Fall 2011

From The President

As we leave behind the summer (and memories of the great recession) we’ve found our focus shifting a lot lately on how to most effectively navigate the changing economic climate. In this issue of Raising Money, we’ll share with you an insightful conversation we had recently with Melissa Brown, a former Giving USA colleague and volunteer heading up the Nonprofit Research Collaborative’s soon-to-be released study on nonprofit fundraising in 2011.  She provided us with a few teasers on the study’s findings, which report on both the successes and challenges that nonprofits are facing in today’s recovering economy.  We’ll also share candid opinions and advice gathered from foundation leaders on what foundations are looking for from nonprofits in today’s fundraising environment.

We hope you’ll find this information helpful when it comes to positioning your organization for success in the year end and as you gear up for 2012. As always, thank you for reading. Please let us know if we might be of assistance to your organization. We’d enjoy hearing from you.

W. Keith Curtis, President

Nonprofit Research Collaborative Releases New Report

By Wesley Stanley, Marketing Director

At the end of the month, a report will be released on nonprofit fundraising in today’s economy, as a result of responses gathered from over 800 nonprofit leaders surveyed across the country. The survey is a product of the recently formed Nonprofit Research Collaborative (NRC), composed of Giving Institute, AFP, Blackbaud, Center on Philanthropy at Indiana University, Foundation Center, GuideStar, and the National Center for Charitable Statistics. These groups combined forces in 2010 to produce three surveys a year, thus eliminating duplicated efforts on the part of each of the various partners.

Melissa Brown, president of Melissa S. Brown & Associates and the NRC’s chief volunteer coordinating the project, shared with us a few of her insights on the study about to be released. She remarked that, “It was apparent that all of the nonprofits surveyed are clearly working very hard on fundraising and spending time developing comprehensive, diversified fundraising programs.” However, she also added that, “It’s still a tough fundraising climate and while there were some great successes reported, unfortunately there are plenty who are still struggling.”

When asked if the survey results seem to mirror this year’s Giving USA findings, which showed giving up by 3.8% in 2010, Melissa commented that, “People must remember that just because there was an increase in total giving doesn’t mean that every sector was positively impacted.” She says this survey digs deeply into differences in giving by region, size and subsector and “As it turns out, ‘size does matter’ when it comes to giving.” The differences in fundraising success among organizations of varying size were much greater than those of organizations in different regions and subsectors.

The survey also asked respondents to report on successful fundraising methods as well as those which have proven more challenging.  Melissa noted, “Interestingly enough, one particular method showed much more of an increase than any of the dozen other methods offered in the survey.” You’ll have to read the report once it’s released to find out more. To do so, visit GuideStar’s website where the study will be posted next week or contact Melissa Brown at melissa@melissasbrownassociates.com to be added to the NRC’s mailing list. In addition, The Curtis Group will publicize the report’s release on our website, Facebook and Twitter and will also announce the new survey which is scheduled to be out in early October.  If you are a nonprofit leader, we encourage you to participate in future surveys and report your organization’s fundraising successes.

Foundation Relations 101: Tips From the Experts

By Lauren Fenn, Campaign and Communications Manager

According to the Giving USA 2011 report, foundation giving accounts for 14% of total giving in the U.S.—half of that coming from private family foundations. This telling statistic inspired us to share with you some candid advice offered by foundation representatives at several panel discussions we participated in this summer.

When asked what makes a nonprofit effective, foundation representatives agree that sound governance is at the top of the list. A strong nonprofit board is composed of individuals who are diverse in talent and, most importantly, engaged.  This is so critical in fact that many foundations actually look at board involvement and giving when selecting grant recipients. Additionally, the IRS has recently added 10 questions, pertaining specifically to the board, to the 990 tax return. 

Bob Ottenhoff, president and CEO of GuideStar, commented recently at Giving Institute’s Summer Symposium that effective nonprofits are “constantly planning and adapting” (i.e., monitoring course direction, reviewing strategy and measuring results). An organization should never remain stagnant, and always remember that measurements of success must also be adaptable.

Before beginning a grant proposal, first things first; determine if your organization’s needs match the foundation’s funding priorities. Contact the foundation advisor to introduce your organization, inform them about your mission and ask questions instead of guessing.  One of the biggest red flags mentioned by foundation leaders was projects that don’t clearly fit the grant criteria. Others included unrealistic budget projections that seem like pie in the sky when compared with previous budgets, boards that haven’t yet reached 100% giving to the project and obvious things like applications submitted outside the acceptance period or past the deadline.

We heard over and over again how surprised foundation leaders are by the large number of blind requests they receive with little or no follow-up. They added to this by saying that they are looking for a relationship—not a transaction.  They don’t want to just know an organization on paper.  It’s important to view this request as a cultivation process, like with any individual donor.

Once a gift has been made, it’s important to remember that stewardship also applies to foundations.  When asked to provide examples of memorable types of recognition that foundations had received, we heard everything from an animal organization that had an elephant paint a picture for the foundation to a human service organization whose staff and clients took a group photograph holding a large banner thanking the foundation. Naming opportunities were also mentioned as another great way of expressing thanks.  Even if your organization isn’t equipped to produce creative thank-yous that tie into your mission like these, at a minimum make sure you are thanking the foundation through a personal call and note.

Bottom line before even considering starting a conversation with a foundation, ensure that your organization is operating at its peak level of effectiveness.  This coupled with proper cultivation and stewardship can have a big impact when it comes to making a first impression and you’ll likely find that your efforts will end up paying off.

Nonprofit News

• After working with The Curtis Group on its campaign planning and fundraising, Bedford House dedicated its new facility on August 20 during a special ceremony that included local dignitaries and Commonwealth Delegate Lacey Putney.  The residence (pictured above) will focus primarily on end-of-life care, but is also available for respite and other special needs.  For more information, click here. Congratulations to all of the hard working volunteers who made this dream a reality for Bedford area residents.
• The Curtis Group recently assisted two nonprofits place outstanding individuals in new positions. Congratulations to Devan MacConnell, director of development at the UP Center, and Annie Vogt, executive director of the Virginia Sports Hall of Fame Educational Foundation.  Best of luck in your new roles!
• November 15, 2011 marks a special day set aside by AFP International to “recognize and pay tribute to the great contributions that philanthropy and those people active in the philanthropic community have made to our lives, our communities and our world.” The Curtis Group will serve as title sponsor of AFP Hampton Roads’ NPD celebration taking place on November 16 this year and will also participate in various other NPD celebrations around the state.
• For valuable fundraising tips, up-to-the-minute nonprofit news, and the latest research on philanthropy, be sure to follow The Curtis Group on Facebook and Twitter. And in between newsletters, you might find our blog helpful, too.

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