There is a special satisfaction watching the growth of those I work with, for in most cases these assignments last a year or more. In terms of leaving a real impact on an agency, there is no doubt in my mind that mentoring the CEO is the most valuable legacy I will leave from my 15 years of consulting.

Why is this so important?

First, it’s so lonely at the top. CEO’s are constantly dealing with problems alone, not comfortable talking with staff or board members about their real doubts or fears. They are paid to be the leader! My guess is many use their spouse as their confidant and advisor. My mentoring relationships provide a comfortable, confidential relationship where doubts can be expressed, alternatives weighed, and advice sought from someone who has been there before and has learned though success and failure. It’s not an academic exercise. It’s the give-and-take that will inevitably lead to a solution which just needed to be explored with someone in a secure environment.

Second, most CEO’s get to the top without any real experience in managing a complicated organization. No matter what anyone says, I believe it’s harder to be a nonprofit CEO than a corporate executive. The corporates don’t have to deal with a voluntary board that often is looking to them for guidance, and yet at the same time are their bosses and constantly evaluating them. I was an executive for 30 years and always found this to be the most challenging, and frightening, part of my job.

Third, mentoring provides on-going on-the-job training. The learning experiences take place in the context of real, at-that-moment, problem solving. The ideas can be tested immediately and evaluated so that adjustments can be made. These are not somebody else’s case studies. The decisions the executive makes will have a direct bearing on his/her success and growth.

Over the past several years I’ve had about a dozen mentoring experiences. Most of those I’ve worked with continue to be my friends, and I enjoy the breakfasts and lunches we periodically have to get an update and renew our friendship. When I look back on my professional career, these will be the experiences I remember.

Finally, if you know of any nonprofit executives who could use some help, please forward them this post.

Executive Directors who face this prospect every couple of years have two dilemmas. How to get anyone to accept the job, and once they do, how to quickly help them learn how to do the job.

The most constructive answer is to not let this happen. A good Board builds a succession plan, having a vice-president or a president-elect in the wings learning for a year how to be a chair. This should be the gold standard. Even if the Board moves in that direction, they need to use that year to make sure the future Chair is using that year to learn the skills and information needed to assume that role.  Some organizations, such as Rotary, have a formal training program, and it shows. New Presidents may be nervous at first, but they have been taught what to do.

But most nonprofits don’t have that luxury.  The Executive Director, who hopefully has been on the job for a while, becomes the coach.  There are also several agencies around town that conduct Board training programs. There is lot’s of good material online, particularly at http://managementhelp.org/freenonprofittraining/program-description.htm, which has some very well written, simple forms which the Board Chair and Executive can go over together.  Urge agencies to join Board Source, http://www.boardsource.org/, the premier training organization in the US for Boards of Directors.

When I face this issue I focus on two aspects of the Board Chairs job:

1. How to conduct an effective Board meeting.  This involves learning how to be a facilitative leader, allowing for full discussion while keeping the Board meeting focused and on time. Too often those items at the beginning of the agenda get all the time they need so that items at the bottom don’t get discussed at all.  Allocating time for each item, and holding the Board discussion to those time limits, will assure that each item on the agenda gets the time it needs.  You may even want to appoint a time-keeper to make sure the Chair covers the agenda. Chairing a Board meeting is not that difficult, and the new Board Chair should get a quick over-view of Robert’s rules of order. The Board may also appoint a Parliamentarian who can give the guidance on rules of order when it is needed.
2. More difficult is the task of managing the business of the Board, the organizational structure, committees, executive director’s evaluation, and giving the leadership needed without being an autocrat.  People from the private sector who are used to giving orders have a real tough time with this. They are not the boss, and must work with the Executive and other volunteers to get the most out of everyone. In this case, success comes from the relationship between the Executive and the Chair.  Most execs have some experience in Board management, and a good Chair relies heavily on the skill and knowledge of the ED.

The more emphasis the Board places on Board orientation and training, the more prepared will be members to step into leadership roles in the agency. Don’t treat Board training as just ‘fluff’. It’s really the foundation of an effective Board and a successful agency.

Finally one of my client did just that. She told me she has ‘phone-a-phobia’, hates making calls, but got up the courage to call a donor who had just sent them $1000. What happened? He sent her another $1000. (I didn’t make this up). I have heard of agencies getting large unsolicited gifts after they made a call. They didn’t ask for money – just said thank you. How easy is that!

And yet in probably 95% of donations, that does not happen. Why? Because most people hate calling strangers. (Me included!)

So what do we do? Just ignore the suggestion, spend all your time planning more expensive events, and ignore the rich gold mine of funds that can be yours by giving just a little TLC to those who give you their funds.

Stop worrying how much they give. Be more concerned about the giver than the gift.

Please do this. After every special event, within ten days, call all the people, especially the strangers, who were at your event, and thank them for coming.  If you have a hard time doing it at home, bring the names to your next Board and committee meeting and do it collectively. Somehow that makes it easier for some.

And when the new funds start flowing in, or people give you more money next year, it will be because of that one minute telephone call that you made because you read this blog.

One of the greatest pleasures I get in consulting with nonprofits is the variety of people I meet and the range and quality of experiences I am exposed to. I know I’m making an impact in helping each client build more effective organizations, but at the same time I’m growing as a person. Each of my current clients has brought a new dimension to my life that I’d like to share.

Tony Lore, the founder and director of Youth Mentoring Connection, who I have been mentoring for several years, has created one of the most effective youth services in the country. His depth of understanding of these kids, often from violent and hopeless situations, enables his program to reach into their hearts, and spring them away from their path of crime towards a life of hope and achievement. When I listen to him teach others how to ‘find the gifts’ in their behavior, I realize we all have the capacity to make even our adversaries into friends. It all starts with a simple, “I see you’. For the first time, someone really is listening to them. This is the first step.

In a similar manner, my newest client, The Ojai Foundation, has adopted the ancient Council to help kids, prisoners and others, to stop talking and begin listening ‘with your heart’. Whether it’s at their beautiful Ojai site or in LAUSD schools or the Lancaster Prison, people are transformed by being able to talk without being interrupted, to be valued for what they say, and to know that people are really listening. It has certainly helped me ‘keep my mouth shut’ so I can really hear what others are saying instead of ‘stepping on their last words.’

Another multi-year client is UMMA, the Muslim Health Clinic in South LA. As a Jew working in a Muslim organization, I see the real compassion and humanity that our Muslim brothers and sisters bring from their faith, and I identify it with my own traditions. I have learned of the strong ties the communality and bond between the two faiths, and try to help my Muslim-phobic friends realize that these people are not like those we see in the news. And I must admit, I have never been treated so warmly by any group of people.

When I began working with the Vanguard Cancer Foundation I knew very little about Cancer treatment. Now having been exposed to the work of Dr. Robert Nagourney, who has developed a personalized assay-based treatment plan for each patient, I urge anyone who has developed serious cancer to seek out his advice at Rational Therapeutics. The depth of gratefulness of his former patients and their families has enabled Vanguard Cancer Foundation to raise thousands of dollars to support his research, and we hope to do even better.

Then there is my 6-7 year journey with SOSMentor, an organization attacking childhood obesity. I began as a consultant, became the president, and am a life-long partner with this wonderful organization. Here I have met Carole and Bob Donahue, the founders, both retirees of LAUSD. Since their retirement they have devoted their time and fiscal resources to build an amazing organization which finds itself in the limelight as this terrible condition is getting such national attention. I have seen first-hand what amazing impact can be made with very little resources. Thousands of children and their families have become aware of the need for healthy eating and exercise – all done on a shoestring budget. Who says all you need is money – all you really need is dedication and creativity.

Each of these clients, and many others I have worked with, has added an important dimension to my life. I am a more open, compassionate, and engaged person. Thanks to you all. Hopefully I will be able to use these skills and insight as I work with more and more nonprofits.

In my role as consultant I often find myself facing the BIG THREE obstacles that keep Boards from moving ahead. These are three statements that I keep hearing from Board members that can really put a damper on a board meeting.

1. We’re in a recession so we can’t raise more money.
2. We are the best kept secret in town.
3. We don’t know anyone to put on the Board.

The greatest joy I get as a consultant is to challenge those statements.

1. The Recession: The agencies I am working with are raising more money than ever, because they are focusing on donor cultivation, particularly new donors. Those who are seeing their levels of support drop are in a rut, doing the same things year-after-year. Effective fundraising is a retail effort, focusing on the donors, not their money. People will not give until they really committed to the agency’s mission and believe that their gift is making a difference in someone’s life. We all too often stress statistics rather than stories. One good, moving story, told first-hand, about how the agency’s service has changed a life, is more valuable than a page of impressive statistics. My job becomes helping the board understand that to effectively raise money they must reach as many people as possible with how what you are doing is really important, and how they can help make a difference.

2.The Secret: We will always be unknown until we clarify our brand and our message. Board members are our ambassadors, out in the community spreading the word. Yet ask each Board member what they are saying when they explain the agency to others, and you will wonder if they’re all talking about the same agency. We must spend time with the board members clarifying their ‘elevator speech’, that is, what can they say in as long as they are with someone on an elevator. Generally, it’s one sentence. Make sure they agree on what that one sentence, that powerful sentence, should be. Then rehearse it, and send it out into the world. That’s the first step to spreading the word. Remember, we can’t really tell our agency’s story unless we can get someone to listen. We need to rehearse that ‘hook’.

3. Board members: Do you ask Board members to reach out to potential board members only to hear them say, “I just don’t know anyone?” It’s often a futile exercise. A much better approach is to take time at a Board meeting to do a board assessment. List the skills and other resources you need on your Board. Determine what skills and resources the current board members bring. Then try to fill in the gaps. It’s much more productive to ask, “We need someone to help with our publicity; who knows someone in the marketing or PR business?” Or, “We all seem to live in the same area and know many of the same people; who knows people who live in…, or works for an accounting firm, or who is Hispanic, etc.?” As people struggle collectively with these questions, new names will emerge that were previously hidden. It’s worked time and again.

Another route is to explore your donor list. Find out who has been supporting your agency and develop a plan to reach out to them. Don’t just contact people when you want money from them. Treat them as friends. Let them know what’s going on. Invite them to see the programs in action. You will find that sometimes the gold is in your backyard, not in those hills far away.

That’s the joy of being a consultant. I can share my successes and give hope to those on the board who are worn out discussing budgets, funding, and listening to what happened in the past (reports) rather what needs to happen in the future (strategies). Sometimes it takes an outsider to make this happen.

First, we must constantly stoke their passion for our cause. We often get so bogged down in the minutiae of ‘doing’ that we forget why we are doing it. In long board meetings or at orientation of volunteers, we often forget to constantly stress the impact our services on our client’s lives. We don’t provide enough opportunities for our volunteers to be touched emotionally by the moving stories our clients can tell about how their lives have been impacted. Without constantly reinforcing our value to our clients, our board and volunteers will lose contact with those feelings that got them involved in the first place.

Second, we must repeatedly make our case for the need for funds and what we can do with them. In this age of cutbacks, we must talk about how these cuts will affect people’s lives. We must stay with their stories and not get lost in the statistics. Our volunteers must feel the pain and loss that each of our clients will experience when they must be cut off from receiving service because of lack of funds.

Third, we must urge our volunteers and board members to broadcast our message to more people. They should not be asked to solicit funds until a potential donor is so moved by our stories, that when we can present them with an opportunity to give, they do so willingly. If volunteers view their job as sharing their passion for our mission rather than soliciting money, they will do so willingly.

Fourth, we must create a comfortable environment for our volunteers. We can’t take for granted anything, like making calls, knowing what to say, having the proper information available, or overcoming people’s natural shyness or reluctance to do something new. That’s why doing these activities in groups is very important. This provides a safe haven for those calls to be made, the tours to be given, the interpretations to be presented. When we make calls to say “thank you’ for donations, we should do them when the board is together or bring volunteers together, where they can offer support and cheer each other on. When they go through the process once or twice, they will feel comfortable and be willing to more on their own.

Fifth, we must always say ‘thank you’ and celebrate success. Don’t just say ‘thank you’ when the project is complete, but encourage people with praise every step of the way; when they agree to participate, when they make their first contact, when they bring the prospect to an event, when they do a good job in making a presentation – we can never say ‘thank you’ enough. This is the payment they get for their volunteer work. And when success has been achieved, have a celebration…lots of kudos, lots of laughing and cheering…and gifts.

If we recognize that asking for money doesn’t take place until a number of cultivation steps have taken place to help the donor first understand, then appreciate, then want to give, asking is counterproductive. Once the donor has become a believer, ‘the ask’ comes naturally-if the needs are shared in financial terms. “With this amount of money we can do this…”. You will be surprised how easy this will be if your board and volunteers are led through the five steps above. They will get such a kick out of it that they will want to do it again and again. Sounds naïve – but just try it.

Most agencies rely on major events as a way of raising funds. They often invest a great deal of money and time into putting together the event, invite their friends and acquaintances, hold an auction or use other tools to supplement the funds realized. What they often overlook, and this is critically important, is the experience of those attending the event.

We need to ask; did they have a good time? Did they feel welcome? Was this just another obligatory fund raising chicken dinner or did they leave knowing more about the agency and invested in its cause? The purpose of this paper is to briefly examine the real value of an event. No matter how much money was raised, these visitors, properly cultivated, have the ability, and often the willingness, to give more.

This is where the role of the Board is critical. Many agencies place their Board members at the head table or tables. They do not get to interact with the many strangers and guests who came to the event knowing little about the agency. These guests sit with their own friends, who also may know little. Therefore, the Board (and staff) must serve as table hosts, greeting each guest personally, finding out what they know, and whenever possible, interpreting the impact of the services on the community.

The officers and executive staff should also mingle and introduce themselves. Much like staff of a company at a sales event, they are working, not spending the whole evening with family and friends. The hosts at a wedding or other family event try to say hello to everyone; so should the Board and staff. We are trying to find out who these people are and how can we better reach them.

Guests should be greeted as they arrive by people clearly identified (badges) as agency Board members, and thanked for coming. Board members should also say goodnight to them as they leave, thanking them for supporting the agency, and asking if they had a good time. This hospitality, along with other efforts of friendship and warmth, will leave everyone feeling really good about the event (assuming the food was edible), and these good feelings will spill over to enable future contacts.

It is what happens after the event that is where the real money can be raised. The Board should be alert, as they mingle, for people who seem particularly interested in the agency and its service. This is where we can find future Board and committee members. (Board members should make a list of interesting people they met). We should also be aware who we meet who might have the financial resources to really step forward with a major gift. The event is the first step in the cultivation of that future gift.

Finally, while constructing the evening’s program, make sure the focus is primarily on the agency, its services, and the impact it makes on the lives of its clients. Reach your audience emotionally, through stories, speakers (often clients), or a great video. I have been to many events where the focus was so much on the honoree that I left wondering what agency sponsored the event and what do they do.

Just remember, the real value of an event is friend-raising, and if you raise a few bucks along the way, so much the better.

What is the most important relationship in a nonprofit agency? In my opinion, it’s the one between the CEO and the Board President. Almost all nonprofit management literature highlights the critical relationship between the CEO and the Board of Directors. Board Source says “exceptional boards govern in constructive partnership with the chief executive, recognizing that the effectiveness of the board and the chief executive are interdependent.”

I agree completely, but it is difficult to a CEO to have a good relationship with a group of volunteers, constantly changing, and with different backgrounds and expectations. What is possible is for that chief executive to do his/her best to make sure that whoever becomes president is well-qualified and properly trained, and that there is an open and supportive relationship with that president.

From my thirty years as CEO and more in consulting, this is a challenge for any CEO. Board presidents usually serve 2-3 year terms. I used to feel like every time that officer changed, I was in a new marriage. It’s real hard work for the CEO to adapt to the style and availability of each new president, many with completely different management styles and expectations. So here are a few tips that I have found helpful.

1. At the outset of a new president’s term, the CEO must establish the communication scenario that matches the president’s needs. Do they want e-mails or phone calls? When is the best time to get their undivided attention (before work, after work, weekends, etc.)?

2. How much information do they want? Do they want lots of detail or just an overview of what’s going on?

3. Do they understand the differing roles of the CEO and the president? Do they agree on separate lines of authority-CEO handles staff issues, president does the same for board matters?

4. How much help do they want in preparing the Board meeting agenda?

5. No surprises! Keep the president fully appraised of any problems, even if that includes issues that should not be shared yet with the board, i.e. problems with staff or clients, early signs of financial concerns, possible public relations issues brewing. The CEO must be able to share the good and bad candidly without feeling vulnerable that this information will be used against them. Obviously they must have a trusting relationship with the president.

6. The CEO must always be aware that the President usually has another job and a family-life, so keep communication clear and simple.

7. When the CEO finds himself in an uncomfortable situation that might compromise his/her role or affect the community, he/she must be able to turn to the president for assistance and guidance. This is where the president, and other board members, can be of real help. The CEO must remember at all times that the ownership of the agency belongs to the Board, and he/she is their agent.

8. Both the CEO and the president must insist on annual reviews. I have heard so many CEO’s say, “If only I knew”.”

9. They both should realize how important a few simple words of public support or praise can go a long way, in either direction. We must always remember that board members are volunteers, and need to feel they are making an impact through their Board work. That is the leadership’s responsibility.

One of the greatest casualties among non-profits is the burned-out CEO. Being the head of a nonprofit has always been a challenging job. The long hours, inadequate resources, and sometimes uncooperative or negative Board members can all take their toll on a person. Still, most people make nonprofits their careers because they know they are devoting their lives and livelihoods to making this a better world. At the end of a tiring day, they always came home feeling that somehow they did something good for someone.

For many of my colleagues, the straw that breaks their back is seeing all that they have worked so hard to create disappear, as large portions of their funding evaporates and significant services have to be cut. Meeting payroll was always tricky, but for many it is now virtually impossible. Letting staff go is personally wrenching, for these are the people who have selflessly given of themselves to enrich and ennoble the lives of others… to only be sent off to join the ranks of the unemployed.

What about all those wonderful people who been served and often saw the services transform their lives: the teen gang-bangers who are now committed to education, the addict who is recently sober and getting his life together, or the senior who will lose the companionship of others when the program closes? Many of these people owe their life and their health to the services we have provided, and for some, we can’t afford to continue provide that life-saving service.

I feel sorry for my colleagues. How can society turn its back on the neediest of the needy? What happened to the compassion and benevolence of this great American society? How is the executive supposed to rise above it all to provide inspirational leadership when inspiration is the last thing he/she feels?

The only hope is that this too will pass. Our society goes through these cycles, and this Recession will eventually bottom out and slowly funding will return, in a year, two years, whenever. In the meantime, we must be ingenious in ways to keep the services flowing.

In my opinion, at least two options must be tried:
• First, we must turn to the private sector, and particularly to individuals, to open their checkbooks. We are all suffering from reduced disposable income and charity fatigue, but a good story that is told well can still move people to open up their wallets to a worthy cause. We are, by nature, a generous people. The challenge is to find the inspiration in our successes and in the stories of those who need us, to reignite the passion and energies of our Board and our supporters.

• Second, we must more effectively utilize volunteers. Not just for clerical help, but to fill in wherever possible in administrative and even direct service. We must reach out to the retired and unemployed to devote some of their talent and time to step into the breach and keep these services going while we search for new income sources. Not only will these volunteers help keep our services going, they will bring with them a new enthusiasm and energy that we need so desperately.

A SHOT OF INSPIRATION CAN GO A LONG WAY

In my experience it has been that a little bit of inspiration and enthusiasm can go a long way. We must return to our organization’s Mission and Vision. We must reach out and ignite the dreams of others, and we must make fund-raising fun. The resources are there. We need to be awakened and renewed by realizing that if we share our dreams, others will join us.

In recent months, I have been fortunate to be engaged by a number of new nonprofits who have just received their 501(C) 3 certification and want to get their new creation off to a good start.

In these difficult financial times, when many established nonprofits are struggling for survival, it’s surprising that anyone would want to start a new agency. I am amazed and delighted by the enthusiasm and self-sacrifice of these founders, who have found a cause to which they want to devote their lives. That’s the enterprising drive of Americans, but in this case it’s directed not at making money but to leave their own personal legacy by helping others.

These groups that I worked with were established to:
• provide support services for a children’s hospital
• support an orphanage in Vietnam
• provide scholarships to a private school

Fortunately, they all recognize that while they may have the passion and commitment, they really did not know how to develop a board, raise money, or organize volunteers. They all brought in significant life and professional experience, but did not know how to apply this to this all-volunteer organization.

My approach
I have been able to spend about 90 days with them and their small group of supporters to create a viable Board of Directors, committees and task forces, create a simple strategic plan with a business plan, and a Case for Giving to begin to raise money.

How do I do it?: I try to use the language and tools which they brought from the private sector, and transfer these skills to board organization and fundraising. They were able to create functional structures:
• to manage an all-volunteer organization,
• understand that fundraising was not about asking for money but creating opportunities to give,
• and the need to create sustainable annual income if they were to survive.

The experiences have been amazing! Using the energy and commitment of any new startup, we have shifted the focus from just providing services to creating an infrastructure that will sustain the organization once the initial energy has abated.

Success:
They will enter Years Two and Three with a significant group of leaders who:
• understand their Mission and share their Vision;
• know how to effectively utilize volunteers,
• and have begun attracting donors and others who can provide pro-bono services.
Now they can concentrate on growing their program.

Grants:
One of the greatest challenges is to help them understand that they can’t build their initial income on grants, which are increasingly difficult to get. They must create the dreams which individuals can get excited and would be willing to support.

Larger boards:
Quickly grow their board from the original handful to at least 15 people so they can tap into the resources of a larger cross-section of the community. By making their Board meetings inspirational, educational and strategic, they have learned to leave the work of the Board to committees and task forces.

As one new board member said, “all this is just common sense, but we needed someone to point it out to us.”

Building for the Future:
Knowing that the rate of survival for nonprofits is about the same as any new small business, not very good, they are building a base for the future. Now their legacy can survive the founder. After all, every nonprofit, from Goodwill Industries to the Salvation Army, started with the efforts of one person who attracted more and more people to his cause. Now look at them!

Maybe someday these agencies will also become very recognizable names. They are off to a good start.