August 3, 2009

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Editor's Note:
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NPT Study: Creative Ways of Luring Conference-Goers

By Michele Donohue

Carol Lewis, CEO of Philanthropy Northwest, said she worried people wouldn’t be able to afford the organization’s annual conference next month. So, the Seattle-based organization decided to tweak the conference to make it more financially accessible.

The organization kept prices at last year’s levels and moved it to a less expensive venue. It was originally scheduled for Alaska. But with the high cost of airfare, Philanthropy Northwest moved the conference to Stevenson, Wash., just outside of Portland, Ore.

To read the complete article click here...

 

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Industry News ...
Angie Moore to head Merkle’s nonprofit group

Direct response fundraising veteran Angie Moore has been hired to lead the nonprofit division of database firm Merkle in Columbia, Md. Moore joins Merkle from the American Cancer Society (ACS) national headquarters in Atlanta where she was managing director, customer relationship management.

 

Moore’s new title is senior vice president and general manager for fundraising services group. While at ACS, Moore led the nonprofit’s development into an increasingly constituent-focused organization through the implementation of strategic planning and relevant, integrated cross-channel communications.

 

Prior to that position, Moore served at the Arthritis Foundation in various management positions that culminated in her appointment as group vice president, customer relationship marketing. Earlier, Moore spent several years directing client strategy at an Atlanta-area direct marketing firm.

 

Moore said her first focus is to meet with clients “not as a meet and greet but to talk about needs in planning for the (economic) recovery.” She’ll also spend time getting to know the Merkle staff. Although she has known many of them professionally for a long time, seeing the parts working together gives a different perspective, she said.

 

Merkle’s clients include ACS, the American Heart Association, Arthritis Foundation, National Multiple Sclerosis Society, National Wildlife Federation and Feeding America. Moore acknowledged that she was in talks with Merkle about joining the organization when the new ACS contract was being negotiated. She said that she alerted ACS officials about the talks and removed herself from the request for proposal process.

 

The NonProfit Times selected Moore as one of the “Top 10 Influential & Effective Fundraisers for 2009,” and one of the nation’s top 10 fundraisers under the age of 40 in 2005. Her industry involvement includes a two-year term as the board chair of the Direct Marketing Association’s Nonprofit Federation.

 

“Nonprofits are at a critical juncture. They must think differently and market in new ways if they expect to not only grow, but to even maintain the ongoing commitment of their donors,” said Moore. “Today, effective fundraising is not only about demonstrating a strong return on investment. It is also about creating relationships and staying relevant to constituents based on their individual needs, expectations, behaviors and attitudes using an array of traditional and new online Web and social media strategies.”

Management ...
7 styles for a range of leadership

An integral part of good leadership is good communication. At the AICPA Not-for-Profit Industry Conference, Joan Pastor, president of JPA International, identified a range of leadership communication styles.

Those styles, from least effective to most effective, are:

  • Laissez-faire leadership. Necessary decisions are not made, actions are delayed, responsibilities are ignored or abdicated and authority remains unused.
  • Transactional leadership -- management-by-exception (MBE). Focuses on what is missing or not in place and tries to correct it. Looks to deviations from standards. Has a negative quality in interactions with others.
  • Transactional leadership -- contingent reward (CR). The leader assigns and gets agreement on what needs to be done and promises specific rewards, possibly praise.
  • Transformational leadership -- individualized consideration. Has good listening skills so people feel heard, recognizes individual differences, creates new learning opportunities.
  • Transformational leadership -- intellectual stimulation. Achievement oriented, people oriented, empirically "here and now" oriented, and idealistically oriented.
  • Transformational leadership -- inspirational motivation. Appeals to followers’ feelings, sentiments and emotions, communicates vision clearly, considers ways to make the environment more supportive and inviting.
  • Transformational leadership -- idealized influence. Has the ability to communicate so others listen. Puts the needs of others before their own, demonstrates high standards of ethical conduct and consistently looks for and focuses on areas of agreement, creative solutions and solutions of mutual benefit.

Finance ...
The psychology of fraud

It’s a fact: fraud is on the rise in nonprofit organizations. That sad news is especially burdensome because nonprofits that experience it have to deal with often-devastating public relations nightmares, as well as financial and personnel upheavals, and the nonprofits that don’t experience it are tarred with one sweeping brush.

At the AICPA Not-For-Profit Financial Executives Forum held in Anaheim, Frank J. Navran, who offers training and consulting in ethics, spoke about the rise of fraud in nonprofits and its consequences. He said that acts of misconduct usually involve The Fraud Triangle -- motive, opportunity and rationalization.

The good news:

  • Nonprofit organizations still exhibit stronger ethical cultures than business and government.
  • Nonprofit employees who have the ethical courage to report misconduct are less likely to experience retribution.
  • At nonprofits with strong ethical cultures, misconduct drops to near zero percent, and when violations occur reporting approaches near 100 percent.

There is bad news, however:

  • Misconduct at nonprofits is getting closer to business and government levels.
  • Financial fraud is more common with nonprofits than in business or government.
  • Nonprofit boards are failing to exert influence regarding a strong ethical culture.

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