Welcome to Zero!

‍

Several years ago I was talking with a friend (let’s call her Janice) who just completed a stellar year in fundraising for a local cause. Janice’s work was really impressive. Even though her role was only part-time as a mid-level fundraiser, she managed to secure more funds than some full-time major gift officers!

We were meeting over breakfast, and I raised my coffee to clink our cups and toast her great work. She smiled briefly and then said, “Yeah…well now that the new year has begun, we’re talking about fresh goals and the message from leadership is basically, ‘Great job last year😀… Welcome to zero!!’🫤.”

My heart sinks as I remember this story. The lack of awareness on the part of leadership was stunning. They combined the revenue Janice was credited with for the previous year then added a 20% increase. I saw at least 3 key downfalls with their plan:

1. Part of Janice’s revenue included a bequest of $175,000 from a giver who passed away unexpectedly. Janice inherited the relationship, and while she  maintained a great relationship with the late giver and family, she had nothing to do with the original estate plan and almost no training on how to develop a similar estate plan with future prospects.
2. Four years earlier, Janice secured a new three-year commitment of $150k per year ($450k total) from a giver who was super clear that they would *not* be giving beyond the three-year commitment. This giver happened to be an acquaintance of mine and I knew they were in the process of sunsetting their family foundation. Janice expressed her concern to the leadership, realizing this commitment was an anomaly that could not be easily replaced.
3. Janice wasn’t compensated, deployed, or resourced as a major gift fundraiser. She literally had to wrestle with management for a travel budget to connect with high net worth prospects.

Past performance is no guarantee of future results…

In the investment world we see this phrase all the time. While charity leaders want to wiggle and squirm and argue about how the fundraising world is different (I’m pointing three fingers at myself), we honestly understand how similar it is. Are you planning for one of your top bequest patrons to die unexpectedly? Do you really believe that your mid-level fundraiser is going to happen upon another unicorn giver who will make a six-figure multi-year commitment? It’s highly unlikely. Janice was credited with $900,000 in gifts the previous year. A remarkable amount for a part-time fundraiser. Yet the leadership increased her goal to $1.1m without acknowledging the fact that $325,000 from the previous year was absolutely not going to reoccur.

Back to my breakfast with Janice.  It’s not hard to guess the direction our conversation took. Janice was looking for a way out, tired of working for the cause even though she loved it and felt proud of what she’d been able to accomplish. Less than one year after our breakfast meeting, she moved on.

How unfortunate.

It’s the very definition of an ‘unforced error’ by leadership. They lost a good and productive employee in the name of… what? Increasing the goal? (definitely) Having more impact in the field? (possibly, although it was never discussed)

Lest you think I’m taking this one experience out of context, making a mountain out of a molehill, I can sadly assure you that some version of this story is regularly shared with me by clients and friends in the industry.

So…how do leaders avoid these pitfalls with their major gift fundraisers? Here are six helpful strategies:

👍🏼 Get Real About Revenue Attribution
Leaders must understand the nuances of revenue sources. Not all gifts are replicable. Conduct an in-depth analysis of past revenue and categorize gifts into sustainable (annual giving, ongoing commitments) and one-time anomalies (bequests, sunset givers, or one-off major gifts). This ensures goal-setting reflects reality.

👍🏼 Avoid Arbitrary Goal Inflation
Goals should not be determined by “last year plus 20%” without considering factors such as team capacity, portfolio health, and external economic conditions. Implement collaborative goal-setting sessions that involve fundraisers like Janice. Provide context for goals, and seek their insights on portfolio health

👍🏼 Invest in Your Team’s Growth
Janice’s situation highlights a common issue: undervaluing training and coaching for fundraisers. If your team lacks the training or resources to handle major gift conversations, they won’t thrive. Simply allocating sufficient budgets for travel, networking, and professional development can be a game changer.

👍🏼 Pay Attention to Burn OutLeaders often fail to adequately celebrate wins or incentivize team members. Recognize achievements and allow breathing room before imposing new, higher expectations. Give your fundraisers a chance to recharge before introducing new challenges.

‍👍🏼Focus on Relationships, Not Just NumbersRevenue comes from relationships, not spreadsheets. If your team doesn’t have time to cultivate relationships with givers, you’re undermining their efforts. Reassess workloads to ensure fundraisers have adequate time to build and sustain strong connections.

‍👍🏼Model Transparency and EmpathyLeaders who are candid and understanding create trust. Show empathy for the challenges fundraisers face and be transparent about organizational needs. Make transparency a priority. Share organizational strategies openly and seek feedback from frontline fundraisers. Emphasize partnership over command-and-control leadership.

Committing to these disciplines will create a culture of enjoyment and success with your team! A leader’s job isn’t just to set goals but to create conditions for achieving goals. Empower your team, recognize their unique contributions, and approach planning with a mix of realism and ambition. My friend Janice had no problem with stretch goals, but when the organization started depending on those numbers for increased operations things went downhill fast.

I’d love to hear your thoughts. How do you promote growth year over year while keeping your fundraisers enthusiastic and motivated to grow with you?  Want to talk more about it?  Schedule a free 30-minute call at your convenience.

* * * * * * * * * *

If you haven't taken advantage of some of the resources I've created to help major gift fundraisers, take a look now!  Initial calls with me are free and "no strings attached".  Sometimes folks feel like they need to wait and not 'bother' me until they have a pressing issue.  No need for that...just make the call. 🕺

‍Here's where you can access a lot of content for free:

‍* Follow me on LinkedIn - You'll get short pro-tips and reflections on major gift fundraising every day between 5-7am pacific.

* Breakthru Newsletter - As you've seen here, these are longer weekly posts (audio and written) sent directly to your email.

* Breakthru Blog - the newsletter from the previous week gets posted here each week for everyone (so email subscribers get it a week early).

* Breakthru Podcast - Interviews with high net worth givers about how we as fundraisers can get better at inviting them to the party.  And audio readings of Breakthru Blog posts.

‍Before getting to the PAID stuff: My opinion is that no small ministry with a tight budget should be spending more than $3-5k (total) for major gift coaching/consulting.  Most of you will be good-to-go spending far less than that.  This was a major issue for me when I was a frontline fundraiser - major gift consultants were an expensive 'black-box-of-confusion' for me.  That stops now.

‍Here's the PAID stuff:

‍* Online Catalyst Course - This is a full brain dump of my 28+ years of experience - good, bad, ugly.  It's built around the fundamentals, the sacredness, and the fun, of major gift fundraising.  It's infused with Henri Nouwen reflections.  Many people can take this course and they will be 'cooking-with-gas' and not need any additional coaching from me on the core systems.  I'm grateful that this course has gotten *great* reviews.

* Live coaching with me - I refer to this as "brain rental".  The ROI on live coaching, as you might imagine, is extraordinary.

Finally, be sure to connect with my colleague Ivana Salloum.  She's super awesome and can help with scheduling and access to resources, etc.

I look forward to hearing about your good work!

Blessings,