Basics
By Katherine Wertheim, CFRE
I’ve been fundraising for nonprofit organizations professionally since 1983, and I’ve seen
my share of mistakes (and made a few, too). Still, every once in a while, I find myself surprised
that an organization neglects to do something that I consider pretty basic. I developed a list of 75
solutions to real situations I’ve seen.
Database:
1. The database needs to have the information you need. The worst case I ever saw was the
group that had retained all the information on their donors except their addresses! For
most groups, you might just need something simple, like a field for salutations, so that
you can address letters to donors using the name they prefer. For one donor couple, it
might be “Mr. and Mrs. Weis” while for another it might be “Brad and Janet.” Or, you
might need a field for donors who only want to be solicited once a year, so they only get
your holiday mailing.
2. In listing donors, such as in your annual report, don’t assume that all married couples are
“Mr. and Mrs. His Name.” Many women keep their own names. It looks old-fashioned
to have all donors listed under the man’s name alone and it alienates many people.
3. You should have “seeds” on the database. A “seed” is one or more fake names with real
addresses. That is, if you get a mailing to Faith N. Action, M.D., you would know that
the only place that mailing could come from is your database. The reason to have a
seeded name is so that if the database is used by someone it shouldn’t be, you’d find out.
However, you’ll want seeds to go to someone other than your own address, perhaps a
trusted friend or a professional company, so that someone intent on stealing your list
wouldn’t just remove the obvious seeds. It’s good to have more than one seed.
4. You want to maintain a copy of your database offsite, and update this weekly at least, if
not daily. This is in case the office is destroyed by disaster (even just a water leak) or the
database is destroyed, possibly by someone incompetent or unhappy with the
organization. One organization I know lost their database when an intern deleted most of
the names, one by one. The easiest way to do this is to use a company like Swapdrive,
which I recommend. www.swapdrive.com. Then the download will happen
automatically, and you can restart up from anywhere. They can download everything,
not just the database. Or, you can download everything once a week and take it with you,
but I notice that people forget to do this, or they don’t know how. Another alternative is
to switch to a system that’s based on the internet so you can access it anywhere, but that’s
more expensive and feels less secure than just having an internal system.
5. Test the above system at least once a year, just to make sure it works: call a test on it
randomly if you can. You might find that your technology doesn’t work; or the employee
who swears he saves it, doesn’t; or that you need to keep a series of copies, since a
mistake might develop over time and multiply (like the intern erasing the database).
6. Make sure that people who give to you online are put into the database and solicited
again. Yes, that includes event solicitations made by volunteers.
7. Collect email addresses from donors, volunteers, vendors, and everyone you contact, and
put these in the database. Ask for email addresses whenever you ask for money.
Eventually, you will want to shift from expensive direct mailings to e-mailings, so it’s
worth it to start collecting information now.
8. Every staff member and everyone who has access to the database or client files should
sign a confidentiality statement. You specifically want to make sure that they understand
that the database is valuable (it cost you a lot to collect all those names), and that they
can’t take a copy with them when they leave your employment, or give it to anyone else
without your express permission.
9. Clean your list periodically. There are several ways you can do this: by including
“address correction service” on bulk mailings to the donor list; by mailing first-class
(postcards are the cheapest way); by using a de-duping program through your mailhouse
when you do a bulk mailing; and also by having someone take the time to physically look
at the list when it’s printed out, someone who will question information and follow-up
with it. Who knows, maybe Mr. Steal really does spell his name that way.
10. Don’t assume gender in your prefixes, if possible. I’ve known women named Russell,
Sidney, Sam, Alex, Gregory and Glenn, and I know they’re sick of people assuming that
they are men. At the least, for foundation grants, call and find out if the person is a man
or woman. Better yet, when you solicit donations, ask people how they wish to be
addressed.
11. If you wouldn’t want a donor to see a personal note about him/herself, don’t write it
down. The donor might ask to see what you have on them in the database or in a file, or
perhaps an employee will enter a donation in front of them.
Technology:
12. Make sure your website has a way to donate money and that it works. Further, make sure
the money is deposited to the right bank account.
13. Make sure that your info@emailaddress.org account is checked at least once a day. If it’s
forwarded to one account, make sure that the person to whom it is forwarded replies
promptly, and that it is switched to someone else when that person goes on vacation.
14. Make sure every staff member knows how to run each piece of equipment: the fax
machine, voice mail, even email. You’d be surprised how many people don’t. Nothing
is worse than to call an organization and hear, “Can you call back? I don’t know how to
transfer the phone.” Donors don’t know how good you are at your work, but they do
judge whether you’re good at the things they expect you to be able to do.
15. More individuals and companies are seeking information on the internet, so make sure
that they can find you. For example, if you need volunteers, you’ll want to be on
volunteermatch.org and similar websites.
16. You should make sure that whoever runs your website has included “tags” so that people
searching on your geographic area and topic see your website close to the top of the list.
17. You’ll also want to enter your information on www.guidestar.org, so that donors can find
out what you’re doing.
18. Have your IRS Form 990 list a clear explanation of what you do with your money: this
will be available online, so more donors can read it without your knowing that they do so.
Finance:
19. Make copies of the checks, cash them, and do the data entry from the copies, not directly
from the checks. This means that they go into the bank faster. I once found a client had
two months of checks in their drawers because they didn’t have time to do the data entry.
20. Make sure that the person who deposits the checks isn’t the one who reviews the bank
statement, to prevent embezzlement.
21. Learn the signs of embezzlement, so that you can watch for it. Remember, this is not
your money, it belongs to the donors and it is passing through you on the way to helping
the people you serve. You have the responsibility to be vigilant. So, for example, you
want to be sure that whoever handles the money takes vacations regularly: a sign of an
embezzler is that they can never take a vacation, because someone else might see what
they’re doing while they’re gone. Also, make sure that your bank enforces your
restrictions, such as having two signers on larger checks. This vigilance is especially
important in smaller agencies, where there is likely to be fewer trained people and fewer
watchdogs.
22. With every audit there will be a management report, and this will tell you if the auditors
want any of your systems to change. This is an excellent report. Go back to last year’s
audit and make sure any required changes were done before the auditors come in again.
23. Ask your CPA or auditor to instruct the board on how to read the financial statements, so
that each board member knows how to read them. Train new board members on this, too.
24. If you’re paying for it, it goes in the budget. I saw one congregation that wouldn’t
include special purchases in the budget, such as prayer books or pre-school accreditation,
because volunteers were raising money for these items separately. If it’s outgo, you have
to count income. (Or, as my father used to say, “If your outgo exceeds your income, your
upkeep will be your downfall.”)
Donations:
25. You’ll want to make sure that thank-you notes go out promptly, ideally the same day but
within three days. This goes for donations, of course, but also for help from volunteers.
26. Make sure that every foundation that has given you money gets resolicited. Go back
several years in the files. Virtually every client with whom I’ve worked has had the
following happen: I go through their foundation files and find a note that says, “Please do
not solicit us again for three years” and the note is at least five years’ old. There was a
staff change, and people just forget.
27. Make sure that online donors are thanked and asked again.
28. Make sure that every staff member knows how to ask for money. Ask your development
director or a volunteer from the Association of Fundraising Professionals to train them. I
called an agency and asked if they needed money and heard, “Gee, I don’t know.” Make
sure that when a staff member hears something, especially, “I intend to put you in my
will” or just “I want to give you some money to pay you” that they know how to respond.
29. I would suggest that, when business cards are printed up for employees, that the correct
wording for bequests is put on the reverse, including your correct name and tax
identification number. Then there’s never a question, and if a prospect or client mentions
making a bequest, the employee can just turn over their business card and show it to the
person.
30. Make your own donation before you ask anyone else, and give an amount that you would
have others proud to know (it will be in your annual report). People who have more
money than you, or think they do, won’t want to give less. It makes asking for money
much easier, too.
31. For stock donations: You’ll want to have a policy on when you keep stocks and when you
sell them. Unless you have an investment committee, you’ll probably want to sell all
stock donations immediately.
32. You’ll probably have an account to accept stock donations: make sure this is included in
the audit. I think that the easiest way to embezzle would be to not include this account in
the audit: for some reason auditors never think of it.
33. Find out which companies in your area match their employees’ gifts, and ask that
company for volunteers, committee and board members. Those people become donors,
and their gifts are automatically doubled.
34. Also solicit for volunteers within companies or agencies that have United Way,
Combined Federal Campaign or workplace giving campaigns. Volunteers are more
likely to donate through their workplace (since they are often pressured to, regrettably),
and if they have to choose someone, they’re more likely to choose the place where they
volunteer.
35. When donors give through their workplace, make sure you write them just before
campaign time, thank them for their previous gifts and ask them to give again.
Board of Directors:
36. For board planning retreats, to prevent the strategic plan from ending up on a shelf, make
sure that a date is assigned for doing each part of the work, and someone is responsible
for making sure it gets done. By making this commitment, people are more likely to
fulfill the plan.
37. If the executive director or board chair attends every committee meeting, you’ll only have
one strong committee or two at most. Just get the reports about the meetings from a
board member, or have them report at the board meeting.
38. You can have non-board members serve on committees. This prevents board members
from burning out. Just make sure that each committee has a board liaison who will report
on the committee to the full board. It also allows you to test potential board members to
see if they’re workers before you put them on the board.
39. Have prospective board members sign an agreement before they are nominated to the
board. The agreement should say that they understand they will need to come to
meetings, that they will give money and raise money, and list their other responsibilities.
Then you’ll only have people who will help you and everyone knows it. You can find the
list of common board responsibilities at www.boardsource.org.
40. Help the board feel connected to the work, either by having each board member go out
once a year to see your work, or by having a different staff member attend each board
meeting and give a 5-10 minute report on what they do, preferably telling stories of the
people they serve.
41. The board is a group decision-making body: everyone needs to attend, and no one gets
off the hook. If your service area is very large, consider having a conference call system
so people who live further away can call in, but try to have social events where people
can get together face-to-face so they get to know each other.
42. The board secretary takes the minutes, not a staff member.
43. The board chair sets the agenda, not the executive director.
44. If board members don’t know their responsibilities, bring in someone to train them, or
have them read about and report from one of the many books on the subject.
Staff:
45. Ensure that staff members are evaluated each year – too many organizations let this slide,
and it’s important to the staff. Find a way to do a “360” evaluation: they get to evaluate
their boss as well as being evaluated. Set standards with them so the know how to
improve. Don’t just give everyone a standard rating and a standard raise: let them know
how to earn more.
46. Well before evaluations, have staff members write up for themselves what they should do
in their jobs and what they would like to accomplish in the upcoming year. They will set
more ambitious goals for themselves than you will.
47. Make sure that staff members put notes into the files about the people they work with and
keep these updated. If anything happens to one of the staff, someone else can pick up the
work. It’s best if the staff can switch from paper files for client services to being on the
computer, so everyone has access to the same notes. Have them put notes on the
computer in reverse chronological order, so the most recent note appears at the top. That
way, people don’t have to scroll down to get an update. It also means that, in a crisis, the
information can be accessed from another site, if you’ve been keeping a copy offsite.
48. Keep a copy of your client list at home. In an emergency such as a blizzard or
earthquake, staff can call clients to make sure they’re alright. Better yet, have the list
divided and given to volunteers, who can make more phone calls faster. Elderly
volunteers and those who are shut-ins may particularly enjoy calling others.
49. If you have high turnover of good staff, but can’t pay more, consider increasing the
benefits. For example, if you lose people after one or two years, increase vacation by one
week for each year they stay for the first four years. You can also add flextime so that
people can choose the hours they come in; you can give people the choice of Fridays or
Mondays off in summer; you can allow people the choice of working slightly longer days
in exchange for a day off every other week (i.e. nine hour days and every other Friday
off) you can allow people to work from home one day a week; or you can have the office
close one week a year, perhaps the last week in August, so that everyone gets a week off
at the same time. These don’t increase the budget and they decrease turnover.
50. Also consider splitting jobs, to accommodate different kinds of employees. For example,
perhaps you can have two receptionists: one who is a mother who needs to be home when
her children come home at 2:30, and the other a high-school student who can work after
school. Therefore, you can have phone coverage for more hours of the day: the mother
might start at 8:00 a.m. and the high school student could work until 6 p.m.
Philosophically, it’s good for nonprofit organizations to take the lead in society in hiring
people who have different needs: it sets an example.
51. Sign letters in blue, so it is clear they’re not a bulk mailing.
52. If staff members meet with clients, have a police background check on them. For
example, if you’re working with seniors, some people become paranoid and think that
others are stealing from them. You want to be sure that your staff members aren’t thieves
before you defend them against these kinds of charges. Consider doing this for
volunteers, too, if they’re going into clients’ homes.
53. The best thing you can do is have “depth in your bench” – that is, to have staff members
train each other on their jobs, so that if one person is out, another person can step in. This
applies to everything, from database entry and depositing checks as well as client
services. It’s extraordinarily helpful when something occurs and someone needs to be
out of the office for a couple of weeks. It also helps keep people honest: if there’s any
temptation, they know that someone else knows their job and might catch something
wrong. (A horrible thought, I know, but useful.)
54. Make sure that staff members take a vacation once a year. People burn out without them.
If it’s too difficult to have just one person out, decide to close the office for a week
during slow periods, so that everyone gets the same week off. You might traditionally
close for one week in August and the last week in December. Give everyone notice, so
they have time to plan vacations. It’s good for scheduling building maintenance, too,
such as painting.
55. Give your employees their choice of holidays. Some people want the day off after
Thanksgiving, others might prefer taking Columbus Day off. Those of different religions
can take off time during their holy days. Choice is empowering and it feels good.
56. To make sure you have a safe environment, invite the fire department in to review your
office set-up. They can tell you if anything is a fire hazard. Things that you stopped
noticing long ago – multiple plugs in the wall, boxes in the storeroom – might pose a
hazard to your staff. It also makes the staff feel good to know you have their interests at
heart.
57. I have invited in self-defense instructors to train staff members to defend themselves.
Even if you don’t work in a bad neighborhood, this is a good idea for two reasons. One,
it’s a scary world out there, and self-defense is a useful skill; and second, it makes for a
good day or two for people to bond with each other. I know this training has been useful
to more than one person, including a guy who was six feet tall and worked out with
weights regularly but who ended up being attacked twice.
58. Set a policy that staff members inform at least one person where they are going and when
they are expected back. It’s for safety, true, but it also helps when that one person is the
one with the answer you need.
59. When you leave work, leave it. Don’t work at home frequently. If you do, you need to
develop volunteers who will take a load off you. At the least, take one Sabbath day a
week to refresh: you’ll do a better job. Your staff will appreciate it, too: it’s nicer to have
a boss who has balance in his/her life.
Vendors:
60. When you get a bid on some work, get three bids. You’ll make sure you get a good price.
If you want to work with one particular vendor, and they’re not the low bid, you can ask
them to “sharpen their pencil” and improve the bid, based on the info. And sometimes
you’ll choose a higher bid for quality, but you should know that you’re paying more.
61. You should also rebid the work of current vendors on occasion, to keep them honest.
62. You should solicit vendors like any other corporate donor. They’re more likely to give
money to you, or at least make in-kind gifts.
63. Make sure your accountants count in-kind gifts on your financial reports and audit. It
increases the bottom line. Sometimes these can be quite large: I had a law firm donate
$200,000 worth of time on a capital campaign for an $800,000 organization, which raised
the bottom line to more than $1 million.
Volunteers:
64. Volunteers are like gold. How are you treating volunteers? Do you send them a thank-
you note regularly? A holiday card? How about a Valentine’s Day card? Do you hold a
group event for volunteers once a year, to thank them? A board member can sponsor a
BBQ or coffee to thank volunteers and it means a lot to them.
65. Ask volunteers for referrals to other volunteers. They’re in the community more than
you are.
66. Ask congregations to assign you one or two congregants and liaisons to the congregation.
They are responsible for putting notes in the bulletin, approaching the mission committee
for volunteers, asking the cleric for donations, and finding people within the congregation
who need your organization’s services.
67. Ask volunteers to review your list of major donors. They may know people and can learn
how to solicit them or can accompany you on a visit. People also like to be asked for
advice.
68. Ask volunteers for money. Time is more valuable than money, and if they will give you
their time, they will give you their money, too.
69. Ask volunteers who work at companies or agencies with United Way or Combined
Federal Campaign to get you in on agency day, so that you can meet potential donors and
volunteers. The coordinators for agency days tend to change every year, so if you work
through your volunteer, you’ll be included.
Ethics:
70. You should have an ethics statement about how you work as an organization and as
individuals, and all staff should sign off on it. Something about maintaining client
privacy, getting permission before using names, protection of information in the database,
pay if you use the office copier, things like that. There are ones online if you want
something standard. Here's a good overview statement on ethics: Click here:
Independent Sector | Accountability -- Codes of Ethics This should go to the board first,
and then be signed by each staff member. Here's an ethics statement for fundraising:
Click here: AFP > Ethics | Ethics and donors > Donor Bill of Rights. AFP also has an
ethics code for fundraisers which would be helpful for you.
71. You should have a policy on any gifts that you would not solicit or accept. You don’t
want to apply for grants just to find that the staff objects to money from the Boeing Good
Neighbor Fund (military defense), the Chumash Indian Casino (gambling), or the Philip
Morris Foundation (smoking). Personally, the only time I declined to solicit someone
was a former donor to a senior services agency who was busted for duping elderly people
into high-interest mortgages.
72. Work hard to avoid assuming things about the people around you: don’t assume that
male staff members have strong backs and can lift boxes; don’t assume that people are
heterosexual; for a benediction, don’t assume that everyone in the room is a Christian;
don’t assume that you don’t need a microphone when addressing a crowd of people; and
don’t assume that a journalist is writing a friendly article about your organization. Just
watching these five things will prevent a lot of trouble: more than you can imagine.
73. Be very clear to everyone, board and staff, that everything you do has to be legal, moral
and ethical. I’ve seen donors offer to reimburse other people for half of their donations,
so that they are essentially not giving anything, just getting the tax donation. It may be
legal, but it wouldn’t look good on the front page of the newspaper.
74. You do not have to spin everything as happy news. If you’re having problems, you may
need to reveal them, especially to your board. Other people may be able to help you find
solutions, but you have to let them in on the problem.
75. This is almost so basic I hesitate to mention it, but a key rule of fundraising is “Don’t
lie.” Don’t lie, don’t mislead, and don’t neglect to mention something important. Donors
appreciate the truth, and they will discover a falsehood. I wouldn’t have put this in here
except that I’ve seen it happen personally.
Questions? Feel free to contact me.
© 2006 Katherine Wertheim, CFRE Katherine@werth-it.com www.werth-it.com