|
 Before his retirement in 1988, Frank P. Wendt served as
chairman of John Nuveen & Company, one of the world’s largest creators of
tax-free investment opportunities. As a current trustee of a number of
charitable organizations, Mr. Wendt, who currently resides with his wife in
Southport, Connecticut, brings his for-profit experience to the nonprofit world.
Here he shares with Give & Take a board member’s perspective on
ways to improve relationships between the board and development officers, the
current state of the economy, and effective fund-raising techniques.
Give & Take: During and after
your successful career in the for-profit world, you made the time to be actively
involved in a number of nonprofit organizations. What originally drew you to
volunteer service with nonprofits?
Frank Wendt: As a trustee I have been associated
with some excellent development professionals and am impressed with their
dedication to the missions of their institutions. I feel compelled to do as much
as possible on behalf of the institutions in which I am personally interested
and involved.
Nonprofits offer personal satisfactions of a type not available
in the business community. Not better—just different. It is rewarding to use
my business experience to help resolve problems in the nonprofit world.
Give & Take: What do you think inspires people to make
contributions of time and other resources to nonprofit groups? Do you believe
most are motivated by altruism, religion, political beliefs, emotions,
self-interest, or some combination of these motivators?
Wendt: Each donor is motivated in a different way,
depending upon the organization and how it has attracted his or her interest.
Some or all of the motivators you mention undoubtedly underlie a decision to
respond favorably to a request for funds. However, I feel that the old slogan “people give to people” is the primary reason people part with their
“treasure.” Whether it be an organization’s president, executive
director, faculty member, staff member, board member, or a dedicated volunteer,
one person can and does make a difference.
Give & Take: Much has changed since we last spoke some five
years ago, most notably on the political and economic fronts. What are some of
the primary challenges facing development officers today? How would you suggest
they be addressed?
Wendt: The stock market boom and bust of the late 1990s,
followed by three years of economic malaise, have affected our entire society,
from first-time job seekers to retirees. Development officers must first and
foremost empathize with their donors and understand that the current climate can
dictate reduced expectations in many cases.
Of course, their institutions’ financial needs remain
insatiable, and those working in other aspects of the institution may continue
to expect the same level of funds
that have been raised in the past. That is why it is crucial for development
officers to periodically share with governing boards the reasons that ever
increasing goals may not be realistic at present. Fundraisers should, however,
also be prepared to discuss their plans to capture the unprecedented
opportunities in today’s environment to build endowments for the future.
Longtime donors want to know how they can continue to provide
meaningful support to their charitable interests despite reductions in their
disposable incomes. Donors often make their largest contributions in their wills
and other long-range plans, so this is an ideal time to focus on a deferred gift
program. Also, gift annuity rates are extremely attractive for the charitably
minded who are experiencing reductions in dividends and interest. The
opportunity to make a gift and receive generous payments for life (and tax
benefits as well) will be of great interest to many donors.
Development officers should also cultivate relationships with
financial advisors; many are unfamiliar with deferred gift vehicles and will
value a greater understanding of them when working with their clients.
Fundraisers should of course stay with the traditional development tools that
have served them well in the past. However, they should brainstorm with
development associates and volunteers about new and creative ways donors can
satisfy their desire to support an organization.
Give & Take: In times of economic challenge, do you believe
those who reduce giving do it on a “pro rata” basis, or do they decide
to eliminate some charities entirely while perhaps even increasing their
commitments to others?
Wendt: In difficult economic times, I believe most donors
will continue to strive to support organizations in which they are genuinely
interested on a pro rata basis. But I also believe today’s donors will be ever
more selective in the future even when economic and political conditions are
more favorable.
Donors are now being deluged with direct mail and telemarketing
solicitations. This can have a “numbing” effect that results in
unsolicited gift requests being ignored—unless they are from organizations
where the cause holds genuine appeal as a result of personal involvement or
other knowledge of the worth of the cause to society.
For the largest gifts, however, personal involvement will
continue to be the most important element in the decision process.
Give & Take: How should fundraisers communicate with retired
donors versus younger persons who are still actively employed?
Wendt: Abandon the “one solicitation fits all”
approach! Different life circumstances require approaches that are tailored to
specific age groups.
Obviously, efforts designed to encourage estate gifts will
be of limited interest to a young person with a growing family who is still in
the process of slowly building an estate. Conversely, mature individuals must
make decisions based upon life expectancy, the possibility of outliving images,
healthcare concerns, and other things specific to their age group.
Prepare yourself with solutions to perceived (or real) problems.
For example, a gift annuity might be a welcome alternative to supplement
long-term healthcare insurance to help pay for assisted living. An estate plan
that includes gifts to nonprofits can save substantial amounts that would
otherwise be paid in taxes while still enabling the donor to leave a legacy to
relatives and/or friends.
Give & Take: What suggestions do you have for development
executives who would like to build successful relationships with members of
their board?
Wendt: First, let your organization’s principal
executive know that it is important for you to meet with, inform, and educate
board members on a continuing basis. Use these opportunities to subtly remind
them of their financial responsibilities to the institution. Your fund raising
will only be as successful as your leadership’s financial participation
(ideally 100%) and involvement in the development process. Help board members
succeed in their personal solicitations by giving them a working knowledge of
available gift planning opportunities that offer viable alternatives to current
cash contributions where appropriate. Board members need assistance from the
development office to help raise funds effectively, so don’t hesitate to share
research on potential donors and their interests, as well as opportunities for
trustees to be “centers of influence” on behalf of the nonprofits they
serve.
Give & Take: As a former and current board member, donor,
and fund-raising volunteer, you receive a number of solicitations for gifts.
What makes a gift solicitation work?
Wendt: I look for a well-considered appeal for funds
within my areas of interest. A general appeal is not nearly as effective as a
request to support a specific program. I also like “Wish Lists” that
include a potpourri of “needs” that are beyond the reach of normal
budgets. Most important of all (and what I look for before reading the
solicitation) is the signature of the sender. If I know and respect the person
and value his or her opinions, I am compelled to read the message. People give
to people.
Give & Take: What advice would you give to someone just
starting out who is charged with raising large amounts of funds, whether current
or deferred?
Wendt: Learn everything you possibly can about your
organization and its mission, its history, and the contributions it has made to
the local, national, and/or international community. If you cannot be personally
enthusiastic, look for a position elsewhere!
If the organization passes your “personal enthusiasm” test, as soon as possible seek out long-term
donors and ask them to tell you why they have lent their continued support over
time. Their stories will buttress your own understanding of the value of your
nonprofit to society and will build confidence and add to the reasons you should
be willing to devote your personal talents to the development effort.
Lastly, when you have done your research and are meeting with a
well-qualified donor prospect, don’t forget to ask for the gift! Too many
gifts are lost because of reticence on the part of the presenter to ask for the
order!
And when you receive the gift, your work isn’t finished. It has just
begun. Don’t make the mistake of ignoring your donor until “the same time
next year.” Remember, donors are being cultivated, solicited, entertained,
and educated by any number of nonprofits. You can’t thank donors too many
times for their gift or, importantly, tell them how their gift has made a difference.
|
