advancing
Issue 12 • August 2O11
fundraising Madison Down Under
“UPWARDS TO SUCCESS”
New social media standard
An FIA world first! Executive salaries
Women still lagging behind Produced by the FIA — peak body for fundraising professionals Annual subscription: $90 including GST
Is your donor database a bit like a Nokia brick from the 80’s, should have retired gracefully years back? Or is it more of an iPhone, easy to use and able to do more than you ever thought possible?
If you’ve got a Nokia brick then get ready for the revolution. Technology is changing across the world and it’s about to change for the not-for-profit sector as well.
Introducing
Visit www.appichar.com.au
CONTENTS
MDU – the gift that goes on giving >p24
CEO’s role in fundraising >P6
CONTENTS
Whose image? Ethics in a digitally connected world >p30
4 CHAIRMAN’S PERSPECTIVE / CEO’S UPDATE
ORGANISATIONAL MEMBER PROFILE
OPERATIONS
28 MATER FOUNDATION: Challenging, inspiring, engaging
6 CEOS, BOARDS & FUNDRAISERS: Getting the balance right John Jeffries 10 A GUIDE TO THE TENDERING PROCESS Trevor Mason
13 BEWARE THE PONDEROUS POSITION DESCRIPTION Dylys Bertelsen 14 EXECUTIVE SALARIES UP, but women still lagging Damien Smith 15 ARE YOU WORKING TO AN IT PLAN? Paul Ramsbottom
16 TECHNOLOGY & THE ART OF GOOD COMMUNICATION Ian Ryder RESEARCH 17 SIX REASONS WHY PSYCHOLOGY COUNTS Wendy Scaife
20 2008-09 ANNUS HORRIBILIS? Bruno Yvanovich 22 DISASTERS, DONORS & GIVING: CAF Australia’s latest research Don Willesee 24 MADISON DOWN UNDER
GOVERNANCE 30 WHOSE IMAGE? Ethical concerns in a digitally connected world Naomi Steer
32 NAVIGATING DOORKNOCK & STREET COLLECTION APPEALS Linda Lavarch 34 FIA’S SOCIAL MEDIA STANDARD: A world first Louise Steer INTERNATIONAL PERSPECTIVE 35 IT ALL STARTED WITH MAGGIE THATCHER Steve Thomas FUNDRAISING PRACTICE 36 YOUR ONLINE FUNDRAISING HEALTH CHECK Kristofer Rogers 38 A BOSS’S GUIDE TO RUTHLESS EXPLOITATION Brett de Hoedt 40 RESEARCH REVIEW Dr Kym Madden
INTERNATIONAL SNAPSHOTS Ian Fraser, Michelle Campbell and Ann Thompson-Haas
Lesley Ray & Nigel Harris
MDU WILL CHANGE YOUR LIFE Tracey Finlay
41 STATE & TERRITORY NEWS
CONTINUING PROFESSIONAL DEVELOPMENT Professional reading is an important part of your continuing learning. This issue of Advancing Fundraising provides 1.75 CPD points. Fundraising Institute Australia PO Box 642 Chatswood NSW 2057 Tel: +61 2 9411 6644 Fax: +61 2 9411 6655
Advancing Fundraising is produced bi-monthly by the Fundraising Institute Australia – the peak body for professional fundraising in Australia – as a member benefit for the professional development of members. The magazine is also available by subscription. ISSN 1837-901X For editorial, advertising and subscription inquiries: Gail Knox at gknox@fia.org.au Tel: +61 2 9410 5911
Designed by Jody Green: 0402 091 813 aj.green@bigpond.net.au Publication supported by Print National
This magazine is printed on paper from sustainably managed forests and is elemental chlorine free.
FIA welcomes contributions, but publication is at the discretion of the editor. Contributors retain copyright in their works, but grant a non-exclusive worldwide licence of their work to the FIA for publication. No reproduction or distribution can be made without the permission of the author and the FIA. The information in this publication is published for general purposes only and FIA disclaims all liability for any reliance by any person on that information.
August 2011 3
CHAIRMAN & CEO
Chairman’s Perspective
Taking fundraising seriously…
I
n Hugh Mackay’s book, What Makes Us Tick? The Ten Desires that Drive Us, there is one of the ten that he singles out and declares to be sovereign, the desire to be taken seriously.
“Take me seriously” is a cry from the heart that underlies so much human behaviour, he suggests. It’s about a deep yearning for ways to be acknowledged as unique and significant.
It is also why I would encourage you to get involved in FIA. Become a volunteer on a local FIA committee. Nominate yourself for election to a state or territory executive. Attend FIA functions.
While this is yearning on a personal level, it is also a yearning on a professional level.
It is my profound belief that FIA is only as strong as its volunteers. Whether you are new to fundraising or an experienced hand, each one of you can make a contribution and it is up to you. All you have to do is either contact your state or territory executive representative, or contact the FIA office and say you would like to be an FIA volunteer.
That is why FIA exists to ensure the profession of fundraising is taken seriously by our employers, governments and the public.
Let’s get serious and, together, let’s make FIA an even better organisation.
We do this through our codes and their enforcement. We do this through professional development. We do this through lobbying and advocacy. And we do this through credentialing such as the CFRE. This is why your membership is so very important. Not only for the sake of the development of the profession, but also for your own professional recognition.
Leo Orland FFIA CFRE
CEO’s UPDATE
Busy time for advocacy in the NFP sector
L
egislative reform continues for the sector with several consultation processes active. The FIA is making submissions on the following matters:
•
Consultation paper (Treasury) – “Better targeting of not-forprofit tax concessions”. This process will influence future activities of NFP entities involved with profits derived from unrelated commercial activities.
•
The Australian Payment Clearing Association is undertaking public consultation on the role of cheques in Australia. In particular, input from the NFP sector will assist in understanding when and why cheques remain a payment option and why other options are being chosen.
•
The Australia Communications and Media Authority is reviewing the Telecommunications (Do Not Call Register) (Telemarketing and Research Calls) Industry Standard 2007. Consultation has been ongoing over the past two years, and it is intended that a revised standard will be released in September this year.
•
The recently introduced Consumer Law (January 2011) has several areas which impact on the sector. While no formal public consultation process is in place, FIA is engaged with other stakeholders pursuing several issues related to this legislation.
4 Fundraising Institute Australia
•
The Senate Economics References Committee has launched an inquiry into mechanisms and options for developing a robust capital market for social economy organisations in Australia.
Individual FIA membership renewals are now open and I hope many of you take advantage of the new fee structure, as well as utilising the online renewal option. Thank you to all who have renewed or joined as this supports the important advocacy, professional development and policy work undertaken by FIA. Upcoming key national events include: Madison Down Under (August 26-30) with its impressive line-up of international and Australian fundraising professionals; and a National Master Class with Eva Aldrich, Associate Director of Public Service and The Fund Raising School at the Centre of Philanthropy at Indiana University (October). I hope to share more on the reform front with you in the next issue and, as always, welcome member feedback.
Chris McMillan MFIA
Fundraising We have the knowledge to know what really matters Who we’re helping Robejohn works with leading non-profit organisations across Australia, New Zealand and internationally. For over 24 years we’ve helped our clients to raise vital funds so they can continue to do the fantastic work they do.
How we’re helping We use all our knowledge and resources to do this through many channels and areas of expertise. These include fundraising development and planning, data analysis, creative and marketing solutions for print, mail, phone and online. At Robejohn, we keep up to date with what’s happening in the world of fundraising, so our clients receive the best advice based on the latest learnings from around the world.
Why we’re helping Robejohn works passionately and responsibly in partnership with non-profit organisations to develop relationship fundraising practice. Our direct response agency and fundraising consultancy services help to build strong, dynamic fundraising, marketing and communications programs.
www.robejohn.com.au (03) 9522 8500
OPERATIONS
CEOs, boards and fundraisers
“Getting the balance right” A CEO of many years experience, John Jeffries shares his wisdom on how CEOs, boards and fundraisers can work better together towards achieving a charity’s fundraising goals.
I
have been asked to write about the CEO’s role in fundraising.
For many I suspect you think this should be a very short article. In fact – just two words.
KEEP OUT And to be frank, for some CEO’s I know, I think this would be good advice. Therefore, I would like to begin by looking at the role of a CEO of a charity or not-for-profit – and as we explore this question, you may find that we come to some surprising conclusions. The CEO’s role in a charity or notfor-profit has many similarities to the CEO of a for-profit enterprise. However, there are a few key differences, which bring some unique pressures to bear on anyone who takes on the role of a CEO of a charity.
The board: reporting dilemmas First, the reporting structure – most CEOs report to a volunteer board, and act as the sole interface between the board and the staff of an organisation. Over the past decade the duties of board members have become more onerous – and charities are now finding it hard to recruit high-performing board members. Many charities in Australia were impacted some years ago by American-influenced fundraising consultants who urged charities to recruit large donors to their boards. Their mantra was board members should – • Give • Get others to give • Or get-off Or another was – • Wealth • Wisdom • Work – with only two of these three attributes being necessary.
6 Fundraising Institute Australia
However, I believe wisdom and work are not negotiable qualities for a board member – they are mandatory. And so some people were elected to a board for their ability to give, rather than their ability to govern. Other boards are populated by people with a personal experience of the cause – their child may have the disease, or they may have had a personal encounter with the cause. Very good-hearted people – but not always possessing the skills needed to govern. How a charity selects its board can be the genesis of the problems of many charities. Many engage in board cloning – this means that whenever a board position is open, other board members will suggest a person who looks a lot like them. So here we have the start of a big problem for CEOs. The board they report to often lacks governance skills, has been recruited from a small pool, often for the wrong reasons, are unpaid, so they commit very
OPERaTIONS
And this is whom the CEO must report to! And many CEOs are the most active recruiters for the board. What other job do you get where you can recruit you boss? Consequently, board members are often personal friends of the CEO, which adds yet another level of complication. One of the chief duties of a board is to recruit and assess the performance of the CEO, that is, to appoint and to disappoint the CEO – a task for which many boards are eminently unqualified. And so many CEOs in position today have not undergone an assessment of their performance, or worse, have had inflicted upon them an unhelpful and unprofessional assessment of their performance. The next challenge is the personal relationships between the board and the staff. Under our Australian model of charities, the board has one employee – the CEO. In theory, they are the sole connection between the board and the management. This is an area full of landmines. Many staff within a charity want access to the board – and at times need access to the board – especially if the fundraiser wants their help with raising money. Other staff want access to complain about the CEO – not ideal, but a reality in many charities. Equally many board members feel that to do their job right, they need access to the staff, whether it be to engage in some of the programmatic work of the charity, check everything is OK “on the ground” or to help out with the fundraising etc. Recently I was asked to sit in a board meeting of an organisation I was counselling. It became clear in the board discussions that they suspected there were some major problems in the fundraising aspects of the organisation, and that the CEO was not reporting on the true extent of the problems. The board was populated entirely by nice people, but none of them had the skill or experience to professionally address this matter. And so one of them informed the CEO that he intended to speak personally to many of the staff of the organisation to determine if there was a problem.
However, the nature of how this was handled has left a board deeply suspicious that “something is wrong in the state of Denmark”, and the CEO seeing the board as a bunch of incompetent meddlers focussing on management instead of governance.
‘‘
I believe wisdom and work are not negotiable qualities for a board member – they are mandatory.
‘‘
little time to the task, and in many cases they have a personal agenda that is at odds with the charity’s agenda.
And so many Australian charities are in crisis – a crisis that’s genesis lies in the composition of the boards, and their relationship with the CEOs. It has been said there are only two kinds of charities in Australia – those in which the CEO runs everything, including the board, and those in which a faction of the board runs everything including the CEO. Getting the balance between the board and CEO right is a huge challenge that very few charities achieve, and those that do put enormous effort into both creating and maintaining a professional organisation.
g prov id in Proud ly it ie s, gn to char web de si ions and at ci so NG Os, as fit -for-pro ot her not ions. orga nisat
t fi o r p r not-fo
e t i s web n desig
*
ent system managem content g & suppor t , d il bu in site and host ude web ic es incl le sforce, * our serv grat ion w it h Sa te in te websi
s,
The CEO responded by saying, in an aggressive tone: “You are not allowed to do that – it is against the rules.” In a sense both were right – and both were wrong. The board member was right to start a process of investigation when he had reason to believe something was wrong with the fundraising. The CEO was right to say that the board should not have unfettered, carte blanche access to the staff.
Say hello, we’d love to hear from you! paul@fatbeehive.com.au | 0466 580 746 www.fatbeehive.com.au
August 2011 7
OPERATIONS From page 7
CEO’s role The responsibilities of a CEO fall into four main areas. 1.
The programmatic work of the organisation.
2.
The finance – money in and money out. The accounts – the balance sheet.
3.
The HR – the people – the hiring and firing – ensuring the right people are in the right job
4.
The marketing and sales – what we call fundraising
I know of several charities in crisis, or on the verge of crisis, due to the CEO’s lack of skill in this area. I know of some charities that have folded, or will fold, simply because the CEO lacked basic arithmetic skills. If you want to be a CEO, and you lack this skill, please choose another career.
The CEO must be an expert in one of these four areas.
Many people say quite openly: “I am not a figures person.” I am not being judgemental on this. I am just simply saying: “Your gifts lie elsewhere – please do not throw your hat in the ring as a CEO.”
And they also must know enough about the other three not to have the wool pulled over their eyes.
I have seen too many charities critically– and some fatally – damaged because the CEO was not honest with themselves over this issue.
This is critical. Let’s examine this in a bit of detail.
Thirdly, a CEO has to understand HR. Yes – to some extent they have to be a people person.
Firstly the CEO must know about the programmatic work of the organisation. Most CEOs I know score well on this item. Secondly, the CEO has to understand the financial health of the organisation – they must be able to read and understand a balance sheet. When an organisation commits funding to a project over many years, the CEO must have an understanding of the cash-flow impact of such a decision. My experience is that CEOs are quite polarised on this skill – for many they are fine, but for a surprisingly large minority, this is a key problem.
The recruiting and maintaining of key personnel for a charity is a key issue for charities – and it is only going to become harder. In the next few years, five times as many baby boomers will leave the workforce as those who will enter. At CBM we are already seeing the first signs of difficulty in recruiting staff for some key positions. Fourthly, the CEO is responsible for the income of an organisation – and for charities this includes the fundraising. Charities vary enormously in their reliance on fundraising revenue – for some it is their only source of revenue, while for others it is a minor source. This often leads to CEOs having varying interests in fundraising.
Fundraiser’s role So let’s consider what an Australian fundraiser looks like.
new fundraisers – up to half have been in the profession for less than two years.
Firstly, most did not go through school saying when I grow up I want to be a fundraiser!
People who are inexperienced, unqualified and in some cases unsuited, for one of the most important roles in charities across Australia (some of whom are going to make lots of the same mistakes as their predecessors), conclude the job is too hard, and then move on to an easier career.
“Fred, you know a bit about marketing. Can you run the capital campaign?” “Julie, you ran the lamington drive at the school. Can you organise the direct mail campaign?” “Sam, you’re quite ‘arty’. Can you design the quarterly magazine?” “Joe, you have personal experience with the cause. Can you speak to a few Rotary groups?” Secondly, he or she is probably very new to the job. There is an exceedingly high turnover in the industry – partly because the job is extremely hard. One of the consequences of this is that FIA is continually running training courses for 8 Fundraising Institute Australia
This leads to stressed and inexperienced fundraisers with unreasonable targets and budgets, who find themselves having to work with stressed and overworked CEOs – some of whom are out their depth, reporting to boards that do not have their eye on the governance ball, but other agendas to run.
‘‘
‘‘
It was not a career they chose by choice – for most they got there by accident.
Fundraisers need to be more professional.
Challenges to confront I think there are a few challenges we must confront. Firstly fundraisers need to clean up their own backyard. •
Fundraisers need to be more professional. They should be continually seeing how they can improve their learning, their knowledge and their abilities – and the FIA has a strong role to play in this area. And so do mentors, industry groups, and a myriad of other courses.
•
Fundraisers need to be more judicious about deciding when and how to use their CEO. I acknowledge that this will vary according to how large a component fundraising is of your income budget. This is an art, not a science, and is often influenced by the personality of the CEO.
OPERaTIONS
•
Fundraisers need to be called to account for their results. Too many bad campaigns are justified with the phrase – “nevertheless it was good PR value”.
•
Fundraisers need to stay in their jobs longer. At the micro level I can fully understand why many leave, but at the macro level, a lot of charities are spending too long training new fundraisers and waiting for them to get up to scratch.
Secondly, I think we need to work on the CEOs. •
CEOs need to be educated to see fundraising as a specialist skill, and the fundraising position in a charity as a key position.
•
CEOs should be urged to set reasonable fundraising budgets. I know of several organisations where the income budget is set, less than scientifically, without the fundraisers input.
•
CEOs need to undergo ongoing professional development. The Australian Institute of Company Directors (AICD) runs an excellent program for leaders of not-for-profits.
•
CEOs need to acknowledge they have a role to play in fundraising – it is their face and name that the donors know – and so they have to be prepared to take an upfront role at key times. Therefore, the CEO has to adopt a role of some visibility – but both the CEO and fundraiser must be judicious about when and how this is handled.
•
We need to review how boards are composed in Australia, as many of the problems in charities in Australia have their genesis in the board composition.
There is a saying in the business world that nothing starts until someone sells something to someone. And for many charities, we know that nothing will happen until someone gives a gift. The fundraiser’s role is vital – the success of your organisation may depend on how well the fundraiser and the CEO can work together. Invest the time and energy to get the balance right.
John Jeffries has been CEO of CBM Australia for the past 19 years, and has served that organisation since 1982. He has contributed to the worldwide growth of CBM into the largest organisation
certification demonstrates your commitment By Nicole Beatty MFIA CFRE
The youngest CFRE in Australia explains why this international certification is vital to advancing her career as a fundraiser. What have been some of your career steps as a fundraising professional? Like the majority of fundraisers, I fell into this profession at a very young age. My extracurricular activities have always focussed on community development and humanitarian causes, so turning a lifestyle into a career was an organic progression of interest for me. The building blocks in getting to where I am today have included volunteering for meaningful causes, co-establishing my own Canadian charity and promoting the important role that young people play in philanthropy. How did CFRE certification fit your career and personal development? When I moved to Melbourne from Toronto last year, obtaining my CFRE certification was my primary objective. Not only did I want to receive the credentials to honour my work to date, I also wanted to demonstrate my commitment to this practice by playing an integral role in Australian society. What are your thoughts on the certification process and preparing for the examination? Preparing the application is not difficult if you keep your portfolio up-to-date. While the study period is 12 weeks and you need to manage your time, I did not find it too taxing. Studying is always enjoyable when it is something you are passionate about! What advice do you have for young fundraisers? I am excited to see where fundraising is going – technology, social entrepreneurship, global engagement – it is a growing industry with a vast group of bright, talented and ambitious young minds coming into the fold. I am extremely appreciative of the opportunity that organisations have invested in me. I strongly encourage my generational peers to find a cause that you are passionate about and get involved – you will be amazed by the difference you can make and, if you’re seeking to take the next step in your career, make the commitment to obtaining your CFRE certification. We need more young fundraisers to help our communities thrive!
working with and for people with disabilities in the developing world. John has also served on the boards of Vision 2020, the Centre for Eye Research Australia, Servants Community Housing
Nicole Beatty is a Consultant at
and Optometry Giving Sight.
Global Philanthropic Pty Ltd in Melbourne. August 2011 9
OPERATIONS
A GUIDE to the
TENDERING PROCESS
Thinking of changing your database software? Trevor Mason explains how to use the tendering process to ensure you choose the best option for your organisation.
A
rguably the most important asset of any charity, notfor-profit or association is the information it has on its donors, members and prospects. To make the most of this it is commonly understood that you need the right combination of people, software and processes to bring success. Let’s suppose you’ve decided the time is right to change your fundraising database software. If you take the right steps, the selection and implementation of a new solution can be a lot easier and will provide the anticipated return on investment. By changing your database, you are making a major change to the “engine room” of the organisation so it needs to be supported by the highest levels of the organisation, and it is essential the senior management and board are supportive otherwise a lot of time and energy will be wasted. According to one supplier, Jason Haigh, Managing Director of thankQ Solutions, there are four key considerations in the early stages of building an understanding of your organisation’s requirements. 1. Define your user requirements
Consider your business needs. Think about your organisation’s objectives around growth, acquisition, communication, tasks and processes; identify the right functional or departmental stakeholders who have their “finger on the pulse” of the organisation. Most importantly, don’t worry about defining the solution or the software – it’s essential for stakeholders to say what they need, not how to solve it.
10 Fundraising Institute Australia
2. Do your homework and research
Some suppliers have many years of experience in the fundraising and NFP space so they can offer valuable help and guidance. Consider which reputable suppliers are in the market and what they offer, speak to the FIA and other relevant bodies about the available options. Get the suppliers in to do initial presentations; use this as an opportunity to learn, gain ideas and understand the ball-park costs associated with the solutions. You are embarking on a time of change, so it is important to not only duplicate the processes you have today, but also to find new and improved ways of doing things. “One tip is to take a look at organisations that are similar to you in size, philosophy and operations and see what they are doing, and what has and hasn’t worked for them,” Jason Haigh advises. “However, also investigate organisations that are where you ultimately want to be and see what tools they used to get them there. Understand what they would do differently if they had the chance again”. 3. Manage your internal processes
You should be able to present a business case to the senior management and board outlining the opportunity along with associated ball-park costs and benefits. It is important to get an in-principle agreement before you proceed with the next steps. Many projects have failed at the last hurdle because the senior management hadn’t been “consulted or educated about the cost/benefit”. Finally, don’t forget the functional/departmental stakeholders; picking the right personalities and including them in the process can increase the success of the project through “buy-in” at the initial stages.
OPERaTIONS
4. Comparing apples with… well, lemons
Once you have completed steps one to three it may be obvious you have found a vendor that can satisfy all your needs and you are confident working with. If this is the case then you may feel comfortable working with that vendor to produce a final requirements specification and commercial arrangement. If that is not the case or if your organisation has rules that require more than one quote, then you need to proceed to the next, more formal step of creating a formal requirements list as a request for proposal (RFP). In creating a requirements list you are formalising the process of getting potential vendors to provide information about how their products and services meet your needs. By providing a clear and well thought through framework of requirements you allow the vendor to prepare their response in a transparent manner, making the selection process easier; you’ll be able to compare vendors “apples for apples”.
•
Schedule of events – Provide a timeline for the vendors including the date of the RFP release, proposal deadline and vendor presentations.
•
List evaluation procedure and criteria – Include the grading and weighting you put against each of these criteria.
•
Provide contact information for enquiries.
Section 2: Proposal and presentation guidelines This is where you tell the vendor what functions you want the software to be able to perform and the functions you would like to be demonstrated. If you don’t see it, it may not exist or it may be in a form that doesn’t suit you. You can also provide guidelines for any other information you are seeking. For example: •
Functionality – List all business functions you require of the software and divide each function requirement into “mandatory” and “desirable” subheadings. Remember to weight the functionality as to how useful it is to your organisation.
•
Processes – Look at how the functionality delivers the end-to-end requirements. It isn’t sufficient to consider features that solve a “point” problem, but look at how the features combine to provide an overall benefit.
•
Reporting – Outline the reporting capability you are seeking.
The most important thing is to be comprehensive and honest, then the proposals you receive are likely to be comprehensive and honest. It’s important to share as much information as you can with the prospective vendors; after all you are looking to form a long term successful partnership.
•
Data analysis – Outline the type of data analysis you are interested in.
•
Legacy data – Outline your current data and its quality in order to obtain an understanding of what will be the outcome in moving to the new solution.
Your RFP should include all of the following sections to ensure a comprehensive and clear response:
•
System implementation – Ask the vendor about their implementation approach and timelines.
•
Technical specifications – Ask the vendor about the IT requirements of their software, for example:
As long as you take a systematic approach and break the process down into manageable tasks creating a formal requirements list is not too difficult to develop a solid document.
Section 1: Introduction •
•
Executive summary – Describe the nature and structure of your business. Outline the reasons you are considering the software solution. Scope – Outline the organisation of the RFP document.
- Database platform - Computer hardware requirements (both PC and server) - Ongoing support – Ask the vendor how they approach ongoing support, training and software maintenance.
At the end of the day... it’s the fit that counts! And nowhere is cultural fit and synergy more important than when you’re striving to surround yourself with the best people.
Shining with intelligence, intuition and energy, these are people of generous spirit who take their work – although rarely themselves – very seriously.
Frequently – the most qualified and experienced, ‘best Make the first move today. Ring 07 3211 people’ value-add with their extra dimensions of optimism 0001 and talk to CEO Dylys Bertelsen about and energy, creativity and perseverance. your needs.
Level 4, 232 Adelaide Street ~ Brisbane Qld 4000 ~ 07 3211 0001 ~ www.windsor-recruitment.com
August 2011 11
OPERATIONS From page 11
Section 3: Proposal response layout
- Solution configuration and implementation. - Solution customisation.
In this section you advise the vendor how you want the proposal to be arranged and structured including:
- Solution services, support, maintenance and upgrade charges.
•
Executive summary (maximum one page)
- Solution training, consultation and other charges.
•
Organisation overview (maximum five pages)
- Hourly rate for ad hoc consulting services.
•
Solution overview and details (maximum 10 pages) – functionality information and answers to questions asked in the previous section.
•
References (maximum one page) – organisations using the proposed solution.
•
Cost (maximum one page) – indication of upfront costs for the vendor’s solution and ongoing (one, two and five year) costs, for example:
•
Reference material – typical marketing, system and procedure documentation, and training material.
Finally, you’ll need to decide how you want to “advertise” your opportunity. Some organisations need to place advertisements, but if you have done your homework you can issue the RFP to your identified “wish list” of potential vendors.
Selection Process
The hardest part of the process is evaluating the vendor’s proposals. An evaluation check sheet is an invaluable aid to help you make the right decision. Here is an extract of a sample checklist template: Weighting (importance to org.) %
Contact Management
Does not satisfy need (0)
Partly satisfies need (1)
Satisfies need
Exceeds need
(2)
(3)
1.1 Intuitive and easy to use search facility: a) Supports wildcards in any field. b) Can combine different fields to form search. c) Can save search for subsequent re-use. 1.2 Adding contacts: a) One by one. b) Via bulk import tool for adding or updating data. 1.3 Adding contacts: a) Enforcing mandatory and advisory fields. b) Automatic checks for “dupes” to avoid creating duplicates at every. turn (when inputting single contacts of via bulk import). 1.4 Updating contacts: a) Ability to ensure changes made to core contact data is not wiped out and easily accessible (eg previous name, address, phone number, email, etc). 1.5 Change log: a) Ability to determine information to record in a change log for audit and correction reasons.
Remember each vendor will try to stress their strong points and minimise their weaknesses. You must ensure each vendor can actually demonstrate they can fully comply with your requirements. Don’t just accept they have ticked the box – make sure they can show you how they will do it. Ensure you have the necessary comparative detail to correctly assess the cost/benefit and return on investment over at least five years. Remember part of your role is to propose a solution that has some form of future proofing included.
Managing the relationship with potential vendors
Just as the effort required for you to prepare an RFP should never be underestimated, nor should the time, cost and investment it takes for a vendor to respond to one. Letting a potential vendor know the decision making process and timeline, providing timely responses around successful proposals and honest feedback to unsuccessful submissions is always appreciated by potential vendors. Great professional relationships and well-executed RFPs help ensure you will get the best suppliers responding to your requests, and means the best fundraising solution for your organisation.
Trevor Mason is a consultant and project manager with more than 30 years industry experience in the IT industry including project management of large business critical projects, senior IT management and IT consulting for application and infrastructure upgrades. 12 Fundraising Institute Australia
OPERATIONS
Beware the “Ponderous POSITION DESCRIPTION” Regular readers may recall the recruitment phenomenon dubbed the “six-headed hydra”. But now there is a new trouble-maker in the sector...
H
ydras are those impossible-to-fill, mega-multi-skill positions created when organisations economise by aggregating three or four “normal” sized roles into one giant one. Fortunately, hydras will soon be extinct. But a new gremlin is stirring trouble across the sector. It’s the PPD or Ponderous Position Description. These mammoth documents have been quietly multiplying from pithy little items into complex, almost book-length dissertations. And it’s not only Windsor Recruitment tripping over these door stops: numerous non-profit clients are also seeking advice on stopping uncontrolled position description (PD) growth. One HR professional confided: “I don’t get it. We expect executives to summarise their careers into four to five page resumes. Then we offer them a job description that can run for 20 pages. It doesn’t compute.” No it doesn’t, especially when these monstrous documents refuse to toe the bottom line. Additional hours and oncosts involved in creating, writing, editing, proofing, amending, re-proofing, printing and distributing a 20-page missive are awesome – particularly when a neat two to three page summary would work better. Position or job descriptions (also called job specifications) are sometimes prepared in two versions. There’s the short circulated PD that’s widely available – the one we work from. But there may also be a longer, more detailed contractual job specification that’s part of the confidential employment agreement reached with a successful candidate.
To recruit effectively, you need the short version PD
Essentially, a descriptive overview document, it allows candidates to measure aspirations, qualifications, and experience against the role on offer. It also provides a list of criteria for the potential employer. But how do you get it right?
• Choose a tone – A concise conversational style is good. A PD doesn’t need to be extremely formal, pompous or longwinded. Common jargon is a trap. Stop and think what a phrase really means. And definitely don’t use 10 big words where one short one is sufficient.
Think about this as a base One of the most elegant, succinct and workable PDs recently across my desk came from the Montessori School Brisbane. It was a fine example of the school’s proficiency in creating clear communications. This position description covered a number of topics, each supported by a handful of well-constructed descriptive sentences or five to seven dot points. In essence, it read: Employment Opportunity • Brief background on the employer company: function, brand and reputation. • What the job is, why it’s available and who the appointee works with.
• Work under headings – A couple of lines under each topic should get your message across.
• What’s expected of the appointee.
• Set limits – A PD should be three pages, maximum.
• Operational framework.
• Don’t oversell – A lot of information commonly included in a PD is already on your website, and any candidate worthy of consideration will study it before responding. The rest of the detail can be communicated in interviews – ideally in the form of a short dotpoint fact sheet.
• Anticipated skills.
• How the business operates: its vision, goals and charter.
The Aspiring Candidate • Ideal experience. • Desirable personal characteristics and personality. And that was it. Written in pleasant, spare prose, it was short, simple, effective and encompassing – and it worked a treat! This is a position description profile that’s definitely worth emulating if your PDs have turned into tomes!
Dylys Bertelsen is the CEO of Windsor Recruitment, Picture: Steve Pohlner
a Brisbane-based not-for-profit recruitment company. August 2011 13
OPERATIONS
Executive salaries up, but women still lagging The 2010/2011 Not for Profit Remuneration Report contains both good and bad news for our sector. Damien Smith outlines the key points including generally increased salaries, but increased disparity for female executives.
E
nterprise Care’s comprehensive survey of not-for-profit executives’ remuneration is now into its second decade. The survey is acknowledged as the pre-eminent provider of remuneration benchmarking data for the not-for-profit (NFP) sector in Australia.
national and/or international activities. Remuneration levels in these organisations continued to recognise the complexity of increasing geographical scope of an organisation. Such complexity generally involves an added layer of governance and organisational challenge that comes with increased reach.
The report contains information from hundreds of organisations for a total of nearly 1900 positions.
The entrenched disparity between male and female remuneration in Australia was again in evidence in 2010-11. The differential for CEO earnings increased, with females earning only 76.9 per cent of males, down from 82.3 per cent last year. Males also had higher average remuneration in 14 of the other 16 reported positions. The exceptions were programs director and publications director positions.
More than 400 organisations again completed the survey, with a higher total number of respondents than the previous year. Despite the lingering impact of the global financial crisis, which in 2009-10 contributed to NFP sector CEO average total remuneration dropping for the first time in nine years, 2010-11 saw this blip reversed. As a consequence, CEO remuneration increased over the previous year’s average and returned to the prior trend of a steady annual increase. Increased 2010-11 averages were also in evidence for all but one of the 16 senior management positions surveyed again in 2010, the exception being the position of technical/research director.
‘‘
‘‘
NSW again ranked as the place to be for higher CEO remuneration payments.
As in previous years, the majority – almost 80 per cent of respondents – reported their headquarters location in Victoria, NSW, ACT or Queensland. NSW again ranked as the place to be for higher CEO remuneration payments. Western Australia followed next and other states continued to jostle for rankings.
Enterprise Care continues to find that executives have successfully used the Remuneration Report in their salary negotiations. Significant adjustments in executive remuneration have been recorded when using this report as a benchmark. Keen to ensure the continued enhanced standing of this valuable report, readers noted the introduction in 2010-11 of an additional position of business/commercial operations director which had an inaugural 91 respondents. The report also continued the presentation of graphical material with trend analysis and reporting. Such material offers increased support for ensuring executives and those with governance responsibilities can readily identify the appropriate action to be taken when determining CEO and management remuneration. Enterprise Care’s 2011-12 Remuneration Survey will shortly be underway with the resulting 2011-12 Not for Profit Remuneration Report being published in October 2011. Contact Enterprise Care at info@enterprisecare.com.au or on 1300 659 613 for further information.
The Enterprise Care report showed the highest remuneration levels are seen for those positions in organisations with Damien Smith founded and became Managing Director of Enterprise Care Pty Ltd In 1988. He is committed to delivering cutting–edge thinking to governance and organisational development to achieve better outcomes for the NFP sector. 14 Fundraising Institute Australia
OPERATIONS
Are you a maverick or working to a plan? Paul Ramsbottom encourages fundraisers to meet the challenge of using their database to track progress against objectives.
Y
ou’ve seen them on TV – the maverick cop. They don’t play by the rules. They rely on their instincts and their contacts on the street, and their innate ability to track down perpetrators on a hunch – just in time for the late news. But they get RESULTS. Why don’t we get TV shows featuring cops who follow procedures and fill out their expense claims on time?
This is called management by objectives. It might remove some of the mystique from the art of fundraising, but it also takes out some of the stress and the guesswork. You can still add in that leap-of-faith ingredient, but at least you’ll know how big that leap has to be. Paul Ramsbottom is the Managing Director of Advanced Solutions International (ASI) Asia Pacific.
Fundraisers might be similarly categorised – the mavericks are those who have the right contacts, make inspired judgment calls, and play fast and loose with data-entry standards, but somehow the funds come in. Meanwhile, the rest of us rely on more prosaic techniques, or at least a blend of inspiration and perspiration, to win the support of our donors. Whereas the lifeblood of the detective is a combination of clues and putting in the hard yards, we have to base our fundraising strategies on a combination of gut instinct and information. Information about what works and what doesn’t work based on prior experience and research. Our database systems may be great at producing flashy charts, dashboards and the like, but do they really tell us what we need to know? The trick is to get the information that tells you how you’re doing against the objectives. In order to do that, you need to define your objectives in the first place. And those objectives flow out of your vision (or strategic plan) for the next few years. So in my experience, that’s the biggest challenge charities face in this area. Not the ability of the technology to produce reports – they have been able to do that for many years now, it is the ability of the charity to connect the dots between its vision and the objectives so the right information can be produced and enable you to effectively monitor the objectives. Or to put it another way, you are not able to get a database report to show how close you are to achieving your vision because the vision itself is not measurable (although you should be able to tell when you’ve achieved it). But you are able to get reports that track your progress against objectives that relate to the vision. August 2011 15
OPERATIONS
Technology and the art of good communication With the sorts of analytics available now, Ian Ryder maintains you can build an informed picture of your supporter base.
T
here’s an art to good communications, some people get it and some people don’t. The world of information technology is renowned for failing in this particular area and I can confirm from my experience, you’ve got to be eternally vigilant to make sure the sort of people you bring on are the ones who get it. From an organisational point of view, it’s no different – some organisations do it incredibly well; others never quite get the importance of it and put their energies in other directions. For organisations that have no product in the traditional sense – and that means a large chunk of the not-for-profit sector – communications is even more important. Too little, and your supporters might forget you and move on to the next thing. Too much, and they’ll be turned off and then it’s a really hard road to win back trust. Modern technologies have changed things massively in how organisations can communicate with their supporters, email marketing being one of the most powerful tools in the armoury. With a good management system at the backend you can record to a fine detail exactly how a supporter wants to be communicated with – how they want to be thanked, what sorts of campaigns they might be interested in, whether they prefer email or paper and so on. Some of the better email marketing solutions allow you to analyse very precisely how people respond to your emails and
then allow you respond in return based on their behaviour – all based on rules and completely automated once you’ve planned out the campaign. With the sorts of analytics available now, you can build an informed picture of your supporter base, what they respond to and what turns them off and all in real time so you can adapt your own behaviour as and when you need. As with every type of technology system, there are a whole range of email marketing options from the basic right up to the fully fledged marketing solution designed for the most sophisticated organisation. The good thing these days is that the more modern relationship management platforms allow you to integrate with a range of options so you’re never tied to one option – if you change, you can change your email marketing solution without throwing out the whole underlying relationship management solution.
Ian Ryder is the managing director of appiChar Australia, the technology partner for the not-for-profit sector. Visit their website http://www.appichar.com.au or email Ian at i.ryder@appichar.com.au
Has your organisation conducted an outstanding fundraising campaign? Enter your campaign in FIA’s 2012 National Awards for Excellence in Fundraising! FIA’s National Awards for Excellence in Fundraising recognise the outstanding initiatives and innovative efforts of fundraisers, volunteers and organisations. The awards encourage the highest standard of professional practice and promote the role of fundraisers in making our society a better place to work and live. Applications are invited across six categories for organisational awards at state level; state winners progress to entry in the national awards. National award winners will be announced during FIA’s 35th International Fundraising Conference on the Gold Coast. Visit the ‘Awards and Scholarships’ section of our website www.fia.org.au for more information and award entry details. 16 Fundraising Institute Australia
The 2012 award categories are: • Capital Campaigns / Major Gifts / Bequests • Donor Acquisition • Budget Renewal • Special Events • Best Use of Electronic Media • Fundraising Marketing The closing date for entries is Friday 26th August, so don’t delay!
RESEARCH
Six reasons
why psychology counts Senior research fellow Dr Wendy Scaife serves up the “best brew” of psychology for “psycho-aware” charities.
D
onors are not like Pavlov’s dogs. We’d have to be a few fries short of a Happy Meal to think we can condition people to give as an automatic reaction. Fundraising psychology is about professionalism, not manipulation, relationships not transactions, and about adding depth to how we serve supporters as well-understood individuals. Fundraising – despite the lingo – is not selling. It’s more about invitations to join an important activity than selling a product. Psychology studies abound and they need distilling. So this article acts as a “tea strainer” to capture the best brew of psychology as it pertains to fundraising.
is understandable. It is in people’s own financial interest to “free ride” – to let government/others pay – but some people choose not to accept the free ride, bless ’em! Nonetheless, giving is counterintuitive and so psychologically intriguing. 2. Giving is hard to sustain.
Sustained giving is the exception. Burk (2003) suggests commonly a 40-60 per cent lapse between a first and second donation. It can proceed to a 30 per cent year-on-year loss thereafter (Sargeant and Jay, 2004). Is it that people can’t afford that second or third donation? More likely it’s that we haven’t gotten on their wavelength. 3. Loyalty rocks.
Six reasons why psychology counts 1. Giving is rarely proactive, other than in disasters.
In normal times, most people won’t give unless asked, and then only a proportion respond. Consider the $265 million flood or $379 million bushfire appeal. Great – but how many of us were donating for fire/cyclone shelters ahead to avoid loss of life? Fundraisers weren’t out asking for these amenities so... no ask... no result. For most of us, it takes fundraisers working psychologically-savvy at this tipping point between intentions and actions to spark actual giving. Non-giving
Enter the world’s only Fundraising Professor, Adrian Sargeant, and his pragmatic work on loyalty, commitment, satisfaction, trust and donor lifetime value. Imprint Sargeant’s finding as your screensaver: Increasing donor loyalty as little as 10 per cent can improve ROI an average 50 per cent! There’s lots of drivers in books like his Tiny Essentials of Donor Loyalty, but three takeout messages are: Loyalty is about donor SATISFACTION with service quality, COMMITMENT to a continuing relationship, and TRUST that their previous and future donations are impacting the cause.
So what are good “pscho-aware” charities doing? Surveying and acting on their donor satisfaction levels; building commitment through planned multiple engagements (volunteering, giving, advocacy) and opportunities to learn the cause; and reporting often and well (for some great examples, see New Philanthropy Capital). I was struck when researching US arts and sports organisations how many were loyalty-focused, for example, embracing their “average” givers in capital campaigns, seeking their loyalty by asking them to match their usual annual gift with a special gift on top of that for the next five years. 4. Chain reaction.
Knowing donors well is an ultimate courtesy and point of professionalism, breeding engaged givers, who are happier humans. US fundraising doyen Hank Rosso always said that prospect research was a basic donor courtesy. Certainly, at major gift levels we hear this here too. Understanding donors is more than good manners. Burk, Joyeux, Sprinkel Grace and others tell us to focus on the donor and their values, to be donor-centric, while Burnett and others emphasise relationships. Fundraisers build rapport, and rapport is based on knowing one another. Growing relationships builds August 2011 17
RESEARCH From page 17
sustained giving. Sustained giving in turn builds sturdy organisations/community outcomes. It also delivers a real zing for donors too as we know. Giving makes people feel competent, empowered and engaged in living. A US survey of 30,000 households charts this happiness link, finding charity givers were 43 per cent more likely to be very happy with their lives (Social Capital Community Benchmark Survey 2000). Social psychology experiments show how people spend their money may be at least as important as how much money they earn (Dunn et al 2008). The new field of neuroeconomics tells us that giving activates pleasure-associated brain parts, producing what psychologists call the “helper’s high”, euphoria from giving and volunteering that are a mild version of the sensations derived from morphine and heroin! 5. Motivation – it’s our space. Are you a “hygienic motivator”?
Herzberg’s two-factor theory of emotion tells us that satisfaction and dissatisfaction are different animals. We will become
dissatisfied if basic qualities are not present, such as accountability, spelling someone’s name right, remembering them when they attend functions, sending a prompt “thank you” and so on.
for an individual. Usually this mix is some intrinsic factors (eg altruism) and some extrinsic (eg prestige). Discovering an individual’s motivations is the key to the gift.
These “institutional readiness” factors are insufficient themselves to make a donor give, but if not present they can make them unhappy, dissatisfied and ungiving. For example, an organisation I know in its campaign feasibility study learned its board committee were seen as “unknowns” and potential donors were uncomfortable donating large gifts to the current leadership. A campaign board was recruited of high profile business people and the results soared. The “motivators” were able to act at that point – the project quality and its outcomes, the donor sense of achievement, naming rights etc.
6. Identity can move to identification with your cause.
Significant studies have delineated motivators, ranging from altruism, gratitude, fear, guilt, salvation, grief, “giving to get” to status/prestige and the list goes on. Other work has highlighted giving happens when a project ticks a cluster of three to four primary motives
We all have multiple identities (though not all in the “United States of Tara” sense!). A donor may be Australian, QUT-educated, an Institute of Engineers member, a theatre-lover, bushwalker, brother of someone with kidney issues and married to a person with a different set of identities. So many touchpoints to so many causes that fundraisers use to build a cadre of “true believers”, people who have a reason to get involved with your organisation initially. A major hospital put this identity theory to work by bonding an ethnic group to the hospital – even to the extent of creating multi-lingual signage throughout the premises and honour boards. Gender is another common identity link and women are increasingly touted
CREATING LASTING IMPRESSIONS IN PRINT
At Print National we have an eye for design, quality and service - these issues are the key to our customer satisfaction. Supported by our in-house design, prepress and film planning facilities, we offer our clients a one stop service. We offer quality colour printing from direct mail pieces and brochures, through to magazine production. Print National start with your objectives and work from that point, as integral members of your team, to help you develop the most cost effective print solutions for your budget.
SYDNEY: 16-18 Carter Street Homebush Bay NSW 2127 Tel: 02 4328 5644 Fax: 02 9648 2524 LISAROW: 872 Pacific Highway Lisarow NSW 2250 Tel: 02 4328 5644 Fax: 02 4328 5840 NEWCASTLE: 10 Denney Street Broadmeadow NSW 2292 Tel: 02 4908 5800 Fax: 02 4969 4844
iprint@printnational.com.au
18 Fundraising Institute Australia
www.printnational.com.au
RESEARCH
as the future face of philanthropy. The psychology of gender and gendersensitive giving are emergent (eg Australian Women’s Donor Network). Studies focus on points of difference in female giving (often more loyal, information-hungry and collaborative, perhaps reflecting a stronger need for affiliation compared with male giving, which studies suggest often reflects a stronger need for power and status). Giver typologies proliferate, notably Prince and File’s work with 12 US fundraising firms to study characteristics of 215 major donors and discern their giving values/philanthropic mind states. The largest type is said to be “Communitarians”, people who give because it makes good sense (for the community in which they live and work, and for business). Others in order include: the Devout, the Investor, the Socialite, the Altruist, the Repayer and the Dynast. We are seeing more Dynasts emerge here today, thanks to the private ancillary fund and its ability to involve family in that often perpetual giving structure. Other studies point to underlining people’s sense of self. For instance, studies of welcome letters saying, “Thank you for becoming a member of ‘xyz’ charity,” compared with, “Thank you for becoming a caring and compassionate member…” show a higher average gift for the approach that underlines how people feel about themselves. This translates to all writing (eg Tom Ahern’s choice to badge an envelope with the words, “If you believe in hospices as much as I do…” is another clear example of reinforcing people’s sense of self as a decent, caring human). This all stems from “warm glow” theory, which tells us that people don’t give just to save the rainforests: they are giving to feel the glow that comes with being a rainforestsaving kind of person. Schervish’s theory
of identification sees giving as a unity of self-development and community development and that giving is not an absence of self (as altruism theorists say), but a presence of self. Another important identity to promote is as a personal cause champion. We see this in the charity wristband fad, personal webpages (see mycarezone.org), participatory events (Shave for a Cure, Movember) and adventure fundraising. Recent research even tracks that painful fundraising events (marathons, firewalks) carry a “martyrdom effect” – when people suffer for a cause they become more involved and more motivated to help and give. Another intriguing study investigated the role of seed money (Rondeau and List 2008) with overwhelming results. The more upfront money on hand, the more additional money was raised. The bandwagon effect is at work, along with confidence that the giving would make a difference. The opposite, a futility effect has been noted in research that shows people will give more to save 80 per cent of 100 lives at risk (80 lives) than to save 20 per cent of 1,000 lives at risk (200 lives). On a final note about identity, studies conclude that we use others’ donations as the signal for appropriate contribution levels. The story goes that a fundraiser for Bill Gates’ former Seattle high school asked him to support a school campaign. Gates enquired how much everyone else is giving and was told, “About $75”.
References Burk, Penelope (2003) Donor-Centered fundraising: how to hold on to your donors and raise much more money, Burk and Associates Ltd, Hamilton, Ontario. Dunn, E. W. et al (2008) Spending money on others promotes happiness. Science March 21;319(5870):1687-1688. Prince, Russ Alan and File, Karen Maru (1995) “Philanthropic cultures of mind”, New Directions in Philanthropic Fundraising, Issue 8: 125-135. Rondeau, Daniel and List, John (2008) “Matching and challenge gifts to charity: evidence from laboratory and natural field experiments,” Experimental Economics, Springer, vol. 11(3), pages 253-267, September. Sargeant, Adrian and Jay, Elaine (2004) Building donor loyalty: the fundraiser’s guide to increasing lifetime value, Jossey-Bass, San Francisco. Schervish, Paul and Havens, John (2001) The Boston Area Diary Study and the Moral Citizenship of Care, Social Welfare Research Institute, Boston College.
New Philanthropy Capital, http://www.philanthropycapital.org/ publications/improving_the_sector/ improving_charities/talking_about_results. aspx). Social Capital Community Benchmark Survey (2000), http://www.cfsv.org/ communitysurvey/
“So put me down for $75,” says Gates! What might have happened if a psychologically-alert campaigner had instead said, “Most people are giving .001% of their income!”?
Dr Wendy Scaife MFIA BBusComm MBusMgt PhD is a Senior Research Fellow at the Faculty of Business, Australian Centre for Philanthropy and Nonprofit Studies, Queensland University of Technology.
August 2011 19
RESEARCH
2008-09
Annus horribilis? Leading NFP researcher Bruno Yvanovich examines the impact of natural and financial disasters on personal donations in the 2008-09 financial year.
I
t was quite a year – the full fury of the Global Financial Crisis raged and one of the worst natural disasters in the Black Saturday bushfires devastated Victoria in February 2009 with a high cost in lives and property. So how did all these impact on personal donations? The QUT Centre for Philanthropy and Nonprofit Studies has recently released its analysis of Australian Taxation Office tax data for 2008-09 and it’s an intriguing picture. My five faithful readers know the caveats, but if you are new to this, this data is based on individual tax returns for that financial year. It includes claims made for tax-deductible gifts, here called “donations” and those taxpayers who made the claim are “donors”. Corporate giving is excluded, as would be gifts made in the form of merchandise purchases, raffles and the like. The GFC hit in mid 2007 (the Wall Street bailout was in September-October 2007) but as I have previously discussed (see Advancing Fundraising July-August 2010), its effects had not yet fed through fully in that financial year. So that donor vintage was still quite encouraging. However, quite a different picture emerges in 2008-09 when clearly the full force of the economic chaos was felt. It was then that most not-for-profits saw their fundraising impacted heavily.
20 Fundraising Institute Australia
The Big Picture
Overall, total donations in 2008-09 fell 10.8 per cent from the previous year, reversing a decade long upward trend. In line with this, the average donation fell by 14 per cent, bringing it back to the level of two years previous. The GFC clearly hit donors at the top end of the income scale with donations from taxpayers earning more than $1 million collapsing by nearly two-thirds. This collapse in support inspiringly was offset to some extent, especially by Victorians rallying to help their neighbours so cruelly devastated by Black Saturday 2009. Total donations claimed in 2008-09 fell sharply compared to the previous year, as Figure 1 starkly illustrates. This was the first reverse in a long and steady climb which has far exceeded the growth rate in incomes.
In all, there was a decline of 10.8 per cent in total donations compared to 2007-08, or $253 million ($2346m to $2039m). Reflecting the fall in total donations, the average donation also fell sharply, as shown in Figure 2.
RESEARCH
A more noteworthy trend emerges if we exclude those donations from the top income bracket ($1m-plus) discussed previously. What we then find is that donations from all other taxpayers increased by $62.41m, or 3.4 per cent compared to 2007-08. So to some extent, the collapse in support from the top was offset by a rise from the great mass. Finally, zeroing in on Victoria, this table says it all: Year
The fall in 2008-09 of nearly 14 per cent ($73.05) brings the average donation back almost two years to the level of 2006-07. Feeling the Pain
The table below demonstrates how giving by individuals in the top tax bracket ($1 million-plus) collapsed under the impact of the GFC. The total number of donors (and taxpayers) in this bracket was reduced by a fifth, the total donated fell by nearly two-thirds, or $315.4m, and the average donation claimed was more than halved. Year
Total donors
Total donated $M
Average donation $
2007-08
4990
511.69
102,543
2008-09
4030
196.29
48,706
Change %
-19.2
-61.6
-52.5
Tough times indeed. OK, you might say, thanks for the bad news but you haven’t told us much we didn’t already know. Is there any good news?
Total donated $M
Average donation $
% donors to taxpayers
2007-08
472.67
433.49
34.83
2008-09
601.71
470.08
42.08
Change %
+27.3
+8.4
It takes something exceptional to motivate a community to increase its giving by more than a quarter in a single year. Further, the donor participation rate (ratio of donors to taxpayers) rose sharply – indeed, the increase in the number of donors in Victoria was larger than the national increase. Clearly, those devastating bushfires put some philanthropic fire in a lot of bellies. The modest increase in the average donation compared to the total donated strongly suggests that the increase came from many smaller donors, rather than major donors. Final words
The GFC undoubtedly hit giving in Australia hard overall and especially from those in the top income bracket. Nevertheless, Australians still responded to Victoria’s plight and dug deep, despite the difficulties of rising unemployment and financial chaos. Even more inspiring, Victorians exceeded all to show their support for their brothers and sisters. It does say something very affirming about community spirit and care.
Victoria Fires Up
References
Well, yes there is. Despite the fall in the number of donors in the top income bracket, the total number of donors overall actually rose. This was all the more remarkable in the face of a fall in the number of taxpayers as unemployment increased following the GFC – see Figure 3 below.
McGregor-Lowndes, M. and Pelling, E., An Examination of Tax Deductible Donations Made by Individual Australian Taxpayers in 2008 – 09, Working Paper No. CPNS 54, QUT (May 2011). McGregor-Lowndes, M and Hoffman, K, An Examination of Tax Deductible Donations Made by Individual Australian Taxpayers in 2007-08, Working Paper No. 51, CPNS May 2010
Bruno Yvanovich FFIA MPA BSc is Partnerships and Development Manager at the Australian Catholic University.
August 2011 21
RESEARCH
Disasters, Donors & Giving. Don Willesee reveals there are dire warnings for fundraisers from CAF Australia’s latest research into workplace payroll giving. There is a knowledgeable saying in fundraising/philanthropy that when a donation is received: “Thank the donor, thank the donor, thank the donor… and when they say ‘no need to thank me’, you thank them again.” A very insightful research project just completed by CAF Australia updates this sage advice and expands on what donors want; and what they are not getting from too many charities receiving their money. In the case of employee donors contributing through company promoted community activities such as workplace payroll giving, the message is that they want to be involved and engaged with their boss. While this timely data is based on the responses of donors supporting charities through pre-taxed workplace payroll giving within their companies, the wider understanding and use of the information is of benefit to all fundraisers, charities and employers who regard themselves as good corporate citizens.
CAF’s Workplace Payroll Giving (WPG) donors who gave through special “one-off ” WPG donations were exceptionally generous with donations averaging $150. It was the most significant “one-off ” giving since the Victorian bushfires in 2009. It raised questions of why people give to disasters; why they support ongoing charitable efforts; do they give only in disasters or only in regular giving – or both…? CAF also sought responses to the impact of “pre-tax” giving through workplace payroll giving; and the importance of the “boss” in the giving process. CAF’s Disasters, Donors & Giving Research, conducted in April 2011, summarises responses from 1045 donors from 59 organisations – private and publicly listed companies, government, local government and some charities that have workplace payroll giving programs. Some points that emerged: •
Charities are NOT satisfying donors with effective or timely communications – 75 per cent for disaster donations, 65 per cent for regular WPG donations.
•
Employee donors want choice of charity through their company WPG program – 67 per cent for disaster appeals, 50 per cent for regular WPG donations.
•
Employees will give more and more often if the company is matching donations – at times of disaster 42 per cent; regular WPG 61 per cent.
•
Within companies providing WPG, there is limited knowledge of giving methods – 65 per cent of respondents did not know they could support disasters through WPG.
This desire for employees to want to be engaged and involved with the company needs to be addressed by many employers – and fundraisers.
22 Fundraising Institute Australia
‘‘
‘‘
T
he first three months of 2011 saw a sad and tragic spate of natural disasters close to Australians: the Queensland Floods, Cyclone Yasi, flooding in northern NSW and in Victoria, the second and more major earthquake that struck Christchurch and took 65 lives, and then the earthquake and devastating tsunami in north-eastern Japan.
Overall, the findings show why people give through WPG programs and it overtakes the long held view that the immediate tax benefits were a prime motivator. While easy tax deductibility is noted (43 per cent) the convenience (66 per cent) and “company matching of employee donations” (61 per cent) are the driving factors.
RESEARCH
For those not familiar with WPG, the employer (via payroll) takes out of the employee’s gross pay packet the donation requested by the employee before calculating tax on the remaining amount. This gives the employee an immediate tax deduction.
Giving, or conversely, in a one off situation. But it is the receiving charities that need to pull up their communications socks! The CAF Disasters, Donors & Giving Research respondents were highly critical of the lack of interest and respect their donations received from charities. There was also concern (85 per cent) of the timely and appropriate distribution of funds – and this may be reflecting issues surrounding the Victorian fires and the Queensland floods/ Yasi Cyclone. The survey showed that respondents believe charities communicate very poorly to WPG donors – post-disaster appeals – 75 per cent, and on regular WPG donations – 65 per cent. In a free choice response one donor stated: “I find it quite disappointing that I don’t even receive a monthly newsletter from the charities I donate to through Workplace Payroll Giving.”
Previous research work carried out by CAF in the United Kingdom has clearly shown that employees want to be “engaged” with their company. They want to have a pride in the company and its product/services and they want the company (boss) to be engaged with them in corporate social responsibility. This international view is supported here by the second highest reason for giving: “My Company matches my donations.” This represents a partnership between the employee and their employer, with the company engaging with the staff member(s) by supporting his/her choice of charity to bring about improved community conditions. This desire for employees to want to be engaged and involved with the company needs to be addressed by many employers – and fundraisers. A key recommendation from the CAF Disasters, Donors & Giving Research is that companies establish a disaster appeal strategy, and improve communications/understanding of the giving opportunities within their organisations. CAF is already working with a range of our WPG donor Companies on this key finding. Within this is the 67 per cent preference by donors that the company allows open choice of donors donating to disasters rather than limiting choice. CAF knows from our experience that when a donor is giving to his/her charity of choice the amount will be more and made more regularly.
‘‘
‘‘
IT’S The receiving charities that need to pull up their communications socks!
Ninety-one per cent of respondents said they had given to disaster appeals in the past two years, but at the same time many were unaware they could contribute either on a regular basis through Workplace Payroll
This is a warning to all charities – especially when other CAF research shows that on average a WPG donor will stay with the preferred charity for eight to 10 years averaging $700 per year – making them a high value donor base that should not be ignored.
Key recommendations from Disasters, Donors & Giving. Companies: •
Establish a disaster appeals strategy.
•
All employees to choose which charities they donate to – it’s their money.
•
Match your employees’ donations showing you support them.
•
Communicate the availability of workplace payroll giving – both for regular and one-off disaster appeal giving.
Charities: •
Communicate appropriately to donors and workplace payroll giving host companies.
•
Work with your corporate partners to deliver key messages.
For a full report of CAF’s Disaster, Donors & Giving Research, please visit www.cafaustralia.org
Don Willesee is the Chief Executive of Charities Aid Foundation (CAF) Australia.
August 2011 23
The Gifts that Go On...
By Ian Fraser FAHP CFRE, MDU TRACK CHAIR
The Gift That Goes On - Bequests / Planned Giving
Just as we plan and improve our crops for a better harvest, so charities should encourage and assist donors to make planned charitable gifts beyond their lifetimes. This MDU track will help delegates understand the motivations and attitudes of planned giving donors, and how to plan calls and evaluate the program.
O
ne thing that sets us as human beings apart from our fellow creatures is the way we consciously control and shape the world around us. We don’t wait for fruit to fall from trees before we eat it. We plant the trees, harvest the fruit, improve the stock to develop better fruit, and develop more productive orchards. Communities, like orchards, must be nurtured. We have to plant seeds and wait for results. We have to prune and shape. And we naturally want to share with others the fruits of our labours. We want to help family and friends, but often we also want to give part of what we have for the benefit of people we have never met, and those less fortunate than ourselves. Charity is as old as recorded history, reflecting the human impulse to give to others. The MDU Bequest and Planned Giving track will explore the ways you can help donors make planned charitable gifts beyond their lifetimes that reflect their interests, their desire to help others, and their commitment to the work of your organisation. While the power of planned giving will be explored in ways beyond just estate gifts, it is also recognised that virtually everyone has a greater capacity to give at death than during life. Even many who could afford to surrender capital during 24 Fundraising Institute Australia
life hesitate to do so because they fear their circumstances might change in the future, or they simply don’t want to lose control. That is why more dollars are still given through bequests than by all other deferred gift instruments combined. For this reason, the MDU Bequest and Planned Giving track places particular emphasis on the bequest development process and the administration of matured estate gifts. It’s fair to suggest that any institution with a long-term future can and should encourage bequests using existing staff and spending only a modest amount of money for marketing materials as bequests are the most cost-effective of all gifts. Why do we like planned giving? It’s where the money is!
The return for each dollar spent encouraging bequests is greater than the return on a dollar spent for any other fundraising activity. Bequests also tend to be larger gifts. They can be expended immediately or invested as an endowment, and they require relatively little stewardship activity. Because bequests hold such potential, and because the bequest is one gift attainable by virtually all charities, whatever their level of sophistication, the MDU Bequest and Planned Giving track will be largely devoted to this subject.
MDU will change your life
By Tracey Finlay EMFIA CFRE MDU Faculty member
Ask and You Shall Receive – the A-Z of Donor Direct
Think you know all there is to know about fundraising? Been to so many conferences you have lost count? Well, you WILL learn something here!!
The Gift that Goes On – Bequests/ Planned Giving track will: •
Explore the importance of wills and other methods of transferring property at death.
•
Offer guidelines for establishing and building a bequest cultivation and marketing program including a review of the “life cycle” of bequests.
•
Consider the related administrative responsibilities.
There will be special attention on the bequest visitation procedure so attendees can develop their skills in asking for estate gifts. We look forward to welcoming you to MDU this year to explore together... the gifts that go on! Ian Fraser is a consultant in gift planning and Executive Director
MDU is unique, and each year the faculty and presenters bring their own experience and share it freely. Professional fundraisers are passionate about what we do and we don’t want to see others fail. Those who attend more than one track always learn something new or discover a new way of doing an existing program. The connections you will make over these five days will remain with you well into your career. The Ask and You Shall Receive Track will provide our delegates with some practical knowledge they can take back to their office and start applying. How many conferences do you attend and keep the notes handy for a while, but never really implement the ideas? Well, MDU is different. After the five days of working with and learning from people all over Australia, USA and Canada you will have tangible ideas and programs to put in place.
‘‘
The connections you will make over these FIVE days will remain with you well into your career.
‘‘
In 2002, I attended my first MDU and to say it changed my life is not overstating it. I knew after hearing from all of these knowledgeable practitioners that fundraising is a respected profession. After coming away with some great ideas to implement in my workplace I set myself a goal: “Attend all MDU sessions and then come back as a presenter.” 2011 is the year that will happen as I join the faculty for the first time.
the annual giving program when they have never done it before?” Both organisations were very different so different approaches were required. What did I do? I asked people I had met at previous MDUs who faced the same issues, and came up with a plan that worked and is now successful.
My fellow faculty members Ann ThompsonHaas and Maurice Henderson are seasoned professionals. All three of us have very different styles and experience, but we have one thing in common – we love fundraising. Being part of something that makes dreams reality is what we do every day. If you work in education, health, community, aged care, disabled or animal welfare you WILL learn something. I promise we will share our knowledge, enthusiasm and passion for fundraising, and I look forward to seeing you there.
As many of us move within organisations as our careers and experience grow, we may find ourselves dealing with an issue that is new to us. At two different organisations I faced the same problem: “How do I start
for the Charitable Gift Funds Canada Foundation .
Tracey Finlay is the Director of Development at Saint Ignatius’ College, Adelaide. August 2011 25
One size doesn’t fit all
By Michelle Campbell MFIA (Hon) FAHP CFRE, MDU TRACK CHAIR Ready, Set, Go! Strategic Marketing for Fundraising
In the relationship-building work that is fundraising, development professionals work with a wide variety of audiences — corporate leaders, private individuals, granting foundations, service clubs, media volunteers. MDU will help you find the best approach.
W
ithin those market audiences, one can segment much further to identify gender, age, socio-economic status, and other differences. These unique factors along with many others are critical for fundraisers to understand because they are factors that have the potential to influence donor behavior and, ultimately, their decision to give.
A better approach
Yet, despite knowing these factors can influence donor motivation, many fundraisers sometimes fail to consider these factors in their communication plans and solicitation strategies. All too often, fundraisers adopt a “spray and pray” approach: Send one message or devise one strategy, and “spray” it widely into the marketplace and “pray” for results. This approach can result in wasted market dollars spent to reach uninterested or unqualified market audiences, and also a failure to reach the right ones with the propensity and capacity to give.
To do the best job they can for their organisations and to maximize fundraising success, development professionals must hone their marketing skills. In today’s competitive fundraising climate, it is essential fundraisers have a strong command of the basic principles of marketing, and how to apply it to development work.
Without fully understanding the qualified market audiences to which your organisation’s work appeals, no marketing effort will ever be fully maximized for fundraising success. Another dangerous assumption that is easy to make is that the entire marketplace is a valid one to position fundraising opportunities for your organisation. Depending on the type of work your organisation provides to the marketplace, this too, can be a faulty approach. While we like to think the good work of our charitable organisation really does appeal to everyone in our community, that isn’t likely to be the case. So, why would we market to “everyone”, without understanding what market audiences offer us the best chance of success?
Understanding who your primary, secondary and tertiary market audiences are, what motivates them to give to your cause, and targeting them with a tested approach that appeals to them is a far better investment of precious resources (including time).
Like philanthropy, marketing is an exchange of value. In order to offer value to a donor, one needs to make a concerted effort to understand what is deemed to be of value to a potential donor or market segment. That involves some research, careful consideration and design of a strategic approach based on the desires and values of that market audience. It’s a diverse world and, for that, fundraisers need a diverse strategy. Taking a strategic approach to your marketing efforts is a wise investment that will have greater short and long-term fundraising success. One size doesn’t fit all. Michelle Campbell is the President and CEO of St. Joseph’s Health Care Foundation, London, Canada.
FIA’s Madison Down Under program offers a one-of-a-kind advanced educational experience focused specifically on strategic marketing for fundraising success. The program leads participants through the advanced concepts of marketing as applied to fundraising. By the program’s conclusion, participants complete the unique design of a marketing plan tailored for their own organisation. Michelle Campbell MFIA (Hon) FAHP CFRE, Track Chair 26 Fundraising Institute Australia
What is in a word? Lots! By Ann Thompson-Haas MFIA (Hon) FAHP CFRE, MDU TRACK CHAIR Ask and You Shall Receive – the A-Z of Donor Direct
Careful copy-writing – choosing the right words – is critical in today’s multichannel world. Here are a few top tips for how to create motivational copy for direct mail campaigns, newsletters, and new media – even for speaking to donors and volunteers one-on-one. Tip #1: Does your copy speak to donor needs rather than your organisation’s needs? “People have needs… not organisations,” goes the classic adage. Show in descriptive phrases how a donor’s gift can help other people, rather than describing what your organisation does to fulfill its mission. Count how many times you use the word “we” and compare the result to how many times you use “you.” If “we” wins, rewrite wherever possible, changing “we” to “you.” For example, while editing a newsletter, we rewrote copy that read: “We are launching a campaign to help build a new state-of-the-art senior centre where we will offer a full range of daily supervised activities and medical screenings for older adults in need in our community.” The rewritten, donor-focused copy read: “When you support our special campaign for a new senior centre, you will help more of your neighbours and friends have access to daily interaction with their peers, nutritious meals, and critical health check-ups.” Tip #2: Do you show the benefits of giving more often than you describe the features of your programs? Show donors the benefits of your services to people, which is more motivational than simply describing a program, piece of equipment, or other funding need. For example, when I was CEO of the Motion Picture and Television Fund Foundation, we toured a movie studio executive to recruit him to the board. We stopped in one room and said: “This is where we helped an animator from your studio get back on the job in record time.” We illuminated the benefits of the program for the person we helped as well as for the prospective board member’s own organisation.
Give us 5 days and we’ll give you a year’s worth of professional knowledge
Friday 26 – Tuesday 30 August 2011 Novotel Barossa Valley Resort, South Australia
www.fia.org.au/MDU
Tip #3: Do you tell a story? Building copy around a story has many benefits. Stories get and keep reader attention. Stories help motivate gifts because donors can relate; they can “see” who their gifts benefit. The sample copy below provides an example of how to use a story to build an ask in a direct mail letter. When Vivianne Swanson woke up at 4.11am on April 6 with chest pain, she figured it was indigestion. But it was actually much more than an upset stomach. You see, she was having a life-threatening heart attack! Not realising how serious her condition was, Vivianne went to her job as an electronics assembler in Kennewick. Feeling worse and worse though, she was considering going back home. Suddenly, the 64-year-old was unable to move from her chair. She also began sweating profusely, with “big drops coming down the side of [her] face”. This allowed our cardiac catheterisation team to prepare for Vivianne so they could begin treatment as soon as possible. And it’s a good thing too. Because just two minutes after being wheeled into our ED, she “coded”. Her heart stopped beating for about 30 seconds. Kadlec cardiologist Iyad Jamali MD was right there to perform CPR and bring her back. Then he rushed her to our Cath Lab… so she’d have the best chance for a successful outcome. It’s with the loyal partnership of our community that Kadlec is able to provide this kind of first-class medical attention to everyone who depends on us here in the Tri-Cities. So today I want to ask you to support our truly life-saving work – by sending a thoughtful gift of $25, $35, $50, $100, or more if you can to the Kadlec Foundation. When you do, we can reach out even further to improve the health of growing numbers of local people through a comprehensive range of medical, surgical and rehabilitation services.
Tip #4: Do you include a credible sense of urgency? Advertisers tell us to “act now” because they know it works. In fundraising, describe why gifts are needed right away. For example, tell how many people need your organisation’s services and what the consequences will be if they don’t get help now. Include deadlines for gifts in direct mail campaigns. Be bold and use phrases like, “Your gift today can help…” or “Please make your gift without delay.”
In a twist on an oft-quoted line from Shakespeare, a virtuoso of our language: “What is in a word?” The answer is – a lot! Well-chosen words can make the difference in our efforts to truly engage our donors and secure gifts. Success begins with taking the donor’s point of view and choosing words wisely, speaking to the donor’s heart as well as to the donor’s mind. For more “top tips” about writing effective copy as well as indepth information about integrated direct response, join us for the Donor Direct Track: Ask and You Shall Receive at MDU. Ann Thompson-Haas is Principal/Senior Consultant at Larkwood Consulting, San Francisco Bay Area and New York. August 2011 27
PROFILE
ORGANISATIONAL MEMBER PROFILE
Mater Foundation: challenging, inspiring, engaging Past FIA chairmen Nigel Harris and LESLEY RAY explain how organisational member - the Mater Foundation – is striving to achieve its vision to “invest in a future of exceptional health care and medical research”.
F
undraising has always been a part of the Mater story, as it has also played a role in the broader ministries of the Sisters of Mercy - owners of the Mater Hospitals. Catherine McAuley, founder of the Sisters of Mercy, was an inspiring leader and a champion of social justice. She was also a generous philanthropist and accomplished fundraiser, setting a tone for Mater today. The story of Mater in Brisbane spans over 100 years. In 1905 a donation of £500 from Mr William Naughton enabled the Sisters to open a Mater Hospital in Brisbane. Three years later, Mother Patrick Potter launched an appeal to the residents of Brisbane to support the building of the first Mater Hospital on the current South Brisbane site. An appeal letter printed in the Brisbane Courier (perhaps a 1908 version of direct marketing) called for public support resulting in over £30,000 being raised.
structure which has grown into an organisation with a $40 million turnover and a staff of 60 (full time equivalents) in 2011.
Over the past 100 years, Mater has utilised many fundraising methods such as appeals, lotteries, major gifts, special events and auxiliaries. In 1989, the Mater Foundation was formed as a dedicated, single focus fundraising organisation to provide a more consolidated fundraising approach for the Mater. From the mid1990s, the foundation began to develop a deliberate and diverse fundraising
integrated fundraising model that has a strong strategic focus, and this has resulted in tenfold revenue growth over the last 15 years.
‘‘
‘‘
Mater today is a complex health care group of seven Brisbane-based hospitals, a medical research institute and a growing outreach program. This complexity creates many, often competing, demands for funding from philanthropic sources. Mater Foundation provides a single point of connection for Mater-related fundraising in the community and philanthropic funding for Mater programs. The Mater Foundation has created an
28 Fundraising Institute Australia
The breadth of health care programs creates a multi-layered approach to market, which demands a very deliberate and well-
managed brand strategy. It also requires the Mater Foundation to generate significant funding, which in turn means a large, varied and integrated range of fundraising programs. Over the past 15 years, the foundation has pursued a strategy intended to build fundraising capacity and capability. This approach has involved creating a solid annual fundraising base, and developing major gift and deferred giving programs. Building on a range of existing programs and developing new initiatives, the foundation has created an integrated fundraising model that has a strong strategic focus, and this has resulted in tenfold revenue growth over the last 15 years. Another important feature of the foundation’s fundraising model is sustainability and capacity building.
PROFILE
Engaging and supporting a capable and committed staff team has been and remains a key success factor in building fundraising capacity and capability. Qualified and experienced leadership across professional disciplines and the development and retention of staff has created stability and consistency across the staff group, all of which has underpinned results that have been achieved. Notwithstanding this, there is a constant focus on renewal and growth of competencies for all staff. Volunteer leadership has also played a significant role in the Mater Foundation’s growth through the contribution of the Board and supporting committees. Board and committee members bring a strong sense of mission and philanthropic focus, and provide invaluable support to the organisation through professional contribution, connection and advocacy. Developing and maintaining relationships with stakeholders is central to all of the Mater Foundation’s work. The Mater enjoys many long-term relationships with volunteers, donors and community
‘‘
supporters, some of An extension of Mater Foundation’s which extend commitment to building relationships over several decades. This is a commitment to collaboration. investment in relationships shapes fundraising results, but even more importantly aims to offer a unique experience for people in their association with the Mater. An extension of the Mater Foundation’s commitment to building relationships is a commitment to collaboration. This is demonstrated in a number of areas including working with community groups and organisations supporting the Mater, other non-profit organisations and within Mater and Mercy networks. The foundation has been involved in many innovative and long-term partnerships that have resulted in significant fundraising outcomes as well as philanthropic advocacy. One of the Mater Foundation’s strategic goals is the inculcation of a culture of philanthropy, both within Mater and also the community. The foundation has a range of programs that are directly intended to position and promote philanthropy. Over the past 15 years there has been an evident shift in understanding of and engagement in philanthropy across Mater, as well as in many long term Mater relationships. The primary business activity of the Mater Foundation is fundraising. As a dedicated fundraising organisation, the foundation is strongly committed to advancing fundraising as a profession. All of the foundation fundraising staff and many fundraising support staff are members of FIA, and in 2011 there are 29 FIA members on staff. The foundation is also an organisational member of FIA and two of the executive leadership team are former FIA chairmen, FIA fellows and CFREs.
‘‘
Key elements of this approach include a large scale lottery program and annual fund donor program, both of which provide consistent and dependable annual income. This base enables key funding commitments to Mater partners, in particular research funding goals, to be met as well as providing a platform for longer term development of new fundraising programs.
House for Life fundraising campaign in support of “Mater Little Miracles”
The foundation is a strong supporter of, and contributor to, professional development and continuing education within and beyond fundraising. In addition to FIA programs, foundation staff has a strong association with the Australian Centre for Philanthropy and Nonprofit Studies, CFRE International and many other professional and industry bodies. This has been a challenging year for the Mater Foundation as it has been for many people and organisations in the community. While the foundation remains confident about the medium to long-term philanthropic market, there is a continued focus on market connection and understanding; efficacy of fundraising programs; staff and volunteer development; and organisational systems and processes. The aim is to create an even stronger and more robust organisation for the future which reflects the vital role the foundation plays in supporting Mater healthcare and research initiatives.
Nigel Harris MBA FFIA CFRE is the Executive Director of the Mater Foundation. LESLEY RAY FFIA CFRE is the Fundraising Director of the Mater Foundation. August 2011 29
GOVERNANCE
WHOSE IMAGE?
Naomi Steer discusses how protecting beneficiaries’ privacy and dignity in a digitally connected world raises ethical concerns for today’s fundraisers. t seems to me that, as fundraisers, we will need to pay more attention to this area as we grapple with the need to raise funds (and share stories and images) against growing concerns about protection of identity privacy and dignity in a digitally connected world.
I
The issue is a complex one. The photographic medium is a powerful tool of change. Who can forget the shocking 70s image of the Vietnamese girl running naked down the road fleeing her village burned to a cinder by a napalm attack? It was a turning point in public opinion on the war.
I knew something was different, but at first I couldn’t put my finger on it. As I flipped through my monthly copy of the Oxford University Forced Migration Review – an excellent journal dealing with issues around refugees and other situations of forced migration, I noticed the accompanying photos. All the faces of refugee appearing in photos in the journal had been blurred. Why?
The photo is one of the most reproduced of the Vietnam War. In one Google search you can be directed to countless sites displaying this photo. What does the little girl, now a woman, think of this? Also, in one Google click we find out her name is Kim Phuc. As a result of the photo, Kim was re-settled in Canada where she lives today running her own charity for victims of war the photo displayed proudly on her own website.
‘‘
On the other hand, the The answer was explained subject of one of the most on the back cover. After My experience is the majority of compelling and influential considerable debate, the people do agree to have their photo photos to come out of editors of the journal the Depression era in the believed they could not be taken. They want to have their voices US – Dorothea’s Lange’s confident people appearing heard and to become visible to the “Migrant Mother” – felt in the photos had given world outside refugee camps. hard done by when the informed consent in the photo became famous full meaning of the term. worldwide, but Florence So they had decided to Thompson – the woman in the photo – remained destitute. pixellate identifying features from this edition onwards. This Florence apparently felt humiliated by the representation of her was despite the sources of the photographs confirming, in most living in abject poverty – although this was her reality. cases, permission had been given.
The journal raised an important issue, not only for itself and for other organisations like my own seeking to raise awareness around the issue of refugees, but for all of us who use images of the beneficiaries of our work in fundraising and general promotions. 30 Fundraising Institute Australia
‘‘
For the journal the key point was whether the subject of the photos would have understood their image might be seen all around the world, and would live on in the virtual world for many years. In other words, what we might have agreed to now may not be how we want to be represented years later, in mediums we perhaps did not envisage.
Today in Australia, charities rely on photos of their beneficiaries to convey their messages and requests for support. In Australia for UNHCR communications, we rely heavily on photographs to communicate to our donors the reality of refugee situations and to engage our donors in supporting our work, and thereby positively benefiting the refugees we serve. When I undertake communications work in the field, I always explain to my subjects who I am and how the photos will be used. I carry examples of our work and I always ask permission. Sometimes people do say they don’t want their photo taken.
GOVERNANCE
This is always respected. Sometimes they don’t want their face to be identified. But my experience is the majority of people do agree to have their photo taken. They want to have their voices heard and to become visible to the world outside refugee camps.
It goes on further to require that: •
Images and messages of women and men, boys and girls will be presented in a dignified, respectful manner, portraying them as equal partners in the development process.
If I return to the same camp, I take copies of the past photos I have taken to distribute – a suggestion from one of the professional photographers we work regularly with. A gesture that is always much appreciated.
•
Images and messages will honestly portray the diversity of local people including age, disability and other marginalised groups.
•
Images and messages will honestly convey the context and complexity of the situations in which local people live.
•
Key figures in images will be informed of what the image is being used for and, if possible, their permission obtained.
•
Origins of any images used will be known and any necessary permissions, including copyright releases, be held.
•
Care will be taken to ensure the identification of or use of images of local people will not endanger the people they portray.
I recently asked one of my staff, a former refugee who grew up in camps in Cambodia what she thought about this issue. Now in her late 20s, she revealed she had in fact been searching online only recently for photos of herself and her family in the camp. She told me foreign photographers had come many times to take photos, and that she now hoped to find some photos of herself and her family. She saw it clearly as a way to recover and reflect on her experience and identity. It seems to me that, as fundraisers, we will need to pay more attention to this area as we grapple with the need to raise funds (and share stories and images) against growing concerns about protection of identity, privacy and dignity in a digitally connected world.
‘‘
The key point was whether the subject of the photos would have understood their image might be seen all around the world, and would live on in the virtual world for many years.
Article 8 provides that promotional material should not include images that are “derogatory of a person, group of people or an organisation, discriminatory, pornographic or unduly violent”. The recently revised ACFID Code of Conduct goes significantly further with a whole section on public engagement. Article C.1.3 on the portrayal of local people provides that ACFID signatory organisations ensure the use of images and messages portraying women and men, and boys and girls in their communications respects the dignity, values, history, religion and culture of the people portrayed.
‘‘
How does the FIA’s current Code of Conduct guide us on this? Article 5 of the code refers, in general terms, to an obligation on fundraisers to not “threaten the dignity and privacy of a beneficiary”, and this includes “not depicting a beneficiary’s image or identity in promotional materials without that beneficiary’s written permission”.
I think these principles are an appropriate balance between our need to engage the public in our work and the need to respect the rights of our beneficiaries. I don’t plan to start pixellating photos as a general rule, but the current discussion has made me much more conscious about our usage of photos in our donor communications, as well as always putting at the forefront the interests of the refugees we serve.
Naomi Steer MFIA is the founding National Director of Australia for UNHCR, the national association of the United Nations Refugee Agency. Naomi has significant experience in international relations, human rights, industrial relations and communications, and is a member of FIA’s Ethics Committee, a Director of Asset Super and on the Advisory Committee to the Arts Facility of UNSW.
Photo: Jacky Ghossein/ Fairfax Photos
August 2011 31
GOVERNANCE
Navigating doorknock and street collection appeals in Australia Here is the first in a series by legal expert Linda Lavarch exploring the maze of Australia’s fundraising regulations to reach a better understanding of where we are today.
R
egulation of charitable street collections in Australia originated from the English Metropolitan Streets Act 1903. This Act was the earliest legislation covering street collections. It arose from public concerns expressed in the late 1890s about charity street collectors, in particular, the growth in the use of children to collect for charities. This early regulation was limited, but established a permit system and restricted participation of children. One regulation curiously stated that “no boxes at the end of poles shall be used by any collector”. This was put in place, no doubt, to overcome concern over ingenious collectors, at the time, standing on the side of a carriageway seeking donations from passengers on horse drawn trams and coaches. Today a not dissimilar regulation is still in force in Western Australia. In Australia, states and territories are responsible for regulating fundraising. All jurisdictions (except the Northern Territory) currently have legislation in place. Legislation requires either registration or a type of licence to legally undertake street collections and doorknock appeals but the rules do differ across Australia. Navigating doorknock appeals and street collection regulation requires an appreciation that state/territory fundraising laws across Australia are different and can be quite diverse. It can never be assumed that the way the law works in one state/territory will be the same in another. This article does not seek to give legal advice on fundraising laws and should not be relied upon as such. FIA members operating nationally will know that some state/ territory differences may be subtle and appear insignificant, but they can have a big impact when conducting a national appeal. Accordingly, it is always wise to check with the state or territory regulator for full details of local requirements
32 Fundraising Institute Australia
to conduct a doorknock or street collections appeal. The requirements cover: identification of collectors; disclosure to potential donors; “collecting etiquette”; participation of children; collection times; and, recording and banking of donations/collections. Broadly speaking, a “collection” means asking for donations, or selling merchandise, to raise funds for a cause. In Queensland, it also includes selling raffle tickets or giving out invitations to an event (note: the new Australian Consumer Laws may apply to selling raffle tickets and goods in these circumstances. For more detail refer to the article by Louise Steer “New Australian Consumer Law: a plain English explanation” in the June 2011 edition of Advancing Fundraising). ID badges
All states (except South Australia) and the ACT require collectors to wear an ID badge with their name and/or an ID number and the name of the organisation they are collecting for. The yet to be enacted SA Code of Practice will bring the state into line with other jurisdictions by mandating the wearing of an ID badge. In the meantime disclosure is only required orally if no ID is worn. Queensland and Victoria require more than the wearing of an ID badge. Queensland law requires the return of the ID when the collection is finished; the promoter must ensure IDs are in safe custody when no longer used, and keep a record of who the ID was issued to. Organisers in Victoria must also keep a record of issue. Victoria also requires that ID badge lettering contain letters or numbers with a height of not less than 4 millimetres. If the information is handwritten it must be in capital letters for easy reading.
GOVERNANCE
Participation of children
All jurisdictions (except Victoria) regulate when and in what circumstances children can participate in a collection. NSW and the ACT impose very strict conditions, but allow participation at an earlier age under direct parental supervision (NSW: eight years of age; ACT: six years of age). Queensland’s minimum age requirement is 15 years unless there is parental consent and the child is accompanied by an adult. In Tasmania children under the age of 12 years may only collect money if they are under the immediate control of an adult. Children between 12 and 15 years may only collect money under the supervision of an adult. Persons 16 years of age or over may solicit for donations without supervision. In WA a permit holder must not allow a person who is under 16 to be a collector unless authorised by the Minister to do so. Paid collectors
cannot intimidate someone into buying or donating. The use of a toy gun or “hijack/stand-and-deliver” approaches are forbidden. Victoria requires street collectors to be supervised by the licence holder. In WA, the rules are voluntary only, and ask that fundraising is conducted in a ‘friendly manner’, without aggression or pressure tactics. Most jurisdictions also specifically limit the times collectors can visit residential properties. The most notable is Tasmania, which regulates times around sunset, rather than an hour of the day.
In the ACT, SA and Victoria, the public must be informed if a collector is paid. In Victoria and the ACT this must be displayed on the ID badge. Failing to do so carries the maximum fine in Victoria. In SA, if not specified on the ID, the collector must tell a potential donor. NSW and Queensland do not require disclosure of paid status in a street or doorknock collection. In WA, special permission is required to pay street collectors otherwise it is prohibited.
Record keeping and banking
Disclosing where the funds are going
If using a collection box, it must be labelled with the name of the licence holder, and in NSW, Victoria, Queensland and WA, must be securely constructed and sealed. Emptying the box should be supervised and controlled by the licence holder in NSW, Queensland and Victoria. If following the voluntary WA Code, two people must be present while unreceipted money is handled. Tasmania’s fundraising law has no specific rules about banking collected funds, receipts or collection boxes.
Broadly speaking, governments want you to tell potential donors what the money will be used for. Disclosure is different in every state/territory: •
Tasmania – name of the benefiting charity; what the funds will be used for.
•
ACT – purpose for the fundraising; what the funds will be used for; the business phone number of the licence holder.
•
Victoria – nothing directly – but the estimated proportion of funds which beneficiaries will receive and any licence conditions should be on the public register.
•
SA – name of the licence holder; details of the government website where information about the charity or licence holder is found.
•
NSW, WA, Queensland – no particular requirements.
“Collecting etiquette”
One of the objects of fundraising regulation is to minimise “public nuisance”. Hence there are rules and regulations about behaviour while undertaking street collections and doorknock appeals.
NSW, Queensland and ACT require receipts to be given to every donor unless a sealed collection box is used. The proposed SA Code of Practice will also require the issuing of receipts. Victorian, WA and Tasmanian collectors need only issue a receipt if it is a licence condition. However, the WA voluntary Code of Conduct does recommend issuing receipts.
Elsewhere, required banking procedures are quite detailed, and tend to carry high penalties – up to several thousand dollars – if not obeyed. Full details of fundraising requirements for each State and the ACT can be found on the relevant government website.
Linda Lavarch LLB Grad Dip Leg Prac (QIT) is a Research Fellow at the Australian Centre for Philanthropy and Nonprofit Studies, Queensland University of Technology
In Queensland, both doorknock and street collectors must not “unreasonably annoy” any person approached. They must also leave a residence or place of business if asked, and August 2011 33
GOVERNANCE
FIA’s social media standard
a world first Australia leads the world in social media engagement and, fittingly, FIA has now produced the first social media guidelines for fundraisers. On behalf of the Codes Task Force, Louise Steer introduces the new standard. FIA believes the new Standard of Social Media Fundraising Practice is a world first, setting a new standard in best practice for fundraising professionals. With its creation driven by the FIA’s Codes Task Force, the new standard meets the needs of FIA members by setting out clear and practical guidelines for dealing with social media. Social media – Twitter, Facebook, MySpace, LinkedIn and many other sites – has changed the way people like to communicate with each other, by providing immediacy and connections with anyone almost anywhere on the planet. No longer the province of teenagers sneaking messages during school time, with the advent of smartphones and handheld tablet computers, it is now a serious business tool. Australia leads the world in social media engagement, with the highest global average for time spent per month engaging with social media, averaging over seven hours per month. In contrast to many countries, Australians look to communities of interest, such as parenting or sports sites, as a key channel for social media discussion. Some 62 per cent of Australian internet users visited a message board or forum in 2009. LinkedIn has seen one of the fastest growth trends amongst social media sites in Australia, with unique audience numbers increasing by 99 per cent from July 2009 to May 2010 (Nielsen Asia Pacific Social Media Report which described in detail the social media and word of mouth or WOM trends across the APAC region). This high take-up rate makes it crucial for fundraisers to meet the challenge of this exciting new medium by exploring its possibilities. To assist fundraisers, the new standard takes a different approach to the other FIA standards for more traditional media, which cover both ethical and best practice guidelines. As there are no settled methods for dealing with social media, the Codes Task Force preferred to require that fundraisers engage in social media by bearing these three principles in mind: transparency, accountability and respect.
Three guiding principles
Transparency ensures that information on a social media site is truthful and accurate and, if it is not, is removed quickly. Beneficiaries must not be identified without their consent, and the charity relying on the social media is properly identified with contact details made available. Accountability covers the management of donations. The site must indicate how donations are to be collected, how funds will be protected (general information only is required), how donations will be receipted, and how the donors’ identities will be protected from publication. Respect covers the way in which the charity, the event, donors and beneficiaries are to be treated. Comments which are likely to be misleading or deceptive or damaging in any way to the reputation of any of these groups will be promptly removed. Spam will be removed immediately from the site. Fundraisers and charities should take care not to spam their donors, beneficiaries or other social media sites (note, they are not exempt from the provisions of the Spam Act 2003 (Commonwealth)). Images of beneficiaries should comply with the requirements of the FIA Standard of Ethics and Professional Conduct that images of beneficiaries should not be sensational, but respectful. Charities and professional fundraisers should appoint a person in their organisation to review and moderate their site to ensure compliance with this standard. References Nielsen Asia Pacific Social Media Report, June 2010, http://www.asiadigitalmap.com/2010/06/asiapacific-socialmedia-report/)
Louise Steer LLM LLB BA(Hons) is the FIA’s Consultant, Policy and Standards, and Principal at Steer Martin Lawyers.
The FIA acknowledges the ongoing hard work and dedication of the Codes Task Force in driving the development of the Principles and Standards of Fundraising Practice: • Jeremy Maxwell FFIA CFRE – Chair • Leo Orland FFIA CFRE • Dr Wendy Scaife MFIA FPRIA • Laurence Joseph FFIA CFRE • Chris McMillan MFIA 34 Fundraising Institute Australia
INTERNATIONAL PERSPECTIVE
It all started with
Maggie Thatcher… Canadian direct response guru Steve Thomas challenges Australian fundraisers with an international perspective on planned giving.
P
rior to Mrs Thatcher’s governments, the UK government took care of most of its citizen’s needs. Charities had smaller mandates and they were pretty staid. The Chair, Lord So-and-So, would organise an annual dinner for wealthy patrons and much of the budget would be raised. Then suddenly, government services were slashed and charities took on greater responsibilities. They needed cash, fast. They looked, by and large, not to American models, but to their own British direct marketing industry. The consequence was a rapid growth in direct response fundraising. The UK still leads the world in this science, and direct marketing firms there have both for-profit and not-for-profit clients, unlike North America where agencies specialise in either. I learned all this attending the International Fund Raising Congress in the Netherlands over the years. And in the early ‘90s I learned about legacy marketing. The Americans call it planned giving. It includes legacies, but it also includes many other “instruments” such as annuities, life insurance plans and various tax avoidance schemes. These weren’t available to the Brits, so they concentrated on, and became experts in, legacy marketing. Traditionally planned giving was paired with major giving in American fundraising. But only a small fraction of your donor file will ever be able to give you a major gift, however defined. A much greater percentage will be able to make a legacy gift. Consider the Widow Jones. She lives on a fixed income and can only afford to give you $50 once a year. But she lives in a fully paid up home worth hundreds of thousands of dollars. And her cottage (what we call a vacation property) is also worth six figures.
Add it all up and she is going to have a healthy estate. She’ll give most of it to her children, but there will be room for a legacy of say, $50,000, to her favourite charity. A major gift! In Canada, well over 90 per cent of planned gifts are legacies, so we are now concentrating on legacy marketing too. In my experience targeted direct mail is more effective than telemarketing, but there are those here that will disagree. A good campaign will introduce the possibility of a legacy gift, deal with objections (what about my kids) and create a solid lead for a staff fundraiser to follow up. Legacies are too big and too important to be captured by direct marketing alone. The personal touch is needed. Do you have someone in your shop in charge of legacies? If so, you shouldn’t see them around very often. The good ones are out creating and following leads. They’re delivering receipts, having tea with seniors and in every way cultivating their prospects. We have the phenomenon here of legacy or planned giving officers spending a couple of years creating “a program” and then moving on to a new charity. They never get out of the office. But materials are far less important than human contact. You aren’t going to get legacies without meeting people. So that’s my take on planned giving/legacy marketing. Does the Australian situation mirror the Canadian one? I’ll bet it does. And it all started with Maggie Thatcher! Steve Thomas CFRE founded Stephen Thomas Associates (now Stephen Thomas Limited) in 1980, Canada’s first direct response fundraising agency working exclusively in the NFP sector.
August 2011 35
FUNDRAISING PRACTICE
Your online fundraising health check
The start of the financial year is a good time to take stock and review your current online fundraising strategy. Do you have an online pulse or have you missed a beat? KRISTOFER ROGERS provides a checklist to get better results online.
O
nline fundraising has the potential to grow your fundraising faster than any other stream through peer-to-peer communications among your supporters. But too many organisations fail to take a few simple steps once they’ve registered with a third party online fundraising provider to ensure a successful outcome. This article outlines some important things your organisation can do right now so you’re not left behind. Clarity check – make it easy
It’s now a standard feature on most websites for visitors to be able to make an online donation, but very few sites include a clear opportunity for supporters to fundraise online. Making a donation is great, but many of your supporters will want to do more than just give once. Fundraising is an opportunity for them to feel more engaged and for you as an organisation to achieve more too. Perform your own health check and see how easy it is for you to start fundraising from your own homepage. As a rule of thumb, your main drivers should only ever be one click away. To get more people fundraising, include a fundraising link on your homepage and in other relevant sections of your website. Chris Hughes, Facebook co-founder and Obama online campaign mastermind, 36 Fundraising Institute Australia
says “technology is at its most powerful when it enables people to do something they already want to do”. By including a clear link to your online fundraising pages, you are empowering them to make a difference. After all, isn’t that why a lot of people visit your website in the first place? Creativity check – be inspirational!
When it comes to something new, people require guidance and inspiration. How do you inspire your community fundraisers? This can be as easy as providing examples and ideas on getting started. Give them some options, such as “In Celebration” or “In Memory” so they can identify with one. The best way to inspire potential supporters is to provide case studies on previous fundraisers. When these fundraisers reach important milestones, such as hitting their fundraising targets, get in touch and ask them some questions. Most would be happy to help out because it also provides recognition for what they have done for you. These people will become your fundraising ambassadors. Cancer Council’s “Do Your Thing” is a great example of providing good ideas and real case studies (www.doyourthing.com.au). Communication check – do you interact?
Just because they came in off the radar doesn’t mean they shouldn’t be on yours! Do you have a communication strategy
FUNDRAISING PRACTICE
in place for your online fundraisers? A little bit of groundwork can go a long way towards helping your fundraisers reach their targets. Prepare emails and messages that can be automatically sent when they reach certain milestone (like the halfway mark, or a week before an event for example). Ultimately, where possible, combine online communications with a good old phone call to make the fundraiser feel valued. It encourages them to excel. For larger, mass participation events such as the Blackmores Sydney Running Festival, organisations can create teams that individuals can then join. This feeling of involvement proves to be a powerful fundraising tool and enables you to more effectively interact with your fundraisers. Reality check - are you being antisocial?
With more then 10 million active Facebook users in Australia, organisations can no longer afford to be antisocial. Increasingly, people communicate with each other through social networks, so it is vitally important for organisations to communicate in a similar way.
supporters will comment on or like. By ‘liking’ an update, they automatically share our fan page with their friends. These friends often become fans too, because they share common interests.” Check out what others are doing
As with any sector, there are those who do things well and those who do things not so well. It’s important to check out what others are doing to learn best practice and perhaps some examples of what not to do! A great example of best practice is Cure Cancer Foundation Australia (www. curecancer.org.au). The bottom line is to ensure you are making the most of every opportunity, and making it easy for your supporters to do more than simply donate. Test-drive your own website right now and explore ways in which you may improve the user experience and make online fundraising more visible.
A common assumption in the not-for-profit sector is there are high resource requirements in building a successful social media presence, but that is not always the case. The Animal Welfare League of South Australia now has more than 15,000 fans on Facebook. According to Michael Pratt, Fundraising and Events Coordinator, supporters will respond to points of interest. He says: “We post relevant content and updates that we know
Keep your online fundraising in check OFF-LINE
ON-LINE
Include fundraising links on your website Inspire fundraisers with case studies and examples Interact with fundraisers and communicate regularly Don’t be anti-social – use Facebook & Twitter
Kristofer Rogers is General Manager of GoFundraise.com.au. He is a marketing and online fundraising professional who regularly contributes to national and industry press, and is a trainer/assessor, including teaching the FIA’s Skills courses.
August 2011 37
FUNDRAISING PRACTICE
A boss’s guide to
ruthless exploitation Brett de Hoedt crosses to the dark side… to throw light on how to make better use of your team.
L
et me speak to the dark, evil boss lurking deep within you. Wouldn’t you treasure an employee who happily works around the clock, around the year, without need of breaks, leave, praise, pay or a drunken Christmas party? Good news – you’ve already got one on the team. Your website. The worst feedback your website can receive is that it is a “brochure on the internet”. Brochures do nothing more than deliver basic information, while a great website acts as a virtual employee via the features and functionalities it offers visitors. More features mean that your site becomes a more effective marketing and fundraising tool and provides reasons for visitors to return. No return equals no relationship. Despite the lack of labour law protections, we often ask less of our websites than we do of our humans. Your website’s position description (you did write one didn’t you?) could incorporate a grab bag of roles. Let’s look at some of the features your website should have and the roles your website can play. Campaigner: Why shouldn’t your website allow people to support a campaign you’re running from the comfort of their homes? Let people join a virtual protest march or send a politician a protest letter via your site. Too political? How about providing the ability for visitors to thank your team or sponsors for their work or support via your site? It might mean a lot to them. Matchmaker: Let prospective volunteers, donors, employees and participants get to know you better by embedding short video testimonials of people who were once just like them. Sure, your CEO could do all the talking, but we prefer prospective staff, donors and volunteers to “meet” current staff; donors and volunteers. Think of video as a way to create an artificial word-of-mouth experience. Researcher: Conducts simple polls using technology built into your website or via a third party website such as Survey Monkey. Gain some new emails, uncover your most engaged visitors and – who knows – you might even learn something. No clipboards required. 38 Fundraising Institute Australia
Communications officer: Every website should work alongside an e-newsletter. There’s no cheaper, more efficient, controllable, more measureable way to talk to people. Ambassador: Use video or a slideshow of still images with a voiceover to give first time visitors a 120-second tour. Social media networker: Give visitors the option of spreading your content via their social media networks at the click of a button. This is increasingly important for gaining better search engine results. We use a silly named product for this – Sexy Bookmarks. Membership and manager: Give visitors the chance to investigate, take out and pay for membership online. “Print off and fax back” is last millennium. Helpdesk: Consider adding an online chat service as an alternative to taking enquiries by email or telephone. It may seem silly to the pre-text generations, but some people prefer the immediacy of instant messaging without the intimacy of person-to-person contact. An expanded, revamped, exhaustive FAQ section can also reduce unnecessary calls and emails. Fundraiser: Enough said. Salesperson: Whatever you have to “sell” – print resources, places in your programs, fundraising merchandise, seats to your next fundraising dinner – sell it entirely online in your website’s store. That means the browsing, booking, paying and shipping is handled via your website. Administrator: Why take bookings on the phone or even email when people can do this themselves at their (and your) convenience? Receptionist: Email forms should enable anyone to contact specific departments within your organisation.
FUNDRAISING PRACTICE
Performance appraisal
That’s fine for other people…
“Unhuman” employees need guidance and supervision too. As boss, appraise your website’s performance on a monthly, if not weekly, basis. Google Analytics is a free, simple and user-friendly way to monitor the performance of your website. The key statistics to concern yourself with are the number of visitors, the number of repeat visitors, the percentage of people who came to your website via search engines as compared to directly, the search terms entered, the amount of time people spend on your website and the bounce rate.
You’re don’t necessarily have to build a new website to incorporate these functions. If you use a well-supported, widelyused content management system such as WordPress (which we use for our own site) adding these functions is simple. While some minor “nerdery” is required to install new features or “plugins”, it is minimal and, in our experience, worthwhile.
More crucial to monitor is the path visitors take through your site. Do they usually visit via the homepage? Are they heading directly to your donation page? Better sites have a greater mix of entry pages and the best sites cunningly funnel visitors to the donation page. Is one particular page over-represented as the “exit page”? Maybe it’s failing to deliver the information you want. You should also monitor your rankings in Google for search terms that are important to you. Pick 10 search terms and monitor them monthly. You also want to monitor the growth of your e-newsletter subscriptions, Twitter and Facebook fanclub. The good news is “unhuman” appraisals do not lead to demands for more flexible working arrangements nor require motivational speeches on your part. Plus there’s no awkward discussion of personal hygiene.
If this all seems too hard; consider this: investing the time and money to improve the utility of your website is no different to investing in your humans – although you get a better return. Humans tend to forget or ignore training, they leave your employ and tend to talk, more than walk. Save your heartfelt one-on-ones for your human staff. Meanwhile get ruthlessly exploitative with your website – your future employee of the month, every month.
Brett de Hoedt is Mayor of Hootville Communications at www.hootville.com. Brett delivers communications training, develops websites and MCs events.
Here’s an other way the FIA as sists Fund raisers
MENTOREES MENTORS Develop your coaching expertise and people skills as you help influence the future of Australian fundraising!
Starting out, changing department, moving into management, heading onto a board? All great times to have a mentor on hand to help with the transition!
The FIA has a FREE mentoring program for its members. Can’t beat that price! For more information… http://www.fia.org.au/pages/mentoring-program.html
August 2011 39
RESEARCH REVIEW
What’s New in Research? Dr Kym Madden reviews new studies to give you the take-out findings. New US fundraising figures
Clean and fresh a cue for giving
In February, 1845 NFPs in the US were surveyed on the magnitude and direction of change in contributions received in 2010, compared to 2009.
Ever thought about the sensory impact of your room at a fundraising event? Given that smells have been shown to trigger memories or associations, the possible influence of olfactory data on the intention to donate is intriguing. This study tested the effects on giving when a lemon scent was used to freshen the air, with surprising results.
Findings hold few major surprises, for example, NFPs using more ways to raise funds, on average, raised more. However, three-quarters now raise funds online, with raised amounts increasing by 58 per cent. Conclusion: 43 per cent of NFPs report increased giving in 2010 and, overall, two-thirds had rising or stable contributions compared to 2009. While most held costs steady, those that spent more were more likely to see increases in funds raised. The expectation is for giving to increase in 2011, with staff and expenditures to remain at 2010 levels. However, survey findings ring a warning bell against underinvestment: there is a relationship between failing to invest in fundraising and failing to meet goals. Specifically, investment is not able to guarantee increased income, but cutting investment is associated with not meeting goals. Where to find it: The 2010 Fundraising Survey by the Nonprofit Research Collaborative (which includes Indiana’s Center on Philanthropy and the Urban Institute) can be downloaded free from the Urban Institute website. Personal nostalgia and giving
Fundraisers know that fond memories of family, friends, pets, places or experiences can drive charitable giving but, until this study, little formal research has been available on why this is or how it works. Based on 13 focus groups and two surveys, the authors find that nostalgia motivates support for a charity by offering “utility” around these memories. For example, giving may provide emotional comfort, or practically benefit family members, friends or others seen as similar to family or friends. As the felt benefits attached to giving to a particular cause increase, so does inclination to donate. The authors also find that nostalgia arises not only from a donor’s own life experience, but shared contact with a non-profit. Conclusion: Giving is a means for potential donors to reconnect with their past. Segmenting donors by life stage and associated factors – such as times of loss or more positive times such as family togetherness – is recommended. NFPs are also urged to offer experiences that trigger nostalgia. Where to find it: “How personal nostalgia influences giving to charity” by Altaf Merchant, John Ford and Gregory Rose, Journal of Business Research (2011) 64. 40 Fundraising Institute Australia
Conclusion: When individuals participated in a variety of trustrelated “games”, those in a room with windows freshly cleaned with lemon-scented Windex showed more trust than those in non-scented rooms (also with clean windows!). Others were tested on their desire to donate and to volunteer to causes. Stripping out the effects of mood and personality, findings endorsed the positive effects of the lightly scented room. Thus, fresh smells such as lemon appear to stimulate trust and willingness to give. Note: the scent was subtle and not remarked upon by participants! Where to find it: “The Smell of Virtue : Clean Scents Promote Reciprocity and Charity” by Katie Liljenquist, Chen-Bo Zhong and Adam D. Galinsky Psychological Science 2010
Ethics of Breaking Donor Stipulations
This study considers the issues involved in accepting restricted gifts, and dilemmas arising from breaking away from donor requests, using fundraising for a museum as the context. The author finds that reasons for doing so must be considered carefully, and decisions made on a case-by-case basis. Conclusion: NFP mission is the key. If the requirement impedes fulfilment of the mission, then the ethical thing is to break the agreement. If not, then to do so weakens NFP reputation affecting fundraising efforts. An exception is if the donor’s request goes against public trust. Trustees and management must act legally and ethically for the good of the public, and decisions must be made at these levels. Even with good reasons, breaking a donor request can generate negative publicity, which can harm the NFP. Where to find it: Shattered Promises: the ethics of breaking donor restrictions by M. R. Campbell, MA thesis, American University 2011 Washington DC
Kym Madden PhD MA (Hons) is an independent researcher specialising in donor and alumni perspectives. Send your thoughts to kmadden@customcom.com.au.
STATE a nd TERRITORY N EW S FIA ACT Putting strategy into fundraising We have all heard the saying: “If you fail to plan, you plan to fail.” The message there is to be proactive about your future. Know where you are going and how you are going to get there. For fundraisers this is so important because it is too easy to get caught up with the small details, and get lost in inward and short-term thinking. Strategic planning will help you solve major issues at a macro level and, in doing this, communicate to everyone what is most important. So, what to do next? Well, the FIA ACT committee is very excited to have Doug Dillon, Senior Partner, Jerold Panas, Linzy & Partners, USA coming to speak to us at our next professional development luncheon on August 23 from 11am-1.30pm. Doug has agreed to talk to us on strategic planning for fundraisers, and with such an impressive background of working as a fundraising consultant for multiple organisations throughout the United States, Canada and Australia, he certainly knows all about planning. Doug is on his way to Madison Down Under where he is track chair for major gift and capital fundraising. It is a real treat that he is able to drop in to Australia’s capital city and share his knowledge and expertise.
“You will be an individual with: integrity, a positive outlook, appropriate levels of energy, a resourceful nature and exceptional interpersonal skills. You will need to be people orientated with the ability to work at all levels of society and with a variety of personalities. You will be more of a leader than a manager with the ability to motivate those around you to achieve extraordinary outcomes. Finally you will be willing to assume a ‘behind-the-scenes-role’ in relation to volunteers and donors who will ‘own’ and ‘lead’ this campaign.” We are the senior and the junior, and everything in between! It is frequently commented that fundraisers undergo enormously rapid turnover. So how can we sustain our enthusiasm and avoid burnout? Undertake: 1.
Professional development.
2.
Maintain strong relationships with your peers through mentoring and networking.
You can do this through ongoing education and attendance at FIA events. It is an investment in your own and your staff’s resilience in these roles, and ultimately ensures the potential of your organisation is fulfilled. FIA NSW has some great offerings for the remainder of the year. Come and join us! •
Judy Ford EMFIA CFRE FIA ACT President •
FIA NSW A fundraiser’s resilience? Sometimes when I read job ads for fundraisers I wonder if we are asking for too much? Is it possible for one person to have all the traits, skills and personality that we require, as this position description below demands?
•
Wednesday 14 September: Masterclass, 12 noon- 3.30pm: Two outstanding speakers from education with wisdom for us all: Jennifer Bott from UNSW and Marilyn Rickard from St Catherine’s, Waverley. Wednesday 26 & Thursday 27 October: Fundraising Fundamentals (Skills 1) followed by newcomers networking drinks on Thursday 27. Wednesday 26 & Thursday 27 October The Next Level (Skills 2) running concurrently.
RESEARCH SUPPORTED BY
FIA Queensland
Inspire and challenge FIA Queensland Executive has been very busy over the past few months. Since taking on the role of president, I can say we have an excellent team of dedicated professionals who want to deliver great professional development opportunities and an International Conference to its member over the coming year. Next year’s FIA International Conference will be held on the Gold Coast and, with a theme of “Dare to be Different”, our plan is to deliver a conference that will not only inspire, but also challenge all in their fundraising. Conference Committee Chair Meredith Campbell is currently reviewing our speaker submission with the committee and, on first review, we have some great speakers on our books. Confirmed international speakers this year are Tony Elischer from Think Consulting Solutions and Kay Sprinkle Grace, a San Francisco-based organisational consultant who provides workshops and consultation to local, regional, national and international organisations in the not-for-profit world. In addition, we have a full professional development program for the rest of the year which includes sessions on donor acquisition, events and ethics, as well as our immensely popular joint event with the Australian Centre for Philanthropy and Nonprofit Studies in November. We do appreciate your feedback and hope to write to all our members to ask you what PDs you would like us to feature in 2012. Martin Carolan MFIA FIA Queensland President
Alicia Watson EMFIA CFRE CFRM FIA NSW President
FIA Queensland is proudly supported by:
August 2011 41
STATE a nd TERRITORY N EW S
SUPPORTED BY
FIA VICTORIA
FIA TASMANIA
FIA WA
Have your say!
From philanthropy to sponsorship
A belated Happy New Year!
There was much to be learnt from a National Heart Foundation commercial sponsorship strategy presented by Lisa Herden, Heart Foundation National Commercial Partnerships Manager at a recent FIA PD session.
Hard to believe, but 2011 is more than half way over and we are already well into the new financial year. For fundraisers in WA, the second half of the year holds some great professional development opportunities.
Lisa explored the relationship paradigm adopted to find corporate sponsors for their organisation. She outlined the identification and selection of potential sponsors, their needs, the needs of the Heart Foundation and the resolution of potential conflicts in their relationship. Lisa guided the audience of 16 attendees through their partnership experience step by step.
On Thursday, September 1 we are privileged to have Canadian philanthropy consultant, Ian Fraser, presenting a half day masterclass on “Making the Most of your Major Gift Opportunities” at the UWA Club. Ian currently serves as a consultant in gift planning and as Executive Director for the Charitable Gift Funds Canada Foundation, one of Canada’s leading independent foundations specialising in philanthropic solutions for high net worth donors.
Their appointment of an agency allowed them to manage internal change by educating, engaging and providing information for all stakeholders to reach the desired outcome of greater awareness of Heart Foundation objectives.
Ian will be presenting practical information on creating major gift cultivation plans, identifying and nurturing relationships with prospective major gifts donors, the solicitation and acceptance of major gifts, handling objections and closing the gift.
Lisa discussed social marketing, corporate challenges, tied in with community support and divisional activities that were evaluated and measured to assess their tactics throughout the process.
Also stay tuned for more news about this year’s State Conference. Bigger and better than ever, we have already confirmed two of our interstate speakers. Fundraiser, consultant, copywriter and blogger, Christiana Stergiou from Scribbly Bark, will present at the conference, and then following up with our half-day conference masterclass. Also back by popular demand will be fundraising agitator Sean Triner from Pareto Fundraising.
While writing to Victorian members last month, I exhorted them to consider submitting an application to the FIA Awards for Excellence, highlighting the opportunity this provides for critical assessment, benchmarking and recognition for both staff and volunteers This then led me to reflect upon the role volunteers play in so many of our organisations, and without whose help the delivery of services that our clients require would be significantly impacted. Similarly the delivery of services to you, our FIA members, are greatly reliant upon volunteers. The luncheon, special interest groups or Skills course that you attend would not happen without the dedication of people, who give of their time and talents for no other reason than their desire to see our profession continue to evolve. In Victoria we have wrestled with the question of where do we position our offering, what is relevant and what do members see as being of value in their career development? You can help to answer those questions by completing the survey that will be forwarded to all Victorian members in late August. Your response will greatly assist the committee in planning a professional development calendar that is reflective of member need. While doing this, please also consider an involvement at either State Executive level or as a member of a sub-committee. Volunteering for your profession will be greatly appreciated.
As a result the Heart Foundation has achieved phenomenal growth in awareness and fundraising since 2008. I’d like to thank Lisa for her well-received presentation. Finally a reminder that FIA TAS will present a Skills 2 course in September, so I’d like to encourage members to register their interest early.
Peter Burnett
Ric Fletcher
EMFIA
EMFIA CFRE
FIA Victoria
ADAPEF
President
FIA Tasmania President
FIA Victoria is proudly supported by:
42 Fundraising Institute Australia
All these events are an opportunity for you to be both an enthusiastic participant and an energetic contributor. Put the dates in your diary now. Brian Holmes FFIA CFRE FIA WA President
**CFRE ad layout no. 3
1/11/10
6:19 PM
Page 1
START TODAY
GET THE RECOGNITION YOU DESERVE
YOU MAY BE CLOSER TO CERTIFICATION THAN YOU KNOW. In every field, the professionals who receive the best positions and the most respect are those who have obtained relevant certification. The Certified Fund Raising Executive (CFRE) credential provides you with a way to demonstrate your achievements, integrity and mastery of the philanthropic fundraising profession. Visit www.cfre.org and we will let you know how close to certification we think you are. We will also help you along the way to ensure that you receive the recognition and credibility that you have earned.
CFRE
R
CERTIFIED FUND RAISING EXECUTIVE For questions visit us at www.cfre.org 703-820-5555
November 7-8 Blackbaud Pacific Conference for Nonprofits
Dockside, Cockle Bay Sydney
Calling all Blackbaud customers! Impact 2011 will bring together over 40 inspiring and innovative sessions at the one event. Join us to experience 2 days of parallel sessions focusing on real life case studies, fundraising best practice and advice, as well as product tips and tricks!
Exceptional networking opportunities with peers and industry experts Network with over 200 nonprofit professionals as well as a variety of industry experts.
Real life, practical solutions and presentations Learn from visionary international and local speakers and expert customer presentations. Make the most of our on-the-spot problem-solving, where our software gurus work with you one-on-one to review tips and best practices.
Don’t miss out! Whether you need to move forward in your professional development, technical education, or use of technology, you need to be at Impact 2011.
Book now as early bird registrations end on the 31st August. To register, visit the Blackbaud website or call +61 2 8986 6000 today!
events@blackbaud.com.au | www.blackbaud.com.au | +61 2 8986 6000 *Conference open to current Blackbaud customers only