Nonprofit Literature Blog

Psychology and Fundraising

Asking individuals for donations may be one of the more difficult parts of your job. You need to develop the interpersonal communication skills to effectively convey your organization's needs, and convince the potential donor it is a worthwhile cause to support. According to consultants Bernard Ross and Clare Segal, understanding the donor relationship at the psychological level may one of the keys to success.

In their new book, The Influential Fundraiser, Ross and Segal address a number of questions:

-What motivates donors? What factors may cause them to loose interest?
-How do you develop the confidence and positive state of mind that will assure donors?
-How can you use your body language to build rapport?
-How can we determine quickly whether your donor is a visual or auditory person?

In addition, Ross and Segal explain how fundraisers can deal with rejections, emphasizing that timing is important when assessing donors’ decision-making strategies.

Find out more in The Influential Fundraiser: Using the Psychology of Persuasion to Achieve Outstanding Results, published by Jossey Bass.

Nonprofit Collaboration

Nonprofits often partner with other groups to achieve mutual objectives more effectively and to make the most of limited financial resources. In addition, some funders may require grantees to work collaboratively. The next time you visit the Foundation Center, ask to see our collection of materials that will increase your understanding of various partnership opportunities. Here are several examples:

Books

Butterfoss, Frances Dunn. Coalitions and Partnerships in Community Health. 1st ed. San Francisco, CA: Jossey-Bass Publishers, 2007. xxv, 579 p. Call Number: 230 BUT
The step-by-step guide for developing partnerships to improve public and community health is written for seasoned professionals as well as novices. Discusses why partnerships are important and explains how to build and sustain them. Chapter 10 provides an overview on funding and resource development for coalitions.

Hoskins, Linda and Emil Angelica. Forming Alliances: Working Together to Achieve Mutual Goals. Saint Paul, MN: Fieldstone Alliance, 2005. viii, 96 p. Call Number: 609 HOS
Because more donors are looking for collaborative efforts among nonprofits, the book is addressed to both agency leaders and funders, explaining the alliance continuum, the challenges and pitfalls of collaborations, as well as the benefits. One chapter discusses means for furthering an existing partnership. Contains numerous worksheets, sample letters of agreement, and other helpful tools.

La Piana, David. The Nonprofit Mergers Workbook: The Leader's Guide to Considering, Negotiating, and Executing a Merger. St Paul, MN: Amherst H. Wilder Foundation, 2000. viii, 228 p. Call Number: 609 LAP MER
The initial chapters explain the different forms of mergers available to nonprofits; following this are steps for an internal assessment and for the process of identifying a potential merger partner. Typical problems, negotiating strategies, funding issues, and steps involved in implementation are explained. Appendices include various samples, such as ads seeking a partner, confidentiality agreements, and implementation plan.

Manley, Linda Schechter and Neil Stevenson. Building Successful Collaborations: A Legal Guide for Nonprofits. New York, NY: Lawyers Alliance for New York, 2007. 76 p.  Call Number: 609 MAN
The booklet helps nonprofits analyze the benefits and risks of collaboration. A due diligence checklist is included to help identify appropriate collaborators. The guide also discusses the lawyer’s role, the negotiation process, the written agreement, and collaboration management. The appendices contain sample agreements in the area of workforce development.

Ray, Karen. The Nimble Collaboration: Fine-Tuning Your Collaboration for Lasting Success. Saint Paul, MN: Amherst H. Wilder Foundation, 2002. x, 120 p. Call Number: 609 RAY
Though collaborations can be complicated, the advice provided by the author offers a method--based on three precepts--for improving the flexibility and efficiency of these relationships. Includes sample documents for governance arrangements.

Articles

Ebaugh, Helen Rose; Janet S. Chafetz, and Paula Pipes. “Collaborations With Faith-Based Social Service Coalitions.”  Nonprofit Management & Leadership, vol. 18 (Winter 2007): p. 175-91.
Presents findings from the first national survey of faith-based coalitions in the United States. The authors explore how faith-based coalitions collaborate with other faith-based groups, as well as secular organizations.

Haider, Don. “Uniting for Survival.”  Stanford Social Innovation Review, vol. 5 (Summer 2007): p. 52-5.
The case study examines the ways that four Chicago-area cancer support centers collaborated before forming a fifth nonprofit to leverage their resources.

Hung, Priscilla. “Time to Merge? Fundraising and Financial Implications.”  Grassroots Fundraising Journal, vol. 28 (January-February 2009): p. 4-7.
Hung elaborates on seven lessons that were learned in negotiating the merger, over two years, of the GIFT organization with Grassroots Fundraising Journal.

Wei-Skillern, Jane and Sonia Marciano. “The Networked Nonprofit.”  Stanford Social Innovation Review, vol. 6 (Spring 2008): p. 39-43.
The article discusses the way that small nonprofits can accomplish as much as or more than their larger peers by building networks with other like-minded organizations. Emphasizes that in order to build capacity in this way, a nonprofit must focus on its mission rather than its organization, and on serving as a node rather than a hub. Provides detailed examples of nonprofits that have succeeded through partnerships with other nonprofits, local governments, and additional institutions.

A listing of collaboration resources on the Internet is available on the Lodestar Foundation website.

Grantmakers and the Economic Crisis

Foundations that are developing strategies to support nonprofits and families through the current downturn can take a look at the Winter 2008/09 issue of Responsive Philanthropy.

In one article, Emmett Carson, president and CEO of the Silicon Valley Community Foundation, describes a comprehensive plan for tackling the region’s economic challenges. The foundation’s strategy, which includes measures to integrate immigrants and promote financial literacy, was based on feedback from a series of community discussions among nonprofits, donors, grantees, and government representatives.

In another piece, Tim Delaney, president and CEO of the National Council of Nonprofits, takes a look at the difficulties that nonprofits are facing and suggests ways that foundations can help. For example, grantmakers can support meetings that promote collaboration and the exchange of ideas. Delaney also explains how foundations can leverage their funds by supporting and teaming up with infrastructure organizations.

Responsive Philanthropy is publication of the National Committee of Responsive Philanthropy and is available for reference at the Foundation Center library/learning centers.

Individual Giving Forecast (Schervish and Havens)

Charities are anticipating declines in giving this year as a result of the weakening economy. Will the declines be severe?  An article in the January 2009 issue of Trusts & Estates puts our current conditions in perspective with an analysis of historical data. Researchers John J. Havens and Paul G. Schervish look at one scenario: What if the stock market stayed at 30% below the levels seen at the beginning of 2008?

Based on their examination of previous recessions, Schervish and Havens forecast a 3-4% decline in individual giving in 2008 and a drop by the same amount in 2009. One key point in the article is that wealth does not decline at the same rate as the stock market, especially when households are have diversified portfolios.

Read more about their analysis in their article “Giving in Today’s Economy: What Can We Expect?”

Reminder: Visit our Focus on the Economic Crisis web site regularly for related resources on this topic.

Which Nonprofit Topics Are You Interested In?

As we take a look back at Nonprofit Literature Blog in 2008, the most popular entries deal with these core areas:

Fundraising

Nonprofit Management

Corporate Philanthropy

While we will continue to blog about these key themes, we plan to expand the scope of our coverage to other topics. To help us identify additional resources that are most useful for you, take a brief moment to vote in our online poll (see sidebar to the right).

Thanks, we look forward to hearing from you!

-Jimmy Tom

Human Resources Administration for Smaller Nonprofits

Smaller organizations, often focused on their missions and programs, may sometimes neglect key human resource functions. Groups may lack the staff with the expertise to deal with compensation management, benefits administration, or compliance issues.

For nonprofits considering assistance from an external provider, have a look at the article “When is HR Outsourcing Right for Your Organization?” from the Fall 2008 issue of Nonprofit Quarterly. The article provides examples and includes a listing of outsourcing companies.

Another option may be for organizations to share human resources staff. A well-publicized example from a few years ago is the Human Resources Collaborative, which has received an award from the Pittsburgh Human Resources Association for its service model. We may see more of these partnerships, as organizations seek to reduce costs in this difficult economic environment.

What are your experiences with HR outsourcing or collaborations?

-Jimmy Tom