Domain #5 - Task 1

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Relationships that Ensure Fundraising Effectiveness

Four Relationships that Ensure Organizational Survival and Health…and Fundraising Effectiveness

Strategic Fund Development: Building Profitable Relationships That Last 3rd Edition, by Simone P. Joyaux (Pg. 24)

Internal Relationships

The infrastructure and foundation for all of your work.

Relationship with the Community

Your organization's relevance and position in the community.

Relationship with Constituents

Building connections with individuals and groups.

Relationship with Volunteers

Enabling others to take meaningful actions on behalf of your organization.

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CONCEPTS OF ORGANIZATIONAL DEVELOPMENT

Organizational development is used when a nonprofit has a problem and the nonprofit recognizes a need. Organizational development is the practice of planned, systemic change to enable an organization to better respond and adapt to changes to their external environment.

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OPEN SYSTEMS THEORY

These types of organizations understand that they are interdependent with their external environment.

They understand that they have an impact on and are affected by their external environments.

Characteristics Include:

Connected to its external environment

Understand and are able to respond to the changing needs of that environment

Have a management structure in place to interpret its mission in relation to that environment

Organizations that fail to adapt a changing environment or fail to make changes to an inhospitable environment will eventually produce unwanted goods or unneeded services and lose their ability to attract vital resources.

Leadership must help organizations focus on the external environment.

SOURCE: Achieving Excellence in Fundraising, 4th ed. (2016) by Eugene R. Tempel, Timothy L. Seiler, and Dwight F. Burlingame - Pg. 309

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KOTLER ORGANIZATION’S ORIENTATION

Scale that describes an organization's orientation as:

Unresponsive

Casually Responsive

Fully Responsive

Unresponsive organizations function as closed systems.

They do not encourage customer input, work to determine customer satisfaction or needs nor do they train staff to be customer-oriented.

Casually Responsive organizations look externally in its planning.

It encourages its constituents to provide feedback and periodically measures constituent satisfaction.

Fully Responsive organizations try to improve its services based on new needs and preferences and prepares its staff to be customer-oriented.

Organizations with strong internal value systems that give rise to their missions should become highly responsive by actively involving their clients and potential contributors in the organization's affairs.

SOURCE: Achieving Excellence in Fundraising, 4th ed. (2016) by Eugene R. Tempel, Timothy L. Seiler, and Dwight F. Burlingame - Pg. 310

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SWOT ANALYSIS

Strengths

Weaknesses

Opportunities

Threats

SWOT analysis is the fine line between responsiveness to changing environmental factors and its mission.

SWOT analysis can help an organization build on its strengths, minimize its weaknesses, and deal with opportunities and threats in its external environment.

SWOT analysis can help an organization focus on its strengths and reduce its vulnerabilities in institutional readiness, human resource, markets, vehicles, and management, the factors that are essential to successful fundraising.

SOURCE: Achieving Excellence in Fundraising, 4th ed. (2016) by Eugene R. Tempel, Timothy L. Seiler, and Dwight F. Burlingame - Pg. 312

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METHODS AND STRATEGIES FOR MANAGING CHANGE

How leadership responds to change is pivotal in an organization's acceptance of change.

Change perceived as opportunity and responded to creatively leads to growth.

>Leaders rebound with options that will position the organization more strongly than before.

Change perceived as a threat and responded to with fear leads to decay.

>Leaders implement responses that harm the organization's initiatives and impair growth

Four Conditions required for positive change

1. A believable purpose

2. Reinforcement systems, timelines, setting dates

3. Skills required for making change

4. Consistent role models

Beyond Fundraising: New Strategies for Nonprofit Innovation and Investment 2nd Edition by Kay Sprinkel Grace Chapter 3

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PRINCIPLES OF EFFECTIVE LEADERSHIP

Two well-recognized styles of leadership in our culture:

Positional leadership

People know they are leaders by virtue of a person's position within an organization

Tactical leadership

Brings together a group or a team toward a specific objective or goal

Most organizations are structured for positional leadership

Collaborative Leadership (Chrislip & Larson)

Ownership is shared; More people on board working toward a goal.

To lead by collaboration, individuals must be regarded as a leader by the nonprofit CEO, board chair, volunteers, donors, and staff.

It enables the leader to implement a workable plan for success, and count on others to help realize a mutual goal.

Without such recognition from all parties, the organization may lack focus and direction, experience diminished enthusiasm by board members and volunteers, and see donor dollars drop off.

SOURCE: Achieving Excellence in Fundraising, 4th ed. (2016) by Eugene R. Tempel, Timothy L. Seiler, and Dwight F. Burlingame - Pg. 302

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PRINCIPLES OF EFFECTIVE LEADERSHIP

Goleman Six Styles Of Leadership:

Coercive

Demand immediate compliance

Authoritative

Mobilize people toward a vision

Affiliative

Create emotional bonds and harmony within the organization

Democratic

Build consensus through conversation and participation

Pacesetting

Expect excellence and self-direction from those they lead

Coaching

Develop their people for the future.

The research strongly suggests that leaders should be flexible, changing styles as the situation demands. According to the research data, the authoritative leadership style affects climate most positively. However, affiliative, democratic, and coaching styles follow closely.

No leadership style should be used exclusively and, “all have at least short-term uses.”

Joyaux, Simone P.. Strategic Fund Development: Building Profitable Relationships That Last, John Wiley & Sons, Incorporated, 2011.

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PRINCIPLES OF EFFECTIVE LEADERSHIP

Four Leadership Attributes that contribute to the strength and stability of the organizations that they serve:

1. Courage

Maintain their own courage and that of others. They encourage others to grow, excel, produce, and become leaders themselves.

Take calculated risk that produces change and makes a difference in our communities including setting a plan for the organization and implementing the plan.

2. Confidence

Understand the importance of the organization, the mission and the sector it serves.

Take pride, rather than apologize for the fundraising and development process.

Elevate the sector as a whole, your confidence in the field and its organizations leads to more self-confidence. Supporting nonprofits should be approached from a position of strength and not weakness.

3. Creativity

Creative solutions, creative approaches, creative results

Communities expect this of nonprofit leaders and their organizations

It manifests itself an effective problem-solving, in containment of conflict, and new approaches or perspectives.

Creativity and change are strongly linked. Organizations that endorse and reward creativity usually respond more positively to change.

4. Commitment

Commitment is seen in the acts that nourish and support an organization, loyalty in the time of crisis, willingness to give and ask, and an enthusiastic advocacy for the organization that invites others to enroll in the mission.

It is sustained passion and exemplifies values.

Joy and energy override apathy.

Beyond Fundraising New Strategies for Nonprofit Innovation and Investment, Kay Sprinkle Grace - Chapter 3