Tag Archives: fundraising

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.

How You Can Solve Diversity With Your Nonprofit Arts Organization!

race

You can’t.

Arts organizations challenge, reflect, and engage.  They don’t solve.

And remember, race is only one small bit of cultural diversity, not all of them.  Just as the opposite of love isn’t “hate,” but “indifference;” the opposite of diverse isn’t “white,” but “homogeneous.”

I read a political blog recently about the Democratic Party presidential race.  What troubled me were these words:

“What I’m crossing my fingers for is that in ten years or so we’ll get… a young,
charismatic democratic socialist who runs for president. (Preferably this
candidate would be a woman or a non-white person or, ideally, both.)”

Isn’t that parenthetical statement just as intolerant as one where “not” had been inserted after “would?”

Diversity isn’t only about race or gender or any of myriad other categories.  It’s about power, shared equally, with specific impact.

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.

If You’re _____________, Then Your Nonprofit Arts Organization is Probably Unsustainable (with apologies to Jeff Foxworthy)

Single woman sitting lonely in an empty cinema or theatre

  • not paying your executive director because s/he is independently wealthy and actually donates 6 figures to the company;
  • working 70 hours/week every week and see nothing wrong with that;
  • hiring part-time employees and expecting them to work full-time free of charge;
  • of the belief that your employees are less important than your equipment or your building;
  • insisting that anyone besides your marketing director is the final word on your marketing;
  • keeping your artistic director away from donors because s/he doesn’t know how to interact with them;
  • in the mindset that any of your people are more important than any other of your people;
  • playing “Dialing for Dollars” to meet your payroll;
  • arguing that “keeping the base” is more important than expanding the audience, while…
  • thinking that you can do both;
  • sweating a little right now after reading this post.

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.

A Mailing from Your Charity, or An Over-Solicitor’s Rare Christmas Miracle

Xmas Mail

T’was the month before year’s-end; the devo department

Was sending appeals to all homes and apartments.

The director was sweating like Richard M. Nixon

For fear that a failure would cause crucifixion.

The ED was clueless and screaming for money

And the board chair was gone, yachting to Bimini.

The donors were asked to contribute all year.

Each month — no each week! — it’s all they could hear.

“Give now” and “Give now” and “Give now” once again.

They were tapped just for money and not for their ken.

When all of a sudden there arouse such a ruckus

A donor had given fifteen thousand buck-us.

The annual giving director said “WHEE!

We’ll hit all our goals!  And they’ll promote me!”

The year-end was saved and Christmas was merry,

Now it’s time to mail the appeal for January.

The Christmas Arts Season is Almost Here: Time for Much Mooing and Missions Drifting Higher than the Plowed Snow Blocking your Driveway

cashcow

Once there was a theatre company that produced new plays.  However, during the holiday season, they produced “A Christmas Carol.”

Foundation leaders that supported this company asked one day, “Why do you produce ‘A Christmas Carol’ when it has nothing to do with your mission or the rest of your activities?”

“Because,” said a truthful board president, “it’s our ‘cash cow.’ And we need to milk it for all its worth to pay for everything else we do.”

“Oh,” said the foundation leaders.  “Does it?”

“Yes,” said the president.  “It’s a good thing, too.”

The leaders huddled together.

“That’s wonderful,” they said.  “It follows, then, that we can now fund companies whose mission aligns with ours.  With your ‘cash cow,’ you don’t need us.  Thank you!”

And then they cut funding to the theatre company to zero.

Differentiating Between What’s Great About the Arts and What’s Great About YOUR Arts Organization

economic impact argument again eecard

You can look anywhere to discover what’s important about the arts.  Try here, here, here, here, and here for starters.

The key to “sustainability” (which, as previously written, is not “survival”) is proof that your particular arts charity is achieving specific community goals.

Each social service and social justice charity measures its results toward the execution of their mission.  Those results have a direct link to funding and community support.  Your arts charity, then, must find results that apply specifically to your organization.

Charitable results cannot be measured by paid attendance or positive economic impact.  Those are commercial results and byproducts — data used by sports teams to get cities to build them stadiums or by entertainment conglomerates to allow regions to let them build casinos.

So what makes your arts charity charitable?  Answer that and you’re 99% there.

The Psychology of Being Last and 4 Other Ways to Level the Board Meeting Room Table

boringspeechBoard meetings are often reporting festivals.  Endless polite reports reminiscent of “what I did last summer” essays from the first day of elementary school.  It’s too bad.

Calculate the hourly consulting rate of the people in the room (for example, 15 board members x $100/hour = $1,500/hour).  At $1,500/hour, do you want to talk about the past or the future?

Board members, inside the meeting room…

  • Never do what the last person in the conversation advocates. It’s a trick manipulative people do.
  • Consensus is not unanimity; votes needn’t be unanimous. After the decision is made, however, everyone needs to back it.
  • No devil’s advocates; take responsibility for your disagreement.
  • Read the ED’s report beforehand. EDs: issue your report at least a week before the meeting.
  • Your ED is not responsible for writing and executing your strategic plan. You are.

Quantifiable Outcomes and Social Impact Applies to All Nonprofits – Including Arts Organizations

if-quantifiable-outcomes-arent-important-then-i-can-fire-my-whole-development-team-and-just-do-what-i-want-yay-me-7dc56

Oh, I can hear it now.

“See?” they’ll say.  “People don’t care about outcomes when they make donations.  The Washington Post said so.  Ergo: we don’t need outcomes.”

To come to that conclusion is just whistling past the graveyard.

Remember these hard facts:

  • The arts are not mentioned in section 501 (c) (3) of the US tax code (you know…the law). The arts fall under “charitable organizations,” which require a measure of public good.
  • Using the arts as a cover for an individual’s vanity vision is fine, as long as it’s a commercial venture. Once you pull the taxpaying public into it, ethics demand an outcome.
  • The arts can be transformative, both on a commercial and nonprofit level. What differentiates the nonprofit is that a measurement of positive change of the human condition is necessary to rationalize funding.

Just Because Someone Repeats It Doesn’t Make It True: Nonprofit Arts Organizations Must Serve a Charitable Purpose or Die Trying

Crossing fingers

Supposedly, Martin Van Buren wrote to Andrew Jackson imploring Jackson not to approve the railroads for fear of the loss of the canal system, citing mass unemployment, the closing of boating businesses, and the fear of trains moving at breakneck speeds of 15 mph.  It never happened.  I checked.

In W. P. Kinsella’s Shoeless Joe, “If you build it, they will come” was actually “If you build it, he will come” and referred to the farmer’s father.  Not “If you build an arts center, thousands of new patrons will come, regardless of programming.”  Read the book.

There is another fabrication that arts organizations are nonprofits simply by being arts organizations.  It’s not true.  I checked.

All over the US, there are myriad arts nonprofits that don’t serve a charitable purpose.  Rightfully, foundations are noticing and diverting funds elsewhere.

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.

Omnibus Festa, Omni Tempore: Raising Money to Spend on the People Who are Raising Money to Spend on the People Who are Raising Money to Spend on the People Who are Raising Money…, etc.

Eating_money_large“You scrimp and save and beg and borrow and where does half the money go?  Down the throats of the organizing committee.”  — Athene Seyler, “Make Mine Mink”

The 1980s and 1990s were the golden years of galas for arts charities.  Mostly because there were fewer of them.  But also because high percentages of the money actually went to the organization.

Today, putting on massive galas to feed donors – netting scant revenue to the charity but plenty of “goodwill,” “friend-raising” and resume padding – are often construed as elitist, inefficient modes of raising income.

One annual gala, or perhaps groups of organizations sharing a larger gala and splitting the receipts, might thin out the calendar and make them more financially effective.  Hundreds of hours of employee and trustee resources might well be better spent on relationship-building, not napkin swans..

Rancho Santa Fe Dinosaurs and Behemoth Nonprofit Arts Organizations

drought3
Washington Post reported that some uber-wealthy Rancho Santa Fe, California dinosaurs refuse to conserve water in the worst drought in California history.  Consumption there is up 9% (the only area in California increasing consumption), because, as one resident put it:  “We should not be forced to live on property with brown lawns, golf on brown courses or apologize for wanting our gardens to be beautiful.”

Why?  See below for the answer to “Why do dogs lick their genitalia?”

The nonprofit arts industry deserves support.  No question.  “Arts and culture policies and programs increase economic development in states by attracting businesses, creating new jobs, increasing tax revenues and promoting tourism.”  National Conference of State Legislatures

But when “Indominus rex” institutions drink up inordinate percentages of funding (larger than their share of the market), is it just…

“because they can?”

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