Tag Archive for: Generosity

Do you sometimes feel like the accounting folks are just trying to be difficult?

Here are a few examples about working with accounting I heard during my latest round of presentations. Be sure to hit ‘reply’ and share your accounting stories or questions.

SIX Accounting Stories – Sound familiar to you?

1. Your volunteer speaker goes off the script at a fundraising event and promotes his favorite project. Accounting tells you the dollars that are given are designated for his project – not the annual fund – because that was the Ask they responded to.
2. Your donor wants to pay a major gift pledge off in 5 years – giving in years 1, 3 and 5 only-  to get to the gift level needed to deduct the gift on her taxes. Accounting tells you this can’t be done.
3. You learn that even in the annual fund donors like options. So, you create 3 options – where the need is greatest, current programs and staff professional development.  Accounting says they will note the option in the annual fund and periodically look at the expenditures to be sure dollars given were spent accordingly.
4. Your accounting department will not support additional marketing budget to increase program enrollment because they believe that the enrollment projections are not guaranteed to be successful and that will create a budget deficit.
5. Your major donor wants to pay a $100,000 pledge off with a $10,000 for the first two years, then $40,000 for the last two years when she is finished with a pledge to another organization. Accounting says the amounts need to be the same every year.
6. Accounting resists spending money donors have given for use immediately to have reserves.

These are just a few relatively simple examples of many awkward, and perhaps frustrating, conversations between the number crunchers and the relationship builders.

Accounting Basics to Remember

1. The belief that your organization is stable and ethical is one of the top reasons, according to the research, that donors invest.  This comes from accounting adhering to proper practices, even when the donor may have specific requests to do things differently.
2. Accountants and bookkeepers are generally wired differently than fundraisers and are less flexible and understanding of the unique relationship with each donor.
3. You ALL are important to the success of your non-profit and to the joyful giving donors experience!

The Stories Continue – Here’s my take

1. Yep…the volunteer going off on a tangent about his pet project shifts the Ask. It may not be what you intended or even what is written in the program. It is still an Ask focused to a specific project. You need to put the dollars toward that project or clarify with each donor what the intention of their gift was and process, or re-process it accordingly.
2. Every other year pledge payments is a rock-solid solution to addressing mid-level donors impacted by the new tax laws.  They can then take the new, much larger, standard deduction one year, and give basically a double pledge payment the next to have an amount larger than the new standard deduction.  AND…remember to recognize them in giving clubs EVERY year. No, you don’t issue any sort of tax-deductible receipt – this is for recognition only so they are part of your giving family every year.
3. Doing the annual fund appeals, looking at 3-5 general yet specific designations within the annual fund throughout the year is a good way to give donors some choice without having an accounting nightmare.  The research tells us that donors who like to have a choice will DOUBLE their annual fund gift when they are given options.  However, only 20-25% of all annual fund donors want this. For those who want the options, it brings in more money.  It DOES mean you need to be doing more with the annual fund than just operations – some programming too. The optional areas to designated must typically be funded in part by the annual fund so you will generally use the money given for that use.  In my experience, the amounts given are not large…but are good ways to more effectively engage some beginning donors in the annual appeal.
4. There are many factors that lead to increased enrollment, paid participation, whatever….not JUST marketing. Best to set big results goals, but be conservative in the budget. It’s better to get most of a larger goal than all of an insignificant increase.  We have been trained to shoot low to be sure of success. BIG visions get BIG results.  This budget decision should be part of setting reasonable giving goals – not just a budget-gap number that doesn’t make sense with where you are with your giving program.
5. This one is just silly. Donors should be able to break down pledge payments in any size they wish. Perhaps some accounting software is easier to use with a consistent number, but clearly, this should serve the donor in giving you money! Honor your major donor’s wishes.
6. Saving for a rainy day with outright gifts…this is just wrong. While accounting wants to have reserves for stability, it cannot be done by squirreling away money given to use NOW. Spending that money to fund scholarships, or programs, or staff NOW is honoring the donor’s wishes. It’s unethical and wrong when a donor is believing something good is going on right now with their gift.  Additionally, the stories you can share about this giving making an impact will encourage more from the original donor and others!

Fostering a great relationship with Accounting

1. Connect the donor directly to the accounting folks.  When they hear straight from the donor, they tend to want to help address the request.  Ask accounting folks to join in a visit. I have seen major changes when accounting hears directly from donors.
2. Take time to learn more about how money is managed, interest is earned and spent in endowments, etc. While meeting with your donors is always number 1, a once-a-month hour to learn more will help.
3. Treat everybody in accounting like a major donor. Cookies, appreciation, communication. It really is all about relationships – with your accounting colleagues and MONEY.

Remember we ALL bring our money mindset into this work. We are often uncomfortable talking about money and tend to come from a place of scarcity instead of abundance!  See your dollars growing! See your relationships doing your mission – then take action to connect the donors, and accounting, to the real reason for money – to create abundance and do good in the world!  Thank you for making it happen!

What is your value?

What do you bring to your work? What to you contribute to your professional and personal relationships?

What difference do you make?

If you are like many non-profit professionals your value is HIGH! You deepen and enrich all of your relationships! The work you do literally transform lives daily – in education, healthcare, social services, the environment, religion and more!

Yet do you really recognize and appreciate your value? 

October 7-9 I’ll be hosting my MORE Major Gifts intensive workshop in Nashville for about 20 folks. (You can register here) At $597.00 this is an incredible value -small group, highly interactive experience. Yet I am often ask if I offer scholarships or discounts.  Now I DO offer scholarships and early bird pricing (and I do it to GIVE first) and I understand we are all working to get the most value for our investments. But, because our mindset determines everything…because our inner world creates our outer world, I wonder when this whole process reflects our lack of self-esteem?  When does our attraction for a “deal” deplete us rather than lift us up?  It’s almost begging. We can’t afford this. It’s not in the budget. It’s out of our reach.

Do we focus more on a free lunch than how the experience will help us grow, enrich our connections or deepen our skills?  Do we have some ceiling on what level of experience we could ever really manage – I mean, we could only go if our organization paid for it, right?

Or perhaps it is this marketing that pushes through the noise in our lives – all the email, social media posts, deadlines, meetings and obligations.  Early Bird Pricing, Discounts, Time is RUNNING OUT! Sale, today only!  DO IT NOW! Must we get pushed into taking action by these sales gimmicks pouring into our inbox and appearing on social media?  I know I react.  Do you “get what you pay for” or are some experiences simply not worth the price of admission?

In the end, wouldn’t it be great to just go for First Class?  What would happen if you just decided you were worth it and paid for it?

You see, I believe this is really a question about living a life of abundance.  When we harbor fear around running out of money, or that there is not enough money “out there” to fund our mission or pay for the workshop, we contract our actions, our thinking AND OUR RESULTS!

Think about setting fundraising goals, attendance goals, enrollment goals – how many of us “play it safe?”  “Well let’s not shoot too high in case we don’t get there.” “Better to aim lower and get past our goal rather than miss it.”

I say it’s better to get SOME or even MOST of a BIG GOAL, than ALL of no goal – nothing.  Are you failing if your goal is $1,000,000 and you reach $850,000?  That’s $850,000 you didn’t have for your mission – and nothing is stopping you from continuing to work toward the $1M.  Or that’s 258 students enrolled instead of the 270 you were shooting for, but it’s also 23 MORE than you had last year – and you have 23 more to grow as well as those new tuition dollars in the budget.  I’d say that’s a success!

You see, you reap what you sow. It is really so simple.  You get what you give.

If you sow anger, you get anger.

If you sow joy, you get joy.

If you sow fear, you get fear.

If you sow love, you are loved.

If you sow learning, you get smarter.

If you sow investment into your growth, you will grow.

If you sow action, you will reap results.

You’ve got to put the wood in first, to get the fire.

Big donors want big visions. They want to see you on fire with what you want to accomplish – how your organization or institution will make that difference. So if you want others to give money – you need to give money.  If you want others to give time, you need to give time.  If you are reluctant to give, you demonstrate your fear and belief that there is not enough. Resources are scarce. You have to hold on, hunker down, be conservative, contact…..play small.

Have a big vision for yourself! Invest in yourself. Start talking about what is RIGHT! What you are on fire to DO! Read books, listen to podcasts and surround yourself with positive messages.  Sow giving, kindness and abundance with a vengeance – then look out! You will reap what you sow. Expand your thinking about what is possible for YOU.  I appreciate you and I believe in you and all the good you are sowing in the world! Thank you!

Can you be trusted? This is about TRUST. Earning your donor’s trust and knowing you have set this up to honor that trust is what your agreements do.

Here’s my story.

You’re meeting with your new leader – the Dean, CEO, Executive Director, or Manager. Will she “get” development at all? Will she be a partner in building artful relationships? Will she simply want to know, “what big gifts came in this week” and have little interest in being involved with relationship-building?

It’s a stressful time. We want to be optimistic about the new leadership partnership. But we are understandably anxious to know how this leader will operate in the giving arena.

During my 23 years of incredible major gift work at the University of Wisconsin, I was privileged to work with amazing faculty and leaders — most still cherished friends today. There was one Dean, however, that had a very different understanding. Shortly after she began, she asked me how many endowed funds we had and if I could provide the memorandums of agreement for the funds. I was delighted! Certainly she wanted to get familiar with the funds – especially those with living donors so we could visit, thank and begin a relationship.  Wonderful!

Wrong. I was SO wrong.

She wanted first the agreements with NO living donors. Her goal?  Loopholes. Yes, loopholes in my agreements that would allow her to spend the money HER way.

Much to my horror, she invaded funds to use the earnings for her own uses while I sat by helpless to do anything about it.  Sure, I shared my concerns with higher-ups, but the agreement was what mattered. Fast forward – the dean was not renewed, and the next Dean was terrific. The fund’s earnings were again used correctly and all was well, right?  Honestly, the trust I felt I had a hand in breaking has haunted me forever.  My donors trusted me.

This was an experience that would forever change how I approached documenting the wishes of a donor…..and for that fact, how I looked at every legal document – personal or professional.  It got to be a bit of a joke at the UW Foundation – how long Marcy’s letters of agreement were.  You bet they were! And they were crystal clear.

Here’s Marcy’s “Never Forget List” you need when completing any sort of agreement, memorandum, contract or other legal documentation in work and life.

1. Agreements must be written.

Conversations have no legal strength. They told me “this or that” rarely is heard. What did the legal agreement say? If you die without a will, it doesn’t matter what you told the kids. If you go into a coma without a medical directive, you have no say, nor do others, as to what happens next.

If you don’t record clear meeting minutes, you have no record of what was discussed or decided.

2. Agreements must clearly state the organization or institution.

Certainly the legal name of your organization or institution is important, but the EIN number (Employer Identification Number – Tax number free online) solidly identifies YOU.  If you say “the Catholic school in MyTown” that could mean scores of potential places – and I have seen an estate gift divided up to places we know the donor never intended. Name, ID, address. Exactly who are the players in the agreement.

3. Agreements must be crystal clear on the use.

Yes, many agreements set up “for all time” situations so we may be told to write them “flexibly” as to not tie the hands of future administration or force us into costly legal situations so that we can “use” the money or implement the directive.  They also need to honorably speak for the donor, the child, you.  Using examples of your donor’s vision for how this money would or would NOT be used helps bring clarity. It is helpful to include your donor’s intentions in making the gift, “In setting up this fund, the donors wish to honor the life of Joe Smith, Betty’s father, and his connection to the FFA for more than 40 years.”

4. The agreement needs to address, ‘What if?”

Time changes everything. What if we no longer have this department, program, whatever?  You must ask and you must have a documented answer. You can use standard language, “In the event X ceases to exist, the organization will use the funds for the closest purpose as the original intent as possible.” Better…set up someone – family or friend – to consult. Or, list examples of what broader uses would look like for the donor.  And, include things the donor would roll over in their grave to see happen with their money.

5. The agreement needs to be as long as the agreement needs to be.

I have a reputation for writing long agreements.  Why? Because I learned the hard way — a dead donor has no voice except in my agreements. And working through these actually is a way of serving your donor – helping them get clear on what they want to do.  I have actually increased the gift size working through the agreement as a donor better understands what dollars are really needed to accomplish some task. Additionally, if a donor wants 15 interviews and an essay contest to award a scholarship, writing this out is a great way to educate on how this may not be practical to implement FOR ALL TIME…when that staff member who agreed to do it is long gone.

This also pertains to meeting minutes for Boards.  Make an Executive Summary if your board wants shorter minutes, but document who said what.

6. The agreement legally must be kept for all time. 

How many of us stay at a place 23 years? I saw funds implemented, donors pass and how the communications with new leadership and staff played out. Question #1, ‘Is there an agreement on how this money should be used?” If you want a specific letter included in the agreement, scan it and insert it into the body of the agreement.  Trust me…attachments and exhibits get lost.  After over 20 years at the UW, it was clear that agreements are kept, scanned and documented.  Letters, contact screens, call reports can well be deleted to make room for more.

Likewise for meeting minutes – by law your Board meeting minutes must be kept for all time.  The level of detail and clarity can be invaluable and minutes can even provide insight into how the group was thinking as they made a decision.  Trust me – no one remembers – or remembers accurately.

This is about TRUST. Earning your donor’s trust and knowing you have set this up to honor that trust is what your agreements do.  Sadly, your word means nothing unless it is documented in your agreement. It hurts to see misuse and have no power to correct it.  It is a forever JOY to see your donors and their families forever delighted with the results of their generosity!

You have the power to create and honor trust.  I totally trust you to make it happen and I appreciate your noble contributions to lifting others up through their giving!

Dealing with a pot-stirrer. Now just what do I mean by that?

Have you ever noticed how some people seem to continually stir things up?  I call them pot-stirrers. And the problem is they can make a mess of things…including your peace of mind and progress. In college, my roommate, Holly, made this amazing spaghetti sauce with meatballs one night. I came home, smelled it, grabbed the spoon and began stirring. The aroma! She shrieked and told me to STOP IT NOW!  Apparently the meat balls were binding together and my stirring broke them all apart. So it’s meat sauce. Well meatballs have different ingredients that don’t taste right spread throughout meat sauce. It was an enormous crisis and she has never let me forget it or I think ever forgiven me for being so thoughtless.

Believe me; I learned stirring the pot can have real consequences!

All these years later, I see pot-stirrers every day all around us – staff, board, donors, friends, family – and honestly they CAN stir up a mess.  They can appear to be helpful – but they really are not. They don’t generally ruin anything completely…just like you CAN still eat the meat “sauce” but they generally add drama, stress and confusion and they can get in the way of you doing your best work.

So what are the characteristics of a pot-stirrer?

• They have talent, but stirring the pot allows them to draw attention to themselves for self-promotion.
• They can do good work, but stirring the pot to create drama masks their performance or contribution short falls.
• They are both outspoken, but also chit-chatting behind the scenes.
• They are onboard as long as they see something in it for them – they’re not really altruistic and quick to bail if they aren’t getting something out of it or the going gets rough.
• They can break trust and instigate trouble – all in the name of “concern” for the organization.
• They tend to be dramatic, gossipy – all in a spirit of caring for the organization or the work.

It’s the Board member who “suggests” what the staff should be doing.  It’s the staff member who talks on and on about the one gift they brought in…well below the metrics they should be maintaining. It’s the Board member who has conversations with other board members about staff or how something is handled to build up support before bringing it up to the leadership. It’s the donor who asks publicly how another project is going, knowing it is struggling. It’s the child who reports on what brother did because “he’s worried about him.” Pot-Stirrers.

So how do you deal with the Pot-Stirrers in your life?

1. Recognize them publicly – they want the attention. Select any parts of their actions that are actually helpful and reward them. What you focus on you grow.
2. Communicate clear boundaries.  These are the folks who will contact staff directly and give them directions – not cool and puts staff in an awkward spot.  Of course staff is not going to be comfortable saying no to a board member. Empower them to say they will check in with leadership and see where the request fits into current work.  Of course staff can and should handle requests for food preferences for an event, directions, etc.
3. Look for the deeper issue. We want service to feel good for our board members, but sometimes pot stirrers are using the board to feel valued and want to fill a void in their personal relationships or life.  You are not a therapist for their personal issues.
4. Recognize self-promotion and manage your expectations of what they can REALLY do for you. We have those board members and staff members that use their role to promote themselves – their visibility and advancement.  They are the ones who announce their role on your board to any publication that will print it. They are the staff members that will stop by to “chat” with leadership about a successful call or gift and actually do half of the calls.  The challenge here is that these folks are not really “influencers.” Their relationships are superficial and when it comes to really moving something forward for your organization they don’t have deep enough relationship capital to get the job done. Hear, “I know them, but not really well enough to get this visit.” Much of this is social media based. Bottom-line – don’t count of them for the long-haul or the big breaks.  They really aren’t major players.
5. Respond with warmth yet crispness. If you feel they DO mean well…you can manage the drama they create by responding warmly but evenly and crisply.  “That’s good advice. We’ll add it to the mix.”  Don’t EVER get into gossiping with them. Never.
6. Pin down specific times for action.  Typically these folks speak up boldly at Board or committee meetings, but deliver depending on THEIR workloads.  This creates stress as staff negotiates these tasks within their planned timelines.  And, they can get snarky when you stand your ground that their free time does not coincide with theirs.  Better to set clear expectations from the start, complete with what you will do if they miss their commitments.
7. Declare behind-the-scenes chit-chat off limits.  These folks also tend to find others on the board or staff that are not the bold ones and who become their followers or supporters.  ‘I agree with Gladys. We should do such and such.’  As much as possible have leadership remind staff and board that when everyone participates during meetings and not in the hallways the best results are achieved.

Don’t let the Pot-Stirrers in your world get you hot.  Don’t be fooled by them either. Their play to be your “special advocate’ is generally hollow.  Remember, EVERY ingredient in your dish is important. Combined properly and inspired toward shared goals these ingredients simmer in the sauce and combine to create something deeper, richer, heartier, healthier and more flavorful.

May your summer be filled with simmering delights!