In episode 27 of Mission: Impact, some of the topics that Carol and her guest, Carlyn Madden discussed include:
Carlyn Madden helps nonprofits find new leaders. She is the CEO of Good Insight, a national executive search firm and governance consultancy that focuses on small nonprofits. Good Insight is committed to becoming an anti-racist search firm and she is a sought-after speaker and adviser on the nonprofit workforce’s generational and demographic shifts. She comes to this work through philanthropy, beginning her career at The Morris and Gwendolyn Cafritz Foundation, where she managed a portfolio of grants that spanned education, the arts, human services, and the environment.
Important Guest Links:
Carol Hamilton: My guest today on Mission Impact is Carlyn Madden. She is the CEO of Good Insight, a national executive search firm and governance consultancy that focuses on small nonprofits. Welcome to Mission Impact, the podcast for progressive nonprofit leaders who want to build a better world without becoming a martyr to the cause. I am Carol Hamilton, your podcast host and nonprofit strategic planning consultant. Carlyn and I talk about why smaller organizations can benefit from the support of a search firm for their leadership searches. She describes some of the newer good practices to ensure that a search is equitable. We talk about how to avoid being an accidental interim executive director and what aspiring executive directors can do to start now to get ready for a future leadership role
Welcome, Carlyn. And it's great to have you on the podcast.
Carlyn Madden: Yeah. Thanks so much for having me. I appreciate it.
Carol: So I love, I like to get started just by asking a question about what drew you to the work that you do, what motivates you and how would you describe your why?
Carlyn: Yeah, great question. So, I started my nonprofit career in philanthropy, which means that I have a bird's eye perspective on what happens in the nonprofit sector, particularly with community-based organizations. And so after being in philanthropy for almost a decade, I started consulting and did a little bit of everything for a while and saw a number of my former grantees and clients go through adverse executive transitions. So some of the organizations, unfortunately had founders pass away, unexpectedly. Others had hired the wrong person and really the organization took a nosedive. And so as I was building my own consulting practice, I kept being a sounding board for the boards of these nonprofits and thought. Gosh, I think I have a different vision for how organizations can tackle this and started designing a executive server executive search services that embedded a more racial equity approach to the work and started rolling that out in 2018 and have been really fully focused on that in the last few years.
Carol: So, Yeah, it seems like there's, there's been a body of work around leadership transitions that probably started, I don't know, maybe 20 years ago. And it's been the standard of how you do things. So I'm really curious to hear more about, what, how, how you were seeing and how you are approaching those transitions differently.
Carlyn: Great question. there was an interesting article a couple years ago, maybe, and Carol, I'll send this to you so you can include it in the notes, from Jeanne Bell who talks about, I think it's called hire by hire and talks about, some of the survey data on executive leadership in the nonprofit sector has not changed in the last 20 years, right. The demographics have not actually changed. And so what is required is are the conditions of executive search have to change. And so while the model that you're talking about, the last 20 years, it's called executive transition management and they talk about, How does it prepare pivot and thrive or something of that nature, that Don Tevye and Tom Adams and Annie E Casey foundation and Compass Point, all of these organizations came together to design this model, which is an effective model at the base of it. But the conditions around the model have changed. And so things that we do that are a little bit different or, or, a lot of my colleagues are starting to do the same, but we're, we're very firm in this. Salary transparency for all of our clients. I'm really thinking about building, not thinking actually building out networks multi-racial networks, leveraging affinity groups, having open exchange with clients, recognizing that often leaders of color don't have those sponsors or, when we are reaching out to folks saying who do you know in this space, that would be a good executive director. Because there are so many white people in the sector in top leadership roles, our networks are very homogenous. We know that I'm a white lady, you know where this is it podcast, but I'm a white lady. We're two white ladies talking to each other. but our networks are very diverse.
And so we have an open door policy that anybody that has questions about a search can call us, can talk to one of our associates about their interest in the role so that they can really prepare their materials to be successful in front of that transition committee. We're also coaching transition committees on what are some best practices. So if a transition committee is hiring an executive director and says only executive directors can apply for this. Well, what we know to be true about the field is that there are fewer executive directors of color than white executive directors. And so we're already starting to limit the pool.
Some like even subtle things, right? How are we, how are we gender coding? Job descriptions. We know the studies say not just in the nonprofit sector, but HR writ large say women are less likely to apply to a job that is masculine coded. So if your job description says things like. Aggressive goal achievement. Yeah. women, or, women read that as like, well, can I aggressively achieve goals? So we use words like collaborate, not compete, thinking really about gender coding there. So it's a really cool tool. And again, I'll send this to you. You can include in the notes that will read your job descriptions for gender coding and tell you if it's a feminized or masculinized job description, which is really neat. We also avoid militarized language, like execute. We don't say execute, we say implement. And we don't say targets. We say focus, all of these sorts of things that are really subtle, but affect how people are receiving a job description and think about themselves in that position.
Carol: And it seems like, you, you are, are really focused in, on the search phase of that transition.And what misconceptions do you think, you've seen that people have about working with someone on S H working with an outside party to support that search process?
Carlyn: Gosh, I think they think it's really expensive. Right. Like most of my clients are under 5 million. That was the area that, so while I was at, I was at a regional foundation called the Cambridge foundation. I had a portfolio that covered indications with domestic violence survivors, homelessness, and the environment just like a broad generalist. But the thing that they all had in common is that they were relatively small, right. There are under 3 million and we say our ideal clients are under five. And we say that because they don't have, HR apparatus, right? There's not a strong internal system, multiple people they're really helping develop out job descriptions and search services internally. There's no internal strategy around it. So yeah. Our clients are best served. When they're small, we provide good services to small clients, but small clients also lack fewer resources. There's a reason that they're small. And so boards often think that they can do it themselves. But again, what do we know about boards? Many of them are predominantly white led. So we look again at these imaginative networks. they don't have the time to, to do the search themselves. So they're not communicating back to the candidates. And so people don't know where they stand that affects the organization's reputation, all sorts of things like that. So I think a common misconception is that it's really expensive and it's not worth the cost that they can find the executive director themselves. That might be absolutely true. However, the ability, particularly with long tenured and founder transitions, long-tenured executive and founder transitions, is the ability to have a partner that understands where the organization's capacity is.
Can explain that clearly both to the board and to candidates and finding a candidate that doesn't just check all the boxes, but really can meet the organization in this exact moment in time is really crucial. So one of the things that we also know is implicit bias is a big thing. We all carry implicit bias. And so you'll receive a resume from somebody and they'll be like, well, they worked at all the right organizations to successfully lead this nonprofit. But maybe they didn't hold the right roles in those organizations. If you are preparing to launch a capital campaign and somebody has come from a competitor organization, but only worked on the program side, they're not going to have necessarily the skill sets necessary to. Be able to launch that capital campaign that's not going to be their area of expertise. So what we help our clients do is really hone in on the key skills and hire for skills and capacity for that organization's next chapter and boards just don't, aren't going to necessarily understand where the organization is in its life cycle and what's next. And because we are experts in the nonprofit sector, we have a clear vision for that.
Carol: And you talked about, I think, one of those really hard transitions, from a founder and, and how you witnessed, a number of specific examples where that, where that didn't go well, what, what have you seen a transition from, from the founder? Go better or go more smoothly?
Carlyn: Well once they’ve decided that they're going to transition, they do need to identify what the date is of that transition. So, whether that person is leaving in a year, six months, three months, all sorts of, it doesn't, it doesn't matter. But having a firm date in mind and working backwards from that with some succession planning, Carol, I know succession planning is also an area of topic that you care a lot about too. And then the organization can make a decision. Is that executive director going to be the person that hands over the keys, or is that person going to need to use an interim executive director in order to facilitate that transition? And we're dealing with people. So every person is different. Every organization is different because of that person. I can't say there's one right way to do it, but often an interim executive director after the founder is a good idea because. This person can help steward and steer the organization's operations and help clean up. it's not like there's a mess necessarily, but, but be able to implement some new systems, be able to identify if there are staff members that need to be promoted. If there are staff members that have outgrown their positions, they can do some of that quote unquote dirty work before the next executive director comes in. We commonly say there's this accidental interim that often follows a founder, somebody that is in that role for about 18 months. And you don't want that. You want the next person to follow the founder to be there much longer term, maybe not another 30 years, but five, 10 years be able to take the organization through its next cycle of, of opportunity. And so you need somebody in there for six months to a year, maybe even 18 months in order to make sure that all the systems are go and the fundraising relationships are strong and, All of the things that, that next executive director would otherwise work on and take up a lot of time, rather than being able to implement a bigger vision for the organization.
Carol: And I could imagine, as, or as organizations are becoming more aware and centering, equity and racial equity that. an unfortunate offshoot of that might be that, they rushed to hire a person of color where they've, where there's been a white founder. And then just because of all the founders and plus many other things, that person becomes that accidental, inner, accidental interim. And I'm, I'm just it. I can imagine that it could have an even greater detrimental effect on that person's career than it might be. For a white accidental interim.
Carlyn: Yeah, it's a good point, Carol. And again, we're dealing with individuals so individual by individual basis. Certainly. but I have seen some very specific scenarios where. That has really torpedoed somebody's career, women of color's career. and then she had a successive accidental interim tenure. And then, as people are reviewing a resume, well, why was so-and-so there for just nine months? Well, so-and-so walked into a really terrible situation, but it's hard to communicate that to, a set of board members that are thinking about, gosh, are we going to take quote unquote, a risk? It's like, you're not taking a risk, but. A resume does not show a holistic vision of who a person is. And that's really unfortunate. So it's a good point. It can be very detrimental, particularly for women of color who are already up against it. A lot of implicit bias that comes up during the hiring process.
Carol: It almost reminds me of that. I don't know. What did they call it? The glass cliff? Not just the glass ceiling, but the glass cliff of being offered, women, women of color, especially being offered the impossible job. Yeah. And then people wondered why they couldn't complete it.
Carlyn: There's a really interesting, I can send this to you so you can share, really interesting podcasts and possibly a company article. And I think it's from Forbes or possibly a fast company that talks about this in the for-profit sector. but this exact same thing where women are called in to clean up a mess and then have an impossible job ahead of them. And then their performance is managed in a way that. Is not commensurate with the, with the opportunity ahead, right. Or the challenge ahead. So I think it's a very good thing to be thinking about that glass clip. And what does it mean to take over, particularly from a founder who is doing more than an executive director, would traditionally, do you have to reshape that role?
Carol: Yeah. And I think for any role, an executive director or any role when an organization is looking at a job description, especially if someone's been in the role for a long time. and of course a founder has, has its own particular set of circumstances or, or impact on the organization. But, anytime someone's been in a role for awhile, though, if the organization has done a good job of maximizing that person's strengths, the role starts to morph into what works for that person. And then you have to separate it from that person and think, well, what do we need from an organizational point of view? And what is realistic? What, what can really one person take on, how do you help boards walk through that process? So it isn't, and, and identify what those really key competencies are. It's not necessarily something that most people think about on a day-to-day basis. Yeah.
Carlyn: That's a great question as well. So it goes back to the, again, to the common misconceptions about why use a search firm. Versus being able to self administer a search. One of the things that we do for all of our clients is stakeholder engagement. So on the front end, we are not just reviewing key documents to get a sense of the lay of the land, or what does the last audit say and all of those sorts of things. But also we are surveying board members, key staff members from membership associations, the actual members of the association, key volunteers. Possibly even program participants, we're talking to funders, we're doing surveys. We're doing one-on-one phone calls. We're doing listening sessions. It’s just going to depend on what the organization's needs are, how recently they've done similar things. And we're trying to learn what was. What was really stellar about the last person in this position? What were some of the key achievements? What do you think is next? What's on the horizon? What hasn't been paid attention to that needs to, often staff culture is a big piece. I think we're really going through a. Tumultuous time. Rightly so.
In my opinion, where staff are much more vocal about what they're going to need from their next leader and what hasn't been happening, particularly in the equity piece, the racial equity or gender justice, or whatever, these different, different elements that affect images, visual organizations. And this is their time to be able to lift and surface that. And for the board to be able to hear that in an objective way, that's not the, The theses banged on the front door that says, we're demanding change or we are unionizing because our rights are being infringed upon. but enables the search firm to play this intermediary buffer zone and then communicate between the two parties about what are the needs of the organization. What's surfacing? We'll also hear from funders or other key stakeholders. What role does this organization play in the community and what, what gaps exist? So are there things that the organization could be doing that it's not, are there needs of the community that aren't being fulfilled? So it's the chance to do a, I even hate to say it like mini strategic plan, to really understand what are the opportunities ahead, what are the challenges that exist at this organization? And then we can effectively communicate reality to the potential candidates so that the board is choosing a candidate that can deal with the circumstances ahead.
Carol: No. I mean, the way you described it, it really is, essentially a mini strategic plan because all those stakeholder engagement is, is key to, any, any strategic process. And the, the, the timeframe may not be quite as long. To really help the board identify, what is this moment in time? Where are we in our life cycle? and then, what do we need from the person immediately? And then in the, in the short to long-term.
Carlyn: Yeah. And it also has helped them actually in conversation with a client that I've had over the number of years and their founders transitioning. And, we were talking about like, What's his pet project, right? The organization has been shaped around his identity and in many ways it's been really successful. His vision has helped propel this organization to really incredible Heights in a very small period of time for a period of time. But there are also things that are pet projects and the board. Recognizes it to some extent, but not necessarily the full extent. So that was the focus of our conversation yesterday, but it was really helpful just to identify, like there are some things that only he can do and only he wants to do. And so the next executive director might even bring their own pet projects and that's okay. But what is essential to the mission of the organization and what would be nice to have, but it's not urgent.
Carol: Yeah. I feel like so many of my conversations come down to that. What's truly essential and what's nice to have.
Carlyn: I think the pandemic has helped us get clarity around that. Hopefully as well, maybe not complete clarity, but.
Carol: At least realizing that that would be a good thing. If we can, if we can identify with the essential items, what mistakes do you see organizations making when they, when they're managing these later leadership transitions?
Carlyn: It’s all about timing. It's all about timing. So I'll often talk to people. That'll say. We're looking for the next person to be here by our gala, which is about two and a half months. And, yeah, I'm going to announce them there. Well, that's going to be tough if, if we work together, that's going to be tough. I'm not saying another search firm couldn't do it, but you're not going to have that stakeholder engagement. You're not going to have that reality check. You're not going to have that candidate care that comes through the process so often. Particularly for executive search at executive director or CEO searches boards are unaware of how long the process is actually going to take, which is usually about four to six months and most often six months. and that's from initiation to. Nope start date. So it's not necessarily from like, I, starting the search, the actual recruitment process to the offer, but that's from the stakeholder engagement to the person, actually walking in the front door. When you're dealing with executive directors, they need at least a month to be able to exit their organization and particularly, it's such a. It's going to sound funny to even say this, but it's a really tight job market right now. Like there are people who are very eager to depart their job and there are people that are very eager to hire new people.
I think I've never seen so many calls that we're getting that are going through executive transitions. I think it's a little bit of the baby boomer retirement. People are excited for new opportunities or maybe executive directors are exiting to take care of elder parents or child care. They scale back. They're so burnt out. And so it's just, there's a lot of things that are going to be floating around the market. So if you're an aspiring ed, this is your time to shine. But, if you're a board member, know that that is going to be very competitive to get the right person. And so you might walk away with the perfect person, but you might be offering it to a couple of different people. We've had a couple scenarios just in the last few months where someone's accepted a job offer, been in the situation where they're. They're negotiating parallel job offers, and you have to be willing to make some, some adjustments to your timeline, to the amount of money that you have on the table. All sorts of things. People aren't just thankful for a new job. They are careerists that are really thinking about how this fits into their personal and professional trajectories.
Carol: And what would you say to those aspiring executive directors? What are some things that they might start doing now to prepare themselves and help them be well positioned to apply for a leadership role?
Carlyn: Yeah. As much as somebody can do to shadow. The development function of an organization. So if somebody is looking to ascend into an exhibit creative director role, the board is paying close attention to how much fundraising experience they have, or what is their external facing experience? I think, unfortunately, and I say this as an introvert, extroverts are rewarded in a search, right. Somebody that can come in and really wow. Somebody, but research shows that introverts are actually better suited for executive director positions or leadership positions. So don't take that. But even introverted people enjoy connecting with others and, Thinking about the fundraising functions of an organization are going to be really key to aspiring executive directors. So even if you are not a development director, looking to move up, if you're a program person, we'll have you start shadowing, start having conversations with fundraising colleagues so that you understand the soup to nuts fundraising process, join a board so that you get hands-on experience of soliciting donations. Those are going to be key for you to be successful in an executive director interview. I tease, I have a colleague that works in a fundraising space and I was like, whenever you're ready to do something like an Institute for fundraising, like a three-day long weekend seminar to help fundraisers understand fundraising too. Do executive director positions. I was like, I will invest in that idea. So anybody has an idea you can call me. I will invest in that idea because it is so important. And it's, it, it really is lacking, unfortunately, in a lot of, a lot of potential, really awesome executive directors. And it's hard to change the board's mind around that because fundraising is so essential to an executive director position.
Carol: And then, once the search process is over, the person has accepted the role, what are some things to help set them up for success?
Carlyn: Yeah. So one of the things we do, bi-fold our onboarding plan with the transition committee and some staff members, so that there's 90 days worth of activities that are happening for that person. Now we can all remember an occasion where we've walked into an office and so much just like. Glad to have you, you sit here. Well, we don't want that to happen. We want everything to start off on a good foot, particularly for those executive directors. So, what are the technology needs that they're going to have? What are the key people that they need to meet in the first few weeks? How are they? Let's go ahead and set up meetings with the board members. That's all done for them. They like to walk in, they open their calendar and they're like, great. I’ll meet Jim for lunch next Tuesday. And Jill and Joanie are going to have a happy hour, blah, blah, blah, have all of that. Go ahead and set that up for them. So that it's really clear what they're supposed to be working on. how they're going to communicate what the organization's communication is to the community about the arrival, blah, blah, blah. And then what we also do is 30, 60, 90 day check-ins with both the incoming executive director and the board chair. And we do that for two reasons. One helps us transfer all of this great knowledge that we've received about the organization, through the stakeholder surveys, through people's individual perceptions of the organization, as we're going through the candidate process, tricky board relationships that you might need to navigate, all the things that we've, we've learned. As well as for the board chair, it helps us understand if there are hiccups along the way with that executive director so that we can bring in resources to course-correct if we need to, or if at the end of 90 days, things look like they're going to go sideways, it allows the, the board chair to understand what their options are. And if we need to replace that person, we can always go back to the candidate pool before starting a search. Good search firms are going to give a guarantee of their work that they'll replace the NEC the executive director within a year. we have not had to do that, but it's inevitable it's going to happen. And so, our guarantee is after a year, if within a year, somebody either resigns or is fired, we would start a search for free and. That 90 days helps us do that on the earlier side than like 360 days into that person's tenure.
Carol: Well, at the end of each episode, I like to play a game where I ask a somewhat random, icebreaker question. And so, if you were right, if you were to write a book, what would it be about,
Carlyn: Oh gosh, I mean work is such a big part of my life. I'd like to think I would write like a non-work book. Right. But so if, if I had to write a work-related book, I think we would really feature some of the great nonprofits that we're, that we're working with and use that as case studies. I think there's so many lessons to learn about. The executive search process, but the process happens in a vacuright? We don't get a lot of information about what's happening behind the scenes. Other than an email to say so-and-so is leaving and look so-and-so has arrived. And so what are some of the dynamics that are happening in nonprofits today and what are the different things that are needed that are different than 20 years ago? So what's the contemporary viewpoint on executive search might be my next book. We'll see if I can find time.
Carol: All right. Well, we'll look for that in bookstores.
Carlyn: Coming to a bookstore near you, coming to a bookstore and meeting you.
Carol: And, what are you excited about? What's coming up next for you. What's emerging in the work that you're doing?
Carlyn: It’s been, it's been a really interesting spring into summer. I mean, we're getting so many requests for searches, which is great. so we're building the team, so we'll have two new hires coming on this summer. and so thinking about how we build a team that represents the type of placements that we want to make. So no differentiating, and the nonprofit will only work in the nonprofit sector, but who are people in housing who are people in community development and all of those sorts of things that we're building those skills into the team are looking at racial diversity of our own team. we're looking at gender diversity, age diversity, all of these different elements for us so that we can serve our clients. Well, And I think we're really in just the beginning of a big way for executive transition. So we're trying to wax a surfboard and swim on out and get ready for the wave.
Carol: Sounds great. Well, thank you so much.
Carlyn: Thanks so much, Carol. I appreciate it.
Carol: I appreciated how our conversation about how too often people of color, especially women get handed a “glass cliff” assignment in leadership. This could be succeeding a founder or being hired to turn around an organization. These glass cliff assignments not only serves to hurt the individual’s career, they really do a to the sector more broadly. As organizations prioritize racial equity in their hiring, they need to do the work that ensures that their focus on equity is beyond just the hiring process. That they are doing the work internally to ensure new leaders of color have the resources they need to succeed in their roles and they are not being expected to do all the work of anti-racism for the organization on their own. Thank you for listening to this episode. I really appreciate the time you spend with me and my guests. You can find out how to connect with Carlyn as well as any links and resources mentioned during the show in the show notes at missionimpactpodcast.com/shownotes. I want to thank Nora Strauss-Riggs for her support in editing and production as well as April Koester of 100 Ninjas for her production support. We want to hear from you! Take a minute to give us feedback or ask a question at missionimpactpodcast.com/feedback. Until next time!
In episode 26 of Mission: Impact, some of the topics that Carol and her guest, Sabrina Walker Hernandez discussed include:
Sabrina Walker Hernandez is the President & CEO of Supporting World Hope. She has over 25 years of experience in nonprofit management, fundraising, and leadership. One of Sabrina’s greatest successes is that she increased operation revenue from $750,000 to $2.5 million over an 8-year period as well as being responsible for the planning and operations of a $12 million comprehensive capital campaign in the 3rd poorest county in the United States. She has also facilitated numerous workshops with hundreds of nonprofit professionals and is a master trainer for the Boys & Girls Clubs of America. Sabrina is certified in Nonprofit Management by Harvard Business School. She is an active community leader and volunteer in Edinburg, Texas where she is based.
Important Guest Links:
Carol Hamilton: My guest today on Mission Impact is Sabrina Walker Hernandez. Sabrina is the President & CEO of Supporting World Hope. She has over 25 years of experience in nonprofit management, fundraising, and leadership. Mission Impact is the podcast for progressive nonprofit leaders who want to build a better world without becoming a martyr to the cause. I’m Carol Hamilton, your podcast host and nonprofit strategic planning consultant. On this podcast we explore how to make your organization more effective and innovative. We dig into how to build organizational cultures where your work in the world is aligned with how you work together as staff, board members and volunteers. All of this is for the purpose of creating greater mission impact.
Sabrina and I talk about some fundraising fundamentals. We talk about what makes fundraising so scary – especially the ask – and why the ask is actually only 5 percent of the process. The first part of the cycle is identifying and qualifying potential donors, and then the most important part is cultivation or building relationships. And then ultimately it comes to the ask. And then thanking the donor – the way they want to be thanked! But a lot of the work is the fun work of getting to know people and getting to know whether they would be excited about your mission. We talk about why both extroverts and introverts can make great fundraisers as well as why it is so important to remember that you are not asking for the money for yourself – it is for the mission you are working towards and the people your organization works with.
Welcome Sabrina. It's great to have you on the podcast.
Sabrina Walker Hernandez: Thank you for having me here. I'm excited about our conversation.
Carol: So to get us started what drew you to the work you do? What, what motivates you and what would you describe as your why?
Sabrina: Well, I, as I thought about that question it really amazes me that it goes back to childhood. My mom was a missionary in the church and we grew up really doing service projects in the community through the church. And now, in retrospect, I realized that it really had an impact on my life. When I was drying up, I thought I wanted to be an attorney. And so I went to college, did pre law But then I'm going to intern with a non-profit and I realized that being an attorney did not give me any joy. I did an internship with this nonprofit called advocacy resource center for housing. And I had to mediate between landlords and tenants who were being evicted. And I got to work with a lot of attorneys and the way attorneys work is there is no. Right way or wrong way. There is only the law. And I discovered that in that process, and I realized I didn't want to be an attorney, but really what spoke to my heart? What reminded me of my childhood, what reminded me of what my mom taught me was working on the non-profit side. So since that day I have been hooked on this journey.
Carol: And we're certainly grateful for all the work that lawyers do, especially in policy and helping laws get revised, et cetera. But I love the, your, your point about it. Didn't bring me joy, like, okay. How do you “Marie Kondo” your career and the fact that you did it from the very beginning from your very first. Job and an internship that really was a pivotal moment for you. I'd love that. Yes.
Sabrina: Save me a lot of time and a lot of money. Let me just say right.
Carol: I mean, to have done it before, you're going to law school yeah. Too many people wake up 10 years later and go wait a second. What am I doing?
Sabrina: Exactly. So I'm very, very appreciative of the process.
Carol: Yes. Yes, definitely. So you focus on helping non-profits be more successful in their fundraising efforts and a lot of folks when they're new to the sector, whether they're staff or a staff leader or board member, and probably myself too - I'm not a fundraising person - are afraid of fundraising. They don't want to ask people for money. It feels awkward. What helps make it feel less scary for folks?
Sabrina: Well, I think helping people understand that the fundraising process is more than making the ask. The ask is only about 5% of the fundraising process. And so I tell people don't let that 5%, Deter you from, from the whole thing. So 20% of fundraising is really identifying and qualifying who the donors are, do these donors, does my mission resonate with them? Are they passionate about kids - if I happen to service kids. Are they passionate about animals or the homeless or. Whatever it is your non-profit does. And then saying, okay, if they're passionate about my cause now, do they have the ability to financially support my calls? And then once you identify it, that's like 20% of the fundraising process. So now you have your list of the names of people who, having an affinity to origin of mission and have the ability to give towards your mission the next 60%.
And that's the highest percentage of the pie, 60% is cultivation and cultivation is building relationships. And personally, I like that. People and I like building relationships. So building relationships means taking them out to lunch. It means picking up the phone and checking on them. It means inviting them to an event, and making sure that you connect with them at that event. It's inviting them in to volunteer for a specific program or having them come in on a tour of your nonprofit. That's the part that I really like and stuff. I really appreciate that as 60% of the fundraising process. Because if you are a social butterfly, you really like that part. Even if you're not a social butterfly, my introverts also Excel at that part because they actually listen. They can build those relationships and they remember those details. And then 5% is the ask and that's. Oh, it is. And then most of the time, especially with board members, I always say a lot of board members are not going to feel comfortable with the ask, even that 5%. So I always say board members come along with me on the visit for the ask. But what I want you to do is be there to land credibility, because you are a volunteer and. They know that you are volunteering your time. Whereas I'm a staff person. I get paid to do this job. I get paid to perform this mission. So I will make the ask, even if it still makes me nervous, even if that 5% still makes me nervous and it does 20 something years later I will do that part. And uttering that phrase. Will you consider a gift of $10,000 to our ABC nonprofit? Once you say that. You be silent. Right. And I always say the first person who speaks, loses so just be silent. And then beyond that, 15% is thanking, thanking the donor, making sure they understand the impact that their money provided, making sure they understand how that program affected individuals in your clientele roster? So that's the whole fundraising process and I think people still get a little caught up on that 5%. Like I said, I still get nervous, but one of the mantras that I would tell myself before I went into any fundraising ask, It was always, this is not for me. This is not for Sabrina. This is for the kids that I serve because I worked in a youth serving organization. This is for the kids that I serve. They deserve to have the best. They deserve to have opportunities. They deserve to have hope. And you're going in here on their behalf because they cannot. Speak for themselves. So I remove myself from the conversation because all of that nervousness and fear is really about self and you're not there for yourself. You're there for your client. And for those that, you're the reason why you are in this mission. The reason why, if you're a founder, why you started this. So that's one of the mantras that I tell myself as I go into the room. That's a great reminder. Cause it, all, yeah, all that nervousness and how will, how will it come across and what will they, is all caught up in, what will they think of me? And, and so, yeah. So removing yourself out of the equation, reminding yourself, going back to the original question of why do you do this work? Why, what motivates you? Why did you choose to work in this particular organization? All of those things to reconnect you with the mission.
Carol: That is what the person's contributing to anyway, right? Yeah, they may be handing it to you. It may be in the, in the, in the before times, but they're, they're really about supporting that organization and the work it's doing. So you talked about different percentages and the first one being identifying and qualifying possible donors. For someone who's getting started in this. Maybe they've had some, most organizations will be doing something around fundraising, but maybe they haven't really been strategic about it or been really super intentional. Where would you S what, where would you say you should start in terms of thinking about who might be those folks that ultimately would end up on that list to start being qualified as donors.
Sabrina: So one of the exercises that I like to do is I like to do this thing called a list generator. They have the circle of influence and the circle or the sphere of influence. And the sphere of influence is where you draw a little circle and it's you, and then you put spokes off and you identify like. People that, that one for me, doesn't give me enough details. I happen to serve on a board of directors and it is really funny because of my experience in nonprofit. And that's one of the things that I did was like, okay, so we need to we, we, we have this event coming up and we need to get some sponsors. So can you write down different people? And my mind went totally. Blank. And I thought this is how board members feel. Got it. Got it. So it's always nice to have a tool called a list generator. And this list generator is a tool that I use in his front and his back. And basically it says name two people that you are in a service club with name to people that you attend church with name two people that are in law enforcement. Name two people that are elected officials and the list goes on and on and on. And so about the time you finished with that list, you have about 25 names, right? And so then from that 25 names, you can narrow it down and say, okay, of these people who have an affinity towards this mission, who do I think our mission resonates with. So that's one of the ways that you can do it. And then another way that I like to do it once you have those names, I still read the newspaper and I still look at magazines and things like that. And a lot of times non-profits will do the, thank you, post an event and I still scour those and I still look at them and see, okay, who sponsored this event, who, who who's involved in this, because that also helps me generate names and not only generate names, it helps with the affinity part because now not only do I have their name and it might be a name that's on my list. But I also know that they have the ability to give and they, and they have given in the past. So I use those two methods and I encourage boards to use those methods because even if you only have three board members, if it's three board members and you each walk away with 25 names, that's 75 people that you have to vet and go through. And so that's a good pool of people. And if you're lucky to have a CRM system, then I say, go to your CRM system and see who your last donors were, who were your most loyal donors, who's giving the longest and start from that process.
Carol: CRM being customer relations, management, and database thing. One thing that I loved about how you described that process is how you made it so concrete instead of just a blank sheet of paper, and think of the people you gave us all sorts of different categories. And even if someone didn't have two people to put in one specific category that would probably get them to think. Let's say, I don't know anyone in law enforcement, but I think who else works with law enforcement, but I know, this person who is the head of the hospital or whatever it might be in the community, it really, by being concrete, you help people spark the ideas and, and. shift out of that.
Sabrina: I had a blank piece of paper and what am I supposed to do with it? And then what is funny because this, that was my first thought as a board member, I couldn't believe it. And then you also have those that think, well, I don't, you tell them to give names and you talk about fundraising or sponsorships. And one of the first thoughts is also, well, I don't know anybody that's rich, or I don't know, I don't know anyone or, but when you give them that piece of paper with some ideas on it, it starts to generate another conversation and you start to put people on there that you hadn't even thought of. So it's good to give board members and staff members only about staff members. If you have staff members you can go through that process with them as well.
Carol: And you said the next, the next really, and the biggest chunk of the whole process is the cultivation process. And when people hear relationship building and they hear cultivation, they think, oh, but it's all about fundraising. They may still feel a little anxious about it. Well, is this really just transactional? And am I just trying to get something out of someone? So how do you help people really be authentic and how they're building relationships with folks?
Sabrina: It's funny that you asked that question because I had someone to ask that question as well, and I told them, look, you're a nonprofit. They already know you're coming. Yeah, there is no way around it. Just accept that they know that you're a non-profit and that's not a bad thing. I said people should have one or two reactions when they see you. If you're working with a nonprofit, they should like, oh my God, here, she comes. She's going to ask me for something or, oh my God, here she comes. Let me think about what I can give her. Those are these reactions because they should have. It's not a bad thing again, because you're not asking. Meaning for yourself, they are truly identifying you with the mission of the organization in the night. Oh my God, here she comes. What is she gonna ask me for, for herself? It's like, what is she going to ask me for, for her organization? And so it really is As a nonprofit, they genuinely know that you are in the fundraising business. They know that you are developing a relationship with them in order to not as a genuine relationship, but it's also in order to support the work that you do. And I've had some very great relationships that have developed through that process. In 2018, I got diagnosed with cancer and I had been working with my organization for about 20 years and all of my donors came together. These people that I had built relationships with over time and they all pulled together and they sent me a $20,000 check and I did not ask for that. And that was for Sabrina to help with her medical bills. And that was because of their relationships that I had built with them. But when I go out and I take donors, potential donors out and get to know them, it's not necessarily always talking about the organization. It really is learning about their family, learning what they're passionate about, learning about their career. But not what college date they went to, trying to find some of those common grounds? I just enjoy learning about people. And I think that if you go to the table with that in mind, I want to learn about you as a person, then that will also come across. it's not, I want to learn about you as a person, just so you can support me.
My nonprofit, most of the time, what I do is, and I guess maybe this is some tricks, not tricks, but this is, this is some things that I've done that have helped bridge that. So if I invite you out for lunch, I'm going to pay, I don't care if you're worth millions of dollars. That doesn't matter to me. I am going to pay because I extended the invitation to you. The other one is If I, if I am listening and I realize, oh, this person collects horses or this person collects shoes or whatever it is, if I'm out of town or if I see something that I think you might like, I will buy that for you and I will make sure that you get it right. So it's those little things like that. And also another thing that I do is I always go to the table to see how I can be of service first. That is a G that is a true key to it. How can I be a service to this person first? And lots of times that really smooth the process because when I'm at a mixer or I go to lunch with somebody, I'm, I'm constantly listening to what it is that they're doing and what they're passionate about. And I see how I can be a service to them.
Carol: I love that point about listening and really keying into, what's important to them looking at thinking about it from their point of view, what are, what are other interests that they have that, that you can, and then to remember those right, and, and to take the time, be thoughtful enough to. As you said, if you're, if you see something or send them something related to that, so that they know that you, that you care and you took the time to, to pay attention to them as an, as a unique individual.
Sabrina: Yes. Yes. Even if they don't give, you can spend a lot of time and cultivation and ultimately they might not be in alignment for them. That's okay. You do not sever the relationship. You continue with the relationship because there, your relationship is with that person, not with their ATM card. No, that's very important to remember
Carol: For sure. One thing that's interesting from your background is that I think a lot of people think, well, fundraising is easy in New York or Silicon valley where there's these massive cons for DC, I'm in the DC area. Were these, just these massive concentrations of wealth. But you spearheaded a really large comprehensive capital campaign in one of the poorest counties in the U S so I'm curious how you were able to be successful in that situation.
Sabrina: Well, I God, That's what I say, but no, it was, it really was having the right people on the, on the bus and having the right team behind you. So, it was really interesting with that $12 million capital campaign. I had a board of about 17. Board members. But my capital campaign was really five people. And four of them were not board members. I had one board member that was on that capital campaign committee. But the other four people were really just the good team identifying those in the community that were already very, very philanthropic. Right. So having those people and cultivating those people. It took about a couple years to cultivate those people and, and make them aware of who we were and make them aware of our services.
And so we started out, inviting them in, on a tour going in and with a board member and, and making introductions and talking to them, joining some of the same social clubs that they joined, a lot of them. Two of them, half of them, were Rotarians. So joining the rotary club and getting really active there so that they could see the work ethics so they can learn who you are as well. So it took about two years to cultivate that team of people that I really wanted to have as the capital campaign committee. And so that, that was really how we, how it was done. It was thinking very strategically. And saying, okay, who do I want? As my capital campaign team, and I had to look and see who, when you think of especially in a small community, when you think of philanthropy in that community, What name keeps rising up over and over and over again. Now having said that, that everybody is after those same people, right? So now how do you set yourself apart from everybody else? And, and that was one of the strategies, cultivate them, invite them in, but also be in the same circle that they're in. Again, if they're heavily involved in rotary, you get involved in rotary. If they're heavily involved in the chamber, you'll get involved in the chamber. It's almost like social stalking. But it is so that they get to know you on a whole nother level.
Carol: Right. Because they're looking for your competence. Do they have confidence in you that you can talk about a wonderful mission and it sounds great, but do they, do they trust that you'll be able to make that vision happen? I do a lot of strategic planning and of course organizations are oftentimes through a process coming up with a big vision that then they're like, oops, how are we going to, how are we going to fund this? So What, what do you say in terms of getting started in terms, just in terms of building a fundraising strategy, you talked about the different phases, but I'm wondering about what some of the first steps for coming up with a good plan are?
Sabrina: So I think one of the first steps of coming up with a good plan is it's always amazing to me. How many nonprofits, especially the newer nonprofits now just winging it as far as the budget is concerned. And so I'm like, look guys, It's a guesstimation, especially in your first year, right? It is how much revenue do you anticipate bringing in and breaking that down as in. Okay, so I'm going to do a peer to peer campaign and it's going to bring in this much, I'm going to do an event and it's going to bring in this much. I'm going to budget this much for grants. Okay. Okay. And then have your expenses. The expenses are generally a little bit more concrete than that than your revenues, right? So what your expenses are, and then you're going to work your butt off to hit those revenues. And if you don't hit those revenues, then you have to adjust your expenses. Something has to go. So having an operating budget in place would be one of the first strategies that I say that you need to have. And then beyond that, I think that Nonprofits need to be innovative in their pursuit of different revenues. And when I say innovative I hate that nonprofits get on that specially vent wheel. I want them to get off that wheel so bad of jumping from one event to the next event. To the next event, because that's really not getting you anywhere, especially about a time you factor in hours, board, our staff hours, all of these things. So I always tell them to have maybe two signature events figure out what your signature events are. And the first year, of course, you're not gonna. Raise a huge amount.
But as you, as you move forward, you will improve the event and you will continue around the innovation specifically, though. I think that people need to look at social enterprise. They need to be looked at, depending on what state you’re in, and of course I'm in the great state of Texas and we're a little bit more loosey goosey down. Yeah. Y'all seen our rules, they got that tight on. So we can do a lot more things than others. look at bingo revenue. Look at, like I said, a social enterprise looking at how you can do some type of business partnership as well. As far as sharing the credit. And that's when businesses can designate a part of their credit card processing fees to a nonprofit. So look and be innovative, explore some of those innovative things that you can do that will help you towards your revenue. So don't get stuck in the traditional and the mundane because that traditional, most of the time, people. We'll go to the special event and Vince can be very straining on time and on budget.
Carol: Yeah. And, and off too often, I think Organizations, if they really factor in all the work that goes into producing that event they may have had a nice number on their gross revenue raised, but the net doesn't look as pretty,
Sabrina: It does not look as pretty, especially by the time you factor in all those hours. Yeah. So yeah. I would do no more than two signature events, if I can get anything out there, no more than two signature events, that's it.
Carol: So in the last year, obviously a lot of fundraisers have really relied on those face to face events. And of course, couldn't, couldn't do those. What kinds of innovations have you seen over the past year as people have had to pivot.
Sabrina: Well, I've seen I attended a lot of virtual events. Of course I attended them just kind of, I guess I'm a stalker. I stopped a lot of virtual events. And I saw people do some really creative things. I think some type of hybrid events are here to stay. I hope they're here to stay because they're less, the cost is less to put on a virtual event and you can still even engage. If a celebrity, if that's who you want to engage, you can engage them. At a much lower cost because it is virtual and there's no flight involved. There's no hotel involved. It might be a discount, a speaking fee because it is virtual. I saw one local nonprofit that raised money for scholarships. They actually bought in a comedian from Saturday night, live home. Yes. And I thought that that was. Great. Cause it's kinda right there, you live where you get to laugh, you get to the end. And not only that, they also partnered with the local restaurant so that everybody received the delivery of some wine and like let's just say wine and a meal. So everybody was enjoying their wine and meal at home while they got to listen to this comedian. And I thought that that was good. I liked the concerts as well. So things like that. I think that hybrid is, like I said, I think that some form of hybrid is here to stay. As long as the donors will support it. I tend to appreciate not having to get up off my couch and go somewhere. That's just me though. So we'll see how it goes. But I will say at the same time, just this past week I went to two different events. Because even though I enjoy the virtual world, there is something about getting out, people are ready to get out. But I think that the pendulum has swung and it will come back to where you can do some hybrid things that people are very used to now.
Carol: Yeah. Even before I'm thinking of this, it wasn't a fundraising event, but it was a conference where I was on staff with the organization and it was a big conference and they had a fair, a good budget for, for really. Premiere speakers and, one year the person that they had lined up something happened either with their travel or something with their family. They weren't able to show up. They got them on the equivalent of zoom at that time. That was several years ago, and had them up on the big screen. And honestly, because it was such a big event for most people, they were looking at the JumboTron, you, even if the person was in the front of the room, if they had been in front of the room.
Sabrina: So, they probably had a better seat.
Carol: They probably had a better view? And it had a different feel. Yeah. It was very interesting to see. So yeah, it gives you, it gives you access. So even if all of your local people, you want to have come and gather and be able to socialize face to face, if you think about that, you can. You could. potentially pull in someone with a little higher profile that you wouldn't be able to afford normally.
Sabrina: Exactly. Yes. And they wouldn't say yes. And then on top of that, you will also put a pool in some additional donors. Like I said, I attended a lot of virtual events and none of them were necessarily in my backyard. They were on the east coast or west coast or somewhere in between. And I would not have had that opportunity to do that, had it not been virtual. So I think it's a good thing. I hope it is here to stay. Like I said, I hope it's here to stay only because of the cost factor for nonprofits and saving on the staff hours and, and all those things that go into those events I think would be a good thing for nonprofits. And I think, I had a donor that used to tell me, don't buy me that plat, that just put the money towards the mission. I hope that at some point we will. donors will say, what, y'all need to hold that in-person event. Let's do this hybrid to save some money for the mission. it might become a standard like that. So we'll just have to wait and see, the world is constantly changing. So we just go with, go with the flow.
Carol: Yeah. And I mean, having produced a lot of virtual events, not necessarily fundraising events, I wouldn't want. Organizations to, to think, I think from an hours point of view, it's pretty equal in terms of the planning and all of that, that has to go into it. But the direct cost is substantially different. Cause you're so right. You may cater from a restaurant, have people deliver some food, but. you're not paying for hotel space in a ballroom and all of that. So yeah.
Sabrina: Yeah, so that directs their direct cost which is a lot less, the centerpiece is the linen, the napkins, the plates,
Carol: You don't have to worry about it.
Sabrina: And then the cleanup afterwards, God forbid, you don't have to deal with any of that.
Carol: At the end of each episode, I play a game where I ask folks one icebreaker question. I've got one for you here. Okay. If you could be famous, what would you want to be famous for?
Sabrina: if I could be famous what would I want to be? If I could be famous, I would want to be famous for curing cancer because I've had that journey. And I know a lot of people who are having that journey and it's not something I wish on my worst enemy. So it would, it just seems like it seems like more and more people are having that experience. And I think that that would really truly impact the world in a positive way.
Carol: It sure would, no doubt. No doubt about it. What are you excited about? What's coming up for you in your work? What's emerging?
Sabrina: What's coming up for me and my work is, I am in October holding a summit and I will be launching that pretty soon, but what I really want people to, to, to leave with people is to join my Facebook group is called nonprofit professionals exchange. And I live there every Thursday. And I do like 30 minutes to an hour coaching, free coaching based on the questions that they post in the group. So again, and I share in that group, I share a lot of free content. And every day at two o'clock in my group, a free tool pops up every day. No doubt about it. There is a free tool out there. I remember being a CEO of an organization and not having time to research because you're wearing so many hats. So that's one of the reasons why I started this group. I'm going to do the research for you. Here you go, come to one central location, find that, that information. So you don't have to go down. I call it the Google rabbit hole. You don't have to go down the Google rabbit hole.
Carol: We'll put a link in the show notes to that group so people can find it. And that's, and as you talked about, I mean, you talked about from the beginning what got you into this work was an ethic of service and approaching fundraising from that point of view, and then sounds like how you're approaching this work as well. So I really appreciate it. Thank you. All right. Well, thanks a lot. It's been great talking to you. Thank you.
I appreciated how Sabrina reflected on her experience as a board member and how that experience made her a better fundraising consultant. When she was asked to ‘think of 20 people’ to reach out to – she went blank. So now instead when she is working with a board, she has very specific prompts that help spark people’s thinking. I also appreciated her point – that when you are with a nonprofit and you are getting in touch with people in the community – they know….they know you have to fundraise and if they are working on connecting with you and building a relationship that part of it will be about how you might be able to support the work of the organization. They know you are coming! So with that in mind, it is easier to put that concern aside.
Thank you for listening to this episode. I really appreciate the time you spend with me and my guests. You can find out how to connect with Sabrina Walker Hernandez as well as any links and resources mentioned during the show in the show notes at missionimpactpodcast.com/shownotes. I want to thank Nora Strauss-Riggs for her support in editing and production as well as April Koester of 100 Ninjas for her production support. If you enjoyed the episode, please share it with a colleague or friend. We appreciate you helping us get the word out. Until next time!
My passion is helping nonprofit organizations and associations have a greater mission impact.
Grace Social Sector Consulting, LLC, owns the copyright in and to all content in and transcripts of the Mission: Impact podcast, as well as the Mission: Impact blog with all rights reserved, including right of publicity.