Tag Archives: donor-centric

Successful Nonprofit Arts Organizations, Like Successful Buildings, Depend on Successful Hierarchies

Gaudi

Level One:

Bricklayers.  Carpenters.  Stagehands.  Electricians.  Actors.  Musicians.  Painters.  Singers.  Writers.

Easy to find hacks.  Difficult to find experts.  Project-based.

 

Level Two:

Foremen.  Department heads.  Designers.  Curators.  Musical directors.

Small universe of successful ones.  More skills required.  Still project-based.  Work toward a larger goal than Level One, namely a finished piece.  Excellent collaboration skills.

 

Level Three:

Contractors.  Directors.

Smaller universe still.  Hire and manage Level One and Two (no requirement to perform at their skill level).  Work toward a slightly larger picture, although still project based.

 

Level Four:

Architects.  Executive/Artistic/General/Producing Directors.

Scarce universe of specialists.  Determine “what.”  Hire Level Three – several Level Threes, in fact.  Understand projects, themes, and cohesion.

 

Level Five:

Owners.  Boards.

Tiny, zealous universe.  Hire Level Four.  Determine “how.” Has personal stake.

 

Level Six:

The Community.  The Mission.

Top of the hierarchy.  Determines “why.”

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Feedback from You (yes, you): 9 Words That Describe the Nonprofit Arts Issues That Are Placing You at the End of Your Rope

rope

This blog, as most are, is pretty much one-way.  I share experiences, advice, consultation, and observations; you read ’em.  I can discuss 1,000 issues that affect nonprofit arts organizations.

But that’s me.

What keeps you up at night?

What concrete issue (not just “there’s no funding for…”) is fraying your rope?  Or better, what issues are figuratively tying a noose around the end of your rope?

Here’s your assignment.  In 9 words (no more, no less), write that issue and send it to info@137words.com.  That’s it.  Beginning in August, we’ll periodically take each issue and I’ll give my take.  Then we’ll open up the discussion to everyone who reads 137 Words.  Let me know if you’d like your name in or if you’d like to be anonymous.  And if you’d like my help privately, let me know that, too.

Nonprofit Arts Strategic Plan Consulting: What You Say and What They Hear

money

Consultant:  A strategic plan should generally include the following sections:  mission statement; outline of goals, objectives, and activities; assessment of current resources; and strategic analysis.

  1. All nonprofits are mission-driven; take care to define your mission clearly.
  2. Having activities or programs clearly defined will help your nonprofit communicate with the public.  Remember that activities and programs flow from your mission.
  3. Assess all of your resources — including money, people, expertise, skills, and other intangibles.
  4. “Strategies” are practical ideas about how to make the best use of your resources to achieve your goals.

Them:  Blah-blah-blah MONEY, blah-blah-blah GOALS.

Result:  A “strategic plan” proclaiming the need for more money with no action plan (except, of course, to raise money) and no justification (except, of course, to raise money).

In answer to your next questions:

  1. Way too often.
  2. They blame the consultant.

Talk to Me Like I’m 10: a Lesson in Long-Term Planning for Artistic Directors and Board Chairs

talk to me like I'm 10.jpg

Does long-term planning cause a rift between your artistic director and those other people?

Does it cause discord between your board chair and those other people?

Seen all the time among arts charities:  carefully (and successfully) executed annual development plans reduced to rubble after the board institutes a high-priced capital campaign.  The capital campaign sucks up all in its path, causing 5 years of stakeholder repair.  Indispensable Chair happy.  Staff leaves.

Artistic directors substituting their taste for vision and their personal and professional relationships for core values.  Idiosyncrasy obviates mission.  Indispensable AD happy.  Board leaves.

Both cases: company imperiled, stakeholders leaving.

Time to create an action plan, written at a 5th grade level.  Make it about impact rather than income.  Test the theory that your arts nonprofit is indispensable.  Make sure that your most important stakeholders don’t leave.

Nonprofit Arts Board Members, Executive Directors, and Staffs: Has Your Board Been Assimilated? Have You?

BORG-CUBE

Board membership for a nonprofit arts organization is a privilege. It requires commitment of time and money.  It requires the urge to change things for the better.

It’s not for self-aggrandizement.  It is not about being thanked endlessly.  It’s not about banquets, galas, and being fed.

It’s a job.

Group thinking can be inspirational, but “groupthink” can poison your organization’s health.  When your board only votes unanimously, for example, or the newly-approved mission is just reverse-engineered to current activities and reduced to pabulum, you may no longer have a board.  You may instead have a Borg.

Borg members wait for orders.  They don’t debate.  Resistance is futile.

The Borg is powerful.  Borg Presidents lead by autocracy.  Borg Queens (often founders) drive staff away by insisting the organization’s activities revolve around them. Borg Drones atrophy.

Board or Borg?

Nonprofit Arts Executives: After the Ask (for anything, actually), It’s Fast “Yes,” Slow “No”… Try a Slow “Yes” Instead

nofrog

If you don’t hear right away, it’s probably “no.”

That goes for asks, offers, hiring, and anything else you require.

And that goes for you, too, when your stakeholders ask, offer, hire, and anything else they may require.

Reflection is the predictable path toward rationalization to the “no.”  This is why the phrase “upon reflection” is almost always followed by a version of “we’ve decided not to change.”  After all, as a rule, it’s easier not to change than to take a risk.

Many arts charity executives preach the glory of “managed risk” (an oxymoron, of sorts) and value fiscal responsibility above social impact.  To be clear, social impact is central to the success of the mission; fiscal responsibility is a valuable business practice.

If “yes” leads to greater impact, then stop saying “no”… especially upon reflection.

Artists and Non-Offensiveness: The Tyranny of Over-Sensitivity, Feelings, and Participation Trophies

safespaces

There’s a troubling trend.  There’s an absurd unwillingness to offend that seems pervasive among arts creators.

Not that creators are creating “Pleasant Art,” per se.  Writers and artists are creating lots of work that is designed to make audiences uncomfortable.  Which is good.  The work may be about single issues and not terribly complex, but it’s good.

However, there are too many artists raised in atmospheres where everyone wins, even when they lose.  In the name of inclusion and self-esteem, they live in a world where, like toddlers, “feeling bad” is simply unacceptable.

They believe they’re special.

To these artists:

  1. You are not special.
  2. You do not deserve success.
  3. Sometimes you lose.

It’s what you do with that information that defines you.

If you believe that nobody should ever have hurt feelings, you’re not doing your job.

Face-palms in the arts world: Oh, somewhere in this favored land the sun is shining bright; the band is playing somewhere, and somewhere hearts are light

Head in Hands

Somewhere…

  • A managing director is face-palming because the budget draft is still a departmental wish list;
  • A marketing director is face-palming because the artistic director decided that he knew more about marketing than the marketing director;
  • A development director is face-palming because the board chair has fashioned a multi-million dollar “capital” campaign (actually, a “get-out-of-debt” campaign) with no feasibility study, no regard to the annual development campaign, and no accountability to anyone else;
  • An artistic director is face-palming because the plays she wants to do don’t jibe with the mission of the company;
  • A board member is face-palming because every meeting is about reporting, money, by-laws, and the gala;

And somewhere, performing arts audiences and constituents are collectively face-palming, hoping against hope that the arts folks in their region remember that for them, it’s about the art.

Life on the Unraveling Nonprofit Arts Fringe: Why Hiring Experience and Guile Trumps Everything Else

Actor Hugh O’Brian is said to have coined “The 5 Stages of an Actor’s Career;”

  1. Who is Hugh O’Brian?
  2. Get me Hugh O’Brian.
  3. Get me a Hugh O’Brian type.
  4. Get me a young Hugh O’Brian.
  5. Who is Hugh O’Brian?

We’re in contact with hundreds of highly-experienced, resilient people who have made a career in the arts – and they’re having difficulties getting back into the field.

Some of it is ageism. Boards use headhunters to find smart young guns to lead departments or organizations — only to find that instead, they’ve hired brilliant 2-year placeholders with few people skills, entitlement issues, little flexibility, and quick parachutes.

Studies show those >50 stay longer than those under <40, are more productive, have better improvisational skills and flexibility, and are likelier to bring success.

Forget headhunters.  Do your own search.  Hire someone better than you.

Nonprofit Arts Season Planning: Remember 2 Things

MEMEMEMEME.jpg

Thing One:  Plan your programming based on mission, specificity, style, and audience orientation.  That last bit is the most important.  Just like the movement toward donor-centric development activity (“What do you want?”) has proven more successful than self-facing activity (“Here’s what we offer.”), audience-oriented experiences that reflect an organization’s expertise (“This is what we’re famous for.”) have proven more successful than vanity programming (“I like this and you must, too.”).

Thing Two:  “Seasons” are an artificial construct.  In the arts, audiences don’t really care.  (In sports, they do, because championships constitute the end of a season.)  The construct helps to create a small clustering of performances or exhibitions for fans to purchase as a marketing tool.  Programming toward a seasonal “arc” is an imprudent and arrogant exercise that implies your attendees don’t patronize any other arts organization.

What Donors Want to Know About Your Arts Charity…and You (137 Words’ Greatest Hits)

Why do you do what you do?

Donors are not stupid. They already know WHAT you do. When you can make a compelling case WHY you do it, you’re on your way to a good relationship.

How is your process better?

Show why you provide great services.  Don’t cheap out on those services just to serve more people.  Persuade donors that you provide better value than they can.

Why you?

Why are you more deserving than somebody else doing a similar thing? With malice toward none, distinguish yourself through contrast and differentiation.

What do I get out of it?

Learn what drives your donor before you ask them for money. Know if they want tangible recognition before giving it to them, for example.  And thank them personally whenever possible (not via mail merge – in your own handwriting).

Organizational Health Can Be Measured by the Number of Donors Who Don’t Have to Give to Your Arts Organization

sparse crowd

How many non-board (or non-ex-board) members give to your arts organization?

How many non-staff members?

How many non-parents (if you do activities that include children)?

How many people who don’t attend your gala or other special event?

How many people who refuse donor benefits?

In other words, how many people donate simply based on your mission, programming, and activities; or by trusting a stakeholder of your mission, programming, and activities without expectation of a return?

Count the households of donors who donated all on their own.  If the number is small, create a special campaign to draw them in, even if the donation is a simple $50.  And thank them – they’re giving for no reason at all, except for unconditional love.

Ultimately, the health of your organization is measured by the number of those who unconditionally support it.

Don’t Be a Company with a Mission; Be a Mission with a Company

cart-before-the-horse

I’ve been reading a number of articles discussing arts charity marketing as a whole-company tool, not a ticket-sales tool.  Here’s one from TRG.

I was disappointed by Advancement Northwest’s Major Gifts Symposium keynote speakers’ idea of including donors within a charity’s mission.

I have been met with resistance from key artistic and production personnel who have been taught that “we do the art and everything else is a necessary evil.” (Actual quote.)

It’s just human nature for stakeholders to overvalue their contribution. Board members do it. Employees. Volunteers. Audience. Artists. Donors.

Here’s the thing: arts nonprofits that are created to solve a societal problem don’t have these issues.  These issues fester when the company is created prior to creating (and rationalizing) a mission.

Create your company as an answer and horses and carts will sort themselves out.

There’s Not An App for That

I want to donate to your theatre, not your CRM

There are an endless number of costly, effective CRM systems for the arts.  One costs hundreds of thousands of dollars and it’s superb at what it does.

One might say, “It had better be.”

Before that expensive, expansive piece of software, there were others.  Some great at some things, some at others.

Not one of these pieces of software ever raised a dime.  People do that.

Not one of these pieces of software ever performed, exhibited, or created a compelling artistic experience.  People do that.

Not one of these pieces of software ever governed, advocated, cajoled, or counseled. People do that.

Before CRMs that cost various ulnae, fibulae, and tibiae, there were inexpensive off-the-shelf database software solutions.

Before that, we did it all on paper.

Millions attended.  Millions still do.

And the best relationships are still person-to-person.

Raising money is not Begging, It’s Sharing Joy with Someone Who Might Benefit from Joy in Their Lives

Valentines-Day-couple

If you’ve ever dined out at a remarkable restaurant with a significant other, you know how to raise money.

You’ve tasted the Cabernet, the risotto, the chocolate soufflé.  Inevitably (unless you’re an ass), you’ve offered a taste to your partner.  You’ve chosen to have less of the valuable thing you love, but the increased joy of your partner provides impact to an outcome that shows that “spending” that taste was worth the return.

It’s a somewhat simplistic metaphor, but it’s awfully close.  Joy in the works of nonprofit arts organizations is not an outcome, but the impact that leads to that joy is.  And when you are able to catalyze your impact into a persuasive story – with quantifiable outcomes – then you’re raising money.

But if your partner hates chocolate, there’s nothing you can do.  Remember that, too.

Aphorisms for the Modern Arts Charity Leader

Fortune Cookie

If it ain’t broke, break it. Then fix it.

You only read books in one direction.

Your legacy ends when you leave.

Institutional survival is not the goal.

Missions are gods; mission statements are bibles.

The best leaders are the best assistants.

Learn why before you continue.

Success is measured by impact, not excellence.

“Fiscal responsibility” is a business practice, not a mission statement.

Volunteers are employees who work for $0.

If your people are averaging 50+ hours a week, you’re failing.

Always use transitive verbs in your mission statements.

The cool kids are back in high school.

Sharpen your point of view; that’s why it’s a point.

Be completely, spectacularly wrong.

Treat candidates like employees.

Treat employees like human beings.

Treat human beings as though you are one.

Fire yourself regularly; interview yourself for your job.

Be funnier.

In Charities, The Chicken Came First. There. Settled. (But Each Chicken has the Ability to Hatch a Whole Passel of Eggs.)

Super_Chicken_300

When communities are in trouble, specific needs arise. Charities embark on social experiments aimed at addressing issues not easily solved when profit is king.

In the arts, we tend to loudly cluck about indirect results. Economic impact. The “Anti-Gang.” Higher math scores…happy by-products, but not arts’ reason for being.

But do regions address their specific needs – or even their happy by-products – when dominated by single museums, ballets, operas, theaters, or symphonies? Doesn’t it really take hen-houses full of them to increase a region’s vibrancy?

To achieve a community’s cultural success, dominating arts charities might consider the counter-intuitive notion of creating their own competition, risking their own vibrancy for the community’s sake. It’s certainly better for the region to incubate dozens of arts charities rather than one, especially when those “chicks” do the same once they’re able.

I’m baaaaa-aaaaack — “He who’s down one day can be up the next, unless he really wants to stay in bed, that is…”

Fallon

For 8 months, I’ve been temporarily working in Detroit, mixing Cervantes (above) with Kerouac (below). Detroit was fascinating.

Where to go next is the issue.

I’ve studied nonprofit arts cultures across the country and (so far) settled on regions surrounding Seattle, Portland, Chicago, and Washington, DC.

The house and TK are in Seattle. TG is in Detroit. I’ll give you a great deal on the house, but not the others.

Criterion #1: When a region’s arts community is comprised of a whole bunch of discrete mission-based organizations – rather than everybody doing everything – then that region’s organizations succeed.  That’s for me.

Criterion #2:  When a region’s arts community is comprised of a precious few large arts organizations, those organizations are doomed to irrelevance.  Not for me.

But my mind wanders…

“What’s in store for me in the direction I don’t take?”

Good and Bad in Charity Funding

Milk, Nicolas Cage’s acting; mugs saving trees or cups saving wash water; bottled water — good or bad?

Good:

Unrestricted funding.

Ice Buckets/Challenges (unless you’re Charity:Water. Then bad.)

Matching gifts.

Nihil Pro Quo.

Public funding.

Multi-year gifts.

Endowments that cover >20% of the organization’s annual budget.

In-kind gifts that are already in the budget.

Thousands of low-level donors.

Dozens of high-level donors.

100% of trustees/board members donate.

100% of trustees/board members donate one of the 3 highest gifts they give all year.

100% of employees want to at least donate $1.

Bad:

Funding restricted to programs unsupported by the mission.

Funding restricted to vanity projects.

Quid pro quo.

Corporations choosing charities via popularity contests/computer click-offs.

Large donations that overly entitle either donor or recipient.

Endowments that cover <20% of the organization’s annual budget.

Panicky, deleterious “Going-Out-Of-Business-Unless-We-Raise-Millions-By-Tuesday” funding schemes.

Playing Chicken – For Arts Charities, Not a Game for the Faint of Heart, Because, Well, It’s Impossible and Doesn’t Make a Compelling Case

I read an article recently called A Day Without Art. Stephanie Milling suggests scenarios in which the arts hypothetically disappear for a day. But hypothetical threats are terrible tools of advocacy.

We can’t not have art. Look at your coffee cup, even if it’s paper. It has form, function, and looky there, art on it.

Here’s the ant at this particular picnic:

If art is ubiquitous, does it have value?  Why pay for it?

Rather than forecasting the impossible – a day without art – could we better spend our energies measuring our specific organization’s specific outcomes and advocate by trumpeting those to the world?

No one responds well to this particular game of chicken.  It’s akin to the idea of eating your kids – it may solve the messy bathroom problem, but it’s neither realistic nor sustainable.

Have You Heard? I’m a “Bomb-Throwing Provocateur!” Who’d Have Thought an Artist Could be One of Those?

Famous Provocateurs

A few posts ago, we talked about the enmity brewing between the arts charities and the rest of the charity sector. That many US arts charities concentrate on the quality of their art while the rest of the sector concentrates on outcomes. That arts charities are pretty much the only part of the charity sector in which the donor also uses the charity, exacerbating the arts’ reputation as being elitist.

Responses were 50-50. Those that agreed tended to come from arts marketers and fundraisers while the rest came from artistic directors and producers. Break it up…nothing to infer here.

Funniest comment was from a 36-year arts veteran decrying elitism; it’s part of the title here. She could have said, “You’re an asshole.” Or “jerk.” Or just plain “wrong.”

I might be all those things.  After all, I’m an artist.

Successful Trusteeship, or “Isn’t Writing a Big Honking Check Enough?”

Good board members:

  • aren’t ambassadors. Ambassadors wait for people to come to them. They’re zealots. They zealously get donations and zealously get new board members.
  • don’t try to get. They work together and with staff and they get.
  • personally donate among their three largest monetary donations that year. Not from their company…from them.
  • are forensic analysts, (not governors). Remember, the bottom line is “Are we living our mission?  Is the mission working?” They see to it that it does, regardless of the financials.
  • insist that board meetings are too important to be reporting vehicles. Productive monthly board meetings can be like having twelve mini-retreats.

Think of it this way: if each board member’s consulting rate is $100/hour and your charity has 20 board members, do you want to spend $2,000/hour talking about the past or the future?

Stepping in Moral Quicksand: When a Horrible Person/Company Gives to Your Nonprofit

I was going to write about all the charities to which Donald Sterling donated.

I was going to ask if the standards of the organization should stand up against the horror of the donor.

After all, UCLA gave back $3 million of Sterling’s money.

But UCLA, where Jackie Robinson went to school, has only 660 African-American male students (out of 20,000 male students), 65% of whom are scholarship athletes.

Then I was going to ask about donations from companies that peddle “evil” – tobacco, liquor, oil, etc.

But then I thought about individual donors’ morals. Not just unethical oligarchs like Henry Ford, Rupert Murdoch, John D. MacArthur, or even Sterling.  What about all the philanthropists whose fortunes were built on a million broken backs?  Or a few? Or one?  And I thought about my experiences with morally corrupt donors.

I’m sinking.

Help.

 

Even Endowments Don’t Want You to Have an Endowment

Went to a foundation’s financial conference a few years back.  Before the economy went south.

The COO of the foundation said (a direct quote), “If you’re not pulling 20% of your annual budget from your endowment roll-off, then you probably shouldn’t have an endowment.”

And now, the math:

Assuming the annual payment is 5%, your endowment would have to outnumber your annual budget by a ratio of 4-1.

Endowments are not reserve funds. They are not liquid. They have little to do with an organization’s stability.  Often, the endowment campaign is successful, but the organization teeters on bankruptcy in vast oceans of red ink.

Endowments do not prove an organization’s worth, nor does it assure its future. Although, I suppose, it does offer a bankrupt organization the chance to pay off its bills before closing for good.  So there’s that.

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