Tuesday, March 30, 2010

Should Board Members Contribute Financially to the Ministry they Serve or is the Contribution of Time and Energy Enough?

This seems to be every board’s complaint: “I give time and energy, so I don’t have to give money.” Time is valuable, but it does not replace financial giving.
I hear the time contribution excuse from board members all the time – especially board members who do not do much more than attend a monthly or quarterly board meeting. Meeting attendance is important, of course, but if that is all a board member is willing to do, then it is time to move on.

Board members are the people who are closest to the organization, who are most passionate about the mission, and know best how deserving the ministry is of financial support. If these board members are not willing to make a financial investment in the organization, why would a community member, a foundation, or a corporation want to?

It is the ministry’s responsibility to ensure that board members understand the organization’s expectation for board contributions, and that expectation should be clear from the beginning. Occasionally you will be recruiting board members because of their expertise or position of authority but they should still also be committed enough to the ministry to give financially.

If your organization asks ANYONE for a donation, board members should be first to give.

Contributions do not have to be huge, but they should be sacrificial. Everybody, even people who are unemployed, make some charitable contributions. Whether it is $2 or $2 million, board members should be asked to give a gift that would be considered generous given their individual means and abilities.

Consider this: board members must, from time to time, go on solicitation calls or ask others for a contribution. If the board member has made a contribution first, he or she is really asking the prospective donor to join him or her in the support of the organization. This is an easy request.

However, if the board member has not made a contribution, the request feels like begging for charity. No one likes to beg. That is precisely why most board members hate soliciting. They are begging rather than not recruiting.

Foundations and corporations want to know that the board is supporting the organization financially. If the board is looking for funding from the community but is not giving of their own means, the foundation is likely to pass.

Clearly, the answer is “yes, board members must contribute financially” and “no, time contributions alone are not enough.” This may be a tough message for the board. But why would individuals, foundations, and corporations contribute when the board of the ministry does not sufficiently value the ministry by offering financial support? I have been on many donor meetings where the donor asked if I give to the organization myself. I have also seen many grant applications ask for a list of board member contributions. If you want funding from others, you had better be able to answer this question appropriately.

Jeffrey J. Rodman is the founder, President, and CEO of Here-4-You Christian Grant Consulting and Church Grant Writing providing consultation for grant writing and funding development nationally and internationally. Mr. Rodman has a Master Degree in Education, is a Certified Fund Raising Executive (CFRE), and is a Certified Grants Specialist (CGS). He is an experienced grant writer, nonprofit executive, and public speaker. Mr. Rodman has written hundreds of proposal to both government and private sources, has secured millions as a consultant, and has an 80% success rate in securing grants.

Here-4-You Christian Grant Consulting
Jeffrey J. Rodman, CFRE, CGS, M.Ed.
President & CEO
Website: http://www.npfunds.com
Blog: http://npfunds.com/blog
Phone: 1-866-HERE-4-U-1

Friday, March 26, 2010

Grant Development: Consistent + Persistent + Organized = SUCCESS!

Regardless of your experience, skill level, or even the quality of your competition, with enough time, the following principle will allow you to win grant funding for your organization! The single principle that will give your organization a huge advantage and will virtually guarantee your success is CONSISTENCY.

In fact, the only thing that can stop you from developing a successful grant strategy and securing the funding your organization needs is to not utilize this principle… and that is the number one reason why incredibly deserving, compassionate, and valuable ministries never obtain the funding they need to survive and why they eventually close their doors as a result.

Many wonderful ministries get frustrated when they start to implement a grant development strategy and do not see the results quickly enough. They look at their competitors and notice the amount of funding they have secured and wonder why they are not yielding the same results. Having an organized approach is, of course, important. However, I have found that the number one reason ministries fail at grant writing is that they quit before they start to see results.

A lot of people become gung-ho about new goals or opportunities, and they charge out of the gate in an explosion of activity - yet their intensity and commitment quickly fizzle. Meanwhile, those who begin the journey with less flash but a greater commitment to consistency eventually catch up to their flamboyant peers and leave them in the dust. Your ministry should do what most ministries do not: Stay consistent.

Darren Hardy notes that the “lack of consistency is the subtle stealer of dreams. The stop and start process kills progress in any pursuit. In fact, inconsistency is one of the biggest reasons people don’t achieve their goals.”

When you start thinking about slacking off on your action plan, routines, and rhythms, consider the massive cost of inconsistency. It is not the loss of the single action and the tiny results it creates; it is the utter collapse and loss of momentum your entire progress will suffer.

Zig Ziglar uses the analogy of a hand-pumped water well. The water table is 25 feet below the ground. A pipe runs down to the water, and you have to pump the lever to create the suction that brings the water above the ground and out of the spout.

When most people start a new endeavor, they grab the lever and start pumping really hard; they are excited, committed, and resolute…. They pump and pump and pump, and after a few minutes, when they don’t see any water, they give up pumping the lever altogether.

The same principle applies to grant writing and development. Many start a new grant writing endeavor by submitting a flurry of application to dozens of foundations. A few months later when they still have not received any grants (or sometimes even any responses), they conclude that grant writing just will not work for their ministry and therefore give up.

If they persevere and continue to pump and pump the lever, eventually a few drops of water will appear. At this point, a lot of people say, “You’ve got to be kidding! All this pumping, and for what? A few drops of water? Forget it!”

A ministry may say, “after a full year of grant writing we only secured one $5,000 grant. What good will that do my ministry?” They don’t see the results they were expecting (expectations can really hurt us at times). They think their plan isn’t working, and they quit. The wise ministry will persist and continue to pump in their grant development efforts.

If you continue to pump, eventually, you will get a full and steady stream of water. Congratulations, success!

Now, here is where grant development gets really exciting…

Once the water is flowing, you no longer need to pump the lever as hard or as quickly. It’s easy to keep the pressure steady by just pumping the lever CONSISTENTLY. But now you need to KEEP pumping!

So, what happens if you let go of the lever for too long? The water falls back down into the ground, and you’re back at square one. If you come back and pump the lever easily and steadily, you still won’t get any water. You have lost the vacuum, or the momentum of your compounded effort. The only way to get the water flowing again is to start all over.

The ministries that persist long enough to start to see funding have a new problem when it comes to consistency…they forget to keep pumping. The problem is that they work really hard to get the funding flowing and then take a break. Ugh! Now they have to pump like crazy again just to get back to even. Living life in a constant state of fits and starts is frustrating and demoralizing.

Consistency is one of the most important principles of grant writing success.

Does this sound like your ministry? Is your grant development process full of starts and stops? Flurries of activity followed by months of stagnation? Have you quit grant writing because you determined that it just will not work for your type of ministry?

Here is the message: Grant writing works for every ministry! If you have a consistent, persistent, and organized effort you will see success. This is not a question of IF you will see success but WHEN you will see success.

If you are thinking that your ministry simply does not have the resources to do this the right way, consider using an outsourced grant development consultant. A consultant will develop an organized grant development strategy and then implement that strategy in a consistent and persistent manner. If you are patient, and the consultant is up-front and honest with you about what to expect, you will see success and your ministry will gain the funding it needs.

My thanks go to Darren Hardy (http://blog.success.com/author/darren-hardy/) and Zig Ziglar (www.ziglar.com/) for the principles and analogies used in this article.

Should Board Members Contribute Financially to the Ministry they serve or is the Contribution of Time and Energy Enough?

This seems to be every board’s complaint: “I give time and energy, so I don’t have to give money.” Time is valuable, but it does not replace financial giving.

I hear the time contribution excuse from board members all the time – especially board members who do not do much more than attend a monthly or quarterly board meeting. Meeting attendance is important, of course, but if that is all a board member is willing to do, then it is time to move on.

Board members are the people who are closest to the organization, who are most passionate about the mission, and know best how deserving the ministry is of financial support. If these board members are not willing to make a financial investment in the organization, why would a community member, a foundation, or a corporation want to?

It is the ministry’s responsibility to ensure that board members understand the organization’s expectation for board contributions, and that expectation should be clear from the beginning. Occasionally you will be recruiting board members because of their expertise or position of authority but they should still also be committed enough to the ministry to give financially.

If your organization asks ANYONE for a donation, board members should be first to give.

Contributions do not have to be huge, but they should be sacrificial. Everybody, even people who are unemployed, make some charitable contributions. Whether it is $2 or $2 million, board members should be asked to give a gift that would be considered generous given their individual means and abilities.

Consider this: board members must, from time to time, go on solicitation calls or ask others for a contribution. If the board member has made a contribution first, he or she is really asking the prospective donor to join him or her in the support of the organization. This is an easy request.

However, if the board member has not made a contribution, the request feels like begging for charity. No one likes to beg. That is precisely why most board members hate soliciting. They are begging rather than not recruiting.

Foundations and corporations want to know that the board is supporting the organization financially. If the board is looking for funding from the community but is not giving of their own means, the foundation is likely to pass.

Clearly, the answer is “yes, board members must contribute financially” and “no, time contributions alone are not enough.” This may be a tough message for the board. But why would individuals, foundations, and corporations contribute when the board of the ministry does not sufficiently value the ministry by offering financial support? I have been on many donor meetings where the donor asked if I give to the organization myself. I have also seen many grant applications ask for a list of board member contributions. If you want funding from others, you had better be able to answer this question appropriately.

Monday, March 15, 2010

The Improving Grantmaking Outlook in 2010 Requires Ministries to Be Strong, Smart, and Strategic!

The economic downturn has reduced foundation assets, forcing funders to cut expenses and limit grantmaking. Foundations suffered a 22 percent reduction in assets in late 2008, fairing much better than the overall market in general. As a result, 2009 witnessed the sharpest decline in grantmaking in decades. The 2010 outlook is much more promising as many foundations have recovered the majority of the lost assets since the market low point 1 year ago. Since then, the S&P 500 Index has rallied by 68%, representing the strongest one-year recovery since the Great Depression and leading to many foundations surpassing gaining in wealth.

 
However, it is not all good news and grantmaking will never go back to the way it was before the market dropped. Foundations have learned valuable lessons through this process making them more strategic and demanding greater accountability. But there are plenty of things you can do to attract funding for your ministry.

 
Christian ministries and churches want to know if the economic recovery we're seeing will facilitate more grantmaking in 2010. The only way to answer that question is to turn to funders themselves. They do not speak with one voice. Their answers differ, which is not surprising considering the unknowns of the recovery and diversity of the foundations themselves. They are, however, as a whole, much more optimistic than they were a year ago, according to the findings of a Dini Partners' poll of the nation's leading foundation leaders.

 
In its Dini Partners Giving in 2010 survey, Dini Partners polled a select group of philanthropists to get their views on the recovery and the future of grantmaking.

 
Forty percent of the poll respondents expect to see renewed economic growth or believe the economy will continue to improve throughout 2010 and greatly stabilize by the end of the year. Twenty-seven percent expect to return to their high prerecession giving levels of 2008. An astounding 70% said they will give more than they did in the depressed giving year of 2009, 13% said their giving will depend on how well the stock market does, and 23% said they will give less than in previous years. Fourteen percent said they will give the same or slightly less than in 2009.

 
These findings, though mixed, reflect growing optimism. A year ago 62 percent of respondents said they would reduce giving in 2009 while only five percent said they would give more.

 
The Foundation Giving Forecast Survey by the Foundation Center queried over 500 foundations in September 2009, including 429 independent foundations, 110 community foundations, and 54 corporate foundations.

 
Fifty-four percent of the respondents said they will either match their 2009 level of giving in 2010 (39.4 percent) or increase it (14.1 percent). Smaller foundations which are more likely to be supportive of Christian ministries and churches are twice as likely as large foundations to give more in 2010. (Large foundations are those that give at least $10 million annually). About one in five foundations expect to give less in 2010 and 26% are uncertain how much they'll give.

 
Even a continued economic recovery this year wouldn't increase giving much by the largest foundations as grant budgets depend on rolling asset value averages from the two previous years.

 
All things considered, foundation giving likely will grow somewhat in 2010 and may see a strong resurgence in 2011. Optimism is on the upswing, opportunities for this year do exist, and 2010 is the right time for Christian ministries and churches to develop a strong grant development foundation for 2011.

 
Steps to making your Christian ministry fundable
The economic downturn is forcing funders to give strategically. More than ever, they must ensure that the funds they provide yield results. This means that you too must act strategically. More than ever, you need to give foundations what they want and heed grantmaking trends.

 
Foundations are increasingly interested in funding outcomes and causes rather than particular organizations. The answer is not to adapt your mission to each foundation, becoming everything to everyone. Your ministry will become much more fundable in these times by becoming known for staying true to its mission.

 
Development experts have other ideas as we transition from the harsh funding environment of last year to the better days ahead. Below is the Here-4-You Christian Grant Consulting version of the "Be Attitudes" for laying a strong foundation for grant development in 2010 and 2011.
  • Be Measured: Your "goals will be measured against your mission, tested against anticipated outcomes and community impact, and aligned with the specific collaborative input of donors."
  • Be Realistic: This means, "Do not return to the goals and high expectations of 2006 and 2007; at the same time do not remain mired in the anguish of 2009." 
  • Be Intentional: "We are now going to be even more intentional, deliberate, and purposeful in our decision-making process." Funders want you to do the same in your grant proposal-preparation process. 
  • Be Creative: In today's grantmaking environment, this means "moving away from a 'reaction phase' to an 'action phase.'" 
  • Be Strategic: "It is these plans that will express the measured, realistic, intentional, and creative underpinning of campaign and fundraising objectives and goals." 
  • Be Communicative: This means cultivate close personal relationships with both prospective gift donors and current ones. "This continues to be a period in which the close personal stewardship of relationships is paramount." 
  • Be Appealing: "In a surprising shift away from traditional thinking, the merits of the appeal - its mission alignment, precision of statement, and clarity of presentation - far surpass the importance of the person asking for the gift." 
  • Be Selective: Funders recommend that you "sustain and further develop annual fund support, along with welcoming select capital initiatives and campaigns...and rebuild endowment values through highly selective fundraising efforts, provided the endowment is guided by conservative and very deliberate investment policies and management." 
  • Be Stronger: "Given the time that has passed since the beginning of the recession, there is an expectation that most institutions have made adjustments to programming and expense management that would move them away from rescue fundraising for the operating budget." 
  • Be Collaborative: Seek out collaboration - foundations are urging likeminded organizations to fuse their resources to combat problems, enabling you to achieve more together than you ever could apart. 
  • Be Sustainable: Demonstrate sustainability - credibly explain how you'll fund your program once the grant period ends. 
  • Be Transparent: Transparency means providing easy access to financial information, mission and vision, programming plans, projects, and financial data.

Conclusion
In an environment in which more and more organizations battle for fewer and fewer grants, one funder in the Foundation Center poll spoke for the many by saying, "The long-term impact of the economic crisis on the nonprofit sector will be that only the strongest, smartest, and most strategic will survive." Ensuring that your ministry is strong, smart, and strategic in its grant development approach is crucial to your funding success and to your long-term viability.

Author Bio:
Jeffrey J. Rodman is a Certified Fund Raising Executive (CFRE) and a Certified Grants Specialist (CGS). He is an experienced grantwriter, fundraiser, nonprofit executive, and public speaker who operates Here-4-You Christian Grant Consulting and Church Grant Writing providing consultation for grant writing to Christian ministries and Churches worldwide.

Jeffrey supervises a team of writers, researchers, editors, and administrative staff in providing consultation for grant proposal writing, nonprofit development, and fundraising in almost every state and a dozen foreign countries and has worked on proposals to Federal, State, and Local government as well as to Foundations, Civic groups, and many others.

Jeffrey received his BS and his M.Ed. from George Mason University. He has written 100’s proposals, secured millions of dollars in funding, and maintains a funding rate of nearly 80%. He has successfully managed over 25 different grants as a grant administrator and has also served as a grant reviewer on a state, federal, and local level as well as on foundation review panels. Jeffrey is an experienced speaker and is a Certified National Trainer for programs in Ohio, Indiana, Georgia, Pennsylvania, and Florida.

Jeffrey loves to play games with his kids and enjoy time with his family. Although he grew up in New York, he has lived in Virginia since 1996 where he and his wife, Terri home school their five children, Alexandra (12), Mackenzie (9), Christian (6) Kaitlyn (3), and Abigail (born 02/10/2010).

Here-4-You Christian Grant Consulting
Jeffrey J. Rodman, CFRE, CGS, M.Ed.
President & CEO
Website: http://www.npfunds.com
Blog: http://npfunds.com/blog
Phone: 1-866-HERE-4-U-1