I’d like to restrict my donation to pay for salaries, rent, professional development, health insurance, a bonus, a staff retreat, or fundraising.  In sum, if it’s “overhead” I’d like the charities I support to spend 100% of my donation on it.

Most people want the exact opposite.  Funder after funder, foundation after foundation, all caught in the same trap.  A vicious trap.  A trap called out by a highly controversial and timely advocate: Dan Pallotta, author of Uncharitable: How Restraints on Non-profits Undermine Their Potential. I wish you could see the amazing presentation he gave at the Texas Non-Profit Summit last month, but sadly the “content was removed by owner”, whatever that means.  Kudos to Greenlights and especially the brilliant Kim Wilson, for bringing Dan Pallotta and his provocative message to our industry.  I’m halfway done with Dan’s book.  The first half of the book tackles an argument around non-profit compensation that seems to trump and polarize people into a complete bottleneck of an argument that renders them useless for getting to what I believe is most important issue at hand: an arbitrary meaningless yardstick destroying the effectiveness of non-profit industry and the very fabric and essence of philanthropy.

What’s the yardstick?  A societal obsession that’s led to the institutionalization of the belief that a non-profits percentage of spending on fundraising and administrative is an indication of effectiveness AND worthiness of a funders donation.

Hogwash.  Here are 5 reasons to donate to overhead.

1) How much money a charity spends on administrative or fundraising expenses is arbitrary and meaningless.  It says absolutely nothing about what matters: how effective the agency is at fulfilling their mission.   Some agencies rent space.  Some get it for free.  That doesn’t matter: what matters is how is the charity impacting the lives it’s trying to change?  If it can’t serve its clients because there’s no parking at their “free” in-kind office space then they aren’t very efficient and my gift is more likely to make a bigger impacting at at agency paying rent.

2) The “ratio” of general and administrative expenses to program expenses is a fabricated number to start with.  Charities decide what expenses are allocated to programs and what are allocated to overhead.  There isn’t one way to do it.  There are many.  One ED entered every expense into Quickbooks, regardless of the charge, to 90% programs, 3% fundraising and 7% administrative.   I would estimate she is in good company and many charities, especially larger ones, follow her formula.  At the non-profit I started and led for twelve years I took a different approach: expenses and timesheets were billed directly to the programs they were spent on or served (i.e. summer camp, after school etc).  To put it simply, “overhead” is in the eye of the beholder.

3) Helping ensure that people are compensated fairly for their talents and dedication, that achievements are rewarded, that staff can live comfortably, that workers have the technology infrastructure to thrive and efficiently serve clients and raise money, and work in facilities that are fully operational, optimal and safe is a GOOD investment. It’s money well spent.  End of story.  Nuff’ said.

4) Whatever happened to the joy of giving? To the spirit of philanthropy? Do we really think so low of people at charities that we honestly can’t trust them with the very dollars we want to give?  Hmmm…if we feel that way have we really spent enough time getting to know them?  Or do we have trust issues?  If so, why are we giving?  Are you a bitter, cave-dwelling, catlike creature with a heart “two sizes too small,” living on snowy Mount Crumpit, just north of Whoville, home of the merry and warm-hearted Whos?  If so, please stay on Mount Crumpit and stay away from charitable ventures in Whoville.  A true philanthropist is made of many admirable traits and after generosity come equal parts of faith and trust.  If you don’t have that, don’t give.  Sadly, non-profits are courting enough grinches already and don’t need another.

5) Focus on what is important in the first place:  that Headstart is giving kids a headstart to succeed.  That adoption agencies are getting kids adopted into safe, loving homes.

What’s the overhead in your house?  Paper towels?  Toilet paper?  Could you live without that?  I hope you wouldn’t try.  Should we judge you for spending on that?

Give and stay classy,

Rachel

Times are lean but even when they aren’t, in the non-profit world ‘free’ is the gold standard.  Free trumps everything.  But free has a price tag.  Ever heard the phrase, “as free as kittens”?  Earlier this summer I blogged about the cost of being cheap. Here’s what’s can be even more expensive:  free.

If your office space is free but you have no parking for clients or donors and your staff are crammed in one room where they have to wear ear mufflers to hear themselves think, is your space really free?  Not when you calculate your lost productivity, lost revenue from would be clients or would be donors who can’t engage in your services or in supporting your mission.  How about that “volunteer webmaster” that is supposed to be building your new site or managing your existing one but hasn’t responded to your emails or calls for the past 6 months?  How much is it costing you to unsuccessfully track them down and hobble along with a subpar online presence with dated information, graphics and content that doesn’t engage your constituents?  Now add to the cost of your time  what you could be raising if you had a top notch site that did engage your visitors with compelling opportunities to give.  Who knew cheap could be so pricey?  Let’s talk about that social media intern who is supposedly building your Facebook page, tweeting for you and setting up your blog?  Really?  Would you hand that intern over the mic at your annual gala in font of hundreds of your key stakeholders?  Because you might as well be.  Are they qualified to serve as the spokesperson for your agency?    What would it cost you if they weren’t?  In a word: everything.

Every non-profit is stretched thin.  So, how can you not break?   Here are three things you can’t afford to be “free”:

1) Your technology

Your database shouldn’t be managed by anyone but you.  Whether its a donor database or software tools you need, you can afford a reliable, cost effective solution and these solutions are all around you.  With so many affordable solutions, there’s no excuse for not investing in your infrastructure.

2) Your brand

You get what you pay for, plain and simple.  Brands don’t come free.  if you need a new identify system, shop around.  You may find many generous vendors who will donate a portion of their services but PAY SOMETHING because when you pay nothing you often get one opinion and your identity is too important to take the first logo you get.

3) Your social media

Social media is one of the only things that is free but it is a time investment.  There are plenty of examples of non-profits and companies who do  this right and do this well.  follow them to learn!  Don’t delegate this to someone on the fringe of your agency, your messaging is too important for that.

Everyone is stretched thin but by prioritizing and spending your dollars wisely, you’ll stay ahead of the curve and ensure that you take your agency to the next level.

Stay classy,

Rachel

Everyone’s busy and time is money.  We need each other but we’re all swamped.  How do you get your request moved to the top of the stack?  How do you get the door opened?  How do you get your name at the top of the list?

Today I got THE BEST ask for a visit that I’ve ever received.  Not only could I not say no, I couldn’t wait to meet this amazing person.  I immediately asked if I could share her flawless prose on my blog and she graciously agreed:

Dear Rachel,

I am inspired and excited by the work you have chosen to do, from Girlstart to Mothers’ Milk, motherhood to consulting.  Your career, which you have described as a “calling”, is a great example of passion breeding profession.

I am writing to ask if you will grant me 30 minutes of your time for an informal interview on the subject of Calling.  I am an aspiring entrepreneur and an incoming MBA candidate at the Acton School of Business. We have been given the daunting but important challenge of spending 30 Minutes with an Entrepreneurial Hero.  I’d like to spend those 30 minutes with you.

There is no hidden agenda, I’m not job-seeking—I’m just hoping you’ll share some of the lessons you’ve learned about leveraging passion into career, balancing career with motherhood, and living a life of meaning.

If you say “yes” I promise to make good use of your time.  I will ask you only the questions that I’ve been unable to answer from reading your press and blog.  I will send you questions in advance and will end on time.  As a thank you, I’d like to donate ten hours of my time to your favorite Austin charity.

I am moving to Austin this Friday, August 6^th.  I’d be pleased to meet at your convenience as early as this weekend, and would love for my first memories of Austin, Texas to include a meeting with you.  Please let me know how I can make this happen.

Sincerely,

Ariel Julia Nazryan, Acton School of Business Class of 2011

Here’s what Ariel does right:

1) She took the time to know her subject and (just as importantly) let them know she knows them.

2) She asks for a very specific and reasonable amount of time.

3) Just as important as telling me what the meeting IS; she tells me what it ISN’T.

4) She commits to using the time wisely by sending me questions ahead of time.

5) Best part?  She generously gives me the gift of HER TIME, ten hours of it, for MY favorite charity!  What a win-win!  I can feel great about someone this brilliant helping out some of the causes I hold dear.

Want to open the door to your next opportunity?  I would bet money if you followed Ariel’s method you’ll get the meeting.  What are you waiting for?  Go forth and ask!

Stay classy,

Rachel

The other day I was talking to my friend Vicki Flaugher, founder of Smart Woman Guides about one of many Fortune 500 companies whose go to market strategy is price leadership.  That doesn’t leave many options.

You see it all around.  99 cent burgers.  79 cent tacos.  In reality its price prohibitive to make a burger for 99 cents, so those companies take a loss on each one sold in the hopes they’ll up sell you on a non-loss item, perhaps a super size drink.

In my opinion cheap always loses, because you can only go one direction: cheaper.  One of my favorite Fast Company articles was written back in 2006, The Man Who Said No to Walmart.  He walked in to make his pitch and the VP’s office was furnished with plastic folding chairs left behind by another vendor as a demo.  I read that article 4 years ago and I still have this crystal clear image of what he must have looked like awkwardly sitting in a crappy lawnchair in his suit, briefcase resting on his knees, knees positioned somewhere near his ears.  Like a giant in a kids chair.   What kind of an executive of a Fortune 500 company seats guests on plastic folding chairs?  What does that say?  “Dear God we’re cheap.  We are so cheap it literally hurts.  Try it, sit down.  Ouch.  This chair sucks.”

The Man Who Said No to Wal-mart said no because his company (Snapper) stands not for volume, but for quality, reliability, and durability.  His product wasn’t cheap.  It was built to last.  Their value proposition isn’t price, it’s performance and longevity.  Even though he successfully ran his manufacturing operations much like Walmart ran its stores, with fastidious detail on each element of precision and productivity, he wasn’t willing to sacrifice quality for price.

Business is about what you stand for:  Value.  Quality.  Convenience.  A fanatical obsession with customer service.  It’s also about where you are headed.  Short term gains around pricing today can have huge long term consequences.  How do you differentiate yourself in a noisy marketplace?  Where do you want to be in 10 years?  What are you going to doing today to get there?  Who will you say no to?  What will you do to preserve the values you hold dear?  Will you turn down clients?  Will you turn down money?  Most likely you will.  And if you lead your business with a strong moral compass, unwavering commitment to your core values, selfless dedication to your clients, customers, and stakeholders, and complete transparency your difficult decision will be rewarded with great success.

Stay classy,

Rachel

Face it.   Most people are afraid of asking for money.  Others excel at it and love it so much they do it for a living.  I am one of those people.  What are the 5 habits that make fundraisers successful?

1.  They are grateful.

Successful fundrasiers are some of the most grateful people you will ever meet in your life.  First and foremost, they are grateful for the purpose for which they are making asks, be it a for profit product or a non profit mission.  Secondly, they are grateful for every monetary gift they get.  They are quick to openly express this gratitude, which makes the funder feel acknowledged and valued and contributes to the fundraisiers continued success.

2. They have a naturally positive attitude and outlook on life.

You can’t be successful asking others for money if you don’t see the glass half full.  Your positive confident belief in your product or mission is what sells it.  It takes many no’s to get to a yes.  The no’s help you develop a thick skin but you have to be able to bounce back to a state of positivity to stay in the game and go out after your next ask.

3.  They are born extroverts: they have a natural drive to always be creating, building and maintaining strong relationships.

A successful fundraiser is managing a portfolio of potentially hundreds of prospects.  They should visit 50% of those prospects in a year and have 30% of their prospects in active solicitation.   On average they should be making 2-3 asks a month and have a close ratio of 50-75%.   This translates to a lot of phone calls, breakfasts, lunches and networking events.

4.  They are extremely goal driven.

Whether they are building a playground for the visually impaired, a technology center for girls, or a hospital for children successful fundraisers can visualize the dream of their end goal and they dedicate each moment to strategically getting there.  They break it down step by step to tangible, measurable goals they work every week, every month and every year to get there.

5.  They are organized.

You can’t raise millions of dollars or manage hundreds of prospects without being extremely organized.  Fundraising is a big job and every minute of your time is precious.   You have to spend it wisely cultivating relationships, making asks, pursuing new opportunities.   Determine what 3-5 core areas you will focus your time on to get the maximum results to reach your goals, i.e. cultivating existing relationships, making asks, developing new relationships, working with your board, etc and hold yourself accountable.

I have found fundraising to be one of the most profoundly meaningful careers out there.  Being in an intimate conversation with another person about the legacy they want to leave the world is deeply significant.  Having the opportunity to be a catalyst to help one person make a difference in the lives of others is infinitely rewarding.

Go forth and fundraise!

Stay classy,

Rachel

I know some of the brightest entrepreneurs in the business.  Some excel at strategy, others at marketing, or innovation. Their boundless enthusiasm gets everyone around them excited.  Their determination and drive draws others in like moths to a flame.  But there’s a secret they harbor.  Many of them despise managing other people.  They’ve raised millions, they’ve sold millions.  Yet they would rather stride into Pixar’s executive offices to make a pitch than give an employee feedback about their performance.  It makes sense, I mean who WANTS to have a difficult conversation? Here’s the secret: it doesn’t have to be difficult.  If you invest the time and use these tools you can say goodbye to employee performance evaluations as a dreaded workplace ritual.

A note of disclaimer here because let’s face it, there are some toxic broken people in the workplace so hell bent on destruction that they can make everyone’s jobs a living nightmare.  Like these managers whose feud made headlines.  Those people need to be shown the door.  These tools are for the rest of us.  Employee problems are likely to be a direct result of our mismanagement.  Ouch.  Did that feel like a slap in the face?  It isn’t – it’s a growth opportunity.  How can you get better?  Improve your management skills.  Leading teams is a muscle you are always flexing.  Just when you master one challenge, another presents itself.

Here are 3 secrets to have meaningful, rewarding and successful performance evaluations.

1)  Do weekly one on one’s with your direct reports.  Meetings can be as short as 30 minutes.  This time is critical for two reasons; first is is your employees opportunity to check in with you, update you and ask for help if they need it.  Secondly, it’s your time to share feedback with them, redirect them if they are of course or praise them if they are on track.  If you are doing one on one’s consistently and sharing appropriate feedback then NOTHING in your annual employee evaluation will come as a surprise.  Nothing in the annual review should ever be a surprise (unless it’s a big fat raise).

2) Have employees create SMART goals, written goals approved by you, their supervisor that are Specific, Measurable, Attainable, Realistic and Time Framed.  Example:  “Work with sales team to launch monthly open house point of entry events starting in June  attended  by a minimum of 15 prospects monthly”.  SMART goals should be organized based on their job description and/or current strategic plan. Employees should create SMART goals and submit them to their supervisor for changes and approval.  This process is time consuming but worth every penny; it gives your employees have a road map to success and 100% ownership in their work.

3) Evaluate employees performance using objective behavioral specifics.  Separate behavior from attitude and judgment from feedback.  In other words: be specific.  Have someone who shirks responsibility?  Tell them how by rating them against the behavior you want.  i.e.  “Accepts responsibility for tasks or projects. Does not blame others when she makes mistakes or goals are not met. Acknowledges her contribution to mistakes when they happen and makes a plan for correcting or preventing them in the future.”  You must clearly actively describe each manifestation of the behavior you want.

Here’s an area of great complexity: communication.  An employee can be a great writer and a horrible presenter.  They may do well in small groups but horrible in front of large groups.   Get specific in your evaluation criteria.  For example:

Communication: (Internal) Presents information so that it is understood by the listener. Gives information that is useful.  Is able to get to the point in a timely fashion. Summarizes key points in a situation and shares those in a short amount of time. Makes regular, sustained eye contact. Listens actively. Uses both broad and narrow questions to check for understanding and find solutions to problems.  Gives staff the information they need about projects in order to meet deadlines and deliver quality programs and results.   (External) Can speak to both large and small groups and keep the audience engaged.  People respond to her speaking with interest and enthusiasm.  Is well prepared for public speaking opportunities. Creates compelling visual materials and handouts. Tailors her speaking to the needs of her audience; is able to fluctuate the length and depth of a conversation based on the context and the listener’s needs.

Each of these steps will put you on the right path to success.  Do they take time?  Yes, but these are the steps to achieve great success, build successful teams, and groom new leaders.

Go forth and lead!

Stay classy,

Rachel

People don’t leave bad jobs, they leave bad managers.  The number one reason cited in exit interviews is “poor supervisory behavior.” In other words, bad bosses.   Poor leadership can plague any industry, for-profit or not-for profit.  The for profit world is pursuing profit, and the non-profit world is pursuing social change but if you think for one second that a career “doing good” gives you a hall pass from a bad boss, think again.

Here’s the good news what motivates employees isn’t money.   Want to learn more?  Watch this video of a Dan Pink lecture and find out. Want to know what really motivates your employees?  Be brave, ask.  Do a survey.  Ask your employees to rank in order what are the most important to them: compensation, mission, leadership, core values, autonomy, praise/recognition, and future opportunities for growth.  It’s important to ask. Asking makes your employees feel valued and respected.  It’s also important because what motivates each of us is different.  And that includes you!

My recipe for getting your employees excited to come to work everyday is 5 ingredients:

1) Trust them and show it.  Here’s a great example of this: Evaluate your employees by their results, not how many hours they put in.  This means trusting your direct reports to get the job done with the freedom to work from home or take flex time.

2) Give them praise that is specific, prompt and meaningful.  Have a hard time remembering to do this?  Let’s assume you have 5 direct reports.  Start the day with 5 coins in your right pocket.  Every time you praise one of your direct reports, move one coin to the other pocket.

3) Make it fun. Hold staff retreats on a monthly basis and trade off who plans it.  Even on a tiny budget you can have a great time.

4) Communicate!  The fastest way to change a behavior is with immediate feedback (just like your praise).  Be  fast (speak to the employee within hours of the event happening) and be specific and constructive.   Also, meet with your direct reports weekly.   It can be as quick as a 30 minute meeting but never save your frustrations for a quarterly or an annual review.  Those reviews should have NO SURPRISES in them because you should be communicating your constructive feedback weekly to your reports.

5) Take the pieces of your culture that everyone loves and document it.  Share it in your employee orientation so people know right away what kind of culture they are walking into, i.e.  what the rules are, what is rewarded and what’s expected of them.

Leading others an incredible responsibility and opportunity.  It is humbling to be entrusted with someone’s career.  Make it great!

Stay classy,

Rachel

I love watching the you tube video of Jessica, a happy carefree little girl sing about how much she likes her house, her family and her hair. I found out recently from my friend Vicki Flaugher, the genius behind Smartwoman Guides that this video was actually shot 9 years ago by her dad. Follow Vicki, she’s doing an upcoming interview with Jessica! Like everyone, watching this video puts a big fat smile on my face. It makes me want to do a silly dance on my bathroom counter too, why not? The viral success of this video can teach us a lot about creating great content and spreading it but I like it because Jessica’s message is a powerful reminder: are we feeding ourselves the good stuff?

How many times in a day do you say out loud or too yourself “I can’t do that” or “I’d suck at that” or “I don’t have time for that” or “God, I look fat.” STOP. You are hurting yourself. Take a lesson from Jessica; start feeding yourself the good stuff. When you say negative things to yourself, in your head or out loud it’s like giving your self a negative affirmation all day long. Think its just about feeling fat in a dress? Wrong. It spills over into every piece of your life: self-confidence, beauty, health/wellness, relationships and work.

Speaking of work, I’ve had the pleasure of spending most of my professional life as an entrepreneur raising money. What does thinking positive have to do with that? Everything.

I’ve raised over 10 million dollars in my career. I love raising money. One of my favorite books about raising money is The Soul Of Money by Lynne Twist. Lynn spent her career in fundraising and in volunteer work for organizations like The Hunger Project. Her book is all about viewing money as a spiritual agent. According to her, there are 3 toxic myths of scarcity. 1) There’s not enough, hence we on on a shaky foundation of insecurity that drives our every decision 2) More is better, so we’re voraciously seeking more but never feel satiated. 3) That’s just the way it is.  Hello apathy.

My career in fundraising has allowed me to see infinite interpretations of the power of money. For me, making an ask is being in a scared place with another human being I’ve successfully engaged in the mission of the work I am doing and the act of the ask is deeply personal conversation about how that individual wants to be significant. Fear about scarcity is like pouring acid on the conversation. It keeps people from being present, from being positive and from being successful.

What is your relationship with money? Are you chasing it, not feeling fulfilled? The most empowering way to change that is stop, take stock, and figure out what’s enough. Find the things that make you fulfilled and then use the overflow from that to make the world a better place.

Pretty soon you may be like Jessica singing about how much you like your cousins, your house and your hair.

Stay classy,

Rachel

One of the greatest lessons I have learned as a leader is the importance of core values.  Core values are the foundation of how you and everyone in your company conduct themselves.  They are the enduring things that would remain if you took away everything else.  Core values require no external justification.  They are not trendy; they are primary.  They are not strategies or goals; they do not change every quarter.  They are the filter through which you conduct yourself at work.  They determine how you treat others and guide you through difficult decisions.

For some, core values are nothing more than a marketing gimmick. Case in point: Enron.  Enron’s values seem like a cruel joke now:  respect, integrity, communication and excellence.  How about Dell’s?  In a nutshell the ‘Soul of Dell’ is advertised as: customers, teamwork, being direct, global citizenship, and winning.  To me those values translate to hard work, long hours, high expectations, and difficult conversations.  Even though they are called the “soul” they don’t feel soulful.

I’m especially proud of the core values we created at Girlstart, http://www.girlstart.org/values.asp They were the framework through which we treated one another and we made every decision.  One of our core values is “No success at work is worth failure at home.”  How many people ignore this lesson?  How many CEO’s consistently expect their employees to put work over family?  Another one of our core values that I am especially proud of is “Have fun and enjoy the experience.”

When do you need to start creating core values?  As soon as you are ready to take your company to the next level.  When your company is small and starting out, members’ values and behaviors are affected through proximity to the leader. The need for articulating core values becomes increasingly apparent as you grow. Defining core values helps maintain the culture the company holds dear.  Once defined, the values should be prominently displayed for employees and clients and reinforced through both the hiring process and in employee evaluations.

They should be short, enduring and memorable.  More than 5 core values are difficult to memorize.  Companies are wise to stick to 3-5 key values. Every company should reflect on them frequently to make sure they are living by them and check and see if they have changed so much as a company that a revisit is warranted.

The best leaders exhibit their values and ethics everyday in their leadership style and actions. If you don’t identify your values in the workplaces, mistrust follows.  People don’t know what they can expect from their leaders.  If leaders have identified and shared their values and are living those values daily that visibility will create trust.

What does your company stand for?  Are core values given lip service as marketing jargon or does your leadership live and breathe them?

Here’s to keeping it meaningful-

Rachel

An elevator statement is a short concise and compelling statement about you or your business that can be delivered in the time it takes for an imaginary elevator ride.  It’s your one chance to make a first impression, be memorable, open a door and build a relationship.  You have to say what you do in a way that is immediately understood and if you want more business, interests people enough to want to learn more.   It’s the one statement that will close or open a door.  Once that door is closed, it’s hard to recover from it.  First impressions stick.  That’s a lot of pressure for a few words, huh?   Here’s the sniff test any elevator statement should be able to pass with flying colors:

1) Does your mom understand it?

2) Does it prompt questions?

3) Is it generating you leads?

4) One sentence, 20 words or less.

5) 15-30 seconds.

Let’s visit the third one.  I was recently at a leadership breakfast engaged in some introductions between a small group of professionals.  One man introduced himself as a CFO at a well known accounting firm and as a board member of a community group. The other person introduced themselves as a consultant.  The last person said “Yeah, I say that too but we’re all in the same boat just looking for jobs.”    For him, and likely for a lot of folks, consulting was a nice way to say ‘job search’.  The consultant’s elevator statement essentially amounted to using a generic label to describe himself and that label was perceived as a cover up by someone else.   Had he been more specific, i.e. said, “Companies hire me to train their employees how to use software to save them time, be better organized and more productive” he probably would not have gotten that response.  You can pick an elevator statement that cuts right to the chase, i.e. “I am a graphic designer specializing in logos” or you can stand out and use a statement that projects confidence and provokes interest in your product or service, i.e. “I’m hired to help employees be happier, more efficient, productive and get 5 hours of free time each week.”

Whatever you choose, be clear, concise and memorable.  Now go forth and mingle!

Keep it classy,

Rachel