Credentialing an Organization

7 ways Board members credential an organization and increase the likelihood of funding: 

 

Ø Provide credentialing by lending their name and reputation

Ø Act as an ambassador for the organization in the community

Ø Develop and cultivate networks that will be beneficial in reaching short and long-term goals

Ø Function as the only truly objective and credible participants in a cultivation or solicitation

Ø Function as part of a solicitation team

Ø Exhibit support for the community they serve, particularly in times of disaster relief funding

Ø Indicate a willingness to support the organization long after initial funders are gone

The Style Advantage in Donor Meetings

Donors and their advisors react positively or negatively to personal style and clothing choices in the first 90 seconds. Although they may not be able to acknowledge or articulate it at the time, a strong cultural perception is formed that carries through the remainder of the meeting or presentation.

The five key factors related to personal style and clothing choices are identified below:

1. The 90% rule always applies for the first meeting and for meetings with any donor over the age of 70. The 90% rule implies coverage of everything but face, neck, wrists and hands.
2. When asking for gifts at a million dollars or over, at least one member of the presentation team should wear the same color as his or her eyes.
3. At the point of handshake, the donor will look from eyes to hands to feet. Hence, presenters  should always wear close-toed shoes.
4. In presentation teams of three or more, at least one member should wear "sincere gray".
5. Donors assess the seriousness of the presentation and the importance of the meeting in the first ninety seconds, based on the presence of the following colors: black, gray, navy blue, burgundy and taupe.

The Importance of the Venue in a Cultivation Strategy

Selecting the location for a cultivation and solicitation meeting is based on a combination of respect for the donor's privacy, comfort and the greatest likelihood of engagement:

1. In a recent survey, ninety-seven percent of donors over the age of seventy reported hesitation or unwillingness to discuss their financial situation and resulting philanthropy in a public location or country club.
2. A site visit of less than an hour increases the likelihood of a successful outcome by forty-two percent.
3. Female donors over the age of seventy express discomfort when two males (board members, board development officers) request a meeting in their home.
4. Meetings that include donor advisors (CPA, attorney or trust officers) are best held in a neutral location to minimize the impact of the advisor's agenda.
5. Sixty-four percent of donors are uncomfortable when the non-profit pays for a meal, as they do not feel that non-profit funds should be spend on them.
6. Whoever controls the venue controls the first six minutes of the meeting.

7 Key factors in successful campaigns

1. Despite use of the term "philanthropic investment", funding moves from the donor to the organization in a pure gifting process. Philanthropy must never be confused with entrepreneurship - and the process required to obtain a charitable gift is 4.3 times the amount of time required to secure an investment with an expectation of return.
2. A highly targeted and researched pipeline dictates the outcome. Less than 1.8% of campaign gifts materialize without pipeline management.
3. The fastest way to alienate a donor is through presentation of financial need. Donors do not give to "save-the-Titanic" campaigns. While they take great joy in giving money away, they do not want to lose money by becoming the last paycheck for a financially strapped nonprofit.
4. Regardless of organizational need, the gift timeline is solely the purview of the donor. Well intentioned executives and board members who believe that pushing a donor toward commitment or check will likely have the dubious distinction of losing the gift.
5. A comprehensive due diligence packet will never "sell" the donative opportunity - but without it, the gift may never materialize. Documentation of stewardship, oversight, and best practices will demonstrate the worthiness of the organization.
6. Donors alone determine whether or not a phone call or a meeting is necessary in the solicitation process.
7. Successful campaigns and post-campaign funding hinge entirely on the ability of the organization and Board to connect with the emotional psyche of the donor and develop a strong and lasting relationship.

3 Things Donors do not expect from Board Members

As discussed in the last blog post, donors have a specific set of expectations relative to board involvement in the solicitation. Equally important are the things that donors do not expect. The degree to which board members are prepared to meet donor expectations will help signify a successful outcome for the solicitation. If board members clearly understand expectations, they can rehearse to those expectations and develop a corresponding comfort level.

What donors do NOT expect:

1. Although a strong trend in the last decade, research indicates that donors do not expect board members to make the ask. They do however, expect the board member to be present, physically and emotionally, when the ask is made. Of interest, research indicates that at key benchmark points of two weeks, two months and two years post-solicitation, donors believe that the board member actually made the ask if he or she was fully present at the time of the solicitation.
2. Donors do not expect board members to have full knowledge of all programs, projects and endowments within the organization. A successful solicitation is ten percent fact and ninety-percent passion.
3. Donors do not expect board members to have a full and working command of IRS regulations related to charitable gifts. Board members can and should encourage donors to seek counsel in this area prior to finalizing the gift.

A knowledge of donor expectations will be reassuring to board members and will ultimately and positively impact the success of the solicitation.

5 Key expectations donors hold for board members

1. At least two compelling reasons why you joined the board and why you choose to devote your time, talent and resources to the organization.
2. An ability to articulate why the donor's money is important to the organization and why this funding will make a difference.
3. A thorough explanation of how you (and the rest of the Board) will take care of the donor's money, as evidenced through stewardship principles, strict accountability and oversight.
4. Thank you notes, emails and phone calls or other appropriate expressions of gratitude - as a means of communicating both appreciation and commitment to a long-term relationship.
5. Participation in organization-sponsored events and community activities with collateral commitment to ambassadorship for the organization.

Stay tuned for next week's post, which will discuss what donors do NOT expect from a board member!