I'd like to start this thought process by asking you a few questions: Do you think it if takes you less time to earn $100 the value of that money changes? Let me put it another way, do you believe $100 means more to a person making $50,000 a year than to someone who makes $250,000 a year?
Apparently, many nonprofits are confused when answering these questions because the value of money seems to change! It is almost magical and there is a REAL presumption that more you make the less value the money must have. But is this true?
If you make more or have more money there is a reason. Granted this reason may be because the person was born into wealth or maybe because the person inherited a lot of wealth. People also make different amounts of money in relation to their education and/or job skills. The reason different people have more money than others depends on all sorts of different situations.
Regardless of how the money was received let's step back again and look deeper into the question of the value of money.
The paper and coin you hold does not discriminate against the buyer. In our example of $100 the same amount of gas or food can be purchased so what is the difference?
Well, it is because one person has more than the other person! Ok, so this means the more money you have the less value you place on it simply because you have more?
Really, is that logical?
Well, it is not just because one person has more than the other; it is really because the more money you have the "easier" life is for you. You know because you don't have to worry as much about different "things.”
Wow, so more money equals happiness and worrying about less "things"! Ah, wouldn't it be great if life were that simple where you could always count on a + b
equaling c no matter what day of the week it occurred.
Nonprofits need to understand that the people they are seeking to get a donation from know the value of money just as much as they do. If you make a personal donation to a cause I would suspect you are not doing so in a blind fashion, but responding in either in a very logical way or because of a certain emotion or attachment you feel for the organization.
Don't assume because someone might earn more or have more money than you do that the money somehow means less to them, because in most cases it does not!
Money does not make you worry less nor does it buy happiness. If it did all the millionaires in the world would be happy about life. Money is a tool, in the right hands it can create many things, but it is not the solution to fixing all problems!
Thursday, April 8, 2010
Service After The Sale
Many nonprofits might want to take a moment to look around at their for profit counterparts and see if there are lessons they might learn from their business model. It is unfortunate that the vast majority of nonprofit executive directors have little experience in the for profit world because with that additional experience they might view their responsibility and how to approach donors differently.
People in the car industry are constantly trying to come up with new ideas and incentives to sell you a car. However, most also put a great deal of focus on servicing that vehicle after the sell. They want to keep you coming back to the dealership.
All realtors want to sell you a house, but after the sale they seem to still stay in touch from time to time sending you a calendar you may or may not want or drop you a postcard about the houses that recently sold in your neighborhood. You ever wonder why? Well, you have heard of out the phrase "out of sight, out of mind" right? Well, they don't want to be forgotten.
Have you ever been in a situation when you arrange with someone providing a service you need when the following steps were followed: First they met with you when it is convenient for you to meet. Second you both agreed what needed to be done. Third they scheduled a time to provide the service that was outlined. Fourth they did the service at the time they said they would and at or below the price agreed on in advance. Lastly, they followed up after the service was complete to see if it was satisfactory and met your approval. Also to see if there was anything else that needed to be done or was overlooked.
Now while the above outline might not be an exact match to how you should operate your nonprofit or deal with your donor you can see by using this method of delivery how the focus is on the customer, always!
What Not To Do!
People that go to the post office daily to pick up mail occasionally find that dreaded slip in their box letting them know a package awaits at the window. With this discovery that means standing in line to be served. A few years back under the guise of standardization the post office came up with the:
USPS Strategic Transformation Plan 2006-2010 http://www.usps.com/strategicplanning/stp2006_2010/
Now forgive me for being critical because I realize at the time of the publication the post office I think was trying to "standardize" approximately 37,000 retail locations, but seriously are you telling me it takes five years to do this? I just can't help but wonder if Domino's Pizza or FedEx decided to make this project on how long it would take them?
Regardless, on page 60 you will read "The Postal Service recognizes that customers form expectations on critical attributes such as waiting time in line based on their experience with other similar services, and compare Postal Service performance to best-in-class providers." Really, you think? So one solution to improve customer service, remove all the clocks.
Now the only other place that I know that has done, but for an obviously different reason are the casinos in Las Vegas.
So, if people stand in line and can't see a clock they will be less frustrated. Oh yea, that is logical.
Finally, I hope one take away for your nonprofit in all this is for you to consider this question: How are we focusing on our donor?
People in the car industry are constantly trying to come up with new ideas and incentives to sell you a car. However, most also put a great deal of focus on servicing that vehicle after the sell. They want to keep you coming back to the dealership.
All realtors want to sell you a house, but after the sale they seem to still stay in touch from time to time sending you a calendar you may or may not want or drop you a postcard about the houses that recently sold in your neighborhood. You ever wonder why? Well, you have heard of out the phrase "out of sight, out of mind" right? Well, they don't want to be forgotten.
Have you ever been in a situation when you arrange with someone providing a service you need when the following steps were followed: First they met with you when it is convenient for you to meet. Second you both agreed what needed to be done. Third they scheduled a time to provide the service that was outlined. Fourth they did the service at the time they said they would and at or below the price agreed on in advance. Lastly, they followed up after the service was complete to see if it was satisfactory and met your approval. Also to see if there was anything else that needed to be done or was overlooked.
Now while the above outline might not be an exact match to how you should operate your nonprofit or deal with your donor you can see by using this method of delivery how the focus is on the customer, always!
What Not To Do!
People that go to the post office daily to pick up mail occasionally find that dreaded slip in their box letting them know a package awaits at the window. With this discovery that means standing in line to be served. A few years back under the guise of standardization the post office came up with the:
USPS Strategic Transformation Plan 2006-2010 http://www.usps.com/strategicplanning/stp2006_2010/
Now forgive me for being critical because I realize at the time of the publication the post office I think was trying to "standardize" approximately 37,000 retail locations, but seriously are you telling me it takes five years to do this? I just can't help but wonder if Domino's Pizza or FedEx decided to make this project on how long it would take them?
Regardless, on page 60 you will read "The Postal Service recognizes that customers form expectations on critical attributes such as waiting time in line based on their experience with other similar services, and compare Postal Service performance to best-in-class providers." Really, you think? So one solution to improve customer service, remove all the clocks.
Now the only other place that I know that has done, but for an obviously different reason are the casinos in Las Vegas.
So, if people stand in line and can't see a clock they will be less frustrated. Oh yea, that is logical.
Finally, I hope one take away for your nonprofit in all this is for you to consider this question: How are we focusing on our donor?
Wednesday, April 7, 2010
Nonprofit Vocation or Occupation?
According to Wikipedia: “A vocation, from the Latin vocare (verb, to call), is a term for an occupation to which a person is specially drawn or for which they are suited, trained or qualified. Though now often used in secular contexts, the meanings of the term originated in Christianity.”
My question to you is how do you view your job? Is it “just a job” or a “calling?”
In America we seem to be stuck on giving ourselves titles. Your are Mr., Mrs., Miss or even Ms. but let’s also not forget Dr.
Then for others you have Jr., II, III as well as toss in PhD or even Esq. in addition President, CEO, COO, Vice President, Director of etc.
Isn’t it a shame we don’t use Barron, Duke or Duchess because those sound so impressive don’t they?
I also find it interesting that so many people work at a job to make a pay check but for a moment if you asked them to imagine that they somehow won the lottery or didn’t have to worry about finances anymore, would they still continue to work at their current job? Almost everyone says no, are you kidding?
Why is it that so many people work their entire life in a career that they would toss away so easily? Have we all lost our minds and think so little of our life we are willing to waste it away doing something we really don’t want to do?
I am struck as a consultant the number of conversations I have had with individuals who call me and tell me that they are at a point in their career that they want to re-focus and do something different, something to help people.
Wow, well honestly you don’t have to wait any longer. I am not advocating you to sell all your worldly possessions, so relax, I am suggesting that helping others is not as gigantic as it appears.
Start small… and do something nice and totally unexpected for a stranger within the next 24 hours. After you complete this, write a short note to yourself about how that made you feel. Read it out loud to yourself….Then think about what life would be like if you did this everyday and ask yourself are you willing to allow the gift you have inside of you out and share it with others. What are you waiting for?
My question to you is how do you view your job? Is it “just a job” or a “calling?”
In America we seem to be stuck on giving ourselves titles. Your are Mr., Mrs., Miss or even Ms. but let’s also not forget Dr.
Then for others you have Jr., II, III as well as toss in PhD or even Esq. in addition President, CEO, COO, Vice President, Director of etc.
Isn’t it a shame we don’t use Barron, Duke or Duchess because those sound so impressive don’t they?
I also find it interesting that so many people work at a job to make a pay check but for a moment if you asked them to imagine that they somehow won the lottery or didn’t have to worry about finances anymore, would they still continue to work at their current job? Almost everyone says no, are you kidding?
Why is it that so many people work their entire life in a career that they would toss away so easily? Have we all lost our minds and think so little of our life we are willing to waste it away doing something we really don’t want to do?
I am struck as a consultant the number of conversations I have had with individuals who call me and tell me that they are at a point in their career that they want to re-focus and do something different, something to help people.
Wow, well honestly you don’t have to wait any longer. I am not advocating you to sell all your worldly possessions, so relax, I am suggesting that helping others is not as gigantic as it appears.
Start small… and do something nice and totally unexpected for a stranger within the next 24 hours. After you complete this, write a short note to yourself about how that made you feel. Read it out loud to yourself….Then think about what life would be like if you did this everyday and ask yourself are you willing to allow the gift you have inside of you out and share it with others. What are you waiting for?
Sunday, March 28, 2010
Planned Giving
Many times nonprofits fall into basically two distinctive camps when it comes to talking about planned giving.
First you see small nonprofits with limited staff and budgets that are totally consumed with running their organization and raising the money. They simply don’t feel like they have the time to devote to something that on its face seems so nebulous.
The second type of nonprofit organization is one that is bigger possibly better funded but more than likely does not have one person who is just devoted to only fundraising but it is the job of several which obvious includes in large part the board of directors. Even in this organization planned giving and creating an endowment appears to be more of an after thought versus something that is in the forefront. Instead of thinking about funding that might strengthen the future of the nonprofit they focus solely on what they can see directly in front of them by way of their annual campaign.
If the organization is more motivated many times you see an effort on their part to offer seminars to “help the donor” with their estate planning. The assumption here is that the donor has no other help. While I’m sure this effort helps the proverbial little old lady in the shoe I can only give this organization a C+ for at least addressing the topic of “planned giving.” In my opinion this is not the best motivational tool to encourage someone to give. In fact, when I receive a note from a university or other agency inviting me to a seminar to hear someone I have no knowledge of or have never established a level of trust with, I get more than a little irritated.
I recently read that 70% to 90% of all planned gifts to charity are made with the charity having no knowledge until after the donor’s death. So much for thanking your donor, huh!
So how can this change and who is the best to guide you on his journey? First while I am sure there are a number of well qualified consultants I would like you to give each one a little test. Ask them if they themselves have made a planned gift! If so ask them to tell you about it and why they made it. If they tell you, no, then I’ll let you decide.
It is one thing to tell you what you should be doing and another to have actually done it. I am happy to report that long before I became a consultant for nonprofits I began my philanthropic career at an early age. Giving was both taught by example as well as in actions taken after making an effort to get involved and feeling a sense of responsibility to help others.
By the way as a consultant that does almost all pro-bono work I’m not trying to get more business. Trust me, I’m already busy!
Anyway, I currently have several planned gifts funded by insurance policies. While many organizations might shy away from this type of gift because the giver can always choose to stop paying the premium, I started at a young age so it was something I felt I could afford to do. I realized back then that long after I was gone it would have a lasting effect and impact on the lives of others.
I wish I could tell you that in my case the nonprofits involved did all the right things and were active in keeping me involved, but that would be lying. The fact of the matter is the planned gifts I made were self driven.
A few facts nonprofits need to understand. First less than half of all Americans have a will and the ones that do only 8-9% include a gift to charities. The good part about that percentage is that once a charity is included 97% of the time they will remain in the will.
So how does one go about actively finding that individual who might be willing to make that planned gift?
The answers, while quite simple, are ones that need to be thought about as you review your donor database. People who make a planned gift “care” about the organization as a whole. This level of caring is something that is not often studied or talked about but is something you as a nonprofit need to develop with each and every donor you meet.
You need to make sure that when someone gives to your organization you have some method of establishing that that gift has a greater sense of purpose.
We all at some point have written a check for a utility bill or phone bill. You know the feeling you get seeing the figure owed and thinking about what you paid last month, looking at your balance in your check book and writing the check. Even if you now are doing all these transactions online, unless it is automatic draft, you still have a certain thought process.
The worst thing that can occur to a nonprofit is when a donor makes a donation in the same rote, lifeless automated response. When this happens there is little joy in making a gift. Much like helium birthday balloons with a slow leak, eventually there is nothing happy about it at all.
Coupled with the sense of caring about your organization is another deep rooted emotional response a donor has is the need to do something special.
We all understand what it means to have someone go out of their way to do something nice for you. Not because they have to but because they want to. In this same spirit of openness the donor seeks to share a literal part of their self with the organization.
Sadly most organizations are so self absorbed that if someone truly does care to that level it is missed completely by the leadership. Even if the board or staff recognizes that this person is really special to the organization often times there is a lack of response as a way of just saying thanks for being there.
Many nonprofits, especially those that really don’t understand what giving is all about, incorrectly think that “rich people” want to give to a nonprofit because something is in it for them like a tax deduction. While no one likes to pay more taxes than they have to 65% of the time a gift to charity in a planned gift is NOT for estate tax reasons.
Lastly, I have said this many times and it is worth repeating.
People give to people first before they give to the organization.
So, get out of your comfy office and go visit your donors. Spend some time getting to know them! But let me warn you first, if your motivation is only because you’re thinking about a gift and not a friendship then realize that your will not be able to hide your insincerity, so don’t stay long.
If you have any questions feel free to send me an email or visit my website at: www.nonprofitexpert.com
First you see small nonprofits with limited staff and budgets that are totally consumed with running their organization and raising the money. They simply don’t feel like they have the time to devote to something that on its face seems so nebulous.
The second type of nonprofit organization is one that is bigger possibly better funded but more than likely does not have one person who is just devoted to only fundraising but it is the job of several which obvious includes in large part the board of directors. Even in this organization planned giving and creating an endowment appears to be more of an after thought versus something that is in the forefront. Instead of thinking about funding that might strengthen the future of the nonprofit they focus solely on what they can see directly in front of them by way of their annual campaign.
If the organization is more motivated many times you see an effort on their part to offer seminars to “help the donor” with their estate planning. The assumption here is that the donor has no other help. While I’m sure this effort helps the proverbial little old lady in the shoe I can only give this organization a C+ for at least addressing the topic of “planned giving.” In my opinion this is not the best motivational tool to encourage someone to give. In fact, when I receive a note from a university or other agency inviting me to a seminar to hear someone I have no knowledge of or have never established a level of trust with, I get more than a little irritated.
I recently read that 70% to 90% of all planned gifts to charity are made with the charity having no knowledge until after the donor’s death. So much for thanking your donor, huh!
So how can this change and who is the best to guide you on his journey? First while I am sure there are a number of well qualified consultants I would like you to give each one a little test. Ask them if they themselves have made a planned gift! If so ask them to tell you about it and why they made it. If they tell you, no, then I’ll let you decide.
It is one thing to tell you what you should be doing and another to have actually done it. I am happy to report that long before I became a consultant for nonprofits I began my philanthropic career at an early age. Giving was both taught by example as well as in actions taken after making an effort to get involved and feeling a sense of responsibility to help others.
By the way as a consultant that does almost all pro-bono work I’m not trying to get more business. Trust me, I’m already busy!
Anyway, I currently have several planned gifts funded by insurance policies. While many organizations might shy away from this type of gift because the giver can always choose to stop paying the premium, I started at a young age so it was something I felt I could afford to do. I realized back then that long after I was gone it would have a lasting effect and impact on the lives of others.
I wish I could tell you that in my case the nonprofits involved did all the right things and were active in keeping me involved, but that would be lying. The fact of the matter is the planned gifts I made were self driven.
A few facts nonprofits need to understand. First less than half of all Americans have a will and the ones that do only 8-9% include a gift to charities. The good part about that percentage is that once a charity is included 97% of the time they will remain in the will.
So how does one go about actively finding that individual who might be willing to make that planned gift?
The answers, while quite simple, are ones that need to be thought about as you review your donor database. People who make a planned gift “care” about the organization as a whole. This level of caring is something that is not often studied or talked about but is something you as a nonprofit need to develop with each and every donor you meet.
You need to make sure that when someone gives to your organization you have some method of establishing that that gift has a greater sense of purpose.
We all at some point have written a check for a utility bill or phone bill. You know the feeling you get seeing the figure owed and thinking about what you paid last month, looking at your balance in your check book and writing the check. Even if you now are doing all these transactions online, unless it is automatic draft, you still have a certain thought process.
The worst thing that can occur to a nonprofit is when a donor makes a donation in the same rote, lifeless automated response. When this happens there is little joy in making a gift. Much like helium birthday balloons with a slow leak, eventually there is nothing happy about it at all.
Coupled with the sense of caring about your organization is another deep rooted emotional response a donor has is the need to do something special.
We all understand what it means to have someone go out of their way to do something nice for you. Not because they have to but because they want to. In this same spirit of openness the donor seeks to share a literal part of their self with the organization.
Sadly most organizations are so self absorbed that if someone truly does care to that level it is missed completely by the leadership. Even if the board or staff recognizes that this person is really special to the organization often times there is a lack of response as a way of just saying thanks for being there.
Many nonprofits, especially those that really don’t understand what giving is all about, incorrectly think that “rich people” want to give to a nonprofit because something is in it for them like a tax deduction. While no one likes to pay more taxes than they have to 65% of the time a gift to charity in a planned gift is NOT for estate tax reasons.
Lastly, I have said this many times and it is worth repeating.
People give to people first before they give to the organization.
So, get out of your comfy office and go visit your donors. Spend some time getting to know them! But let me warn you first, if your motivation is only because you’re thinking about a gift and not a friendship then realize that your will not be able to hide your insincerity, so don’t stay long.
If you have any questions feel free to send me an email or visit my website at: www.nonprofitexpert.com
Wanting To Be Heard!
No matter which side of the health care debate you fall it was obvious that people in both camps were feeling desperate to have their voice heard.
The generation of today is drawn to technology like a mosquito is to a bug zapper! Be it Twitter, Facebook, or YouTube your proud teen is happy to develop carpal tunnel syndrome by achieving new heights in daily texting a minimum of twenty minutes per day. People are buzzing like bees with no unified direction or focus in this grand “social networking” experiment that is tantamount to nothing more than glorified self absorption.
This fevered pitch cannot be maintained forever yet it is not surprising that this frustration is easily carried over to how many nonprofits feel trying to rise above everyday life’s noise to reach their respective donor.
It is hard to get a donor’s attention especially if they are worried about being able to keep their job in this economic slow down or because they are constantly answering their BlackBerry.
Regardless, while nonprofits bemoan this fact it is also quite ironic that nonprofits themselves often times forget that part of their responsibility to the donor is to also listen!
When was the last time you let your donor speak?
I’m not talking about asking them to fill out a survey or questionnaire to see if they think it is a good time for you to raise money for your upcoming capital campaign. What I am talking about is really focusing “one on one” to try to discern how the donor feels about your organization and what you are doing.
We all need to be reminded at times that we are given two ears and only one mouth for a reason!
So, as frustrated as you might feel, realize in this age of technology with all the applications and madness allowing the individual to say whatever they want. More than just a few of your donors might seem a little frustrated because they feel like for whatever reason real or imagined their voice is not being heard or enough attention has not been given to them.
Only you can change the outcome of this scenario. The question remains, will you act on what you have heard or just ignore it like the rest?
The generation of today is drawn to technology like a mosquito is to a bug zapper! Be it Twitter, Facebook, or YouTube your proud teen is happy to develop carpal tunnel syndrome by achieving new heights in daily texting a minimum of twenty minutes per day. People are buzzing like bees with no unified direction or focus in this grand “social networking” experiment that is tantamount to nothing more than glorified self absorption.
This fevered pitch cannot be maintained forever yet it is not surprising that this frustration is easily carried over to how many nonprofits feel trying to rise above everyday life’s noise to reach their respective donor.
It is hard to get a donor’s attention especially if they are worried about being able to keep their job in this economic slow down or because they are constantly answering their BlackBerry.
Regardless, while nonprofits bemoan this fact it is also quite ironic that nonprofits themselves often times forget that part of their responsibility to the donor is to also listen!
When was the last time you let your donor speak?
I’m not talking about asking them to fill out a survey or questionnaire to see if they think it is a good time for you to raise money for your upcoming capital campaign. What I am talking about is really focusing “one on one” to try to discern how the donor feels about your organization and what you are doing.
We all need to be reminded at times that we are given two ears and only one mouth for a reason!
So, as frustrated as you might feel, realize in this age of technology with all the applications and madness allowing the individual to say whatever they want. More than just a few of your donors might seem a little frustrated because they feel like for whatever reason real or imagined their voice is not being heard or enough attention has not been given to them.
Only you can change the outcome of this scenario. The question remains, will you act on what you have heard or just ignore it like the rest?
Saturday, March 27, 2010
Bill’s Dilemma
Bill Johnson was 63 and felt like the best years were behind him. Susan had been his wife and soul mate of forty-six years and had recently passed away suddenly from cancer. He never expected or planned that he would be the one alone. But now he was and having to deal with it the best way he could.
He could not believe how huge, empty and cold their house felt especially since the couple had been constant companions and never had children.
He began to wonder out loud to himself what in the world would happen now and what should happen to all his possessions once he was gone.
Over the years both Susan and Bill had been generous to several charities. Both Susan and Bill’s parents had died years ago, and Bill only had one younger bother named Roger, and Susan was an only child. Bill had never been close to his brother and only visited once a year usually around Christmas or Thanksgiving.
Bill did not consider himself a wealthy man but he had inherited some property from his family that turned out to be quite valuable especially after Wal-Mart wanted it for a new store.
Both Susan and Bill had worked over forty years before retiring. Susan had worked for the phone company and Bill had worked in sales all his life. His first sales job was with a life insurance company and later he worked for a hardware store before finally settling in to working for a family owned plumbing supply company for fifteen years. He worked the counter and was one of the best and most liked salesman. All the building contractors hated to see him retire because they knew the younger kid that took his place would not be detailed oriented or really go out of his way to help them like Bill did.
Bill and Susan grew up in families that constantly struggled to make ends meat and their upbringing caused them to both want to live modest lifestyles. No fancy cars or clothes and the most extravagant thing Bill ever purchased as a toy for himself was a few extra chisels, files and gouges for his wood whittling hobby.
Their retirement money was invested in conservative investments which were mostly tax free bonds and some blue chip stocks. The money from the sale of the property had been put in CDs. At Susan’s death Bill had totally forgotten about a whole life insurance policy Susan had taken out years ago at the phone company for $250,000.
Susan had always been the bookkeeper in the family and had everything organized in little piles in her office. It took Bill two weeks before he stepped in her office to begin to sort things out. After a few days looking at the check book and adding all the investment figures up he was shocked to see how their nest egg had grown to a nice little sum of over $1.5 million dollars which did not include their house which was paid for or their two older cars.
Bill’s younger brother Roger and his wife Jill had one son named Tom who was 22. Roger and Jill’s lifestyle was completely opposite of Bill and Susan. They had a big house, big new leased cars and even a big John Deer lawn mower! Roger and Jill wanted it all and wanted it all now. While both had good paying jobs, Bill realized they were living way beyond their means and knew they must be drowning in debt.
Like Bill, Roger also had inherited some land from their parents as well but quickly sold it right after he got it so he could buy more toys. While Bill and Roger love each other like bothers do they never understood how both could have grown up in the same house but be so totally different.
Bill knew from past experience that Roger’s way of living was all about making the payment and never about owning anything outright. It didn’t matter what it cost it only mattered if he could get it with no money down and how small the payment might be. In his mind being debt free was just a dream like winning the lottery.
Ten years before their parents died the boys had been given a check for $10,000 with an understanding that the money was to be used to help pay off bills. Roger paid off one credit card and Bill used the money to help pay off the little bit they owed on their home. A year later, Roger had run his credit card bill back up to $10,000 and Bill’s home was paid for.
Bill knew that what ever money he decided to give to his brother he would probably blow through it within a year or so and he wasn’t sure that was the right thing to do.
Roger likewise never understood why Bill never seems to enjoy life and have some fun. He saw his older brother work all the time and never spend much money on anything but that stupid hobby of his. He hated thinking about his childhood and having to wear his older brother’s used clothes and how everything he seemed to get growing up was used.
Roger and Jill felt they were happy but always were juggling the bills to make it work. Living on the edge of their financial ability was all they knew as normal and they were not interested in changing how they lived.
If you were the judging type you might draw your own conclusions as to what was “right” or “wrong” in the lives both bothers live. Regardless it all comes down to personal decisions and choices and living with those actions.
The path and decision you make truly is like a pebble thrown in a pool of water. The ripples, while small, have the ability to effect things that are far reaching beyond your immediate field of view.
Finally, I am reminded of a phrase I was told many years ago: You can only spend it once!
A dollar one spends on one’s self is lost and cannot be spent helping another.
He could not believe how huge, empty and cold their house felt especially since the couple had been constant companions and never had children.
He began to wonder out loud to himself what in the world would happen now and what should happen to all his possessions once he was gone.
Over the years both Susan and Bill had been generous to several charities. Both Susan and Bill’s parents had died years ago, and Bill only had one younger bother named Roger, and Susan was an only child. Bill had never been close to his brother and only visited once a year usually around Christmas or Thanksgiving.
Bill did not consider himself a wealthy man but he had inherited some property from his family that turned out to be quite valuable especially after Wal-Mart wanted it for a new store.
Both Susan and Bill had worked over forty years before retiring. Susan had worked for the phone company and Bill had worked in sales all his life. His first sales job was with a life insurance company and later he worked for a hardware store before finally settling in to working for a family owned plumbing supply company for fifteen years. He worked the counter and was one of the best and most liked salesman. All the building contractors hated to see him retire because they knew the younger kid that took his place would not be detailed oriented or really go out of his way to help them like Bill did.
Bill and Susan grew up in families that constantly struggled to make ends meat and their upbringing caused them to both want to live modest lifestyles. No fancy cars or clothes and the most extravagant thing Bill ever purchased as a toy for himself was a few extra chisels, files and gouges for his wood whittling hobby.
Their retirement money was invested in conservative investments which were mostly tax free bonds and some blue chip stocks. The money from the sale of the property had been put in CDs. At Susan’s death Bill had totally forgotten about a whole life insurance policy Susan had taken out years ago at the phone company for $250,000.
Susan had always been the bookkeeper in the family and had everything organized in little piles in her office. It took Bill two weeks before he stepped in her office to begin to sort things out. After a few days looking at the check book and adding all the investment figures up he was shocked to see how their nest egg had grown to a nice little sum of over $1.5 million dollars which did not include their house which was paid for or their two older cars.
Bill’s younger brother Roger and his wife Jill had one son named Tom who was 22. Roger and Jill’s lifestyle was completely opposite of Bill and Susan. They had a big house, big new leased cars and even a big John Deer lawn mower! Roger and Jill wanted it all and wanted it all now. While both had good paying jobs, Bill realized they were living way beyond their means and knew they must be drowning in debt.
Like Bill, Roger also had inherited some land from their parents as well but quickly sold it right after he got it so he could buy more toys. While Bill and Roger love each other like bothers do they never understood how both could have grown up in the same house but be so totally different.
Bill knew from past experience that Roger’s way of living was all about making the payment and never about owning anything outright. It didn’t matter what it cost it only mattered if he could get it with no money down and how small the payment might be. In his mind being debt free was just a dream like winning the lottery.
Ten years before their parents died the boys had been given a check for $10,000 with an understanding that the money was to be used to help pay off bills. Roger paid off one credit card and Bill used the money to help pay off the little bit they owed on their home. A year later, Roger had run his credit card bill back up to $10,000 and Bill’s home was paid for.
Bill knew that what ever money he decided to give to his brother he would probably blow through it within a year or so and he wasn’t sure that was the right thing to do.
Roger likewise never understood why Bill never seems to enjoy life and have some fun. He saw his older brother work all the time and never spend much money on anything but that stupid hobby of his. He hated thinking about his childhood and having to wear his older brother’s used clothes and how everything he seemed to get growing up was used.
Roger and Jill felt they were happy but always were juggling the bills to make it work. Living on the edge of their financial ability was all they knew as normal and they were not interested in changing how they lived.
If you were the judging type you might draw your own conclusions as to what was “right” or “wrong” in the lives both bothers live. Regardless it all comes down to personal decisions and choices and living with those actions.
The path and decision you make truly is like a pebble thrown in a pool of water. The ripples, while small, have the ability to effect things that are far reaching beyond your immediate field of view.
Finally, I am reminded of a phrase I was told many years ago: You can only spend it once!
A dollar one spends on one’s self is lost and cannot be spent helping another.
Friday, March 26, 2010
Are you planting seeds or weeds?
As the weather turns warmer you can’t help but think about getting outside and enjoying the sunshine. So far 2010 has been a difficult year and the skies have seemed awful cloudy for most nonprofits.
No matter how the pundits might try to spin it people are more than just a little concerned about their job and the economy. Hearing about unemployment figures on a weekly basis as well as hearing that one out of four people are behind on their mortgage does not make anyone feel warm and fuzzy. Regardless, you have to be rooted in reality and not stick your head in the sand. On the contrary you have to have a plan!
Nonprofits for whatever reason seem to be more confused than ever, which is not good.
In order to survive you have to keep moving forward and remain focused on your mission. It is true you might have to scale back the services you offer or even lay off staff but you must maintain your forward momentum at all costs.
Now would be a good time to do a full review of what I call your “funding pie” to look at the percentages you are getting from each of your funding sources.
Take a moment and record your actual numbers looking in each category:
Program Fees
Board Member Donations
Staff Member Donations
Volunteer Donations
Individual Donations
Local Corporate Donations
Corporate Foundations
Local Family Foundations
Community Foundations i.e. Donor Advised Funds
Local Government Funding
State Funding
Federal Funding
**Nonprofit Endowment Account
**I would also be remiss if I did not mention that all nonprofits should strive to set up their own endowment fund. In my opinion the easiest way to accomplish this is by setting up a fund with your local community foundation. Also I realize that on every board there will be naysayers who will want to argue that you need every penny you have now and you can’t afford to put money aside to start an endowment. My response to that is the organization’s life depends on a long term vision not short term goals.
The following is a true story that might give you a moment to pause and motivate you and your board to set up that endowment account now.
I was on the board of a local nonprofit organization that received a call from a CPA in late December of one year. The CPA had a client that wanted to donate one million dollars to a nonprofit for tax reasons but it had to be done within a few days. There was also a stipulation that the nonprofit had to already have in place an endowment to receive the donation and that the endowment’s guiding document had to state that the principal monies were invested and only a percentage of the money earned were spent.
Unfortunately the nonprofit did not have an endowment in place at that time and lost out on what would have been a huge transformative gift for the organization!
If after you filled out the list you found that you are not receiving monies from one or more categories and need help in figuring out how you can accomplish this, check out my website for ideas: www.nonprofitexpert.com and also feel free to send me an email if you have questions.
No matter how the pundits might try to spin it people are more than just a little concerned about their job and the economy. Hearing about unemployment figures on a weekly basis as well as hearing that one out of four people are behind on their mortgage does not make anyone feel warm and fuzzy. Regardless, you have to be rooted in reality and not stick your head in the sand. On the contrary you have to have a plan!
Nonprofits for whatever reason seem to be more confused than ever, which is not good.
In order to survive you have to keep moving forward and remain focused on your mission. It is true you might have to scale back the services you offer or even lay off staff but you must maintain your forward momentum at all costs.
Now would be a good time to do a full review of what I call your “funding pie” to look at the percentages you are getting from each of your funding sources.
Take a moment and record your actual numbers looking in each category:
Program Fees
Board Member Donations
Staff Member Donations
Volunteer Donations
Individual Donations
Local Corporate Donations
Corporate Foundations
Local Family Foundations
Community Foundations i.e. Donor Advised Funds
Local Government Funding
State Funding
Federal Funding
**Nonprofit Endowment Account
**I would also be remiss if I did not mention that all nonprofits should strive to set up their own endowment fund. In my opinion the easiest way to accomplish this is by setting up a fund with your local community foundation. Also I realize that on every board there will be naysayers who will want to argue that you need every penny you have now and you can’t afford to put money aside to start an endowment. My response to that is the organization’s life depends on a long term vision not short term goals.
The following is a true story that might give you a moment to pause and motivate you and your board to set up that endowment account now.
I was on the board of a local nonprofit organization that received a call from a CPA in late December of one year. The CPA had a client that wanted to donate one million dollars to a nonprofit for tax reasons but it had to be done within a few days. There was also a stipulation that the nonprofit had to already have in place an endowment to receive the donation and that the endowment’s guiding document had to state that the principal monies were invested and only a percentage of the money earned were spent.
Unfortunately the nonprofit did not have an endowment in place at that time and lost out on what would have been a huge transformative gift for the organization!
If after you filled out the list you found that you are not receiving monies from one or more categories and need help in figuring out how you can accomplish this, check out my website for ideas: www.nonprofitexpert.com and also feel free to send me an email if you have questions.
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