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Fundraising Tuesday: Sometimes Ugly Works

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The appeal letter could be called ugly. It had none of the designer elements you see in so many pieces of direct mail. No photos, no color. Four sides of black-and white text.

The reply vehicle was crowded with information, with hardly any blank space to rest the eyes.

But the story it told was uglier:

A joint investigation by the Department of Labor, Homeland Security, the State Department, the FBI, and other federal agencies has uncovered what they called “modern-day slavery” in several southern U.S. states.

I don’t have any data, but I’m willing to bet this appeal last year from the United Farm Workers raised a ton of money. Why? The UFW:

  1. Knows its audience. I’m from a generation that tends to read more and skim less, especially when outraged. I’m also a longtime supporter of the organization. They can count on my attention.
  2. Uses an attention-grabbing first sentence. “Don’t let the cutesy name, Operation Blooming Onion, fool you.” Nobody wants to be fooled, right? I had to read on to find out what the pretty name was hiding.
  3. Deploys bold type and italics for emphasis. It may be all text, but it’s not the dreaded wall of text. If I read only the bold type, I would get the gist!
  4. Asks for money both at the beginning of the letter and at the end.
  5. Takes advantage of the postscript to stress the urgency of the appeal.

Above all, that ugly phrase “modern-day slavery” shows up again and again in the body of the letter, and the reply vehicle echoes it. It’s headed MY GIFT TO END AGRICULTURAL SLAVERY!

Not to help meet the UFW’s fiscal-year goals. Who cares about that? Not to “make a difference” (although that bland phrase does appear once in the whole letter).

The appeal letter focused on the ugly reality of agribusiness employing foreign workers as field slaves. That’s what the readers are going to hate. That’s what we will donate to end.

Can you follow the UFW’s example? Think: What’s the ugly reality that your nonprofit can ask your donors to erase?

4 Strategies for Successful Nonprofit Grant Management

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A guest post by Jon Osterburg of Jitasa

Grants are a significant source of funding for nonprofits, comprising nearly a quarter of total nonprofit revenue. They fuel vital programs and services, which is why you need an organized approach to grant management.

By properly allocating grant funds, your nonprofit will make the most of this funding. This provides additional flexibility to use your other funds where needed, like for donor communications or delivering services in the community. Let’s explore four strategies you can use for effective grant management.

  1. Standardize grant management processes.

Many nonprofits earn multiple grants throughout each year. Therefore, these organizations have many grants to manage at once, each of which has its own purpose.

Simplify the process by developing guidelines for grant management tasks and expectations. Your guidelines should include each step of the process from beginning to end.

To help, Jitasa explains grant management as a cycle that follows these steps:

The nonprofit grant management cycle, which is detailed in the text below

  1. Identify grant opportunities
  2. Apply for grants
  3. Track your grant’s progress
  4. Record grant funding
  5. Report back to the grantmaker

Using this grant lifecycle as a guide, your instructions will outline each step necessary to apply for, accept, and use grants. This way, every team member can streamline the process and increase efficiency.

2. Comply with grant rules.

When using a grant, you must follow financial management requirements, such as reporting the funding on your nonprofit’s Form 990. But you must also comply with the grantmaker’s rules.

Review the unique terms, conditions, and reporting requirements for each grant before using any of the funding. These requirements may include:

  • Budget restrictions: Most grantors restrict funding to specific uses. For example, one grant could be for a specific program while another has to be used for your current capital campaign.
  • Project timelines: Many grants require nonprofits to meet a deadline for fulfilling the funding’s purpose. For example, your grant terms may set an end-of-year deadline for launching a new program. In this case, your nonprofit might have to send monthly progress reports to the grantor.
  • Monitoring: Grantors may want to oversee your project and assess your usage of their funding. This may include monitoring your progress through site visits or recurring meetings.

These requirements are also important for reporting purposes, such as creating financial statements. Nonprofits must differentiate between unconditional, contingent, and reimbursable grants in these reports. You’ll need to be familiar with the nature of the grant before creating statements.

Another common requirement is acknowledging the grant’s source in your marketing materials. This may include showcasing grant-funded programs on your nonprofit’s website or in your email newsletter. You must be transparent about grant usage with both the grantor and your stakeholders.

3. Track grant usage.

Your nonprofit likely already tracks its financial performance for budgeting purposes. In the same way, you should track grant usage to make informed decisions about fund allocation. This empowers your team to keep grant-funded programs on track to achieve their goals.

Choose relevant metrics to track, such as:

  • Cost-per-outcome: Gauge the grant’s effectiveness by calculating the cost of achieving an outcome, such as getting someone to sign up for the designated program. To measure this, divide grant expenditures by the number of outcomes achieved.
  • Grant utilization rate: Compare the percentage of the grant used to the total amount awarded. This will show how far you were able to stretch the funding.
  • Programmatic output: Track the results of grant-funded programs. This may include the number of individuals served, services provided, or activities completed.

According to NPOInfo’s data collection guide, these metrics will also help you improve a project’s return on investment (ROI). With an overview of your grant usage in comparison to your goals, you can adjust your strategy to make a bigger impact. Then, you can measure your progress and demonstrate your impact to stakeholders.

4. Work with a financial professional.

Grants are just one of your many, diversified revenue streams. You probably also raise funds from individual donations, corporate philanthropy, earned income, and investments. Then, you must apply this revenue to various expenses in a way that powers your nonprofit’s activities.

Working with a financial professional can ensure you make the most of not just grants, but all of your nonprofit’s resources. To start working with a nonprofit accountant who can manage your grants and other financial needs, follow these steps:

  1. Determine your financial goals and needs.
  2. Establish an outsourcing budget.
  3. Research top nonprofit accountants.
  4. Schedule consultations to meet with your top choices.
  5. Narrow down your list and select an accountant.

A professional accountant can also help you develop future financial goals. As a result, your nonprofit can restart the grant cycle by knowing which grants to apply for and how you’ll use them.

Jon Osterburg has spent the last nine years helping more than 100 nonprofits around the world with their finances as a leader at Jitasa, an accounting firm that offers bookkeeping and accounting services to not for profit organizations.

 

How to Recruit Nonprofit Employees Effectively

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A guest post by Jennifer Loftus, Astron Solutions

If your nonprofit is facing recruitment challenges, you’re not alone. According to the 2023 Nonprofit Workforce Survey, three of four nonprofits reported job vacancies. Filling open positions quickly is critical so your organization can continue providing services and working toward its mission effectively.

However, you shouldn’t just hire the first candidate who walks in the door. Recruiting employees for your nonprofit’s team requires a strategic approach to attract candidates who are passionate about your organization’s mission and committed to making a difference.

Your organization’s internal culture and infrastructure are integral to your success. Therefore, you must recruit motivated employees who can quickly ease into your workflow while offering diverse perspectives to improve your strategies and optimize your results. This is especially important if your nonprofit is gearing up to launch a major initiative, such as a capital campaign.

Use these best practices to recruit talented individuals to your organization’s team.

Clearly define the role and responsibilities

Finding the right candidates for your nonprofit’s open positions requires communicating clearly through every step of the hiring process.

Start by clearly defining the role’s responsibilities, qualifications, and expectations. Astron Solutions recommends crafting a compelling job description with these key elements:

  • A job title that accurately reflects the nature of the position
  • A summary of the position that outlines core duties and responsibilities
  • Relevant logistics, such as expected hours of work, format (remote, in-person, or hybrid), typical schedule, and the location of the position
  • Organization overview, including your nonprofit’s history, mission, goals, and culture
  • A detailed list of specific duties, including daily tasks
  • The qualifications you’re looking for, like education, experience, certifications, and skills
  • Relationships and information about where the position falls in your organization’s hierarchy (include who the role reports to, for example)
  • A salary range for the position, particularly where required by law
  • Benefits, such as paid time off, healthcare benefits, and retirement plans
  • Additional statements as needed, such as an equal opportunity policy statement, at-will employment statement, or a statement about providing reasonable accommodations for employees with disabilities

The more specific and descriptive you are, the easier it will be to attract talented recruits whose interests, skills, and experience align with your needs.

Your nonprofit’s mission statement is a particularly powerful recruiting tool. Highlight the meaningful work that employees will be contributing to and the difference they can make in the community.

This helps attract candidates who are aligned with your organization’s purpose and passionate about its cause.

Avoid job description “red flags”

Today’s job seekers have become increasingly discerning, especially since the COVID-19 pandemic altered expectations surrounding remote work and work-life balance. Recruits are more attuned to potential “red flags” to look for in job descriptions. We recommend avoiding the following cliche or “red flag” descriptors in your job postings:

  • Providing an extremely wide salary range. This could make the requirements you’re looking for seem ambiguous or arbitrary. For example, the responsibilities of a $40,000 per year role can vary widely from a $100,000 per year role.
  • Using urgency language like “fast-paced environment.” This signals to potential employees that an organization may not respect work-life boundaries or may expect unreasonable working hours.
  • Describing your workplace as a “family.” This familiar, casual language also tends to be a red flag for job seekers, as they often interpret this to mean a workplace has loose boundaries between personal and professional lives.

About half of all nonprofit professionals are experiencing high levels of burnout. Job seekers are looking for positions that won’t ask them to sacrifice a healthy life balance to work for a charitable cause. Ensure your job postings acknowledge that reality by avoiding these common red flags.

Use multiple recruitment channels

Cast a wide net by utilizing multiple recruitment channels to reach potential candidates. This may include posting job openings on:

  • Your nonprofit’s website
  • Job boards and newsletters, including nonprofit-specific boards
  • Social media platforms like LinkedIn
  • University and college job sites, newsletters, or text chains

Seek ways to make your hiring process more inclusive and recruit candidates from a variety of backgrounds. Diversify your job search to include job fairs, networking events, and newsletters targeted at connecting underrepresented groups with job opportunities. For example, work with a university’s diversity, equity, and inclusion (DEI) office to share open roles on their newsletter or job board.

Engage current staff and supporters

Engaging with your existing nonprofit community can help you reach candidates who are already passionate about your cause. Tap into your network of staff, volunteers, donors, and supporters for referrals and recommendations. Ask these individuals to think about people in their lives who would be interested in your open positions and well-suited to the roles.

Provide materials or talking points to your network to help them promote your open positions. For example, make sure they have a link to your job posting on your website or LinkedIn. Also, encourage them to share about their experience at your organization to help determine whether the role would be a good fit.

Encourage current employees to share job openings with their networks and consider offering referral bonuses as incentives. Double the Donation also recommends spotlighting employees who go above and beyond in the recruitment process using recognition tools like eCards or loyalty awards. Use these tools to show employees your gratitude for helping to create a successful hiring process.

Offer competitive benefits and compensation

72% of respondents to the 2023 Nonprofit Workforce Survey said salary competition affects their ability to recruit and retain employees, followed by budget constraints and insufficient funds.

While financial constraints mean that nonprofits may not always be able to offer salaries as high as those in the for-profit sector, you can still seek to make your compensation and benefits packages as competitive as possible.

Communicate your compensation strategy clearly in your job posting, including information about:

  • Direct compensation, such as salary, bonuses, and overtime pay
  • Indirect compensation, including health insurance, retirement benefits, and paid time off
  • Unique benefits, such as flexible work arrangements, professional development opportunities, or a supportive work culture

This holistic approach to compensation is defined as the “total rewards approach,” depicted in this graphic:

Total rewards approach to compensation, including direct and indirect compensation

A total rewards approach is effective for nonprofits that may not be able to compete against for-profit organizations based on salary alone.  Clearly outlining your compensation information gives prospective employees a clear idea of what working at your organization would mean for their financial and professional goals. This allows recruits to determine if your position aligns with their vision for the future.

These tips will help kickstart your employee recruitment efforts, but if you need more support throughout the process, consider working with a nonprofit human resources consultant to help attract top talent. These professionals can offer guidance on your compensation and recruitment strategies based on their experience and industry best practices.

If you decide to work with a consultant, find a firm that has experience working with similar organizations and respects your organization’s culture and vision. The right partner can help manage not only your hiring process but also implement employee retention strategies that keep your nonprofit’s staff happy and energized.

Jennifer Loftus head shotAuthor: Jennifer C. Loftus, MBA, SPHR, PHRca, GPHR, SHRM-SCP, CCP, CBP, GRP

Jennifer C. Loftus is a Founding Partner of and National Director for Astron Solutions, a compensation consulting firm.  Jennifer has 23 years of experience garnered at organizations including the Hay Group, Parsons Brinckerhoff, Eagle Electric Manufacturing Company, and Harcourt General.

Jennifer has held volunteer leadership roles with SHRM, New York City SHRM, and WorldatWork. She serves as a subject matter expert to the SHRM Learning System and as a SHRM instructor.  Jennifer is a sought-after speaker for local & national conferences and media outlets.

Jennifer has an MBA in Human Resource Management with highest honors from Pace University and a BS in Accounting summa cum laude from Rutgers University.  Jennifer holds Adjunct Professor roles with Pace University, Long Island University, and LIM College.

Jennifer received the 2014 Gotham Comedy Foundation’s Lifetime Ambassador of Laughter Award.

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