The Founder of the renowned civic organization, Grand Street Boys, the late Judge Jonah Goldstein was fond of saying, "Happiness is the one thing in life that multiplies by division. The more you give to others, the more you have for yourself." Goldstein used this expression repeatedly at meetings in the 1940's. If everyone followed this, wouldn't the world be a better place? Dictionary.com offers two definitions for happiness: "1. the quality or state of being happy 2. good fortune; pleasure; contentment; joy." At the same time, Dictionary.com offers three definitions of happy: "1.pleased or delighted 2. pleasing 3. bringing good luck; fortunate." Obviously, Judge Goldstein felt strongly that for one to be truly happy, he must repeatedly bring joy to others as well as himself, thus providing one with a sense of joy, pleasure, delight and contentment.
So many people today seem to follow the "What's in it for me?" philosophy. It seems that too many people today often only "do the right thing" if they believe it will somehow materially benefit them. However, when one realizes that many of the wealthiest individuals in the world are also amongst the most miserable, it takes far more than merely the accumulation of material things, or self- satisfaction, to bring about true happiness. How many truly happy people can you honestly say that you know?
Besides being a well known judge in New York, Jonah Goldstein was famous for founding a civic and philanthropic group known as Grand Street Boys. Almost all the members of Grand Street Boys were professionals- - most of which were attorneys. The legal profession has often been much maligned, yet it is one of the first professions or occupations with an organized methodology of "giving back" to the most needy, via the "pro bono" process. Attorneys are regularly expected to, and do, perform a certain amount of "pro bono," or free legal work, for those unable to afford the cost of legal representation. Judge Goldstein encouraged widespread discussion and fabulous debating during the Grand Street Boys meetings, and in an interactive manner, encouraged members to "give back" to society, in any number of manners.
Why are so many "troubled" individuals so very unhappy? Some people have attributed this unhappiness to a variety of items, including financial reversals, financial pressures, "personal problems," or the often-stated, "He's just not a very happy person." Yet, all evidence points to the fact that those individuals that appear to be "happiest" are often those that "give back" more to society and to mankind. "Giving back" does not have to be financial, but it can be. However, merely donating money generally does not create the level of happiness that non- financial volunteerism does. Think about the people you have met who are the happiest - - - aren't they invariably the ones who volunteer more, are more charitable, and/ or more philanthropic? Should this not be a valuable lesson to all of us, and to society, especially in these difficult economic times, when many worthwhile charities so much need assistance?
Judge Goldstein was certainly a sage. He was an incredibly successful man professionally, yet he got more pleasure, fulfillment and happiness from "giving back" than from anything else. Wouldn't our world, especially in these troubling and trying times, be far better off if more of us emulated him?
Sunday, April 15, 2018
Thursday, March 15, 2018
Return on Investment - Nonprofit Fundraising
You are an Executive or Key Volunteer leader of a not for profit who has been in your position less than a year. You know the honeymoon is over. One of the many issues you want to address is the concern that so much of your fundraising time, energy and resources are spent planning fundraising events. It seems like the mission of your agency has shifted, and staff as well as volunteers spend more time planning parties than delivering service.
Fundraising events can and do play an important role in many not for profits. However, too many organizations do not fully understand how to maximize their fundraising efforts.
This may seem like blasphemy to some, but events should primarily be utilized to attract new donors, cultivate existing donors and volunteers, say thank you to your donors, volunteers and staff, or to provide community education. For most organizations, events (with a few notable exceptions) should not be undertaken if they are expected to provide a good financial return on the organization's investment of time and resources to produce the event.
According to the AAFRC Trust for Philanthropy, 78.3% of all charitable contributions come from individuals. It is also well known that 80%-90% of all funds raised from those individuals are from the top 10% of donors. In other words, major giving is where it's at. This is not to preclude the importance of broad based memberships and giving at all levels, but rather to focus your fundraising energies on the best return on investment (ROI) of time, staff, volunteers, and other resources, facilities, etc.
When calculating ROI, keep in mind the indirect costs associated with fundraising. For example staff costs are not just for those who are directly involved with fundraising. Other staff and administration typically are involved as well, albeit to a lesser extent. The costs associated with staff and volunteer time, facility usage, overhead expenses, as well as out of pocket direct costs should all be factored into determining ROI.
From an ROI perspective, it costs less and produces more income to raise major gifts than to use other methods of fundraising. While a variety of methods should be used in each organization, all too often, nonprofits tend to utilize, to a disproportionate degree, those methods which produce the lower returns, (events and direct mail) rather than those that are more effective (major gifts)..
Special events can build excitement, engage people, provide enjoyable opportunities for volunteers but they typically cost too much to produce to justify the amount of money they raise. As a result, most organizations are reducing the number of events they hold and are putting more emphasis on major gifts and planned giving.
Using the return on investment approach to analyze fundraising performance is an excellent way to engage leadership and staff on how best to plan your future fundraising activities. You will find that Board members who have for-profit business experience will likely better understand such an approach to planning and resource allocation.
Fundraising events can and do play an important role in many not for profits. However, too many organizations do not fully understand how to maximize their fundraising efforts.
This may seem like blasphemy to some, but events should primarily be utilized to attract new donors, cultivate existing donors and volunteers, say thank you to your donors, volunteers and staff, or to provide community education. For most organizations, events (with a few notable exceptions) should not be undertaken if they are expected to provide a good financial return on the organization's investment of time and resources to produce the event.
According to the AAFRC Trust for Philanthropy, 78.3% of all charitable contributions come from individuals. It is also well known that 80%-90% of all funds raised from those individuals are from the top 10% of donors. In other words, major giving is where it's at. This is not to preclude the importance of broad based memberships and giving at all levels, but rather to focus your fundraising energies on the best return on investment (ROI) of time, staff, volunteers, and other resources, facilities, etc.
When calculating ROI, keep in mind the indirect costs associated with fundraising. For example staff costs are not just for those who are directly involved with fundraising. Other staff and administration typically are involved as well, albeit to a lesser extent. The costs associated with staff and volunteer time, facility usage, overhead expenses, as well as out of pocket direct costs should all be factored into determining ROI.
From an ROI perspective, it costs less and produces more income to raise major gifts than to use other methods of fundraising. While a variety of methods should be used in each organization, all too often, nonprofits tend to utilize, to a disproportionate degree, those methods which produce the lower returns, (events and direct mail) rather than those that are more effective (major gifts)..
Special events can build excitement, engage people, provide enjoyable opportunities for volunteers but they typically cost too much to produce to justify the amount of money they raise. As a result, most organizations are reducing the number of events they hold and are putting more emphasis on major gifts and planned giving.
Using the return on investment approach to analyze fundraising performance is an excellent way to engage leadership and staff on how best to plan your future fundraising activities. You will find that Board members who have for-profit business experience will likely better understand such an approach to planning and resource allocation.
Tuesday, February 6, 2018
Before You Donate to Community Service Or a Charity, Investigate the Organization
"Charity could lead to a multitude of sins," said Oscar Wilde. What did he mean? In a financial sense, he may have meant that you have to be careful about how someone will spend your donation. But perhaps he also meant that you have to be wary about what charity you donate, lest the people that they profess to help never receive your donation. Throughout history, the most preferred method of stealing money has been to steal it under the guise of charitable interest. By preying on people's sympathy, unscrupulous charities can receive a constant flow of money without having to do much convincing.
In most cases, ulterior charitable organizations don't pocket your donation outright. Instead, they trickle a small amount of money to their supposed beneficiaries and use the rest for other purposes. However, if you're considering donating to charity, the goal is not to be so careful that you decide not to donate, but to follow some time tested advice that will keep you from donating to the wrong organizations. Whether you plan to donate to community service projects, a religious charity or a secular charity, following the two tips below will keep you from giving to organizations that will misappropriate your donation.
Research the Organization
Whether the aim or your donation is toward a community service project or a general charity fund, don't give to an organization before you request its written literature and a copy of its latest annual report, which should include a list of its board of directors, its mission statement and its most recent available audited financial statements that include accompanying notes. While it would still be possible to falsify this information, most unscrupulous organizations are looking for easy targets and won't spend time going back and forth with someone who questions their legitimacy. But the rule is to not give to organizations that can't provide you with the above materials, regardless of their explanations.
Make Sure the Organization is Legitimate
Here's how easy it is to start a false charity or community service organization: you put up a website, rent cheap office space under an assumed name and have enough few phone lines so that each of your associates can represent a different department. Therefore, even if you receive convincing documents from an organization, it's best check with the American Institute of Philanthropy (AIP) in the case of charities and the Better Business Bureau Wise Giving Alliance in the case of community service organizations to see if they're familiar with the organization that you're considering. If they don't have a record of the organization, it could either be because the organization is extremely new or because it's operating as a temporary money-maker in the form of a charitable organization. In general, its best to only donate to organizations that watchdog groups know about.
In most cases, ulterior charitable organizations don't pocket your donation outright. Instead, they trickle a small amount of money to their supposed beneficiaries and use the rest for other purposes. However, if you're considering donating to charity, the goal is not to be so careful that you decide not to donate, but to follow some time tested advice that will keep you from donating to the wrong organizations. Whether you plan to donate to community service projects, a religious charity or a secular charity, following the two tips below will keep you from giving to organizations that will misappropriate your donation.
Research the Organization
Whether the aim or your donation is toward a community service project or a general charity fund, don't give to an organization before you request its written literature and a copy of its latest annual report, which should include a list of its board of directors, its mission statement and its most recent available audited financial statements that include accompanying notes. While it would still be possible to falsify this information, most unscrupulous organizations are looking for easy targets and won't spend time going back and forth with someone who questions their legitimacy. But the rule is to not give to organizations that can't provide you with the above materials, regardless of their explanations.
Make Sure the Organization is Legitimate
Here's how easy it is to start a false charity or community service organization: you put up a website, rent cheap office space under an assumed name and have enough few phone lines so that each of your associates can represent a different department. Therefore, even if you receive convincing documents from an organization, it's best check with the American Institute of Philanthropy (AIP) in the case of charities and the Better Business Bureau Wise Giving Alliance in the case of community service organizations to see if they're familiar with the organization that you're considering. If they don't have a record of the organization, it could either be because the organization is extremely new or because it's operating as a temporary money-maker in the form of a charitable organization. In general, its best to only donate to organizations that watchdog groups know about.
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