving.  The Center estimates if both policy changes are passed, total itemized giving in the U.S. would decrease by 1.3%, and itemized giving by high net worth individuals (households with $200,000+ annual income) would be reduced by 2.4%.  They also predict the tax rate increase policy would have a greater negative effect than a deduction cap. While the President’s proposals may have a minimal impact on giving, we subscribe to the same premise that the Center on Philanthropy stated during the conclusion of the webinar: changes in household economic circumstances have greater impact than tax rates. Additionally, negative outlooks--perceived or realized--in the U.S. economy have a greater impact on giving than tax policy.  At The Curtis Group, we follow a few key economic indicators to help us predict the state of philanthropy in the U.S. including the S&P 500, consumer confidence index, GDP, and personal income and consumption numbers.  We believe these are among the best measures that will affect our country’s giving numbers. 2012-02-08T19:26:30-05:00 http://curtisgroupconsultants.com/index.php/blog/article/the_importance_of_recruiting_and_retaining_the_right_volunteers/ http://curtisgroupconsultants.com/index.php/blog/article/the_importance_of_recruiting_and_retaining_the_right_volunteers/#When:20:16:04Z Last week, the Richmond Times-Dispatch interviewed Keith for an article addressing the surprisingly low volunteer rate in the Richmond,Virginia area. The article juxtaposes this reality against the fact that 2010 actually showed the highest growth rate in U.S. volunteerism since 2005, climbing to 63 million. Last week, the Richmond Times-Dispatch interviewed Keith for an article addressing the surprisingly low volunteer rate in the Richmond,Virginia area. The article juxtaposes this reality against the fact that 2010 actually showed the highest growth rate in U.S. volunteerism since 2005, climbing to 63 million. So why is it that only 20.9% of Richmond-area residents volunteered in 2010? As Keith suggests in the article many nonprofits aren’t taking the time to really talk with volunteers about how they would like to become engaged and aren’t working to keep them engaged in the organization and the mission - a pretty important effort, seeing as volunteers are most likely to become donors. It must first be understood that it is the role of a nonprofit to reach out to volunteers and ensure that they are being offered substantive and meaningful opportunities. Similar to a conversation you would have with a potential donor, it is imperative that nonprofits talk to potential volunteers to determine their interests and the types of projects that they are seeking. Nonprofits should constantly be developing a menu of meaningful projects that can engage volunteers for a short period of time and make them feel as though they’ve accomplished something. As studies have shown, this particularly pertains to Millenials and Gen Xers. If you’re looking for volunteers to serve specific roles within your organization (i.e. committees, etc.) you must be upfront with them about your organization’s expectations and determine how those align with their own expectations of you as an organization. Determining what a volunteer is looking to get out of an opportunity is imperative so that you can match them appropriately. Nonprofits should also be constantly looking for new ways to keep volunteers satisfied (just like donors). A perfect example is the typical nonprofit board agenda, which for most organizations, hasn’t changed much since the 1950’s. Determine if there are ways that you could restructure your meeting agenda to better suit the needs of those volunteers in attendance. Volunteering In America, an online resource devoted to information on volunteering and civic engagement, found that Americans invested 8.1 billion hours serving local and national organizations in 2010, a service valued at almost $173 billion. Thinking about volunteering in these terms only reinforces the idea that taking the time to make sure your volunteers are happy and remaining engaged is a worthwhile effort for any nonprofits. After all, volunteers who are invested in an organization are most likely not only to become donors, but loyal donors at that. 2012-02-01T20:16:04-05:00 http://curtisgroupconsultants.com/index.php/blog/article/tips_for_building_a_strong_board_from_a_seasoned_veteran/ http://curtisgroupconsultants.com/index.php/blog/article/tips_for_building_a_strong_board_from_a_seasoned_veteran/#When:20:08:40Z Last week we attended the first of the 2012 AFP-Hampton Roads luncheon series.  Susan Hirschbiel, philanthropist, community volunteer, and recipient of the National Philanthropy Day 2011 Outstanding Volunteer Fundraiser, spoke on the topic of building a strong board.  It’s not often that nonprofit professionals have the opportunity to hear about board service from an actual board member, not to mention one who is so passionate and renowned in the community.  Susan provided insightful ideas based on her fifteen years of serving as a board member, fundraiser, and patron of arts and education in Hampton Roads.  Last week we attended the first of the 2012 AFP-Hampton Roads luncheon series.  Susan Hirschbiel, philanthropist, community volunteer, and recipient of the National Philanthropy Day 2011 Outstanding Volunteer Fundraiser, spoke on the topic of building a strong board.  It’s not often that nonprofit professionals have the opportunity to hear about board service from an actual board member, not to mention one who is so passionate and renowned in the community.  Susan provided insightful ideas based on her fifteen years of serving as a board member, fundraiser, and patron of arts and education in Hampton Roads.  Below is a summary of her presentation. Key strategies for building a successful nonprofit board: 1. Have a clear mission with a shared understanding between the staff and the board. There must be open dialogue and communication between a nonprofit’s leadership and its board members.  It is the board’s responsibility to revisit the nonprofit’s mission and ensure the work of the organization remains on track to achieve the goals. It is also a good idea to share a complete staff chart with your board so they understand the operations of the organization and can recognize the names of all nonprofit staff members. 2. Create a diverse board. There should be a range of board members by geographic region, age, race and professional skills. 3. Set expectations with board members up-front.  All volunteers must be informed of the expectations for their participation on the board (giving, meeting attendance, etc.).  Educate the board about the investment that is expected of them.  The number one obligation of every nonprofit board member is raising money. Prospective funders look for 100% board giving. It is fundamental to successfully soliciting donations. 4. Share all financial information with the board. There must be complete transparency with a nonprofit’s finances.  Share short-term and long-term strategic plans with the board; all members should be familiar with the nonprofit’s budget. The budget should be managed by the executive director/CEO, as well as the CFO and audited by the board. It is imperative the nonprofit demonstrates fiscal responsibility and shares the evidence with the board members. 5. Institute term limits for your board. Three to five years is the maximum amount of time a board member should serve, but longer serving board members can be moved to honorary positions.  Your board chair should serve a two-year term. There should always be a vice-chair who will be the next chair and an immediate past chair.  The vice-chair is elected in the second year the chair is serving and learns from the chair during the year as vice-chair. The immediate past chair serves for one year after stepping down as chair in an advisory role to the current chair. Always have a succession plan for your board chair. In addition to the aforementioned strategies for building an effective board (which we couldn’t agree with more, as it’s what we preach to our clients every day), Susan gave the audience a few pieces of parting wisdom which included: Board size. There isn’t necessarily an ideal size for a board, but the key decision making should remain with a core group of members (approx. 5) which comprises the Executive Committee. Board meetings should be held once a month at the same day of the week and time each month to help members plan for the year ahead. All meetings should be kept to one hour--no longer. Board meetings are not a time to review policies and have drawn-out discussions on certain items.  They should be used primarily for reporting and providing updates.  Board meetings should be run by your board chair and the nonprofit management is responsible for preparing for each meeting and assisting the board chair with setting the agenda.  The nonprofit management is also responsible for taking minutes and distributing them at the following meeting for approval. Solicitation. Susan reminded the audience to, “Always remember you are not asking for yourself, you are asking for a cause.” 2012-01-23T20:08:40-05:00 http://curtisgroupconsultants.com/index.php/blog/article/growing_philathropy/ http://curtisgroupconsultants.com/index.php/blog/article/growing_philathropy/#When:19:46:27Z A recent article in The Nonprofit Quarterly posed the question, “How can we grow philanthropy in the United States?” It’s one that deserves some thought, especially in light of the fact that giving in this country has remained flat (approximately 2% of household income) over the past 40 years. As we highlighted in a post last month, the U.S. remains the world’s most generous country, as well as the wealthiest, which one could argue morally obligates us to also serve as an international leader in charitable giving.  This could be measured in a variety of ways, including total dollars donated, percentage of household income given to charitable organizations, and hours spent volunteering. A recent article in The Nonprofit Quarterly posed the question, “How can we grow philanthropy in the United States?” It’s one that deserves some thought, especially in light of the fact that giving in this country has remained flat (approximately 2% of household income) over the past 40 years. As we highlighted in a post last month, the U.S. remains the world’s most generous country, as well as the wealthiest, which one could argue morally obligates us to also serve as an international leader in charitable giving.  This could be measured in a variety of ways, including total dollars donated, percentage of household income given to charitable organizations, and hours spent volunteering. Given the statistic above as reported by Giving USA 2011, we as a sector (nonprofit staff, foundation leaders, and board members alike) should be doing more to promote and grow philanthropy in this country. The question is: How? Blackbaud recently compiled findings from the first “Growing Philanthropy Summit” held last summer in Washington, DC addressing this very question.  The discussions centered around the concept of growing giving by enhancing the quality of the donor experience.  The Summit produced many interesting ideas for nonprofits, which fell under four themes: Enhancing the quality of donor relationships Developing public trust and confidence in the sector Identifying new audiences, channels, and forms of giving with strong potential for growth Improving the quality of fundraising training and development Click here to view the full report. While giving has remained static over the past four decades, the demands on the nonprofit sector have not. Now more than ever, it’s imperative that we as Americans focus on addressing the increasing financial need of the more than 1.5 million nonprofits in this country.  Nonprofit professionals play an important role in promoting a culture of philanthropy in the United States.  The recommendations in the Blackbaud report provide concrete guidance on how the industry itself can achieve the goal of increasing income from individual donors. 2012-01-18T19:46:27-05:00 http://curtisgroupconsultants.com/index.php/blog/article/charitable_giving_forecast_how_potential_changes_in_the_us_tax_code_could_e/ http://curtisgroupconsultants.com/index.php/blog/article/charitable_giving_forecast_how_potential_changes_in_the_us_tax_code_could_e/#When:21:28:25Z The nonprofit industry is keeping a close watch on Washington in 2012 as this year could bring about some significant changes in tax legislation that will affect American’s charitable giving.  While most of the proposed policies are not favorable to organizations filing as 501(3)c, fundraisers could see an increase in donations this year as people evaluate their financial plans for the future.  The nonprofit industry is keeping a close watch on Washington in 2012 as this year could bring about some significant changes in tax legislation that will affect American’s charitable giving.  While most of the proposed policies are not favorable to organizations filing as 501(3)c, fundraisers could see an increase in donations this year as people evaluate their financial plans for the future.Below is the current tax legislation under review: Charitable deductions. President Obama’s 2012 fiscal budget proposes reducing the amount of money Americans can write-off on their taxes for gifts made to charitable organizations.  Though Congress hasn’t (yet) voted this into law, concern about the national deficit could push the legislation forward in 2012. Donors who are worried about the potential for new limits in 2013 may be motivated to give in this calendar year, or to accelerate payments on pledges from past years, in order to receive the full tax break. Estate taxes. Currently, an individual can gift or leave in an estate up to $5 million and a couple can leave or gift up to $10 million tax-free in 2012, but unless Congress takes action, much more of their estates may be taxable in 2013. The possibility for this change has already prompted many people to think about how best to arrange their finances and provide for their families.  More donors are creating charitable lead trusts, which provide payments to a charity for several years before the assets revert back to the donors’ heirs.  Because the estate-tax law will cause so many donors to review their wills this year, nonprofits should be sure to remind older donors to make charitable bequest plans.  Beyond the current tax issues, nonprofits should focus on offering donors alternatives to traditional cash gifts.  They should have a strong planned giving program that is part of the fundraising strategy.  Non cash gifts. These include the gift of stock, real estate, or other non cash donations.  As interest rates remain historically low, donors who live off the earnings on their investments probably feel cash poor.  However they still want to contribute to causes they care about and can do so by supporting a nonprofit with other types of gifts. Bequests. A donor can designate a nonprofit as a beneficiary of a will or living trust to create a permanent fund.  The donor can name a specific dollar amount or a percentage of their estate. Gift annuities. Charitable gift annuities may also be a popular way for donors to invest in a nonprofit.  Donors give assets to a charity to invest; in return, they receive payments for life in addition to a tax break.  Gift annuity payments are typically worth more than donors can realize from treasury bonds, certificates of deposit, or money-market funds. Charitable lead trust. This type of gift distributes income to a nonprofit for a predetermined number of years during a donor’s lifetime.  The assets are then returned to the donor or their surviving family members.  This type of gift allows a donor to make a significant gift to a nonprofit and then transfer back the assets while saving taxes. In 2012 nonprofits should emphasize planned giving as part of their overall development strategy.  Strategic fundraisers are constantly thinking about how economic environment and fiscal policy affects donors’ willingness and ability to give.  Fundraisers should be well-versed in all types of gifts a donor can make.  They should ensure their nonprofit has a communication strategy to promote planned giving as well as established policies to accept these gifts. 2012-01-10T21:28:25-05:00 http://curtisgroupconsultants.com/index.php/blog/article/new_years_advice_and_good_news_for_nonprofits/ http://curtisgroupconsultants.com/index.php/blog/article/new_years_advice_and_good_news_for_nonprofits/#When:22:30:35Z With 2012 off and running, we wanted to pass along some guidance that we shared earlier this week in a column for The Hampton Roads Business Journal, Inside Business. While fundraising remains challenging in our post-recession economy, nonprofits that are strategic in their approach and demonstrate effective programming will find success in raising money. We have seen this in the last several years across Virginia and beyond, and we believe 2012 will continue this trend. Click here to view the article and see what we’re recommending to nonprofits to assure they are well-positioned in the coming year. With 2012 off and running, we wanted to pass along some guidance that we shared earlier this week in a column for The Hampton Roads Business Journal, Inside Business. While fundraising remains challenging in our post-recession economy, nonprofits that are strategic in their approach and demonstrate effective programming will find success in raising money. We have seen this in the last several years across Virginia and beyond, and we believe 2012 will continue this trend. Click here to view the article and see what we’re recommending to nonprofits to assure they are well-positioned in the coming year. 2012-01-05T22:30:35-05:00 http://curtisgroupconsultants.com/index.php/blog/article/giving_usa_spotlight_relationship_cultivation_using_social_media/ http://curtisgroupconsultants.com/index.php/blog/article/giving_usa_spotlight_relationship_cultivation_using_social_media/#When:01:18:00Z As most nonprofits are wrapping up the final week of their annual giving campaign and gearing up for the New Year, we wanted to share some valuable information from the latest edition of the 2011 Giving USA Spotlight series. The third and final issue of the year, entitled, “Relationship Cultivation Using Social Media” offers good insight into social media as a cultivation tool, including how to effectively use it for cause messaging, volunteering, as well as fundraising. The article proves that when used correctly, social media can be a powerful tool for nonprofits in disseminating their message and building a base for support—financial or otherwise. As most nonprofits are wrapping up the final week of their annual giving campaign and gearing up for the New Year, we wanted to share some valuable information from the latest edition of the 2011 Giving USA Spotlight series. The third and final issue of the year, entitled, “Relationship Cultivation Using Social Media” offers good insight into social media as a cultivation tool, including how to effectively use it for cause messaging, volunteering, as well as fundraising. The article proves that when used correctly, social media can be a powerful tool for nonprofits in disseminating their message and building a base for support—financial or otherwise. Highlights from the surveys featured in the Spotlight: Understanding the social media audience is crucial for effective outreach; tailor solicitations appropriately to your target audiences. There is a noticeable difference among various age groups in how they engage in social networking and how they respond to solicitation through these channels.Generation X and Millennials were the most receptive to considering an online donation from a social networking site’s solicitation. Repeat donors from all age groups and older donors still hold preference for traditional forms of solicitation (peer-to-peer ranking #1 and direct mail #2). Using social media sites for marketing and information sharing to connect with supporters shows more promise that direct fundraising. Social media can be used for fundraising, but when it is, expect much smaller gifts; however these gifts are no less valuable to a nonprofit as they can be used to identify new donors who may be prospects for larger gifts. Social media allows nonprofits to reach and communicate with a broad range of populations through easy-to-use and inexpensive channels. Useful Tips for Nonprofits from the Spotlight: Social media should be used as a holistic tool across all programmatic areas: marketing, advocacy, and fundraising. Employ several social media venues to distribute organizational information and to call supporters to action (i.e. spreading the word about volunteer opportunities, promoting an event and attracting attendees, sharing news about the progress of a project, sharing links to external news stories, etc.). Personalize your presence with social media; include testimonials and photos of your volunteers and beneficiaries of your cause. Be sure to monitor and frequently update all your social media venues with up-to-date information and provide supporters the means to engage in thoughtful dialog. If you read our winter edition of Raising Money, you’ll recall one of our top five tips for preparing for success in the New Year was to “revisit your development plan.” In today’s world, social networking is a necessary component of any effective nonprofit development plan and while it should not be used to supplement your organization’s traditional fundraising programs, it’s important to develop an integrated fundraising plan that utilizes multiple solicitation channels and helps build relationships. After all, social networking is all about making connections and continuing to engage the community it reaches. 2011-12-29T01:18:00-05:00 http://curtisgroupconsultants.com/index.php/blog/article/americans_remain_amongst_the_worlds_most_generous/ http://curtisgroupconsultants.com/index.php/blog/article/americans_remain_amongst_the_worlds_most_generous/#When:18:03:34Z As another challenging year for nonprofits draws to a close, we were encouraged to read this week that a recent global poll found the United States to be the most generous country in terms of charitable giving. Despite the fact that we are still recovering from the worst recession we’ve seen in decades, Americans managed to climb from last year’s fifth place ranking to first of the 153 countries surveyed this year. According to respondents, two out of three Americans said they donated money to a charity and nearly three out of five volunteered their time in 2011. As another challenging year for nonprofits draws to a close, we were encouraged to read this week that a recent global poll found the United States to be the most generous country in terms of charitable giving. Despite the fact that we are still recovering from the worst recession we’ve seen in decades, Americans managed to climb from last year’s fifth place ranking to first of the 153 countries surveyed this year. According to respondents, two out of three Americans said they donated money to a charity and nearly three out of five volunteered their time in 2011. As the results of Giving USA showed us earlier this year (i.e. giving rose 3.8% in 2010), even when times are tough Americans continue to find ways to support those in need. To us, this speaks volumes about the people of our country. So with the season of giving in full swing this week, not to mention many nonprofits wrapping up the final phases of their annual giving campaigns, remember those in need, support a charity with a year-end gift and let us not forget as we look to the new year, one of the things that should make us most proud to be American - our philanthropic nature. And with that, we wish you a joyful holiday season! 2011-12-21T18:03:34-05:00 http://curtisgroupconsultants.com/index.php/blog/article/more_nonprofits_really/ http://curtisgroupconsultants.com/index.php/blog/article/more_nonprofits_really/#When:02:44:43Z A recent study found that 12 million baby boomers want to start their own nonprofit or socially oriented business over the next decade.  While this sounds like a wonderful way to engage in social change by improving communities, it’s troublesome news to those of us in the nonprofit industry who observe constant duplication of services and nonprofits’ ongoing struggle to sustain themselves. A recent study found that 12 million baby boomers want to start their own nonprofit or socially oriented business over the next decade.  While this sounds like a wonderful way to engage in social change by improving communities, it’s troublesome news to those of us in the nonprofit industry who observe constant duplication of services and nonprofits’ ongoing struggle to sustain themselves. Now more than ever, nonprofits are being forced to operate more efficiently, which makes us question why so many baby boomers think that starting millions of new organizations could possibly impact society positively at this point? Additionally, in today’s economy, more and more major gift donors are looking at their gifts as investments. It goes without saying that wise investors want to invest in organizations or initiatives that have strong track records of accomplishing their mission.  If you have an interest in achieving a social goal or meeting a community need, start by researching whether similar efforts are already underway—chances are an organization already exists with a similar mission. If you do however determine that there is a legitimate need for a new organization, keep in mind that your case for support will need to be unique, and you must be able to demonstrate how you will distinctively deliver on your mission.  Ask yourself, would the investment of your time and money not go further in another organization that is already established, has done the research, laid a foundation, and understands the opportunities and challenges, as opposed to a new organization? At a time when nonprofits need your support more than ever, we strongly encourage you to invest in existing organizations; concentrate resources, enhance existing programs or help start creative new ones. Give these nonprofits not only your money but your time and don’t assume that starting your own organization is the best thing for your community. 2011-12-14T02:44:43-05:00