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Guest Post: Fundraising Thoughts from a Financial Advisor – An Interview Part 2

by Greg Ritter on August 18th, 2010
Posted in: Uncategorized - 1 Comment »

Guest Blog Post: Yvonne Hundshamer

Yvonne Hundshamer is the founder of Blue Grotto Inc., a Minnesota business that works with organizations to document culture and values, celebrate milestones and articulate vision. As a corporate history and culture consultant, she has directed both the research and project management on client projects including: 3M, Despatch Industries, Medtronic and National Car Rental. Before becoming a self-proclaimed ‘corporate anthropologist,’ she spent six years in the communications office of Minnesota Governor Arne Carlson.

Guest Post: Fundraising Thoughts from a Financial Advisor – An Interview Part 2

By Yvonne Hundshamer

Please click here to read the part 1 of this post.

Each time I hear you speak about Allodium’s nonprofit clients, I am impressed with your proficiency and knowledge of the nonprofit field. How have you built that expertise?

Our financial advisors have extensive experience working with both individual and institutional investors.

Individuals are philanthropic, and they think about giving. Nonprofit institutions think about donors and receiving. If you can look at it from both sides of that same coin, you understand the connections between donor intent and a nonprofit’s mission.

When those align, that’s when a nonprofit gets gifts. In my twenty years of financial experience, I know that the really big decisions individuals make, they make based on their core values. Organizations, similarly, are driven by a mission and set of core values.

An individual investor who has taken care of their priorities – put their kids through college, taken care of their retirement – may then turn their attention to charitable giving. They get very values-oriented, and become increasingly thoughtful about how an organization fits their values before they make major gifts, whether through planned gifts or campaign contributions, like a capital campaign.

How can a nonprofit be more strategic about their development efforts?

Personally, I am very planful and strategic. So, things like planned giving make a lot of sense to me. Estate planning makes a lot of sense to me, retirement planning makes a lot of sense to me.

We have seen a trend in development – nonprofits are becoming more knowledgeable about the importance of planned giving and that donors want to do more than simply write a check.  So the idea of estate planning, and planned gifts and trusts, is becoming far more important

It is all about planning. Investors make plans. They make estate plans, retirement plans, etc. They think ahead five or ten years and make plans. Organizations need to emphasize the strategic planning element of their development efforts, and how that dovetails with donor values.

Why do you think values are so important to the development-philanthropy relationship?

Donors make decisions based on their values. The larger the financial amount, relative to their financial situation, the greater likelihood it will be a values-based decision.

If you asked me for $100 for your organization, I might give you $100 because I’m trying to be nice to you. But, if I have to decide how to carve up a $10 Million estate between three organizations when I die, I’m going to think about what three organizations are the most important to me and my life, and what I want to leave as a legacy. Those are going to be values-based decisions, not seat-of-the-pants decisions. They will be very values driven.

People tend to go to their core values when they are forced to make hard decisions. In periods of stress or duress, you’re going to revert back to your core values. And there are different sets of values that drive people’s decisions.

You’ve talked about converting that $100 donor into a significant or a lifetime donor. What do you think nonprofits can do to help make that conversion in their donor base?

I think the most important thing is for organizations to develop a relationship with donors – relationships that enlighten the donors about how the organization’s mission dovetails with the donor’s core values. The better that the organization can get at that enlightenment of the donor, the larger the gift they can achieve. Or the larger share of the wealth from that donor.

It’s all about enlightening the donor about what the true mission of the organization is, and connecting it to the donor’s core values.

Nonprofits also have an opportunity to demonstrate their own strategic map to donors– for growth, or a narrowing of focus, for improvement or delivery of service, even fundraising strategies. Donors of large gifts want to know that you, too, are being strategic in your stewardship of their gift.

Sometimes it’s a chance to more deeply engage a donor in the organization. One organization I think does a good job is St. John’s University in Collegeville, MN. They often invite alumni to give counsel on a specific issue. For example, if they want to build a new library, they include donors in the discussion on their approach to launch such a major capital campaign.

Getting donors involved in that strategic planning process engages them more deeply with the organization, and reminds them how much they value the organization and its mission. Increasing their commitment to the organization philosophically will inevitably increase their commitment to the organization financially.

David Bromelkamp is President and CEO of Minneapolis-based Allodium Investment Consultants, an award-winning independent investment advisor. Contact him at 612.230.3702; dbromelkamp@aicria.com.

Guest Post: Fundraising Thoughts from an Investment Consultant – An Interview Part 1

by Greg Ritter on August 18th, 2010
Posted in: Fundraising, Planned Giving - 1 Comment »

Guest Blog Post: Yvonne Hundshamer

Yvonne Hundshamer is the founder of Blue Grotto Inc., a Minnesota business that works with organizations to document culture and values, celebrate milestones and articulate vision. As a corporate history and culture consultant, she has directed both the research and project management on client projects including: 3M, Despatch Industries, Medtronic and National Car Rental. Before becoming a self-proclaimed ‘corporate anthropologist,’ she spent six years in the communications office of Minnesota Governor Arne Carlson.

Guest Post: Fundraising Thoughts from a Financial Advisor – An Interview Part 1

By Yvonne Hundshamer

As nonprofits become more knowledgeable in the areas of planned giving, they are all trying to better understand the process donors go through in deciding how they want to allocate their estates.

According to David Bromelkamp, President and CEO of Allodium Investment Consultants, his team takes their clients through a detailed planning process as they prepare them for the future. Many of Allodium’s clients are philanthropic, and take their giving decisions seriously. Bromelkamp says that nonprofits need to be more strategic and planful as they approach donors, working to connect people to the organization’s core values and to engage them in its mission.

I have heard Bromelkamp speak on several occasions about a variety of topics regarding investment and best practices for nonprofits. Each time, what impresses me most is not just his strong financial advice, but his ability to speak the language of nonprofits. With his background as a CPA and financial advisor, I find his proficiency in the nonprofit world a rare combination.

His own volunteer involvement includes serving on the Board of Catholic Charities of St. Paul and Minneapolis.

I interviewed David recently in the hopes of bringing some of that knowledge and perspective to Blue Grotto clients and my blog readers.

Each time I hear you speak about Allodium’s nonprofit clients, I am impressed with your proficiency and knowledge of the nonprofit field. How have you built that expertise?

Our financial advisors have extensive experience working with both individual and institutional investors.

Individuals are philanthropic, and they think about giving. Nonprofit institutions think about donors and receiving. If you can look at it from both sides of that same coin, you understand the connections between donor intent and a nonprofit’s mission.

When those align, that’s when a nonprofit gets gifts. In my twenty years of financial experience, I know that the really big decisions individuals make, they make based on their core values. Organizations, similarly, are driven by a mission and set of core values.

An individual investor who has taken care of their priorities – put their kids through college, taken care of their retirement – may then turn their attention to charitable giving. They get very values-oriented, and become increasingly thoughtful about how an organization fits their values before they make major gifts, whether through planned gifts or campaign contributions, like a capital campaign.

How can a nonprofit be more strategic about their development efforts?

Personally, I am very planful and strategic. So, things like planned giving make a lot of sense to me. Estate planning makes a lot of sense to me, retirement planning makes a lot of sense to me.

We have seen a trend in development – nonprofits are becoming more knowledgeable about the importance of planned giving and that donors want to do more than simply write a check.  So the idea of estate planning, and planned gifts and trusts, is becoming far more important

It is all about planning. Investors make plans. They make estate plans, retirement plans, etc. They think ahead five or ten years and make plans. Organizations need to emphasize the strategic planning element of their development efforts, and how that dovetails with donor values.

Why do you think values are so important to the development-philanthropy relationship?

Donors make decisions based on their values. The larger the financial amount, relative to their financial situation, the greater likelihood it will be a values-based decision.

If you asked me for $100 for your organization, I might give you $100 because I’m trying to be nice to you. But, if I have to decide how to carve up a $10 Million estate between three organizations when I die, I’m going to think about what three organizations are the most important to me and my life, and what I want to leave as a legacy. Those are going to be values-based decisions, not seat-of-the-pants decisions. They will be very values driven.

People tend to go to their core values when they are forced to make hard decisions. In periods of stress or duress, you’re going to revert back to your core values. And there are different sets of values that drive people’s decisions.

Click here to read part 2 of interview with David Bromelkamp.

David Bromelkamp is President and CEO of Minneapolis-based Allodium Investment Consultants, an award-winning independent investment advisor. Contact him at 612.230.3702; dbromelkamp (at) aicria (dot) com.

Guest Post: Fundraising Thoughts from an Investment Consultant – An Interview Part 1

by Greg Ritter on August 13th, 2010
Posted in: Fundraising, Planned Giving - No Comments »

Yvonne Hundshamer is the founder of Blue Grotto Inc., a Minnesota business that works with organizations to document culture and values, celebrate milestones and articulate vision. As a corporate history and culture consultant, she has directed both the research and project management on client projects including: 3M, Despatch Industries, Medtronic and National Car Rental. Before becoming a self-proclaimed ‘corporate anthropologist,’ she spent six years in the communications office of Minnesota Governor Arne Carlson.

Guest Post: Fundraising Thoughts from an Investment Consultant – An Interview Part 1

By Yvonne Hundshamer

As nonprofits become more knowledgeable in the areas of planned giving, they are all trying to better understand the process donors go through in deciding how they want to allocate their estates.

According to David Bromelkamp, President and CEO of Allodium Investment Consultants, his team takes their clients through a detailed planning process as they prepare them for the future. Many of Allodium’s clients are philanthropic, and take their giving decisions seriously. Bromelkamp says that nonprofits need to be more strategic and planful as they approach donors, working to connect people to the organization’s core values and to engage them in its mission.

I have heard Bromelkamp speak on several occasions about a variety of topics regarding investment and best practices for nonprofits. Each time, what impresses me most is not just his strong financial advice, but his ability to speak the language of nonprofits. With his background as a CPA and financial advisor, I find his proficiency in the nonprofit world a rare combination.

His own volunteer involvement includes serving on the Board of Catholic Charities of St. Paul and Minneapolis.

I interviewed David recently in the hopes of bringing some of that knowledge and perspective to Blue Grotto clients and my blog readers.

Each time I hear you speak about Allodium’s nonprofit clients, I am impressed with your proficiency and knowledge of the nonprofit field. How have you built that expertise?

Our financial advisors have extensive experience working with both individual and institutional investors.

Individuals are philanthropic, and they think about giving. Nonprofit institutions think about donors and receiving. If you can look at it from both sides of that same coin, you understand the connections between donor intent and a nonprofit’s mission.

When those align, that’s when a nonprofit gets gifts. In my twenty years of financial experience, I know that the really big decisions individuals make, they make based on their core values. Organizations, similarly, are driven by a mission and set of core values.

An individual investor who has taken care of their priorities – put their kids through college, taken care of their retirement – may then turn their attention to charitable giving. They get very values-oriented, and become increasingly thoughtful about how an organization fits their values before they make major gifts, whether through planned gifts or campaign contributions, like a capital campaign.

How can a nonprofit be more strategic about their development efforts?

Personally, I am very planful and strategic. So, things like planned giving make a lot of sense to me. Estate planning makes a lot of sense to me, retirement planning makes a lot of sense to me.

We have seen a trend in development – nonprofits are becoming more knowledgeable about the importance of planned giving and that donors want to do more than simply write a check. So the idea of estate planning, and planned gifts and trusts, is becoming far more important

It is all about planning. Investors make plans. They make estate plans, retirement plans, etc. They think ahead five or ten years and make plans. Organizations need to emphasize the strategic planning element of their development efforts, and how that dovetails with donor values.

Why do you think values are so important to the development-philanthropy relationship?

Allodium Investment Consultants

Donors make decisions based on their values. The larger the financial amount, relative to their financial situation, the greater likelihood it will be a values-based decision.

If you asked me for $100 for your organization, I might give you $100 because I’m trying to be nice to you. But, if I have to decide how to carve up a $10 Million estate between three organizations when I die, I’m going to think about what three organizations are the most important to me and my life, and what I want to leave as a legacy. Those are going to be values-based decisions, not seat-of-the-pants decisions. They will be very values driven.

People tend to go to their core values when they are forced to make hard decisions. In periods of stress or duress, you’re going to revert back to your core values. And there are different sets of values that drive people’s decisions.

Part 2 Will be posted next week. Please be sure to sign up to receive the blog in your inbox so you don’t miss out.

Room to add one nonprofit staff member? Which One?

by Greg Ritter on July 13th, 2010
Posted in: Uncategorized - No Comments »

As the recession eases it will be time to consider rehiring staff members. Which one will make the most difference to the bottom line? I suggest you make room for a major gift officer. Here’s what s/he can do for you:

1. Keeps up to date. Stays abreast of legal and technical developments in the
different vehicles of major giving through workshops, seminars, conferences
and publications; remains conversant with the organization and the field of
service in  general.

2. Provides general information on major giving. Initiates informational mailings
to friends; responds to inquiries; speaks to interested groups.

3. Identifies prospective donors. Determines where to spend time to the best
advantage; researches respondents to mailings or those who come to the major
gift officer’s attention through referrals or direct inquiry. Maintains an effective
record system and an efficient follow-up procedure to ensure that all contacts
receive appropriate attention.

4. Develops the prospect’s interest and commitment. Patiently but persistently
cultivates the prospect through correspondence, phone calls and personal
visits, both by the major gift officer and other officers and volunteers.
Answers the prospect’s questions, keeping the prospect mindful of the organization
and its programs; gains the prospect’s friendship and trust.

5. Determines the feasibility of various contribution options. Elicits information
about the prospect’s assets and needs and chooses the most appropriate option
available; considers the major gift program as a part of the total development
picture and remains open to the possibility of deferred as well as current gifts.

6. Prepares the ask. Commits the plan to paper in a manner that is both convincing and understandable to the prospect, and the prospect’s agents if
necessary.

7. Closes. Discusses, clarifies, and possibly modifies the plan to meet the
prospect’s approval; gains the prospect’s endorsement.

8. Ensures that arrangements are properly executed. Oversees and initiates
arrangements through the proper business office channels and communicates with the prospect about them.

9. Maintains the commitment of the donor. Ensures that the donor retains
confidence in the college and in the wisdom of the decision to make a
major gift; keeps the donor informed of developments at the organization
keeps the donor open to the possibility of another gift or referrals to
other prospective donors.

A pretty good return on investment! When searching for a gift officer it may help to use a seasoned fundraising professional to help you find one or interview your prospects. From my personal experience it is very helpful to hire a consultant to mentor a new major gift officer.

Pause or Pounce? Timing your nonprofit capital campaign.

by Greg Ritter on July 6th, 2010
Tags: , , - Posted in: Capital Campaign, Fundraising - 1 Comment »

I have found that when a campaign goes on too long, year after year, its spirit begins to sag, leaders get tired and donors wonder if it will ever end.

You can sustain a great, upbeat campaign experience for 18-24 months, in my experience. This is the period of active asking for leadership and major gifts, and the broader, more public campaign events.

But there are special situations that call for a revised time schedule. My most recent new church building campaign was one of these.

The feasibility study was positive, and the first six months of campaigning was right on schedule. The present church building was 80 years old, and an early gift of land put the project within reach, or so it seemed.

But a group opposing the project was forming. This was of great concern to the pastor, who saw her role as pastor to all the members. How could she put aside her excitement for the project to listen attentively to some members’ objections?

Early in the planning process, the finance committee had asked the opinion of a local construction company about remodeling the present building, rather than building a new structure. An elevator would need to be added for those unable to handle the steps – up for worship and down for fellowship and the rest rooms.

The construction company’s verdict was clear. It would surely cost more to remodel, and at the end you would still be in an 80 year-old building.

So the campaign proceeded on the strength of their assessment. Then it became clear that not all members were in favor, especially those whose homes were older than 80 years, and were just fine, thank you.

In order not to lose these members, we decided to take a year off to hold a series of listening groups and to spend some money on a thoroughgoing remodeling analysis.

The land donor was kind enough to extend his offer to allow for this extended period. At the end of the year, the verdict was the same. It just wouldn’t be worth it to remodel.

So the campaign resumed and was successful. No members were lost in the process.

In this case, it was better to pause than to pounce.

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