Guest Post: Putting The Wrong Labels On Boxes That Don’t Actually Exist – Part 2

[box type=”info”]Read Part One First[/box]

It’s All About Relationships

So, what should we call someone whose primary role is to raise funds for the organization? Well, we could label them by what they actually do: Fund-raising Director. A little crass, perhaps, but accurate.

Or is it? Two arguments come to mind:

First, anyone and absolutely everyone involved with a non-profit organization, from the Auditor to the printer, from the Master of Ceremonies to the sweet old lady who ensures sink faucets gleam, is directly involved in fund-raising, without exception. Gail Perry puts it right out there in Fired-Up Fund-raising: “Fundraising is everybody’s job – both board AND staff.”  If a performer or a security guard believes they are exempt, retrain or expel them. If someone who gathers data or fills out grant applications believes they are the organization’s exclusive fund-raisers, retrain or expel them.

When everyone takes a personally empowered responsibility for ensuring that donors give and grants are awarded, the outcome can only be a healthy financial environment, which will also help avoid scandals like San Diego Opera’s husband-and-wife shut-down debacle.

The Only Priority

Second, anyone who helps raise funds (everyone, according to the previous argument) is really a relationship professional. Income, including interest and dividends, comes from people, and the organization’s relationships are really the only priority that needs careful directing. “It’s All About Relationships. You don’t build a brand by begging for favors,” writes Issie Lapowsky in Inc magazine.

Once responsibility for developing all aspects of the organization is given to the Executive Director (all relationships), and responsibility for actualizing the mission is given to the Artistic or Program Director (internal relationships), the next most important responsibility is maintaining external relationships. Who by?

One such role could be labeled Relationship Director. But perhaps a combination of Director-level positions for Community Relations, Audience Relations and Performer Relations could work, as long as they all talk to each other to coordinate focused fund-raising campaigns and outsource or share teammates who fill out relevant grant applications. Maybe the latest trend of replacing sponsorships with partnerships requires a Cultural Responsibility Director instead.

Already we are struggling to identify a convenient box in which to put these roles.

Destroy and Rebuild

Tom Peters rants in his book Re-imagine! that we pursue preservation and value permanence, whereas he imagines “a world where the timid goal of improvement has given way to an unabashed commitment to destruction.” By replacing an incorrectly boxed Development Director with “leaders of relationships,” no longer does ownership of fund-raising rely on one person or isolated administration team.

If you can’t adjust to that concept just yet, at least remind everyone that your Development Director is actually raising funds, not developing the organization which is the Executive Director’s responsibility. Doing so will go a long way to helping your Board govern with clarity and put the right labels on the right boxes. Especially when composing job descriptions.

And that is just one example. Think on the term “Classical Music” for another.

But what if we take Tom Peters’ advice to destroy all the way, and simply remove the boxes?

There Is No Box

Throughout my life the maxim “think outside the box” has grated my teeth more than fingernails on a chalkboard. I realized early on that boxes only exist in the first place because we blindly swallow the elixir found in second-rate business guides written by self-published theorists.

For years my website flaunted the phrase “Don’t be fooled: there is no box” until one of my coaches suggested it sounds like the elixir found in second-rate business guides. They also suggest that if an organization is not growing it is going backwards, but as Nicky Hayward declares in There’s a Small Hotel, “I don’t think life is always about business manuals.”

Perhaps they have charmed us into believing that putting things in boxes is convenient: easily filed, easily programmed, easily found… but that only works if things are boxed and labeled accurately, of course, yet we already proved above that tends not to happen in our industry.

Embody The Role

If you want the world to value how you serve, a label is probably needed. Yet, putting labels on boxes that exist only in others’ minds is a balancing act and a perpetual guess. Let’s take special care in describing ourselves properly rather than adopting off-the-shelf or trendy lingo that sounds great, but does not actually embody the role or function we perform.

Which is…

[How do you make people’s lives better?]

Guest Post: Putting The Wrong Labels On Boxes That Don’t Actually Exist

[box type=”note” style=”rounded” border=”full”] In my post last week about poorly written job descriptions, Stephen Brown asked if I would address his perception that the title “Development Director” was something of a misnomer. Thinking that he was well along in considering this topic, I invited him to submit a guest post on the subject.

Soon he recognized the trap I had laid for him as his thoughts on the matter took hold and flowed across the page! With his permission, I have broken his post up to appear across the next two days.

Enjoy!

-Joe Patti[/box]


Many of Joe Patti’s articles inspire a moment of contemplation during my hectic days. I am often motivated to contribute to the discussion, and occasionally hit “submit comment” before wishing I hadn’t; two sentences are hardly enough to express myself properly. This time, though, Joe sent a thank-you note and offered the opportunity to expand my thoughts in a guest post. Here goes:

Risky Labels

When making the acquaintance of someone new, “What do you do?” is usually one of the first questions asked. Personally, I prefer the question “How do you make people’s lives better?” because it stimulates the sharing of passions and dreams rather than a job title. How do you respond when a person asks what you do?

Most of the time we use a label we think the inquirer understands: Conductor, Composer, Coach, Musician, Administrator, Performer, Director, Writer, Educator, Marketer, Project Manager, Producer, Leader, Renaissance Man, Jack of All Trades, or Emilie Wapnick’s coinage, “Multipotentialite.”

However, trying to fit your life inside someone else’s box has never worked. As Frank Luntz says in Words that Work, “It’s not what you say, it’s what people hear.” By using other people’s labels we risk confusion, appear boring, or sound like an unfocused busybody who jumps from one job or box to another (when children do that, we label them as having ADHD and medicate them out of creativity).

Future Negative Impact

Maybe one reason why the Western world struggles to maintain a healthy relationship with live performing arts is because we use misleading language, labels and boxes. This is hardly a revelation, but I have yet to hear about a sensible discussion that explores the issue seriously and recommends prudent alternatives.

By adopting others’ labels and holding on to them, the performing arts industry is becoming dated while serving only its own entrenched addicts. According to Gary Vaynerchuk in Crush it!, we have neglected to “look ahead and see what could negatively impact our businesses.” We have absorbed mid-to-late twentieth century labels we think the “outside world” understands and at no time considered their future negative impact, which is now upon us. For example, let’s look at the USA non-profit world’s common term “Development Director.”

Have We Got It Backwards?

Ask anyone who has contact with non-profit leaders what a Development Director does, and they say “fund-raising.” Ask anyone with no experience in non-profit management, and they say “develops products or services.” In fact, taking the usual responses and listing them, the description sounds remarkably like an ideal Executive Director: Develops the people, programs, finances, operations and strategic planning of an organization. It seems backwards to me. Perhaps both positions have the wrong labels.

Even Board members, who are often unfamiliar with non-profit language even after training, can be confused about a Development Director’s role. Merriam Webster defines Development as an act or process that causes something to grow or become more advanced, and Oxford defines it as a “specified stage of growth or advancement.” Dictionary.com even includes Development definitions for music, construction, chess and mining, but none of them refer to fund-raising, asking for donations, or submitting grant applications.

Disparity of Definition

For the small business or corporate representative on your Board, every product, service and process in their company is being developed, was developed, or will soon be developed. R&D is not an abbreviation for Research and funD-raising. In fact, Development usually results in new and improved ways of achieving the same outcome, which is hardly what fund-raising does.

This disparity of definition is caused by a lack of communication, which Dave Ramsey suggests in EntreLeadership is due either to communication not being a priority, or sufficiently “arrogant or fearful” leaders who are under-communicating on purpose. To a lay non-profit Board member, a Development Director is simply a layer of bureaucracy lean organizations can do without.

What we can do without is putting the wrong label on the wrong box.

A New Condition

Joe’s original article highlights that some organizations believe the Executive Director’s role is primarily (75%) fund-raising, and that their Board members clearly have no appreciation for the ED’s actual function, how their organization functions, or what a Development Director does.

In fact, he thinks his case study “reflects a lot of poor practices that have permeated the non-profit arts,” and I agree. So much so that I, too, am angry enough to share my thoughts about it.

Now throw into the mix my suggestion that the term Development Director is whole-heartedly misapplied and must be dropped, and we can put a new label on the new condition we are in: a mess.

[box type=”note” border=”full”]Tomorrow – What Are The Alternatives?[/box]

Is Anyone Really Reading This? Three Foundations Want To Know

A guest post today. Barry Hessenius asked if I would spread the word about study being conducted by the Knight Foundation, the Hewlett Foundation and WESTAF who are looking into the ways in which the non-profit arts field communicates.

They are seeking answers to many of the basic questions we all ask like, “Is anyone really reading any of this and is it useful to them?”

Those who complete the survey will be entered into a drawing for an Apple Watch and a separate drawing for a $500 cash award to your organization. Read on to learn more.


The Knight Foundation, the Hewlett Foundation and WESTAF are sponsoring a preliminary study on Communications within the nonprofit arts field, and have invited our members to join them by taking a brief national survey.

They want to make absolutely sure that the grantmaking community within our field is adequately represented in this survey.

This study seeks to gain valuable information on:

• How we communicate internally with each other
• How we communicate externally within the sector
• How we manage the growth in all communications
• What the impact is on our organizations of that growth in communications.

No one disputes that communication is at the core of every business, including the arts nonprofit sector. If we don’t communicate effectively success is problematic.

Oddly enough there has never been any comprehensive survey of how we in the nonprofit arts field communicate – internally or externally.

As a field, we have virtually no data at all as to:

• which means and methods we prefer to use to communicate,
• whether or not the means we do choose are effective,
• how we manage our communications
• where we get our information from, and
• which sources we trust.

Moreover, we have no information as to how we are coping with the dramatically increased information that flows from, and to, us on a daily basis.

Do you know if people read the reports, studies, and just general information you send them? Do they scan it or read it all, or do they ignore it if you are not one of their trusted sources?

Do you know if your staff considers the onslaught of information a positive or a negative in doing their jobs?

Do you know how many emails your staff deals with each day and how many hours a week they spend on different types of communications?

They have designed a basic, simple online survey that will give us all some base information on our communications behaviors, habits and perceptions.

The survey is 100% check off answers, with no open ended, narrative responses required or asked for.

It is completely anonymous and designed to take less than 20 minutes to complete.

While they cannot pay a fee nor provide a premium to every person / organization that takes the survey, they will, at the request of each survey responder, enter their name into a random drawing for an Apple Watch. We will also enter the name of the responder’s organization into a separate random drawing for a $500 cash award payable to that organization.

The survey seeks to establish a base line of data and information about communications within our sector, on which can be built further research. The aim is to
gain knowledge that will help us all to communicate more effectively, more efficiently and with a greater awareness of the issues and challenges inherent in all our communications decisions.

To that end they will disseminate as widely as possible the analysis of the results of the survey.
Here is the link: https://www.surveymonkey.com/r/Knight-Hewlett-Survey

The survey is open from September 28th to October 16th.

Guest Post: The Overhead Solution

Back in June 2013, I wrote about the release of a letter by GuideStar, Charity Navigator, and BBB Wise Giving Alliance urging funders to discontinue the use of overhead ratios to measure the viability of non-profit organizations. They felt the number was an inaccurate assessment of  an organization’s effectiveness.

Since then, the subject of overhead ratio has appeared a number of times in my posts.

Recently, the GuideStar, Charity Navigator and BBB Wise Giving Alliance have released a second letter. This one is aimed at non-profits asking them to assist in the effort by educating their funders about the true costs of the programs and by providing alternative narratives about program effectiveness.

I was approached by GuideStar with a request to host a guest post on the subject. As this has been an area of interest for me, I was pleased to do so.


 

A Message From GuideStar President/CEO Jacob Harold

In 2013, I joined with partners at the BBB Wise Giving Alliance and Charity Navigator in writing an open letter to the donors of America explaining that “overhead ratios” are a poor way to understand nonprofit performance. We named this campaign “The Overhead Myth.”

I’m glad to report that the response to the campaign, including the original Overhead Myth letter to the donors of America, far exceeded our expectations. More than one hundred articles have been written about the campaign. It comes up every time I hold a meeting or give a talk. For many in the field, it’s been a deep affirmation of something they’ve known a long time. And, indeed, many leading organizations– the Donors Forum, Bridgespan, the National Council on Nonprofits, and others — have been working on the issue for a long time.

But we also know we have a long road ahead of us. The myth of overhead as inherently “wasteful” spending is deeply ingrained in the culture and systems of the nonprofit sector, and it will take years of concerted effort for us to move past such a narrow view of nonprofit performance to something that fully reflects the complexity of the world around us. That effort is essential, however, if we want to ensure that we have a nonprofit sector capable of tackling the great challenges of our time.

That’s why last week the CEOs of Charity Navigator and the BBB Wise Giving Alliance and I released a second Overhead Myth letter—this one addressed to the nonprofits of America. In that letter, we suggest a set of steps nonprofits themselves can take to help dispel the Overhead Myth. We all share responsibility for allowing things to have reached this pass.  And it will take all of us to fix it.

We direct this letter to nonprofits not because we feel they are the originators of the Overhead Myth but because they are in the best position to communicate with their donors and funders. We want to recruit nonprofits to help us retrain donors and funders to pay attention to what really matters: results.  In the end, that means nonprofits have to throw away the pie charts showing overhead versus program—and step up to the much more important challenge of communicating how they track progress against their mission.

In simple terms, we must—collectively—offer donors an alternative. In the letter, and on the accompanying website, we call on nonprofits to do three things as their part of this evolution:

  1. Demonstrate ethical practice and share data about their performance.
  2. Manage toward results and understand their true costs.
  3. Help educate funders (individuals, foundations, corporations, and government) on the real cost of results.

We have provided a list of tools and resources related to each of these goals. These tools give nonprofits tangible steps they can take to engage their stakeholders around this critical issue. As the sector develops new resources and tactics, we will add them to the website.

We believe it will take a shared effort to focus donors’ attention on what really matters: nonprofits’ efforts to make the world a better place. It doesn’t matter whether you work at a nonprofit or donate a few dollars to a favorite charity every year, please join us as we seek to move from the Overhead Myth to the Overhead Solution.

For more information, or if you have a resource related to this issue that can help advance the cause, please email overhead@guidestar.org.

 

— Jacob Harold is the president and CEO of GuideStar, is a 501(c)(3) nonprofit that connects people and organizations with information on the programs, finances, and impact of more than 1.8 million IRS-recognized nonprofits. GuideStar serves a wide audience inside and outside the nonprofit sector, including individual donors, nonprofit leaders, grantmakers, government officials, academic researchers, and the media.

This letter original appeared on PhilanTopic blog and is shared with their permission.[divider]