There are numerous reasons why people volunteer. One of the most commonly reported reasons is that it provides an avenue to become more involved in their community and make it a better place to live. Others volunteer to become connected to people in their community, resulting in an increased circle of friends and contacts. Others may volunteer as a way to develop their social skills. Still others volunteer as a way to give back to organizations that helped them when they were in need. Twelve years ago, when Tess Woodbury was just seven years old, her mother died. Tess was devastated and began participating in a peer grief support group at WillMar Family Grief & Healing Center as a way to cope with her loss. Today, Tess is now a WillMar Center volunteer. She said, “As a former kid participant, I really missed WillMar Center, and wanted to give back and now, I love being on the other side of the program. I am able to help kids understand their own grief process and to feel safe.”

In Sonoma Valley, we are fortunate to have a large population of retirees who have enjoyed full, varied careers, and now want to use their skills to serve others in a volunteer capacity. According to Whitney Evans, community leader and Sonoma’s current Alcade, “The opportunity to volunteer with Sonoma Valley nonprofits gives me great satisfaction because I can use the skills and experiences gained during my working years to the benefit of our Valley. It also provides me with the opportunity to work with the very dedicated, talented staffs who make our nonprofits an essential safety net for so many. Two nonprofits I have volunteered with for many years are the Boys & Girls Club that inspires our youth to succeed, and Special Olympics, that provides sports and camaraderie for our athletes who in turn inspire us by their courage.”

Elisa Stancil, vice president of the Board of Directors of Valley of the Moon Natural History Association, the nonprofit organization that now manages Jack London State Historic Park, says she volunteers because it provides her with “the opportunity to truly collaborate with people from differing backgrounds, all to achieve a common purpose.” She added, “The other value of volunteering is that when you think you are giving, you actually come home realizing you have received. It’s magic!” Tim Boeve, volunteer coordinator for the Infineon Raceway Track, stated, “I’ve heard one of my volunteers say that his volunteer day is made when he sees smiles on the faces of those he serves.”

Last year, in honor of National Volunteer Week, UnitedHealthcare and VolunteerMatch (a website that connects individuals to volunteer community needs) released the results of their national Do Good. Live Well Survey of more than 4,500 adults who volunteer. The survey found that 68 percent of those who volunteered reported that volunteering has made them feel physically healthier; 89 percent said that volunteering improved their sense of well-being; and 73 percent reported that volunteering lowered their stress levels. The survey results also indicated that volunteering appears to correspond with higher levels of life satisfaction, including a greater sense of meaning and purpose, and higher levels of optimism. Over 92 percent of the survey respondents claimed that volunteering enriches their sense of purpose in life.

Vintage House, a Sonoma nonprofit serving individuals over age 55, depends on more than 200 volunteers offering over 5,000 hours of their time to implement their ever-growing array of services to Sonoma Valley’s rapidly growing senior population. According to Cynthia Scarborough, Vintage House’s executive director, “The absolute beauty of volunteering locally is that giving of oneself in service helps the volunteer, the organization and its constituents, and ultimately our community as a whole. It’s been well documented that volunteering leads to improvements in several key indicators of health and well-being, resulting from the increased sense of engagement experienced by volunteers. Among the established benefits are lower rates of depression, reduced incidence of heart disease, improvements in functional ability in several areas, and increased lifespan.”

There are many types of volunteer opportunities in Sonoma Valley, with each nonprofit having its unique volunteer needs. Most nonprofits offer new volunteer orientation programs or training sessions to help community members learn about their organization and volunteer positions. Barbara Cullen, executive director for WillMar Family Grief & Healing Center, said, “After completing a rigorous training program, each of our 40 grief support program volunteers shares least 140 hours each year to help over 200 children and teens find healthy ways to progress through their grief, feel safe, and to know that the community supports them. We also have 23 administrative volunteers who help us as directors on our board, as members of our fundraising committees, and as providers of our outreach services.”

To get started volunteering in our community, first ask yourself why you would like to volunteer. Is it to make the world a better place? To meet new people who are different from you? To try something new? To do something in your spare time? To do something at which you excel? To see a different way of life? Another way to get started volunteering is to match your personality and interests with the great number of volunteer opportunities that are available in our community. To narrow your options, determine if you would prefer a volunteer position that enables you to work alone or with people. Assess if you are better behind the scenes or in a more visible role. Identify how much responsibility you want and the amount of time you’re willing to commit to a nonprofit organization. Make a list of the specific skills you can bring to a volunteer position and the skills you would like to develop. Then, find the nonprofit organization that aligns with the causes you personally support.

When you think you have finally found the right organization for you, ask a lot of questions to be sure you’ve found the right match. Ask if you will receive training, what the time commitment will entail, and with whom you will work. Be certain that you know what the organization expects of you. You might consider starting with a small assignment to test the waters and ensure you are not over-committing yourself. If you find that the volunteer experience is not what you expected, speak up and request a change in your focus or consider looking for a better volunteer match for you. Finally, have fun! A volunteer experience should benefit both the volunteer and the organization.

Here’s to a happy belated National Volunteer Week for all of you Sonoma Valley volunteers! And for those of you who haven’t started volunteering yet, what are you waiting for? It will improve your quality of life and the quality of life for all of us in Sonoma Valley.

Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and public sector agencies to better serve their stakeholders. She assists her clients with strategic planning, organizational and personnel performance improvement, fund development, and community relations. She is President of Impact100 Sonoma and leads the Sonoma Valley Presidents Council. She serves on the Sonoma Upstream Investments Portfolio Review Committee as an appointee of the Sonoma County Board of Supervisors. She can be contacted at bjbischoff@bjbischoff.com.

This year, for the first time, there is an opportunity for Sonoma Valley nonprofits to receive a free, customized report showing compensation and benefits paid by Sonoma Valley-specific nonprofits. But the only way to generate this report is for a significant number of Sonoma Valley nonprofit leaders to participate in the 2012 Fair Pay for Northern California Nonprofits Compensation and Benefits Survey. The organization that has produced this annual survey among the 48 counties in Northern California for the past 33 years has agreed to provide a Sonoma Valley-specific summary report if we can get a good response rate from our Sonoma Valley nonprofits. Last week, the co-publisher of the survey, Bob Orser of Nonprofit Compensation Associates, named the Sonoma Valley Presidents Council as a Regional Partner for the survey. (The Sonoma Valley Presidents Council is an informal group, comprised of the presidents of Sonoma Valley nonprofit boards, that meets quarterly to discuss issues of common importance to Sonoma Valley nonprofits. Kimberly Blattner, president of the La Luz board, started the group a year and a half ago and led the group until last week.) According to Bob Orser, as a Regional Partner, the Sonoma Valley Presidents Council will receive “special compensation and benefits reports based entirely on survey results from the Sonoma Valley nonprofit community, if they get enough participants. This data will be distributed by the Sonoma Valley Presidents Council in May free-of-charge to all Sonoma Valley nonprofits.”

According to Bob Nicholas, a member of the Sonoma Valley Presidents Council and president of the board of WillMar Family Grief & Healing Center, “What is the right salary for a particular executive director? What are appropriate fringe benefits? What kind of support staff can maximize her/his effectiveness? To what extent can we protect their time through the judicious use of volunteers? Having Sonoma Valley-specific data regarding these and other questions from the survey will greatly facilitate the work each of us does in our own small circle of giving. Such information will also increase the shared concentric circles of the caring fabric that unites our wonderful community.”

Having a comprehensive Sonoma Valley-specific nonprofit compensation and benefits report will enable Sonoma Valley nonprofits to set fair salaries and benefits to retain the best employees. Access to this level of information is especially important during tough economic times to help ensure that nonprofits are spending their philanthropic dollars wisely. By knowing what other nonprofits in our own local economic market are paying their employees, Sonoma Valley nonprofit leaders will be able to accurately budget for the cost of adding new staff members. Annie Bacon, executive director of Seeds of Learning said, “The survey has proved to be very useful as one of the tools that our board uses to assess the compensation of the executive director. Having the ability to compare nonprofits across size, employees supervised, area of work, type of work, and other factors has been very helpful for us to know how we compare to other nonprofits.  It would be wonderful if the categories were even more specific to reflect the compensation practices of the Sonoma Valley nonprofits.”

The survey can also be very useful to provide documentation that the Internal Revenue Service now requires for identifying the processes a nonprofit organization uses to determine executive compensation levels, one of which is comparability data. Cynthia Scarborough, executive director of Vintage House, commented, “The survey results provide a useful tool for nonprofits, not only in conducting our IRS-mandated due diligence review of executive compensation, but also in reviewing compensation of other staff and in planning for staff development and growth. The information the survey collects is provided in aggregate form with multiple variables, allowing any organization to look at its compensation relative to others of like budget size, number of employees, field of endeavor, and geographic area. I’m hoping more local nonprofits will take part in the 2012 survey so that we can access data for Sonoma Valley specifically. Currently, the smallest geographic survey report grouping available to us is for Napa/Solano/Sonoma counties combined.”

The survey should be completed by the highest level paid staff member of a nonprofit organization and will take less than an hour. According to Richard Dale, executive director of the Sonoma Ecology Center, “The process is straightforward, though you’ll need access to your organization’s payroll information, or help from an administrative or finance assistant, to pull the information together. It took me about 45 minutes the first time, and each time it becomes easier. The more of us who do this, the better the information is for all of us!”

The Boys & Girls Clubs of Sonoma Valley participated in the 2011 Fair Pay for Northern California Nonprofits survey. Dave Pier, executive director of that organization said, “Combined with the Boys & Girls Clubs of America salary benchmarks, we use this survey data to inform decisions about our employee salaries.  It is incredibly helpful to have this kind of data as a starting point for human resource discussions and for our organization to know where we stand regarding our strategic goal of providing competitive compensation for all of our staff. I encourage other organizations to participate in the survey.”

Nonprofit leaders can access the 2012 survey until March 26 by going on-line to nonprofitcomp.com. The more responses received from Sonoma Valley, the greater the likelihood that the survey publishers will produce a Sonoma Valley-specific compensation and benefits report, a useful planning tool for all Sonoma Valley nonprofits.

Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and public sector agencies to better serve their stakeholders. She assists her clients with strategic planning, organizational and personnel performance improvement, fund development, and community relations. She is President of Impact100 Sonoma and leads the Sonoma Valley Presidents Council. She serves on the Sonoma Upstream Investments Portfolio Review Committee as an appointee of the Sonoma County Board of Supervisors. She can be contacted at bjbischoff@bjbischoff.com.

The number one prediction in the report is that online and new media channels will continue to expand their influence. This prediction was based on Convio’s research that online fundraising is up 40 percent from 2009 and that older donors are more engaged in web-based communications and advocacy. The report also cited an example that 15 percent of direct respondents to a specific TV campaign launched by a nonprofit accessed the nonprofit’s website via a mobile device. Nancy Gardner, chief development officer for the Boys & Girls Clubs of Sonoma Valley, echoed this trend by stating,” Social networking and web technologies will be leveraged in ways we have yet to imagine. Consider that only 10 years ago the Internet was just entering standard usage. The nonprofit groups serving Sonoma Valley are already accelerating strategic forays into the world of social media as a method of giving.”

The prediction of greater peer-to-peer engagement means that direct communications from nonprofits will have less of an impact on the giving decisions of donors and, instead, donors will rely more on referrals and guidance from friends, family, and co-workers. So, nonprofit leaders will be wise to encourage their most loyal supporters to become active promoters of the organization’s mission. Melanie Hamburger, principal of Catalytic Women, a local membership organization for women in philanthropy, also predicts this emphasis on relationships. She said, “Nonprofits that reach out to women and provide meaningful opportunities for them to engage as donors and volunteers will likely develop a consistent base of funding. In general, individual donors provide the most stable year-after-year funding for a nonprofit–much more so than foundation, government, and corporate grants or, even, special events. Women, in particular, place tremendous value on relationships. The nonprofits that succeed in cultivating these long-term relationships with women will thrive financially.”

The trend of nonprofit constituents dictating the terms of their experiences with nonprofits should cause organizations to increase the level of customization they provide. Communications with donors and people served by nonprofits will need to have content that is specifically targeted for a particular audience and delivered in a way preferred by each audience member. More and more, nonprofits will have to mirror the sophisticated methods used by for-profit companies to reach their customers. The Convio report also predicted, “Strategic communication efforts that are consciously coordinated, orchestrated, and targeted–based on particular audience segments and their individual preferences–will become more prevalent.” The prediction of information overload between nonprofits and the community they serve could result in donor fatigue. As individuals receive a barrage of communications via email blasts, text messages, RSS feeds, tweets, and FaceBook posts with increasing intensity and frequency, it becomes more challenging for nonprofits to have their unique messages heard.

Jessica Thomason, Sonoma Valley Museum of Art’s development director, weighed in with this prediction, “I see a variety of trends impacting Sonoma’s nonprofit sector in 2012.  Our changing economy provides opportunities for nonprofits to reinvent themselves and come up with creative solutions to engage audiences and do more with less.  In a small community such as Sonoma, I can see how donor fatigue sets in.  The nonprofit community will have to work together and, rather than compete for dollars, come up with alternate solutions to create collaborations that will support one another.  Trends that incorporate peer-to-peer engagement, open and honest communications with donors, and more strategic approaches to solving problems will help the sector in 2012.”

Elisa Stancil, vice president of special projects for the Valley of the Moon Natural History Association, predicted, “To create public benefit on the local level, all nonprofits must hone their focus and their mission…To best create programs and solutions that are efficient and fully productive, nonprofits must share their knowledge, their physical resources, and their best practices with one another. I believe this community first trend will be the winning strategy for Sonoma Valley in the coming year.” Nancy Gardner of the Boys & Girls Clubs supports this emphasis on nonprofit cooperation by stating, “Collaboration between the nonprofits serving Sonoma Valley is more critical now than ever. I predict a nonprofit coalition will gain momentum and shared funding and planning will be the new normal.”

Melanie Hamburger reflected on a trend she sees regarding increased opportunities for women to serve in nonprofit leadership roles and said, “Women are seeking intellectual and community engagement, and are ideal candidates for nonprofit boards. Many women choose to take a break from their careers to raise families. By the time children are grown, these women have valuable life experiences that may not be appreciated at full worth by potential employers. These women seek leadership opportunities where they can make an impact in the world around them, and volunteering on the board of a nonprofit organization can provide the satisfying work they seek.”

In conclusion, Nancy Gardner said, “I am an optimist. I have tremendous hope for the nonprofit sector in Sonoma Valley. The on-going recession is an opportunity for us to get smarter, more open, more strategic and more sustainable… The under-resourced nonprofit sector must shift the focus from the good work we do and the services we provide, to a focus on the broader social change we are working toward.”
Time will tell which of these predictions will ring true.

Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and public sector agencies to better serve their stakeholders. She assists her clients with strategic planning, organizational and personnel performance improvement, fund development, and community relations. She is President of Impact100 Sonoma and can be contacted at bjbischoff@bjbischoff.com.

The 2011 results of the FEP have been released, and the conclusion drawn from the 2,377 nonprofit respondents is that if nonprofits could do a better job of retaining their existing donors, their long-term financial sustainability would improve. The 2011 FEP report showed that nonprofits have a donor retention rate of only 43.1 percent, meaning that 56.9 percent of their 2009 donors did not give in 2010. The cumulative study results over the past five years reveal that nonprofits (1) lose over 50 percent of their donors between the first and second donation; (2) lose 30 percent of those donors year after year thereafter; and (3) lose 30 percent of regular or sustainer givers from one year to the next. So, merely looking at the overall net income, and not calculating the difference between net gains and losses of donors and dollars from year to year does not give the management and boards of nonprofits the real picture of what’s happening in their fundraising efforts.

Several Sonoma Valley nonprofits have enjoyed donor retention rates that are much better than the national average. Nancy King, executive director of Pets Lifeline said,” Our donor retention rate over the past three years, from 2009 to present, has hovered between 80 and 90 percent.” Ann Reder, membership chair and board member of Impact100 Sonoma, a local women’s giving circle that raises over $100,000 annually to grant to Sonoma Valley nonprofits, said, “We have a very strong retention rate for a new organization. We are just starting our third year, and we have had 70 to 75 percent retention over the past two years.” Jodi Anderson, the incoming president of the Wine Country Chapter of the Association of Fundraising Professions and an experienced fund development professional with Hanna Boys Center, stated, “Donor retention rates fluctuate based on the donor’s level of commitment.  The retention rate for a new donor who has just begun the giving journey will be quite different from that of a long term, invested donor.”

For Sonoma Valley nonprofits, donor retention is critical to their survival. Anderson said, “It is all about building and strengthening relationships. First and foremost, donor retention is achieved by making sure that donors feel respected and valued by the organization.  This can be accomplished through a number of mediums, including (1) prompt and personal acknowledgments (not generic); (2) periodic updates regarding achievements and successes of both the organization and the service population; (3) focused appeals related to a specific need, coupled with motivational information about how their gift will make a difference; (4) invitations to events; (5) phone calls; and (6) special hand written notes.”

Kate Eilertsen, executive director of the Sonoma Valley Museum of Art, said that donor retention “is something that must be central to your thinking all of the time.” King added, “I find the personal touch is always important. For our major event, we followed suit with the Boys & Girls Club and did a thank-a-thon, where the board members and I called attendees to thank them for coming.”

There are myriad reasons that donors do not give to an organization from one year to the next. Reder notes that reasons members (donors) of Impact100 Sonoma do not return include “moving away, reduced financial circumstances, health issues, and the demands of work or other involvements and commitments.” King said, “We don’t have too many folks who fall out, but those who do seem either to have a change in their economic situation or a shift in their charitable giving.”

Anderson commented, “Even after following the best practices of donor engagement and cultivation, there will be times when donors do not renew their commitment the following year. If the organization has a memorial or tribute program and the donor has made a gift in honor of a friend or an associate, it may be that the donor’s only intent was to make a gift to honor the individual, and not continue giving as an annual donor. While events can be significant fundraisers for an organization, patrons who purchase tickets or become sponsors of an event are less inclined to transition into becoming annual donors.  This is important to keep in mind for annual revenue projections.”
Jodi Anderson continued, “Donor attrition (death or relocation to another state) can have a significant impact on your organization if you don’t have a plan to replenish your donor pool on an annual basis.  Acquisition of new donors needs to be viewed as an investment in the organization. A return on an investment for a new donor can take as much as 18 to 24 months.  Continual revitalization of an organization’s donor base is essential to maintain the financial health and sustainability of the organization…A formalized fund development plan greatly improves the likelihood of achieving revenue projections and project goals. Though it is good to be spontaneous in certain circumstances, in fundraising, it can be a costly mistake for the organization.
Laura Zimmerman, executive director of the Sonoma Valley Education Foundation, summarized the importance of donor retention by stating, “For me, donor retention is a fancy way of talking about communicating. When you are connecting with donors about the work you are doing and the larger purpose you share, you can weather the economic ups and downs and the relationships will be stronger because of it.”

Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and public sector agencies to better serve their stakeholders. She assists her clients with strategic planning, organizational and personnel performance improvement, fund development, and community relations. She is President of Impact100 Sonoma and can be contacted at bjbischoff@bjbischoff.com.

Last month, the Nonprofit Research Collaborative released a report based on a survey that addressed changes in charitable giving, and the types of fundraising methods used by these nonprofits. More than 75 percent of the responding charities have total expenditures of less than $1 million, similar to the size of Sonoma Valley’s nonprofits.

The study reported that 44 percent of respondents saw an increase in funds in the first six months of 2011, as compared to the first six months of 2010; 25 percent said giving was the same; and 30 percent saw a decrease in funds.

Although economic times are still tough, several Sonoma Valley nonprofits are doing much better this year than last. Carolyn Stone, board chair of the Sonoma Valley Hospital Foundation, stated, “We have a 58 percent increase in donations from 2010 to 2011. I believe we will do well in 2011 because the public needs the hospital and are willing to give.” Yvonne Hall, executive director of La Luz Center reported, “We’re up substantially from fiscal year 2010, a year which was quite difficult for us. The climate is trickier and there is more and more competition for charitable dollars in this area.” 

Vintage House has also fared quite well compared to last year. Executive Director Cynthia Scarborough said, “In the first six months of 2011, membership revenues are up 28 percent and our charitable donations have increased by 10 percent compared to the same period in 2010.” She added, “Many donors may be feeling more ‘at home’ now with the continuing economic uncertainty.”

Respondents to the survey indicated that they use a wide range of fundraising methods. Specifically, 90 percent of responding charities raise funds from corporations and foundations. About 80 percent use the methods of asking board members, seeking major gifts, conducting special events, and direct mail. Just over 60 percent use on-line fundraising (excluding Facebook and Twitter) and email. About 45 percent reported using social media, such as Facebook or Twitter. Planned giving was also used by about 45 percent of the survey respondents. 

While 25 percent of respondents saw an increase in planned gift commitments, 46 percent of responding charities saw an increase in funds obtained through special events.  “Given the economic state most households are in,” noted one respondent, “offering an opportunity for a family or couple to get out, have a good time and know that the money they are spending is giving back seems to be what is working best at this time.”

Sonoma Valley nonprofits frequently use special events as successful fundraising methods. Matt Martin said, “Our main fundraiser, the SAY Sock Hop, was held in March for both 2010 and 2011. We saw a 16 percent increase in contributions in 2011 at that fundraiser alone.” La Luz Center also saw growth from special events. Yvonne Hall commented, “We recently put on the freshest, most exciting fundraising party we could (Noche en Copacabana), and marketed the heck out of it from a very early point.” 
Carolyn Stone stated, “The successful methods we are using to raise monies are direct mail, a very special event called Dancing with the Stars, and personal contacts with people who are interested in helping the hospital. We always do better in-person.”

Cynthia Scarborough said a huge increase in donations is largely attributable to a better response to this year’s mid-year appeal. “And,” she said, “We have certainly benefited from increased community awareness of Vintage House through our expanding array of classes and services.” Yvonne Hall added, “We’re making the materials we distribute to our donors and friends as informative and engaging as possible.”

Regarding their thoughts on strategies for fundraising through the remainder of 2011, 67 percent of survey respondents reported that they plan to focus on large-scale efforts to reach many people through direct mail, special events, and on-line campaigns. 

Matt Martin said, “Nonprofits must have a diverse stream of fundraising. Events, mail, campaigns all have varying returns. The trick is to put your efforts where your particular community responds. Everyone is different, so it is incredibly important to listen to your supporters.”

Yvonne Hall said, “I wish I had a crystal ball,” when asked about La Luz’s future fundraising success. She added, “Like most of my colleagues in Sonoma, I’m hoping for the best, but preparing for the not-so-great. At the very core of things, nonprofit organizations are businesses that have to be run like businesses and our belts remain pretty tight. We don’t have shareholders, but we do have hundreds of clients counting on us.”

Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and government agencies to better serve their stakeholders. She is President of Impact100 Sonoma and can be contacted at bjbischoff@bjbischoff.com.

September 30 is the deadline for nonprofits to apply for Infineon Raceway’s Speedway Children’s Charities grants. Since 2002, Infineon Raceway has distributed over $3.7 million to Sonoma County youth-serving groups through this grant program. This year, Infineon has decided to focus its grant dollars on children’s programs related to health and nutrition, basic services (safety and shelter), and leadership initiatives, such as mentoring and gang prevention. As far as what this particular funder looks for in a quality grant proposal, Infineon Raceway’s Community Events Coordinator Denise Silver said, “First and foremost, I go over the entire application to make sure everything is filled out properly. For me, a good grant applicant gives precise honest answers and does not rely on a lot of adjectives. I am looking for concrete, accurate information, not ‘we hope to’ or ‘plan to,’ but rather focus on results that show the program is worthy of being funded.”

In developing a grant proposal, it is critical for the writer to clearly tell the funder about the nonprofit organization’s history, mission, programs, structure, budget, leadership, and track record. Most importantly, the writer must show the funder why the nonprofit can be trusted to effectively use the grant-makers’ funds. The grant proposal writer needs to clearly explain why the program for which funding is requested is important to the local community and specifically what positive changes will occur as a result of funding the program. Local grant writing consultant Karen D’Or stated, “Use the proposal-writing process to tell your organization’s story with evocative, sensory words. While you always want to follow the foundation’s guidelines, you should never forget to present a vivid picture of the work you do for the community.”

This is Patti England’s third year of managing Impact100 Sonoma’s process of awarding a $100,000 high-impact grant every year to a Sonoma Valley nonprofit that would otherwise not have access to that level of funding. Patti suggested, “Making a clear summary statement of the project is key, as well as describing the need or desire for the project and how it will benefit the stakeholders.   It’s best to leave the pie-in-the-sky superlatives to the marketing brochure and concentrate on providing concrete facts and analysis.” Impact100 Sonoma awarded its first $100,000 Impact grant to the Boys & Girls Clubs’ College Bound Program and its second Impact grant to the Sonoma Valley Teen Services’ Skills for Life Program. Its third Impact grant will be awarded June 23, 2012.

The importance of truly understanding what a funder values and the types of programs it wishes to support is vitally important to a grant proposal being funded. A nonprofit staff member or volunteer who blindly responds to a funding opportunity posted online, without first contacting the funder to determine if there is a genuine fit between what the nonprofit needs and what a foundation wishes to fund, is usually wasting time. Developing a strong relationship with a funding source before submitting a grant proposal is the key to funding success. Karen D’Or added, “Before you submit a proposal, phone the foundation contact person. This will save time if the foundation is not a good fit for your agency. If there is a match, you have nurtured a potential new relationship. A recent example is that a quick introductory phone call to an out-of-state foundation, a prospect that could have been overlooked, actually resulted in a $40,000 gift to our local food bank.”

The Sonoma-based Vadasz Family Foundation has awarded millions of dollars to Sonoma Valley nonprofits since 1997. Meghan Beynon, the foundation’s staff member responsible for grant-making, offered this advice to nonprofit organizations, “Successful grant requests know their audience. There is not a one-size-fits-all formula. What may resonate with one foundation may not resonate with another. It is worthwhile to take the time and determine what information the foundation needs to make their decision.”

Sonoma Valley Fund serves as the bridge between donors and the nonprofit organizations they support, ensuring the prudent investment of funds and the achievement of legacy gift objectives. It is important for the organization to carefully select nonprofits to support that are in alignment with the wishes of the donors it represents. Harriet Derwingson, President of Sonoma Valley Fund, said, “At Sonoma Valley Fund, our grant committee works hard to see that the donors’ wishes are honored. Successful applications will be those that most clearly address the wishes of the donors and the criteria outlined for the specific grant program.  In addition, we seek to verify that the organization making the application has the capacity to complete the project or program for which they are seeking the grant.” 
Although grant applications only account for a quarter of most nonprofits’ budgets, they are probably the most time-consuming part of a nonprofit leader’s job. So, the more targeted these applications are to the specific funding requirements of the foundation or business granting the funds, the greater the chances of success will be.

Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and government agencies to better serve their stakeholders. She assists her clients with strategic planning, organizational and personnel performance improvement, fund development, and community relations. She is President of Impact100 Sonoma and can be contacted at bjbischoff@bjbischoff.com.

Far too many donors make a modest contribution to a nonprofit, receive a thank you note from the executive director, and then never hear from the organization again — until the annual direct mail appeal at the end of the year.

Or a donor may purchase a silent auction item for less than $100 or a live auction lot for over $5,000 at a nonprofit’s annual gala, receive a standard thank you note, and still never get a personal follow-up communication from anyone involved with the organization.

These types of donors obviously have some level of interest in the organization’s mission. They are all prime candidates to forge a deeper relationship and make a stronger commitment to the organization, but they must be invited to do so.

According to Kate Eilertsen, Executive Director of the Sonoma Valley Museum of Art, “In spite of all the technology we have at our fingertips, I have found an in-depth, personal conversation with a donor is the most effective use of time and leads to the most successful fundraising.” She added, “There is absolutely nothing more effective than sitting down with someone face-to-face, to not only talk about the mission, vision, and programs at the museum, but also to hear what they have to say about what we are doing.”

In developing strong relationships with donors, it is important for nonprofit leaders to take the time to get to know their donors and prospective donors. They need to view donors as potential partners in improving the community’s quality of life. They need to get to know the donor as a person, by uncovering his or her goals, interests, feelings and beliefs. They need to be curious, ask questions, and truly listen. Having a genuine conversation is the best way to determine if an organization is the right philanthropic match for a donor.

Kathryn Perry, deputy director of development at Hanna Boys Center, said, “When considering how to approach a prospective donor, it is important to first ascertain if the charity and donor are a good fit. Do you know what he or she values in an organization and in a program? Do you know his or her philanthropic interests? Knowing if the charity and donor are a good fit is the initial step in fostering healthy stewardship.”

When a donor finally makes that commitment to provide financial support to an organization, it is essential for that donor to be thanked immediately and over and over again. A fundraising best practice is to acknowledge a charitable donation no later than 48 hours after receiving it. When donors receive a nonprofit’s annual report, the first place they look is in the donor recognition section. So, it is critical that the donor’s gift is attributed correctly, with no spelling errors in the name. Perry added, “Fostering relationships doesn’t have to be expensive or time consuming. A short impromptu note to a donor is always welcome, especially if it highlights a recent activity that their gift helped make possible. A photo is worth a thousand words, too.”

It is important to thank donors in personalized ways. Consider inviting them to lunch, go wine tasting, attend a community event together, or participate in special phone briefings or site visits. Leslie Carlson, development director for the Sonoma International Film Festival stated, “We have at least one special event during the year only for sponsors and key donors and offer VIP access and treatment at the festival…we are engaged with sponsors and donors through weekly e-blasts, updating them on year-round events, screenings and news about the festival.  We try to have face to face meetings, consistent phone conversations, and maintain a personal relationship.”

On-going communication with donors that develops into a true friendship and trusting relationship can ultimately lead to a legacy gift. Harriet Derwingson, president of the Sonoma Valley Fund, believes, “Regular donor communication and interaction not only ensures that gifts will continue this year and next, but also encourages donors at all levels to leave a bequest to your organization as part of their will or trust. Donors need to know that they don’t have to be wealthy to make a difference, and that they can structure their gift to match their philanthropic goals. It’s important to celebrate not only large bequests, but smaller bequests from people who have a passion for the organization.”

So, with careful cultivation and a true desire to form lasting friendships with individual donors, a thoughtful nonprofit leader can turn that $50 silent auction purchase into the start of a relationship that can transform the organization and the community it serves.

Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and government agencies to better serve their stakeholders. She is President of Impact100 Sonoma and can be contacted at bjbischoff@bjbischoff.com.

Before an organization’s board of directors decides to embark on a capital campaign, it is wise for the organization to determine the feasibility of taking on such a large fundraising commitment. Part of a feasibility study includes having the organization identify its case – defining in writing what the organization needs and why it needs it. In addition, the organization’s leadership needs to take an honest look at itself to see if its internal operations are adequate to handle a capital campaign. Also, the organization should determine if there are sufficient individuals, businesses, foundations, and other grant-making entities willing to fund the case. This upfront research to determine a nonprofit’s readiness for a capital campaign will significantly reduce the time and resources required to complete the campaign.
“A capital campaign allows an organization to ‘strut their stuff’ by way of a feasibility study. A study is a perfect opportunity for the organization to gather information regarding their visibility in the community, feedback for support for the project, and affirmation of their ability to raise the funds. The answers to these questions will help the organization in the decision making process: proceed or delay the campaign,” said Madolyn Agrimonti, president of the board of the Sonoma Community Center and first vice chair of the Sonoma Valley Hospital Healthcare District board of directors.
For a nonprofit to conduct an internal assessment of its readiness for a capital campaign, its leadership needs to ask the following questions:

Do we have adequate staff, including support staff and personnel experienced in fund development, to handle a capital campaign?

Is our board strong enough and committed enough to support the campaign with their financial resources and their time to identify, cultivate, and solicit donors?

Does our organization have a positive public image in the community? Do we communicate regularly with our constituents so that they know what we do and how we do it?

Have we developed a strong group of volunteers through our annual fundraising efforts?

Can we identify our top 10 donors who will be leadership gift prospects and the top 100 donors who will be major gift prospects?

Is our Executive Director well-respected in our community and willing to invest 40-50 percent of his or her time to the campaign?

Do we have adequate technology to support a donor database; record multiple year pledges, planned gifts, and matching gifts; and generate reports?

Do we have a budget for donor recognition, communication, training, counsel, equipment, travel, and meals to spend on the capital campaign?

Barbara Cullen, executive director of WillMar Center, said, “Our agencytook time to put key elements into place before we launched our campaign, such as completing a full communications upgrade, including computer systems, customer relations, and database programming. With these tools in place, along with a committed staff, strong volunteer base, and the generous support from the community at large, I know we will reach our campaign goals.”

In determining external readiness for a capital campaign, a representative of the organization or an experienced consultant usually conducts approximately 40 confidential interviews with major prospects to determine the public awareness and the support that exists for the organization. During this external assessment, the organization’s leadership uncovers the answers to these questions:

What are the community’s perceptions of the organization?

How well are the staff and board members respected in the community?

Are the campaign goals clear and realistic?

Is the campaign dollar goal attainable in the specified timeframe?

To what extent are the people interviewed willing to contribute their time and money to the campaign?
The results of a capital campaign feasibility study will enable a nonprofit to clearly state its case for why it needs to raise funds; analyze its potential for fundraising success; establish a total fundraising goal; and develop a timetable and budget for the campaign. If the feasibility study uncovers that the organization will not be successful, then it would be unreasonable for the organization to embark on a capital campaign until changes are made to the organization’s infrastructure, public perception, and prospective donor commitment.

Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and government agencies to better serve their stakeholders. She assists her clients with strategic planning, organizational and personnel performance improvement, fund development, and community relations. She is President of Impact100 Sonoma and can be contacted at bjbischoff@bjbischoff.com.

There are several reasons that nonprofits merge. Research commissioned by CompassPoint, a San Francisco-based nonprofit consulting and research firm, identified the major reasons as a current or imminent financial crisis; the departure of an executive director; a move to reduce competition; a strategic growth strategy; the struggle to recruit or retain staff or board talent; the recommendation of a funder; and a request from another organization. CompassPoint research cited that the benefits organizations seek through a merger include the ability to continue to serve its clients or its geographic region; increased community impact by integrating compatible programs; reduced overall administrative costs; stronger strategic positioning with clients, donors, competitors, and policy-makers; stronger board of directors; and stronger staff management.

Organizations that share a mission are prime merger candidates. According to Kimberly Blattner, La Luz board president, “The primary reason for our merger was that we had significant mission, program and identity overlap.  We wanted to eliminate duplication of services to the same community.  Vineyard workers and their families were already using La Luz for English and computer classes and all the other referral services we provide.”  Tim Boeve, board president of SVTS said, “The fact that both agencies shared a similar mission with teens and reached out to a similar teen population brought us to the table.” He added, “There was a longstanding sense among a few of the principal board members from both organizations that this was simply the right thing to do and the right time. Then there were the usual reasons of reducing redundancy and combining our respective board strengths to yield an even better working board. Both organizations struggled with gaining recognition in the community as relatively small players, since neither had a full-time executive director or any support staff.”

If a nonprofit is considering a merger, there are specific steps its leadership can take to ensure success. The first step is to form a merger committee that includes the board chair, the executive director, and respected board members. Then, the committee should consider prospective merger partners by identifying nonprofits that provide services the organization’s clients want and nonprofits that compete for funding and clients. After identifying prospects, a board member should initiate an informal discussion with the prospective partner’s board chair or executive director. In an effort to explore a possible merger in good faith, David LaPiana, a nationally-recognized expert in nonprofit governance, recommends that the board of both prospective partners pass an “Intent to Merge” resolution. The next step is the development of a “Merger Agreement” which identifies common timelines; mission and values; board and staff composition and leadership; budget; organization name and structure; programs; and location. An important next step is to conduct due diligence that includes identifying existing debt; pending legal issues; labor agreements; membership issues; bequests and endowments; and committed grants and contracts. Finally, the organizations should work with legal counsel to turn the Merger Agreement into a legal document, launch the merger, and perform the organizational integration.

Regarding the SVTS merger process, Boeve said, “The transition went quite smoothly in part because we brought in an outside consultant who helped us through the process. There was also a high degree of interest in making the merger work on the part of both boards. The hardest part really had to do with getting our separate bookkeeping systems in sync.” Kimberly Blattner stated, “I would recommend that any organization contemplating a merger be very deliberate in their strategic restructuring and make sure that all their donors and stakeholders are fully informed of the process.”

Nonprofit leaders should realize that mergers may not be a panacea. It is unusual for a merger to combine two equal parties; instead, one of the nonprofits frequently turns out to be stronger than the other. Rarely do mergers result in an immediate reduction of administrative costs. Research indicates that cost reductions are not usually realized until the third year after the merger. And, not all mergers result in a new organization that’s stronger than the two pre-merged organizations. In the case of La Luz, Blattner commented, “With one executive director and one administration building we were able to cut costs and reduce confusion for the Latino community about where to go for what information. The only real difficulty we experienced was having to cut some personnel, which is always unfortunate.”  Boeve said, “The board is in the process of seeing where the respective strengths of our two program directors lie and how they can effectively complement one another. However, all the programs that comprised our respective organizations are still going strong. I believe this merger will result in our teens being much better served because we have brought into one entity two groups of people who care very much about helping young people succeed. I think it is safe to say that the $100,000 Impact100 Sonoma grant – awarded to SVTS May 7 – resulted from our merger and that neither organization had the capacity on its own to warrant serious consideration.”

Even if a nonprofit ultimately decides not to merge, the merger exploration process can produce benefits that deepen an organization’s understanding of itself; expand the organization’s collaboration partners; and increase its respect in the community.

Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and government agencies to better serve their stakeholders. She is President-Elect of Impact100 Sonoma and can be contacted at bjbischoff@bjbischoff.com.

In a national study of 2,800 leaders conducted by the Community Resource Exchange, researchers discovered that nonprofit leaders scored higher in 14 of the 17 leadership dimensions. The most dramatic differences appeared in skills related to the sensitivity to people and situations, and the use of personal versus hierarchical power. 

“Contrary to intuition, the smaller the nonprofit, the more intense the executive’s role,” said CRE’s Managing Director, Jean Lobell. “Despite the stresses, amazing individuals with incredible skills rise to the task each year to lead organizations with important missions, driven by not much more than a passion to help others.”

Sonoma Valley is home to an array of small nonprofit organizations, led by talented, passionate executive directors with strong leadership skills. When asked what it takes to successfully run a Sonoma Valley nonprofit, Annie Bacon, executive director of Seeds of Learning, said, “Creativity, flexibility, the ability to listen and discern, and also to know when to move forward down your own path. We have to be especially business savvy, in order to always maintain a healthy bottom line.”  Kathy Swett, executive director of Sonoma Community Center, added, “Having passion for the mission, playing well with others, relentless pursuit of the vision, and patience,” as the top skills needed by local nonprofit leaders.

Cynthia Scarborough, executive director of Vintage House, said, “Successful leaders share the ability to see the big picture within our organizations, and to hold that vision clear over time.  We think strategically, incorporating demographic changes and trends into our planning. We grow strategically, seeking to keep revenues and expenses in balance when adding new programs or staff, and building reserves to carry us through lean times and the inevitable unforeseen circumstances. We stay alert to new program and funding opportunities, and avoid pursuing either when they’re not in keeping with our mission or our current capacity.” 

There are several possibilities as to why nonprofit leaders received higher ratings on their leadership skills in the CRE study. One may be that since compensation is not the incentive that it is in the for-profit world, nonprofit leaders must use other means, such as sound leadership practices, to motivate people. Another reason may be that with limited resources, nonprofit leaders must rely on the multidimensional aspects of their leadership role to accomplish their work through a wide variety of constituents.

One of Sonoma Valley’s newest executive directors, Anna Pier of CommonBond, discussed the multidimensional aspects of leadership by stating, “With only a couple of months at the helm of CommonBond, I know that this is the job for a strategist. I believe that a good leader listens, and listens again, to clients, to staff and volunteers, and to colleagues.  A collaborative spirit, a great sense of humor, a genuine interest in people, and willingness to roll up sleeves for hard work – these are hallmarks of leadership in an executive director.” 

The opportunity for nonprofit leaders to continually develop new skills and strengthen existing skills is essential. Richard Hacker, executive director of Friends in Sonoma Helping (F.I.S.H.), commented, “It requires a commitment to life-long learning. The Volunteer Center of Sonoma County has wonderful workshops and trainings for executive directors and nonprofits in general. Participating in the Sonoma Valley Executive Roundtable gives one an opportunity to share with peers. Having a personal coach is very helpful. You have to be willing to take feedback anywhere and at any time.”

Jeni Nichols, president of Sonoma Leadership Systems, has devoted her life to providing leadership development opportunities for nonprofit and for-profit leaders. Regardless of the type of organization the leader serves, she believes, “The best leaders are credible, have a vision and are vulnerable. It all comes down to leading from the heart and being honest with those you lead.” 

Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and government agencies to better serve their stakeholders. Contact her at bjbischoff@bjbischoff.com.