At some point, each nonprofit organization should introduce a Planned Giving Program. The question is, when is the right time?
I think Planned Giving logically builds out from the annual fund. As your annual fund grows, maybe by the fifth year, and you have a newsletter in place, it’s the right time to ask donors to consider your nonprofit as a beneficiary in their will.
It helps to have an estate planner on your board. A person with expertise in writing wills or working with financial institutions in creating trust documents that can protect assets from probate. It’s very important to identify an experienced attorney in this area. Some States have Estate Planning Councils, and some States have persons certified to prepare such documents.
If your donor requests some help in this regard, you can provide some language to recommend for inclusion in the person’s will. I do not recommend that the nonprofit get involved in recommending specific attorneys to write wills. there should be an “arm’s length” relationship between the donor and the nonprofit so there is no conflict of interest that can call the ethics or even the legality of a document into question. Contact your State’s Bar Association and learn how they refer inquiries to competent estate planners. If it’s clear that only qualified, experienced planners make the list, you can feel reasonably confident that referring donors to the Bar Association can be beneficial.
When you look at newsletters of universities, hospitals, and voluntary health organizations you will see ads or articles on this subject with recommendations that the individual follow up with a person in the development office for advice on how to proceed. Your nonprofit may not have a development office. But you can have a volunteer attorney with estate planning experience who can assist you properly and help guide donors in a proper and ethical way.
There are other options to investigate, like charitable remainder trusts or charitable gift annuities that can be beneficial to the donor. Recruit competent volunteers to help you get organized. It might take a year of three to get this properly organized. But it’s worth the effort.
Last week I wrote about how nonprofit leaderscan go about identifying good candidates for their particular Board.
Part of the focus needs to be on people who share a passion for this nonprofit’s mission.
Here’s a way not to go about it.
A couple of years back, I was at Staples making copies of handouts for my nonprofit fundraising class. Another gentleman was there, making copies of a document. He noticed the subject matter of my material. He asked if this was part of my work. Within 5 minutes of the start of this casual conversation, he asked if I’d consider joining a nonprofit Board he was on that needed help.
Well, I had a clue right then and there why his Board was troubled.
The search and selection process for nonprofit volunteer leadership should be as rigorous as the process for seeking an executive director. There should be a job description, an interview and screening system, and a trial period; perhaps service on a Board committee first.
This is why more nonprofit Boards are designating a Governance Committee with the task of doing the nominating work, and bringing vetted candidates to the Board for consideration.
Thoughtful cultivation of volunteer leaders is a hallmark of an effective nonprofit organization.
Why is it that so many nonprofit boards struggle and fail?
There are so many challenges to nonprofit sustainability. Raising money. Raising a staff in stages. Setting strategic direction. Building and retaining a working Board of Directors.
Today I focus on this last key piece. Building, cultivating and firming up the Board. Not easy. But there are steps from start-up to high performance.
FIRST gather a few (maybe five) people with some sense of what makes a nonprofit work, who love the mission that you’re envisioning, and will give you some time to make this work.
SECOND ask around for sample Board job descriptions. Collect a few. Bring them to one of the first meetings and talk it through. Seek common ground on what it takes to succeed.
THIRD Agree on frequency of meetings. Monthly for first 6 months? Alternate months thereafter?
FOURTH Agree on necessity of committees. Finance. Development. Governance. And recruit a few volunteers to join the committee who want to help but aren’t yet ready for Board prime time.
FIFTH Organize meeting agendas so important stuff needing Board action (vote) come forward. Easy on staff reports. Those can be required reading prior to each meeting.
Get members’ agreement to come to meetings prepared to discuss and decide. As the Board grows, members will develop a sense of what’s involved and where they can best contribute.
Building from ground up gradually over time will help get your nonprofit right where you want it to be.
At least you’ll give this key piece of the puzzle of effectiveness a strong chance of success.
Jay Rosen (@jayrosen_nyu) is a frequent social media/marketing commentator teaching at NYU. I’ve followed him on Twitter for several years. I am particularly drawn to his observations on the changing state of communication in the USA and the world. Here is a recent blog post from Jay: http://publiceditor.blogs.nytimes.com/2015/02/25/trying-to-keep-a-celebrity-class-of-commenters-happy/?_r=0.
I find it interesting that the NY Times is looking for ways to boost comment opportunities for readers on their stories. In part, the paper/website attracts a sophisticated level of readership. The comments frequently are as interesting (sometimes more) than the writer of the original piece.
What does this topic have to do with us in the nonprofit realm?
Social media give us many new vehicles for discourse with our customers: Primary (those benefiting from the work we do) and Supporting (those who make our work possible through donations and volunteering). To the extent possible, we should encourage this communication. Stimulate it when we can. Because enhanced communication helps firm up the relationship. And this is a good thing.
Granted, we do have haters out there who are disappointed in us and what we’re delivering and what it costs us to make our goals come to fruition.
Sometimes the criticism is justified, and can help us reflect. And maybe even change the way we go about our business. Imagine that!
Communication improves our ability to imagine. And as we move along in our work, it serves to improve the quality of what we’re delivering. Chew on that a bit. Please.
All thanks to some words of wisdom from Jay Rosen. A guy I admire from afar.
Museum of Fine Arts, Boston hosts First Friday events. These gatherings starting late afternoon and going ’til 9:00 PM seem designed to draw younger audience to come have a cocktail, listen to music and congregate with folks from a similar age group. They are drawing nice crowds.
The idea is to identify MFA as a nice setting to gather after work on Friday night and socialize.
The hope is that young up-and-comers will see MFA as a “with it” spot to meet others with some similar interests…the basis of an on-going relationship.
Good idea for a nonprofit seeing to attract younger generations who might take an on-going interest in the mission of your nonprofit.