Starting Your Own Foundation

So you say you want a…foundation? 
Well, you know. 
We all want to change the world…

It might not be quite what the Beatles had in mind, but for more and more members of our generation, philanthropy seems to be a more appealing strategy than revolution.  We at FLiP, of course, are big supporters of young people using philanthropy to create change, and we’ve seen a lot of great examples of our peers using foundations to do so.  That said, if you’re looking to have a real impact and truly help your grantees, approach creating a foundation with care. 

FLiP has put together the basic steps for starting a foundation:

1. Consult a Lawyer.  We’re happy to give you advice on strategy, but we are definitely not experts in the tax forms you need to file or anything of a legal nature.  Make sure you talk to someone who can advise you on these issues.

2. Figure Out Funding.  The common perception of foundations is that they are created by individuals or families with a lot of money on hand, and that’s certainly still true in many cases.  But if that doesn’t happen to be your financial situation, there are other options open to you.  You could consider pooling money with several friends, in a sort of formalized giving circle.  You could also conduct events or other fundraising efforts to fund your grantmaking.

The Leadership Promise of Junior Boards: Part II of II

In Part I of our article we gave you some tools to assess your involvement on a junior board. If you’ve made the decision to serve, here are some best practices to help you make the most of your experience:

• Remember who you are serving. The junior board exists to complement and support a nonprofit organization that is addressing some issue or injustice. Keep in mind that you are part of a bigger effort to help society in some way.  This is an honor!

As such, the junior board should find ways to align its programming with the organization’s programs and services.  If a junior board is interested in working with young people and the sponsoring organization has a youth program, it would make sense for junior board members to serve as mentors, teach seminars, or host one-time events such as back-to-school drives.  Also, the junior board’s communications and marketing messages should be consistent with the marketing and public relations of the larger entity.

• Avoid activities that would reflect poorly on the nonprofit organization.  Although the junior board might be distinctly separate from the full board of the organization, it is fully accountable for representing the nonprofit with integrity and respect.  The junior board draws upon the brand equity and public image of the sponsoring organization.  Care should be taken to eliminate the possibility of damaging the organization’s reputation and relationships in the community.    

• Maintain a high quality relationship with the organization.  A junior board can find itself in a challenging situation when it fails to communicate its activities to the sponsoring organization.  If there is no staff liaison, consider regular email communication with the executive director or board chair or both.  We also suggest formal reporting of current and future activities each quarter.

  Communication is especially critical around fundraising activities. Enthusiastic and well-intentioned junior board members can actually hurt an organization by not coordinating with the development department.  For example, a $5,000 request to a bank to sponsor a junior board gala may hinder an organization’s effort to secure a $100,000 community development grant from the same bank if the bank has a policy of not granting more than one gift to an organization each year.

The Leadership Promise of Junior Boards: Part I of II

Junior boards are a creative and effective way for nonprofit organizations to capitalize on the time, talent, and networks of young professionals.  For the junior members, these boards present an opportunity to develop new skills and broaden their professional and social circles, all while serving a cause they feel good about. It can be a win-win for all parties when junior boards are strategically and thoughtfully executed.

Junior board members are enthusiastic volunteers, strong ambassadors for the organization’s mission, and spirited fundraisers.  They are also an important pipeline for future nonprofit leadership. The aging of the Baby Boom generation has created a critical leadership void in the sector. The wave of retirements today and in the near future will leave many charitable organizations scrambling to find their next CEO and possibly board chair.  Junior boards provide a natural opportunity to identify and cultivate new leadership.

The junior board function varies across the sector.  For some organizations, junior boards exist solely as fundraising entities. Their primary function is to host social events that raise much-needed dollars and introduce the organization to a new generation of committed donors.  Other organizations utilize their junior boards to help build their base of community service volunteers, access pro bono skills and services, and advise in programmatic areas, such as homelessness and HIV/AIDS.

Considering Your Service

Before you accept an invitation to serve, it is advisable to give thoughtful consideration to what you hope to achieve through the experience and what you can offer to the nonprofit organization.  You should feel confident that your participation will help you develop your skills and talents and better the organization’s ability to fulfill its mission.  The organization should be assured that it is spending precious time and resources to build a board that will help it accomplish its strategic goals. 

Re-starting a campaign stuck in the mud: Part II of II

In my post last week I discussed three common problems that may cause your campaign to lose momentum: poor leadership, difficult timing, and donor fatigue.  While these are three of the most common problems your campaign may have to address, they are not the only stumbling blocks that may arise.  Three additional problems you could face during your campaign include: a weak case, a lack of volunteers, and poor public relations.  Know that early recognition is key to minimizing the effect any of these factors may pose.   

Weak Case
Your case is the backbone of your campaign and is the very reason for your fundraiser.  The case illustrates the campaign “story,” it provides the rationale for requests, it clearly defines where the funds are allotted, (i.e. the needs of the campaign), and it gets people enthused, involved, and motivated in your campaign.  A compelling case can make the difference in a campaign, and it is essential that your organization outline the most important needs.  Though you may have pressing needs, perhaps they are not as visible or noteworthy as some more cosmetic items.  If your campaign has already begun, and donor feedback indicates that individuals did not feel compelled to give as much to the needs outlined, you may want to consider redrafting your case.

Re-energizing your case may be a matter of identifying a few additional needs to include.  For a campaign seeking to raise general funds with no concrete items in the case, this can be a bit trickier.  In my experience, I have found that memorial opportunities can oftentimes rejuvenate a stalled campaign.  Memorial opportunities might also bring out a donor who might not have given as much, but who now wants to memorialize a family member or loved one.  Take the time to consider any potential opportunities, as they may be just what it will take to get your campaign moving again.

Re-starting a campaign stuck in the mud: Part I of II

When it seems like your campaign is going nowhere due to a lack of good organization, poor leadership, or a variety of other problems, how can you get back on track?  What are the tricks for getting organized, re-motivating the staff and board, drawing donors back in, and reaching your goal?

When I first started writing this, I had in my mind three main stumbling blocks that many campaigns are vulnerable to: Poor Leadership, Difficult Timing, and Donor Fatigue.  After I began writing, however, I realized that there are many more problems and complications that may arise during the course of any campaign.  So for this first part I will focus on those three factors.  In the second part, to be posted next week, I will address problems caused by a weak case, lack of volunteers, and poor public relations.

Your campaign is off and running.  You have already met with several leadership donors who have agreed to support your cause.  Perhaps some initial buzz made your first events very successful and well attended.  All of the initial signs point to this campaign or fundraising effort being a success. 

However, if you have ever been involved in even the smallest fundraising campaign, you know that it is never that easy.  At some point that initial buzz and excitement may fade.  Maybe your timeline coincides with other events, major holidays, and the like.  Perhaps your volunteers have other commitments to attend to and can no longer give as much of their time.  Whatever the cause may be, every campaign at every level is vulnerable to a loss of momentum.  What we want to explore are the ways in which you can help your organization and team overcome those obstacles and continue to be successful. 

While there is not one “trick of the trade” that will help resuscitate your campaign, knowing the cause of the slow down will help you better address its revitalization.  So let us examine some possible explanations as to why your campaign has become “stuck in the mud” and how you can remedy the situation.

From the Ground Up: Building a Development Office

You’ve finally started that nonprofit you have been dreaming about, but how are you going to sustain the organization? While you may have a few initial donors who are willing to help get your organization off the ground, their funds will only last so long. That is why it is essential to create a development program that will help the organization sustain its funding in order for it to continue to grow. 

Although starting a development office may seem exciting, it doesn’t come without hard work and dedication. The process is a long and arduous one that may require 60 to 80 hours of work each week. Though intense, your hard work will pay off in the end; after all, a strong development office doesn’t just happen overnight.

While each organization’s needs are different, there are a few essential details to ensure that you are able to run a successful development office.

Have a strong mission
Be sure your organization has a clear mission and vision statement. Remember, if you are unsure which direction your organization is heading in, how will your prospective donors know? You want to create a case that is irresistible to prospects, showing the pressing need that your organization will fulfill with their support.

January: New Beginnings

As holiday cheer fades into echoes and 2006 becomes another year tucked away in our lives, the hope of something new and different always presents itself around this time. With absolute resolve we all vow to learn more, to be wiser, and to do better.

In the spirit of the New Year and the promise of new beginnings, FLiP is dedicating this month to rejuvenating, renewing and re-energizing our careers, our organizations and ourselves.

Meet two professionals in the sector who have made new beginnings, one with a bold career move and the other with a leading role in pioneering a new development program. Learn about what it takes to build up a development office (and keep it running!) and on the FLiPside, learn about what it takes to build up a foundation.

Working on the second year of a capital campaign and experiencing donor fatigue? We highlight essential tips for jumpstarting what seems to be a lagging campaign.

Nicole Sebastian, a recent Meet-A-FLiP (check it out here), said it best when she gave FLiP her reason for joining the board of Starting Bloc. “This is my first experience serving as a board member and given the work that I do, I felt it was important to ‘walk the walk.’” For those who are interested in walking the walk, FLiP examines Junior Boards, the role they play in non-profit organizations, and the emerging leaders who take part in them.

As you all know by now (because we repeat it in every new edition’s Letter from the Editor), FLiP aims to provide relevant information relating to young professionals in the philanthropic sector. We will continue to do this to foster communication among, and create a network for, young professionals in the philanthropic sector. But we’re always open for new ideas!

Happy New Year!