The Business Side

of Charity
Businessman Bob Madonna
was itching for a chance to take
what he had learned about
sales and marketing and try it
in the nonprofit sector.

Fundraisers as Salespeople?
Three voices on the similarities and
differences between fundraising and sales.

Grandma’s Yellow Pie Plate

Got plans for National Estate
Planning Awareness Week?

Answers on Grant Proposals

(If nonprofits were brutally honest!)

SEPTEMBER 2018

POWERFUL
SEARCH. VALIDATE. TARGET
ACCURATE. ACTIONABLE DATA.
THE NATION'S LARGEST
CHARITABLE GIVING DATABASE CONCISE
PROVENPHILANTHROPY
GROUND Breaking studies
WEALTH PREMIUM DONORS
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DYNAMIC SEARCH TECHNOLOGY MAPS
Measurable data higher conversions
Extensive Substantial
TABLE OF CONTENTS
8 10
IN E VERY ISSUE
4 From the CEO
The Queen of Soul
didn't have a will
5 Editor’s Note
Two helpful questions
6 Your Voice
Fundraising as sales?
7 Survey Says
Does your boss help or hinder
your planned giving efforts?
15 Technical Toolbox
The Goldilocks Rule
SEPTEMBER 2018
15 18
FEATURES THIS MONTH
16 Q and A 8 National Estate Planning
With a Porsche salesman
Roland Schwagerl
Awareness Week
Are you ready?
20 Good to Know
10 Cover Story
Numbers that make you go hmm...
What happens when you run a
nonprofit with business savvy
21 Ask the Expert 14 The Planned Giving
CRUTs, CRATs and 529s Newsletter
Yea or nay?
22 Call To Action
18 Screen Door Conversations
Six action steps for September
When you're just about to leave
and the donor brings up that
acreage on the lake ...
19 Answers on Grant Proposals
(If nonprofits were brutally
honest!)
er ’s
FROM THE BLOG e ptemb
S to
Call n
Planned Giving. Yesterday. Actio 2
2
by Viken Mikaelian page
You know me—I’m all about planned giving, tomorrow.
I focus on gifts that come tomorrow (although the benefits to the
giver are immediate). What about planned giving yesterday, though?
Where did this concept of deferred giving originate?
Read the rest at www.planned.gifts/yesterday
G IV I NG TO MO R R OW SEP TEM BER 2018 | 3
FROM THE CEO EDITOR’S NOTE

The Queen of Soul Advice From a Former FBI Negotiator

Didn’t Have a Will W
hen I was in school for journalism
they taught us to ask six ques-
tions—the 5 Ws: Who? What?
During my first couple years of interview-
ing people for stories, I often started ques-
tions with Why. But when I listened to the
Who is in control of the conversation: The
person talking or the person listening?
When I read that question in Never Split

W
hen Aretha Franklin passed away importance of writing a will. Where? When? Why? And How? recordings, I noticed those why questions the Difference, my gut reaction was, “the
last month, she left behind a Tell them the Aretha Franklin story. Urge When I started working for a magazine, sounded a little harsh, almost accusatory. person talking.” I envisioned a chatty woman
musical legacy that spanned more them not to be in the majority of Americans the experienced editors taught me to ask Most people were gracious enough to answer dominating my book club. It sure seems like
than six decades. who leave a mess for their families to sort out. open-ended questions when I interviewed anyway, but the last thing I wanted was to put she’s in control. After all, everyone else has to
She also left behind an expensive legal Check out PlannedGiving.com for resources people. So that eliminated Who, Where and someone on the defensive when I was trying be quiet and listen to what she has to say. But
mess for her family. to help you—our Estate Planning Guide and When, which typically kick off questions that to get them to open up and share their stories. Voss pointed out that it’s actually the person
The Queen of Soul, you see, died without Will Kit, for example. result in short, informational answers. So I eliminated Why. asking the questions who is in control. The
having created a will. According to a CNN It’s true, planned giving can get complicat- Where was your first job? That left me with What and How. In all my listener is observing, taking mental notes,
story, Franklin has four sons who have filed ed. (Those who like the technical details will about Aretha Franklin to your LinkedIn ( feel Chuck-E-Cheese. interviews, I'd guess about 90 percent of my asking follow-up questions, guiding the
legal documents “listing themselves as enjoy Mike Handrick’s take on managing free to share mine—planned.gifts/nowill). When did you graduate from law school? questions start with one of those two words. conversation in a direction they want it to go,
interested parties” and a niece who has endowment assets on page 15). Stay tuned. Next issue we’ll give you 21 1998. (You’ll see when you read the Q&A with a or collecting information to be used later.
requested that the court appoint her as an But it doesn’t have to be complicated. Don’t simple ideas to “touch” your prospects with Not much there to work with. For a good Porsche salesman on page 16.) Porsche salesman Roland Schwagerl (page
estate representative. psych yourself out thinking about launching gentle reminders to create a will and include story, we need emotions and details. Better to What and How don’t just work well for 16) said something very similar: “The person
Franklin’s lawyer reportedly asked Franklin an entire planned giving Program, capital P. •
you in it. ask What was your first job like? How was that storytelling purposes. I just finished reading asking the questions controls the situation.”
“constantly” to create a trust. “But she never Your “program” can be as simple as two steps: first year out of law school? Never Split the Difference by former FBI You already know to let your donors do
got around to it”—just like 60 percent of 1. Teach your people how important it is to hostage negotiator Chris Voss. One of his most of the talking. Now you have another
Americans. create a will. negotiating tricks is to ask open-ended good reason why! You can control the
Next month is National Estate Planning 2. Ask them to include you in it. questions to uncover your opponent’s true direction of the conversation—or, more likely,
Month. Your first step: Read Sophie Penny’s Do just one small thing to promote VIKEN MIKAELIAN gut-level desires. Voss recommends starting multiple conversations over a period of time.
excellent article on page 8. Your next step: planned gifts, like adding a simple sentence to PlannedGiving.com CEO your questions with two words: What and By asking What and How questions, you can
Start educating your prospects about the your email signature line or posting the story How. I was glad to learn that my two favorite keep your donors talking, learn about what
question words are FBI Negotiator Approved! makes them tick, and guide the conversation.
I don’t expect to ever have to negotiate for By the way, there’s another journalist trick
people’s lives, but I have been known to ask that helps explain those “Screen Door Conver-
store managers for a price reduction... sations” Karen Davis Kilgore writes about on
For a development person seeking to build page 18. Good reporters know to pay close
a relationship with donors, What and How are attention to the introductory chit-chat and
the perfect words to lead into good open-end- goodbyes. The very best material often
ed questions. As you take advantage of emerges in those moments when people
Founder and CEO Publisher
National Estate Planning Awareness Week are relaxed and unguarded outside of the
Viken Mikaelian PlannedGiving.com, LLC
1288 Valley Forge Road, #82
next month (page 8), try asking your donors formal interview. •
Editor What and How questions and see what kind of
Phoenixville, PA 19460
Karen Martin rich conversations unfold. What cherished
800-490-7090
Design 610-672-9684 fax item from your parents will you save forever?
Brigid Cabry Nelson What’s one of your favorite memories of your
Got Something to Say?
Regular Contributors
grandmother? How do you want people to KAREN MARTIN
Your feedback, comments,
Jonathan Gudema remember you when you’re gone? Editor
reprint requests, corrections
Camilyn K. Leone karen@plannedgiving.com
and article submissions are
Rebecca Price Janney welcome.
success@plannedgiving.com
plannedgiving.com/gt

“Wisdom is the reward you get for a lifetime of listening

© 2018 PlannedGiving.com, LLC
Views, opinions, and ruminations expressed or implied in this
publication do not necessarily represent the opinions of the
publisher or editors.
Cartoon drawn by Stacy Nguyen. More cartoons and funny imaginary dialogue
when you’d have preferred to talk.”
at nonprofitaf.com/2017/06/imagine-if-apple-had-to-run-like-a-nonprofit
— Doug Larson

4 | G I V I NG TOMOR ROW G IV I NG TO MO R R OW SEP TEM BER 2018 | 5

YOUR VOICE
Are Fundraisers Salespeople?
INTERVIEWS CONDUCTED BY REBECCA PRICE JANNEY
Megan van Ravenswaay
Megan’s museum administration career
includes Historic Bethlehem Museum and Sites,
the Moravian Historical Society, and the
Northampton County Historical and Genealogi-
cal Society, where she is currently Director of
Development.
For an effective museum fundraiser, “sales”
is only one word within their full job descrip-
tion. Of course we are selling the museum
experience—the happiness of children when
they visit us on a school field trip and the
comfort of a place to store important items
for posterity. We sell the needs of our historic
structures’ maintenance requirements. Most
importantly, though, we are listeners and
connectors. We are listening to what our
donors are interested in, and connecting
them to that project. We are also listening to
our fellow team members—the curators,
exhibition installers, educators—and
connecting their projects to the right donor
or foundation. I pride myself in knowing what
is going on across all departments.
“If people like you they'll listen to you, but if they trust you they'll do business with you.”
6 | G I V I NG TOMOR ROW
SURVEY SAYS
How Do You Compare?
FROM 1,100 RESPONDENTS TO A SURVEY CONDUCTED BY PLANNEDGIVING.COM
Most of my colleagues in planned giving tend to be Does your CEO or boss support or hinder
too technical in their approach to gift planning and your efforts to close planned gifts?
therefore should be more people-friendly instead.
40
Helps:
31.06% 59.27%
30 25.31%
21.36% 22.26% No special influence
20 (negative or positive): 34.36%
10
HInders: 6.36%
0
Agree Disagree It’s mostly 50-50 I do not know
Scott Janney Kimberly Rose
0 10 20 30 40 50 60
Scott is a Chief Development Officer who served Kimberly is the director of development for
on the CGP Board and as President of Third Street Alliance for Women & Children in
Philadelphia’s Planned Giving Council. Easton, PA. With four decades of experience in
Multi-published in national fundraising periodi- government, business and nonprofits, her
cals, he has given ten presentations at CGP’s favorite roles are mother, grandmother and Annual giving, plus funds raised from special events, will Your organization should be investing more effort
National Conference and spoken for dozens of doggy mother. almost always bring in more dollars than planned giving can. into pursuing planned gifts.
planned giving and fundraising councils and I view my job as connecting a donor’s
chapters. passion with their purse. This is accomplished Agree
It's very important to be donor centric. In through getting to know people, discovering
other words, I need to help donors find their their interests, and connecting them with the
5.21% Strongly agree: 38.24%
passion for giving to the mission that they good work done by your organization. Most I do not know Agree: 44.7%
find most important. However I’m also an often this is done over a period of time, giving
employee of a charitable organization, and if the potential donor the opportunity to learn 8.08% Neutral: 13.29%
my time and activity are not raising money in about the organization and trust their Disagree: 3.05%
a way that helps that charity meet its goals, investment will bring positive results. Disagree
then I’m more of a drain on the system. To do Fundraising is about relationship building,
86.71% Strongly disagree: 0.72%
the most good for my charity, my employer, I believing in your organization, being
need to sell its mission to people, and I need knowledgeable about its history and mission, 0 10 20 30 40 50
to meet fundraising metrics that closely and personally financially supporting it. A
resemble sales metrics at a for-profit successful salesperson also needs to establish
company. I think I can have it both ways, trust, know their product, and speak
because truly donor centric gifts tend to personally about it. An important quality of a
surpass the metrics, but my charities can’t good salesperson and a good fundraiser is
afford to ignore the fundraising metrics. being able to identify when a person is ready Planned gifts take a long time to mature, often as long as 15 years.
to be asked to commit. I think the primary
difference is that the fundraiser isn’t as
focused on a quick “sale.” It takes time to build
Strongly agree: 21.54%
a relationship. Agree: 47.22%
Neutral: 11.85%
Disagree: 17.77%
Strongly disagree: 1.62%
— Zig Ziglar
0 10 20 30 40 50
G IV I N G TO M O R R OW SEP TEM BER 2018 | 7
BY SOPHIE PENNEY
Yes Virginia, There is a National
Estate Planning Awareness Week.
D
id you know that there was such a
thing as National Estate Planning
Awareness Week? I didn’t until I
became familiar with the National Associa-
tion of Estate Planners and Councils as a
result of helping to re-energize our local
estate planning council several years ago.
Every October since 2008 NAEPC hosts what
I affectionately call NEPAW. (By the way, it is
not just NAPEC making this declaration;
NEPAW was officially recognized by the
House of Representatives in 2008.) While it
might sound like bedtime reading instead of
counting sheep, you will find that the
Congressional resolution speaks truth.
Reviewing it is time well spent.
A Perfect Platform to
Promote Legacy Giving
So you now know there is a week during
which you can encourage prospective donors
and donors to focus on estate planning. Now
what? NAEPC offers a Quick Start Kit on their
website, which you can use to begin to build
awareness. In addition to spreading the word
through press releases and email, you have
the opportunity to employ this week to
educate prospective donors and donors about
estate planning and to interact with them.
During my seven-year tenure as the
director of development for a continuing care
retirement community, I planned and
implemented a regular series of estate
planning seminars. Local experts from
attorneys to CPAs to financial planners and
even downsizing experts and psychologists
served on panels. Topics addressed included
basics such as: the role played by an executor
(and why all five of your children should not
be assigned) and state estate tax laws (retirees
who move to a new state don’t always realize
that their estate will be settled according to
the laws in their new home state).
8 | G I V I NG TOMOR ROW
While many sessions focused on rules,
regulations, and tax implications we also
spoke to the softer side of estate planning. In
a session which I titled “Tying Up Loose Ends”
a psychologist, minister, and I spoke about
revisiting, and where needed possibly
attempting to repair, relationships. We
focused on matters such as how to speak with
family, why and how to write a legacy letter,
and consideration about how to, and to
whom to, distribute one’s stuff.
Who Gets Grandma’s
Yellow Pie Plate?
Bequeathing belongings might seem an odd
topic to touch on; however, many estate
planning professionals will tell you that the
arguments among family after someone
passes are more often about stuff than about
money. A great resource on this topic around
which you could build a program is “Who
Gets Grandma’s Yellow Pie Plate?” (published
by the University of Minnesota Extension).
One year we held a session just on this topic
which we called “Do You Own Your Stuff or
Does Your Stuff Own You?” That program
alone attracted over 250 registrants and
eventually grew into a fair-like event and was
hosted yearly by the marketing department.
Talking About Planned Gifts
In case you wonder, yes, we at times spoke
about charitable giving. We talked about how
to include our organization or another charity
in a will, how to make a nonprofit the
beneficiary of an IRA or 402(b), and other
ways to make a charitable gift. We launched a
gift annuity program as well and received
several out of the gate. We coupled this
education with liberal storytelling about the
difference that estate gifts were already
making. What was the result? We found an
increasing number of people coming to say
Arguments
among family
after someone
passes are more
often about stuff
than money.
that they had included our organization in
their plans.
This Year
For National Estate Planning Awareness
Week 2018, our local estate planning council
is partnering with the local public television
station to offer a program about estate
planning. This event will present a unique
opportunity to spread the word about estate
planning and charitable giving.
But you don’t have to have a grandiose
plan. You might offer one program for your
nonprofit’s high-level donors. In this session
professionals with expertise in wealth and
estate planning could converse with attend-
ees in a small group setting (I’ve tried this
approach, it was quite successful). Another
option would be to have a book group or book
giveaway or to host a webinar. (I suspect
PlannedGiving.com might also have some
great ideas and resources.) The key is to
take advantage of this official week to
spread the word about estate planning and
charitable giving. •
Sophie W. Penney, Ph.D., is the president of i5
Fundraising and the senior program coordina-
tor and lecturer for Penn State’s online
certificate program in fundraising leadership.
sophie@i5fundraising.com
It’s National Estate
Planning Awareness Week
Congress Says So!
House Resolution 1499 | September 27, 2008
WHEREAS it is estimated that over 120,000,000
Americans do not have up to date estate plans to protect
themselves or their families in the event of sickness,
accidents, or untimely death;
WHEREAS a 2004 Roper poll commissioned by
the American Institute for Certified Public Accountants
found that two-thirds of Americans over age 65 believe
they lack the knowledge necessary to adequately plan for
retirement, and nearly one half of all Americans are
unfamiliar with basic retirement tools, such as a 401(k)
plan;
WHEREAS careful estate planning can greatly
assist Americans in preserving assets built over a lifetime
for the benefit of family, heirs, or charities;
WHEREAS estate planning involves many consid-
erations, including safekeeping of important documents,
documentation of assets, operation of law in the various
States, preparation of legal instruments, insurance,
availability of trust arrangements, charitable giving, inter
vivos care of the benefactor, and other important factors;
WHEREAS estate planning encourages timely
decisions about the method of holding title to certain
assets, the designation of beneficiaries, and the possible
transfer of assets during the life of the benefactor;
WHEREAS many Americans are unaware that
lack of estate planning and `financial illiteracy' may
cause their assets to be disposed of to unintended parties
by default through the complex process of probate;
WHEREAS alternatives to disposition of assets
after death, such as planned gift giving, may accomplish a
benefactor's goal of providing for his or her family and
favorite charities;
WHEREAS careful planning can prevent family
members or other beneficiaries from being subjected to
complex legal and administrative processes requiring
significant expenditure of time, and greatly reduce
confusion or even animosity among family members or
other heirs upon the death of a loved one;
WHEREAS important considerations as to
donation of organs and use of life support functions may
be made through the estate planning process;
WHEREAS the implementation of an estate plan
starts with sound education and planning, and then may
require the proper drafting and execution of appropriate
legal documents, including wills, trusts, and durable
powers of attorney for health care;
WHEREAS the third week of October should be
designated as ‘National Estate Planning Awareness
Week’; and
WHEREAS the National Association of Estate
Planners and Councils, representing over 28,000 estate
planning professionals, together with the Universal Press
Syndicate, the largest independent newspaper syndicate
in the world, are prepared to provide such educational
information to the public in a focused manner during
National Estate Planning Awareness Week:
Now, therefore be it RESOLVED, That the House
of Representatives —
(1) encourages the distribution of estate planning
information by professionals to all Americans; and
(2) supports the designation of a National Estate
Planning Awareness Week
COVER STORY
The Business Side of Charity
BY KAREN MARTIN
B
ob Madonna and his first wife wanted
children. When they learned they
couldn’t conceive naturally, they
decided to adopt. But where to begin? It was
1980, pre-Internet.
Eventually they found a support group that
helped couples adopt, but the process was
difficult. Too difficult, it seemed to Bob. With
such a great need, for birth mothers and
hopeful adoptive parents, it seemed to him
there should be more and better resources.
Bob met up with a man who was trying to
start a nonprofit to facilitate adoptions. They
recruited a few friends and pooled their
money. They put up billboards near train
trestles in the Philadelphia area advertising
free housing and medical care for birth
mothers who wanted to place their children
for adoption.
“We were business people,” says Bob. “We
did what we knew how to do—advertise.”
And it worked. Within three years Golden
Cradle Adoption had grown to be one of the
most successful adoption agencies in the
United States. It was featured on Good
Morning America and 60 Minutes.
Bob took a few things away from the
experience that would stick with him for life:
First, and most importantly, two chil-
dren—Ryan and Mandy, now in their 30s.
Second, says Bob, “The experience taught
me ‘wow—you really can make a difference in
the world.’ ”
Third, Bob realized that business princi-
ples he was using every day in his job could
also have great results for charity.
From Businessman
to Board Member
Bob’s career began on a bottom rung at Bell
Atlantic, which eventually became Verizon.
“I was the Italian kid with minimal
education,” he says.
But he studied the company’s organiza-
tional charts and soon knew just about
everyone’s name in the Pennsylvania division
of the company. He started a football pool
10 | G I V I NG TOMOR ROW
that became popular with the executives in
his building.
“I started making friends with the people
who were being promoted so I could
understand what they were doing right.”
One day, his boss pulled him aside. “He
told me I had a lot of potential and encour-
aged me to drop the pool and go back to
college and get my Bachelors degree. I took
his advice.”
After school, Bob’s career took off. He was
promoted several times, advancing on a fast
track from a vocational position to manager.
After 10 years of moving up within the
engineering department, Bob took a job in
marketing and continued his upward motion
in the company.
In addition to a successful career, Bell
Atlantic gave Bob something else: a passion
Bob and Deborah celebrated 18 years of marriage last month.
“I always had this yen to apply what I
learned in sales and marketing to the
nonprofit world.”
for volunteering in his community. Bell
expected their employees to volunteer on one
of the company’s community relations teams.
Bob loved it.
By 2001 Bob had left the corporate world,
remarried, and started a company from
scratch. His business took off, and he was
approaching a stage in life when he could
start thinking about a comfortable retirement.
And yet, he says, “I always had this yen to
apply what I learned in sales and marketing to
the nonprofit world.”
Bob Madonna and Surrey members in Media, PA.
Clockwise from left: Edna, Teresa and Kay.
He missed the nonprofit world and being
connected to the community, so he began
volunteering on local nonprofit boards. Over
the next 15 years or so, he would serve on
nine different boards. He also began inter-
viewing for nonprofit CEO positions.
“I was always the number two person,” he
says. “I was the business guy, the outsider. I
always lost out to ‘mission people’—folks who
had been in the nonprofit world all their lives.”
Then in January 2016, after six months of
interviewing and role-playing, a nonprofit
gave the business guy a chance. Bob was
appointed to be the new President and CEO
of Surrey Services for Seniors, a nonprofit in
the Philadelphia area that helps older adults
continue to live as as engaged members of the
community.
Screaming for the Elderly
All Bob’s nonprofit experience up to that
point had been working with children. Now,
as the head guy for a senior services organiza-
The Way We Think About Charity
is Dead Wrong
Highlights from Dan Pallotta’s TED Talk: Uncharitable
We have two rulebooks. We have one for the nonprofit sector, and one for the
rest of the economic world. It discriminates against the nonprofit sector in
five areas:
1. Compensation
In the for-profit sector, the more value you produce, the more money you
can make. But we don't like nonprofits to use money to incentivize people
to produce more in social service.
2. Advertising and marketing
We tell the for-profit sector, "Spend, spend, spend on advertising, until the
last dollar no longer produces a penny of value." But we don't like to see
our donations spent on advertising in charity.
3. Risk taking
Nonprofits are reluctant to attempt any brave, daring, giant-scale new
fundraising endeavors, for fear that if the thing fails, their reputations will
be dragged through the mud. Well, you and I know when you prohibit
failure, you kill innovation.
4. Time
Amazon went for six years without returning any profit to investors, and
people had patience. They knew there was a long-term objective down the
line. If a nonprofit organization ever had a dream of building magnificent
scale that required that for six years, no money was going to go to the
needy, we would expect a crucifixion.
5. Profit
The for-profit sector can pay people profits in order to attract their capital
for their new ideas, but you can’t pay profits in a nonprofit sector, so the
for-profit sector has a lock on the multi-trillion-dollar capital markets, and
the nonprofit sector is starved for growth and risk and idea capital. •
G IV I N G TO M O R R OW SEP TEM BER 2018 | 11
Clockwise from left: Bob and his son Ryan with the Phillie Phanatic, mascot for the Philadelphia Clockwise from left: Bob at a public speaking engagement; Ken, a volunteer in the Surrey café;
Phillies; Surrey staff (L to R) Steve Trubey, Caryn Fallon, Bob Madonna, Kathleen Sanger, Lady and her Surrey Home Care Services companion Margaret using the computer
Christina Wagoner, Christi Seidel, Vicki Weiss, Mary LePera; Bill, a driver for Surrey Services. at Surrey in Devon, PA.

tion, he found himself facing a learning curve.
“The only thing I knew about aging is that I
was getting old!”
What he learned in those early days on the
job quickly turned him into an advocate for
older people—in particular, older people who
are at risk of leading isolated lives. A third of
Americans over 65 live alone; half of people
over 85 live alone.
“When people can't drive they’re isolated.
A lot of times people don't have family in the
area. They’re totally by themselves.”
He cites some sobering statistics:
• The highest rate of successful suicides
is men over 75.
• Isolation significantly increases the risk
of heart disease and stroke.
• Loneliness can accelerate cognitive
decline in older adults.
• Isolated individuals are twice as likely
to die prematurely as those with more
robust social interactions.
“Every other group of people are so strong
in their advocacy, screaming for their rights,”
says Bob. “Nobody screams for the elderly.”-
Bob considers it his #1 job as CEO to be a
voice for the elderly and for Surrey Services.
He does at least one public talk every week.
“In successful nonprofits, the leader is
visible. People know who he or she is,” says
Bob. “I hire people to do the work, then my
job is to get out there and make it easier for
them. I’ll talk to anybody. It’s not about me...
it’s for Surrey.”
Nonprofit Innovation
One of the first things Bob did as the new
CEO was ask all the board members of Surrey
Services to watch Dan Pallotta’s TED Talk,
“Uncharitable.”
In the talk, which has been viewed by 4.5
million people, Pallotta calls for more freedom
for nonprofits to take bigger risks—on par
with what is expected from businesses.
“I hire people to do the work, then my job is
to get out there and make it easier for
them. I’ll talk to anybody. It’s not about
me... it’s for Surrey.”
If charities are to solve the world’s greatest
social problems, he says, they must have
the space to dream big, spend money and
take risks.
Bob loves the Pallotta approach. And at
last he has his chance to test out business and
sales strategies in the nonprofit world. Bob
talks about—and embraces—the “six dirty
words” in the nonprofit world—competition,
marketing, collaboration, sales, risk and
advertising.
Competition
Bob remembers passing out blank cards to
his board members and asking them,
“How many 501c3s do you think there are
in our area?”
People wrote down their guesses: 1,000?
2,500? Maybe 4,000?
Then Bob revealed the correct answer:
43,700.
“If we have that many competitors all
begging for money, we have to get above
the fray!”
Marketing
“Having a really good marketing person is just
as important as a good development person.
You have to have awareness first.”
The easiest marketing tactic, says Bob, is to
go into a public setting and give a talk. “I’m
asking all 23 board members to give one talk
next year.”
Collaboration
At the same time he views other nonprofits in
the area as competition for funding, Bob is
also pursuing collaboration with them. Later
this year he’s inviting various nonprofits to
come together at Surrey and talk about how
to work together.
“Let’s promote each other’s programs,
create complementary services, make sure
our galas don’t fall on the same date,” he says.
“In the business world that’s why you have
trade associations. That’s not customary in
the nonprofit world.”
Risk
One of the things that attracted Bob to Surrey
Services was how the board embraced the
same “fail quickly” axiom that was encour-
aged when Bob worked in the business sector.
He was given freedom to try just about
anything—and he has.
Bob decided to try a simple fundraising
method that had been successful at another
organization where he had served on the
board. They put little coin banks at conve-
nience stores and got a third of the change. It
was a large metropolitan area, and it worked
out great.
Bob thought he’d give it a try at Surrey. “I
got a bunch of banks, distributed them all
over. It failed.”
Bob put a lot of time and energy into
another non-starter that really surprised him
when it didn’t take off.
“I tried to make relationships with religious
institutions in the area. I thought that would
be natural. We could help drive their people
around, get them to church on Sundays, etc.
But it seemed like they were afraid if we did
good will to their members, they’d stop giving
there.”
The flops don’t bother Bob. “You can’t be
afraid to try new things,” he says. •

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