Get that Money Honey with Rhea Wong
In episode 67 of Mission: Impact, Carol and her guest, Rhea Wong discuss:
Rhea helps nonprofits raise more money. Though she has deep experience with institutional, corporate and event fund-raising, she is passionate about major individual donors and helping organizations to establish individual giving programs. She has raised millions of dollars in private philanthropy and is passionate about building the next generation of fundraising leaders. She has become a leader in the New York nonprofit community and is a frequent educational commentator in the media. She has been recognized with the SmartCEO Brava Award in 2015 and NY Nonprofit Media’s 40 under 40 in 2017. Rhea lives in Brooklyn with her husband. When she is not raising money for causes she loves, she can be found hosting her podcast, Nonprofit Lowdown, promoting her newest book Get that Money, Honey! or onstage as a newbie stand-up comedian in downtown Brooklyn.
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Carol Hamilton: My guest today on Mission Impact is Rhea Wong. 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 for this is for the purpose of creating greater mission impact. Rhea and I talk about how founders have to shift their thinking if they want their organization to grow, what rocks and pebbles have to do with nurturing donor relationships, and how accidental fundraisers can build their confidence.
Well, welcome Rhea. Welcome to Mission Impact.
Rhea Wong: Thanks so much, Carol. It's so fun to be here with you.
Carol: I have to say thank you for back in the day when you actually had me on your podcast before I had started mine, and it was part of what helped me have the courage to step out, and launch my podcast. So thank you for that.
Rhea: Oh, you're so welcome. I love it. I feel like the more the merrier we all need. good voices out here sharing knowledge. So awesome.
Carol: Absolutely. Absolutely. So I like to start out each conversation with what drew you to the work that you do and what would you describe as your why, what, what motivates the work that you're, that you're focused on?
Rhea: So sort of different iterations. So I started as a 26 year old executive director in New York City. And first at 26, I knew everything right? But in retrospect, I don't know whose idea it was to hire a 26 year old. Anyway, I talk about this a lot, but on my first day on the job, I did two Google searches. Google Search. One was, what did this executive director do? and Google search too was, how do you fundraise? Because I was that clueless.
And so over the course of 12 and a half years, my team and I built up the organization from 250,000 a year to just a little bit under 3 million in private funds in New York City. And it was a great ride and, and I really credit a lot of folks helping me in a really great team, but I also just thought, why did it take me 12 and a half years to figure this out? Like I'm a smart person. Surely this should be.
And what I found is that a lot of people have been put in these positions as executive directors or even development directors without ever having received formal training. I called them accidental fundraisers, right? And so in the next iteration of my career, I am doing it for the 26 year old me that was super clueless. I mean, I Googled, I got meetings with anyone who would meet with me. I sort of cobbled together what I would consider an MBA in. And fundraising. And the truth is the world needs a lot of healing and the folks who are doing the healing don't have time to waste to figure it out, like I had to figure out how to fundraise to bring the resources to the work. And so I do what I do because I remember what it feels like to be in. A seat and feel such a sense of responsibility and yet feel so clueless and alone in how I'm supposed to do this.
Carol: At least at that point there was Google for you to tap into folks beforehand, probably were, were flailing around and, and having less, less easy access to, to ways to learn. But I love you. Taking that and really streamlining it cuz, right. Why, why should it take anyone that long to really get good at what a it's a basic function for most nonprofits. Although it's rarely why people go into the field or go in and, or want to do the work that they're doing. it's often around. They wanna move a mission forward. They have a, they, there's something that, I was talking to somebody yesterday and she got started because X, Y, Z thing really pissed her off and those kinds of things. Mm-hmm. are the things that draw people into the field or have them start organizations or join organizations cuz they wanna make that difference and yet without money, without funds to and resources. There. There, there's. you can pursue a mission, but you're just so much more limited in your scope. So really being able to step into fundraising is so important. So what would you say to people? What are they, what are the first things that they have to learn as they're, getting, getting better at fundraising and a, and advocating for their cause?
Rhea: Before I answer that question, can I just respond to Sure. Absolutely. Cause I think it's really important if you're 100% right and this is usually the curse of the founder. So in, in a sense, I'm a little bit of a founder as well, but nobody starts a nonprofit cuz they're excited about fundraising. I totally get that right. On the flip side though, I think people who start nonprofits have to really come to terms with the fact that they're starting a small business. Mm. And a small business does not run without revenue.
And so, As you are growing an organization, especially if you are the executive director, you have to recognize that what got you here won't get you there, right? Your job is no longer, I, I like to say pet the panda bears as just a. a cheeky way, like your job is not to pet the panda bears anymore. Your job is to bring in the resources to hire people, to pet the panda bears. And where I see a lot of folks stumble, particularly founders, is that they have not upgraded in their own minds what the job is now. Like they realize, they don't realize that the scope of responsibility has changed because they're so connected to this vision and identity of themselves. It's like, well, I'm just the one who pets the panda bear.
And so that's where we see a lot of founder syndrome, like people who failed to build an institution around the idea. And so without a clear strategy for revenue, without an institution, you just have a hobby really. It could be a well-funded hobby, but it's really just a hobby. And so that's for all the folks out there listening, especially the, the founders in the eds, you are my people and I love you to death, but also. You have to run it like a business because it is a business.
Anyway, To get to your point though the question about what are the things that people have to know I mean, there's so many things, but I think so many things, right? So many things. But, one of the first training I do with the folks that I work with is around money mindset. So I think. Carol, I know you and I spoke about this, but we operate in such a scarcity mindset in the nonprofit sector. Like, oh, we can't afford that. And even the word is, is a negative, a nonprofit, right? We don't have enough time. We don't have enough money, we don't have enough staff, we don't have enough. No, we can't, can't, can't. And so what that does is it puts us in a survival mindset. And so when we get into a survival mindset, that's when we get reactive. That's when we get stressed, that's when we get transactional and we treat people like they're walking ATMs. And so the thing that I really want to get across to people, is that the job is not about chasing people down and extracting money from them. The job is to attract. Partners and inspire them and compel them to give because who they are in the world is intertwined with what you do as an organization and that there's an ever-growing cycle of growth and learning and interconnection.
Carol: I was just talking to someone recently about what they termed the ladder of engagement and, and I was actually reflecting on the number of. Newsletter, email newsletter lists that I'm on for nonprofits. And when I receive the number of invitations that I have to donate mm-hmm. But how few invitations I get in a really concrete way of how to get more involved and, and volunteer with them so that they, I would actually learn more about the organization. They would learn more about me. to me, to my mind, I probably would also be more motivated to give more versus mm-hmm. the 10th email that they've sent me for donations. So I love that. What you're talking about, about that interconnection.
Rhea: Well, the other thing too is I think, gosh, Cal even began, but so many nonprofit people have no expertise in marketing, which like, why would you? Right? I mean, that's not what the job is. But there's a concept of marketing of a nurturer sequence, and what a nurturer sequence is, is you're literally nurturing the relationship. And so what. Talk about a lot with my nonprofit clients if you have to think of all the communications that you're putting out as pebbles and rocks. Pebbles are the nurture sequence. Pebbles are the stories that you tell. Pebbles are the invitations to come to an event or volunteer or anything that builds trust. The rocks are the actual tasks. The thing, the mistake that I see people making all the time is that all they're throwing out are rocks. All they're throwing out are asks without the pebbles of building the trust and nurturing relationship, and fundamentally, Trust equals donations. So if you haven't done the hard work of building my trust in you and building my relationship to the organization, you have not earned the right to ask me for a donation because you have not gotten the trust.
Carol: And I, the, the image of people throwing rocks at me is not very inviting.
Rhea: That's true. Well, just think about like a pond, right? Like a big splash. So your, your rocks are like, they make a bigger splash, but you need the little pebbles to agitate the surface. I dunno if this is the best analogy, but the point being that you can't be throwing rocks out all of the time because people get tired of that. And also you. Established enough trust. You haven't established a relationship. You were just talking to me as if you're just extracting and like, by the way, 10 emails sent to me to ask me for money does not make it more likely that I'm gonna send you money. Right.
Carol: Right. And no. I haven't necessarily responded as they want me to. But, and probably because it is feeling transactional on my end.
Rhea: I mean, I think the other mistake, and I think it's a function of being so deep in this scarcity mindset, is that fundraisers, and I get it, fundraisers are getting it from both sides, right? They'll probably have an ED sitting on top of them or a board sitting on top of them being like, bring in the money. And then you have donors on the other side and, and you're just, you're in the middle. We so often think about what we want as a nonprofit. I like my fiscal year. I wanna do this. Me, me, me, me, me. It's the rare nonprofit that thinks about the donor. Like, what does the donor want? What does the donor experience, what do they want to achieve with their money? Right? Like, we all want something in the world. Good or bad, right? Like maybe I care about the pan bears, or maybe I wanna think of myself as the person who is in conservation or whatever it is. But how often do nonprofits actually ask me like, what do I want to achieve with my money? Like, why would I give to this organization and how is it aligned with my values and my purpose? And so, I think we as fundraisers need to think of ourselves as facilitators of our donors' experience. we're, as philanthropic advisors as opposed to, extractors of resources.
Carol: And I love that idea of a facilitator of an experience because that that would, if, if someone were thinking about it that way, they'd provide. different ways to have experiences with the organization and, and not just that one that keeps getting, drum drum, drum on. So, that facilitation is a really interesting idea.
Rhea: I mean, it's like, why, like why is Disneyland the happiest place on Earth? Like it's, and they're making money and make no mistake about it. But I would submit. it's because they've really thought about how to make a magical experience. And when you go to Disneyland, you're essentially buying an emotional experience, right? And you're like, what? Fine, go on the rides, whatever. But you're buying awe. You're buying magic in a sense. And I think as nonprofits we really have to orient ourselves to asking like, what kind? Experience, what value are we offering our donor? By being a donor with these NPSs? That doesn't mean I get the experience of getting like 10 more emails asking me for money. Like, that's not, that's not why I give money. And like also, I'm actually, I'm also pissed off at the donor. Like when I give to particularly political, political campaigns, I'm calling you. Hey, what's the thanks I get for donating? Oh, I get 50 million more people asking me for money cuz you sold my email address. Like that does not inspire trust and confidence.
Carol: Amen to that. Amen to that. Where have you seen organizations do a good job in creating that experience? Maybe that magical experience that you're talking about.
Rhea: Honestly I don't know that I, I can point to an exemplar. Let me think. I mean, look, how about good? Let's say good. I mean, what, I'm, I'm just gonna, everyone says, I'm just gonna call it Charity Water does a great job, and I, I'll tell you why. So, From a communication standpoint, most nonprofits put too much information on their website. It's very confusing. I'm not sure what I'm supposed to do. When you go to Charity Water, it's very clean, it's very straightforward, and they answer three questions. What problem are you solving? Why should I donate to you? So it's about competency and transparency and what's in it for me. And so if you scroll down and it's like, oh, well you can be part of our, peer-to-peer giving thing and it's really about building a community around an idea.
And so, I mean, I think Charity Water probably does the best job of understanding that. Are designing around a donor experience and a donor emotion as opposed to making it about them and about talking about what they need or what they want. Because in a sense it's sort of irrelevant. And like, here, I wanna be really, really clear because I, I know I might get some pushback here from people who are donor-centric versus community-centric. And I, I'm not gonna step into those muddy waters. Fundamentally, what I'm advocating is, is being empathy centric, right? We all have stories, we are all the main characters of our own personal movie, and there's space for all of it. But if I'm a donor and I don't feel appreciated, if I don't feel. Like I am part of a community. If I feel like you're just looking at me like I'm a walking track book, I'm gonna take my track and go somewhere else.
Carol: Actually as you were talking, I was, I was thinking about the whole move towards community centric fundraising, which I'll, I'll have to admit, I don't know a ton about. But I like that rephrase of empathy centric fundraising. So it's, and that can be e e e empathetic for any of the people involved in the whole experience.
Rhea: That's exactly right. I mean, I think there are a lot of things that I agree with in community-centric fundraising. Like, I think, I think that there have been a lot of toxic behaviors in the sector around, treating the donor like they're a savior. Like that's not, we, we're not, we don't need saviors, we need partners. But the thing that makes me very uncomfortable about community centric fundraising, and I'm part of, slack channels and all that is. There feels like there's an undercurrent of hostility towards people who have wealth. And I just wanna be really careful that we are not falling into this trope of like, well, rich people are bad and they did bad things to get their money. I mean, the truth is like most wealthy people in this country are first generation wealth creators. They're entrepreneurs. They made their money. Most of them did not do bad things to get their money. And, and yet I think in American society, the last great prejudice is against people who are wealthy. Like, we see villains that are wealthy and I mean, the truth is money is not. Money doesn't change anything. Money is just an amplifier. So if you are a good, generous person with no money, you'll be an even better, more generous person with money. If you were a stingy miserly person without money, you're probably gonna still be a miserly stingy person with money. Right? So I fundamentally believe that money is an amplifier of what's already there. And so this went on a weird tangent, but I, I, I would really caution. Who are talking about community centered fundraising to be careful that we're not demonizing people of wealth.
Carol: And just for folks, can you just give a brief definition of what community centered fundraising is?
Rhea: So it's an interesting model of fundraising. It's coming out of the Pacific Northwest, and it's really a reaction. The tradition of donor-centric fundraising, which is about making the donor the hero of the story and the center of the story, and really putting the community at the center of the conversation. I would actually Nuance it a little bit. I think the work needs to be at the center of the conversation. And I think of it like stone soup. Like everyone has a part to play. Everyone can bring a little something and we create something better together. And so, and I think in the Community-centric fundraising world. I think there are a lot of interesting conversations that are happening, particularly among younger philanthropists and what their responsibility and obligation is to decolonize wealth. So I think there's a lot of interesting ideas coming out, a lot of which I do agree with. I think the tricky piece for me is that I've actually never seen it done in practice. To me, there's a lot of theory behind it. But anyway, if there's anyone out there listening who has seen this done in practice, let me know. I'd be thrilled to talk to you and possibly have you come on my podcast.
Carol: I mean, I think there are a lot of pieces in that, where folks are questioning a lot of them. I'm strongly in the commonly held wisdom about this, that, or the other in the nonprofit sector, which I think is really healthy to mm-hmm. to critique that and, and look at it and say, how can we do this differently? But I appreciate we're, we're back to stones and rocks and pebbles with your stone soup of everyone having a part in it, and how can we all work together. So, and, and talking about how money is an amp amplifier, I would say I've, I feel like I've heard power described that way as well. That you really, know, really learn about someone's character when they have power, mm-hmm. and it wasn't, isn't the power necessarily that did it. Their character that they bring to them, that level of responsibility that they have. What do you, what would you say helps folks who may be reluctant or accidental fundraiser fundraisers, what, what are some things that help them be more successful in stepping into that? You talked about money mindset. Are there other things that folks need to address? Is to, to become more confident, more comfortable in that?
Rhea: Well, you can definitely take my course. So I am a fundraising accelerator. But it's so funny. When I started fundraising I heard this commonly held piece of advice, like, listen for the gift, listen for the gift. And I was like, I don't really know what that means. And the truth is, giving people the space to talk about themselves and what they want in the world and what they desire and what and who they are in the world is really important. What's equally as important, actually more important is that. There are really three levels of listening. The first level is I'm listening with an, with an agenda, and unfortunately that's where most of us reside, right? So I'm listening to you, Carol, but really I'm just filtering through with my own agenda and for what I want to hear. The second is listening with no agenda, so really just being fully present. And then the third is listening for what's not being said. And I'm gonna credit Jason Frack for this. I did not come up with this. I think as a fundraiser, if you are positioning yourselves not as an extractor of resources, but as a facilitator of an experience, then I think you calm your lizard brain enough to at least try to get to level two listening. Because at the end of the day, this is a, this is a people business, and if people don't like you, if people. Trust you. If people don't feel connected to you, you're probably not gonna go very far in this business. and I, as much as I think that people like to put a lot of philosophy and psychology behind it, the truth of the matter is people do business with people that they like, the people that they know, people that they like, people that they trust. And so be the person who is. Trustworthy. Be the person who's likable, be the person that people want to spend time with. I mean, it's pretty basic.
Carol: And that what, what, what, what is not being said? So I'm trying to think of how I can put a question together, so what's not being said here that you would wanna tell people about?
Rhea: The idea of what's not being said is actually really, really hard to do. It takes a lot of energy and it takes, and here I'm gonna get a little boo cuz I'm a Californian. That's just how we are. But it takes quieting the voices in your own head. How often are we really fully present? And so what's not being said? It's your reading tone, right? Like we communicate a lot with our voices, we communicate a lot with our body language. We communicate a lot with our energy. And so if I'm in a meeting with you and your, your mouth is saying one thing and your body language is saying another, like, do I have the courage to be like, Carol, I'm just, can we just pause for a second? It seems to me that, you're saying, And I'm getting something else. Can you tell me what's happening for you? But it takes a level of sensitivity and a willingness to step into something outside of the script to have that authentic human conversation.
Carol: That's, that's taking a risk, right? Because the in, in pausing, noticing, asking the person about it. And then I think where I, when I've done things like that, where I've made the mistake is that I haven't then just been quiet. Hmm. To allow them to decide whether they not wanna say anything
Rhea: Like, we're so afraid of silence, right? I mean, I, I'm, I'm guilty as well, but we, we like to rush in cuz like, we don't want uncomfortable silence. The other thing too that I would really say, particularly to new fundraisers out there is please, please, please, please stop the pitch. Ditch the pitch people. Now let me nuance that. I think it's important to have a pitch for you. Have the salient points boiled down in a concise way. That part of the pitch I agree with. The part of the pitch I disagree with is how we teach people. Like you just need to like to throw that pitch out at people and like to splatter them with it, right? I mean, I've raised millions of dollars. There's no magical combination of words. I'm going to say that. It's going to convince you to give me a gift. It is. It's a conversation and so I think the reason. especially young fundraisers, rely very heavily on the pitches that they're nervous about. And so instead of actually connecting as a human, I'm just gonna memorize like these, five slides and exactly what I'm gonna say to avoid making a mistake or avoid an uncomfortable situation or avoid being vulnerable myself.
Carol: I feel like that is something that, really, could be applied in so many different situations. I'm thinking of it. instances where folks are going to see their legislator or, or legislative staff too, and they go in, they've got their talking points, and they're gonna talk at the person. Or even, someone who's a consultant or vendor or whatnot, comes in and gives you a pitch on why they're the great ones and you should hire them. And I think of a situation where I was working in an organization and we were looking to do branding work. And we had a couple different firms come in and one came in very much with the pitch model. They just. Gave us a fancy slide deck and talked to us. The other folks came in. They had nothing. They had no presentation. They spent the time asking us questions, listening, and responding. We began how they would work with us, but really Their approach was learning more about us. And I feel like that, or in, in sales, in fundraising, in advocacy, all these different arenas where you're, where your ultimate goal is to try to influence someone. When you come at them hard like that, the rocks that you were talking about before it, it's just a turn off and you just stop listening. But Oh, if you come in with questions and, and have a conversation with someone and want to know more about them, it's just a totally different feeling.
Rhea: Well, and, and I would also say with questions, like, actually listen to the answer. I mean, I, there you go. We ask questions. I mean, I, I have to tell you, Carol, I was once on a podcast. and literally the person had sent me the questions in advance and she just went through the questions like, like a robot. And I was like, I could literally say anything right now. And you wouldn't change the cadence of this conversation because in her mind she was just like going through the questions and it was very off-put because ostensibly though she was asking questions about me, there was no. Like there was no connection there. it was. Okay. The next question you were like, she was lobbing tennis balls at me and I was like, okay, I, the, we are not having a conversation it felt like an interrogation actually
Carol: Right, right. So there, there is, there is nuance in that, in that if you're all, and then I think at that point it's probably nerves again. Mm-hmm. and wanting to do it right and like, let me get through. but the focus is on yourself. Cuz it's like, I can. That's right. Control this by asking all these questions versus let me be in this conversation with you, hear what you're saying, and respond to it in some appropriate way.
Rhea: I mean, I have to tell you, you, I had one of the most incredible interactions I had as an executive director. I met this guy, he was very successful, a finance guy, whatever and I went into the conversation, I was super nervous. I was just thinking about like, okay, basically like how do I not screw this up, right? Cause I was like, I feel like I have one shot here. But I decided, and, and to his credit, he actually helped this along, but we actually had this really connecting conversation and it wasn't about the non-profit. It was about how he was on the board of his college and why he was on the board of his college and how going to this college had meant so much to him. And just like this opportunity to be. With another human being and just learn about who he was and, and, and put aside my own nerves of like, oh gosh, he's this super successful finance guy who has so much money. Right. And we were just humans and it was an incredible conversation. I came away incredibly energized.
Carol: So connecting it, as you said before, it's really a people business. And it's all about, cultivating those relationships.
Rhea: Definitely. Well, I, I think too, the reason why people get so nervous is it, it's all about that scarcity mindset. That's just this belief that, like, this is the last person I'm ever gonna talk to who might fund our organization or might give us a gift, or might give us a donation, like the truth is, it's probably not the last person you're ever gonna talk to. And not all donations are meant to be yours, right? Like if I talk to you, Carol, and I tell you about my organization, I learn about what you're interested in. And it turns out that you're really into saving the whales and that's not what we do. My job is not to convince you. My job is to say, Carol, that is wonderful cuz the world needs people to save whales too. Can I make an introduction to some people who are doing that work or at the very bravo. So glad that you figured that that's the thing that you wanna do and, go forth and do that. So I just think we have to let go of the desperation, ? So a lot of the times when we go into conversations like, I need to convince someone to do the thing that's like, That's like going on a date and convincing someone that we need to get married. I'm like, I don't even know you like that. Like what? Stop trying to push things. Like maybe it works out, maybe it's right, maybe it's not. But we need the space to be able to figure out if we like each other.
Carol: It reminds me of the small group that I was working with, and they were shifting from that all volunteer stage to having staff. But they were still very much in that scarcity mindset around board recruitment. Mm-hmm. And so it was like each new person that they met, they asked them to be on the board. And that's like, oh no. Asking someone to marry them. Like, no, you need to get to know this person. They need to get to know you. You need to know whether they're gonna show up and do what they say they're gonna do. Are they interested in your organization? Lots of different things. And so what are all those little pebbles as you talked about, what are all those little steps that you can provide people to, to give, have a way in if, if it is the right organization and cause and, and thing that they're really passionate to contribute.
Rhea: I talked about this a lot, Carol. So I love the dating analogy of people who have listened to me. No, it's number one, desperation is a stinky perfume. So I'm, I'm married, I've been married for a long time, but once upon a time I was single and I would go through these periods where I couldn't catch a date to save my life. It was just like a dry spell, right. And the minute I was in a relationship, everyone wanted my number. And I was like, what's up with that? Like, where were you a month ago? and it was because of the vibe I was putting out, right? Like when you feel secure, when you feel confident, when you feel just sort of in integrity with yourself, like that's very attractive and people want to be part of that. But when you're desperate and you're like, well, you go out on a date with me, will you be my boyfriend? It's like, no crazy person. I like to calm down.
Carol: Well, right. As you were talking about the, the other conversation where, you felt like this is my one shot. That just, that it's like, it just, even, even just saying that I feel myself tensing up, and, and so where you're calm and confident in your, in your, in your own power.
Rhea: Just comfortable in your own skin.
Carol: Absolutely. Exactly. Exactly. So at the end of each episode, I like to ask an icebreaker question that I pull out of a box. So I've got one here for you. Oh, how fun. Which, which famous person I you're, you're in New York, you're in I think, Southern California right now. Maybe, maybe not Southern California.
Rhea: No, I am in southern California right now. What
Carol: A famous person have you met? And, and any level of fame is fine
Rhea: oh, okay. I'm gonna share the story. I hope, I hope this doesn't get back to me. So, I am a big Game of Thrones fan and Peter Dinklage lives on my block. So for those of you who don't know his Tyrion Lannister, and I have for the longest time. Tried to befriend him and he is not having it. he's not having it. He's not having it. I mean, so I see him walking his dog. I'm walking my dog. I try to be super cool, like, oh hey neighbor, good morning. And he is like, not unfriending, he'll say hi, but like he is just not trying to be my friend. So I don't know if I could say that I met him. I definitely have interacted with him where, Tried to have interactions with him, and he is not about that life. So Peter Dinklage, if you're listening to this, I am your neighbor. I'm not a weird stalker, but we should definitely be friends
Carol:. Sounds good. And a dog. A dog is always a good way to get to know people. So what do you,
Rhea: So wait. Okay, wait, quick story. So he has a dog and I have a dog. My dog has passed away, but anyway, I have a dog and I was like, oh, I'm gonna be in, like, we're, we're gonna be dog friends and then we're gonna see each other on the walk and then like start chit-chatting. But then, My dog decided to have beef with his dog and started yapping at him. And I was like, dog, dog. I, I don't ask for anything except for this one thing. You could have gotten me in with Peter Dinklage's dog, and it was a tremendous failure. So like, then I had to cross the street when I saw him and his dog because my dog was being a jerk. So sad times with the dogs.
Carol: Well, you can blame it on the dog then. Poor, poor puppy. I know you're a cutie. I know. Or was, I'm sorry to hear he passed away.
Rhea: That's it. Stevie Wonder. Well, we have a new love Stella, but Stevie will always hold a special place in our hearts
Carol:. Yes, absolutely. So what are you excited about? What's coming up next for you? What's, what's emerging in the work that you're
Rhea: Good question. So I, as I mentioned, have a fundraising accelerator. So I'm actually promoting my cohort now. And this is ideal for executive directors and development directors who are accidental fundraisers who wanna learn how to get out of the transactional into the and what else? I have a book that came out last year, so I'm still out in the world promoting that. What else? I'm doing some speaking and training around the country, so that's a lot of fun. But I continue to have my podcast and my weekly newsletter. So there are lots of ways if, if you want more of this action, there are lots of ways to get it.
Carol: Definitely. Remind me what the book is.
Rhea: Oh, get that money, honey
Carol:. All right. I love it. I knew it was, I knew it was a good title. I knew it was a good title. Get that money.
Rhea: It's so funny when I put it out to a group of pre-reads, someone responded like, I don't know what you should call it, get that money, honey. Because as a man, that feels alienated to me. And I was like, I hear your feedback and I respectfully override it.
Carol: That is always our prerogative with feedback. Right. It's just information. We don't have to follow it all. I hear you and well, thank you so much. Thank you for coming on the podcast. It was great to talk with you.
Rhea: Thanks so much, Carol. It's a lot of fun.
Carol: I appreciated what Rhea said about cultivating an experience as a fundraiser for a donor. Truly being present in the conversation, putting away the script and truly listening. Listening for the gift instead of jumping in with your talking points and your pitch. Very few people want to be pitched to. They want to have a conversation. And know that you are really listening to their answers so that they can connect with you as another human being.
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 Rhea, the full transcript of our conversation, as well as any links and resources mentioned during the show in the show notes at missionimpactpodcast.com/shownotes. I want to thank Isabelle Strauss-Riggs for her support in editing and production as well as Natasha DeVoise of 100 Ninjas for her production support. If you enjoyed it, please share it with a colleague or friend. We always appreciate you helping us get the word out. And until next time, thank you for everything you do to contribute and make an impact.
In episode 49 of Mission: Impact, Carol and her guest, Lewis Flax discuss:
Lewis Flax specializes in assisting nonprofits and associations generate additional revenue. His hands-on approach has helped numerous organizations implement strategies and tactics to increase sponsorship, partnership, and other funding streams. His firm, Flax Associates, established in 2008, serves as a partner in driving revenue and results.
Lewis understands the challenges nonprofits face, both from an outside consultant's point of view and from the internal perspective of a nonprofit executive. Previously, Lewis served as a Vice President for IEG (a sponsorship consulting firm) and served on the leadership team at Financial Executives International (FEI).
He is a certified instructor for Dale Carnegie Training (Winning with Relationship Selling) and an AFP (Association of Fundraising Professionals) Master Trainer.
Important Links and Resources:
Carol Hamilton: My guest today on Mission Impact is Lewis Flax. Lewis and I talk about sponsorships. We explore why companies are interested in sponsorships, some of the misconceptions, and why to create real value you will need to get beyond your traditional bronze, silver, and gold-level sponsorships.
Mission Impact is 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.
Welcome Lewis. Welcome to the podcast.
Lewis Flax: Thanks, Carol pleasure to be here and looking forward to discussing sponsorship and the tie in with associations and nonprofits.
Carol: Absolutely. So I like to start at the beginning, I guess the sound of music inspires that, but start at the very beginning, but, but what w what drew you to the work that you do? What, what motivates you and what would you say is your why?
Lewis: When. First started working within the nonprofit world, realized when it came to sponsorship and how to go about it. When it came to how to structure and set up a sponsorship, when it came to how they go ahead and sell it, there was a lack of knowledge. There, there was a lack of awareness and the idea of how they work. Corporations and funders where they needed assistance and guidance. I felt a need or an urge to help, to give back through assistance and support. So I went to work for a larger consulting firm and then started my own firm in 2008.
Carol: All right. So you've been around the block a few times. So as you said, you work with nonprofits and associations on sponsorships. Just so folks have some context. Can you define sponsorship first?
Lewis: So sponsorship is where a company or an organization is paying a fee. Back to a property, the association or nonprofit where they're gaining specific benefits or specific rights which they value.
Carol: And what would you say motivates organizations to enter into those sponsorships? And I'm saying from the corporation side, what, what, what do they see as you a give get of what they're getting from that relationship?
Lewis: Sure. So they're aligning with an organization that can add value. So on the association side, often it's visibility awareness connection to thought leadership on the traditional non-profit side. It's aligning with a good cause, it's connecting with an organization which aligns with their values.
Carol: And what would you say are some of the key misconceptions that people have about sponsorships? You said that when you started there was a lack of knowledge. What are the things that you have to help people understand about those misconceptions?
Lewis: Sure. When it comes to sponsorship, often organizations on the nonprofit side look at, okay, well, put together a perspective. Especially now, given the pandemic things that have occurred, sending out a prospectus is not nearly enough, here's a standard offering of gold, silver, bronze, and this is what you get. That's not the way to generate higher revenue. That's not the way to customize your target in a way that's meaningful to a potential.
Carol: So what, what would you have organizations do instead?
Lewis: Well, there are a number of steps to take in working with different organizations. I walked them through a process that I term step up in terms of how to go about what it is that you can offer, whether a sponsor is interested in it, and then how you could structure your program to connect with the potential sponsors and align with your culture and your organization.
Carol: Can you give me an example of when you've seen that work well in terms of building that, building that relationship.
Lewis: Yeah. There are, there are many instances. So for example, with different associations it's well, what is it that they're offering? That's a value. So in working with one group, they have an awards program, safety awards. And for a sponsor, that's in a space where they're tied into safety. So say an insurance company or other types of companies. Well, if they can get involved with the safety program and they're providing insurance to the members of that association, all of a sudden it changes. Because if an insurance company is working with those who submit, apply or are involved in a safety awards program, well, they want to insure them. And if they can provide guidance as to how to handle safety procedures at a, in a manufacturing plant, or how to handle safety procedures in a different environment, that's who they want. So if they can get involved either on the selection committee or get involved in terms of articles on safety or debt involved in terms of working with an awards program that offers far more value than having your name and your logo on the website and on signage and pasted anywhere and everywhere. So when it aligns with what the company is seeking. And the specific association or nonprofit it's far greater. So I tossed out an awards program because I've seen that work a number of times.
Carol: What are some other misconceptions that you see folks have about sponsorships,
Lewis: Offering? They view it as a connection with a board member and the board member knows someone. And as a result, oh, we'll set up this. Offering and they think that that's the key value where the board member leaves and often boom, the sponsorship disappears.
Carol: So what would you say are some of the challenges that organizations are facing in terms of sponsorships and building those partnerships?
Lewis: New issue often that they face is the idea of corporate involvement and how we go about it moving beyond. Well, we can offer a webinar or we can offer a slot at a conference, or we can offer a table at a gala because those are just tools. They'll just tools in a toolbox, but what is it that the sponsor wants? How do they want to get involved? What's meaningful to them. And often on the association, nonprofit side, they only see it as well. What can we offer without thinking about it from the lens or from the perspective of the sponsor?
Carol: So what are the types of things that sponsors are often looking for?
Lewis: Normally it's going to, so with associations, are they interested in a specific regulatory area? Are they interested in reaching a set or tying in with a consumer promotion campaign? Or are they interested in an advocacy effort? What issues or challenges that the member base, the distribution list? What are the issues and concerns that they face and how can we respond or are addressed?
Carol: So again, can you give me an example of, of what your of those kinds of situations like th those, those values that they see
Lewis: Let's look at, let's say it's in the accounting space where the association is to provide information. Well, the accounting firms are going to have information on that regulatory issue. And if they can provide that information, be it in the form of an article, maybe a webinar, a conference presentation, a survey, and all of those could be tied together. That's where it's offering far greater value to the sponsor. And it's going to offer value to the association, assuming that they have authority and they best review what's presented and who's going to be presenting.
Carol: And from this, what mistakes do you see sponsors making when they, when they try to, make the most of their sponsorship in that partnership?
Lewis: Often they're looking at it as a short-term game. What we need to have X number of leads. Well, that's generally not how sponsorship works. It's often, well, if you're going to be involved, You're going to get out of it. What you put in for the sponsors needs to. So for example, if it's a regulatory issue where it's an advocacy campaign or it's a specific issue, well, do they develop content? They have resources. Do they have information? That's a value, not just a product demo. They have information. That's a value too.
Carol: So it's getting out of just a pure sales mode then, and thinking about what are the, yeah, what's the information, what's the thought leadership that they can, they can share and provide. And how about on, on the more traditional non-profits sometimes I feel like it's, it's easier to see the connections from an association point of view. But your more traditional nonprofits are also interested in engaging corporate partners. D do you see differences there between the two and, and approach?
Lewis: Yes. In the sense that. From the standpoint of how they go about. Often it's somewhat the same. Yeah. Associations are often looking at it. Both perspectives. Associations are often looking at it saying, well, they should want this. And it's visibility, logos everywhere. The traditional non-profits are often looking at it through the lens of board member connections and how to leverage those, if it's more well, them. So they should sponsor as opposed to what the value is from the company's.
Carol: And what are some steps that organizations can take to get started in this? If they haven't, haven't had a sponsorship program before, what are some of the basics?
Lewis: Sure. So I walk organizations through what, like turn on step up S and the S stands for, well, what's their current situation and looking at who they have as sponsors and who's within their sponsor. Now. And then also addressing the key challenge. What is preventing them? What is stopping them from establishing that sponsorship program? And that could be maybe there's a board resent. It could be that we don't know corporate decision makers. It could be. So one of those challenges, often organizations will, or nonprofits or associations will begin to set up their sponsorship program and, oh, we'll come back to those challenges later. We'll address that down the line and it's when they do. Those challenges are going to pop up again, those obstacles are going to come back and if they don't address that upfront or think through how they're going to address it, there's going to be an issue. There's going to be a problem. So the first step is to evaluate your current situation and figure out how you're going to move.
Carol: I feel like every, every consulting process starts with that first step of figuring out what that current situation is. And when I'm working with groups on strategic planning, that whole process of helping them also have a shared understanding of what that current state is, I think, is also a helpful step that consultants can bring to organizations that they may be. I know for me, when I'm working. Clients there's often a perception or almost a fear that there's such a breadth of ideas and perspectives. And then once you have a chance to talk to folks and get into it it turns out that there's actually a lot more common understanding and shared perspective than people realize.
Lewis: Yes, absolutely.
Carol: So what trends are you seeing in the whole arena of sponsorships?
Lewis: Yeah, the trends are, there's a lot of uncertainty. There's a lot of unknowns. So on both the association and nonprofit side, they're unsure how to move forward. And so what ends up happening is they don't do anything or they don't make changes. So the idea of making changes. And making shifts as to how they're going to approach things. The associations and nonprofits that are going to thrive are the ones that are willing to take those chances. I say, take those chances. They're willing to experiment. They're willing to test and Rocky dies that not everything will go right. And when I say God, everything will go, right? Whether it's an event, whether it's a webinar, whether it's a sponsorship offering, they're going to try something new and organizations recognize that they need to do that. A lot of them won't. So the key is to take a step, make an effort and, and on the sponsor side, there's a lot more awareness of when organizations do that, they respect them. They acknowledge that these are different times.
Carol: Yeah. And I would imagine that, at least in my limited experience, Of just observing what goes on in sponsorship programs from the sides, certainly in working in different organizations. I think what I've seen is a traditional model that's very very event focused often around an annual conference or some annual convening. And, since the pandemic with so many things going virtual there's not that same. I guess it seems traditional, like slack, the logo everywhere. It's just not the same in the online environment. So what, what shifts have you seen with that? with everything that folks have been contending with in the last couple of years?
Lewis: Yeah. When it comes to events, Organizations have learned. Well, if you're just focused on events, you're going to be in trouble because in a virtual environment, whether it's zoom or teams or whatever the format is, you can appease the exhibit hall of 500 people. You can appease a gala where you had a hundred and 150 tables. So moving beyond events is a big component of how these organizations should shift. So earlier when you asked me for examples, the idea of a safety program or a safety awards program, the idea of a specific regulatory issue, when it's focused on a theme or an issue it's for a greater, because then it's not event centric and organizations can be more effective. The issue is a lot of the organizations struggle with how to piece that. If the conference department doesn't talk to the group that handles webinars, it doesn't talk to the magazine area. It doesn't speak to the research area. It's a lot tougher and they need to navigate through that because the truth is if there's good content and it was featured in a magazine or. Well, why not tie that into a webinar? And then why not include that at a conference presentation? Why not tie that into a survey? Why not allow the good content for the good content from a specific source, perhaps a sponsor and others. And you connect that across the organization. It's far better for the organization and it's easier than to establish a stronger sponsorship program. So it's more about themes and concepts. Topics or issues that are of interest to the member base or to the audience. And when that's done, it's far easier to set up a successful sponsorship.
Carol: That's a really interesting flip and I think it, beyond just sponsorship, it goes to a lot that, especially associations are doing around, serving their members being current and getting out of the mindset of, the, the delivery channels of whether it's a conference or it's research or it's, the magazine. But what are the overarching themes of the things that people need to know about the things that are upcoming, the trends the current research is helping, helping people navigate all that without being so caught up in what particular channel that it's being delivered.
Lewis: Yeah, analog organization, they get that's where I mentioned the tools they get caught up in here's a webinar, or here's put your logo on or banner on our newsletter or here's some other offering. And it's all about slapping or pasting logos everywhere. Well, that doesn't offer much value. Whereas it's an awards program, or if it's a specific campaign or advocacy effort or a themed approach, you move away from the tools. Then you move towards what the customer wants and then it could be, and should be far more successful.
Carol: And when the customer wants what you're saying there, that would be the member of the organization. Which customer are you talking about in that instance?
Lewis: Okay. So if the sponsor is interested in conveying their thought leadership related to regulatory issues, X. And they're pitched, here's an ad in the newsletter or here's an exhibit booth or here's a webinar. Well, it's not connecting with them. Those are the tools. And they're interested in this regulatory issue. Well, can they get involved in that regulatory issue?
Carol: Right, right. What are some fears that you would say either staff or board members have about, especially for, I would say on the more traditional nonprofit side of bringing in private sector groups to their, to their organization.
Lewis: Number one is if we take corporate money, how does that impact us? And I'm a big believer that any organization, association, or traditional nonprofit, should stick to their values and their culture, and do not allow a sponsor to dictate or to determine how to handle something, their control, regardless of funding. That's, that's one, the and then secondly, for a number of organizations, if they take. Funds, what does that mean? How do they work with them? And to clarify ahead of time what those requirements are, what those values. So it's easier for them to set up a program that's going to be successful as opposed to just hit or miss and see what happens.
Carol: Yeah. And I would imagine helping a group talk through what they're looking for in sponsors. So the, in the same way that you're talking about flipping the script and thinking about it from the sponsor's point of view and what value they're going to get out of it. But then from the organization's point of view, helping them think through. What is it that we want? Who, who do we want to partner with? Who do we want to give access and who do we not? And like having that conversation without individual sponsorship opportunities in the room, or in the conversation I would think would set them up to feel more confident in moving forward, to look for a potential organization. So it isn't just based on, as you said, the current board members that they happen to have, who they happen to have relationships with, et cetera.
Lewis: Yeah. I mean, when they set the parameters or the guidelines ahead of time, they're going to be far more directed and focused. And it's going to be easier for them to move forward as opposed to, well, we'll walk through the door and whether the company says they would do, and then the board or leadership is looking at that. And all of a sudden they haven't clarified their own values. They haven't clarified their own culture. They haven't set the parameters, they haven't set the guidelines. And often that leads to maybe not a problem at that point in time, but the problem down the line. Sure.
Carol: So at the end of each podcast episode, I play a little game where I pull out a Random, somewhat random icebreaker question. So the one I have, I have three of them sitting here. I always put up for you to just see what let's go to fit. I don't know if this fits or not, but we just, we've just moved into spring. And I think this will actually be being published sometime probably as we're moving more towards summer. But which season would you say fits your personality?
Lewis: Probably fall. And the reason I say fall is in my mind, it's beautiful outside because the leaves are returning the weather's a little cooler, more comfortable. I like to walk with my family. We'll hike and get outside and fall could be a rebirth and it's a change. It shifts. And I liked that. I liked that change. Yeah. The feel in the air. I like how things are changing. So fall follows my favorite season. I think it would describe who I don't think describes who I am. Yeah. I really enjoy fall. I enjoyed the change of seasons.
Carol: Yeah, yeah. Yeah. We're just, I'm enjoying the, the, all the, all the. Flowers are popping up right now and the trees are blooming. And then yes, at the other end, when all the leaves are falling and you have that shift in the weather appreciate that. One of my sisters moved out to California and one of the things she missed the most about the east coast was having seasons so well, I really appreciate it.
Lewis: I was just saying, I love the different seasons. I love how in our area, in the Washington DC area, they're distinct and different seasons. And I liked that
Carol: Yeah, absolutely. Absolutely. Well what's, what are you excited about? What's coming up for you and what's emerging in your work these days.
Lewis: It's interesting as we start to move, hopefully out of the pandemic and working with different organizations. So much for coming back to the fall, there's a bit of a rebirth, okay, now we need to move forward. And then in my role, it's looking at it through the lens of, no, you can't go back to the way you weren't doing it. Let's make those adjustments, those changes, and then move forward.
Carol: Awesome. Awesome. Well, thank you so much. It was great having you on. I really appreciate the conversation.
Lewis: My pleasure. And thank you, Carol. I liked the way you asked the questions. You asked me good questions and the follow-ups are on target in terms of what does that mean to clarify?
Carol: Yeah. Well, what I, one thing I appreciate about doing the podcast is that I'm always learning something new because I get to talk to people about their area of expertise and it's not necessarily mine. So I get to have a little mini-masterclass. So appreciate that and appreciate you sharing your perspective and all your wisdom on, on sponsorships. So thanks so much.
Lewis: My pleasure. And thank you for giving back to the association and nonprofit community by adding resources.
Carol: All right.
I appreciated how Lewis described how to work with your sponsors and potential sponsors to create more value – for your organization as well as the company. That it starts with conversations with the sponsor – what are they looking to achieve? How might you align in your efforts? And for both sides – the sponsor and your organization – that developing the relationship should be with the longer term in mind. If either party is just looking for short term gain they are missing a lot of opportunity and value that could be there. There is also more opportunity available if different parts of your organization are cross pollinating and talking – in an association – staff who are managing the magazine, staff who are producing webinars and other learning events. Are they talking and coordinating their efforts with a sponsor and a tie in? Of course always being mindful of whether a particular sponsor aligns with your organizational values.
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 Lewis, his full bio, the full transcript of our conversation, as well as any links and resources mentioned during the show in the show notes at missionimpactpodcast.com/shownotes. I want to thank Isabelle Strauss-Riggs for her support in editing and production as well as April Koester of 100 Ninjas for her production support. Please take a minute to rate and review Mission Impact on Apple podcasts or wherever you listen to podcasts. It helps other people find the podcast. We appreciate it!
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.
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