Leading by Design

A CONVERSATION TODAY WITH THE DIRECTOR OF A local history museum outlined many of the financial issues cultural institutions are grappling with right now. While programs continue apace by a small and increasingly overworked staff, the director said, "We're close to pulling out of the economic trauma, but it seems as though every time we get close, we fall back." She cited a confluence of issues at the base of which is the simple reality that there just isn't enough operating income being generated from any source to cover expenses. And like your organizations, this one has cut its expenses as much as possible without laying off staff. That may come next year, however, if the museum fails to address its structural (long term/ongoing) operating deficit, which right now is about $40,000. While some of her board members are beginning to examine the issues surrounding the deficit, these conversations easily become consumed by minutiae. Before you know it the train is...

There's no time like a recession to rethink your donor relationships.  Even if your institution has its financial back to the wall and all you can see is mounting debt, taking a few steps to deepen the conversation with donors about why what you do is important is never a wasted effort.  Your members, program sponsors, volunteers and funders help you when times are good and most appreciate hearing about your institution's challenges when times are tough. This is not say that it's time to write that desperation letter.  In fact, professional fundraisers will tell you never to fundraise with a message of desperation.  Donors want to help organizations with a future, not organizations with chronic financial problems or organizations with leadership that is continually in a "sky is falling" mentality.  So, if you've got one of these types of letters written to your donors, just tear it up. To me, rethinking the donor relationship in a time of economic crisis means...

Beth Kanter is one of a handful of authorities who’s actively engaged in using social media in the nonprofit arena and writing about it daily on her blog.  I encourage you to check out her Beth’s Blog , which is jammed packed with great information and ideas, especially if you’re unsure or even skeptical about the place of electronic networking in your institution. Beth recently blogged about the Center for Nonprofit Excellence Annual Conference, where she presented a couple of sessions.   Her take on the conference keynote is valuable for all nonprofit leaders: The keynote was from Bill Toliver called "It's nice to be nice to the nice."  Some key takeaways: Your nonprofit can't continue to do a good job if it’s doing an average job of doing too many things. Nonprofits have a moral obligation to the highest quality work. Change your concept of what a campaign means.   Is there a better way forward?  You need to blend the best practices of marketing and socia...

I’ve been carrying around a letter to the editor that I ripped out of the May 26 th issue of Crain’s New York Business.   The letter by Chief Executive Gordon J. Campbell of the United Way of New York City is topped by this headline:   Nonprofit Boards Aren’t Piggy Banks:   Trustees Have Broader Duties .   It was written in response to an article about how nonprofit boards in NYC are scrambling for deep-pocketed trustees to help organizations weather this climate of financial distress. Much of the grousing I routinely hear from executive directors is about how their boards aren’t raising enough money no matter the financial environment.   This is a long-standing complaint.   There are a lot of board members out there who don’t give much – or at all – in the way of personal financial gifts nor do they actively work on behalf of the organization to seek financial gifts from others.   One prevalent response to this state of affairs is, “I give of my time.”   And yes, that, too, is i...

Non-profit organizations  are only as donor-worthy as the strength of their missions and the focus of their programs -- both have to be compelling, of high quality, serving a defined need, and measurable in their outcomes.  This requires an organizational commitment to building and enhancing internal capacity as well as to being responsive to members and other stakeholders, as well as to the community (including oversight/regulatory agencies and funders).  The competition for dollars and audience is great, and getting greater.  There are more than 2000 arts organizations in New York State.  Think of all the nonprofits in your community or region -- schools, hospitals, religious organizations, museums, libraries, social service organizations. Each one has a mission, a need, and to greater or lesser degrees, each is seeking funding.  Now think of all the fundraising material you personally receive each week or month.  What appeals came in the mail or over the telephone last week?  ...