Issue 59
May 23, 2007

NEWSNOTES is a monthly email newsletter published by NEW. It covers resources available at NEW in Ann Arbor as well as items of interest to the nonprofit community in southeastern Michigan. NEWSNOTES is proud to celebrate its sixth year of publication, with delivery to over 880 subscribers every month! We welcome your feedback and suggestions!

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IN THIS ISSUE

LEAD STORY

All You Can Eat: The Board Fundraising Program

By Andy Robinson*

If you listen carefully, you can hear the development director’s lament: “If only my board would raise more money….” In a recent survey, members of the Association of Fundraising Professionals cited trustee fundraising (or rather, the lack of trustee fundraising) as one of their most vexing challenges.

As someone who leads a LOT of board fundraising workshops, I’ve discovered the simpler the message, the better the results. Therefore, I propose three non-negotiables for board fundraising involvement.

• Give a significant gift. Here’s the preferred language: “Because you’re a leader in this organization, we expect to be one of the top three nonprofits you support financially this year.” Sounds fair, doesn’t it? There is no way to formally enforce this – you must rely on the honor system – but it sends the appropriate message and encourages “stretch gifts.”

• Identify prospects. 70-80% of adults contribute to charitable organizations. Each of us knows 150-200 people. So, in principle, we all know at least 100 prospective donors. Not all of these folks are necessarily wealthy – or even interested in our cause – but the bottom line is that everybody knows somebody who can give something. Solicit enough of these somebodies and it adds up to real money.

• Participate in fundraising activities. I don’t believe in the “give or get” mantra. Board members need to be both givers and getters. However, they deserve some latitude in choosing the fundraising activities that best suit their skills and inclinations.

Every development director’s fantasy begins and ends with board members asking for major gifts: soliciting the most generous donors face to face. This is, I agree, optimal board fundraising behavior. It is also the one they most strenuously avoid. Saying this differently: What works best is the thing that most trustees are least willing to do.

Those of us who train boards are faced with an interesting dilemma: do we keep hammering away at major gifts, or do we look for other avenues to productively engage our volunteer leaders?

One possible solution is the board fundraising menu. Here’s how it works:

• A team (staff and board together, or perhaps simply staff) develops a list of specific board tasks that would support any aspect of fundraising. The list would include direct asks, but also sending event invitations, phoning donors, hosting a fundraising house party, writing personal thank you notes, soliciting in-kind services, approaching business contacts, and so forth.

• The list is then organized into a menu of opportunities. This could be a literal menu, with appetizers, entrees, and desserts (see the example from the Ohio Environmental Council). Typically appetizers cover prospecting and getting to know donors; entrees are about asking for money; and desserts involve donor recognition and engagement after the gift.

• The menu is introduced at a board meeting, perhaps as part of a fundraising training, and the various options are discussed.

• Each trustee then chooses the activities he or she wants to pursue. In the same way people avoid certain foods, not every fundraising option is appropriate for every trustee – but if the menu is varied enough, everyone can find something they’re willing to do. Some organizations encourage a “full meal plan,” with at least one activity selected from each category.

• This information is used to produce individualized fundraising agreements that guide each board member’s activities.

Notice the psychology of this approach. Rather than asking, “Will you help us raise money?” or demanding, “Everybody will do five donor meetings,” the conversation is reframed as, “Here’s a list of activities. Which of these would suit you best?” In other words, not participating is not an option, but everyone has choice in how to participate.

This menu model also creates opportunities throughout the year to provide coaching and enforce follow-through. If Sally chooses to organize a house party in June, somebody (perhaps a member of the development committee, guided by staff) would be assigned to call in April and check in: “Sally, have you started thinking about your fundraising party? Are you putting together a guest list? How can I help?”

To further encourage follow-through, you could also do a round of check-ins at each board meeting to:

• Find out how everyone is progressing on their personal fundraising goals

• Acknowledge and thank those who are making an effort

• Reinforce the message that everyone will participate.

One final note: There’s no magic to this approach. It may even lead to turnover on your board. (Perhaps not a bad thing?) This strategy works because it follows the old community organizer’s credo, which is also the first rule of behavior change: Start with people where they are, not where you think they should be.

*Andy Robinson provides training and consulting for nonprofits in fundraising, grantseeking, board development, marketing, earned income, planning, and facilitation. Copyright © 2006 Andy Robinson. All rights reserved. The author holds the copyright to the article, Reprinted with permission from Charity Channel Nonprofit Boards and Governance Review, November 29, 2006.

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Additional Resources

• Books on board fundraising, including Andy Robinson's Big Gifts for Small Groups: A Board Members 1-Hour Guide to Securing Gifts of $500 to $5,000.
• Michigan Nonprofit Association (MNA) workshop “Opportunities Go Where Relationships Flow” with Marshall Howard, author of Let's Have Lunch Together. Wednesday, June 6, 8:30 a.m – 4:15 p.m. YouthVille, 7375 Woodward Ave., Detroit. Register online. Call MNA for more information 517-492-2400. CANCELLED
  

FEATURED ITEMS

MNA Reception for Washtenaw County CEOs

Tuesday, June 5, 4:30 p.m. – 6:00 p.m.
NEW Center, 1100 N Main St., Ann Arbor

Michigan Nonprofit Association’s (MNA) Metro Detroit Office is hosting a networking and learning session for nonprofit chief executive officers in Washtenaw County on June 5. Take this opportunity to meet Charlene Turner Johnson, executive director, and learn more about MNA’s services to help support your mission. There will be a brief program: How to Bring Your Nonprofit Board from Good to Great based on the Jim Collins book Good to Great, presented by Carmen Johnson from AT&T. Join your peers and RSVP to Deborah Foster. (313-309-1650).

Board Connect® Trainings

BoardConnect® is a nonprofit board training and matching service that builds the leadership skills of nonprofit and community members. Take advantage of these learning opportunities coming up soon:

• Building Your Board - Recruiting a Winning Board
  Thursday, June 7, 9:00 a.m. – 12 noon
  NEW Center,1100 N Main St., Ann Arbor
  $55, Members of MNA and/or the Detroit Regional Chamber receive a discount.
  
  Learn strategies for recruiting, cultivating, and electing new members to your board of directors. Also, get information about Boardconnect’s® matching services and boardnetUSA, a national online database that connects candidates and nonprofits.
  
  
• BoardConnect Southeast Candidate Training (Troy): Serving on a Nonprofit Board - Essentials of Becoming a Nonprofit Board Member
  Tuesday, June 12, 2:00 p.m. - 5:00 p.m.
  Leadership Oakland, 4555 Investment Dr., Lower Level, Troy, MI 48098
  $55; Detroit Regional Chamber Members receive a discount.
  
  Learn about the five main responsibilities of board membership and how to find a match with a nonprofit that is good fit for your expertise. Develop your leadership skills and offer a valued community service through BoardConnect Southeast.

Find more information and register for these and other sessions on the BoardConnect® website. Call BoardConnect (734-998-0160 x239) to find out how this dynamic team can help strengthen your board with personalized, onsite trainings and other resources.

New IRS Filing Requirements

Beginning in 2008, small nonprofits will be required to file an annual electronic notice, Form 990-N, also known as the “e-postcard.” Up to this time, exempt organizations that normally had less than $25,000 in gross receipts did not have to file an annual information return (Form 990) with the IRS.

The IRS will be sending information about the e-postcard to exempt organizations this summer. Please be sure your organization’s address filed with the IRS is up to date. If you need to register a change of address, file Form 8822.

The e-postcard will be due every year by the fifteenth day of the fifth month after the close of the organization's tax period. This is the same due date as for Forms 990. Failure to file the e-postcard for three consecutive years will result in loss of exemption. Reinstatement of a lost exemption will require re-application and payment of the appropriate user fee.

If you would like additional information about this new filing requirement, including notification when the filing system is ready, or information about other new developments, subscribe to Exempt Organization’s EO Update, a regular e-mail newsletter that highlights new information posted on the Charities pages of www.irs.gov.

Also: Nonprofits filing the Business Income Tax Return (990-T) must be aware of changes to this form. The Pension Protection Act of 2006 requires that organizations make this form open to public inspection. Get detailed information here.

Simple Syndication......REALLY!

The latest Internet innovation has hit ResourceConnect® -- Really Simple Syndication (RSS). With one keystroke you can be connected to the newest resources for nonprofit management. Your organization can also adopt the RSS technology to send news to members, donors, and other key constituents instantly and automatically.

Wikipedia defines RSS as "a family of web feed formats used to publish frequently updated digital content, such as blogs, news feeds or podcasts. RSS is useful because it helps aggregate lots of content into an easily accessible place." For example, if you want the newest fundraising resources, just take two minutes to subscribe to the free ResourceConnect® RSS feed and customize the list of topics to include fundraising. After that, every time a new resource is added to the database, you will receive a direct link to the resource in your web browser. Start today by going to ResourceConnect®'s RSS page. Don't hesitate to contact ResourceConnect® (734-998-0160 x 218) for assistance.

Once you have mastered the ResourceConnect® RSS feed, you can explore creating one for your own website. For more information on RSS feeds and how they can help your organization communicate in real-time, see this article on the xml.com website. Remember, too, that ResourceConnect® welcomes suggestions for service providers, websites, and print resources that can benefit the nonprofit community.

Nominate Model Philanthropists and Volunteers

• The Association of Fundraising Professionals Greater Detroit Chapter is hosting its 2007 National Philanthropy Day on November 15. They are currently accepting nominations for the Philanthropy Awards (deadline June 1) and Distinguished Volunteer Awards (deadline August 31) to recognize individuals, corporations and foundations in the community whose commitment to philanthropy serves as a model for others to emulate. Nominations forms can be downloaded from the AFP website.
  
  
• Blue Cross Blue Shield of Michigan is accepting nominations to recognize outstanding volunteers. The Caring for Children Angel Award (deadline June 1) honors volunteers who perform exceptional volunteer work on behalf of Michigan youngsters. The Claude Pepper Award (deadline July 1) honors two outstanding senior citizen advocates who have made a profound impact on older adults. Nomination forms can be downloaded from the Blue Cross Blue Shield website.
  

Big House Big Heart Run - Raise Money

Sunday, September 30
University of Michigan Football Stadium, Ann Arbor

Nonprofits are invited to form teams of runners to raise donations for their causes. Running Fit and other companies are sponsoring a 5 K and 1-mile fun run to raise funds for ALS research and C.S. Mott Children’s Hospital. Charities of all sorts may recruit runners who will accept tax deductible donations to promote their missions. Participants will start at The University of Michigan’s football stadium, run through campus, and end with a 50 yard line finish in “The Big House.” Get a team together and request a fundraising kit today! See the website for details.

Independent Sector Conference: Opportunity and Responsibility

October 21-23, Los Angeles

The Independent Sector’s Annual Conference this fall will focus on two interconnected ideas at the heart of the nonprofit community’s commitment to improving lives: opportunity and responsibility. As another critical election year looms, CEOs, trustees, senior-level professionals, and scholars are invited to discuss and seek answers to such questions as

• How can we weave together the responsibilities of government, nonprofits, and business to advance the common good?
• How can charities and foundations collaborate to bring greater health, security, and cultural vibrancy to our communities?
• How can our organizations reconcile the at times competing goals of independence, effectiveness, accountability, and innovation?

Early Bird Registration by June 22 saves $100.

Free Introductory Session of the Benevon Model

Wednesday, June 27, 1:00 p.m. – 3:00 p.m.
The Sarvis Center, 1231 East Kearsley St., Flint
Free of charge

Presenter Linda Ray will acquaint you with a proven system to rapidly identify and cultivate major donors who love your mission. This seminar is designed for board members, executive directors, CEOs, and fund development professionals.

Learn more about this session on the Benevon website. You must register if you plan to attend. Contact Alaina Szlachta (206-709-9400 ext. 132) for more information.

Reminders

• Career Change Boot Camp Series
• Update your organization’s entry in the Directory of Nonprofits – or add a profile if you’re not yet included.
• NEW's npServ program of shared administrative office technology can help your nonprofit increase efficiency and focus on mission deliver.
  

REGULAR FEATURES

Risk Management Essentials offers risk management advice from a nonprofit perspective. The current issue includes coverage of the new electronic filing requirements for small nonprofits. Subscription to this free, 3-times-a-year email publication also includes an every-other-week e-News.

Nonprofit Bulletin Board

Visit NEW's Nonprofit Bulletin Board to post and view notices about free resources, fundraising opportunities, and other items relevant to the southeast Michigan nonprofit community.

Events Calendar

Ann Arbor Area Convention and Visitors Bureau calendar of events. E-mail Nick Miller to request a password to submit an event.