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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.

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.

A Golf Tournament Alone is NOT Enough to Advance Your Mission

by Greg Ritter on July 4th, 2010
Posted in: Capital Campaign, Fundraising, Special Events - 1 Comment »

We are certainly well into the nonprofit special event season. Our incoming mail gets more colorful this time of year with all those four-color brochures enticing us to golf, fish, run, shoot clay pigeons, taste wine, drink scotch and eat chocolate, all in the name of our favorite nonprofit cause.

In my first few nonprofit benefit golf tournaments, I was amazed at the wad of big bills players would pull out for green fees, Mulligans, merchandise, the banquet, the silent auction. “We’ll make a bundle tonight,” I thought to myself, “and look at all those new faces.”

What I realize now is that big wad of bills was not the golfer’s own money, happily given in support of our nonprofit mission. In many cases it was their company’s or their employer’s money provided to the golfer for a day of fun and networking.

It was great to collect the money (“take the money and run, Greg!” I remember my old mentor saying). It was fun to strategize about how to increase the number of foursomes each year and increase the proceeds.

But when golf season was over and our nonprofit capital campaign began I found many of the golfers and sponsoring companies did not participate. “We support you through the golf tournament,” they would say.

Even the new faces I remembered from the course, who listened to our program at our banquet that night and saw our client stories posted at each tee, did not feel close enough to us to support the nonprofit capital campaign.

There is no substitute for good old-fashioned one-on-one cultivation of prospects, especially before a capital campaign. They need to see the mission in action, meet Board members, and maybe serve on a committee to feel part of things.

Then let the special event be a celebration of progress. It is also a great cultivation of the volunteers who worked on the event, and a great first introduction of friends who are new to the mission. But keep cultivating, especially when there is a capital campaign in the future. In the meantime, take the money and run!

Does Your Nonprofit Have a Donor Communications Calendar?

by Greg Ritter on July 1st, 2010
Tags: , , - Posted in: Communications, Fundraising - 2 Comments »

A successful communications plan should include a year-long calendar to easily track when different messages need to be delivered and how to deliver them. For nonprofits it is essential to have a structured communications calendar to ensure you are reaching your donors on a regular basis.

I was thrilled to see nonprofit consultant Lori Jacobwith (@LJacobwith) sharing a sample communications calendar (it’s an Excel document that can be used as a template) in her recent post: Keep Track of Donor Communications With this Awesome Tool! Lori also shares some great tips for connecting with donors in this article. I highly recommend you read the post and download this tool to use with your communications planning.

Thank you Lori for sharing this amazing tool!

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