Building a Successful Organization in Stressful Times

Thursday, March 5, at 12 noon, U.S. Eastern time

Cass Wheeler was chief executive of the American Heart Association from 1997 to 2008. He worked for the organization for 35 years after starting his professional career as a stockbroker. Mr. Wheeler is also the author of You've Gotta Have Heart: Achieving Purpose Beyond Profit in the Social Sector.

A transcript of the chat follows.

Peter Panepento (Moderator):
    Welcome to today's live discussion. Today, we're pleased to welcome Cass Wheeler, the recently retired chief executive of the American Heart Association, as our guest. Mr. Wheeler was the organization's top executive for 11 years -- guiding it through a a major national reorganization and the aftermath of Sept. 11. Today, he'll take your questions about his experiences -- and offer his advice on how you can manage your organization through the recession.

Peter Panepento (Moderator):
    Mr. Wheeler is also author of the new book You've Gotta Have Heart: Achieving Purpose Beyond Profit in the Social Sector. He has agreed to give away a free copy of the book to one lucky participant today. To register for your chance to win, simply send an e-mail to discussions@philanthropy.com. I'll draw the name of the winner at the end of the chat.

Peter Panepento (Moderator):
    To ask Mr. Wheeler a question, simply click on the "ask a question" link on this page. You can then type in your question or comment. He will be available to take your questions for the next hour.

Peter Panepento (Moderator):
    With that, let's get started ...

Cass Wheeler :
    Welcome to the Live Discussion. We are pleased you are participating and appreciate your taking time from your busy schedules to be with us.

Question from Drew Smith, Chapel Hill-Carrboro YMCA:
    Mr. Wheeler, We started a capital campaign in 2008 before the stock market tanked. How do you recommend maintaining the momentum we started to build during this economy?

Cass Wheeler :
    You may need to adjust your case for support to indicate how the economy is affecting your mission. You will need to adjust your plan to recruit more volunteers and solicit more prospects. You can go back to donors who have already pledged and ask them for additional matching gifts. Keeping a positive attitude and focus on mission is critical.

Question from Sam, foundation/funder:
    In working with various national organizations, we've found that the national office is sometimes in competition with the local offices. We've found the AHA does not have this problem. Why? In this economy is there a different role the national office will play with your local chapters to fund raise and support them?

Cass Wheeler :
    We were working out a revenue sharing arrangement for multi-million dollar gifts. Locals recognized if they had a $100,000 donor that might move up to $2 million, the pie would get bigger and they would get a "finders fee". We also addressed it from a staff incentive standpoint.

Nationals need to lead with confidence and solutions, be helpful and partner in working through this together--no time for "we/they" stuff

Question from Edith Asibey, Asibey Consulting | Communication and Advocacy Strategies:
    How did you balance the need for a strategic vision and direction for your organization while addressing unexpected events that must have required reconfiguring and scratching away some of your plans?

Cass Wheeler :
    We set a bold 10 year goal. Detailed execution plans were developed every three years but there was a recognition that we live in an ever changing world and that windows of opportunity open and close quickly so even with a plan you have to be willing to be fluid and flexible to capitalize on new opportunities.

Question from CarrollMediaArts:
    I am relatively new to the area of development and fund raising, but still looking to find ways to raise money for the small nonprofit I work for. What would you suggest for persons new to the field who are out for the first time looking for donors in a climate as interesting as we have now.

Cass Wheeler :
    Make sure you master the basics first. Identify areas where you think your organization can be world class and then focus--don't become scattered. Be a student of best practices and when you reach the benchmark, start charting new territory. Remember, relationships are so important.

Question from Solas, human service non profit:
    I just lost a major event sponsor and others have told me they are cutting back substantially this year. What businesses are doing well enough to ask for sponsorship support of events or how do you adjust to having less money to run events/fundraisers?

Cass Wheeler :
    Depends on the type of organization and the type of event. Look for new prospects that will somehow benefit from sponsorship beyond just doing good. That somehow it might help their business--look for . overlapping objectives. I still hear lots of success stories out there in spite of challenging times. You are really "selling" a partnership and selling benefit beyond just a charitable gift.

Question from JD Ferguosn, midsize nonprofit, community center:
    What is your advisement on revenue generating ventures for nonprofits?

Cass Wheeler :
    I have a bias that nonprofits need an entrepreneurial bent and just look for opportunities to generate revenue beyond just traditional donations. At AHA traditional accounted for about 75-80% depending on the year.

Question from Cindy, small non-profit:
    What do you do when you have little or no board support, and you can't get new board members because the bylaws of your agency state that they have to be parents/family members of a person you serve? They have basically told our ED that they will not fundraise.

Any thoughts or suggestions?

Cass Wheeler :
    Diplomatically they have to be told that the organization will not survive if the board is not willing to raise money. Donors will not support an organization whose board doesn't support it. Then try to find a few on the board that will try to lead a change in the bylaws. As a last resort, you could try forming an advisory board of influence to raise money, but that is a tough charge and probably just prolongs the inevitable.

Peter Panepento (Moderator):
    For those who are interested in learning about getting your board to raise more money, we held a discussion on that topic recently. The transcript is available here: http://philanthropy.com/live/2008/10/raise_money/

Question from Christine Niska, small nonprofit:
    Cass, I am a board member for a small nonprofit that focuses on helping cancer patients deal with legal issues (job discrimination, wills, etc.). We've been a 501c3 for just over a year. The founder volunteers her time to keep up on the Web site, answer the phones, and refer people to lawyers for assistance. We struggle with fundraising as we do not fit most people's giving guidelines. What are your recommendations for fundraising when we just don't fit the guidelines?

Cass Wheeler :
    Great question. I would begin developing some strategy focused on soliciting cancer patients and their families for gifts. That would be a good start. Look for patients with influential relatives and start building relationships.

Question from Cynthia Armour, Canadian freelancer:
    Do you see any reason to contact pledged parties in a more sensitive way than asking for more money?

Cass Wheeler :
    I'm not sure I completely understand the question, but most individuals making pledges are larger donors and therefore it's all about relationships. So, I think the approach will vary but I do think going to your existing donors and asking them to increase their pledge or gift to help you through the economic downturn is a good strategy.

Peter Panepento (Moderator):
    For those who just joined us, participants in today's discussion are eligible to win a free copy of Mr. Wheeler's new book, You Gotta Have Heart. To register, email us at discussions@philanthropy.com before 1 p.m. Eastern time.

Question from Lorin Brown, Non-profit Education org.:
    Mr. Wheeler, what is your view on Internet fundraising (Facebook, Twitter, etc.) as an effective tool for nonprofits to use during this economic downturn? Have you seen any trends in this direction by nonprofits?

Cass Wheeler :
    I haven't seen anyone make huge progress with social networking, but I deeply believe someone is on the verge of hitting a home run. AHA has been very successful in using technology in its special events that solicit pledges. The average returns for a volunteer using the software is three times higher than those that don't.

Comment from Kelly, large research university:
    To Cynthia: I'm not sure if this is what you mean, but we've been using the economic downturn as an opportunity to build our relationships with donors by going to see them and thanking them for their previous commitments and gifts, even if they are not in a position to give now. Our thought process is that if we continue to build our relationships now instead of abandoning our donors during this time, they'll see us as being there with them through both the good and the bad.

Peter Panepento (Moderator):
    Hello, everyone. We have about 30 minutes left in today's discussion. If you'd like to ask Mr. Wheeler a question, please click on the "ask a question" link on this page and type your query.

Question from Cynthia, Canadian freelancer:
    I work most with the Board of Directors. What do you see as their most crucial role in tough times?

Cass Wheeler :
    Lead with a positive solution-focused attitude and elevate their willingness to raise money or provide introductions to people of influence.

Question from John Greenhoe, Western Michigan University:
    Mr. Wheeler, I teach a graduate level fundraising course with many students who are quite new to fundraising. Many are involved in special events and grant-writing at small nonprofits, and some are delving into direct mail. However, my suggestion that they may want to begin at least investigating a major gifts program is very daunting to them, especially during this turbulent financial time. What suggestions would you have for these students as they think about strategies to increase their fundraising?

Cass Wheeler :
    I agree that the major donor arrow should be in every quiver. It requires meticulous research, long term cultivation, relationship building and delayed gratification. But they need to jump in the water.

Question from Dianne, Malignant Hyperthermia Assoc of the U.S.:
    Speaking of relationships with donors, how do you build a stronger relationship with present "major donors" and encourage them to either increase their donation or encourage friends to donate as well?

Cass Wheeler :
    It's going to vary some by donor, but think about it as a friendship. How do good friends interact? How are they thoughtful of each other on important occasions? How are they considerate of keeping each other informed if they hear of something of interest? And how often do they say thank you with no other expectations?

Question from Peter Panepento, moderator:
    With nonprofit employees feeling so much stress these days about the economic situation, what tips would you offer leaders to help them keep their employees motivated and productive? What message should a good leader be sending to his or her employees?

Cass Wheeler :
    Leaders need to be role models and have a positive attitude. "Ain't it awful" will not cut it. They need to be solution focused and work together--don't say "do this," say "let's do this together and I will help." Reframe the discussion away from the economy as much as possible (although acknowledge the reality) and focus on mission.

Comment from Canadian Cynthia (again):
    Kelly, thanks for your response and to Cass Wheeler too. I appreciate the "relationship building" side of Kelly's approach.

I think (particularly for small, new or grassroots organizations) we need to teach our board members their role in fundraising. Many don't have the expertise of trustees in larger institutions and resources are limited to provide training.

Any affordable suggestions for the less established organizations? They are under-resourced in both staff and board support.

Question from Kristiana R. Kocis, Major Gifts Officer, Red Cross of Santa Barbara:
    I was wondering if the current economic climate would warrant time to work on "pipeline donors." To build my major gift portfolio once the economy turns around. It detracts a little from a major gift program, but it could be an investment. What are your thoughts?

Cass Wheeler :
    I don't think there is ever a time when you don't have to be thinking long term as well as short term and balancing the demands. If during this economic challenge, we only focus short term, we will hurt our organizations long term.

Question from Marita/VA- large children's nonprofit:
    Have you had success motivating board members that have been chronically nonactive in fundraising to actually respond to our need for them to broker their Rolodex?

Cass Wheeler :
    My bias tends to say this is going against the odds. It's not rocket science to know if you serve on a board you better help it financially and I think that needs to be a requirement before joining a board. I would start bringing in new board members.

Question from CarrollMediaArts:
    I am relatively new to the area of development and fund raising, but still looking to find ways to raise money for the small nonprofit group I work for. What would you suggest for persons new to the field who are out for the first time looking for donors in a climate as interesting as we have now.

Cass Wheeler :
    Identify a few areas where you think the organization can excel, be a student of best practices in each area and start moving in that direction. Stay focused and strive for rock solid execution. Make sure you are true to the basics of fundraising. Build on a strong foundation.

Peter Panepento (Moderator):
    Only a few minutes left to get registered for the book raffle. Send a note to discussions@philanthropy.com if you want to be eligible.

Question from Peter Panepento, moderator:
    Mr. Wheeler: What are your thoughts about President Obama's plan to lower the deduction that wealthy donors can take for their charitable giving? Do you think it will affect giving and, if so, to what degree?

Cass Wheeler :
    I think it's an awful idea particularly at a time when nonprofits are expected to do even more. I think we should all make our voices heard so that it doesn't happen.

Question from Lorin, non-profit:
    Mr. Wheeler if a nonprofit wants to still do a "special event" fundraiser (gala, etc.), what questions should they ask themselves as other organizations are scaling back and funders and donors may perceive this as an unnecessary cost or expense to the organization, and they may not net the profits that would make the time and effort worthwhile?

Cass Wheeler :
    I wouldn't cancel anything but you need to make sure you have your sponsorships up front so you can fairly accurately forecast your net. Then it's a straight business decision. I think we need to make good business decisions but this is not a time to retrench, it is a time to be aggressive.

Question from Dianne Daugherty, MHAUS:
    What would you suggest be used to drive a "grass roots" effort through membership? We have MDs as members and those who are malignant hyperthermia susceptible patients. The patients are very dedicated, but often don't have the resources for a single large donation. We are attempting to bring them together through Facebook, but then what can be done to keep them focused?

Cass Wheeler :
    I think this will be driven more by patients and families and not by the MDs. I think we have to have other strategies, unless it is a referral to a support group.

Question from Kelsey, FAAN:
    You doubled your revenue during some tough times at AHA. Was there a particular area of fundraising that seemed to be the most fruitful during those times? I am anticipating increased donor support (or at the same level) with decreased sponsorship support. Is this typical of your experience?

Cass Wheeler :
    our strategy years ago was to identify about 5-6 fundraisers where we thought we could be world class and that we would phase out of the many, many others. This gave us focus and capitalized on our strength. We first looked at who owned the benchmarks within our organization and we did and indeth study and shared those best practices and drove the others to that same place. Then we did the same looking at outside benchmarks. we also streamlined our bureaucracy and back office operations,

Peter Panepento (Moderator):
    We're closing the entries for the book raffle and will announce a winner in a couple of minutes. Thanks.

Question from Teresa, mid-size nonprofit:
    Any advice for strengthening existing relationships with foundations during this time of economic uncertainty? Is it worthwile to pursue new foundations right now?

Cass Wheeler :
    i tend to to think of foundations as major donors that also require lots of relationship building so i would be cautious to not spread yourself too thin.

Peter Panepento (Moderator):
    Our raffle winner is Kelly Batstone from the University of Pennsylvania in Philadelphia. Congratulations, Kelly. We'll make sure you get your copy of "You Gotta Have Heart" in the mail soon.

Peter Panepento (Moderator):
    We are out of time. Thank you to everyone who took the time to join us today. A special thanks, also, to Cass Wheeler, who provided some great insights into managing and fund raising during these troubled times. Please remember to join us Tuesday, March 10, at noon Eastern time, when we discuss how charities are using online video to spread their messages and raise money.

Cass Wheeler :
    Thanks so much for your participation. Keep a positive attitude. History show that our sector is very resilient.