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Nonprofit Radio for November 15, 2013: The Ethics of Asking

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Deni Elliott: The Ethics of Asking

Deni Elliott head shotProfessor Deni Elliott from the University of South Florida edited the book “The Ethics of Asking.” When have you got an ethical issue in fundraising and how do you resolve it? How helpful are the ethics professional codes?

We’ll talk about examples from the book and answer your questions. Use the #NonprofitRadio hashtag on Twitter, the Facebook page or this blog post to leave a question.

 

 

 


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Hello, it’s. Tony martignetti non-profit radio big non-profit ideas for the other ninety five percent i’m your aptly named host. Oh feels good, very good to be back in the studio after three weeks hiatus from the studio. Oh, i hope that you were with me last week. I’d go into ischemia if i learned that you had missed getting to the next level. Lawrence paige nani is the author of the non-profit fund-raising solution based on his work as an executive director and fund-raising consultant, he had proven strategies to get you to the next level of fund-raising revenue this week, it’s the ethics of asking professor denny elliot from the university of south florida edited the book the ethics of asking when have you got an ethical issue in fund-raising and how do you resolve it? How helpful or the professional ethics codes? We’ll talk about examples from her book and take your questions. If you’re listening live, you can join the conversation on twitter using hashtag non-profit radio on tony’s take two five reasons to promote the ira roll over now i’m very pleased to welcome to the show durney elliott she is a director and professor. In the department of journalism and media studies at the university of south florida st petersburg, she holds the point there. Jamison chair in media ethics and press policy and is the campus on buds. She’s written more than one hundred and ninety articles and book chapters. That’s a hell of a lot hyre my bio, this the number of words i’ve written, this is very impressive. She has authored co authored, edited and co edited books, including ethical challenges, building an ethics tool kit, ethics in the first person and the kindness of strangers, philanthropy and higher education. Her writing and her thinking brings her to the show. Professor durney elliot, welcome. Well, thank you. Are you in florida? At the moment? I am yes. Enjoying the winter weather of southern florida. We’ve got the winter weather of southern florida appear in new york practically. Oh, that looks to warm up here. You do a lot of thinking about ethics and and fund-raising, um what? How can we distinguish ethics from long? I’m sorry. How going to sing? Which ethics from law? Law? Legal. Oh, from law. Yeah. You know, that’s an interesting thing. And i decided that i just do a lot of thinking about ethics in my position as department head i’m involved in fund-raising and one way or another to bring some sort of needed resource is into the department, and as i ran too, ethics centers it when a dartmouth and one of the university of montana, sometimes i once felt like a combination of smoke and mirrors. I’m pretty familiar with the day to day in down and dirty part of fund-raising too, so it’s not just a matter of thinking about it, but it’s a matter of thinking about what what one is doing in practice and how it differs from the law is that in philantech p and fund-raising blank with most of the other areas in our lives latto develop law defines a minimal standard that, you know, if you drop below that minimal standard, that you could be held accountable by by statute, generally for your actions. But ethics asked you to think beyond that ethics, asi to think about what’s the right thing to do in a hole. Fear of what ethically permitted actions the law is much narrower, as as you’re saying, there are lots of things that are legal, but wood transgress ah, standard system of ethics, i think yes, sir, my my favorite example is, is just a really straight for everyday example for all of us and that’s it. Now, if you think about about truth telling and lying, you can count pretty much on one hand the situations in which the law prohibits you from lying. You know, you can’t lie on your on your income tax forms and you can’t lie when you’re i know a witness on stay on the stand in court, but but for the most part, we’re pretty honest people. If somebody stopped me on the street and asked me, you know what time it no, it says, according to my my smart phone, i’m going to tell them the truth about the time is i know it’s a baby, i’m going to be truthful with my students and with my friends and colleagues and that’s all in the realm of ethics that no, that goes way beyond what the law requires me to do. Where does morality fit into this? Well, you know that that’s kind of a conversation, probably for maybe even a different kind of radio. Show in that er for more than two thousand years of western moral philosophy, we’ve been thinking systematically about the nature of how it is that people should and should not treat one another. Uh, the word ethics comes from the greek jessica, um, meaning custom or convention, or how we expect people to treat us and the word moral comes from mores again, the latin word for custom or convention and how we expect people to act. And so, you know, i guess what i’m saying is fundamentally there’s really not a difference between least between how i will be using today ethics and the word ethics and the word morals. But that was some people say, oh, well, morals has to do with religion or sex and ethics is what you do in the workplace. I spend a lot of my time trying to integrate our lives and make sure that that i can help people think about how to be the same good person, regardless of what role they happen to have on the moment. And so i tend not to make an arbitrary distinction between morals, morals and ethics. Some professors have over or some philosophers have over the past two thousand years and some haven’t okay, well, when we have those people on there were still living than they can make that distinction, but okay, thank you. And you’re and the topic of the book, the ethics of asking that we’re talking about is, is, uh, your concerns about how fundraisers persuade people to give, right? Yeah, i think that that that when we talk about fund-raising or actually let’s even talk just about the act of giving of donating one’s extra resource is note to create public good as that person sees it, that act is super auditory act it’s ah, it goes beyond what somebody is minimally required to do. And so i think that that when we are working with people who are doing acts that are above and beyond what is minimally respected, explore other assembly expected of folks in private and public life, that there are special considerations on dh special obligations that folks have toward the givers toward the folks who are donating. Okay, um, and we’ll talk about some of those special obligations. How does a person who is a fund-raising professional i know that they are facing something that is an ethical issue. Well, first of all, i think it was the following. Okay, well, first of all of us, everyday face and we generally don’t think about it because we don’t have to, i don’t have to think about it, he’s my example of the stranger asking for time or directions, i don’t have to think about, oh, do i want the light of this person or not? Of course, i’m just going to tell him the truth. And so i think that that’s the only time that ethical issues sort of come to our consciousness or awareness, is when we’re feel like we’re caught between loyalties or caught between expectations are caught between doing something that seems best for our personal self versus doing something that seems better for another, okay, and in those conflicts of loyalties, that could be us as individuals, as you said, or could be, our institutions also conflict, right, right institutions and what may be best for a donor, right? Fundraisers have an interesting complexity of obligations. Ah, fundraisers when my fund-raising role as department chair, for example, i have obligations to the department and to the university as a whole. But at the same time, when i put myself in a position of of trying to extract ueno rie sources from people who don’t, who aren’t required to give them to me or to the university, to the department, i i take on new and special obligations to them as well. All right, we’re going to talk about some of these obligations, et cetera. We take our first break, and when we come back, durney elliot and i will continue talking about the ethics of asking hang in there. Talking alternative radio twenty four hours a day. Do you need a business plan that can guide your company’s growth? Seven and seven will help bring the changes you need. Wear small business consultants and we pay attention to the details. You may miss. Our coaching and consultant services are guaranteed to lead toe. Right groat. For your business, call us at nine. One seven eight three, three, four, eight, six zero foreign, no obligation. Free consultation checkout on the website of ww dot covenant seven dot com are you fed up with talking points, rhetoric everywhere you turn left or right? Spin ideology no reality, in fact, its ideology over in tow. No more it’s time for action. Join me, larry. Shock a neo-sage tuesday nights nine to eleven easter for the isaac tower radio in the ivory tower will discuss what’s important to you society, politics, business and family. It’s provocative talk for the realist and the skeptic who wants a go what’s? Really going on? What does it mean? What can be done about it? So gain special access to the ivory tower. Listen to me, larry sharp, your neo-sage. Tuesday nights nine to eleven new york time go to ivory tower radio dot com. For details. That’s. Ivory tower radio. Dot com every tower is a great place to visit for both entertainment and education. Listening. Tuesday nights nine to eleven. It will make you smarter. Hey, all you crazy listeners looking to boost your business? Why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com dahna welcome back to big non-profit ideas for the other ninety five percent. You should know that we are sponsored by two companies, responded by rally bound, which is peer-to-peer fund-raising for runs, walks and rides and also welcoming new sponsor t brc cost recovery. Getting your money back from phone bill errors and omissions and i have a little more to say about both of them toward the end. Um, denny, you don’t mind if i call you danny wright is not to be professor elliot does it? No, denny is fine. Tony. Thank you. That you edited this book. How how does that work with you? Everybody else does all the rating, and then you just say we need some commas and paragraph breaks. How does that work when you’re oh, i wish i think it would look like actually, after editing some books and writing some books on co authoring some books, i i’ve decided that that actually being sole author of a book is probably the easiest route out of all of those. How does this work? Yeah, well, with editing a book, basically. Ah, the editor, you know, is in charge of the overall theme and the big idea of the book, as you know, an ethics of asking. There are a variety of chapters on different aspects of fund-raising, including plan giving and prospect research and and, uh, friendraising, i think, is what i call it, but the right and so as editor, i was sort of in charge of the overall idea finding the right people, teo, to write or collaborate with me on specific chapters and ah, and then actually, the tough part is getting them to get things done on deadline, and then no writing the writing, rewriting and revising chapters so that there was, you know, kind of a flow to the book so that it feels like the chapters go together even though they were written by different people with different backgrounds and different ideas. Okay, i did get that feeling alright. So that’s your responsibility as the editor, i thought, thea, i thought the company that i thought the book publisher would do that for, you know, that’s you no book publishers don’t do too much these days except actually get them out and with any luck to a little marketing. Okay, um, we’re this fund-raising that we’re talking. About fund-raising is essentially building relationships, so your concerns they’re around how or some of your concerns around how professional fundraisers are going about that. Yeah, you know, and that that happens in so many different levels. I’m thinking, all right, for example, was planned giving that no, i most fundraisers would really like to tap into, uh, into funders who have an opportunity to buckley’s states or, you know, some of substantial, uh, capital or or property, and that is usually brokered by by an external third party. You know, an investor, an attorney, somebody who is both represents the interests of the giving client as well as works with split with potential sites for the gift. And so, you know, hell of what the relationship is between the organization that serves to benefit and the the middleman, the third party there is often a point of conflict prospects. Research can can be a an ethical issue in that i know from, uh, from my days not just at this institution, but other institutions of higher education that i never met with a potential donor without having a whole dossier on that on that donor andi on what are development office had decided the person was capable of giving on much personal information regarding that person, and and i always felt a little uneasy in that it was not clear to me. I mean, it was clear to me that that that as an agent on behalf of the organization, i certainly shouldn’t say mr so and so, you know, i don’t know if you are aware that i’m aware of, you know, of your three divorces, et cetera, et cetera, you know, i mean, i knew better than to do that, but at the same time, i thought, you know, what would he think if he knew that i had all of this information on him and was just not telling him that i had it? So that’s the prospect research level, and then there is the relationship level? Aziz aziz, you know, people give to people, and so the idea of building a relationship with potential givers is an important piece of it. But i think it’s really easy for for potential givers to misunderstand the intentions of a fundraiser, i think it’s easy for fundraisers to move into what i would call a seduction phase and that may or may not be true sexual seduction, but but the but the move from fund-raising where the giver potential giver and the development person are both working with common interests for the organization is a different matter, i think, ethically speaking, than a situation in which the fundraiser is trying to woo the potential. Geever wow, there’s so much there that you just laid out planned giving is the consulting that i do and have done for sixteen years, prospect research way have a regular contributor on the show. We talked about prospect research once a month, maria simple and the relationships you know, that is hitting home because i’ve been a fundraiser for sixteen years and buy-in planned giving you no, you deal with people who are often in their seventies eighties and often we don’t or widowers, um and, you know, sometimes it’s, it’s, it’s hard, i mean, i’ve been, i guess let’s talk about the last of the three things that you just laid out that’s, the one that hits the home it’s almost poignantly for me. Bonem you know, i’ve been in in lunch situations i don’t like to i don’t like to meet prospects over dinner and andi, i know that we’re going to talk about language, and that term prospect is a little off putting to you, and we’ll get to that. So i’ll say so. I’ll adopt your language on dh say i don’t like to meet donorsearch prospect, potential donors over dinner. It’s just something you know, that evening hour just feels like it’s over there over the line from a sow, but i do like to intimate yeah, that’s right? Dinner is more intimate can be and you wantto eliminate any possibilities of that. So always lunch. But i do like doing over meals. I do like meeting latto potential donors over meals and clients over me like that because there’s a shared were sharing, we’re sharing a space were sharing a meal we might depending on the person we might actually be sharing an appetizer sometimes that’s not too often, but sometimes so there’s that sharing of the physical space and the and the activity around at the other physical space also it’s a flow that we all know, we all know that the server is going to bring water and then i’m going, i’m going to always ask for water with no ice because that’s my, you know, so, but once we get that over, then the server is going to leave us with the menus, and we’re gonna have a few minutes and then we know the servers going to come back, and then the stuff is going to bring the starters, and then the servers going toe clear those and bring the entree and we’ll, you know, we’ll have about five minutes or seven minutes or so between the starters and the entree starters ending in the entree. So there’s a there’s a a common understanding of the flow, as well as the sharing of the space and sharing of the meal, right? And what? And actually one of the things that i’m hearing you say in this and if you don’t mind sort of picking this a part of it, but the but there are a couple of things that’s going on that are going on there, that when you’re in a situation in which you’re, you’re asking some buddy to do something that they don’t have to do, which would be a potential donor, that that one of the things that that you’re that you’re doing is setting up a scene that has a comfortable and known flow in ritual, and so the idea is that is that is that you don’t have neither you nor the potential donor have to think about the context, and so it creates comfort and and i’ll say it shared intimacy in the fact that you’re both comfortable with that. Now, if you’re meeting somebody over a meal who is coming at at this from from a different culture where it may be that that the rituals are not quite the same or a little at odds, um, it would be fun and exciting, but it’s going to be a different feel than something where you know, where you’re meeting with somebody from your same culture and where you know that the ritual is is well known. The other thing about meeting over a meal is that there is something no metaphorical and symbolic about the idea of eating, of nourishing one another. If you’re picking up the check, you are certainly nourishing, you know, you’re feeding that that person and that that is, um it is a highly symbolic act of, of nurturing and caretaking and so what you’re what you’re doing is showing the potential donor that that you’re going to take good care of her, you know, in the process of this transaction, you’re also making a very strong point that this is not it’s, not a business meeting. I mean, if i need to sit down with somebody and i know that there’s something difficult to talk about a meal is really not the place to do that well, okay, now, something difficult that requires privacy, right? Although i would say in new york, i know some restaurants that have quiet spots but still might still the potential donor or the donor, but i might even be thanking someone, so it might not be asking someone to consider gift, but i might actually be thanking someone on behalf of the client, but but, yeah, there are situations where i wouldn’t but yeah, and if it’s, if i know it’s gonna be a difficult conversation, then i wouldn’t do it in any public place restaurant otherwise, but i think you can do business. You said it’s, not a business contacts, but i think you can do business over a meal. You don’t think so. Handed business over a meal, but it’s a different but it, but it creates a different kind of of interaction and different kind of relationship. I’m just as an example, if i have a graduate assistant to or a graduate student who is obsessing over her thesis at the moment and this in a tough spot, i’m very likely to take her for a cup of coffee and we’ll sit and have a cup of coffee and talk about the situation, but just the fact that i’ve gotten her, you know, in a company in a comfortable place, i’m nourishing her, giving her, you know, getting her a cup of coffee, and we’re sharing that that sustenance together is going to create kind of an openness and a readiness that is different than if i’m meeting with a student about a problematic grade in my office, you know, there’s that i’m creating a different context, and so when i want a student to sort of relax and the opens and, uh, you know, i have be more ready to listen to what i have to offer. I’m going to feed them something? Yeah, okay, that’s what i’m suggesting you’re doing. With potential donors, yeah, you’re suggesting that i’m duplicitous that i’m no, no, okay, i know it sounds like i’m a little like i’m a little devious, this is no, okay, i mean, i do think that fund-raising get get friendraising gets devious, and i really would like to talk about that specifically, but don’t take it since i’m not a marine, and i know i’ve been called that for some devious, no, but but it sounds like you’re suggesting that some people do it for a different reason than the reasons i’m suggesting i do it. Actually, i’m suggesting that you’ve got all the right instinct. What i’m saying is that this is some of your behavior, so wait say that again, i’m sorry. What say it again? I don’t know what i’m saying is you have all the right instincts, the fundraiser that you want to get the potential donors someplace where the person feels relaxed and comfortable sharing something with you and is getting something from you, which which which automatically that creates a response of giving back? Yeah, that’s the part that i don’t think of the that i’m giving to them really with the organisation’s. Dollars? I’m not the one personally picking up the check, but that’s the part i’m not thinking of that i’m giving to them so they should be giving back. I think this, you know, does this come down to character? Some people might some fundraisers might take people out for meals with that intention with that thought that i’m giving to them, they need to give back so it doesn’t just come down to personal character. How s it? No, i excited. I don’t think so, because and i think and i think that what you’re saying is is that you do it just because you’re a naturally good guy, which i certainly believe you are and that and that that’s a matter of character. Where is people who do this intentionally to manipulate the donor? You know, get the donor glass wine letter, you know, feel, relax and, you know, and so on that maybe there’s something that shows less character in that i would say that every phone great fundraiser has the responsibility to think about how every professional act is perceived and or is likely to be understood by the potential giver that’s very helpful, i think. We have we have just a couple minutes before, before we take another break, i would. We solicited questions from listeners, and we got a bunch. I’m goingto i’m going to throw one at you from that we got from facebook. This is kelly on facebook. You’re in the middle of a capital campaign, and the organization’s plans change. Your executive director thinks the changes are no big deal. Do you notify donors who committed funds to the original plan or follow the executive director’s lead, which would be keep it quiet. Well, first of all, i think that i would wonder about an organization that that changes something significant in a kapin radcampaign midstream that no one hopes that a campaign doesn’t get announced until about fifty percent of the money is raised or pledged, and that no, that that pretty much every every detail has been tested out. Ah, in-kind on a variety of audiences first, but but okay, but so you find yourself in that situation, i think that that that any donor that has made a contribution that if the, uh, thean tense abila donation can’t be met, that there is unethical and probably in most places, a legal obligation to make it clear to the donor how things have changed and obviously moving forward, you need to be honest about where things are now and where they’re going. We’re going to take a break when we come back. Tony’s take two got some live listener love and more conversation about the ethics of asking with durney eliot, stay with us e-giving didn’t think dick tooting good ending things, you’re listening to the talking alternative network e-giving get in good. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications? Then come to the double diamond wellness center and learn how our natural methods can help you too? He’ll call us now at to one to seven to one eight one eight three that’s two one two seven to one eight one eight, three or find us on the web at www dot double diamond wellness dot com way look forward to serving you! Hi, i’m ostomel role and i’m sloan wainwright, where the host of the new thursday morning show the music power hour eleven a m we’re gonna have on shine the light on all aspects of music and its limitless healing possibilities. We’re going invite artists to share their songs and play live will be listening and talking about great music from yesterday to today, so you’re invited to share in our musical conversation. Your ears will be delighted with the sound of music and our voices. Join austin and sloan live thursdays at eleven a m on talking alternative dot com you’re listening to the talking alternative network. Durney hi, this is claire meyerhoff from the plan giving agency. If you have big dreams but a small budget, you have a home at tony martignetti non-profit radio. So glad to be back in the studio because i can send live listener love new york, new york, new bern, north carolina rest in virginia, houston, texas live listener love out to u k beck is checking in we got montreal and palma role maybe i pronounced that very badly, but you’re in quebec if your income back and you’re not in montreal. Yeah, that’s the name that’s the year that yours is the town that i’m trying to pronounce. Welcome, of course we’ve got listeners in china chung ching shanghai ni hao, seoul, korea always checking in always appreciative of korea annual haserot and there’s more live listener love coming tony’s take to my block this week is five reasons to promote the ira roll over now for your donors and potential donors who are seventy and a half years or older. This ira gift opportunity ends on december thirty first. It’s been extended a couple of times, but i wouldn’t bet on congress for any purpose, including charitable giving being extended, so i’m not too optimistic that this would be extended again. So let’s assume i’m assuming with all my clients that it’s going to end on december thirty first. It’s. A very easy way for donors who are the right age to make their year end gift to you. It’s. Very easy to promote, and i’ve got promotion ideas on the block. It’s also easy for donors to execute. They just fill out a simple form that there are a custodian, has. All they need is your organization name, address and tax i d number and that’s, part of what makes it so easy for you to promote. Not a lot of explanation. If you have potential donors who are the right age, i suggest you work the ira e-giving opportunity into your year end fund-raising plan and there’s a lot more detail on that. On my blogged at tony martignetti dot com, that is tony’s. Take two for friday, fifteenth of november, the forty fifth show of this year. Denny, do you mind if we take another listener question? Of course not. This came from booster advisor on twitter. What are your thoughts on hosting fund-raising event for people you don’t know who experienced a tragedy booster advisor, the person maybe thinking about maybe people in the philippines or something like that, any issues around raising money for people who you don’t know who you know of suffered i, uh, you know, and i’m not exactly sure what’s behind the question, so that may take a couple of different stabs at it, i think it’s fine to raise raise funds for people who have experienced trauma, traumatic events, wherever they are in the world, and i i think that that there are often questions about how those funds are being managed both in country as well as in the process of getting them from donors here. So i mean, so assuming that that the management details are worked out, i don’t see a problem with doing that. Uh, so i guess i’m kind of searching for what other? What, what other ethical issues there might be? Okay? You don’t you don’t really see this as that much of ethical. Issues, i mean, that the way the medal i see that the management problem management and legal in terms of management of funds that are intended for charitable purposes, the law has a fair amount to say about that, okay, right, right and well, and i know i’ve done not very popular work on breast cancer charities and how how money money is, well, how it doesn’t support services that are being implied, although maybe not, and not specifically said, and how, uh, breast cancer charity websites make it very easy donate and very difficult to find services. So the, you know, i think that that that one can raise money legitimately for any number of things. But i think that the process of fund-raising encourage an obligation to the potential donors that that money is going to be managed appropriately as the donor’s intended, and that the donors are very clear on what percentage of the money is actually going towards the charity as compared to take administrative cost. Talk about this use of the term prospect which, as i mentioned you, you have you have a chapter in the book devoted to language. What is it about that? Term that turns you often, and you prefer a potential donor. Well, it sounds like mining on, and i think that that when we, when we separate people by a label, whether we call them human subjects, i also do a lot of writing on research ethics and when we refer to people as human subjects that we’re putting them in a class that’s different from, um, no, those of us who are doing the research, those people who are actually doing the work and when we talk about potential people who are potential donors as prospects that that again, we’re setting them off it’s been in the class that that makes it easier to do things to them that we wouldn’t do to our appears for our family members are so sort of objectifies them exactly there no longer people were going that farm, and wei will know that there’s still people on? Yeah, i mean, like i was thinking of your human human subjects, we’re not referring to them as people were medical researchers going them human subjects, but in fund-raising i don’t know, i think, were warmer people over here on the fund-raising side than the medical. Well, you know, and be really honest, a lot of the work that i’ve done on on problems with charities and nonprofits and social service agencies start with the premise, but when people think that that they’re doing good things because they’ve got a really good and that they’re working towards that is raising money for an important cause that that that’s when the warning bell should begin to go off because we knew organizations traditionally don’t take a careful look at charities or fund-raising because, you know, it all sounds like it should be warm and fuzzy and the thing and it’s good people doing good stuff for the good of society. I mean, how many goods can you get in one sentence? Now, i believe that that people who do development work and i believe that people who work in non-profit tend to be pretty good people because they’re not in it for the money, so i didn’t appreciate that, but, you know, but it’s, the whole path to hell is paved with good intentions. That gets to be a problem that when folks think that they’ve got a really important end that are really important, you know? Cause that they’re trying to support sometimes they then the rules just because they know how, how good and important the causes that they’re working for. It’s it’s kind of an ends justify the means argument there’s a line in the movie the big chill that rationalizations are more important than sex try to get through the week without a good rationalization. You’re s o yeah, stretching the rules for a very good cause. When we’re talking, maybe about you mentioned breast cancer or hunger, we owe our working with disabled it’s it’s it seems pretty easy to do right well and and let me know you had said something before break about about whether i was at saying that you’re a devious, which i wasn’t in that case, but but let’s talk about deception for a minute, just because this is one of those areas where in my work over the years with with development folks and, well, fundraisers from from various sectors, not just higher education that excuse me, start that, that this is one of those areas where people think, okay, they’ve got a potential donor, and i’ll just bring an example that that just comes to mind from a capital campaign is a matter of fact. Some some years ago, so there was a ah a ah, a donor potential donor providing a whole lot of money for for a university to have a building built that would carry her her husband’s name, her dead husband’s name. And you know, and that was great. That was all. Everyone agreed completely with that. But this woman also really, really wanted a family fountain in a particular spot on campus. Well, they, uh the that the fundraiser working with the that actually they were more than one fun, but the development people who were working with this potential duitz donor i knew that in the no long term scale of things, that that where this woman one of the fountain was not going to be was not going to last more than about ten years, because if you look down the line, you know, there were other buildings that were going to go up on campus and this pristine spot that she loved and her husband had loved. I was not going to be that christine spot anymore due to the age of the donor the folks at the university this decided that that this particular donor would most probably be long gone by the time you know, the campus changed in a way that would make her unhappy. And so they decided that it was safe just to let this this potential donor believe what she wanted to believe. I find that unethical because, again, this woman is it was doing something that a super aga, torrey it’s something that is that is ethically ideal to use different language, she’s doing something that she doesn’t need to do. And i think that there’s a special obligation of the organization that would take her money, um, to make sure that she knows and really understands everything that she would find relevant to the giving of her gift. Damn, i think i would i don’t know that one that one really shakes me. I i would like to think i would quit over that if i was on that development team, and we were told not to reveal that the fountain isn’t going to last more than ten. Well, but why? I mean, she’ll never know the difference. It’s just wrong you she why tryto be more a little more articulate, that’s just wrong because she’s making a gift under under a set of assumptions and conditions that that the other side knows are false. That’s why it’s it’s almost. I don’t know if it rises to the level of legal fraud in the definition of fraud on statutes, but i know it gets pretty close to me if it does. If it doesn’t exceed that it doesn’t cross that line, i think that’s ah touching on fraudulent well, actually, and the the and the way that it was laid out in this particular situation. I mean, thie the building was going up with the husband’s name on it, and it was going to be a lovely building. And i know a lovely and permanent mark on campus for sure the fountain was by far, you know, a smaller, you know, seemingly incidental, not very important gift, at least from the university’s point of view, and they know they were going to put the fountain in. They just knew that the that the woman thought that the fountain would live on forever. You know what? Where they’re understood it wouldn’t yeah, they know something that the woman doesn’t that’s. That’s that’s ah, meaning in contract terms to me that’s a material term that the organization is omitting now i’m taking it out of the ethical and putting it in the legal. But to me that’s a material term that they’re omitting like to me, that would be the same as you’re renting an apartment and there’s is there’s lead paint on the walls and you don’t reveal that that’s that’s. Okay, gideon, this scenario because it’s the same kind of issue that comes up but it but it’s a very different set of facts. So we have another donor and the the ah ah, the donor, you know, wants to give money for the university, and it understands to be kind of old school and, uh, really doesn’t believe in co ed dormitories. Now, for any number of reasons, the university knows that no, that before long, even though there’s no specific thing on the books right now. But before long, all the all the dorms on the university will be co ed. And so no again does that is that information that has to be given to the the potential donor, you know, it’s it’s a change that that every university is making and some folks, in fact, some people at the particular university i’m thinking of. I said, well, you know, we can’t deal with all of the prejudices of all of our donors. And we can decide what’s relevant for the donor to know and what’s not. We got to go away for a couple of minutes more. Danielle. It stays with us, and i hope that you do, too. You’re listening to the talking alternative network. Are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. Dahna have you ever considered consulting a road map when you feel you need help getting to your destination when the normal path seems blocked? A little help can come in handy when choosing an alternate route. Your natal chart is a map of your potentials. It addresses relationships, finance, business, health and, above all, creativity. Current planetary cycles can either support or challenge your objectives. I’m montgomery taylor. If you would like to explore the help of a private astrological reading, please contact me at monte at monty taylor dot. Com let’s monte m o nt y at monty taylor dot com. Talking alternative radio twenty four hours a day. Dahna podcast pleasantries going out to everybody who is listening to the podcast, wherever that might be from whether it’s, itunes or or elsewhere. There’s podcast dot d lots of people listening to the podcast in germany wherever you might be listening to the podcast pleasantries out to you more live listener love pompano beach, florida tustin, california welcome, andrx, les france i hope i did that well, bonsoir we’ve got germany listening live you’ve got kuwait listening live you got the netherlands listening live and i did come back yes live listener love to all our live listeners podcast pleasantries wherever and whenever you might be listening to the time shifted show denny, i’ve got some more, some more this inner questions that came in i got one from this’s from rory asking about corporate branding. How much of a charity’s brand is it ethical to sell? She puts selling quotes to accompany we might be comfortable with logos and branding at fund-raising events. But to corporate logos have a place in, say, university classrooms. Yeah, i think that’s ah, that’s. A really good question. And i would come down to me particularly are now just at ticket from hyre. Education, although i think we’re going extrapolated from that. But i think that the core mission of an organization and i know that’s what sound naive, but i think that that should remain pure in a certain way. That is that one should be able to conductor the mission of the university without having corporate brands on everything associated with the mission. But that is okay, teo, to brand things that air external here’s an example at my university in my department next year, we are starting a new graduate certificate program and food writing and photography. Now we are not selling the sponsorship of that program, but at but we do have an annual food conference of no culinary of communication conference that’s associated with that program that’s open to the community every year, a half day seminar and that we definitely are seeking sponsors for and so if there is, i think, a sense of ancillary sponsorship, but now, but it gets complicated because if we look at breast cancer charities no, it again, a zone area of where i’ve done some particular research that we have situations in which which some breast cancer charities exists because of their, you know, their corporate sponsorships and the relationship between the charity and the corporate sponsor becomes so tight that individual donors are often left out in terms of not understanding the importance of people, giving in a true philanthropic way that is now just to promote the common good. And that sometimes folks in need of service is that air being touted by the charity get left out as well. Have a related question about taking donations from organizations that are not not in direct contradiction to your mission but still have or may be perceived to have negative impact on society, the person asks says there are some cases that are obvious, like cancer charities not taking money from tobacco companies. But what about navigating gray areas on dh like arms manufacturers, pharmaceutical companies? She also suggests oil, oil pipeline companies are there right ones issues around us. Yeah, i think that that again gets problematic and the mawr complicated or society gets the more problematic it is. I do appreciate cancer charities that that no won’t take tobacco money, for example, but at the same time if they take pharmaceutical money from certain pharmaceutical companies, pharmaceutical companies are owned by chemical companies, which released carcinogens into the air. And so the question is of like, well, how far back are you willing to go? And i think that really what it comes down to for many organizations, is that it’s a matter of public perception, that if there’s no, if we can’t cancel charity doesn’t want to take money directly from eddie ah, now an organization that’s known to be cancer causing. But if you take it back one or two generations in terms of of no corporate ownership that nobody knows, i think that that’s not okay, um, i think that, um, that there should be limits in terms of of, um, of no donations that people take, but i think that that needs to be stated, because when we come to individual donors in my experience, uh, fundraisers and charities are quite willing to take money from folks, whether they, you know, just want to give out of the goodness of their heart or whether they’re giving for the tax break or whether they’re giving to, you know, re pay back some private since so so if an organization is going to refuse money on the basis of, uh, of how that money was made. I think that that needs to be stated clearly and transparently. We have to leave it there. Durney eliot, director and professor in the department of journalism in media studies at the university of south florida st petersburg durney thank you so much for me. Yeah. Funnel by your lunch. It’s been a real pleasure. No, no, no, i’m not i’m not putting myself in a compromising situation. Thank you very much. Thank you. Next week, karen wooster is executive director of wreaths across america. They have grown their volunteer support enormously by being hands off and supportive. We’re gonna talk about you’re building that volunteer base. Maria simple is back. She’s, the prospect finder and our prospect research contributor. We’ll talk about the disk assessment tool to figure out whether your potential donors are dominant influencing steady or cautious disc. Personally, i’d like to be all for those. So i wonder if i can manipulate the assessment. Our sponsors rally bound is a sponsor. They make simple, reliable peer-to-peer fund-raising software friends asking friends to give to your cause. You get a discount as a non-profit radio listener you can find them at rally bound dot com or just call and talk to joe mcgee he’s the person who will answer your questions and give you advice on setting up your campaign. And i’ve met their ceo. I’ve told you before shmuley pinson, you can reach them as i said, rally bound dot com or triple eight seven six seven nine zero, seven six welcome to t brc cost recovery our newest sponsor, youself rabinowitz, is ceo there, so we have ah, sponsors yourself wuebben with smelly pinson. Sam labbate liebowitz on the board muzzle toph, i love this. Yo steph! What he does is we’ll go over your past phone bills looking for mistakes, and when he finds those mistakes and he does over ninety percent of the time, then he fights the phone company to get your money back, talking about errors, services you didn’t order and what all you also finds is well above market pricing and gets you the money back and you only pay him if he actually succeeds. If he actually gets cash back, otherwise you don’t pay him. I’ve known yourself for close to ten years and i have many times referred. Friends and clients to him, and i’m very comfortable referring him to you, it’s, tb, r si dot com or two one, two, six, double four, nine, triple xero, which could also be six, four, four, nine thousand, but i like two one two, six, double four, nine triple xero. Our creative producer is claire meyerhoff. Sam liebowitz is our line producer shows social media is by deborah askanase of community organizer two point oh, and the remote producer of tony martignetti non-profit radio is john federico of the new rules. This outstanding music you’re hearing is by scott stein. I hope you’re gonna be with me next friday, once, two p m eastern at talking alternative dot com. E-giving denting, tooting, getting dink, dink, dink, dink. You’re listening to the talking alternative network. Get in. Cubine are you a female entrepreneur? Ready to break through? Join us at sexy body sassy sol, where women are empowered to ask one received what they truly want in love, life and business. Tune in thursday said. Known eastern time to learn timpson. Juicy secrets from inspiring women and men who, there to define their success, get inspired, stay motivated and defying your version of giant success with sexy body sake. Sold every thursday ad men in new york times on talking alternative that calms. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com way. Look forward to serving you. You’re listening to talking alternative network at www dot talking alternative dot com, now broadcasting twenty four hours a day. Dahna i’m the aptly named host of tony martignetti non-profit radio. Big non-profit ideas for the other ninety five percent fund-raising board relations, social media, my guests and i cover everything that small and midsize shops struggle with. If you have big dreams and a small budget, you have a home at tony martignetti non-profit radio friday’s wanto to eastern talking alternative dot com. Are you concerned about the future of your business for career? Would you like it all to just be better? Well, the way to do that is to better communication, and the best way to do that is training from the team at improving communications. This is larry sharp, host of the ivory tower radio program and director at improving communications. Does your office need better leadership, customer service sales, or maybe better writing, are speaking skills? Could they be better at dealing with confrontation conflicts, touchy subjects all are covered here at improving communications. If you’re in the new york city area, stop by one of our public classes, or get your human resource is in touch with us. The website is improving communications, dot com, that’s, improving communications, dot com, improve your professional environment, be more effective, be happier, and make more money improving communications. That’s. The answer. Dahna hyre

Nonprofit Radio for November 8, 2013: Getting To The Next Level

Big Nonprofit Ideas for the Other 95%

Sponsored by RallyBound peer-to-peer fundraising for runs, walks and rides.

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My Guest:

Laurence Pagnoni: Getting To The Next Level

Laurence Pagnoni largeLaurence Pagnoni is author of “The Nonprofit Fundraising Solution.” Based on his work as an executive director and fundraising consultant, he has proven strategies to get you to the next level of fundraising revenue.

 

 

 

 

 

 


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Hello and welcome to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. I’m your aptly named host. Oh, you know, i hope you were with me last week. I’d suffer falik yah leitess. If it came to my attention that you had missed priscilla rosenwald, author of when leaders leave, she talked us through her smart tips to plan and execute smooth leadership transitions this week, getting to the next level. Lawrence paige nani is author of the fund-raising the non-profit fund-raising solution based on his work as an executive director and fund-raising consultant, he has proven strategies to get you to the next level of fund-raising revenue halfway through the show on tony’s take two i have a charity registration reminder for you. I’m wagging my finger. We’re sponsored by rally bound, simple, reliable peer-to-peer fund-raising software rally bound dot com i’m very pleased that lawrence paige no knees book and his work bring him to the studio. He has spent twenty five years in the nonprofit sector and was an executive director of three non-profits he’s been a faculty member at the gnu heimans center for philanthropy and fund-raising we’ve had guests from there. And the coach is a group of executive directors with the rutgers business schools institute for ethical leadership. His book is the non-profit fund-raising solution. Powerful revenue strategies to take you to the next level. Lorts back. Tony, welcome to the studio. Thank you so much. I’m glad to be here. It’s. A real pleasure to have, you know, i love having live in studio guest. It just makes it that much more special. Congratulations on the book, it’s. Just it’s out this month, right? Yes, just a few weeks ago. And and delighted it. Dafs has robust sales so far. Excellent. Very good for you. I have to ask you this. I’ve wondered about this since i first saw your name, which is years. Why isn’t it panjwani wipe agnone? How did you i’m not martignetti why did you? Somewhere along the lineage, you went to pack no knee. Well, had that happened? It’s, my grand. My grandmother would like your question. It’s, lorenzo, antonio peggy oni that’s your your it’s, like a little birdie operate you’re you’re ah, expression of it is accurate. And but, you know, in american vernacular gets paige no knee. I hate that. I hate that your grandmother would love the pan uni i was a beautiful name. It is operatic. Um, the non-profit fund-raising solution. What is the problem? Well, under capitalization of the sector plagues more than seventy seven percent of non-profits they have a vision, but they don’t have the money to implement it. And many organizations spend years on a plateau under two hundred fifty thousand dollars trying to execute their vision for some small non-profits ah, humble budget is more than adequate and they’re doing good services and they are meeting their vision so don’t mean to imply that you need money too do your work and they’re amazing volunteer organizations. But for those organizations that that need money, i wrote the book in that spirit of trying to help them tio, to go to the next level which is such a ubiquitous question. I mean, i get that a lot on dh. I work only really in the planned e-giving and the charity registration niches. But even i am asked a lot, you know? How do we get to the next level? Can you help us get to the next level? So there are a lot of organizations that do want to go to increased fund-raising revenue it’s the number one question i get when i give seminars or oppcoll public trainings, and somebody inevitably will wander up to that micah’s i say in the introduction, and and ask me, how do you get to the next level? And on the one hand it’s a poetic question, but on the other hand, it’s for my sensibilities, it’s a business question with mathematical methods behind it, and the book tries to explain, um, that if you get your leadership understanding the vision for what the next level looks like if the board supports that vision, if you think about hyre level strategies and you work on changing the culture of your organization so that the organisational development matches that vision that’s the foundation there’s four aspects are the foundation for going to the next level, and then the rest is tactical most fund-raising is tactical. The strategy comes from the organization, and we’re gonna have time to talk about the organisational development as well as the strategies and tactics were because i love that we have the full hour together, so the symptoms of this problem are mean. Ah, event to event fund-raising or maybe sole source revenue streams? Yeah, most foundation grants have ah, three year limit. There are some exceptions to that, of course, places like the robin hood foundation, which see themselves as long term partners. Um, but event to event without any cash reserves. Um, and some organizations just go year two year like that and and and make do and with a little bit of luck and and providence, they they squeak by, but it’s hard to plan having an impact on your mission and on the sector, the the field of service, if you will, that you’ve chosen if you really want to help at risk kids, i have a better chance at getting into college or getting the right on the right employment that’s a great example, because it’s exactly it’s for you you do have to plan for years that’s a life cycle of a child. And if you’re you know, as you say, just getting by year to year, how can you plan for that child’s future? You can’t. You can’t plan for your own that’s, right? Um, do you think that since we see such a reliance on events i have a theory i don’t, but you khun you’re free to disagree that the reliance on events is so that people can avoid what they fear, which is having to sit across the table from someone and looked him in the eye and ask them for a gift. Well, it’s, funny as best as i understand it, and i’m always learning events were buy-in the history of them goes back to having an opportunity to thank your individual donors, they weren’t actually fundraisers unto themselves, and then they course morphed into that when in fund-raising when the event ah, is linked to individual giving and get in to get the individual giving program, they always raise more money, because the point is that the twenty percent of your individual donor base who gives eighty percent generally on your revenue since the recession, we see it’s maybe seventy, thirty um they need to be talked to individually and thoughtfully, and having tough conversations with donors is part of that territory, and i think a lot of people are, um, are shy about that. Money, of course, is one of the great taboos of life and so it’s fraught with ah, emotional issues. Um, you allude to cem cem research done by stanford about the dominant revenue source? We’ll flush that after us. Sure. Well, you often hear people say that they need a diversified revenue base. Yes, and i’ve heard that for years as a fundraiser, and as in the former executive director, i used to worry about how much time and energy that talkto have more than one or two revenue streams. So a few years ago, stanford university ah did research on one hundred and forty hundred forty one non-profits that that had gotten over the fifty million dollar, more annual budget, what they discovered was a surprise that those organizations generally had a dominant source of revenue and possibly a secondary source of revenue and wasn’t as diversified as smaller non-profits but they also said that smaller non-profits still needed to diversify until they got to that plateau ah, when or they got to that level, when they could break through for a dominant source of revenue. And the reason this is interesting is that those non-profits that got over fifty million, they knew everything there was to know about that dominant source of revenue if it was individual giving, say, for example, habitat for humanity. Their dominant source of revenue is individual giving, followed by in-kind donations, followed by foundations. They knew everything there was from about individual giving from ah, there, first acquisition, to plan giving and the whole continuum within those two ends. Yes, um, we are going, tio, take a break, and we’ll of course, continue with lawrence, and we’ll talk a little more about the the inflexibility that we’re talking about now and that sort of tradition of of dominant source giving. But then we’re gonna move on, and we’re going to talk about what it takes for the organization, too. Develop within before he can get to the next level. So hang in there. Talking alternative radio twenty four hours a day. Do you need a business plan that can guide your company’s growth? Seven and seven will help bring the changes you need. Wear small business consultants and we pay attention to the details. You may miss our culture and consultant services are guaranteed to lead toe. Right groat. For your business, call us at nine. One seven eight three, three, four, eight six zero foreign, no obligation free consultation. Check out our website of ww dot covenant seven dot com are you fed up with talking points? Rhetoric everywhere you turn left or right? Spin ideology no reality, in fact, its ideology over in tow. No more it’s time. Join me. Larry shot a neo-sage tuesday nights nine to eleven easter for the ivory tower radio in the ivory tower will discuss what’s important to you society, politics, business and family. It’s provocative talk for the realist and the skeptic who want to go what’s really going on? What does it mean? What can be done about it? So gain special access to the ivory tower. Listen to me. Very sharp. Your neo-sage tuesday nights nine to eleven new york time go to ivory tower radio dot com for details. That’s. Ivory tower, radio dot com e every time i was a great place to visit for both entertainment and education. Listening. Tuesday nights nine to eleven. It will make you smarter. Hey, all you crazy listeners looking to boost your business? Why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com oppcoll welcome back to big non-profit ideas for the other ninety five percent. Lawrence paige nani is with me. He is the author of the non-profit fund-raising solution. So before the break, we were talking a little about thiss dominant source so they knew their dominant source and maybe a secondary source very well. So it’s so it’s not so bad. Teo teo, be focused that way. No. Ah, it turns out that that that there are different levels in every revenue source of from an average level two quite skilled level. What they had a have, of course, in their dominant source of revenue was they had to have deep and abiding expertise. Ah lo, staff turnover amongst the fund-raising staff was very important for those organizations because the institutional memory of with their donors had to be preserved. It’s called development for a reason it’s a developmental process. So if you’re walking the walk with a donor through their lifetime of giving, if they get comfortable with a fundraiser, the chances of that fundraiser being able to raise more money are much higher now. Of course, that’s that’s ah juxtaposed to the chronicle philanthropies article this past year, which showed that the turn of the dissatisfaction amongst fundraisers with their organizations was extremely high. Yes, and i we talked about that on the show. Did you? Yeah, i was distraught to hear that. And because fund-raising is a noble profession, and when it’s not respected, the process is not respected than people expect returns too fast. Or they expect the fundraiser toe come in with donor’s ready to g o without having to cultivate them for your mission. And these are very irrational ideas dominate the conversations around fund-raising but it’s called development for a reason, and those non-profits that god above fifty million that had a dominant source were they had a patients to their culture, and they respected the cultivation process and they closed, you know, on on major gifts much more frequently than those that didn’t have that culture. What was the first organization that you were executive director of? Oh my, it was a soup kitchen for the homeless in richmond, virginia. And i’m guessing there are a lot of lessons you learned there. Oh, my goodness. I i on the in the book, i tell the story of how i forgot about the board. No, i didn’t. I didn’t technically forget about board. I attended board meetings. I prepared my reports. I i had the board book ready and met with the committee’s when they needed me, but in my soul they were superfluous, and what was really important was getting the programme metrics right and getting the fundraising going. But i came to see how the board ah, in my second executive directorship, here in new york, at harlem united, i came to see how the board khun give the organization a gift that the ceo cannot, which is the gift of longevity and survivability, and that great word that we use in the sector sustainability. So in your experience in west virginia, richmond in virginia, at the soup kitchen, were you sort of dragging the board along as you as you worked on the metrics that were important to you or you would just take kicking them was more my style. Okay, so clicking from behind? Well, there was the italian radio, the italian, more likable bull in a china shop. But ah, the urgency was, of course, that homelessness was extremely bad. The single room occupancy hotels in richmond, virginia, were closing. Ah, at a rapid rate, and the homeless shelters were were increasing. So we had a profound sense of urgency, and then right in the middle that the aids epidemic was becoming clearer to us. And so there was this sense of urgency, and we in fact founded three different organizations. Ah, as spin offs to to our non-profit but i came to see the value of board leadership and bored endorsement and and to recruit people that did add value. Not everybody is meant to be a boardmember and i had made the mistake of just recruiting volunteers that had a passion for the board without necessarily having the business talents. And skills that i needed to fulfill the mission that we were we were aimed at over ten to twenty years, and we’re going to talk later on about one of the opportunities that you’ve identified leadership counsels for maybe the type of people that you’re talking about not suitable for the board but have interest and passion. And so there may be another role for them. Yes, so let’s talk about the board now the board has to metoo it’s essential at the board be developed before the organization is going to get to the next level? Oh, yes, ah, a lot of ceos inherited inherit aboard when they take a job that isn’t necessarily up for the task, and they wait on the sidelines for something magical to happen with that board, and they don’t necessarily see themselves as an intervening variable to bring the board to the next level themselves. But i recommend in my book that they do see themselves as part of the change process for the board by meeting personally with board members by recruiting people who have the skills and talents that they be delighted to have in leaders and that’s not all. They’re not always easy processes. They take time, but you’re trying to develop a shared vision on the board, exact between the executive leadership and the the ceo executive director and the and the volunteer leadership that’s. Right? This could take a long time to align a vision. It can, but there are plenty of examples where it happens rather fast. I mean, the board share one. The board in richmond, virginia. The board of harlem united here in new york. They were united around the being thought leaders in the field of of ah, innovative health care for people who fell outside the health care system, the homeless and indigents. And they they i saw their revenue streams from the government, both federal and state, as needing to be reformed so that they could get the funds that were needed. For example, in nineteen ninety one there were no article, twenty eight healthcare, primary care, organised clinics. For people living with aids, they were only the peruse of mental health. So what the board did with the executive staff leadership is they formed a statewide organization called the adult they healthcare coalition. And they changed the way the revenue. Stream was structure so that article twenty eights could include primary care for people living with aids. Article twenty eight is a federal state of new york state state health. S o that you could receive third party medicare reimburse oka okay, it’s. An amazing revenue stream, extremely stable. And it helped people keep people out of hospital emergency rooms so you can provide care at a much lower rate. So sometimes revenue streams have that level of complexity to them. And you need a board that could understand the thinking behind them. And sometimes revenue streams are easier to understand. I mean, i think that’s why people often gravitate to foundation grants. They can look at a foundation’s website. They could understand the application process, and they throw there their hat in the ring to see if there are going to be, you know, lucky. Let zoho focus on again the achieving this shared vision across the board. So it certainly takes place in inboard recruitment board meetings and month after month. I mean what’s the what’s, the executive director’s role in trying tow align the board with this with a common vision. Well, one of my great teachers carl matthiasson, who was expert in board development hey used to say that a board will talk about anything and then he’d pause and he’d say, if you let them sound the point, the point was that the executive director, um, in in private dialogue with the board chair or the executive committee had to understand how to create an agenda that was consistent with where they were headed so that the organization didn’t waste a lot of time often times, you know, can you imagine tony in an average year, how many board meetings i sit in and listen? And so much of what boards talk about is not is in concert sequential to their their deepest desires and goals, paperclips and on dh office supplies a cz one example, you know, thinking ok and no on the worst, and the executive director doesn’t want to be micromanaged, you know, you hear that language a lot. Of course. On the other hand, the executive director is under macro managing, you know, and the the opposite, of course, of micro management is macro management and macro management is about the strategic alliance of the vision and here’s where you see a lot of executive director’s check out the and it leaves them vulnerable to being micromanaged, so i encourage in the book for the culture of a board to be robust and that the ceo see him or herself as part of a shaper or leader in that now lot of non-profit see, youse will read that and they would go well dahna you know, i’ve been doing of course i’ve been doing that for years, but when you look across the sector that’s not necessarily the habit off many ceos, they they often see themselves as just employees of the board and they and they abdicate that board leadership responsibility, yes, even though they’re not the named chair of the board, but you’re advocating that they still have a strong role in board leadership that’s, right? And some ceos who were former program directors and then that he became the ceo, they’re not by their character change agents. So what i’m describing is a character of a ceo that’s really a change agent because i’m interested in high performing non-profits that that solve the social problem that they set out to solve, whether it be reducing teen pregnancies or having more kids get through the school system successfully or or adult employment, for example. Um, so those ceos of those kinds of organizations generally are change agents and it’s not to say there’s something bad about the ceos are not it’s, just that i think that they have to think about a different place in the sector that might be better suited for their skills and talents. Okay, let’s, talk briefly about the gift of significance that you recommend from, um, from board members and you in the book, you have a calculation for what that ought to be boardmember boardmember and we don’t really have a chance to go through that calculation. But what? What? Why not a significant gift? Why? Why is it a gift of significance? Well, that’s a significant point. Most boards think about board trustee e-giving as giver. Get, um, and then there’s a third part of that is unsaid, which is give, get or get off. Get off! So i never liked that. And i taught at the united way here in new york city for many years i taught their board seminar and and did the given get policies and there’s wisdom? To that, and i’m not opposed to give and get policies, but i think there’s a ah much more thoughtful way to engage the process, which is to have a conversation about a gift of significance. What for you when you look at your philanthropic giving in the past few years, given your current income, what is a significant gift that stands out amongst all your, um, you’re you’re giving and the reason that this is a particularly good approach for trustee is that a trustee is stepping up in a leadership capacity toe inspire other donors to give by their giving, and they have to see the connection between how they think about their giving and what they want. The donors of the organization i do because the development director or the vice president, institutional advancement or the ceo needs to say my trustees have stepped up, they’ve made leadership gifts one hundred percent a hundred percent they khun cumulatively give um, you know, twenty six thousand seven hundred fifty three dollars, i’m that precise when i calculate the cumulative giving of aboard and reported back to two donors and the donor’s often laugh, but i’d rather give them. The real numbers to know that this is a real process if you’re if their boat donors of your trustees on your board, that can’t give a gift of significance. That’s not true, everybody can give a gift or significance. I mean, i’ve had its what’s significant to that exactly. I’ve had consumers of services that that social work, term consumers or program members on the boards that i’ve worked at, and and i’ve used the same principle with them, it could be five dollars could be fifty dollars, but for them, it’s a significant gift and it’s in phrasing it that way is a gift of significance. It captures the energy that we’re looking for around thinking about being ah fund-raising leader and, of course, ideally, too, from time to time, you want to ask the board to stretch beyond their normal giving, which is when you’re in a campaign or ah, special drive or there’s an anniversary, things like that. So continuing with some of the strategies that you recommend, um, you like like parlor gatherings over what’s a parlor gathering could be in an office conference room could be in your living room. Ah, parties with a purpose is, that is the general frays, and the purpose is the benevolence that the party ah it’s, not a party for a party sake it’s a party for a purpose. And the purpose is to sponsor and endorse and give money to the charity that it is. Ah, is the primary focus? They’re ninety minute gatherings. I describe the actual methods and rollout and is very user friendly chapter but ah lot of organizations keep waiting for that moment when they’re going to go to the next level and fund-raising, of course, is a practitioners art so here in the parties where the purpose you see avery practical method that you could roll out in two to three months, sixty to ninety days in fact, one of the smaller non-profits that listens to your radio program read the book their whole development committee. They’re all volunteers. Well, i love them because they’re listening. Yes, i don’t care what they do fund-raising wise. Frankly, lawrence, i don’t care if they bought your book or not. They’re there listening to the show that you could stop there. I love them, whoever you are, we love you. You know who you are. We love you, i’m sorry, i know it’s true and they they are going to do a party that when they called, i said, i’ll give you a free as i do anybody, i give anybody of free ah forty minute phone conversation about questions they have about the book, or i also come into organizations to meet with the development team or aboard team anyway, so i gave them a free consultation and they wanted to do a party with a purpose in the future, and i said, oh no, we’re going to have it before the year and we’re doing it now, and they’re going to be doing it right after between christmas and new year’s. Excellent. We gotta take a break when we come back tony’s take too. I’m wagging my finger about charity registration, and of course, laurence and i are going to keep talking about party gatherings and leadership. Council’s, hang in there with us. You couldn’t do anything to getting dink dink dink, you’re listening to the talking alternative network duitz e-giving e-giving good. 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M on talking alternative dot com. You’re listening to the talking alternative network. Kayman hi, i’m bill mcginley, president, ceo of the association for healthcare philanthropy. And you’re listening to tony martignetti non-profit radio. Big non-profit ideas for the other ninety five percent. We’re not live today, so i can’t send literal live listener love, but i bet i can guess who the live listeners are. New york, new york, california, oregon, texas, massachusetts has been checking in lately live listener love to everybody from those states and everyone else who is listening live and of course, going abroad are very regular listeners from japan, china and korea live listener love to you as well. Podcast pleasantries to the nine thousand of you listening through itunes stitcher player fm podcast dot d in germany, we have a lot of listeners in germany podcast pleasantries to everybody listening to the podcast tony’s take two. Are you properly registered in each state where you’re soliciting donations? I asked that question often you should be think of a massachusetts charity that sends email to connecticut and u s mail into new york to solicit donations that charity needs to be registered in massachusetts and connecticut and new york. Do you have a donate now button? Are you accepting gifts online in about half the states? It’s kind of a fuzzy area, but about half the states when that donate now button goes live you’re deemed to be soliciting and it doesn’t matter whether anybody ever clicks on it. It’s it’s the solicitation going out through the live donate now button that is what triggers the charity registration laws in a lot of states. I’m building an online solution that is going to automate the charity registration process. I’m going to be talking about it, maura going to blogging it. Mohr partners and i are in development on the site right now. Technical partners included, we plan to go live in early twenty fourteen and it is going to make the charity registration process easier, much cheaper and quicker and explain the details to you all all online. So it’s going toe really streamlined the process. There is no completely web based solution to this, and we’re building it. If you want to know more about that, you can sign up for some insider alerts. I’ll send occasional emails to insiders who want to know more. You can reach me through the contact page on my blogged let me know that you’d like to be part of that list and my blog’s is tony martignetti dot com that is tony’s take two for friday, the eighth of november forty fourth show of the year let’s talk more about parlor gatherings lawrence, you do is a very, very askew, said user friendly chapter you have a lot of very robust advice, and i’ve always liked the idea of a small, intimate gathering, so we’re goingto focus on my prejudice for these types of events, not to the exclusion well here on the show, and we don’t have a chance to talk about everything all the strategies that you have in the book, but the book is full of lots of fund-raising strategies i happen to like the i never heard them called parlor gatherings, but i like, i like that idea. Um, who should host these thes parlor gatherings? Generally? There’s one one host who has a good network of friends, were colleagues, family members and in turn out twenty five to thirty people. I’ve been it parties where the purpose parlor gatherings that have as much money as seventy five that’s a big parlour. Yeah, but they have, you know, they’re people with big names and they have big networks and s o mostly, the host is responsible for inviting the guests mostly the host now in some organizations where our host doesn’t feel that they could deliver twenty five to thirty, people, maybe they have a co host or i’ve done three hosts and each of them commit delivering, you know, ten people and and that’s worked very well, especially because they’ve had the support in partnership of two other people that they like, and they’re going to do it together, and they see it as a ah fun thing to do. I love the fact that most of the the expense budgets on parlor gatherings are a couple hundred dollars. We don’t put out a lot of fancy food. We use cheap wine or no wine at all, depending on the organization that always has to be thought through. Um, and we don’t spend money on trinkets or literature. Um, if the if the host once, um, paper invitations as opposed to just using ah elektronik invitation service like ping ah, the host then has to pay for the cost of that, not the organization. And um and as i said, they are usually planned in sixty to ninety days, okay? And you want you want nobody to talk for more than five minutes, that’s right, who you should talk. Well, it has to be somebody. Ah, that that people can emotionally connect with generally a client or consumer who is prepared to deliver and it’s comfortable talking to a group of those could be very tender, intimate moments when it’s, when it’s someone who’s benefiting from the services of the organization. That’s right, it’s seen i’ve seen tears in in colleges, scholarship recipients. But the cause is something causes you mentioned run much more deeply even than education. Yeah, i people who have healed from years of recovery, people who have been supported in their process of coming out of jails and prisons, people who i have ah been through adoption processes. I mean, their stories are extremely powerful, and telling a story is what you need to help them work on and prepare for, so that they have some flare on some theatrics to it where the the audience makes eye contact with them, and that that they have good hand gestures and that they’re articulate. And everybody, of course, has their own style. I’ve been where some client i’ve been to some parties with a purpose where the clients are very stove. Oj and they have a quiet manner, but nonetheless your grandmother would appreciate it slipping little italian, italian and there you are, italian listeners. Ah, they’re they’re quieter in their presentation, but nonetheless still powerful because they prepared still very moving, very moving video is often good at larger events, but in smaller events ah, the intimacy of the smaller room gives gives good stage two to two personal witness who else should be talking? Ah, well, the the some official from the organization of boardmember or volunteer or staff member ceo doesn’t have to be to say, you know, no, the ceo is more than happy more than welcome to think of him or herself, but again in a high functioning fund-raising culture, everybody should be empowered to talk about the money, and teo, talk about the money in a way that that other people get it and doesn’t have to be the ceo there. There’s a one of the stories i tell in the book is a first party with a purpose for a small agency in brooklyn substance abuse recovery agency. They never did any private fund-raising they’d always relied on government grants and their first time. Out, they raised twenty six, twenty seven thousand dollars. They had two clients tell their story and ah, boardmember, who never saw herself as a fundraiser, stood up and was crying after listening to the that the two consumers tell their story and she burst out with a five thousand dollar pledge and somebody else in the room matched it, and none of that was prepared. But it was prepared conceptually, because we do have a bias in who we invite, that we try to invite people that we know something about, that they have some means now we’re not. We’re not strict about that, but we do ask the question. Ahn do seek people who have that some level of affluence now, a lot of smaller non-profits say right off the bat. I don’t know anybody, you know, with the that level of affluence, and i say, okay, well, let’s work with what we have and but amazingly, they always find somebody who writes that eighty percent of the rooms check on dh rehearsing you like tio, you’d like to rehearse. These rehearsing is very important, you know, the penultimate example of steve jobs that before he passed away at at apple, his his launches of new products were legendary, right? That he practiced those for weeks six, seven weeks every single day of running the whole team through rehearsals and himself. And anything worth go doing is worth practising foreign preparing well for so don’t think you could just, like, call the client up the night before and say, would you speak tomorrow at our you know, party with a purpose? That’s not the way to do it? And what about the important follow-up to your parlor gatherings? Well, part of the second speaker or the third speakers role is to ask for funds and and, ah, pledge form has handed out, and some people fill it out right there and it’s collected as people leave and for those that don’t hand the pledge, forman follow-up is necessary first of all, follow-up is necessary for everybody to say thank you, wei have a rule of sending out our thank you notes and forty eight hours business hours which a lot of non-profits find, you know really? Ah, hi rule to meet but we think it’s important that people get both paper and email thank you’s and they get a cumulative understanding of what happened at the party because a lot of donors are going to leave and they’re not going to know the cumulative results that they participated in the twenty six or twenty seven thousand or five thousand or twenty five hundred was raised when i share that impact, you want to share that impact, and you want to let people feel the good vibes of that they participated in, that they made it happen. And so the thank you notes need to go out the the results need to be go out by both female and paper. And then, of course, the e-giving history needs to be recorded in your database and there’s no excuse for a non-profit whether they’re volunteer with no budget, not having a database, as i say in the book, you can go to e base dot or get a free database that was developed by the rockefeller family foundation at my website for the book the non-profit fund-raising solution dot com there’s links to free databases, or you could just use a good excel spreadsheet and stay organized or an access that a base that’s comes with your you know, your computer there’s no, excuse thes days for you don’t have toe spend, you know, ten thousand a month with razors, edge or something. Thank you for sharing those resources to. Leadership councils we alluded to these earlier what’s the role of a leadership council. Well, a non-profit has a board that that worries about its governance. Generally we say that the executive staff is supposed to be worried about one, two, three years of management, and the board should be thinking about five to ten years. The pentagon, of course, has a seventy five year strategic plan, so they know where they’re going to be. I would like our sector to know a lot more about where it’s going to be, but no pat, no matter how powerful your board is, you still need mork community endorsement for your organization and the leadership council gives you that it’s a non governance structure. Some people call it honorary councils or advisory councils. I like the term leadership council because it’s, what we’re looking for, we’re looking for them to be leaders and sometimes those leaders khun step up and say things that your board can’t say, or your executive staff can’t say about your cause. And as we saw this pit last year or two years ago with planned parenthood, there were many people on its leadership council who spoke up. In their defense, where they’re bored, needed to keep, ah, quieter, acquired or voice. So leadership councils are very important. And sometimes you put people on leadership councils who don’t want to do the heavy lifting of governance. And sometimes you put them on because you have good feelings about how they love your organization, and you want to maintain that relationship, but they’re not appropriate for the board. So it’s a it’s, a mix of characters. We’ll take a break for a couple minutes. Keep talking about leadership councils. Dafs you’re listening to the talking alternative network. Are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. Have you ever considered consulting a road map when you feel you need help getting to your destination when the normal path seems blocked? A little help can come in handy when choosing an alternate route. Your natal chart is a map of your potentials. It addresses relationships, finance, business, health and, above all, creativity. Current planetary cycles can either support or challenge your objectives. I’m montgomery taylor. If you would like to explore the help of a private astrological reading, please contact me at monte at monty taylor dot. Com let’s monte m o nt y at monty taylor dot com. Talking alternative radio twenty four hours a day. What is our leadership council going to do? Lead endorse for legitimacy, credibility? They’re there to say we like these guys what they’re doing, we endorse and it there’s power by that association with their name, and they don’t even have to do anything just to have that happen. We do want people to do things on the leadership council. They’re generally a couple things. We want them to come to an annual gathering of the leadership council so that they could get their own personal update about the organization. Secondly, we want them to to meet with us individually, us being the development ofthis war, the executive office. We want to meet with them individually to talk about their own gift to the organization, plus their network of possibly doing guess what? Ah, party with a purpose for their network. So there’s a lot of in few inches integration of the tactics in part two of the book, while part one is all about the way you think about fund-raising part two is all about the the intermarriage of various tactics. For example, in a leadership council, i think i mentioned this in the plan giving chapter you could have a leadership council just for the people who are part of it playing give me that. There is a chapter devoted to plan giving. There is the only reason lawrence’s here. We’re not talking about that chapter it’s. The only thing that drew me to the book. I read it from backward. I read, i read that chapter first. The plan giving is, ah, well, many times non-profits overlook having a plan giving society for their donors that that give through their bequests or their wills or insurance policies or whatever the mechanism and having a leadership council of your plan giving group is very important. Um ah, there was a small client i worked with here in east haven, connecticut, the shoreline trolley museum. They’re in the in the midst of closing on a two million dollar campaign so that they could have proper buildings for their antique trolleys. They have one hundred antique trolleys, which tell the story of the trolleys from the eighteen hundreds. Amazing place. My kids love it and the ah, they never had paid attention to their legacy there. They’re playing e-giving ah, donors and we started to talk to them or and organized that group. And they have a leadership council now off their plan giving donor and twenty, twenty one people joined the first year. And i think four five have joined the second year, and they were unsung people who had thought about e-giving for the future where i think you would know better than i, but something like a low seven percent of people think about a plan gift. Whereas in there course of their life, like eighty five or ninety percent of people think about giving but upon their death, they generally just leave their money to their to their family. Yeah, there’s. Some small percentage of people that have, ah, charitable bequest in there will yes, when the leadership council is advocating and endorsing, who were they advocating in endorsing, too? Ah, to the press to other thought leaders conferences during the height of the aids epidemic, the leadership council that i put together at harlem united many of those leaders would would mention in their addresses about aids and howto compassionately. Respond. They would mention that they were on the honorary council of harlem united. It meant it meant legitimacy for them and for us that they would mention that it worked both ways you had ah, leadership council you site in the book that had fifty five members. Oh, yes, what that sounds huge. Yes. And i had the same response to the ceo, and he turned around and said, but look at my mission. I’m i have to represent, you know, thiss whole county and there were, i don’t know twenty four five smaller towns in this as county. And he represented three sectors, not just the nonprofit sector, but government and business and real estate was a big factor of that. So he needed a large counsel, and he saw the wisdom of that. And he i actually had a staff member hired to manage that leadership council, and it brought him it was a wise move. Um, it brought him a lot of impact because he he didn’t neglect his leadership council. A lot of times leadership, council’s air started. I see i go in and, um, auditing and organization. And i look at their letterhead and i see. I say, oh, you have an advisory council says here? Well, yeah, but not really learns i said, what do you mean? Well, we really don’t you know, that was a couple years ago, and it was so and so’s idea and and it’s just fallen by the wayside. You see there’s an example where the culture of the organization didn’t embrace the tactic tactics don’t raise money. Yeah, excellent on their own, they need a culture to nest in and if they’re if they’re if the tactic is in an organization where the where it’s loved and cared for it, then produces results, so then they get the crazy idea that oh, well, the leadership council never really did raise much money for us, totally disassociating themselves from ah lack of developing it and creating a plan for it. At harlem united, our leadership council was reviewed every year, and the plan was updated and revised and evaluated, and that was brought to the boardmember that the board? I’m sorry at a board meeting we we always had cochairs for the leadership council, male and female, pretty consistent about that for capital campaigns, male and female leaders of the campaign cabinet and those two leaders i would invite to come in and give a state of of the union of the our leadership council to the board, and it was and the board members would go to the annual gathering of the leadership council. The board members were asked to do that, and so there was nice synergy and harmony there no competition, we have just about a minute and a half before to wrap up, and so i want to spend that time asking what it is that you love about the work that you do well fund-raising is a noble profession and it’s a bridge builder between the idea that you have that will make the world a better place and the money you need to actualize the program. And so the methods of fund-raising are build that bridge, and and you love building bridges, and absolutely one of my old teachers used to say, if you build bridges, don’t don’t be surprised when people walk on them or walk over you, but nonetheless fund-raising is that bridge between the non-profits idea and the reality of making it happen? There are lots of very good. Ideas in the book it is the non-profit fund-raising solution. Powerful revenue strategy is to take you to the next level. Lawrence paige nani lawrence’s l a u r e n c e panjwani perfect. Thank you so much for being guests. Been a pleasure. I’ve been delighted to be here. And i wanna shout out just quickly to all by blogged readers. About forty, five hundred of them raise your block non-profit fund-raising solution dot com and you can sign up there to be on the block. Outstanding. Thank you again. Thank you. Next week, author denny elliot discusses her book the ethics of asking lots of fund-raising situations raise ethical questions and we are going to talk about them. Rally bound is a sponsor. They make simple, reliable peer-to-peer fund-raising software friends asking friends to give to your cause. There is support for you and for all the people who are asking their friends to give to your campaign. You can claim a discount as a non-profit radio listener go to rally bound dot com or just call them up and ask for joe mcgee. This is this is the type of organization there are they want to. Talk to you personally, ask for joe. I’ve talked to joe, i’ve met the ceo, shmuley, very good guys, call them up, talk to joe mcgee. He will help you get your campaign started. They are at triple eight seven six, seven, ninety seventy six. Our creative producer is claire meyerhoff. Sam lever, which is our line producer, shows social media is by deborah askanase of community organizer two point. Oh, the remote producer of tony martignetti non-profit radio is john federico of the new rules, and our music is by scott stein. I do hope you’re going to be with me next friday, one o’clock eastern. I’m talking alternative road casting at talking alternative dot com. E-giving didn’t think dick tooting the good ending, depending. You’re listening to the talking, alternate network, waiting to get in. Are you a female entrepreneur? Ready to break through? Join us at sixty body sassy sol, where women are empowered to ask one received what they truly want in love, life and business. Tune in thursday, said noon eastern time to learn tips and juicy secrets from inspiring women and men who, there to define their success, get inspired, stay motivated and defying your version of giant success with sexy body sake. Soul. Every thursday ad, men in new york times on talking alternative dot coms. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com. We look forward to serving you. You’re listening to talking alternative network at www dot talking alternative dot com, now broadcasting twenty four hours a day. This is tony martignetti aptly named host of tony martignetti non-profit radio. 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Nonprofit Radio for November 1, 2013: When Leaders Leave

Big Nonprofit Ideas for the Other 95%

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Priscilla Rosenwald: When Leaders Leave

Patricia Rosenwald photoYour CEO has been recruited away for a dream job. Where does that leave you? Priscilla Rosenwald, co-author of “When Leaders Leave” wants you and your board to plan for leadership transition long before it’s announced.

 

 

 

 

 

 


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Hello and welcome to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. I’m your aptly named host it’s friday, the first of november twenty thirteen oh, you know that i hope you were with me last week. I’d be forced to endure falik yah leitess if i came to learn that you had missed dr seuss stories, what khun green eggs and ham teach you about digital storytelling? Kelly jarrett with blackbaud had tips for each step of the story arc and lots of great storytelling examples and fraud protection. Melanie morton, manager of blackbaud forms, explained where you may be vulnerable and had a limit your liability for nefarious deeds like check fraud. Both of those were recorded at bebe con this past year. I just last month this week when leaders leave your ceo has been recruited away for a dream job. Where does that leave you? Priscilla rosenwald, co author of when leaders leave once you and your board to plan for leadership transition long before it’s announced she’s with me for the hour on tony’s take to roughly halfway through my thanks to two very loyal listeners we are sponsored by rally bound software for runs, walks and rides they are at rally bound dot com it’s. My pleasure to introduce priscilla rosenwald. She is the co author of when leaders leave she’s an executive recruiter. She and her co author have the site transition works dot com where you’ll find their book. Priscilla has a long history in executive recruiting and board recruiting. Priscilla rosenwald, welcome to the show. Dying. I’m delighted to join you. I’m glad you could thank you from philadelphia, right? Are you in philadelphia now? Yes. I love philly. Um, leadership changes these thiss can have a very big impact on on staff, on boards, on organizations. What? What was the impetus for your book? The evidence for the book was all the experiences that my colleague and i were having being called into organizations when the crisis already occurred. Either a long term leader had given notice on the organization was not prepared for that. Or really, there was a lot of turmoil with a founder and no ability to think about how to have any staff step up and run the organization when the founder exited. So we kept hearing these stories again, and again and again on i thought that if we gave people from guidelines in some steps tow, walk this difficult road, we could make it a lot easier and a lot of scary. As you mentioned, this could be not only a founder, but also along longstanding leader absolutely it’s really about ah, high profile leader who’s really so identified with the organization that everybody thinks of that leader synonymous with the organization, so it may be somebody who didn’t the role ten years, sometimes it’s someone that’s in the roll twenty years and often it’s the founder who certainly the respected respected leader who’s been there a long time, and nobody can imagine the organization without that person. What are some of the other symptoms that we find when there’s one person who had who has this disproportionate power over the organization? Well, often there’s a board that they’ve selected often the board to firms to that leader? So the board often step up in terms of governance, often the talent the organization has not been cultivated, so really it’s, not often a strong leadership pipeline, and the other piece it gets a lot of organizations into trouble is that high profile leader is often the face of all the thunders, so everybody’s terrified that if they leave, the funders really don’t know the organization and won’t fund projects, it won’t fund a mission, and when we have this board that was put in place by the founder or longstanding leader, then the decision making is all pretty much centralized around one person, right? And the board is like rubber stamp pretty much like that. The board doesn’t often ask enough questions are also get enough information there. They’re thinking that they’re being very responsible, but they’re often missing a lot of information to help them be more strategic. You talk a lot about aligning the organization legacy and the leaders legacy and, you know, of course we have the full hour, so we have time to flush these things out. But but what? What what do you thinking, their organizational leadership legacies kapin way think that’s a conversation that rarely happens. So when i when i talk about legacy, i really mean where the leader is thinking, they want to take the organization what impact they wantto have on the organization and then what impact they want the organization tohave so it’s really the impact, their personal impact and really the organization’s impact during their tenure. Okay, so aligning these things and that sounds like it involves a strategic planning process. Haha it does involve a strategic planning process. Um, however, i’d be curious to know how often in strategic planning these issues are actually discussed. So certainly legacy comes up rarely on the other piece that i wanted talk about that ties in with legacy is also succession planning. Yes. Okay. And you also make the distinction between succession planning and transition planning? Yes. Okay, you make that okay. Why don’t? Why don’t you just generalize that and we’ll have time to go into that detail also. Okay. So succession planning if it’s working well for an organization is an ongoing process, succession planning can actually even start as soon as a new leader is in place. Because it’s really continual planning and it’s really about talent management. It’s really growing the talent of the organization and making sure that the organization, um, is growing in line with the challenges that it’s facing so it’s a much more strategic approach. There is something that we call emergency. Succession planning and every organization needs tto have an emergency plan in place if the ceo is the chief executive, it’s called away for a project, has a personal reason to be away for three to six months. So you do need an emergency succession plan, but that’s not the strategic succession plan. Okay, and then, you know, i mean, you’re laying out different long term plans. We’re going to have time, you know? I don’t want you to go too much detail now because we’re going, going, going to come back to you, but try to get a bunch of things, just lay some, lay some ground for for for everybody, all right now transition planning. What is that? Ha ha! So transition planning is put in place once the leader give notice that they’re leaving or decides to leave, some leaders decide that they’re going to retire in a year, and then the transition place the transition planning get started sometimes there’s not a lot of lead time, but that’s really how the organization is going to manage through the transition to search. And then what happens when a new a new leader is hyre okay, and so that’s the that’s what we’re going to execute when we know that there’s going to be a transition great. And we have the plan in place. That’s transition planning. Okay, so we have succession planning. We have transition planning. Um, you, uh you have ah, terrific example in the book of a, uh a phoenix arizona charity, having having done this successfully, the alignment of the of the legacies, right? Can you share that? Yeah, that was that was really a unique situation in that there was a founder who new they were ready to step aside but didn’t want to completely leave the organization, and they were really highly identified with all the thunders. It doesn’t often work. Tohave a founder stay involved with the organization and a new executive come on board. But with some work on the on the part of the board and on the part of my firm, we were able tio positions the founder tohave a narrowly defined role in terms of funding and cultivating the donors, and allowing the executive director to really take over the leadership of the organization in terms of the mission of the organization in terms of their eyes. That can see in terms of their they’re patient work on dh it’s been two years and now, yep, the founder is gradually and gracefully exiting. Okay, now we have just about a minute before a break. Can you just give our overview before we go to break? What? What? That process was between the oncoming ceo and the founder. So what made it work was a lot of very transparent conversations with the founder board meader ship and the incoming executive director in terms of being very clear about rolls and expectations for each of those people. So the founder that was stepping aside and the new executive director that was coming in very clear expectations that we constantly revisits about how they were communicating and who was responsible for what and having the board step up. The board also had a move from being a founder board into growing members of the board who weren’t all selected by the founders. So all these things were happening parallel and it’s really been it was really to your process. Yeah, and it sounds like some difficult conversations we’re going. We’re going to go to a break when we come back. Priscilla rosenwald. And i will keep talking about this will flush out some of these difficult conversations and and help you get these long term plans in place. Get and get at least get started. Stay with us. Talking alternative radio twenty four hours a day. Do you need a business plan that can guide your company’s growth? Seven and seven will help bring the changes you need. Wear small business consultants and we pay attention to the details. You may miss our coaching and consultant services are guaranteed to lead toe. Right, groat. For your business, call us at nine. One, seven, eight, three, three, four, eight, six zero foreign, no obligation. Free consultation. Checkout on the website of ww dot covenant seven dot com are you fed up with talking points? Rhetoric everywhere you turn is last. All right. Spin ideology. No reality. In fact, its ideology over in tow. No more it’s time for action. Join me. Larry shot a neo-sage tuesday nights nine to eleven easter for the isaac tower radio in the ivory tower will discuss what’s important to you society, politics, business and family. It’s provocative talk for the realist and the skeptic who want to know what’s. Really going on? What does it mean? What can be done about it? So gain special access to the ivory tower. Listen to me. Very sharp. Your neo-sage tuesday nights nine to eleven new york time go to ivory tower, radio dot. Com. For details. That’s, ivory tower radio cop everytime, was a great place to visit for both entertainment and education. Listening. Tuesday nights nine to eleven. It will make you smarter, buy-in. Hey, all you crazy listeners looking to boost your business, why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com. Welcome back to big non-profit ideas for the other ninety five percent. Priscilla rosenwald is co author of when leaders leave and that’s, we’re talking about leadership transition planning for leadership transition, priscilla, we’re not talking about bad, bad, bad happenings the leader get it gets hit by a bus, how come we don’t use don’t come you don’t use that in the book that’s such a doom and gloom scenario that whenever that expression comes up, people usually get scared, and i don’t want to continue the conversation, so i know it’s very popular. It’s not a conversation starter for us, so we don’t usually begin discussions about succession planning or transition planning with that expression. Okay? So on the positive, it could be that, as i said in the intro, your leader gets recruited away to a dream job or some some fellowship or research opportunity that they just can’t pass up, right? Or what we find also is that a lot of leaders find it there’s still another career left to them, you know, they run this organization, they’ve enjoyed it, but it doesn’t have to be the only success they have in their lives, so they’re starting to think about another way that they could do something different some people want, oh have an academic teaching roll. Some people decide they want to leave and have a consulting practice. So planning for that and having the conversations about that are often what’s really challenging and isn’t the case that some some leaders don’t know how to get out, and then they may have these desires exactly as you’re describing, but they don’t know how to make the move. That’s correct? One one thing that we did here in philadelphia is my colleague and i had an ongoing round table with executives that had been in their roles for a minimum of ten years to talk about how they were positioning the organizations and, you know, having succession conversations, and it was an ongoing group. A lot of the leaders did decide that they were ready to step aside from the organizations, and some of the leaders decided teo reevaluate their role and really reposition the organization. So not everybody decided that they wanted to exit, but everybody used it is a launching pad to think of their legacy and how they wanted their organization to drive. And also how to engage their board differently? Yeah, okay, that exactly. So then i was going to ask you. So what were the next steps whether whether they had decided to leave or or or not, but they were reevaluating what’s the next step after they’ve done the introspective work? Ha! Next step is really looking at two things. One is looking at the board talent and the other one is looking at professional talent, so really making sure that the board has a pipeline of talent there really a succession planning its board level so the board is really engaged in a strategic way and very knowledgeable about the needs and challenges to the organization and ways that other board leaders can step up and work with new people, said it’s, a very tight partnership between the board chair and the high profile leader. So it’s a way to really get boardmember to be more involved in the leadership on the staff side it’s really looking at hell, they’re cultivating talent, so making sure there’s opportunities for staff to grow their skills have more visibility and the other piece it’s really critical that i don’t want to overlook. It thunders that’s often the place where the organization’s really run into difficulty when there’s a transition and that’s it. They haven’t really allowed funders to really need other staff in the organization, and they don’t have a transition plan for how the ceo is going exit and the funders will remain engaged. Okay not-for-profits report, okay, now we’re crossing over into but when we’re talking about the board and the staff and cultivating leadership within that’s, the succession planning, right? Isn’t that part of really kicked into high gear when the transition planning? Right? Right. Okay, but i’m trying to segregate the two so well, so we don’t confuse people. And so i wantto we want to deal with the succession planning part first that’s where we were that’s where you were, you were leading with the board and the staff is that is we’re trying to cultivate leadership and talent from within. Is that right? Okay, how do we do that? How do we identify the right one people? Is this picking one person? You’re going to be the successor? How is this done? My favorite question. No it’s. Not about selecting the successor. It’s really looking at? The people that are in leadership roles, from mid management through senior management and looking to see if people are really having enough opportunities to coach, too. Teo delegate to really move into some of the leadership aspects that the ceo is having, and it’s also incumbent upon them to pass down some of their leadership opportunities so that more people can step up and share leadership with them. So it’s also promoting more transparency around decision making in the organization. So everybody really feels like they’re engaged in the leadership. So it’s, not one person, um, pipeline down to the team in and down to the frontline staff, and this is bored and staff working together in this process, right, absolutely bored working together, okay, we have to put some ego aside. This is. This is very difficult stuff, isn’t it? This is hard stuff. All right? How do we how do we get the founder? Our longstanding leader to start toe advocates? Um, responsibility delegate on dh put that ego side what’s what’s that gonna circle back to what we talked about before. And the conversation that we find most valuable is getting go, the founder of the long term leader to really think about their legacy. And if they start to think about the legacy, their own legacy and the legacy they have for the organisation, it sometimes triggered them. Think about planning and what they want to put in place. Because then they have to put a long range perspective on, you know, if they’re looking thing more short term or more tactical, they’re not off. You’re thinking about their legacy, how they want to re remember. You know what impact they want the organization tohave what credit they want to get for it, okay? And that’s that’s all wrapped up in their in their in their ego but it’s a way to support their ego but helps them think about how their ego translates into the sustainability of the organization. Excellent, excellent. And where does this conversation originate? Is it with the board bringing it to the ceo? It actually does originate at the board level. I mean, sometimes the ceo will start that conversation because you had your because you had your group in philadelphia in our group that was theo’s issues, but it’s really at the board level where that conversation has happen. Here’s here’s one of the problems so i don’t wantto in any way make this sound like it’s easy. The whole conversation of succession often raises a lot of red flags, and ceo thinks that it’s a race, the conversation, then the board thinks they’re ready to leave on the board, thinks if they raise the conversation than they’re telling the ceo that they, you know, they want them to exit if it’s done on a regular basis of succession, conversation is happening at the same time that strategic planning it’s happening, then it’s not a one time conversation, and then it takes some of the sting out of the conversation. It normalizes it. So then we’re continuing to think about developing the ceo and how they’re developing the staff of what it looks like for the organization going forward. It’s not a one time oh, my god, we haven’t thought about what’s gonna happen. Excellent. Yes. That’s. Very good. That’s. A very good point to make and see. This is this is why i love non-profit radio. Because if we were giving you fifteen or twenty minutes, well, everybody gets at least twenty. But we’re giving you twenty minutes. You know, we wouldn’t be able to get to that to that point of of how difficult, how it’s perceived when either party raises the conversation, but because we have an hour together we get we get to flush this out. So excellent. Thank you. All right, so i want can i point out an example, there’s an example in the book. Okay, well, first of all, every every case study in the book is actually based on our work, but i hope so. I hope he’s not made up my god of dramas don’t know they’re all real, but i worked with a young ceo and they’re sitting there’s a case study about her in there. And from the time she walked into the organization, she talked about succession planning. She said to them, you know, i’m still early in my career, i’m not going to stay here my entire career. I want to be very clear about that, but i’m going to say for a long time and i want to put things in place. So starting with the beginning of her tenure, she constantly talked about succession planning and constantly looked at her legacy and what she was going to do for the organization made amazing things happen. They made some financial decisions, they made some facility decisions, she actually positioned the organization, so when she left, they supported her, they applauded her, they were ready for her successor and she’d been there under ten years. That’s that’s got to be rare with ceo talks about succession planning at the beginning of their tenure, but but it sounds brilliant. It worked for her, and she continues to have a really high profile career in the reason and that’s, another way of, i guess, securing for the board that this isn’t because i’m ready to leave. I just got started, you know, i’m in my first couple of months here, but but we have to plan for when i do leave, right? So how does that make it easier for the board, tio tio here. Well, if if the conversation is less about the person and more about the organization, then it’s much easier conversation have. Okay. Okay. You know, our ideal is to take it away. You asked about egos. We don’t want this to be ego driven. We wanted to really be driven by what’s. Good for the organization. And i don’t want to leave people with the thought that well, i’m the executive director on i’ve been here two years and i didn’t start the succession planning discussion when i started. So it’s too late now, it’s tze not too late, but later. Yeah, okay. And as you point out, make it about the organization. Okay? Is there a is there a committee of the board that should be dealing with this? O r? Is this a full board activity? How do we implement this success in planning process at the boardmember? Great question. So it’s usually may have different names, but on the board it could be the governance committee. Could be the strategic planning commitee. Yeah, sometimes it’s rolled into the nominating committee. But it really is at a committee level. And at that committee there really should be at least one member of the executive team involved, okay? And our succession plan is this this’s a written document that, of course, like a strategic plan. We keep revisiting it’s, not like you put on a shelf. Forget it, but is this is this a written document? It is that the outcome. It is a written document that exactly get revisited along with the strategic plan. So it’s continually revisited in terms of where we’re going, with success in how are the rolls changing of the senior leadership? How is the role changing of the ceo? You know, maybe they started with everything on their plate. Maybe they’re starting to share responsibility, maybe they’re starting teo grow their team. Maybe they’re sending more people out to be the face of the organization, so constantly revisiting that and i want to get back to how important it is for that also happened at the board level, the succession planning it’s really happening concurrently with the board and with staff? Yes, and that i wanted to move to the staff right now. Perfect, because they’re they’re an integral part of this. Um, are they are they involved beyond the it sounds like they are beyond the cultivation of their talents? How is staff involved in this succession planning? Well, they’re really constantly involved because they’re constantly involved in coaching. I say that again and again could supervising and coaching or not one in the same so it’s their role to be coaching talent. Um, it’s really up to them to be part of joining in the decision making, it gives staff the opportunity. Tohave more transparent conversations with chief executive it. Really changes the tenor and the tone of of the leadership of the organization because it means that all the things that could never be talked about publicly now could be talked about. You know, what happens if and let’s think about this and, you know, talk about worst case scenarios, planning for success, planning for challenges, it’s all on the table. Excellent. Okay, as you said earlier, open open conversations, transparent, but but difficult conversations. How do we how do we execute these conversations at the staff level? We having having meetings about succession planning? We’re doing this. I know it’s. I know in general it’s ah it’s ah, conversation with the board. But we’re doing it at board meetings and having staff come. How do we execute this for the staff on nice question you love my questions. I’m i’m pretty pleased myself. So people do it’s not our world, to tell people how to do strategic planning, but usually success full strategic planning, engaging staff as well as the board. So the staff for part of the conversation at the strategic planning level and then and it may cast k down, so it may not be the entire staff, but it may be representative to the staff, but if the staff are engaged in the conversation and it’s easy for them to be part of the follow through and part of the planning if it’s just handed down from the board, it’s really much more challenging for the staff to take a role in it? What if? What if we already have our strategic plan in place? We just we just wrapped it up earlier in twenty thirteen, and we didn’t include succession planning as a part of it. Another good question you wrapped it up, but you wrap it up as a couple of year plan. So it’s a it’s a three year plan, for instance, so the first time you revisit it, so you’re going to revisit a tier one that’s a perfect time to then have the succession plan in conversation. So there’s always windows to commit and have this conversation. And i want to say that i don’t expect that every organization can do this by themselves. It’s all facilitated process, you often need an outside consultant help you have some of these challenging conversation, so i don’t expect the ceo of the boards here to be able to easily step up and lead this. But once the consultant comes in and get the process going, i think the organization can can take their cues and manage it from there. And that’s, typical of strategic planning, generally that’s, the way it’s done. All right, we have to go to another break when we come back. Tony’s, take two. I have two very loyal listeners to thank, and then priscilla and i will continue talking, and we’ll move from succession, planning to transition planning. Stay with us. There e-giving inventing the tubing, getting dink, dink, dink, dink. You’re listening to the talking alternative network waiting to get in. Nothing. Cubine are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you, too? He’ll call us now at to one to seven to one eight, one eight, three that’s two one two, seven to one eight, one eight, three or find us on the web at www dot double diamond wellness dot com way look forward to serving you. Hi, i’m ostomel role, and i’m sloan wainwright, where the host of the new thursday morning show the music power hour. Eleven a m. We’re gonna have fun. Shine the light on all aspects of music and its limitless healing possibilities. We’re gonna invite artists to share their songs and play live will be listening and talking about great music from yesterday to today, so you’re invited to share in our musical conversation. Your ears will be delighted with the sound of music and our voices. Join austin and sloan live thursdays at eleven a. M on talking alternative dot com. You’re listening to the talking alternative network. Duitz durney i’m chuck longfield of blackbaud. And you’re listening to tony martignetti non-profit radio. Big non-profit ideas for the other ninety five percent. Tony’s take too. There are two people that i want to thank very much. I met high energy judy i dubbed her when i hosted a breakfast panel a couple of weeks ago for the association of fund-raising professionals here in new york city, the subject was creating a culture of philanthropy throughout your organization, in business offices and program department’s way beyond just the fund-raising office and, um, judy is a high energy judy, a trustee of a nationwide charity, and she does what i really hoped that boardmember listeners will do. She shares the shows with the staff of the organization when she thinks they’re relevant to their work and that’s that’s what i have in mind as as i’m producing this show for our boardmember listeners that everything isn’t relevant to your organisation, but what is i hope you are passing on, and if you’re in the organizations which most of our listeners are, i hope your your board members are filtering things to you and obviously that you’re thinking on your own that different topics are relevant to your work. But judy was just a perfect example of what i hope boardmember sze are doing as as you are listening, she was also very generous with her compliments of the show, and she had great passion for the charity registration work that i talk about sometimes and that i do in my own consulting. So judy, i didn’t you didn’t have a card, but i always have car. I gave you one of my cards. I offered you half a dozen, but you only took one. Please get in touch with me. I’d love to be in contact with you, judy. And it was a pleasure to meet you. Also eric anderson, eric blog’s at donorsearch reems dot wordpress, dot com and eric wrote a very complimentary post aboutthe show it was called have you discovered non-profit radio yet? He loves the show. He included links to some recent shows linked to the itunes paige. And in his blogged he asks, who is this martignetti guy i love that it was it was very sweet and it was really also very complimentary of the show. And eric, i thank you for introducing the show to your followers on your block and his block again is donorsearch reems dot wordpress, dot com high energy judy eric anderson i thank you very, very much. I’m grateful for your support and regular listening, and that is tony’s take two for friday, first of november forty third show of the year. I can’t give life listener love again, i’m i’m, i’m out of the studio, it will have been about three shows in a row out of the studio, but i will be back, but all the live listeners, you know, where you’re all from and if you’re not from one place, you know, while the other live listeners because i’m always sending so much live listener love, so we know we’re well represented in asia and all those very popular listening states throughout the country. I’m not going to regale you this this week and also, of course, podcast pleasantries very grateful to have all the podcast listeners. Thank you for listening, priscilla let’s, let’s go to yeah, you’re with me, right? I’m with you and i just wanna have mentioned a word that i think is very critical and we haven’t talked about in the first part of our discussions going that word has changed and that really underlies the reason that we wrote with leaders leave and that really underlying the critical issues. So it’s really about helping organizations constantly think about change, be prepared for change the position for change on dh no one knows what the change is going to look like. So it’s a matter of organizations being nimble and putting some of these systems in place. All right, we’re going to talk about the second recommended system or plan moving from the longer term succession planning to the transition planning. And why don’t you remind us? How is this different than the succession planning? So transition planning is put in place once it’s clear that the ceo chief executive is going to be deporting the organization whatever that time frame is, as soon as it’s clear that that train is in place than that the succession planning moved into actual transition planning. Okay. And to make sure that this train does not end up in a train wreck, right, we have a transition plan that’s in place long before we know that there’s going to be a departure. Okay. Right. What? How do we initiate this transition? Planning process so way mentioned this before we have a board committee that’s involved in the transition? Okay, same committee. So there’s a committee there’s a beginning of preparing which staff are going to have leadership will storing the transition? Um, you begin to do the communications about the transition of the chief executive, and you also start to stewart the funders. So the thunders air in place of the thunder start to understand that’s going to be a change in the organization. And i mean individual thunders institutional funders. Nothing is harder for an organization in terms of their long term growth that when a funder find out suddenly that the chief executive is exiting and they weren’t prepared for it, and they get very nervous about their support for the organization. So stewarding the thunder is an important component of your fund-raising professionals will agree those those fundez maybe individual or or institutional when you say fundez you just mean institutions, right? Ok, now you had made the the point. I’m a little confused the earlier that we’re not in the succession plan. We’re not naming the successor now by the time we have to execute our transition plan which again time stands it’s and it’s been in place for a while, but now we have to execute it now. It is time to name a successor. It is, isn’t it? Not necessarily. Okay, well, maybe that’s my confusion. Alright, no, i’m helen it’s a valid confusion success in planning doesn’t necessarily mean identifying a successor. That means identifying a talent pool that can manage the organization. Sometimes there is talent that emerges to be the successor, but it’s much harder to put that responsibility of one person through lots of reasons they might get recruit away in the process or sometimes there they don’t have the right competencies to move into the leadership role. What we see sometimes is the number two is offering operations person, and they do operations really wonderfully, and they get tagged to be the successor, and then they get into the role of being the face of the organization. They’re not comfortable being the things of the organization, they’re not comfortable doing the fund-raising and they may not be comfortable moving out of their operations roll so it’s much harder to identify successor didn’t let that process happen organically, through the transition and through the search process. What are we announcing then, as we’re executing our transition plan? We know there’s going to be a change in leadership. What are we announcing about the the successor or the plan to get to those? Thank you were announcing you love my questions. I’m sorry. I said you love my questions are great communication is about the stability of the organization during the transition. So that means there is a sense of timing for how long the incumbent is going to be there. And it also means often when they’ve been a long term leader or founder identifying an interim executive to be in place in the organization while the recruiting process is happening, it provides a lot of stability to the organization, and it also gives the staff and the board have time to deal with their issues of grief and loss. Because if there’s been a beloved leader, people need that time tohave, um, to catch their breath, to deal with their issues of law and then be prepared. Teo, accept and support a new leader. The role of an interim executive director now are you? Are you recommending that there be an interim person between the last day of the founder or longstanding leader on the beginning? The day the first day of the successor ceo. We always recommend that. D’oh. So so it’s. Not good, it’s. Not good for it in part of the transition. So it’s not good for the person to stay for the ceo to stay until the successor begins. It’s not ideal. Okay, it’s. Not ideal. And the other thing. And thank you for asking that it is. Boards often won the long term leader of founder to not just stay till their successor comes, but stay around and shepherd them through all the systems and policies and introduced him to everybody. Um, you know, i sometimes like in this to a marriage, um, and it’s really hard, if you know, if the husband gets married, has a new wife. And they think the ex wife really has to stay in the picture to talk about how everything happens. It’s something harder. So it’s much better that the high profile will well respect the loved chief executive founder gets a lot of accolades that there’s a public event to honor them, that they get a lot of support during their transition. So they leave feeling have be uncomfortable. And that their successor can come in with a clean slate and that the board looks to the new leader and doesn’t keeping deferring to the former leader. And you recommend that in between there there’d be an interim executive director or interesting in terms? Yes. I’m sorry. You said what i said. I recommend that and more. Okay, i recommend that with a caveat. And the caveat is that the interim executive director bia hyre professional and not the board chair and not usually an acting staff member. And i’m gonna tell you why, okay, but there are okay, we’ll get to the y in a sec, but i just wantto make sure people understand that there are consultants that act as interim executive. Director’s? Yes. There’s, always the pool’s consultant. Sometimes their former executive directors. Um, sometimes they’re people who had leadership roles, and they’re perfectly qualified to come in and serve in an interim capacity. Okay. And now the why you had mentioned a grieving and mourning process. What more you want to say about the why? There should be this interim person it’s partly to deal with the grief and loss. Sometimes, if there’s been a founder long term leader. They haven’t made tough decisions about staff rolls, and often the interim can come in and do the work in the organization prepare the successor to be successful. You don’t really want to hire the new leader to come in and have to do the dirty work that was left over from the former executive. They shouldn’t have to come in on dh deal with challenging employees that should all be done during the interim. The organization has a fresh perspective and is ready to move forward when the new leader comes in. Excellent, very inter treyz thing. And how long do you what what minimum do you recommend for the interim? So a minimum of three months, probably a maximum of six months. Okay, okay. And they have to they have to do some really dirty work, but we all know that they’re going to be leaving. So that legacy of dealing with the challenges which, you know, i think we’re talking about they’re firing people, reorganizing things like that. That, yes, looking scrupulously at finances right now, that’s all done by the interim person who is going to leave in three to six months, right? So they can make some of those hard decisions and ray’s heart issues that may not have happened during the long term leaders tenure. Excellent. Okay, now i don’t know. I don’t think most organizations planned this way. Do they have, isn’t it? Most organizations hyre an interim, and they’ll name someone probably internally, because the timing just works that way, they kind of default into it. Yes, okay, well, you could say in what happens, that’s, really, why we’re very big fans of planning. So if there’s a plan in place, then you can think about what happened, what they anticipate and that you’re never caught by surprise. Okay, okay. We’re going toe. Take a break. And when we come back, priscilla and i are going close this topic a little more on this. Very interesting, the interim, the interim ceo. So stay with us. Dafs you’re listening to the talking alternative network. Are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. Have you ever considered consulting a road map when you feel you need help getting to your destination when the normal path seems blocked? A little help can come in handy when choosing an alternate route. Your natal chart is a map of your potentials. It addresses relationships, finance, business, health and, above all, creativity. Current planetary cycles can either support or challenge your objectives. I’m montgomery taylor. If you would like to explore the help of a private astrological reading, please contact me at monte at monty taylor dot. Com let’s monte m o nt y at monty taylor dot com. Talking alternative radio twenty four hours a day. Welcome back, priscilla. I’m really thrilled that we got this made this point about there being an interim person as part of the as part of the plan is part of the transition plan. Absolutely. And you brought in earlier the topic of the funders let talk about that. What should the interim person be saying to the individuals and the institutions that are supporting us? So that’s part of the communication plan? So there’s a communication plan that should go out so the head of development should be working very closely with ian from executive director and the board chair to really talk to all the donors. I’m very concerned about institutional donors because i see a lot of foundations often put funding on hold when there’s a leadership change, so talking to them assuring them about what, how smooth the processes so they understand that there really is a process that the organization is being will manage during the transition seems to make a big difference for funders talking to individual donors about the mission of the organization and moving it from the profile. The leader to the work of the organization really sets the stage for the new leader to commence if you have these succession and transition plans in place, should you share them with institutional funders at the time that you’re making the proposal just toe say, maybe you’re just in a short paragraph that there’s there’s been considerable planning in case there should be a leadership change during the period of your funding? Is that worthwhile? That’s absolutely critical. In fact, thunders are starting to ask for it or that you’re seeing that, yes, they’re starting to ask, what kind of succession planning is in place often old they’re concerned about is the emergency short term planning, but they want to know that organizations, they’re starting to think about it, okay? And since you mentioned the emergency short term planning, let’s, let’s, talk a little about the emergency succession plan. What is that that’s? A new emergency plan for a temporary absence and that’s really, when i say temporary it’s really three to six months of an absence of the executive for a personal issue? Or again, you know, if they have to lead a major panel or a major project, but it’s really good to be short term, so we know they’re going. To be coming back quickly? Yes. Ok, i would just say that the expected contrast with the other planning we’ve been talking about the expectation here is that the person is going to return right here. They’re going to return. They may have left for a health issues they may have left from it, you know, pregnancy we’ve so we know it’s really interim planning, all right. And what should be the parts of our emergency succession plan? The parts are whose designated to assume leadership in the axe in the absence of the chief executive. What a story they have. Um, what the process in place to contact and inform staff how you’re going in for major stakeholders like your donors, who’s going to do that communication and what role staff will have in the absence of the chief executive of the rolls are clearly going to change temporarily. So it needs to be spelled it really clearly who’s going to do what and who’s going to manage and how decision making is going to happen. And then the last piece is very critical is who on the board is going to oversee this? It could be the board. Chair or it could be another member of the executive team that’s charged with overseeing the running of the organization during the interim absence of the chief executives. Can we hire one of these outsource interim executive directors to fill this role? Or is that is that not appropriate? For some reason, i not heard many organizations deciding to hire an outside if it’s just a temporary leave. Okay, okay, because there will be an opportunity for some of the staff to step up, step up knowing that it’s short term, sure enough, right? You’re right, that makes more sense. Let’s, let’s, go back to the to the institutional and individual funders. What is the well? Is anything more than the interim executive director needs to be saying aside from the that there is a plan in place and we’re managing transition carefully? No, because after that that’s really the responsibility of the inn from after that it really full to the development professional on the board chair to continue to have conversations with their funders and to continue to make them comfortable with the transition process. And again, you’re emphasizing the board is involved in this part of the communication actually, during a leadership change, i think that’s really the most critical time for the board to step up. That’s really their role, although they do fund-raising and they oversee policy, the board’s role in a transition is the most critical role they have. Okay, so it’s not only the board chair. Oh, no, no, really it’s really the board chair is leading it, and the executive committee is taking an active role. But it’s a really important time for the board. They’re also going to be involved in the search process for the new executive. So it’s, a very critical time for the board as well. Okay, we have just a couple of minutes left and i want to ask what it is that you love about the work that you do around transition. Oh, another wonderful questions. Um i think it’s exciting to help people think about change on embrace change and go towards change rather than running away from it. So it’s, always fun to watch the paradigm shift as people really get excited to think of that change. But people fear change. So why is it you write it’s? I’m envisioning you as a firefighter. You know, everybody’s running out of a burning building. And you’re the one running in with a hundred pounds of hose on your back. Why are you running toward on dh? So so in love with what people fear so much? Uh, mostly because it’s inevitable. Um, no matter how much you trying to avoid change, it’s the only constant we can count on. So we might as well embrace it and figure out how to use it in our favor. Very pragmatic. It’s. Very realistic. Brazil. Rosenwald, co author of when leaders leave, you will find that book at transition works. Dot com priscilla, you need to be one and thank you. Oh, soon to be on amazon. Okay, you’ll find it there as well. Honey, you’re a pleasure. Oh, thank you, it’s. You not to keep well, there’s, no more chances for your tio. Thank me for my great questions, but thank you for being so gracious and loving all my questions. Yeah, it’s been a real pleasure having you. Thank you, priscilla. Thanks. Take care next week. Getting to the next level. Lawrence paige nani is author of the non-profit friendraising solution based on his work as an executive director and fund-raising consultant, he has many proven strategies to get you to the next level of fund-raising revenue that ubiquitous question, how do we get to the next level? Lawrence has the answers next week. Rally bound is a sponsor, which i’m very grateful for. 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BOOst Your Major Gift Asks With Planned Gifts

Image courtesy of Pink Sherbet Photography, Creative Commons license
Image courtesy of Pink Sherbet Photography, Creative Commons license

A strategy to improve your major gift solicitations: include planned gifts.

When you ask a prospect for a major gift, include a planned gift. It can be as simple as a bequest in the will; as middle-of-the-road as a charitable gift annuity; or as high-end complex as a charitable lead trust.

You’ll have to beat off the gifts with your broomstick!

The Planned Giving addition adds a dimension to your solicitation. Now you have more to talk about if your prospect balks at the outright ask. You can reduce the outright ask and add more to the planned gift.

It’s best if you don’t add dollar-for-dollar because the planned gift won’t mean cash to you until the donor’s death. The exception is a lead trust, but those are quite rare. Instead, add to the planned gift the future value of what you’re not getting outright. Here’s a future value calculator.

You’ll have more to negotiate around. The negotiation dance is one witch is critical after your ask.

The added planned gift can also act as a straw man. It’s harder for your prospect to turn down both the major gift and the planned gift. Gutting the planned gift out of the solicitation–like a pumpkin becomes a jack-o-lantern–makes it more likely the major gift remains intact.

The greatest success I’ve seen with this arises because you’ll have more variables in your solicitations. There’s more to talk about and listen to.

Talk half as much as you listen and you’ll have bewitching successes with your major gift solicitations.

P.S. This is part of October’s Nonprofit Blog Carnival, Major Gifts Tricks and Treats, hosted by Claire Axelrad.

Can Planned Giving Prospects Reply On Your Reply Card?

Happy birthday note

When my mom turned 78 over the summer she got the birthday note above from a 70-something friend of hers. The writing gets me thinking about the design of Planned Giving reply cards so that your elderly prospects can use them.

It’s timely because we’re in year-end mode.

The thoughtful note is written by a shaky hand that requires extra space to be legible. That means your reply cards need to have lots of vertical and horizontal space if you’re asking people to fill in their name, address, etc.

The best practice–and the one I urge my clients to adopt–is to send personalized reply cards. The name and address are laser printed, either after the card is printed in bulk or at the same time.

But you may ask prospects for their email or phone, even on a personalized card. Leave lots of space between lines (horizontal) and make the space large vertically.

If a mail house prepares your postal mailings, personalizing reply cards adds to your expense. Where you hopefully had a double match, between outer carrier envelope and letter, you now have a triple match. That costs more. (I say “hopefully” because no Planned Giving letter should be addressed to friend, sir or madam, or anything other than the prospect’s name. I said a lot more about writing letters in two posts for GuideStar here and here.)

If you prepare your mailings in-house or can’t afford the expense of the triple match, design your reply card with plenty of space for elderly hands that may be afflicted with arthritis, nerve damage, be painful, shake or just need lots of room to write.

This is but a small part of focusing on the needs of your Planned Giving prospects and donors.

It will be appreciated.