Dear Friends and Colleagues,

For the fifth installment in our six part series “What Makes a Good Trustee?” we are fortunate to have input from Trustee Paul Goodof from Hebron Academy in Maine. Paul’s thoughts on the challenges faced by independent schools in light of the world financial crisis are particularly timely.

Our on-going CASE breakfast series continues in February and March, featuring esteemed panelists who will be discussing some of the most challenging topics of the day. Jody Johnson, Senior Regional Director/Leadership Gifts for Bucknell University, herein summarizes the November breakfast for those of you who could not attend. Details of two upcoming breakfasts (February and March) are provided below for your reference. We hope you will be able to join us for these lively and thought-provoking discussions!

In December, a panel of three CFOs representing prominent institutions gave advice on how to proceed in raising funds during this current economic downtown. Their recommendations for forging ahead are summarized in this month’s article by Cynthia Woolbright.

Last, colleague Chris Withers, former VP for Advancement at University of Richmond, re-caps the 10th anniversary meeting of the ACS-Naples Group, an ad hoc group of 20 current and former VP’s for Development, who gathered to discuss various hot topics ranging from trends in donor giving to relationship building on the internet.

Please enjoy this month’s reading recommendations and remember, you are invited to share the title of any book, article, blog, etc. — it doesn’t have to be strictly work-related — that you have recently enjoyed.

For upcoming issues of Bright Ideas, please send your article ideas to: info@woolbrightgroup.com

Thank you and well wishes from all of us at
The Woolbright Group

Announcements:


CASE Breakfast Series, February 27
Campus Center, Lasell College, Newton, MA
Networking and breakfast 8 a.m.; program at 8:30 a.m.

Topic: "The Role of the CAO at the Institution: Perspectives on Leadership and Management"

• Brian Lee, VP of University Advancement, Tufts University

• Darrell C. Byers, Vice Chancellor of University Advancement, University of Massachusetts Boston

• Trish Jackson, Vice President for Advancement, Smith College

• Tamara Rogers, Vice President for Development and Alumni Relations, Harvard University

CASE Breakfast Series, March 27
Heights Room, Corcoran Commons
Boston College, Newton, MA
Networking and breakfast 8 a.m.; program at 8:30 a.m.

Topic: The Academy: Partnering with the Academic Program

• Janet Terp, Senior Assistant to the Dean of the Faculty for Administration and Development, Dartmouth College

• Anita Tien, Chief of Staff, Office of the Provost, Boston College

• Steve Witkowski, Executive Director of Development for School Relations, Boston College

CASE Conference (presentations conducted by Cynthia Woolbright):

• District I, March 9-11, Westin Boston Waterfront

  • “Women & The Glass Ceiling or Gender Matters: A Perspective on Women's Salaries in Advancement” with Barbara Johnson, Associate Vice President, Human Resources, University of Vermont
  • “Closed Door Therapy” for the Key Decision Makers track (invitation only)

• District II, March 22-24, Baltimore Marriott Waterfront
  • “Extreme Makeover: Annual Giving Edition,” with Amy Wilson, Assistant Vice President for University Development, Catholic University
  • “Board Effectiveness in Raising Philanthropic Support: The Role of the Board and the Chief Advancement Officer,” with Mike Archibald, Vice President, University Advancement, St. Lawrence University

For more information and registration:http://www.casei.org/breakfast.htm

$45/CASE member
$60/non-CASE member

What Makes a Good Trustee? - Part V
Interview with Paul Goodof, Principal, Goodof & Co.; Trustee, Hebron Academy

1.  Tell us a little about the make-up of your Board of Trustees (number, who they are — parents, alumni, term of service, other)

Our current board is made up of sixteen individuals, twelve of whom are alumni, two are current parents, two are past parents, one is a current grandparent, and one is a long-term friend of the Academy. Four are attorneys, six from business, five from education or educational administration, and one in medicine. Geographically, there are seven from Massachusetts, three from Maine, and one each from New York, Illinois, Florida, Virginia, Washington, DC, and California. Trustee terms are four years and renewable once (for a total of eight years), except for officers, who are elected annually without limitation.

2.  How would you define the role of the board at Hebron?

Our By-Laws are very specific as to the powers and duties of the Board of Trustees, and include: (1) the responsibility for appointing and fixing the terms of employment of the Head of School; (2) the responsibility for management of all funds and assets of the School, including the right to appoint agents, auditors and investment counselors; (3) the right to acquire, by purchase or gift, all real or personal property that may be deemed appropriate for the operation of the School; (4) the right to borrow and to secure, by pledge or mortgage if desirable; and (5) the responsibility for adoption of annual budgets for the operation of the School.

More broadly, we see ourselves as stewards and fiduciaries, helping to focus aspirations and chart direction, but with a clear sense of, and respect for, the difference between governance and management and an acknowledgment that operational policy is the responsibility of the School’s management team. In addition to the statutory roles, we try to act as advisors, bringing specialized knowledge and experience to particular issues and challenges, and we try to complement where we can the skills and talents of the administration, faculty and staff — challenging their thinking where we believe appropriate, offering a breadth of outside perspective, and supporting their efforts and initiatives wherever and in as many tangible and intangible ways as possible.

3.  In general, what do you think are the three biggest challenges (or issues) facing boards today?

This is a particularly interesting time to pose that question, given the current turbulence and volatility in the world’s financial markets. A year ago, I’d have probably said (1) continued focus on increasing the quality of our primary product, the education of young people, measured by outcomes, which in so many instances are defined not just by college placements but also by the kind of young adults we produce – the notion of always improving how we do our job and better serving our students; (2) continued improvements in fiscal stability and the creation of operating reserves to sustain the School through normal cycles; and (3) raising endowment funds.

Today, there are, by my count, about five things that are working against virtually all independent schools, all related to the world-wide financial mess: (a) the effect of diminished values of School endowments on the annual operating draws; (b) the almost certain slowdown in broad-based annual giving; (c) the reluctance of donors to stretch for capital campaigns in the current environment, accompanied by some anticipated renegotiation of pledges in hand to back-end-load the fulfillment; (d) the changed circumstances of both current and prospective families, which will almost surely required increases in financial aid over the near term; and (e) the deferral of planned faculty and staff retirements because of diminished values of defined contribution assets. Each of these will impose constraints of significance on operating budgets for the next several years, and they are challenges that have to be met and dealt with in the context of each school’s individual circumstances. The presence of exempt debt on the balance sheets of so many schools, with covenant compliance requirements, will make this more difficult for some.

That said, the primary challenge for schools such as ours is to retain, in the midst of huge volatility, our focus on the long term, to “stick to our knitting” as best we can, always evaluating our decisions in the context of our mission, and to have thoughtful and advance plans in place to deal with surprises. The current muddle is also an opportunity to rethink how we do what we do, to implement rationalizations where possible, and to engage in productive collaborations that promise economies and efficiencies.

4  In general, what do you see as the role of the board related to raising philanthropic support for their respective institutions? From your perspective, how is that best accomplished?

I’ve always felt that the “three-w” model works better for independent schools than the “three-g” approach currently in vogue at some institutions. We benefit from broad-gauged people with a common-sense approach to everyday problems, and not all of those will be great givers or getters. But there is an ambassadorial role that all trustees must be comfortable playing, which goes to the heart of donor and prospect cultivation and stewardship – all members of the board need to be able to tell the story in compelling ways to diverse audiences, and if not adept or comfortable making asks, need to be able to accomplish a smooth hand-off to those who can.

There are a number of models that have proven effective – staff-driven, board-driven, head-driven – but the one that I feel works best is to have a core trustee committee that assumes responsibility for actual solicitation, partnering with others of the board, or the school head, or the director of advancement or other appropriate staff – in each case choosing the most effective combination of resources to fit the specific prospect. It’s the only way I know to provide leverage in a campaign mode, and to reach a broad number of prospects in a reasonable time frame. Acknowledging that many prospects, particularly in the top half of a campaign pyramid, will want to meet with the head of school, trustees can often pave the way more easily for such meetings and make the most effective use of the head of school’s time.

5. In the past few years, there has been much discussion among advancement about the preparedness and ability of boards in their ability to raise philanthropic support for their schools and colleges. To what do you attribute such discussions? What role might Chief Advancement Officers play in educating board members? What steps have you taken to address this topic with members of your board?

Board education and training is an evolving art. Many very effectively-run institutions have large numbers of board members not well versed in raising funds, and equally, many have boards whose collective resources and ability to make gifts fall well below thresholds currently being discussed – target percent of campaign totals from the board have been steadily rising. Clearly one way to cure a deficit of this sort is to try to attract board members with substantial resources, and significant effort to do just that is being expended at every institution with which I’m involved. But that sometimes takes time to do, and great care (be careful what you wish for!), and while those efforts are underway, one should not ignore the fact that cultivation, stewardship and even solicitation can be taught, and in many instances, at least in my experience, it’s really the lowest-hanging fruit: Board members are already well-versed in what’s going on at the school, and can – with thoughtful work on the part of the head and the advancement staff – develop skills and abilities that produce real leverage. As noted above, that doesn’t mean that every board member is going to be temperamentally suited to solicitations, but enabling them to be effective members of cultivation teams can yield exceptional dividends.

6. We are hearing more and more about board governance. Typically, this is related to the identification, recruitment, evaluation, assessment, and on-going education of board members. In what ways is your board considering this matter of governance? From your perspective, what are the major issues for boards, in general, to consider in this area of governance?  

How boards work, or don’t work, is a subject about which much has been written over the years, and I’m not sure I have any wisdom to add. To me, the best boards, the ones that accomplish the most and are the best suited to ride the roller coaster of inevitable cycles and changes of all sorts, are the ones where there is exceptional trust among members and between members and staff, where this is an ingrained habit in all members of listening carefully and well and always being prepared, where there is a willingness among all members to subordinate self-interest, where everyone takes a 40,000-foot view after developing an understanding of the view from the ground, and where there is common, deep-rooted and passionate commitment to the mission of the organization. Some of that can be accomplished simply by who gets asked to stand for election to the board; some of it has to be developed over time as board members get to know each other (and I’m a great believer in informal time at or between meetings to foster this); and some of it can be taught, or perhaps better, demanded or enforced by effective board leadership. In recent years, formal board (and board member) evaluations have, in very tentative ways, become more common, and I would expect them to become more rigorous, pointed and helpful with more usage and experience.

Paul S. Goodof Principal, Goodof & Co
16 Moody Street
Chestnut Hill, MA 02467
617-332-0738
617-792-1237 (cell)
617-558-1662 (fax)
psgoodof@msn.com

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The Woolbright Group provides comprehensive consulting services in the areas of Board and staff development. For more information, please call Cynthia Woolbright at 585.787.0325, or e-mail us at info@woolbrightgroup.com.

CASE Breakfast Series I: “A View from the Top: Harsh Realities in the Industry.”
Jody MacArthur Johnson '95, Senior Regional Director Leadership Gifts, Bucknell University

CASE District I is pleased to host six panel discussions in Boston sponsored by The Woolbright Group and William Spelman Executive Search. We invite you to join us in 2009 for these sessions, and bring your questions for lively discussions with Chief Executive Officers, Chief Development Officers, Chief Academic Officers and Trustees. For details, location and registration information please go to the website: http://www.casei.org/breakfast.htm

On Friday, November 14, 2008, we launched the first of six breakfasts in Boston featuring three prominent and seasoned Vice Presidents to discuss “A View from the Top: Harsh Realities in the Industry.” As anticipated, this was a lively kick off for the series, with candid discussion about raising money in this economy, how to work with donors, leadership styles, managing staff and the value of a good senior development officer. Our speakers were: Scott Nichols, Vice President for Development and Alumni Relations at Boston University; Peter Ramsey, Secretary of the Academy at Phillips Academy; and Kristina Schaefer, Vice President for Advancement at Simmons College.

Scott Nichols reminded us that in the history of philanthropy, there have been seven recessions since the 1960s, and still, institutions prevail and continue to raise capital during these tough times. Each speaker agreed that despite the faltering economy, now is the time to get out and visit donors and prospective donors, not to pull back from building relationships. They also acknowledged that attitudes on the West Coast are different from New York City where Wall Street professionals have less job security.

Consensus is that donors give to institutional priorities, talented faculty and compelling students. Major donors and investors may be drawn to your strongest programs even during a downtime. What many institutions (beyond these three) are working to do now is attract 8-figure gifts and create a culture of philanthropy, particularly among young alumni.

Particularly during a faltering economy, every gift we receive is even more important and should be acknowledged in the proper manner. Our guest speakers advise using calm trustees and leaders to rally donors. Kris Schaefer noted that her trustees have been calling more frequently to request financial updates, to discuss their personal finances, and remain keenly interested and invested in the College.

It is important that institutions phase funding priorities accordingly. Capital and endowment needs are being scrutinized now more than ever. One thing that Andover emphasizes is to resist reducing the quality of the education or funding opportunities during a financial crisis. There was a lot of discussion about how to raise money or recover what has been lost in the endowment.

We heard some particularly good questions about Return on Investment in people and programs for the development office. This is on the top of everyone’s minds. Some institutions are changing the organizational chart to capitalize on employee strengths and maximize the impact someone can have in the office. For example, technology may actually replace an employee in data entry, but can be a worthwhile long-term investment.

So, what qualities are these decision makers looking for in a senior development officer today? A storyteller, a person who can connect with multiple personalities and styles, someone who is articulate, well educated and can make connections. In order to be a good revenue producer, this officer needs to have strong written and verbal skills, be conversant in finance and understand how the money works, and how to put a donor’s money to work. There is consensus that a good officer sees “no” as a challenge, not “goodbye,” and that no job is too small. The best officer realizes that full service is what our alumni and parents expect. Delivering on this capitalizes the relationship with your institution.

Most of all, the panelists agreed that cultural fit — particularly for the Chief Development Officer — is critical. Know yourself and your limitations. The same is true for your CEO and institution. Then you can figure out how you will make a difference and the short and long-term benefits of working at your college, university, or school. At the end of the day, you want to enjoy your work, the mission and the people you represent.

Jody MacArthur Johnson '95, Senior Regional Director, Leadership Gifts
Bucknell University
office phone: 603-362-6199
cell phone: 570-412-1311
jody.johnson@bucknell.edu

Never Waste a Crisis: Advice from the Top
By Cynthia Woolbright, Principal, The Woolbright Group

In the recent “Conversations with CFOs: Advancement, Partnerships and Challenges” program, sponsored by CASE District I on December 12, we heard from three CFOs who advised us to “never waste a crisis!” Additionally, they shared some of their best strategies for partnering with the advancement team and building a culture of philanthropy.

In advising us to “never waste a crisis,” the panel agreed that the advancement team should be meeting with donors and talking about the institution. They told us to make sure we let our donors know how the current economy is impacting our organization. Share with alumni and friends the impact on the endowment and enrollment matters; let them know how the institution’s leadership is managing and planning in this environment. Above all, make sure it’s a consistent message from the institution. Make sure, they told us, that all alumni, development staff, and volunteer leaders speak from the same talking points.

Don’t be hesitant to ask for a gift. For major gifts, a donor may be able to make a smaller gift — not the larger six or seven figure gift as initially discussed, so think about how a smaller six figure or larger five figure gift might be made. Its significance will still be important. Review the donor lists, as there are some industries that have been less impacted than others in this economic climate. Who is available to step up now? Continue with the annual giving asks. These gifts, as the panel members stated, are essential to the institution. Keep reviewing, massaging and updating the gift pipeline, they advised us.

The panel members, reigning from Elms College, Lasell College and Mount Ida College, also told us to make sure we are partnering with the campus community. Developing and maintaining strong relationships with the marketing organization and other administrative offices is very important. It’s also critical that the faculty know more about what we do and how they might be engaged with us. These CFOs talked about the importance of setting priorities collaboratively. This helps to set a “shared sense of commitment,” according to David Healy, CFO at Mount Ida College. Operating from an overall strategic plan is valuable and will assist the Advancement Team in setting their respective priorities and goals in cooperation and collaboration with the other areas of the institution.

Each of the CFOs agreed that they are wiling and able to assist their Advancement Teams in meeting with donors and prospects. Where appropriate, they believe that they can provide credibility with donors related to investments and financial planning for the institution. These can be avenues for donors to increase their level of investment with the institution – beyond giving.

What all of the CFOs addressed is the critical importance of communication with these institutions. Here, sharing information and providing feedback will benefit the overall advancement program. Providing a realistic assessment of the marketplace, of alumni, friends, donors and other key constituencies, will go a long way in building trust and support, according to Brian Doherty at Elms College.

Finally, Doherty suggested that the senior team, collectively, should be speaking about the priorities for advancing the institution and that such an approach will build confidence in the institution. Visibility, knowledge and stewardship are keys in creating a culture of philanthropy on one’s campus.

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Thanks to the CFOs for their participation in this panel: David Healy, Mount Ida College, Brian Doherty, Elms College and Michael Hoyle at Lasell College.

10th Anniversary Meeting of the ACS-Naples Group
Chris Withers, Former VP for Advancement, University of Richmond

At the 10th anniversary meeting of the ACS-Naples Group, an ad hoc group of 20 current and former VP’s for Development, met for several days to tackle many fundraising challenges associated with these turbulent times. Topics ranged from “The Economy” to “Staffing/Trustee and Presidential Issues.” Chaired by Chris Withers, former VP for Advancement at University of Richmond, the attendees represented private colleges and universities from the mid-Atlantic region. Responding to comparison data from calendar 2008 and 2007, 12 of the 14 institutions had fewer donors in 2008 vs. 2007, yet over 50% of them raised more money during this same period. The data was clear that fewer donors gave more. Several of those reported increased giving noted that while the Annual Funds were generally flat or down, campaign payments pushed the numbers higher.
 
Regarding the fund raising strategy in 2009, the overwhelming mantra was, “love on your donors, and think long-term. We must do lots of thanking and consider changing our message by emphasizing student financial aid now more than ever. Our donors are our heroes and we need to tell them that often.” Some attendees talked about cutting back on off-campus special events, starting an emergency tuition fund and being certain that the development office thoroughly explains to prospects what the institution is doing about the current crisis. “Fear is paralyzing our donors and we must be good stewards of their support, especially in these times, because 2009 may be worse than 2008,” several commented.
 
Other discussions confirmed the huge trend toward electronic invitations, the use of FaceBook and You-Tube for relationship building. All institutions are making it a priority to collect cellular phone numbers and e-mail addresses. 

The Reading File: Reader’s Recommendations and Reviews

Welcome to The Reading File, a regular feature of Bright Ideas where our readers share their reading recommendations. We invite you to share the title of something you found worthwhile. It doesn't have to be a book and it doesn't have to be strictly work related! Feel free to submit just the basics (title, author), or include a brief review. We'd love to hear from you–thank you in advance for your participation!

”Three Days to Never” by Tim Powers

At a time when each day we learn something more disturbing about the stability of our world or the economic outlook for our nation, I found this book to be a refreshing reprieve — an opportunity to reflect upon the question, “What would we do differently if we could turn back time?” The book follows the events that unfold as a father-daughter pair discover they are descendants of Albert Einstein and it is revealed that he left a secret time travel machine capable of wiping out entire lifetimes and erasing beings as if they had never been. The story is suspenseful and will definitely stimulate your curiosity of the unknown.

Alan Ryea, Director of Alumni & Parent Programs
University of Vermont

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“Execution, The Discipline of Getting Things Done” by Larry Bossidy and Ram Charan

Our former president to our senior staff recommended this. I like it and it has some helpful tips for managers, but it is very corporate slanted vs. nonprofit (so far).
 
“The Hours” by Michael Cunningham

I’m sure when I finish, I’ll rent the movie and then read something by Virginia Woolf.  The Hours recounts one day in the lives of three women in a stream of consciousness style.  It is interesting to see the history of these women wrapped up in the trivial everyday things and the struggles they each face.

Ashlyn Sowell
Associate Vice President for Development
Gettysburg College

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“:The Omnivore’s Dilemma: A Natural History of Four Meals”
by Michael Pollan

As a longtime vegetarian, I am fascinated by the way food gets from the ground (or the animal) to our plates.This book explores industrial farming, sustainable agriculture, and hunting to understand the impact we make with our food choices. The author sheds eye-opening - and sometimes unnerving - light on the impact we make with our dollars at the supermarket. He infuses this topic with humor and makes it an interesting read!
 
Alison Martinez
Annual Giving Manager
Association for the Blind & Visually Impaired (ABVI)-Goodwill Industries of Greater Rochester, Inc.

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Three Cups of Tea
By Greg Mortenson and David Oliver Relin

Three Cups of Tea tells the amazing story of one man's commitment to build schools in the most remote, dangerous, and often anti-American areas of Pakistan and Afghanistan. It's a page-turning story of both a fascinating personality and a compelling cause. The book even includes details of the effort's early fundraising struggles and ultimate philanthropic breakthroughs that brought a seemingly impossible dream to reality.

Heather Calvin
Associate Vice President, Visitor Services & Membership
Museum of Science