Domain 5: Leadership and Management

Question 1

These needs are all elements of effective management:

Answer 1

The need for effective research, for planning how development and other programs will be implemented, and for ensuring the personal needs of stakeholders are always top-of-mind.

Question 2

Before an organization starts a fundraising program:

Answer 2

o Leaders that have a clear sense of the organization’s mission and the constituency it serves, and how its mission relates to that constituency.
o Leaders with a vision of the organization’s direction, familiarity with the organization’s activities, an understanding of how those activities relate to the mission and how the activities serve the community.
o A continuous planning process for determining how it will achieve its mission, and how much it will cost.
o The necessary resources to achieve the plan are available and/or can be acquired (time, money, people).

Question 3

Development professionals, too, need to know certain information before they can effectively manage the program:

Answer 3

o How the org meets the needs and desires of the constituencies being served.
o The fundraising goal and a plan for achieving it.
o The ability to articulate the org’s mission and activities to its constituencies, showing benefits of both the activities to the constituencies and of supporting the activities.

Question 4

Each planning activity – strategic, development, and marketing – should focus on:

Answer 4

Specific targeted constituencies (also called markets, audiences, publics, consumers, etc.).

Question 5

Planning enables the organization to:

Answer 5

o Ensure the mission and purpose meets one or more constituency needs.
o Determine the focus of the org’s efforts – where it’s going (goals).
o Outline strategies for achieving goals – how it gets there.
o Establishing the resources (human and fiscal) needed to design, implement, monitor, and evaluate the org’s strategies and programs.
o Articulate/strengthen accountability – who will do what, by when.
o Provide a guide to manage and monitor progress.
o Provide the bases for management.
o Position itself for success.

Question 6

Strategic planning allows the organization to set a course for a period of time,

Answer 6

typically 3-5 years, naming major steps the organization will take to achieve its goals.

Question 7

Planning beyond the 3-5 year horizon is typically reserved for… very high-level, visionary thinking

Answer 7

very high-level, visionary thinking (where do we want to be/look like in 10-20-30 years).

Question 8

Generally, the process of strategic planning achieves the following purposes:

Answer 8

o Requires the leadership to think at a macro level about what the organization can and should be.
o Forces an examination of the environment in which the organization operates:
 Defines the organization’s market niche.
 Explores the external environmental forces that impact the organization’s work.
o Engages stakeholders in the future of the organization.
o Clarifies organization values, vision, and mission.
o Set/defines measurable goals and strategies.
o Outlines responsibilities and timelines.
o Estimates need for and availability of resources; considers how they will be obtained.
o Defines success indicators and how they will be measured.

Question 9

While the strategic planning looks at the future of the organization as a whole, the development plan fits into the organizational planning process in a way that supports the organization’s mission and vision.

Answer 9

Development planning cannot occur until the strategic plan is created.

Question 10

Effective philanthropy requires knowing the organization’s purpose, direction, and stakeholders.

Answer 10

They’re all brought together in the strategic plan, which serves as the cornerstone for development planning.

Question 11

An effective non-profit has three major organizational plan documents to integrate, and the development plan is one of them.

Answer 11

The others are the overall strategic plan and the marketing plan. Each plan is interwoven with the others.

Question 12

The organization’s strategic plan is a major source of direction and information for the development plan…

Answer 12

which begins to put the organizational plan into action.

Question 13

Building a Realistic Budget:

Answer 13

o Match the budget to the development plan covering the same period.
o Incorporate appropriate monitoring and benchmark points.
o Choose a method based on prior-year or zero-based.
o Demonstrate a direct relationship between expense and income projections.
o Continually analyze and adjust as needed.

Question 14

Building a budget can be done in one of two ways:

Answer 14

o Prior-year budget:
 Using projected and actual figures from previous fiscal years as starting points to project what will be spent in the coming years.
 This assumes that the organizational and development plans and programs are essentially the same or have minor differences from previous years.
o “Zero-based” budgeting:
 Starting with zero dollars, then building expense and income budgets that match the development plan during the coming year.
 This form of budgeting can be more challenging, as it requires making fewer assumptions and looking far more closely and critically at the strategic, development, and marketing plans.
 It also requires reaching out to vendors to assess their fiscal plans to ensure accurate projections. This step may also occur using the prior-year budget method, but isn’t absolutely required as there is history to fall back on.

Question 15

Regardless of which method is used to create it, the budget document should demonstrate a direct relationship between:

Answer 15

dollars spent and the monetary results obtained.

Question 16

An effective budget requires monitoring and benchmarking points -

Answer 16

continued analysis of the projected and actual budgets throughout the year is critical to ensure the organization stays on track financially.

Question 17

The budget must also correlate with:

Answer 17

the organization’s various planning documents.

Question 18

Marketing plays a significant role in successful fundraising:

Answer 18

affecting promoting of programs, approaching and recognizing donors and potential donors, managing the fundraising office, and reporting to stakeholders and various other entities.

Question 19

The marketing plan emerges from:

Answer 19

the strategic plan and the development plan.

Question 20

If you’ve done the right things with your marketing efforts, your prospective donor/volunteer/user will know:

Answer 20

what you offer and what you need, and how it will affect them.

Question 21

Marketing encompasses many things not often thought of as marketing:

Answer 21

o Research not just for prospects – also discovering what programs to offer; how the organization is viewed by stakeholders, constituencies, and others; evaluating the organization and it’s activities, etc.
o Segmenting markets and prospects for different approaches.
o Setting goals for marketing – what it should accomplish overall and for individual programs/objectives, etc.
o Setting institutional strategies.
o Budgeting and resource allocation.
o Communications – getting the word out AND hearing from constituencies.
o Public relations – ensuring the image of the organization, its programs, and mission is favourable to stakeholders and others.
o Evaluation – were marketing goals reached? What needs to be tweaked or modified for the next time?

Question 22

In short, marketing and its subset activities inform and contribute to…

Answer 22

every outreach decision made.

Question 23

Marketing is, in its most simplistic form, finding out what people want/need, telling them it’s available, and then providing it.

Answer 23

One could add it’s also telling them (and others) what was accomplished.

Question 24

In a fundraising context, marketing:

Answer 24

connects donors’ needs and interests with the organization’s programs and services that meet their needs.

Question 25

Having a formal marketing plan, and executing it well while evaluating its effectiveness, is:

Answer 25

a principal part of business success whether an organization is for-profit or non-profit.

Question 26

Creating a marketing plan requires you to think strategically about the organization’s mission and vision, and how it can be accomplished.

Answer 26

It is based on the work you’ve already done to create an organizational mission and vision. It articulates the strategy you will follow in letting others know about your activities, including who those others should be and what they should know.

Question 27

A successful approach to marketing comes from the point of view of the target audiences, answering for them the question:

Answer 27

“What’s in it for me? Why should I get involved/donate/work with this organization? What has this organization done or will it do to affect me in my life?”

Question 28

Successful execution of an effective marketing plan can help an organization:

Answer 28

o Bring awareness of the organization and its work to its target audiences.
o Create a positive environment in its community concerning its mission, vision, and philanthropic activities.
o Get constituent “buy-in” to the strategic plan and development activities.
o Encourage people to get involved through giving donations, volunteering their time, using services, etc.
o Challenge and inspire people – and give them opportunities – to do great things.
o Set the stage for specific fundraising efforts.
o Focus on donor motivations and program/client outcomes.
o Create a link between itself and its stakeholders, constituents, and community.

Question 29

Key Points in Marketing Fundraising:

Answer 29

• Know your audience.
• Bring about a transaction – encourage a transaction that is mutually beneficial.
• Keep the audience focus in mind.
• Do a limited number of things well.
• Communicate activities to target audiences.
• Refine your activities and marketing focus as needed.
• Concentrate your efforts on target audiences with characteristics the same or similar to those already supporting the organization.

Question 30

Elements of a Good Marketing Plan:

Answer 30

• Sets achievable goals.
• Identifies target markets.
• Articulates messages – what are the messages you want to convey, and to which target groups?
• Outlines specific strategies to achieve goals.
• Assigns resources – money, people, time.
• Defines time frames.
• Established indicators of success.
• Determines how progress will be monitored and evaluated.

Question 31

The ideal positioning statement describes, in a few concise words:

Answer 31

how the organization is unique – making its mission simple and compelling.

Question 32

Marketing Online:

Answer 32

• Website – most effective ones are attractive, easy to use, provide open access, and are linked to other sources of info from the organization, including social media access.
• Email marketing – emailed newsletters are a good way to create an ongoing buzz with active volunteers and those who simply want to be kept informed about the organization and its activities.
• Social networking – focuses on creating online communities of people who share similar interests and activities. FB, LinkedIn, Twitter, but the field is constantly changing/evolving.
• Other social opportunities – Youtube?
• Organizational Listings – Canada Revenue Agency, Imagine Canada, Internal Revenue Agency, etc. Ensure organizational info is complete and accurate.
• Multi-channel marketing – using a combo of online and traditional channel for reaching potential audiences allows you to communicate with people in the way that is most appealing to them.

Question 33

Communication is just one part of effective marketing, albeit an important part –

Answer 33

especially in building and maintaining relationships with current and prospective donors.

Question 34

Effective communication requires two-way interaction…

Answer 34

so both sides know a connection has been made, and perhaps acted upon.

Question 35

To be effective, communication must be:

Answer 35

personal.

Question 36

• Effective communication:

Answer 36

o Articulates specific benefits to the individual or group being targeted/
o Uses language and images that are recognizable to the target audience.
o Delivers information through channels the targeted group typically uses.
o Reflects organizational values.
o Grabs the attention of the target audience; is tailored specifically to them.
o Build conviction and desire, promising a benefit if action is taken.
o Motivates the target audience to act.
o Provides a specific call to action, briefly outlining the steps to be taken.
o Typically gets better results if personalized as mush as possible to the target group.
o Keeps donors informed of successes.

Question 37

Key Communications Caveats to Keep in Mind:

Answer 37

• Avoid underestimating the importance of communication. Even if it doesn’t prompt someone to specific action, it helps to build awareness of your organization and its benefit(s) to the specific audience being targeted.
• Avoid overestimating the influence of communication. You’ll never reach everyone, and it won’t necessarily increase your contributions or other forms of support regardless of how much media coverage or other visibility you receive.
• A general message about fundraising, such as a specific campaign, may not be of interest to general audiences or to the media. Set reasonable expectations, and focus attention on targeted communications to specific audiences in specific vehicles of interest to them.

Question 38

Communication Ideas:

Answer 38

Website; social media; press release; calendar notices; feature stories; letters to the editor; op-ed articles; radio announcements; television coverage; proclamations (ask mayor, MLA, etc., to proclaim your organization’s day); logo; marquees, signs; open house and tours; cause-related marketing ventures (a non-profit can gain greater awareness through expanded use of its name and logo); one-on-one.

Question 39

Hierarchy of Effective Communication:

Answer 39

• Top of pyramid = Visit
• Second from top of pyramid = Telephone
• Second from bottom of pyramid = Conferences & Events
• Bottom of pyramid = Print, Broadcast, Online & Social Media

Question 40

Marketing activities are generally the same across all three types of major giving campaigns: annual, planned, and capital.

Answer 40

Sometimes, however, there are specific types of marketing and communication efforts that work particularly well for certain types of campaigns.

Question 41

In marketing giving opportunities you hope to increase contribution amounts.

Answer 41

A more subtle purpose is to keep awareness of the organization front-of-mind for your target audience.

Question 42

Marketing Planned Giving:

Answer 42

Because planned giving is a long-term commitment involving the transfer of assets, it’s a more difficult decision for donors to make. So it’s as much about educating potential donors – and donors, once they’ve made the commitment – as it is about acquiring the funds.

Question 43

Marketing Planned Giving:

Answer 43

• Direct Mail
• Newsletters:
  o key use: showing donors what others have done.
• Will clinics and estate planning seminars.
• Educating other professionals

Question 44

Staff’s role in seeking planned giving donations should be to:

Answer 44

provide info about opportunities, not advice.

Question 45

Marketing Capital Campaigns:

Answer 45

• Personal contacts are far more important.
• Those closest to the organization and its mission are those who will contribute most to the success of a capital campaign.
• Can’t rely on public relations, including media publicity, for the bulk of the campaign.
• Marketing is used primarily as an image- and awareness-building tool for the organization that is successfully accomplishing its goal, etc.
• Publicity for a capital campaign can have significant impact on the organization’s other efforts.

Question 46

Once a campaign goes public, there are opportunities to tell the organization’s story through related story ideas:

Answer 46

i. Press releases – covering various aspects ot the campaign, including who is on the campaign team (especially if prominent in the community), announcement of large gifts, public endorsements by prominent individuals; work of volunteers in accomplishing goals, etc.
ii. News conferences – if a large gift or other campaign “event” warrants this level of attention by the media (and must be of interest to readers/listeners of the media you target).
iii. Staged events – ground-breaking, mortgage-burning, cornerstone-laying, ribbon-cutting, etc.

Question 47

The role of media relations in a capital campaign is all about compelling interest to viewers/listeners/readers.

Answer 47

Tell the story from the point of view of how what you are doing will benefit the media outlet’s audiences and their community.

Question 48

When it comes to management functions, the responsibility of staff lies with:

Answer 48

implementing the policies and programs set by the board.

Question 49

Staff Management as it Relates to Development:

Answer 49

i. Define optimum structure, positions, roles, and responsibilities for the development staff and their working relationships with the other parts of the organization.
ii. Evaluating existing staff’s area of expertise, skills, and knowledge in terms of the optimum structure, organizational plans, and needs.
iii. Developing a plan for acquiring of new staff as organizational resources permit.
iv. Recruiting for available positions.
v. Processing and interviewing applicants.
vi. Orienting new staff to aid their success.
vii. Training staff to continually enhance their skills and effectiveness in meeting organizational goals.
viii. Building and enhancing teams, a critical aspect of development work.
ix. Evaluating staff within the context of performance expectations and organizational needs.

Question 50

Defining an Effective Staff Structure:

Answer 50

-Evaluate resources in line with organizational goals and budget constraints, allocating staffing accordingly.
-Define the optimal structure, roles, and responsibilities for the development team, considering their interactions with other departments.
-Assess the development program’s history, current budget, and existing staff structure to inform decision-making.
-Identify any special skills required to meet development goals, and evaluate their availability within the current staff.
-Strategize on acquiring necessary skills, including through new staff positions, to support growth in the development area as resources allow.

Question 51

Evaluating the Expertise of Existing Staff:

Answer 51

• Staff expertise, skills, knowledge, via..
  i. Staff performance/evaluation records.
  ii. Department success in meeting goals.
  iii. Interviews with current development staff.
  iv. Interviews with others as appropriate (other staff, board and committee members, donors, etc.).

Question 52

Planning to Acquire New Staff:

Answer 52

-Identify skills gaps within current staff.
-Develop position descriptions, qualifications, and salary ranges adhering to organizational policies and budget constraints.
-Justify new positions’ necessity and their impact on development program success, outlining a recruitment process.
-Establish compensation in line with organizational practices and ethical guidelines.
-Obtain leadership approval for implementing new positions within a specified timeframe to maintain financial stewardship.

Question 53

The success of a new employee is often based on how well the person is oriented to the organization, the job, and to the rest of the staff, as well as to the job expectations.

Answer 53

Therefore, time devoted early on pays off later.

Question 54

Before a new employee starts work, ensure a comprehensive orientation program is designed, especially if a senior position.

Answer 54

The orientation should include an overview of the organization (mission and history, strategic and operational plans, budgets, development goals, org structure – including board structure and leadership, key programs/services, constituents/stakeholders, staff rolls and responsibilities, issues/concerns/other relevant factors.

Question 55

Making a commitment to ensure that all employees have access to learning opportunities/professional development can enable them to…

Answer 55

do their jobs better and more effectively, as well as aid in retention. Commit to an ongoing practice of providing internal and external learning opportunities.

Question 56

There are a variety of ways learning opportunities can be provided to staff:

Answer 56

o Internal resources (staff member(s) training others.
o External resources brought to the organization.
o Sending staff to workshops, seminars, conference, etc.

Question 57

Staff should be encouraged to out, identify, and share learning opportunities with other staff.

Answer 57

Staff members that participate in external training activities should share what was learned at a staff gathering.

Question 58

Building and Enhancing Teams:

Answer 58

The ability to function effectively and appropriately in teams in a critical ability for anyone working in the field.

Question 59

Creating/maintaining effective teams that work well together can only be achieved through:

Answer 59

Building mutual respect for each individual, constant communications, sharing of information and ideas, and open discussion of issues and possible solutions.

Question 60

Schedule staff meetings on a regular basis

Answer 60

discuss progress, accomplishments, upcoming events, status of various efforts, issues and concerns, organizational news, and other activities.

Question 61

Obtain staff buy-in for a team norm concerning disputes between individuals:

Answer 61

if there is a dispute between staff members, they will first attempt to resolve it themselves. If they are unable to do so, they will bring it to the attention of the appropriate supervisor(s) for assistance in resolving it.

Question 62

If a supervisor observes disruptive behavior caused by a personality conflict(s), it should be:

Answer 62

dealt with immediately (in private, not in front of other staff).

Question 63

Focusing the agenda of a staff meeting on the creation of a set of team norms –

Answer 63

agreement reached by consensus regarding how the team will work together – can be extremely helpful.

Question 64

Regular performance evaluation gives staff members feedback about how well they’re meeting/exceeding the expectations and needs of the organization.

Answer 64

It also offers the opportunities to reward success, define new expectations, and reinforce teamwork.

Question 65

Develop a standard, organizational-wide evaluation system. Components should include:

Answer 65

o Fairness.
o Performance measurements against previously defined objectives.
o Contribution to achievement of departmental objectives.
o Comparison with the position description.
o Willingness to take on additional responsibilities and/or initiate new projects/ideas that support the organization’s goals.
o Ability to work successfully within a team.
o Quality of relationships with other parts of the organization and with key organizational stakeholders.
o Whether professional development opportunities have been taken advantage of according to the individual’s learning plan,
o Level of participation in relevant professional organizations.

Question 66

Be familiar with local/provincial/federal employment laws concerning handling problem employees,

Answer 66

and ensure all requirements are met.

Question 67

Guide to Effective Meetings:

Answer 67

• Before the meeting:
  o Have a purpose; Determine objectives; Set the time, date, and location; Develop the agenda; Prepare background materials; Send the agenda and any background materials – as far ahead as possible (at least one week).
• During the meeting:
  o Start on time; Set a positive, productive tone for interaction; Review the objectives and agenda; Ensure completion of each item; Allow time to review the meeting; Adjourn on time.
• After the meeting:
  o Publish minutes and action items – within 24 hours of meeting.

Question 68

Before any need of the organization are outsources, certain parameters must be in place:

Answer 68

o A clear understanding of the organization’s real needs that are to be outsourced.
o The timeline, budget for the consulting process, staff oversight roles and responsibilities, and desired outcomes or products.
o Agreement among staff and leadership that the organization will provide the consultant with critical information and access.
o A process to ensure the consultant will be informed of and understand critical issues faced by the organization.
o Assurance that the organization as a whole is committed to the consulting process and it’s outcomes; that appropriate staff and/or volunteers will follow through as required on reports and recommendations, particularly on any actionable items.
o Agreement to spend the necessary time to ensure success of the consulting process.

Question 69

Programs and Activities Suited to Outsourcing:

Answer 69

• Prospect research/ID.
• Development audit or assessment of current development operations.
• Facilitation of planning, including development planning and overall organization planning.
• Direct-mail operations.
• Communications & Marketing program activities – specific aspects or an entire marketing program.
• Planned giving program.
• Permanent fund management.
• Institutional readiness
• Campaign counsel for management and implementation of capital/major fundraising campaign.
• Information technology and other technology matters – software, equipment, etc.
• Proposal development for foundation and corporate research.
• An organizational effectiveness assessment.
• Annual Campaign.
• Board & Staff Training.
• Special Event Planning.
• Executive Search.

Question 70

Consultants bring valuable objectivity and technical expertise to projects, based on their extensive experience. Their effectiveness is often enhanced when they are not direct participants in the project. The arrival of a consultant can serve as a demarcation point, providing momentum and energy to the project.

Answer 70

In addition to training, motivating staff, and strategic planning, consultants’ objectivity, experience, and constituency analysis make them excellent writers or editors for fundraising materials. Their knowledge of effective language used in similar contexts is particularly valuable in creating new documents.

Question 71

Selecting a fundraising consultant is akin to choosing any professional service provider.

Answer 71

The organization seeks evidence of relevant previous work, success, credentials, and training, along with feedback from others who have had successful experiences with the consultant. Key criteria include credentials and experience.

Question 72

The candidate for consultancy should indicate compliance with applicable ethical codes of performance…

Answer 72

either in printed promotional materials or in direct conversation with the organization seeking help.

Question 73

Materials & Intellectual Property

Answer 73

In consulting relationships, organizations should address ownership concerns regarding materials brought to or developed during the project to avoid misunderstandings and conflicts.

Question 74

Managing the consulting relationship for success:

Answer 74

• The basis of a good partnership is a mutually acceptable letter of agreement, or contract, which articulates the scope of the work being done.
• For the organization’s due diligence in managing the relationship, assign a single primary staff contact who will oversee the work and can bring in other staff and/or volunteers as needed for the projects.
• Clarify the responsibilities of the consultant and of the staff contact to ensure nothing slips through the cracks.
• Determine who will oversee the project (staff contact or someone else) and who will be responsible for follow-up and follow-through to ensure appropriate action is taken on results/recommendations.
• Decide how the work will be monitored and evaluated, on what basis, and by whom.

Question 75

In consulting discussions, it is crucial to clarify the fee structure and precisely define the expected deliverables, including the estimated timeframe.

Answer 75

Various fee structures exist, such as per diem rates or overall contract prices with scheduled payments. Organizations should prioritize specifying deliverables in written contracts, adhering to ethical guidelines that discourage working for a percentage of fundraising income. Flat fees are recommended for fundraising activities, ensuring clarity and fairness.

Question 76

Consultants should not be expected to bring new major donors based on their prior relationships;

Answer 76

however, their knowledge can aid the organization in establishing its own connections.

Question 77

Consultants play a vital role in an organization’s success, potentially serving as integral members of the fundraising team.

Answer 77

Selecting and learning from consultants can be rewarding, expanding potentials and projections for a nonprofit with an inspirational mission.

Question 78

Bottom Line: Outsourcing can be a highly effective way to overcome staffing challenges or take on special projects you might not otherwise be able to do.

Answer 78

The key is open communication, consensus on the scope of work, active monitoring, and a partnership/team perspective.

Question 79

Elements to consider when determining the budget of a capital campaign:

Answer 79

• Size of the goal.
• Method(s) of solicitation.
• Campaign method.
• Geographic reach of the campaign.
• Percentage of institutional resources committed to regular fundraising versus committed to the campaign.

Question 80

A budget for conducting a capital campaign is typically 10-12 percent of the campaign goal itself (under $10 million)

Answer 80

and 4 percent for a well-established organization with a goal of $25 million or more.

Question 81

Leadership Styles:

Answer 81

• Positional: Leadership that comes with the job title
• Tactical: Organized and decisive leadership to accomplish a goal. It is focused on balancing organizational needs with the needs of staff in order to gain desired results.
• Collaborative: Leadership that emphasizes shared ownership of the goal, assets, and results, and thus brings more people into decision-making roles in order to accomplish the organization’s mission.

Question 82

Budgeting:

Answer 82

• The budget is a multi-year investment strategy for organizational resources.
• The budget implies a long-term growth strategy with a rate of return at minimum that exceeds US$1 per dollar invested and ideally realizes a rate of US$10-$20 per dollar invested.

Question 83

When creating a budget, essential questions to ask are:

Answer 83

o What are the spending priorities as they relate to the mission?
o What revenue is reasonably expected based on current organizational capacity and the philanthropic environment?

Question 84

Essential budgeting considerations include:

Answer 84

o Organization’s mission and priorities.
o Sources of revenue.
o Gift projections (based on prior year revenues).

Question 85

Common budget evaluation terms:

Answer 85

o CTRD: Cost to Raise a Dollar: A measure of efficiency that expresses the total amount spent to raise each dollar in support.
o ROI (Return on Investment): A measure of fundraising effectiveness. It represents the return on each dollar spent.
o Net Return: Gross fundraising revenue minus gross fundraising expenses.

Question 86

Marketing and Communications for Fundraising:

Answer 86

• Exchange is at the heart of mutually beneficial relationships (between people, organizations. governments, etc.).
• Marketing facilitates and assists in the exchange process.
• For a nonprofit, marketing should be an organizational mindset. Each member should consider the organization from an outsider’s perspective.

Question 87

Marketing, for a nonprofit, centers on three specific areas:

Answer 87

o Analyzing the market in which the organization conducts activities,
o Establishing goals, objectives, strategies, and tactics by which the organization will deliver its message to its constituencies.
o Creating and managing a budget and system of evaluation of marketing goals and outcomes.

Question 88

Methods of Market Research:

Answer 88

o Quantitative
o Qualitative

Question 89

The following components are necessary to create and execute a fundraising plan:

Answer 89

• Case for support.
• Needs statement.
• Internal & external research (SWOT analysis, market research, focus groups, donor giving history & trends, etc.).
• Organizational strategic plan.
• Organizational budget.
• Determination of fundraising vehicles.
• Donor database.
• Stewardship plan.
• Organizational chart with assigned roles for staff and volunteers.

Question 90

Measuring Organizational Impact:

Answer 90

• Nonprofits make an impact on their communities both in the short- and long-term. Often long-term impacts are harder to measure and define.
• Typically, funders want to see the most measurable impact of support and that is usually defined by outcomes.
• Outcomes should be articulated in specific terms, defining what took place, over what span of time. and what change was made to/for the target community or participants.

Question 91

Human Resources Best Practices:

Answer 91

• Provide Security to Employees: This includes both workplace safety and employment security and is an essential component in staff retention.
• Hire the Right People: Find people with the best combination of ability, trainability, and commitment.
• Self-Managed Effective Teams: The organization should create an environment where teams thrive, are encouraged to share ideas, and work well with other teams.
• Fair and Performance-Based Compensation: Using a mix of organizational performance rewards along with individual performance rewards keeps individuals motivated to maximize their own salary outcomes while encouraging a sense of ownership in the outcomes of the organization.
• Provide Relevant Skills Training: Budget for and encourage both relevant skills training and life-long learning
• Creating a Flat & Egalitarian Organization: Organizations should uphold the value of all members of the team and consider policies that emphasize equal respect.
• Make Information Easily Accessible: Open communication projects trust and enhances morale It also promotes efficiency and cooperation between teams.

Question 92

Organizational Development Concepts:

Answer 92

• Organizational development is the application of behavioral science to help organizations improve systems, teams, and individuals.
• The primary goal is to help people function better within the context of the nonprofit organization.
• It seeks to align human behavior with that of the organization’s mission and goals.
• The lines between human resources and organizational development are often blurred. However, OD tends to function at a higher level than employee engagement and seeks to improve the total system and outcomes both inside and outside the walls of the organization.

Question 93

The Role of Fundraising in the Strategic Planning Process:

Answer 93

• The strategic plan helps clarify the direction the organization will go in pursuit of its mission.
• The strategic plan will also define what steps the organization will take to execute its philanthropic goals
• Fundraising exists to serve those philanthropic goals, not as an end to keep the doors open.
• Fundraising is a management function and should be regarded as such in both the strategic plan and in the leadership structure of the organization.

Question 94

Development staff are critical to the strategic planning process. Input from development should include:

Answer 94

o Historic fundraising results.
o Realistic goal setting and revenue expectations.
o Growth and cultivation strategies.
o Leadership and vision casting.

Question 95

Effective strategic planning for an organization must initially include:

Answer 95

Engaging key stakeholders in the planning process.

Question 96

The most common reason for straying from an organization’s mission is:

Answer 96

Deterioration of leadership.

Question 97

Why is marketing most important to an organization?

Answer 97

It focuses on the why, the context, and the meaning of the mission.

Question 98

The first step in planning for effective fundraising data management systems is based on the organization’s:

Answer 98

Strategic plan