Advancing Philanthropy
January/February 2008

How to effectively raise funds in a roller-coaster economy

Laura Fredricks, J.D., vice president for philanthropy at Pace University in New York, suggests that in addition to staying focused on your mission, it is critical to avoid getting carried away with fundraising trends that will not serve you well.

"Don't drastically shift what you've been doing," she advises. "When hurricanes Katrina and Wilma hit, we saw the Red Cross and other organizations raise huge amounts of money online and everyone said, 'Maybe we should do that.' But maybe your constituents aren't Internet-savvy. Don't jump on a trend and change fundraising tactics to something that isn't in sync with how your people like to give."

Savvy Strategies

In addition to practicing effective and ethical fundraising and using resources wisely, there are other lessons to keep in mind in a fluctuating economy.

1. Plan, diversify and save. Fredricks emphasizes the need for organizations to plan for the bad times.

"Every organization needs to do a risk assessment," she says. "After September 11, a series of hurricane disasters, the continued war in Iraq and the recent California fires, every organization needs to plan for the ‘what ifs.’ What can and should we do to keep a stead stream of money? Planning is the key, not just during roller-coaster times but in all times. You have to be prepared to juggle and stay flexible and creative."

Part of this thoughtful planning is to avoid putting "all your eggs in one basket." Organizations that rely heavily on government funding, for example, take a hit when tax revenues dry up and budget cuts can result. Arts and cultural organizations that depend on ticket sales are hurt when people stop discretionary spending on what they see as "nonessentials." Charities that run on corporate sponsorships and support may be unsuspecting victims when companies change hands.

2. Be realistic. Although you may think you should say "yes" to every big gift that comes your way when times are rough, having clear gift policies in place will help you avoid getting stuck with donations that put an even greater burden on your organization.

"When people can't give outright gifts, they start giving other things, like art or real estate," Fredricks says. "I'm floored by how many groups don't have a gift-acceptance policy. For example, do you take gifts of real estate? If so, can you pay for the environmental assessments and other associated costs?"

Similarly Fredricks warns against the problem of over-promising and under-delivering. "An arts organization might get a $5 million gift from an artist and promise nine things in return," she explains. "But the endowed gift won't spin off interest right away, so where will the unrestricted money come from to get things underway?"

If a major gift is looming on your horizon, do not let economic worries blind you to the realities of your ability to fulfill your terms of the gift agreement.

Resources

AFP Audioconference, Fundraising During Challenging Times and Beyond, presented by Laura Fredricks, J.D., Feb. 24, 2004 (for information, visit www.afpnet.org)

Shape Magazine
September 2007

Lighten Up at Lunch

Like many of us, Laura Fredricks struggled to lose those last 5 pounds for years, but as vice president of philanthropy for Pace University in New York City, wining and dining was part of her job description. So after years of three-course lunches and meager dinners, the 49-year-old tried a new track: "I began ordering shrimp cocktail and a big salad at lunch meetings," she says. And now, rather than "skipping" dinner but eating a whole bag of pretzels, she has grilled veggies, chicken, or fish. Proof her strategy works: She's down 8 pounds. Fredricks hasn't just lost weight, she's also gained energy.

Contribute Magazine
September/October 2007

Laura Fredricks, Author, Fundraiser, Lecturer

Ms. Fredricks is vice president for philanthropy at Pace University in New York, where she oversees fundraising and alumni relations, and author of the 2006 book, The Ask: How to Ask Anyone for Any Amount for Any Purpose. Ms. Fredricks teaches nonprofit leadership and fundraising courses at Columbia University, Duke University, and the Smithsonian Institution.

Case Currents Magazine
September 2007

Venture Philanthropy Nation

You say you want a revolution?
How about an evolution instead?

Colleges and universities were among the first nonprofit organizations to ascertain that the ground was shifting beneath them. "Suddenly we realized there are people who have a lot of money who are thinking differently, therefore we have to think differently," says Laura Fredricks, vice president for philanthropy at Pace University in New York City. "You can't just do what you do well. You have to start thinking like the people who can give you money think. That is, giving as an investment."

New philanthropists' expectations for interactions with fundraisers have also changed. "They look at [the fundraiser] as the conduit of the organization," says Paulette Maehara, president and chief executive officer of the Association of Fundraising Professionals. "The venture philanthropist looks at that person more as a business contact."

One such donor, Grant Wilson, complained to Pace's leaders several years ago that he was "tired of giving money to nonprofits and wasting it," recalls Fredricks. She says Wilson had a desire to help charitable organizations become more entrepreneurial. He wanted "to empower nonprofits to manage themselves better and give more money back to the community."

To that end, Pace's Helene & Grant Wilson Center for Social Entrepreneurialship was created in 2005, with a pledge of $5 million to hone "the risk-taking spirit and managerial skills of nonprofit organizations." Its mission is to promote social change through entrepreneurialship.

That sentiment is rippling throughout the worlds of philanthropy and higher education, observers say. Alumni and trustees "want to see reports. They want to see organizations run as profitably as can be . “As far as foundations, I see them wanting a lot more bang for the buck." Fredricks says. "It's an evolution."

Advancing Philanthropy
September/October 2003

The Fundraisers' Guide to Managing Your Career

When Laura Fredricks, J.D., vice president of philanthropy at Pace University in New York City, interviewed for her position about 16 months ago, she asked to have four hours with the president of the university. Four Hours? "Because this was a vice president position, a major factor was the working relationship with the president. If we would have to work long hours together, come together and make decisions, we had to get beyond that hour and a half she explains. The president did take four hours to meet with Fredricks, and they discussed everything from the position responsibilities and values to plays and music. "When we walked away, we both knew that this was right," she says. The interview is a two-way street—you learn just as much about the organization as it does about you. Take the initiative and probe for information:

• What are the specific responsibilities of the position?
• What is the first challenge that needs the attention of the person you hire?
• Is there a written job description for your position?
• Where does the organization want to be in three, five or maybe 10 years?
• What is the span of control and authority (report to CEO, access to board)?
• What resources are available (computer, software, budget, leadership, staff, supplies, endorsement of board and CEO)?
• How has the job been performed in the past? Is that the benchmark for excellence?
• How will the performance of the person be measured?
• Why is the job vacant?

"Approach the interview as though you have the job and explain what you can bring, " Fredricks advises. "Get the dialogue going. Be a little more detached and give an overview. Become their consultant. I came with seven files and an expandable folder. If in the interview you already sound as though you understand what needs to be addressed and give suggestions, you have a great chance." Most likely you will interview with more than one person, which will require interacting with different personalities and varying points of view. Trevin Hartwell, director of development and alumni relations at the University of San Diego School of Law, says he was surprised by the number of people he had to meet in the interview process. "I met someone from every constituency group—provost, dean, faculty, alumni, among others. This was daunting initially, but in the end it made complete sense. I learned a lot about the institution from a different perspective. It was a great way to learn about the issues I'd be dealing with and have to tackle."