Tag Archives: capital campaign

Is Executive Coaching A Good Investment?

Fundraisers talk a lot about donor retention. But, what about employee retention and how it impacts donors? Many nonprofits have a revolving door of development professionals. The average tenure of a fundraiser is less than 2 years. And the donor pays the price.

Consider a new development professional who starts a new job. Immediately, she wants to build relationships with major donors! But the donors have seen this cycle too often. They don’t want to spend the time gearing up to befriend another new development person. It shifts the work to the donor who has to meet more often so the development person feels comfortable. Which, let’s face it, is not why donors give to your nonprofit.

The new development person is set up for failure. Making it more likely they will leave sooner. Keeping the revolving door moving.

Then the question is, how do you get an employee to stay? One way is by helping them grow and feel successful with Executive Coaching.

Investing in your staff will help employee retention, which will help donor retention, which will help your bottom line.

Is Executive Coaching A Good Investment?

Executive coaching means different things to different people. 

  • A sounding board to enhance self-assurance
  • Short term strategy partner for new initiatives
  • Developing new skills like
    • Volunteer or board management
    • Governance oversight
    • Annual fund growth
    • Capital campaign planning
    • Prepping for a Strategic Plan
  • Building confidence so they are ready for the next challenge around the corner
  • Learning the skills to move up in the organization

If you, or someone you know is thinking about Executive Coaching and how it could help provide professional and personal development, send me an email. Or sign up for a free consultation on my calendar.

Should You Raise Money to Pay Off Your Nonprofit’s Mortgage?

We have had 3 similar inquiries in the past few weeks that sound like this: a board member suggests that your organization eliminates your $5.1 million mortgage. ​​Everyone is excited by the idea. They call us to talk about the possibilities. Sounds great, doesn’t it? In theory yes.

​​In practice, it might not be the best way to use $5 million dollars. What could you do with that money besides pay off your nonprofit’s mortgage?

Option A – Raise $5.1 million and eliminate the mortgage and save the $275,000 a year in debt service.

Option B – Raise $5.1 million, put the money into an endowment, and use the proceeds to service the mortgage.

Option C – Raise $7.6 million dollars, put it all into an endowment, use the proceeds to pay the mortgage, and increase programming.

Option D – Do nothing because that sounds like a lot of money and we can’t raise that much.

There is no right answer. Instead, there are a lot of factors to decide if you should pay off your nonprofit’s mortgage. Here are 7 considerations:

  1. Is now the right time for you to raise money? Do you have the volunteers, staff, infrastructure, and know how to run a successful campaign?
  2. What are the terms of your mortgage? If you have a low fixed rate, the decision may be different than a short-term variable rate.
  3. How comfortable are you with debt? There are people that live in huge houses and drive luxury cars but are heavily leveraged. Others have no home mortgage and buy cars outright. Neither is right or wrong, but each board member’s personal preference will influence their opinion.
  4. Do you understand your current donors? Do you know what potential you have within your donor base?
  5. Do you have a culture of asking? Of course, you want a culture of giving, but that starts with a culture of asking. And if you have not asked them for anything in the past, a big ask is a hard place to start.
  6. Can you raise that much money just to pay off the mortgage? From a fundraising perspective, it is a hard sell for many people. Especially if they, personally, live with a mortgage. If you add programming or other capital needs into the fundraising plan it offers people a clearer vision of what you want to achieve with their donation.
  7. There is a difference between practical/realistic and negative perspectives. If most of your board assumes you cannot achieve the goal, you will not achieve the goal.

Wondering if you have what it will take to raise money? Click here to schedule a complimentary consultation and we can help you think through the possibilities.

Want to learn more about our Capital and Endowment Campaign services?

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