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Archive for the ‘Metrics for Measuring Success’ Category

50 Asks in 50 Weeks: A Fundraising Guide for Small to Mid-Size Nonprofits in Start-Up or Transition

Posted in Board Development, Board Giving, Direct Mail, Entrepreneurs, Events, Fundraising Cycles, Getting Grant Ready, Grants, Metrics for Measuring Success, Nonprofit, Performance Measurement, Recommended Reading, Setting Reasonable Expectations, Setting Reasonable Goals, Social Media, Strategic planning, Understanding Donors on June 28, 2011 | 3 Comments »

As some of you may already know, in my consulting practice I specialize in working with nonprofit organizations and other service-based entrepreneurs that are in a start-up or transitional stage of growth. I’m happy to say that there is now a book that can help each and every one of them, and I always recommend it.

50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop by Amy Eisenstein, Certified Fundraising Executive (CFRE) is a breath of fresh air when it comes to books on fundraising. A quick and easy read for those who are already overwhelmed with how much they need to learn in order to operate and grow a business, it lays out a simple plan for incorporating “Asks” into the everyday, and by doing so, both strengthening relationships and increasing support dollars flowing into the organization.

The Language of Fundraising

Amy clearly lays out the language of fundraising and addresses common challenges in its implementation – from helping board members understand their role in the process to clarifying the process itself. For example, did you know that the solicitation (or “ask” part of the process – the one most people are hesitant to engage in) represents only 5% of the process? The most time-intensive part of the process (and, not coincidentally, the more fun part) lies in cultivation (50%) and stewardship (35%) … or, in other words, in developing and maintaining good relationships with people who are passionate about our cause. The remaining 10% of the process, which is often the most research-intensive part of the process, is identification.

Amy also address some common misperceptions about fundraising that new organizations have. For example, she says,

    “The old saying ‘quality not quantity’ rings true in the fundraising context. It is more important to make smart, informed asks than to make a certain numbers of asks each year. So although increasing the overall number of asks your organization is making is crucial, it is not enough. Prospective donors, whether foundations, corporations or individuals, must be carefully researched, cultivated, solicited, and stewarded. If you ask one hundred times per year, but do not receive any gifts, then frequency becomes irrelevant.”

An Easy-to-Implement Development Plan

In 50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop, Ms. Eisenstein addresses the following major areas of fundraising as part of a total development plan: board giving, bulk solicitation via direct mail, email and social media, individual giving, grant writing, and events. She provides easy-to-implement tips on getting started with each type of development program, and at the end, helps you understand how they all build up to 50 asks in one year (about 1 ask per week). Very doable!

Leadership for Organizational Growth

Near the end of 50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop, Ms. Eisenstein provides Executive Directors with guidance on key management topics such as when and how to hire your first development director (and understanding how the E.D.’s role in fundraising will change after you do), creating a fundraising culture within the organization (and the board), and setting reasonable team goals for development.

I absolutely love Amy’s Board Expectation Form and think everyone should use it. Completed annually and used as a tool for measuring board performance, it sets forth each board member’s 1) financial commitment (via a direct pledge or pledge of participation by his company) and 2) leadership commitment as part of at least one committee. It also requires an acknowledgement by the board member that meeting attendance is a requirement for Board membership. The Board Expectation form, along with a comprehensive Board Orientation Packet, provides clear indicators for performance.

Setting the Right Expectations

If you’re new to fundraising keep this in mind … according to Amy, executive directors often have “unrealistic expectations for what development staff can accomplish, especially with the tools and resources that they are given. A new development staff member will raise money in the first year, but it is not likely to (cover the individual’s salary via) unrestricted dollars.” Often money raised in the first year through grants is more than the individual’s salary, but as restricted program dollars, it cannot be spent on staff salary. So be prepared to cover the development staff’s salary with unrestricted dollars from other sources, and set other more realistic expectations, like …

  • Put a plan in place to achieve 100% board participation in fundraising.
  • Research and apply for eight to ten new grants. Establish relationships with foundation staff members.
  • Plan two parties for prospective donors at the homes of board members.
  • Identify ten individual prospects and create cultivation plans for each. Schedule meetings with them to meet board members and the E.D.

Then measure success and build upon the progress you’ve made.

In Conclusion

50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop is sure to stay in my permanent business library, and it should be a part of yours, too. Simple changes can lead to big results. I give this book – and its author – my highest recommendation.

If you ever get a chance to hear Amy speak at a Grant Professionals Association (GPA) or Association of Fundraising Professionals (AFP) event, be sure to do so. She is both down-to-earth and engaging. I consider it a privilege to have met her at local GPA events here in New Jersey.

_________

References: 50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop by Amy Eisenstein is available through Amazon. She can also be contacted via Tripoint Fundraising.

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Preparing to Write a Grant: It all Comes Down to Research, Relationships, Diversified Funding and Experience

Posted in Fundraising Success, Getting Grant Ready, Grant Writers, Grants, Metrics for Measuring Success, New Grant Writers, Nonprofit, Proposal Success on December 9, 2010 | 2 Comments »

Those of us who have been developing grant proposals for awhile know that the skills it takes and the factors influencing success go far beyond the actual writing of the proposal … everything from team building to program planning and outcome measurement, advanced research and relationship building, communications and collaboration, and financial management and budgeting.

We know … despite pervasive myths to the contrary that:

    1. Not just anyone can write a winning grant proposal. For most people, getting completely secure in the field takes years of full-time practice and persistence. It takes much more than exceptional writing ability. Those of us who have reviewed grants have witnessed first-hand the vast quality differences in requests submitted, and most can easily detect the difference between a proposal prepared by an experienced professional and one that was written by someone with decent writing skills who simply volunteered.

    2. You need much more than your 501c3 letter from the IRS to develop a good funding stream from grants. Grant makers need more than a tax deduction before they will invest in your organization. Some key things have to be in place: a compelling vision and mission that’s consistent with funder priorities; strong, accountable leadership (trust is everything); diversified funding streams that demonstrate your organization isn’t solely reliant on grants, but instead well supported by board members and other local community members; and research- based programs that are both showing results and providing high-quality volunteer experiences. Even with all of these things in place, developing a grant program takes time.

    3. Grants are unlikely to be the first source of funding for any organization. “Seed funding” is relatively rare, especially in a down economy. Unrestricted funds, from individuals, are the best and easiest way to get started. Unlike most grants, which are program specific, you can use the money any way you need to. Over time, individual giving covers 75% or more of the typical nonprofit’s budget.

    4. It’ll take more than one big grant to get an organization going. To be competitive for larger grants, you need to demonstrate you can build relationships with smaller donors and handle their donations well before your organization has grounds to seek a bigger investment. Don’t expect to apply for one grant, get it, and then use it to apply for more. It just doesn’t work that way. On-going “cultivation” is the norm.

    5. No matter how good the grant writer, he/she cannot guarantee you’ll get the grant. Grant professionals vary in their focus – some spend much of their time on highly-competitive government grants, others focus on day-to-day operational spending, still others focus on getting grants to complement individual giving as part of a capital campaign. Each of these areas brings with it a different likelihood of success regardless of the proposal quality submitted. Instead of looking exclusively at “success ratios”, look for a grant developer that can present your best case, with attention to detail and storytelling style.

    6. Changing your mission and programs to fit a single funder’s guidelines is never a good idea. Successful grant seeking has a lot to do with exceptional research. Matching the vision of your organization with the vision of funders in your area is a big part of that research. It’s time consuming and takes intensive concentration to master details that could make or break a potential partnership, particularly if you are seeking government grants, but it’s worth it. Networking, follow-up and clarification of funder goals all is part of the process.
    _____

    So if you’re just getting into grant seeking and you think … this should be easy … be prepared for a rude awakening. It rarely ever is.

    Learn More on Nonprofit Spark Radio …

    To hear a one-hour podcast on “Preparing to Write a Grant” led by Renee McGivern and featuring guests Sarah Sunderman from The Salvation Army and Melanie R. Negrin, Founder of For GrantWriters Only, check out: Nonprofit Spark Radio: “Preparing to Write a Grant”

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You Can Be Happy No Matter What: Keeping Life in Perspective & Defining What Success Looks and Feels Like

Posted in Fundraising Success, Metrics for Measuring Success, Organizational Success, Proposal Success, Recommended Reading on November 15, 2010 | Leave a Comment »

Whether it’s the economy or the damp, dark day that is keeping you down this time of year, it is important to remember we have some control over how these things are perceived. A down economy, for example, can be an opportunity for us to focus on the activities most in line with our primary mission or it can be that which keep us from doing more. The classic glass is half full or half empty sort of thing. Similarly, a damp, dark day can be an opportunity to catch up on much-needed sleep we feel guilty in partaking of when the sun is shining and the air is warm or it can be exactly that thing which zaps all our energy and makes us become lethargic and fat. Which viewpoint we take is entirely up to us.

In his book, You Can Be Happy No Matter What: Five Principles for Keeping Life in Perspective, Richard Carlson (also author of the bestseller Don’t Sweat the Small Stuff) demonstrates how thoughts, moods, an acknowledgment of separate realities, feelings, and our ability to be in the present moment all influence our perspective. He helps us apply these principles in areas such as managing relationships, handling stress, solving problems, and changing habits.

Equally well regarded, Dr. Wayne Dyer says in his foreword to the book:

    “Many people mistakenly believe that circumstances make a person. They don’t. Instead, they reveal him or her. Our circumstances don’t define us; they represent our unique curriculum – our tests, challenges, and opportunities for personal growth, acceptance, and detachment. Our success as a human being does not lie in our collections of possessions or accomplishments (or) in the details of our predicament, but in how we deal with what we have, how we face our challenges (and) transform our unique curriculum into growth and into a life filled with love.”

I love the way that Dr. Dyer interprets our circumstances, our day-to-day challenges, as our unique curriculum. It’s quite consistent with my own personal philosophy that there is no such thing as failure, only challenges and lessons.

The combination of challenges we are each presented with, and the perspective with which we view and respond to them, are a reflection of who we are. If you choose to look at things positively, as a means to growth for example, then you may have greater chance of achieving your personal definition of happiness and success. And yes … I think we each have a personal definition of what it means to be happy and successful.

What does happiness look and feel like to you? What does success look and feel like to you? Can the members of your board and staff come to agreement on what happiness and success look and feel like for your organization? These are not intangible things, but they do often go unspoken …

_____
You can purchase You Can Be Happy No Matter What: Five Principles for Keeping Life in Perspective at Amazon.com.

You can also purchase Don’t Sweat the Small Stuff at Amazon.com.

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Building a Performance Measurement System

Posted in Board Development, Measuring Social Impact, Metrics for Measuring Success, Performance Measurement, Recommended Reading on October 4, 2010 | 2 Comments »

As grant professionals, we all know how important the evaluation section of any proposal is. All funders want to measure their social impact.

Logic models that lay out an organization’s inputs, activities, outputs, and outcomes are a popular method for evaluating program success, but if you’re looking for a more robust, organizational level performance measurement system, you may want to read “Building a Performance Measurement System: A Root Cause How-to Guide”.

As Root Cause indicates on its web site,

    “This practical guide provides an easy-to-follow, five-step process for developing a customized performance measurement system that will serve as an essential tool for any organization seeking to: measure progress in achieving its mission, goals, and visions develop dashboards and learn how to analyze performance data; create a culture of learning and continuous improvement among management, board, and staff; develop report cards to communicate performance; and use data-based evidence to build funder confidence.”

Written specifically for nonprofit organizations, government agencies, and businesses that offer innovative, results-driven solutions to social problems (social innovators), the how-to guide helps answer the following questions:

    1. How well is our organization progressing against our mission and goals? How do we know?
    2. What should we measure in order to have critical information without becoming overwhelmed with data?
    3. How should we report and discuss our performance internally among staff and board members to maximize learning?
    4. Where should we focus our organization’s limited resources in order to increase our effectiveness today and achieve sustainability over the longer term?
    5. How can we most effectively measure and communicate our performance and impact to external stakeholders?

An excellent guide, “Building a Performance Measurement System: A Root Cause How-to Guide” is an easy read with clear instructions, helpful examples, and templates throughout. Electronic versions of templates are available online.

Unlike most performance measurement approaches, this guide helps you select and track three types of indicators in one easy-to-use table:

    1. Organizational Health Indicators, i.e. financial sustainability
    2. Program Performance Indicators, i.e. activities and outputs
    3. Social and Economic Impact Indicators, i.e. outcomes, systemic impact

Going through the process outline may even have you refining your vision and mission statement and adding substance to your strategic plan!

I give this resource my highest possible recommendation. Add it to your library of references on performance evaluation and measurement.

__________

You can download a no cost PDF of the guide here, or a purchase a hard copy of Building a Performance Measurement System: Using Data to Accelerate Social Impact on Amazon.com.

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A Personal Definition of Success for Grant Writers

Posted in Metrics for Measuring Success on July 15, 2010 | 1 Comment »

Sometimes it’s difficult for us, as grant professionals, to define success. After all, the reasons we do what we do go beyond the metrics our employers typically use. Personally, I like the definition of what success is (and isn’t) presented in the most recent release of the movie Fame.

    There are some things success is not …

      It’s not fame.
      It’s not money or power.

    Success is …

      1) waking up in the morning so excited about what you have to do that you literally fly out the door
      2) getting to work with people you love
      3) connecting with the world and making people feel
      4) finding a way to bind together people who have nothing in common but a dream
      5) falling asleep at night knowing you did the best job you could

    Success is … joy and friendship … and success is … love.

How well do those words help define success for you? What would you add?

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Best Practices in Grant Seeking: Beyond the Proposal

Posted in Board Development, Developing a Needs Statement, Family Foundations, Fundraising Success, Getting Grant Ready, Grant Writers, Grant Writing Connections, Grants, Metrics for Measuring Success, New Grant Writers, Nonprofit, Organizational Success, Program Design, Proposal Development, Proposal Success, Recommended Reading, Setting Reasonable Expectations, Setting Reasonable Goals, Strategic planning, Systems of Organization, Understanding Donors on June 21, 2010 | 1 Comment »

As grant writers, most of us know that the proposal is only one piece of the funding puzzle. In fact, it is often the piece that’s placed last, after much of the work is already done … vision and mission development, strategy setting, program planning, execution and measurement, the building of strong boards and volunteer programs, engagement with the public so that they know both who we are and how they can best help us achieve a shared vision, and, of course, collaboration with other community agencies and organizations that create change in the lives we most hope to touch.

But if you’ve read books on grant seeking, or you’ve looked for coursework focused on building skill in grant writing, these elements – the ones that often pave the way to a successful grant proposal – are typically missing. This is not true of Best Practices in Grant Seeking: Beyond the Proposal, a recent addition to the grant writer’s library.

Saadia Faruqi acknowledges in her introduction to the book, “It is rarely enough to write excellent proposals and sit back, waiting for them to get funded. No matter how brilliant the writer, it is not the proposal that gets accepted – or rejected – but the program and the people who run it.”

In 2004, Ms. Faruqi engaged in a research study that clearly demonstrated:

    “Organizations typically do not provide sufficient support and involvement to the grant seeking process at the leadership level, leaving grant professionals to be researchers, relationship-builders, community advocates, program designers, reporters, and grant managers. Few organizations, regardless of size, create grant seeking strategies that include not just the writer, but programs and public relations staff, board members, volunteers, and even clientele. This is done in many cases for other fundraising activities, such as major gifts or capital campaigns and even special events, but almost never for grants.”

So where does that leave us? Often frustrated, because we can’t get the information we need from the people who have it, and burnt out, because no one seems to acknowledge that funding success is less likely without the same support afforded to other aspects of an organization’s fundraising.

Redefining the Grants Function

Major factors impacting grant funding, according to Ms. Faruqi’s research:

    1. board relationships with funders,
    2. positive community image,
    3. successful site visits before the grant award,
    4. non-soliciting contact with funders,
    5. good reporting practices, and
    6. well-designed programs.

Through her chapters on fostering internal relationships, developing community image, designing stellar programs, and uniting to do good, Ms. Faruqi helps us put into place the critical elements that come before the grant proposal. Her next set of chapters focus on organizing (and measuring) the grants function, knowing our funders, and crafting winning proposals. Section three focuses on site visits, the critical time between grant submission and grant award. The last two chapters focus on stewardship and relationship building.

Ms. Faruqi allows us to see the grants function in perspective and prioritize our time and talent accordingly. If you’re a grant writer that doesn’t get involved with board development, publicity, program development, program evaluation, and stewardship, you may only be doing part of the job. That’s assuming you want to be as successful as you can possibly be, and that grant writing is about more than just writing to you. Do you want to fuel some kind of change in the world? Most of us have chosen grant writing as our contribution to an effort.

Now, More Than Ever

It has become clear in this downturned economy that the touch points we have with our funders, the relationships we have built, have more influence on whether we receive a grant than ever before. When given a choice between someone they know and they’re comfortable with (someone who has already proven to be a good investment), and someone they know only a little about through their grant proposal, it’s easier, less risky, to go with #1.

More than ever, we need to understand all elements that influence proposal success and to do all that we can to engage our full organization in the pursuit and development of the relationships that make our dreams more viable.

A Note for Consultants

If you’re a consultant interested in supporting the work of new and emerging nonprofits, this knowledge is even more essential. Why? Because before we jump into any grant seeking campaign for a new nonprofit, we need to help them put the right elements in place to support that effort. We need to help them set the right expectations, to understand what things need to be in place to maximize their grant writing success. They entrust us with that.

In Conclusion

Best Practices in Grant Seeking: Beyond the Proposal is an excellent investment. I give it my highest recommendation.

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Metrics for Measuring the Success of a Grant Writer

Posted in Metrics for Measuring Success on April 13, 2010 | 2 Comments »

How to measure the performance of a grant professional is a oft debated topic in grant writing circles. Measures, such as # of grants written, # of grants funded, % of grants funded, and total dollars received, are insufficient to measure the total contribution of a grant professional to the development team. After all, the best grant professionals do much more than write proposals. They build long-term relationships. They contribute strategic insights. They guide program and budget development.

So what’s an organization to do?

I like the solution members of the For GrantWriters Only Higher Education Supporters group came up with… tie their performance metrics to the professionals whose work they typically support, who are evaluated based on three things: research, service, teaching/outreach.

How could this work?

    Research: prospect research and lining up needs with funding opportunities, robust research into the need for programs, and research needed to establish a reasonable set of program outcomes

      Qualitative outcomes: high proposal quality, compelling needs statement that supports all aspects of organizational development, quality program metrics
      Quantitative outcomes: # contacts made, # of new relationships established, % awarded based on total proposals submitted

    Service (and I would add: Leadership): participation in administrative, financial, program development and fund development teams, participation in grant professional groups, continuous learning and application of best practices and new technologies, grant management

      Qualitative outcomes: well supported program need statements and clear program descriptions with aligned budgets, strategic program development, diversified funding base, testimonials
      Quantitative outcomes: # meetings with program/teaching staff, # of new programs supported, # of professional development meetings, client satisfaction ratings, # of missed deadlines

    Teaching/Outreach: making connections with other community agencies to satisfy community needs and open up new funding opportunities, sharing knowledge of best practices with internal staff and other members of the development community, managing outside relationships with development consultants

      Qualitative outcomes: enhanced service to the community, opportunities to pursue new projects through collaboration
      Quantitative outcomes: # of new collaborative programs supported, # of professional development presentations, # workshops presented to internal staff

What’s important here? Don’t settle for being evaluated on numbers alone. Be recognized for the full role you play in your organization. And acknowledge that all members of the team have a role in the overall success of the grant seeking program. You don’t work alone.

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Setting Reasonable Goals for Your Grant Seeking Program

Posted in Metrics for Measuring Success, Setting Reasonable Goals on April 13, 2010 | 2 Comments »

Successful grant seeking requires the participation of not only an excellent grant professional but also an active board that is engaged in diversified fundraising and relationship building efforts, a committed staff that can provide detailed program descriptions, outcomes, and measurements of program effectiveness, and organizational leadership that networks within the affected community, facilitates fiscal accountability and transparency, and leads a dynamic strategic planning process for the organization.

If internal organizational factors are strong and the external environment is open to new funding partnerships, overall success is likely to be higher. With all factors in place, you can reach for a success rate (# of grants awarded vs. # of grants submitted) of 60% or higher.

Grant seeking is a collaborative effort, a partnership that continuously evolves. It is important to recognize and set goals for each of the organization’s stakeholders, not for the grant professional alone.

Efforts of your board and staff are just as critical as the research and writing skills of your grant writer in ensuring the long-term success of your grant seeking efforts. So how do you set some goals for grant seeking?

When you are getting started, the most critical elements are establishing strong community connections and establishing an on-going grant seeking effort. It is important to set some reasonable (but stretch) goals in both of these areas.

For example:

    1. We will engage 25 more volunteers in our programs and ensure that their experience is memorable (as measured by a post-volunteering survey or collection of testimonials).
    2. Board members and staff will participate in 10 local (or online) networking groups on a regular basis (determined based on the frequency of events offered by each group) and consistently introduce themselves as board members or staff of the organization. When a member of the group expresses interest in the organization, board members and staff will invite them to participate as a volunteer or attend an upcoming event of the organization.
    3. Board members, staff, and volunteers will host a minimum of one event per quarter that interacts with the community, engages them in volunteer service, and spreads awareness of the organization, its programs and services, and its impact. These events will be connected to the mission of our organization or the constituency it serves.
    4. Our grant professional, in cooperation with board members and staff, will identify a minimum of 6 new major gift prospects (grants of $1,000+) and establish an initial connection.
    5. Our grant professional, in cooperation with board members and staff, will prepare and submit a minimum of 3 grant applications or letters of inquiry per month, maintaining a dynamic list of proposals to be submitted and tracking the status of open requests for funding.
    6. As an organization, we will increase overall program funding by $25,000 to allow for expansion of services to 25-50 more individuals or families. No more than 25% of new funding should originate from grant sources that must be renewed annually.

It is important that goals are set in line with current trends in the nonprofit sector. It is not reasonable to expect that grant funds will continuously fill all gaps in operational funding, regardless of the dollar amount required. Many grant makers set limits on the number of consecutive years you can receive funding from them. Others limit you to applying once every two or three years.

It is also unreasonable to think that a grant writer can write an ever increasing number of grant proposals without sacrificing quality. And in grant seeking, quantity and quality work hand-in-hand. If the proposal doesn’t go out, it can’t get funded, but if it goes out, and it’s poorly written, it leaves questions in the mind of the potential funder, it doesn’t follow the funder’s guidelines, or it doesn’t match up well with the funder’s priorities, it is unlikely to be funded. These limitations are essential to consider as you set goals for the year.

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