Kevin Berchelmann is the CEO and principle consultant at Triangle Performance in Spring, Texas. He is a nationally respected expert on leadership and management and occasionally comes to Cedar Rapids for client meetings. Over the years we’ve had several stimulating business discussions – and more than a few glasses of wine.
Earlier this week Kevin posted a blog on facebook called, “Middle Managers: We Didn’t Miss Them Until They Were Gone.” His basic premise is that the notion of cutting middle management and then “doing more with less” is flawed. In a well-managed company, the elimination of managers simply redistributes the workload and leads to companies “doing less with less”.
Kevin’s message resonates with me because I see so many small nonprofits wandering down this path – but in a slightly different direction. Funding is a universal and constant challenge for such organizations. When enough money isn’t there, charities are faced with tough choices.
- Reduce services/clientele
An Eastern Iowa organization recently redefined its eligibility requirements to reduce its participation by over 20%. The reason – THE NEED was growing faster than the funds.
- Increased staff workload
Whether staff is reduced by layoffs or attrition, all too often, as in Kevin’s blog, workload is reassigned. Program/mission staff can be stretched far too thin, reducing the effectiveness of programming. Frequently program staff members are also asked to take on roles for which they are not well suited – marketing and public relations, for example.
- Cut fundraising budgets
This seems counter intuitive to many but, unfortunately, is all too often chosen as a course of action. Instead of across-the-board fundraising cuts let’s look at some ways to make your fundraising efforts more cost efficient.
- Plan all media for the entire year.
It is difficult to integrate your mission and need statements without planning how all will be intertwined. Are your facebook posts supporting your direct mail ask and your website donation page? Do you have vehicles available to engage event attendees in an ongoing relationship? Long range planning will improve your fundraising ROI.
- Clean your database
I’ve worked with dozens of donor databases and data hygiene is a major issue. At the very least run your file through an approved USPS standardization and change of address software annually. Most mailing vendors can do this for you at a reasonable cost and the investment will pay dividends.
- Target, target, target
Sending the right message via the right medium to the right audience is critical to overall success. Accurate targeting requires the donor analysis we discussed two issues ago.
New donors are at a crossroads. Their future relationship with you is hanging in the balance. Speak to them early and often. They MUST know what their generosity means.
Not all of your past donors are potential respondents. One-time donors who’ve been inactive for two or more years comprise over half of most of the donor databases I’ve studied. There is very little you can do to get another gift from them. Why keep trying?
Twelve to fifteen percent of your donors will provide 80-85% of your donation revenue. Be sure they know just how important they are.
Some members of your community are more likely to embrace your mission than are others. Target donor acquisition appeals to those that most resemble your current good donors.
These are just some of the ways to make your fundraising more efficient. What are some of your methods (comments, please)?
PS Read Kevin’s full blog here.
http://humancapitalresource.net/kevin-berchelmann/middle-managers-we-didnt-miss-them-until-they-were-gone/
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