Ask the experts: Dealing with “founder’s syndrome”

By R. Michael Patterson, CFRE

This month the Bacon Lee & Associates team responds to a question from one of our readers about combating “founder’s syndrome.” It can be a very tender spot for many organizations and requires careful attention.

Q: A prominent organization that many of us care about seems to be experiencing something that happens to every nonprofit. Founder’s Syndrome. Can you share with us the reasons why every nonprofit goes through this, and what you would say to counsel this (and every) organization to encourage them to work (and soon!) toward their next phase of organizational development?
A: Let’s be thankful for the many founders who have taken the initiative to establish the many wonderful non-profit organizations!  Their foresight and work have changed lives for the better.   My colleague Barbara Anne Stephens shares that,  “Founders are generally very passionate people.  They are cause driven.  They are entrepreneurial.  They multi-task because they’ve had to do so from the beginning.  They tend to put their friends on their original boards and they are fearful of board members who have questions.  They are “the face” of their organizations.  Founders have great parental instincts and they use them in the early years of their work.”

That said, many founders also have a syndrome that goes something like this:  “This is the way we’ve always done it.  We’ve been successful so far.  I don’t see any need to change.”  Barbara Anne adds, “Many board members are in league with the founder unintentionally.  Boards have to work hard when a founder transitions.  Sometimes they prefer the status quo to the detriment of the organization.”

Because founders, with all good intentions, put the brakes on new initiatives and ideas, they impede the continued growth of the organization that has been such a crucial part of their life.

Unfortunately, it is extremely difficult for most staff members to make any impact on a founder, especially in the area of fundraising.  Perhaps it’s time for a capital campaign or to develop a planned giving program that can take the organization to the next level of achievement.  Many founders don’t see the need for this, and if they do, they may be reluctant to call on the network of donors they’ve developed over the years for campaign gifts.

Influencing the founder is usually best achieved from a peer, such as a board chair or perhaps influential member of the community that she may respect and admire.

As organizations grow and thrive, it is possible they may outgrow the skill set of a founder.  Another alternative would be to move the founder to an emeritus position, serving as the visionary for the future but having no governing authority.  This, again, would have to come from a peer and done very delicately.   Barbara Anne adds, “The best option is to begin with the Board of Directors, and in particular, the executive evaluation committee.  The committee needs to ask about transition plans as part of the annual review.  It is part of their fiduciary responsibility.   The Board can also provide opportunities for a founder to meet with a career coach.  Who knows what possibilities await a successful nonprofit founder!  Most founders have a valuable story to tell.  If they have been effective as fundraisers they might become excellent planned giving officers or donor relations specialists.  But that is only possible when the founder is prepared for the next step and excited about what the future holds for the organization.  Naming an endowment fund for the founder shows respect.  By all means, find a way to honor the work of a founder.”

Founder’s syndrome is an extremely difficult matter to resolve.  You always run into the danger of greatly offending the founder and confronting a stubborn founder who’s not going to change.  You also have the problem that most peers are not willing to confront him/her about the fact that they may actually be a hindrance.

So sometimes you’re left with the situation that nothing is going to change until the founder completely steps aside or passes on.

Send your “ask the experts” questions to the Bacon Lee & Associates team at www.baconlee.com.  We’re eager to assist!

Look for more articles by Mike Patterson:  “Assessing a Donor’s Legal Capacity.”  The NonProfit Times e-newsletter. February 14, 2012, and  “A Glimpse into the Life of a Planned Giving Field Officer.” Planned Giving Today. February 2012.

Board member giving still an imperative

By Joyce Penland, CFRE

Your nonprofit expects its board of directors to participate in giving and you’ve achieved 100% participation every year.  If that’s the case, congratulations!  But if your board hasn’t achieved that milestone, you’re not alone.

In a recent conversation with a client’s board of directors, Bacon Lee & Associates stressed the need for 100% board member support as the client considers undertaking a significant capital campaign.  Looking for additional data, I recently read the report from the National Research Collaborative on the AFP website about results of giving in 2011.

NRC survey respondents answered questions about giving by board members and board member engagement in fundraising.  In the U.S., for organizations with revenue above $250,000, nearly 6 in 10 respondents require each board member to make a contribution. About a third of respondents reported that their organizations set a minimum contribution amount, which averages $4,977. The average for the minimum board member gift is higher for arts organizations ($5,655) and educational institutions ($12,520).  Keep in mind that many nonprofits boards will have a lower average gift size.

About three-quarters of responding nonprofits said that their board members assist with fundraising by making links between the organization and a prospective donor, either through:

• Use of the board member’s name in appeals (79%),
• Asking friends and associates (78%), or
• Making introductions (76%).

Between 50 – 60% of organizations have board members who take a more active role in fundraising, which includes:

• Chairing events (65%),
• Securing sponsorship funding (62%), or
• Making personal visits to prospective donors (58%).

Because board member giving is imperative to an organization’s success, it’s essential to stay abreast of “industry standards” that can be used to encourage your executive director and to influence board members to give.  To read the full report, go to http://www.afpnet.org/files/ContentDocuments/NRC_April_2012_FINAL%20v2.pdf

Ask the experts: Does the donor relationship follow me when I leave my job?

Two Sides of a Coin:  Funders and nonprofits

By Vicki Boyce

One might consider working with a funder to have two aspects, or two sides of a coin: the personal relationship and the paper relationship.  Assuming you’ve done your homework and established the fact that your organization is a “match” with a potential funder, here are some tips to making sure that “coin” shines!

The ‘personal relationship’ side of the coin:

1. Visit in person with foundation personnel and ask questions:

• Would this be a good time for us to request funding?
• Which of the two programs, A or B, would most appeal to your Board?
• How much would you recommend we ask for?

2.  Invite staff or Foundation board members to visit with a specific purpose in mind:

• Don’t fill their head with statistics!  Use few, and in the context of need or results.
• Avoid acronyms, they don’t live in your world.
• Honesty is the best policy!  If for some reason previous funding has taken on a different  look, communicate that.

3.  Following the funding it’s important to show appreciation!

• Call and write a personal note, in addition to a form letter.  The notes are passed around to the Board members, but the form letters are pitched.
• Send a photo of the funded program in action, or scan a letter written by a client and
• EMAIL it to the funder.  It’s easy to hit “forward” and send to the entire Board.

Now, let’s flip the “coin” to the other side:  The paper relationship requires that you do your homework prior to writing a proposal since there is no clearer picture of what is important to a funder than last year’s list of recipients.

• Answer in the space allotted.  If you’ve ever read 40 applications, the consistent format of the application keeps one’s brain straight!
• Keep it simple; the funder may not understand your “language.”
• When asked how the requested funds will be used, be as specific as possible.
• Be a problem solver in your application, not just a problem describer.  This gives the funder a reason to be hopeful and a desire to partner with your organization.
• Design your evaluation to be measurable.
• Read the guidelines one last time before you put it all together to submit.
• Do not wait until the foundation asks for a report.  Enter in your calendar “report due to ABC Foundation” a week before it’s due.

So, as you’re addressing the personal relationship and the paper relationship with a funding organization, when you deposit your coin, make sure both sides are shiny and bright!

Inquiring minds want to know

By Marion Lee, CFRE

“A prudent question is one-half of wisdom.”

– Sir Francis Bacon (a better known Bacon)

This is a lovely profession!  Every time you turn around there is something new, different and puzzling.  Over the years, we here at Bacon Lee & Associates have been asked to sit on panels that have been challenged with a myriad of questions.

We’re asked everything from, “Should I go into fundraising as a profession?” to “How do you go about raising $70 million?” – but that one really couldn’t be answered in a panel setting with limited time.

So, we would like to launch something a little new and different in our newsletter to help you in your day-to-day job.  Call it what you will, “Ask the Experts” or “ Query the Consultant” we want to address the issues and questions that are affecting you now.

Here is how it will work.  Please send us your questions either through our blog or to my email (mlee@baconlee.com).  We will pass the questions around to our associates or other experts in specific areas and respond to you either through our blog or directly to your email.  Each month, we will select a few of the questions and answers to feature in our Ask the Experts section.

So to get us started, let me toss into the ring one of my favorite and most often asked questions:

Question: How do I get my (board, committee, advisory group) to give to our annual fund?

Answer: This is not a one-size fits all answer but certain basic tenets will prevail.

First: Take a look at the way you are asking them for funding.  Do you say and do practically the same thing every year?  Is it always staff making the asks directly or indirectly?  Do you get almost the same response- about 50-60% participation, but never get to 100%?

Second: Look over the board or committee members carefully.  Is there someone you can educate and engage to be your spokesperson for the annual fund?

Third: Once you identify and educate a leader, give them the facts and outcome information that they will need to ask or encourage their peers to make their gifts.

Fourth: Come up with something fresh!  Find a challenge matching gift or some kind of innovative way to get their attention.  The best challenges come from peers.

Fifth: Track the response and report it directly to your annual fund leader or chair.  Make sure that they see the progress and the shrinking number of people on the list that they have to call.

Finally: Give the volunteer group the good and bad news.  Provide accolades for the progress and honest feedback on what still needs to be done.

We all fall into the trap of grinding through our annual fund, relying totally on the staff vis-à-vis direct mail, email, and subtle packets placed on the board table.  We forget that the board should lead, the initial phase of this endeavor, thus we fail to use one of our best resources.

We would like your feedback so if you have any thoughts or questions you would like to submit, send them through our blog at www.baconlee.com or to me at mlee@baconlee.com.