The For Impact Funding Roadmap has been built, tested, and refined in working with thousands of organizations to raise over $2Billion. Though each organization is unique, we believe the Roadmap has universal application – Whether you’re a startup, a college running a large campaign, or an international NGO – every funding initiative needs a STORY, a TEAM, and a FUNDING PROCESS. [Download the PDF.]
Here are some quick thoughts on the Roadmap. [We’re also leading a teleseminar this Tuesday with more explanation, examples and help to APPLY the Funding Road Map to your funding. Register here.] Design your STORY The funding roadmap begins with STORY. A great story is anchored in hope-filled purpose, simplifies what you do, and serves as a litmus for action.
Design your PRESENTATION. The ‘ASK’ is an experience. We actually stop to think about the complete experience, from predisposition, to the environment, to the materials.
Really important point about STORY. This is not just a ‘funding thing’ – It guides your IMPACT and provides MEANING for your TEAM. Organizations so often enter a cycle of strategic planning – I wish there was a norm to enter into a cycle of STORY planning!
Develop your TEAM Jim Collins says, “First WHO, then WHAT.” With our Funding Roadmap we might say, “First WHY, then WHO, then WHAT!”
Commit to SALES. Every organization needs to STOP and make a commitment to sales. What does this mean for your team? For your organization? For your strategy/resources?
Engage LEADERSHIP. Leadership needs to be bought into the STORY and likely even the source of the STORY. Leadership also needs to be bought into the model.
Model TEAM SELLING. This is about defining roles and responsibilities for staff, board and champions. Important note: In a true sales model, your board is not responsible for fundraising! In a true sales model there is a role for board members that is very different from saying they are responsible for fundraising.
FUND your VISION
Identify/ Prioritize/ Strategize your PROSPECTS. Prospects. Drive. Everything. There is a lot to say on prospects (that’s why we have a whole guidebook) but here are some key points:
When building a strategy ask this question, “What would it look like to maximize this relationship?”
Maximize relationships at this given moment
Just VISIT. In the words of the prolific sales trainer, Brian Tracy, “Spend more time with better prospects.” We’ve been teaching this for years. There is so much value in the old maxim, “JUST SHOW UP.” The visit is the entire context for the ASK. It has three parts:
Just ASK. This is kind of an alpha/omega to everything we teach.
Finally, it’s worth tying this all together as it relates to the For Impact Point of View:
Here’s a topic that comes up often with some of our coaching clients – Especially when there is lack of role clarity around maximizing relationships!
A NATURAL PARTNER (N.P.) is a person (either inside or outside of your organization) who has a strong relationship with your organization and an existing relationship with the Qualified Prospect(Q.P.) – Or a reason to believe one can be established quickly!
Externally, Natural Partners can be on your Board, they can have a business relationship with the prospect, they can be members of the same club or organization or they can be fellow community leaders, etc.
Internally, the Natural Partner can be anyone from the President/Executive Director to top senior leadership, to a staff/programming person who has a great relationship with the prospect.
It’s important that you determine the difference between a RELATIONSHIP MANAGER (R.M.) and a NATURAL PARTNER.
The RELATIONSHIP MANAGER does not necessarily have to have an existing relationship with the prospect. Their job is to do exactly what it says – MANAGE THE RELATIONSHIP. The Relationship Manager is always a member of the ‘Green Team’ – I.e., directly responsible for maximizing relationships on behalf of the organization/impact. It is perfectly fine for multiple people within the organization to have a relationship with a Q.P. – as long as the Relationship Manager has been defined.
The NATURAL PARTNER can have an existing relationship, or the ability to create one immediately, but most importantly, they play and instrumental role in Team Selling. They can:
Help get the visit! Opening doors is one of the most productive things N.P. can do!
Predispose the Prospect to a great visit! A N.P. can send a great note ahead of the visit – “I know you’re meeting with Sharon on Friday – I’m so excited for the two of you to meet, for you to hear about the vision and getting more involved in our impact! I’ll check in with you after”
Follow Up! A call from the Natural Partner (after a check in with the R.M.) can be hugely beneficial. “How did it go? What did you think? What can I do to help?”
I’ve just returned from a trip to Ireland. I had a number of great meetings with social entrepreneurs and conversations about ‘social entrepreneurship’.
In Ireland and certainly here in the states, I think Social Entrepreneurship still represents TWO frames. The first is having to do with earned income. (I’m reposting thoughts from 2008 below)
The second frame is more broad. It represents the entrepreneurial attitude for change or impact. It’s this second definition that I like and it’s also this second frame that is starting to define the social sector. Go to a nonprofit conference and notice the average age. Then go to a similar conference organized for ‘social entrepreneurs’ and again, note the average age.
We’re obviously fans of the social entrepreneurship because the very term invites challenging thinking and norms. That being said, I don’t think one room (or conference) is superior to another in terms of commitment or values. It’s worth noting that the conversation-at-large is generationally shifting. If it weren’t for the IRS I could argue that in 30 years we might not have a ‘non profit sector’; it might become the ‘social (entrepreneurship) sector’.
Fundraising on a Napkin summarizes 30 years of fundraising achievement into simple, bold and actionable ideas that any organization can use – Non Profit, For Profit, Social Entrepreneur or NGO.
Whether you’re looking for strategic clarity, ‘sustainable funding,’ a jumpstart in major giving or just no-fluff advice that works – Fundraising on a Napkin delivers on all fronts. Over 3.5 hours, we will share stories ‘from the field’ and the successful and innovative ideas that have transformed thousands of organizations and raised over $2B, including:
How to get strategic clarity
How to simplify your message and communicate the vision
How to find and engage with great leaders, prospects and champions
How to build a high performing leadership team
How to build an effective culture around funding the vision
How to ask
This high energy, motivating session will give you a road map you can follow to re-design (or design) your organization for impact and income success.
WHAT TO EXPECT
Example-based coaching throughout the day
Lots of interaction so you don’t get bored – this is not one of ‘those’ workshops
Proven frameworks and, to the extent that we’re able with time, one-on-one strategy to help you apply the frameworks
No power point (see no. 2) but lots of visuals
Simplicity. Complexity is not actionable, so we give you the tools that will have the greatest R.O.I. to your organization in the near term (next 100 days) and longer term (next 1000 days.)
Value that goes beyond funding! We’re all entrepreneurs, so while we always want to create value in the form of funding results, there is a huge personal development theme to everything we do.
WHO SHOULD ATTEND
This workshop is for Executive Directors, Board Leaders and Development Professionals – Any and all responsible for shaping and implementing funding strategy.
Don’t miss the opportunity to experience a For Impact workshop in a city near you!
Join us in Dublin, Ireland and NYC for the For Impact Funding Boot Camp; and in Colorado Springs, Denver and Los Angeles for Fundraising on a Napkin.
For Impact Funding Boot Camp Dates & Locations:
Tuesday, September 6, 2016 from 9:30 AM to 5:00 PM (IST)
Ireland Info & Registration(Super Early Bird Pricing still available)
Tuesday, September 28, 2016 8:30 AM to 4:30 PM – Wednesday, September 29, 2016 8:30 AM to 12:00 PM (EST)
810 Seventh Avenue
52nd & 53rd Street
New York, NY 10019 Info & Registration(Early Bird Pricing still available)
Fundraising on a Napkin Dates & Locations:
Thursday, September 8, 2016 from 8:30 AM to 12:00 PM (MT)
Tim Gill Center for Public Media
315 E. Costilla Street
Colorado Springs, CO 80903 Info & Registration | Overview
Thursday, September 15, 2016 from 9:00 AM to 12:00 PM (MT) Colorado Collaborative for Nonprofits 789 N Sherman St, Ste. 100 Denver, CO80203 Info & Registration | Overview
Tuesday, October 11, 2016 from 8:30 AM to 12:00 PM (PT)
155 N. Occidental Blvd.
Los Angeles, CA 90026 Info & Registration | Overview Save as a For Impact Community Member: You can save $100 (full price $145) using discount
Reposting one of our most popular nuggets from Tom about how to measure success and productivity in your Development Operation.
RETURN-ON-INVESTMENT: What every Investor wants from their investment and what every For Impact organization should want from its development/advancement/fundraising effort.
I feel this concept is completely absent or totally misunderstood from our sector – Something I want to help change.
With all due respect to the industry, I just don’t get it. An organization invests money and resources in their development/fundraising operation (whether it’s a one-person shop or 50 people in the college advancement division) but doesn’t measure that RETURN-ON-INVESTMENT. I’m not sure how else you would measure productivity or success without making ROI the #1 barometer.
ROI is very simple to calculate. It’s a numerator/denominator math problem:
Here’s how much money we Raised (the numerator).
Here’s how much money we spent/Total Expenses (denominator).
R – TE = NET, NET, NET CHECK/FUNDS to support IMPACT!
In the For Impact approach, the development function ‘write checks’ to the IMPACT.
R ÷ TE = ROI and COST OF FUNDRAISING.
For example, if you are a hospital foundation raising $2M a year in ‘fundraising Revenue and your total expenses are $1M then your ROI is 2X or 100%; and your cost of fundraising is 50%.
There are two ways to increase your ROI and decrease your cost of fundraising:
Increase the Numerator (Revenue)
Decrease the Denominator (Expenses)
In our For Impact world, our own benchmarks are as follows:
3X is minimum model/benchmark.
4X is great.
5X is something you should be very proud of.
If you’re running a Campaign within an existing development operation or as a separate initiative, I believe the cost of fundraising should be a nickel (five cents on the dollar.) That would give you a 20X ROI.
If you are a For Impact leader, senior staff, executive director or a board member, I hope the above gives you some sense of comparison.
Note: One last example of why ROI is a completely different level of thinking than simply “This is how much money we raised this year.” I can guarantee a small not-for-profit organization an additional $100,000 this year – Hire two ‘major gifts officers’ at $50,000 apiece. Send them to For Impact Boot Camp. I guarantee that they can go out and raise $100,000 in the next year (combined.)Same thing would be true with a larger organization at $1M. Hire five major gift officers at $200,000 each. I’m fairly confident if they followed any sales process they would each be able to raise $200,000 in the next year for a total of $1M.
The vision for your organization must live in one person’s head.
The vision can’t sit with a committee. Many can contribute to the building of a clear vision but, there must be one person that holds that vision. This ultimate vision keeper could be the CEO or it could be the Board Chair.
We use this nugget often as the first step toward strategic clarity – many leaders don’t realize they’re trying to juggle or navigate 3-4 visions.
The ultimate vision keeper is often trying to make room for others – inviting them to contribute to the vision. This can be great, so long as it’s clear that there will be one person that ultimately owns the vision.
We use a Leadership Consensus Building (LCB) framework on nearly every project. At the highest level, this is a versatile framework to:
Create clarity around vision, message, priorities and plan,
Get others ‘on board’ with these elements, and
Build (funding) momentum.
This visual illustrates the LCB Framework:
I often describe Leadership Consensus Building as similar to coalition-building – You’re bringing people together around an idea, cause or vision and creating priorities, goals and buy-in. A natural result of this process is that everyone becomes invested in the outcome!
Leadership Consensus Building can be used in many ways and can help with these specific challenges:
Getting a board ‘on board.’ Think about strategically engaging each board member one-on-one (or in small groups) as part of this framework. (This is much better than holding a retreat and herding cats.) And, you can use a team gathering to start or conclude the process – We often do this in the form of a Vision Day!
Determining (funding) priorities. We often employ the framework to help with organizational development and strategic planning – facilitating this process to engage key leaders and stakeholders, listen to key issues and keep framing toward a common goal. The framework is essential to effective strategic planning with a team.
Predisposing prospects for campaign funding. This a great way to test and strengthen your message with your best prospects. Depending on the prospect you can say, with authenticity, “We want you to be our lead funder on this so it makes sense to sit down and talk through the priorities and plan well in advance of that conversation.”
Testing feasibility math. Leadership Consensus Building is about engaging key stakeholders with a working version of your message, model and math. It brings ‘to the market’ a real message and plan for discussion – versus a hypothetical! This is an alternative to a traditional feasibility study which means you can be…
Building funding momentum (while you figure out ‘the next big thing.’) I see too many teams who are waiting to engage in a funding conversation until _____ . While you get stakeholders on board with a vision and plan, this framework allows you to be sharing a future project AND asking for a commitment for a CURRENT project.
Because we spend so much time teaching this to leaders, I’m going to record a seminar on the subject this Tuesday, June 14, 2016. Blog readers can participate for free – More info and registration. On the call, I will walk through this visual and illustrate how it can be used in various ways, giving examples you can model. Actions:
Download and use the LCB Visual above
Send me an email (email@example.com) and let me know how you’re using it.
And, email me if you want to talk about how we can facilitate this process for you and your organization.