Without a Strong Case for Support, Fundraising is Doomed…

Well, it’s most definitely the fundraising season. Northern Michigan nonprofits are percolating with fundraising events, board planning sessions, training, and strategizing. And the NorthSky consulting team is in the thick of it… assisting with planning, capacity building, and learning along with you. I’ve been dazzled by the innovation emerging from your work and impressed that you’re not letting a sluggish economy slow you down. But no matter how bold, creative and innovative your strategies, there’s really no escaping the necessity of having a vibrant case for support as the foundation for your fundraising program. Donors simply have too many choices. Your nonprofit must stand out as being uniquely qualified to fill a critical need. And your case must resonate on both an emotional and business level. So where do you begin?

Developing the case statement is hard work and not very sexy, I’m afraid. It requires team effort (in the form of ideas and input) yet works best if a single heroic soul authors the document. You’ll find some great tools including a worksheet and a PowerPoint presentation in the NorthSky Online Resource Center. http://www.northskynonprofitnetwork.org/resource.php#JumpFundraising.

The case statement represents the nonprofit's business plan and outlines all the reasons a funder should invest in you. It should grab the reader's attention, provide your irrefutable case and "wave the flag" as to why your nonprofit is uniquely qualified to address the need. You'll find an outline and some samples in the PowerPoint presentation in our Resource Center. It's ideal if you can lay out your case using stories or testimonials that make it stick in the audience's mind.

Do you have any suggestions or sample case statements to share with us?

Results-oriented Nonprofits Lead in Performance!

The pressure is on nonprofits to capture data and report outcomes. Well, let’s be honest. The pressure has been on for quite awhile. Increasingly, our funders, accrediting agencies, and legislative bodies have required nonprofits to capture and report results. Now, it’s becoming more and more mandatory to actually use our data to improve performance! A series of studies report that nonprofit organizations that collect and use performance data to improve service delivery, business systems, and leadership practice, actually do perform better! Amazing! It works! But where to begin?

I think it's important to start with our clients. How well are we doing with them? Are they satisfied? Can we improve? What else do they need? Are we getting results? Collecting this information relies on communicating with users of our services. It can be as simple as capturing point of service surveys or as complex as tracking users via longitudinal studies. Regardless of the research tool, it's critical that clients are comfortable providing honest feedback and that we solicit it in an objective, unbiased manner. It's also important that we are open to acting upon our findings and making changes as needed.

In the NorthSky Online Resource Center, you'll find a number of tools to assist in collecting client satisfaction data. Check it out at http://www.northskynonprofitnetwork.org/resource.php
and share your own tools and ideas by posting them here.

Enjoy the spring!
Pam Evans, NorthSky Principal Consultant

Change is in the Air...

It’s the planning season with nonprofit teams throughout our region working tirelessly on new initiatives, partnerships, and strategies to bolster performance and address a dramatically shifting environment. The NorthSky team is involved in some of this work and we’ve been dazzled by an impressive display of innovation, open-mindedness, and yes, dare I say it, courage!

Change isn’t easy for anyone. And as dramatic as it sounds, it does take courage. Whether you’re the change agent championing a new approach or initiative that the rest of the team isn’t quite ready for, or the “changee” being pushed to do things differently; it’s tough work. Even the most positive change, such as moving to new office space, using new computer technology or enhancing management systems, can be uncomfortable and challenging.

Yet, being effective change agents and understanding when it’s time to take on change, is an essential skill and competency for nonprofit leadership. It’s an ongoing part of our nonprofit world and we need to be very good at it.

Some suggestions that come to mind as you embark on a major change:

1) Involve folks in the change. While it may be tempting to go underground and map out the strategy in a bunker, the more you involve people along the way, the more engaged and supportive they will be…even of unpopular changes. Let them help identify challenges and develop solutions.


2) Navigating successfully through major change requires superb communication skills. Understand all your constituent groups and how to effectively reach them. Listen and respond to their concerns. You may not be able to meet everyone’s needs but you can provide clear information and a forum to hear their issues.


3) Be honest even if it’s a difficult message to deliver.


4) Stay focused on your mission and your clients/ customers. While internal changes to operations, staffing, or structure, may be uncomfortable, if it means a better, more secure, or stable way of serving the community, it will be easier to accept.

We’re all going through a great deal of change right now. Any other suggestions to share?

Clear as Mud: Defining Organizational Capacity Building

We’ve been spending time this week discussing organizational capacity building. It’s the world NorthSky lives in and we are frankly, immersed in it; considering such topics as how to build board effectiveness, infrastructure development, executive director talent, systems, measures…. well, the list goes on and on. But just try and come up with a clear definition of organizational capacity building. Barbara Blumenthal defines it as “the actions that improve nonprofit effectiveness including organizational and financial stability, program quality, and growth.” That doesn’t really go far enough, does it? Because we know that elements (beyond actions) such as behaviors, skill sets, attitudes, and culture all play a role in the capacity of an organization to thrive and sustain to fulfill its mission.

Paul Light, author of Sustaining Nonprofit Performance, describes capacity as “an output of basic organizational activities such as raising money, forging partnerships, organizing work, etc.” I like this definition better and it seems more in line with the real life experience of nonprofits.

While the definition may not be clear, it is clear that capacity building is worthwhile for every nonprofit. Completion of an organizational capacity assessment http://www.northskynonprofitnetwork.org/resource_drillDown1.php?recordID=185 is a good first step in that it not only provides data identifying where you are stronger and weaker but a forum for board and staff to learn and grow together.

Capacity building efforts can include a broad range of activities such as training, leadership coaching, systems development, performance measurement, and capabilities enhancement (such as marketing, financial management, and fundraising). The right formula varies for each nonprofit and is dependent on its history, leadership, and stage of organizational life cycle. The needs of a start-up organization are far different than that of a mature nonprofit… although, for some, they can be frighteningly similar. Well, that’s another story…

Paul Light says it well. “These are times that try the nonprofit soul.” Well, amen to that. But nonprofit leaders are a persistent group and we keep working at it.

Please share your thoughts on defining organizational capacity and strategies for strengthening it.

2010 and We're Still Trying to Figure Out Board Recruitment

January and it seems like everyone is talking about the need for additional board members and the difficulty in identifying individuals to round off and build their leadership. The NorthSky team preaches that it all starts with your board, that term limits are critical, and that a diverse board is a best practice. Isn’t that frustrating? You already know all that and we haven’t been very helpful in working with you to recruit new talent. Well, we’re really excited about our partnership with the United Way Volunteer Center and the opportunity to more aggressively recruit candidates for your board. Some suggestions as you move forward.

1) Conduct a composition analysis. We have two great tools created by Ameen & Associates in our online Resource Center. http://www.northskynonprofitnetwork.org/resource.php#JumpGovernance Use them to identify the ideal composition of your board, who you already have and where there may be gaps that present recruitment opportunities. If possible, tie the ideal composition of your board to the priorities you’ve identified in your strategic plan and vision.

2) Recruit carefully and don’t rush the process. Consider requiring candidates to serve on a board committee prior to joining your board. It’s always a good idea to date before you get married.

3) Prepare to start new board members off on the right foot with a comprehensive board manual and solid orientation. You’ll find outlines for these also in our Resource Center. http://www.northskynonprofitnetwork.org/resource.php#JumpGovernance

4) Consider sending new board members to our session “The Board Primer” scheduled on February 4. This session provides the specifics about the fiduciary role and responsibilities of nonprofit board members and what it means to be a “best practicing” board. Even experienced board members will gain something from a refresher course and an update on what has changed in the nonprofit world.

5) Get new board members engaged immediately by giving them an assignment. One of the common complaints we hear from board members is that they are bored. Bored??? How is that possible?

Oh, and yes, it’s o.k. to pressure NorthSky to help more. It does motivate us to look for creative solutions to your problems.

Any other suggestions about board recruitment to share?

Change Takes Time and Other Thoughts on a Snowy Morning

As the holidays approach, the push is on to wrap up projects, close off files, and tie off loose ends. Rush, rush, rush… and then it snows. It really snows! It’s a complication for some folks who are still out there maneuvering through snowy roads and forced to re-schedule essential meetings. For others, it’s a respite providing quiet time to work at home and to catch up. For me, it’s been both. I’ve been out some and in some. A few steps forward, a few steps backward. But ultimately, we have to accept that we just can’t control the weather and we revise our plans, create a new “to do” list, and use a different approach to meet critical goals.

It’s the same with our nonprofits, isn’t it? As much as we try to push through changes and implement critical strategies on an aggressive timeline, it often just doesn’t work out, does it? Our board, our staff, and our constituents need more time to process change and understand the implications. As much as we’ve communicated and educated, they just aren’t there yet. Change management is an area that can be painfully slow and test the patience of the most deliberate, laid back leader.

Some suggestions to consider if you are in the middle of a major organizational change:

1) Involve folks early so they have plenty of time to process the implications and understand the need. Address their questions and information needs. Involve the team in crafting the roll out plan and identifying the “to do” list.
2) Be clear and direct about the reasons behind the change. Folks may not always like the change but if they can understand why, they’ll have an easier time accepting it.
3) Communicate in multiple ways. People absorb information in different ways so tell them verbally, put things in writing, and communicate through using data and illustrative examples.
4) Be prepared to communicate some of the same information over and over.

And take advantage of snowy days when the roads are impassible to catch your breath and fine tune your change management strategy as needed.

Any other suggestions regarding change management?

Strong Governance Relies on Board Chair/ E.D. Partnership

As the NorthSky team considers strategies for strengthening nonprofit governance, a key success factor has emerged in our thinking: the relationship between the board chair and executive director. During a professional development session this week, the speaker cited Peter Drucker (ahhh... remember him?) and his six characteristics of exceptional nonprofits. Near the top of his list is a strong board chair/executive director relationship. He specifically describes a positive working relationship with trust, adaptability, and flexibility. We’ve certainly seen the wisdom of this play out in our own northern Michigan nonprofits.

Developing an excellent board is an ongoing process. While many organizations are looking for a quick fix (maybe out of immediate need), their efforts may be doomed until they realize the necessity to build and nurture the relationships between the board and E.D./senior staff. As with the complexities of any relationship, it is an investment of time for those involved. That time investment, though most likely competing with other priorities, is essential. I remember seeing a statistic that many executive directors spend 35% of their time working with their board. To me that is a numerical representation of the importance of the relationship. It is fairly representative of the amount of time I've spent as an executive director in past roles. I figured I was at about 30-35%.

While there are competing challenges and priorities, these challenges reinforce the need to have a high-quality relationship between the board and E.D./senior staff. Nonprofits need a board that knows its work, the needs of the organization, has a manageable job and tools to facilitate their work. They should also enjoy the relationship so that their time spent with the organization is a priority both because of their passion for the mission but also because it is enjoyable. It isn't to say that the board doesn't do hard work but it is how they feel about doing the work-its importance, pride, sense of accomplishment, sharing, laughing together, etc.; it's a complex relationship.

Some of the tools that can be helpful include board development plans, board self-assessments, orientations, board manuals, board commitment letters, empowering board leadership and board agendas and continuous reinforcement of the work of the board. None of these individually, or collectively, are the answer but they can be useful in helping the board systematically consider what it's work is, how well it is doing it, what professional development it desires, etc. I've also been thinking about a peer cohort group of board presidents. . . .

Let me know your thoughts.

Debbie McKeon
NorthSky Executive Director