What Does Your CEO Need To Know?
Roger’s keen to deliver a message to nonprofit CEOs (and Boards).
More than a ‘message’ actually. He basically wants to ‘water board’ them until they confess to total ignorance of and disregard of fundraising. Then, once they confess, put them on the path to redemption via education.
So it seems to me one of the first things to identify is exactly what do we want them to know?
I had some fun with this issue in an earlier post, The Boss Wants To See You! There the idea was you got a totally unsuspected — and terrifying — summons to the executive suite to explain what you were up to.
Pokemon Go was just taking off at the time, so I suggested that topic might spark your CEO’s interest.
More seriously, I suggested chatting about your success with upping retention rates and participation in monthly giving.
I facetiously ruled out a conversation about improving lifetime value as far too weighty.
But seriously, what would you most want your CEO to understand and appreciate about fundraising? Let’s help Roger with some topics for that ‘Weekly Bulletin’ he wants to send nonprofit CEOs (and Boards).
To get you started, here are some of my ideas …
- The case for serious investing in growth. [As in getting a better return than your nonprofit’s endowment.]
- Lifetime Value 101. [An appreciation of the significance of the metric and its key drivers, like retention, would suffice for course credit. But make it a morning class.]
- The path from a $50 donation to a multi-million dollar bequest.
- The importance/benefits of eliminating fundraising silos.
- How the behavior/attitude of the entire organization affects fundraising success. [Your doorway for discussing the donor experience delivered by your organization.]
- Prudently grounding fundraising revenue projections. [Consider this essential to avoiding unpleasant, job-threatening surprises. Don’t schedule around budget season.]
- Need for constant upskilling of fundraising staff.
- What are you learning from watching what the top performers amongst your competition are doing? [If your CEO doesn’t have serious competitive juices, she shouldn’t be CEO.]
- Donor insights — what are you hearing from donors that might have strategic value?
My list tries to avoid much discussion about ‘how’ various fundraising tactics work or get done. That’s the fundraiser’s domain — your ‘black box’.
Confine your aspiration to educating your CEO on the most fundamental principles — some involve attention to numbers, some to attitudes — that will determine whether your organization grows or stagnates.
Your turn … ideas please?
Tom
6 responses to “What Does Your CEO Need To Know?”
Behavioral Science Q & A
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I’m not an expert in this but a quick search surfaced this article on the effect of tax reforms on 2019’s charitable giving. The researchers didn’t find a reduction. Actually, they observed an “increase in charitable contributions in 2019, even with the lower tax rates and the dramatically smaller number of taxpayers who itemize their […]
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Just another note about point 6. Realistic fundraising targets are so, so important. Ask your fundraisers to set their target and justify it. Believe them (unless there’s evidence not to.) Don’t agree to it and then whack on another 25% – this sets up your fundraisers for failure (This is one of the reasons why job turnover is so high). Stick up for your team and fight back against unrealistic expectations from the Board.
CEOs need to expand their mind beyond “this year’s budget” and become intentional about planned giving!
We are in the midst of the greatest transfer of wealth in history, as 500 members of The Grestest Generation die daily, which is 182,000 estate settlements per year!
Approximately $12 trillion dollars are being transferred to Baby Boomers, who are more philanthropic than predicted, thinking about their legacy, and hesitant to leave large sums of money to hears!
So many CEOs just seem to represent so many of our problems … all rolled up into a single person. Things like:
“I don’t like that.” (Mind you s/he knows nothing about “that.” But they don’t like it.
“Anyone can do fundraising. It’s like teaching, actually. We all went to school. I know as much as you do, Ms. Fundraiser.” (Protect us from those ignorant, disrespectful people.)
And on and on…
But let’s remember that we fundraisers actually have the responsibility to help facilitate them, enable them to learn and understand and and. Before we go off too far, look in the mirror first. I’ve encountered so many fundraisers who actually aren’t doing their jobs of explaining and enabling and facilitating and leading and guiding and….
Great list, Tom! Board members and CEO’s simply are not educated about fundraising. There is so very much they need to understand:
– fundraising actually is a profit center with ROI
– what donor attrition and donor retention really mean
– the fact that fundraising now has data to back it up (!!)
– fundraising is now a highly skilled and professionalized sector
– you don’t just go in and ask a major donor for a big gift
– you don’t do all the talking when you visit donors
– the importance of consistency in staff and fundraising strategies.
and my favorite:
– don’t make decisions about fundraising strategy based on your personal opinions and preferences!
Everything you, Gail and Simone said! Especially fact that fundraising is a BIG part of their job as CEO, as is partnering with the board and assuring they understand it’s also part of their job; then holding their hand to help them be up to the task.
Make required reading: the Underdeveloped report https://www.compasspoint.org/underdeveloped
and Sasha Dichter’s Manifesto for Nonprofit CEOs
https://sashadichter.files.wordpress.com/2008/10/manifesto-in-defense-of-raising-money_sasha1.pdf