Fundraising Forum: State of the Sector, Part 2

Editor’s Note: Part 1 of this virtual roundtable on changes in the fundraising landscape over the past year and what’s ahead for fundraisers in 2008 appeared in the December 2007 issue of FundRaising Success. Or you can find it by logging on to www.fundraisingsuccessmag.com/r?s=82939.

Margaret: Let’s turn this conversation around just a bit. Look back at this time last year. What has happened in that time that surprised you, caught you off guard?

Roger: What has been a pleasant surprise for me is that in this past year technology really began to show its power and potential. Especially Web 2.0 and the user-generated activity.

Polly: How much the new postal regulations would affect some of our clients’ campaigns.

Polly: Our creative and production teams have really had to meet the challenges of the new regulations and costs for premium packages; we’ve come up with some great solutions, but with a lot of extra effort.

Kurt: Now that I am seriously in the client-relation business, [the surprise has been] how backwards and ignorant seemingly successful nonprofits really are.

Margaret: In what ways, Kurt?

Kurt: Big ones, well-respected ones with strong brands are 10 years behind in so many areas.

Kurt: The Web is the easiest category for this, but look at the state of board development. How many truly strong, effective boards can we name? Is it 10 percent of the total?

Jo: Board development is definitely a challenge. Always has been. I agree it’s a sad state that some organizations have to succeed DESPITE them.

Kurt: I actually work with some nonprofits who think they are a necessary evil! “We gotta have ’em, but we don’t love ’em.”

Roger: Without good, flexible boards, they’re gonna fail.

Jo: Here’s the biggest problem: Most boards don’t see themselves as the problem.

Kurt: Truth is, we all talk about two things in our sector: planned giving and give/gets for our boards — and few of us do either.

Jo: But if your bylaws don’t support giving minimums or the like — and the boards don’t want to vote to change all that stuff — then you are in a Catch-22, right?

Kurt: You know the most important component of our board-development strategy at Boys & Girls Clubs? We required new board members to promise that BGCA would be their primary charitable interest while serving on the board. People told us we were nuts [but] now you can’t get on that board.

Polly: Overall experience level of fundraisers in the business is a real challenge.

Kurt: And that’s the second problem — good people ain’t out there. I wish I could name five people I would recommend for a high-level, comprehensive development position. And for cause marketing? Forget it.

Roger: Yes, leadership generally in our sector is a problem.

Margaret: Kurt, you’re painting a bleak picture. How do we turn this around? There’s been some debate over the usefulness of specific college-degree programs in fundraising. Is that the way to go?

Jo: Let’s not forget — we are still raising billions with all these negatives … and changing the fate of a lot in our sector!

Polly: What can we do as an industry to improve the education of our fundraisers? Conferences are good — but to be honest, I’ve been underwhelmed by the quality of some of the program content.

Kurt: Training. Where do you go to learn now? AFP? CFRE? Cause Marketing Forum?

Margaret: Do nonprofits have to attract more corporate-side talent?

Kurt: My experience with corporate talent is they get frustrated easily with our lack of resources. They’re used to just buying what they need. They also don’t understand the fact that our customer and consumer are two different people most of the time. It’s a long, hard transition.

Polly: I came from the corporate side — business-to-consumer, business-to-business. It was an easy transition, actually.

Jo: I came from package-goods marketing and found very quickly what Kurt mentioned. It was true — but it didn’t take me long to get “consumer” vs. “donor.”

Roger: We need to honor and hold up as examples folks like Jo who are making a difference in the sector. And we need others to understand why they succeeded.

Margaret: Does anyone want to offer some final tips on how fundraisers should be approaching their craft in the coming year?

Roger: With an overdose of curiosity. May everyone be a Thomas Edison.

Jo: Take one team internally you feel would be a fundraising help and break the silo — by asking them to help.

Polly: The Commitment to Consumer Choice (www.dmaccc.org) is going to be a challenge that everyone needs to be aware of.

Kurt: And for us to know what the consumer chooses, we have to do something we’re not good at — ask them.

Kurt: What we don’t ask is, “How do you want your information? How do you feel we are doing using your money? What would you have us do differently?” It’s more qualitative kinds of questions, I think.

Kurt: And make sure you have a vision!

Roger: And make sure you develop a Donor Satisfaction and Loyalty Index so you can track your progress.

Polly: Sharing ideas and results with your peers is essential — and also take advantage of outside fundraising counsel. Agencies are learning a ton from working with so many clients across so many sectors — leverage that learning!

Jo: To follow up with Polly — make sure your vendor/partners are all in-line with your vision. We do a big gathering every year of our partners.

Roger: Bless you, Jo.

Polly: Jo, you are our hero!

Jo: Well … crap … you don’t expect me to do this alone. If everybody knows what you are trying to do — then it’s their fault when it doesn’t work 🙂

Margaret: Thank you so much, everyone. I KNEW this would be a great group. FS