Instead, we PREDISPOSE the prospect or potential investor before, during and after the visit. We predispose them to our phone call to set up the visit … we predispose to the visit/presentation itself … and yes, we even predispose to the follow-up!
The word PREDISPOSE means to make someone inclined, in advance, to a specific action or attitude. You need to be predisposing potential investors:
To expect your contact,
To look forward to visiting with you about your amazing organization,
About your goals for the visit and how much time you need,
About when to expect your follow up and what you will be communicating in your follow up.
We’re big on the need to have one Master Prospect List! A great MPL rates and ranks your entire pool of Qualified Prospects/Relationships in descending order or importance. However, deciding who you’re going to see first is very different from simply starting at the top of your Master Prospect List and working your way down.
Instead, begin like Archimedes on his best day by trying to LEVERAGE your commitments – building on each visit and commitment as you move along.
Here’s a great way to think about ordering your visits: ‘MO-COs,’ ‘LEAD-COs’ and ‘CO-COs’.
MO-COs are MOMENTUM COMMITMENTS.
These commitments are not necessarily about magnitude or size but rather ‘COMMENSURATE’… ‘SURPRISE’… ‘STRETCH’ gifts. These are the ‘EARLY ADOPTERS’ who get it, buy in, and provide the MOMENTUM to get going. In Good To Great, Jim Collins’ would call these ‘FLYWHEEL’ commitments. In order to get a FLYWHEEL moving at the beginning, it takes a lot of energy. But once there is some MOMENTUM… the wheel flies!
LEAD-CO’s are LEADERSHIP COMMITMENTS.
LEADERSHIP can literally TRANSFORM the organization, the campaign or the project. These are ‘Top of the Pyramid’ lead gifts that prove that our best prospects and investors have stepped up and give everyone the confidence needed to make the campaign or project happen.
“LEADERS LEAD.” – Bob Werner
Thanks to my friend Bob, a big time Mensch and Jewish philanthropic superstar, for the quote. I believe that success (or failure) is a direct result of LEADERS LEADING. If no one steps up as the INTERNAL leader, a campaign is doomed from the get go. If you can’t find at least one EXTERNAL leader or CHAMPION, it ain’t gonna happen either. (My preference is 3 CHAMPIONS.)
If leaders are not ENGAGED and PASSIONATE, then it becomes ‘The Suddes Group Campaign’ or ‘The Executive Director’s Campaign’, etc. Tom Mucks, another successful former Suddes Group partner, says, simply: “Passion and commitment from LEADERSHIP will overcome all obstacles.”
CO-CO’S are CONNECTOR COMMITMENTS.
Going after some of your most important ‘CONNECTORS’ early on is a terrific strategy to not only get their financial commitment (which may or may not be significant) but also to generate REFERRALS and STRATEGY on getting visits with your best prospects.
SPECIAL NOTE ON REFERRALS AND 3º OF SEPARATION:
Remember you are only 3º away from any QUALIFIED PROSPECT!! (Forget Kevin Bacon and his 6º – It’s actually been determined that it’s 2.78 ‘moves’/connections between Bacon and all other actors.) CONNECTORS and other NATURAL PARTNERS allow you to be one or two CONTACTS away from your best prospects. This is very, very important! Realizing you are only 3º away from ANYBODY who is a QUALIFIED PROSPECT lets you use your NATURAL PARTNERS (Champions, Board Members, Key Volunteer Leaders, Current Investors) to get you there.
Extra Special Note: I am only 3º away from the Pope, the President and the Prime Minister of Israel. And, I’m only 2º away from the Dalai Lama! How? Because of my CONNECTIONS and RELATIONSHIPS, I can get to ‘someone’ who can get to ‘someone’ who can get to the Pope, the President and the Prime Minister.
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.
From the archives, but still relevant today – Read on for Tom’s thoughts on hiring.
Read a really terrific book called REWORK by the founders of 37 Signals. As are almost all of the books I really, really love, this is simply a collection of nuggets, loosely framed.
Three of the twelve nuggets from the chapter on HIRING really jumped out at me.
1. Hire when it hurts.“Don’t hire for pleasure; hire to kill pain.” I can’t tell you how many organizations I’ve been around that desperately want to hire a ‘Major Gift Officer‘ or more ‘Major Gift Officers’!
Nobody has prioritized their top prospects (Master Prospect List). Nobody in the organization has visited with their Top 10 or Top 20 or Top 33. There’s no Message, no Math, no Model.
Yet, we think hiring another development person/MGO is going to make some kind of difference. (more…)
NOW is a great time to turn SACRED COWS into HAMBURGER! NOW is a great time to shed BAGGAGE which is holding us back and keeping us from making QUANTUM LEAPS!
Any time I am in front of a audience, I ask people to spend time writing down the SACRED COWS of both the Non Profit Industry (Third Sector, Fundraising, etc.) and of their particular Organization. I usually provide some ‘yeast‘ with things like:
“We need this event to raise awareness/friends.” Special events are not ‘special’ and not ‘events.’ ‘Donors’ hate to go. Staff hates to put them on. The ‘triple net‘ is a very poor return-on-energy and return-on-investment.
“Peers must solicit peers (for money).”Just the idea of the word ‘SOLICITATION’ (the implication of which I cannot go into in a PG-13 document), should be enough to make you give up on this 1950’s idea!
“Feasibility studies are mandatory.”Internal leaders enlist external consultants to do a feasibility study for justification, CYA, and backup. Consultant conversation with a prospect goes like this: “If XYZ nonprofit org were to do a hypothetical campaign with a hypothetical goal, how much hypothetical money would you hypothetically give to this hypothetical campaign?” (UGH!)
I find it fascinating that allowing people to talk about their SACRED COWS and the baggage that they are carrying around unleashes such an enthusiastic response.
I encourage you to go ahead and ‘vent‘ but then get on to talking about real issues that need to be dealt with and that are still happening because “It’s the way we’ve always done it.”
It’s always a great time to get your team together and talk about turning all those SACRED COWS into HAMBURGER and dumping all the BAGGAGE that we are carrying.
On my trip around the world, I saw those ‘sacred cows’ walking around the streets of India. I also learned that once these cows become too old or die, the carcasses are shipped across the border and turned into hamburger.
Along those same lines, a Hindu sage, Ramana Maharshi, asks: “Would you carry your luggage on your head while on board a train?” He says we are not lessening the burden of the train by keeping it on our head, but only straining ourselves unnecessarily.
Special Note: We do take a hard line on many things we consider to be OLD THINKING. The good news is that if we take something away, we’ll always give you a NEW way to think about it. Read more about Sacred Cows and Change here.
Happy Birthday to our youngest grandchild, EJ, who turns 6 today! (I’m holding her in the photo below.)
Today is also my BirthDATE (March 19th is my birthDAY, thus today is my May birthDATE.)
Don’t forget to celebrate your birthDATE every month!
For the last 20 years, I have tried very, very hard to make my BIRTHDATE a special day every month.
I’ve been quietly trying to encourage everyone around me to CELEBRATE their own BIRTHDATE. And, not so quietly, I have challenged thousands of individuals at certain speaking engagements to do the same.
Here’s a great goal/challenge for 2016: Make your BIRTHDATE a special day for YOU!
Do something solo: Breakfast or coffee shop, with a journal or a book. A motorcycle or bike ride. A yoga class. Whatever.
Then, do something special with those you love: Spend a little time with the g-kids. Catch up with a sib or a child away from home. Have lunch with the ‘girls’ or a beverage with the ‘boys.’
I also use the 19th as the once a month review of my goals (lifetime, this year, upcoming 90 days, etc.) and to set Action Plan for next 30 days.
Most people laugh (hard) when I tell them to take their BIRTHDATE off. Yet, if we can’t set aside even one day every month for ourself… things are pretty screwed up.
Almost everyone who is looking for a senior development person or MGO (Major Gift Officer) is thinking:
“It takes a lot of money to get an ‘experienced’ Major Gift Officer …”
“I can’t pay the $80,000/$100,000 (or more) that we understand it takes to get this person.”
Bottom line: You are NOT constrained by SALARY in your search for TALENT!
Think about this creative/contrarian idea of finding TALENT at both ends of the “Talent Spectrum.” My favorite place to be looking for talent on this spectrum is on the far left or the far right. (And I’m not talking about political leanings!)
‘SUCCESS TO SIGNIFICANCE’
High Cost of Living
Make A Difference
Some thoughts on the ‘Spectrum:’
BEST & BRIGHTEST – Look on the ‘left’ end of the spectrum for incredibly passionate, excited, enthusiastic ‘BEST & BRIGHTEST!’ I would rather have two great, young, committed ‘Best & Brightest’ as Development Officers/ Major Gift Officers/Sales Staff … than an older, know everything, ‘experienced’ Development Officer. It costs the same, but I get double (triple) the coverage, usually with a much better attitude!
I look for ‘superstars.’ I love working with, coaching, mentoring the Best & Brightest. Look for young people who are unchallenged in their current job, bored, or just plain unhappy doing what they’re doing. Offer them an opportunity to MAKE A DIFFERENCE.
Seek ‘Best & Brightest’ if you’ve got a job that just requires a lot of energy, commitment, hard work, travel, etc. Don’t worry about lack of experience – think of it as no ‘baggage!’ Promise them an amazing experience, great contacts and ‘work’ days filled with challenges/meaning.
*Read Daniel Pink’s book, Drive: The Surprising Truth about What Motivates Us, on why people work. The new generation wants to be involved in something with a PURPOSE, not just a PAYCHECK! Many young people can view their work at a great For Impact organization as an upgraded internship or even as a kind of volunteer/youth service commitment!
SUCCESS TO SIGNIFICANCE – This group at the ‘right’ is a terrific RESOURCE. Their families are raised and they are ready to get out of ‘rat race’, want new challenges and would love to use their experience and talent to help change the world! We love these ‘young in spirit,’ talented Eagles and Ducks coming from the for-profit world who are aligning a change in career with purpose. This group can bring a wealth of business experience, sales and financial expertise, and just plain productivity to their position/responsibilities. If it’s the ‘right fit,’ someone at this point in life can have a HUGE impact on your organization. They are looking to get ‘re-potted’ and ‘re-energized’ around something more than work, more than a job. Yes, they still need to earn income, but many have other sources, and just want to be treated fairly. Recruit them on the MESSAGE – not the MONEY!!!
ELDERS-SAGES – There is an abundance of TALENT sitting under this category – just waiting to be asked! ELDERS-SAGES are a HUGE untapped resource for the For Impact world! Maybe not full-time, but these people bring so much wisdom, talent and life experience to the table, that they can have an amazing impact in only a few days a week or month. Look here to find wonderful, wise and (often) witty Board Members, mentors and even ‘unpaid staff.’ Elders-Sages can offer incredible TALENT for a very affordable investment, with a huge ROI. If asked, many of these ‘untapped resources will work for satisfaction/ fulfillment (vs. money!). (I’ve know some absolutely unbelievable ‘$1.00/year’ staff that put ‘paid staff’ to shame!)
Here, you’ll find people who love your cause, vision and message … a have a lot to contribute … and ‘HUNGER for these OPPORTUNITIES!!!’
Just ASK them if they are interested! Aska great Board Member who fits this profile to join you as a full-time/part-time STAFF PERSON! If ‘60 is the new 50’ then 70 and 80 are the new 60! ‘Boomers’ (millions of us) aren’t ready to retire, play golf, sit around the house, etc. We/they want to make a difference. And, it’s not about ‘money!’ They will help and even INVEST!
See Marc Freedman’s book, The Big Shift for great stuff on ’boomers’ and ‘second careers’ at For Impact organizations.
“Only one in five Americans over 55 is currently on the job …. Older Americans are wealthier, healthier and living longer …. And there is ample evidence that they ‘HUNGER’ for OPPORTUNITIES … to contribute their experience and time in meaningful ways.” America’s healthy aging population is the country’s only INCREASING NATURAL RESOURCE.”
-Marc Friedman (Prime Time)
PRIME EARNING YEARS – People ‘in the middle,’ God bless them, need a job! Their focus is often on ‘the job,’ a paycheck, supporting their family. A focus on ‘heart,’ particularly the element of ‘taking a smaller salary for work you love,’ is much tougher when you’re responsible for a family.
Look at this ‘TALENT SPECTRUM’ as a way of creatively adding great staff and volunteer leaders. I’m not suggesting you overlook all of the wonderful, talented, committed people who are in their “prime-earning years.” But don’t get caught up in thinking this is the BEST OR ONLY place to look because you need someone with X years of development experience!
Bottom line: Best & Brightest, Elders-Sages, Success to Significance. All of these are wonderful places to SEARCH FOR TALENT.
HIRE FOR ATTITUDE. TRAIN FOR SKILL (at the For Impact Boot Camp.) No more expensive hiring mistakes!
Tom has been receiving notes from around the world, people reaching out to share what he has taught them. One of the big themes has been the importance of Life Balance. With our own team, we call this “Integration” – Being able to integrate all the facets of your life to achieve happiness, fulfillment and overall health.
Here’s a great note from the archives – Tom talking about his mentor who introduced him to “personal goals” and “family first.”
It may seem a little weird to talk about “PERSONAL GOALS” when you’re dealing with SALES or SALES GOALS. Frank Sullivan, however, was all about writing out ALL of his goals and plans – personal, financial, business, health, etc.
Frank was literally the first person in my “business life” (and, actually, one of the very few people) that talked about his personal life and his family and his own goals – as they related to his business and sales goals.
Frank’s the one who first gave me the idea of solo time with the kids, which I turned into BIRTHDAY BREAKFAST, where we went over their favorite books, TV, friends, food – And, did their GOALS for the upcoming year! I tried to capture all these notes in one journal/green book (that I still have today.)
By the way, if you’ve never done ‘GOALS’ with a 3-year-old, you’ve really missed out!
Frank came down with Alzheimer’s at the end of his life, but, by then, he had impacted so many people and left a huge legacy. “Personal goals” and “family first” were his GIFT to me. I am forever grateful.
This week’s theme is: Commit to SHARING THE STORY and PRESENTING THE OPPORTUNITY!
STOPASKING FOR MONEY.
Money is merely ‘worthless wampum’! No one likes asking their friends, much less strangers, for money. (The rare volunteer who really loves doing this should be treasured as a true gift, psychoanalyzed, and then cloned.)
Your conversations are not about asking for money. They are about changing the world. (Of course it requires resources to do that.)
STARTSELLING YOUR IMPACT!
PRESENT the OPPORTUNITY…
To help with your cause and your case.
To move from success to significance.
To make an impact and change the world.
Special Note: Ask any Board Member (or, for that matter, any of your staff) if they’d rather ‘Ask for Money’ or ‘Present Opportunities’ (to make an Impact.) You already know the answer.
This week’s theme is: ACT/EXECUTE on YOUR ENGAGEMENT STRATEGY!
A ‘Campaign’ is all about ACTION. The literal translation or definition of a ‘Campaign’ probably has its provenance with Napoleon and War. As any great general or military leader will tell you, success in war is about MASSIVE ACTION – NOW.
We’ve watched hundreds and hundreds of organizations screw around for years trying to figure out what to do, when to do it, where to hold the kickoff, etc. There are great organizations out there who, right now, are still debating the “impact of the economy and the recession,” or“somebody else has kicked off a campaign in our community” or“our donors are tired and maybe we should wait” and on and on. UGH!
CHALLENGE FOR THE DAY: What are the 3 ‘MASSIVE ACTIONS’ that you could take RIGHT NOW that would cause an EXPLOSIVE EXPONENTIAL JUMP or a QUANTUM LEAP for your organization?