Nathan Mayo
Network Director
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Once leaders start to understand the difference between relief and development, they naturally look for ways to address root problems in clients’ lives through programs that integrate classes, relationships, and other opportunities for personal growth. However, since development isn’t something that can be done “to” someone, the person for whom the programs are designed must be willing to embrace the opportunity.

Individuals who aren’t ready to commit to a program will often squander resources and not experience any positive impact. Maybe this means dropping out of a class after a few sessions, or receiving a significant amount of assistance designed to help them get out of a financial bind, only to make choices that put them in the same bind the following month. This is not only frustrating to ministry leaders, but it is demoralizing to clients who may feel like they will never see change. Furthermore, it derails other clients, who would have succeeded, but get sidetracked by seeing the apparent failure of the less committed.

We should optimize our programs to maximize the chance that people will stick with them. There are plenty of techniques ranging from providing text message reminders to working through transportation and childcare barriers. But we also need to make sure we have the right people in the programs to begin with—people who are most ready to benefit from change.

One intuitive approach is to use a screening process consisting of application forms and interviews to vet people’s motives. This can be beneficial, but even the best interviewer will be hard-pressed to accurately assess a stranger’s motivation and commitment. Not to mention that the screener will also have to be the “bad guy” and make a subjective determination of whether someone is allowed in the program.

There is another way. It’s a way that reveals critical information to the charity and simultaneously gives the client more control over his or her situation. It was also memorably illustrated by the rock band “Van Halen.”

Van Halen pioneered many techniques in the modern concert. Their shows integrated unprecedented quantities of lights, electronics, and other heavy equipment. For a Van Halen concert to succeed, venues had to be ready. To that end, Van Halen had a 53-page contract specifying the hundreds of minute details necessary for the setup. On one page of the contract, they even detailed the snacks which needed to be ready for the band members backstage – including a bowl of M&M chocolate candies with a note that all of the brown M&M’s needed to be removed from the bowl.

This was more than rock band diva behavior. This was a brilliant application of “self-selection.” When the Van Halen band manager showed up on site before the concert, one of his first stops was the bowl of M&Ms. If the venue had done a good job and followed the contract thoroughly, the M&M’s would be as ordered–no brown pieces present–and more importantly, the wiring, speakers, stage and the rest would likely all be to specification. If the brown M&M’s were present, it meant that the venue was probably not ready to rock. There were only a few hours to go over everything with a fine-toothed comb and ensure that the other details weren’t messed up, which could result in a dangerous incident or injury.

The venue received clear instructions and then signaled through their own actions whether they were “ready to rock.” In the metaphor, clients are like venues. Some are “ready to rock” and some not, but how can we get them to signal to us whether they are?

Van Halen venues had to show that they were ready, willing, and able to follow a detailed contract. Clients who are ready to develop must show that they are willing to make at least some effort to improve their situation, given the opportunity and ample encouragement. Like Van Halen, we can create a deliberate context for “self-selection.” Instead of a lengthy contract and chocolate candies, we can use the principle of “challenge.”

Challenge is anything that requires effort on the part of the client. This can be something that helps only them, such as goal setting and achievement. It can be something that allows them to help others outside of the program, such as community service. Alternatively, they can “pay it forward” by volunteering for the nonprofit running the program or paying a service fee. Many more examples are included in the excellent programs we feature here. In general, the level of challenge is scaled against what the client is receiving from the program. (It isn’t full compensation but covers some fraction of what they receive.) For a budgeting class or food co-op, it doesn’t have to be very large; for a residential rehab or college scholarship program, it would need to be more significant. As your program evolves, you can tweak the level of challenge until you find that the majority of the people entering the program are ready and able to benefit from it.

There are other reasons to offer an up front challenge, such as the fact that creative work or goal setting tends to expand someone’s sense of self-worth, but the self-selection aspect is also critical. People who are ready to grow will be willing to put forth effort on the front end. 

When a handout program becomes more developmental and starts integrating challenge, you will usually see the number of clients served decline–often by half or more. While this fact is scary to nonprofit leaders, the clients that keep coming are not a random sample of the original crew; they are a self-selected bunch who are more likely to benefit from your programs. Even though fewer people are coming, more people are meaningfully helped, because you start with the right people in the room and are then able to invest more relational and financial resources into helping them. In fact, it’s common for total results to improve–not just “average” results, but the total number of people who leave poverty increases even as the total number of “clients served” decreases.

“Rock and roll” is relatively new, but charity self-selection through challenge is ancient wisdom. Historian Marvin Olasky points out that early American charity workers frequently used what they called a “work test” to determine whom they should assist. For able-bodied men, this was typically splitting firewood in exchange for food or other assistance. In biblical times, God commanded the Israelites to leave some of their crops unharvested so they could be “gleaned” by the poor and the travelers (Leviticus 19:9-10). The fact that they left crops in the field rather than distributing bread meant that there was a lot of work a poor person had to do to harvest the grain and process it into food. In some ways, it was even harder than it would have been to work one’s own fields, since the grain left standing was more widely scattered. No one would have taken advantage of this system because they were too lazy to work their own land; only those with legitimate circumstantial need would have self-selected this “gleaning” form of charity.

What does challenge mean for the people who aren’t ready? We can continue to love, pray for, and engage them in conversation, but we cannot force them to grow–and it is both unhelpful and arrogant to try. 

Given our limited resources, the most successful programs will invest heavily in people ready to embrace change. The good news is that we don’t need to be clairvoyant to determine who those people are. We can let them tell us, by offering them a challenge. Those who rise to the challenge are the real rock stars.

 


Network Members: For more information on the topic of challenge in charity, check out the True Charity Takeaway titled The Earn-It Model and the Earn-It Program Model Action Plan.

Non-Members: Learn more about Network membership at truecharity.us/join.

 

 

Nathan Mayo
Network Director
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What gets measured gets managed—even when it’s pointless to measure and manage it, and even if it harms the purpose of the organization to do so.” This classic quotation from business scholar V. F. Ridgway provides a lot of insight about what’s wrong with the nonprofit world’s obsession with measuring overhead rates and hints that we would be better off managing to a different measurement. 

It’s not controversial to state that organizations with adequate staff, better training, better facilities, better technology systems, and salaries that reward good work tend to produce better results. In business, having “state-of-the-art” tools is lauded—in the nonprofit world, all those things are considered overhead. “Overhead” makes nonprofit leaders cringe. “Overhead” is something you must apologize for. 

Nonprofit culture embraces a “Valley Forge” mentality. Like Washington’s Continental Army, we’re proud of being overworked and underfunded. However, this approach often doesn’t lead to very good outcomes in the present or in history; desertion rates in the continental Army were as high as 20%.

The effect of this culture in charities is something called the “Nonprofit Starvation Cycle.” This phrase, coined by the Stanford Social Innovation Review, refers to relentless slashing of general administrative and fundraising costs (i.e. overhead) and ending up with fewer resources for programs over time. 

This starvation cycle results from a back and forth between nonprofits and funders. Funders (both individual donors and granting organizations) have unrealistic expectations about what overhead rates should be; nonprofits amplify those flawed expectations by scraping by without complaint and underreporting their expenses (there are a lot of accounting gimmicks which IRS rules allow). This vicious cycle drives continual underinvestment in the infrastructure necessary for healthy organizations and high levels of impact. 

To make matters worse, not only does the overhead metric encourage underinvestment, it also encourages inefficient investment. Organizations that rely heavily on volunteers and in-kind donations for their programs tend to pay their remaining staff to manage the broader organization and solicit for those in-kind donations. This can be a highly effective model, but it looks bad on paper when “low overhead” is the goal. Since volunteers are unpaid, this means most of the money is being spent on management and in-kind donations solicitation (overhead). So an organization that figures out how to do twice as many programs with their limited resources ends up being forced to report a higher overhead rate on their tax returns.

To find an alternative, we must understand the reason why donors care about overhead rates in the first place. 

Donors are concerned about overhead because they are trying to do the most possible good with their charitable dollars. The desire to get the most “bang for buck” is sensible and is the same desire that guides how people make all of their purchases. However, in consumer decisions, no one cares about the metric of overhead. When people decide whether to buy an iPhone or an Android device, they don’t compare overhead rates. They look at features, reliability, and results.

When smart consumers become smart givers, they would probably rather look at metrics around results. Unfortunately, most nonprofits don’t report outcomes, instead they report quantity of activity (outputs) and overhead. 

The problem is that overhead rates are a poor proxy for results. The fixation on overhead makes the erroneous assumption that all programs are equally effective. If all programs are equally effective, then all that matters is the percentage of money that makes it to programs. But if all programs are not equally effective, then the efficacy of the program must be calculated alongside the overhead rate.

Think about it this way. Imagine you could give a $10,000 donation to one of two organizations, both of which serve youth in poverty. If all you know is that one has a 10% overhead rate and one has a 40% overhead rate, your decision is easy—the lean nonprofit will get your gift. If you knew more about their results, would you change your mind?

One organization has a simple free coat and school supplies giveaway model. Most of their funding goes to buying those giveaway items, which are considered program expenses. Overhead rate: 10%. Of the $9,000 that makes it to programs, they probably can’t track what happens as a result, but let’s say we happen to know that the $9,000 in free things will translate into one kid who leaves poverty. 

The other organization has a very staff-intensive mentorship model. They spend a lot on staff training, outcomes measurement systems, they have a good manager to coordinate case management, and have a nice facility to make kids feel safe. Overhead rate: 40%. Of the $6,000 that makes it to programs, their outcomes data shows that will result in four kids who leave poverty.

With the low-overhead organization, your gift would help one child escape poverty. In the high-overhead organization, your gift would help four children escape poverty. Once again, your choice is easy, but it just happens to be the opposite conclusion you would have come to by looking at overhead rates alone.

If we start measuring results, does that mean we can stop worrying about overhead? Absolutely. Overhead was only ever a very crude approximation of effectiveness. Generations of managing with the primary goal of limiting overhead have resulted in half-starved nonprofits that are significantly less effective than they could be. Measure results, forget about overhead.

The good news is that more major funders are interested in outcomes than ever before. A grant or major donor will almost certainly ask you about outcomes. Even smaller donors can be easily educated. If someone asks about overhead, you say “by overhead, I presume you’re trying to figure out how much good your dollars will do here. I can give you an even better way to gauge that. Let me tell you about the impact per dollar of our programs.”

Measuring outcomes gives you the antidote to the nonprofit starvation cycle. By showing funders the numbers that matter, you can stop chasing a metric that rates you higher when your organization is starving. Manage to outcomes, and you will notice that as the people you serve flourish, your organization can flourish alongside them. 

 

Measuring outcomes is critical, but it’s tough to know where to start. We’ve got you covered! True Charity Network members can access our Outcomes Measurement Toolkit for a step-by-step guide on how to measure outcomes in your organization. 

 


This article is just the tip of the iceberg for the practical resources available through the True Charity Network. Check out all of the ways the network can help you learn, connect, and influence here.

Already a member? Access your resources in the member portal.


 

 


Travis Hurley
Director of Advancement
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Whether the sentiment is new or just new to me, more and more nonprofit leaders are looking at ways to eventually become “completely self-sustaining.” By this, they mean that they would like to build enough of an endowment or revenue generation programs that they no longer need to rely on donors.

I believe this is a mistake for most nonprofits. It is true that businesses can do much good without reliance on donations, and there may be some social enterprises which would be better with a non-donor driven business model. However, for the typical nonprofit, the desire for donor independence misunderstands the foundational nature of the relationship. The proper relationship is one of interdependence. Much like the relationship between bees and flowers, where bees pollinate the flowers and the flowers feed the bees, both donors and nonprofits benefit from their connection. 

The pressure to sever this tie often stems from a faulty view of fundraising that sees it as a necessary evil to be eradicated as soon as possible. I see fundraising as part of the five essential ministries listed in Ephesians 4:11-13: apostles, prophets, evangelists, pastors, and teachers. Biblical fundraising can rightly be viewed as a teaching ministry opportunity to be honored, not eliminated.

To be clear, efforts to become partially self-sustaining should be encouraged. If a nonprofit is already diligently building healthy relationships with donors, it may be able to generate additional revenue through income-generating social enterprises. By growing the pie, they create financial resilience and make donors more confident. They also create opportunities to empower clients to “pay it forward” and develop useful skills, especially those dealing with mental or physical challenges and who are unable to perform duties in a manner that adds to the revenue base of a self-sustaining social enterprise.

But should a charitable organization become completely self-sufficient? I don’t think so. Here are three reasons why nonprofits should maintain at least partial dependence on support from a donor base:

 

1) It helps a donor do good deeds

Doing good deeds is what donors want to do, understanding the principle that “it is more blessed to give than to receive.” By maintaining at least a partial reliance on donors provides them with opportunities to partner in the work when volunteering their time may not be an option. Often the time invested by a donor in generating resources to steward for charitable purposes precludes their own ability to volunteer time and energy onsite themselves. Their finances are how they partner. To eliminate the need for their investment is to rob them of opportunities to partner with the nonprofit in doing good work.

 

2) It helps an organization stay on mission

The matching of a donor’s passion with a nonprofit’s mission is a beautiful thing. When it’s not “your money,” you’re more likely to be conscientious about the results you report to the one who gave it. A mission that measures outcomes and is able to report those to a donor who truly wants to see a return on his or her investment in the work is likely to have some exciting donor meetings every year. And sharing outcomes doesn’t have to be all about “wins.” Sharing the failures and discussing lessons learned gives an opportunity for the donor to know the nonprofit better and speak wisdom into it, too. Maintaining at least partial dependency on donors heightens a nonprofit’s fiscal responsibility which helps the non-profit stay on mission.

 

3) It helps both parties dream bigger

If a nonprofit’s current budget can be met by their own social enterprising efforts, and donors are no longer needed but want to be part of the work, somebody isn’t dreaming big enough. The vision of an organization can be unleashed by a mutually dependent relationship between the ministry and its donors.

 

By maintaining a mutually dependent relationship donors get to do good deeds, the organization is more likely to stay on mission, and both parties get to dream bigger. There’s a lot to like about that dynamic, so why work to eliminate it?

 

 


Nathan Mayo
Network Director
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Knowledge is usually a necessary first step to change actions — though it is often not sufficient by itself. While many nonprofits provide classes and training opportunities, we owe it to our clients to ensure that they are really learning. One of the most basic tools to allow you to gauge progress for a developmental class or program is a pre and post test. 

If you’re not using a curriculum with pre-made testing, you’ll have to design the test yourself. Here are five checks to ensure your test does what you need it to.

 

1) Ensure that your test focuses on your key learning objectives.

If you have an hour or two of instruction, you’ll probably only be asking 5-10 questions at the end. You need to ensure those questions are representative of the most important content covered. If you only test minor facts and technical terms from the content, you haven’t proven that clients have learned what matters. In general, you want to avoid testing vocabulary. Sometimes vocabulary is important, but usually, the concepts are more significant.

Start by asking yourself, “If learners remember how to do only a few things a year after the course, what do I want them to be?” Those elements should be your key learning objectives, you should emphasize them in the content, and test for them.

 

2) Determine the level of learning required—recognition vs. recall.

Recognition is a lower level of learning than recall. You may recognize a woman in the store, but not be able to recall her name. Multiple choice and true/false questions test recognition of the right answer. “Fill in the blank,” essays questions, and practical demonstrations test recall. Both levels of learning can be appropriate to test, but make sure you identify what level of learning you need for your learning objectives. 

For example, if you are trying to help a learner with vehicle maintenance basics, he doesn’t need to be able to draw a coolant temperature warning symbol from memory, he only needs to recognize it when he sees it.

On the other hand, it would be useful for him to recall from memory that when he sees the coolant temperature warning symbol, he should immediately pull over and turn off the engine.

Thus, a multiple-choice question is appropriate for the symbol identification and a short answer question is best for the action steps. There are higher levels of learning than recognition and recall which you can also explore—they are all mapped out in Bloom’s Taxonomy. This includes things like synthesizing multiple pieces of new information to navigate an unfamiliar scenario.

 

3) Ensure the test is difficult enough to gauge learning

When you are designing your test, give it to a few people who you think could benefit from the content of the course. If the average grade on a pretest is in the 70-100% range, then either your students already know your course material, or your test isn’t difficult enough to gauge it. Ideally, a pre-test will return results in the 0-70% range. If it’s too easy, consider changing some of the recognition questions to recall questions, or making the multiple-choice answers more difficult. You can also focus on any questions that nearly everyone gets right on the pre-test. Those questions should be replaced.

Once you establish that it is not possible to get a high score on your pre-test without knowing the material, then you can use the pre-test to gauge whether a prospective learner could benefit from the test. This ensures you don’t ask people to sit through a class they are unlikely to benefit from. Alternatively, you could ask that person to assist in teaching the class by leading discussion or practical exercises. Often, people can take their knowledge to the next level when they are asked to teach what they know.

 

4) Make the pre and post tests comparable

The easy way to make a pre and post test comparable is to make them identical. Some people object that this makes it easy to only focus on the answers to the pre-test and ignore the other material in the course. You can mitigate this by not letting learners keep their pre-test for reference and not going over the correct answers. Additionally, if the test focuses on the key learning objectives, then people’s hyper-focus on the pre-test topics is not necessarily a problem. 

However, if you don’t wish to have an identical pre and post test, they should be very similar. Perhaps you focus on different aspects of the same basic piece of information for each question. Additionally, in order to ensure that the difficulty level of the two tests is identical, you should rotate the order of the tests. Give half of the learners version A at the beginning and version B at the end. Give the other half of the learners version B at the beginning and version A at the end. If the tests are comparable and your sample is large enough, pre-test and post test average scores should be about the same regardless of the order of the versions. If version A or B is much easier than the other, it will become obvious in the averages over time.

 

5) Ask about attitude

Remember that knowledge is not the only thing that counts. Many times, less tangible attributes like confidence, values, and attitude have a larger influence on a person’s results. Someone could “learn” something, but disagree with it. Save a few questions to test for these critical attributes and see if your course moves the needle on something other than knowledge. 

For example: “on a scale of 1-10 (with ten being “Extremely Confident”) how confident are you that you can manage your money well?”

Ask questions about attitude in a way that tries not to lead people to your preferred answer. Use neutral language and ask learners for their opinion on issues.

For example: “Please provide your opinion on the statement, ‘Kids should make most of their own decisions without parental direction.’ Do you strongly agree, agree, neither agree or disagree, disagree, or strongly disagree?”

You can determine someone’s values by using a scenario-based question that forces prioritization among multiple good things.

For example: “Imagine that you discover your spouse has committed a non-violent crime. In your opinion, which of the following values is most important? Loyalty – help protect your spouse from retribution; Integrity – encourage your spouse to turn him or herself in; Mercy – overlook the incident and don’t bring it up.”

 

All of these five approaches are good ways to ensure your classes translate instruction into meaningful improvements in people’s lives.

 

 


James Whitford
Executive Director
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“Dependency is merely slavery with a smiling mask.” Years ago, I read this line in The Tragedy of American Compassion by Marvin Olasky. I’ve never forgotten it. More than its shocking tenor, I have remembered it because I’ve experienced it. For more than twenty years, I’ve been fighting poverty and have come to realize that the fight in America is less about filling a gap in basic needs and more so to help people find freedom from a government that promises to perpetually meet them. It is a noble cause to help people find their freedom from dependency, even from a benefactor who wears a “smiling mask.” And now, more than ever, we should be those liberators. According to the Urban Institute, 1 in 5 Americans are dependent on some government welfare program. And, the risk for even greater government dependency is on the rise with the recent 25% increase in the Food Stamp program (SNAP) and an expanded school lunch program, free child care, and an extension to the already expanded child tax credit—all in the Build Back Better Act now threatening to become law by the end of the year.

What can we do? It is a daunting task to consider how to influence policy and policy makers. Although I think a focus on policy-driven welfare reform is vitally important, some easier wins may come through a lighter lift by turning our attention to our local community; more specifically, the people we help who are struggling in dependent poverty. Here are four keys we’ve found effective in helping them to get free.

1. Relate

“You don’t know what it’s like!” I’ve heard it, and it’s true. I’ve never been dependent on welfare. I can’t personally relate to the fear of leaving a government program—a fear that has been conveyed to me many times by others. However, I do know people who can relate and who have broken free from the fear that once tethered them to the state. Bring them in. Ask them to participate in case management meetings or to share their inspiring story with a group. Another option might be to share a video of someone’s success story, like this one of April.

Don’t forget that the ability to relate doesn’t just occur through experience; it can occur by building real relationships, too. Through long-term relationship, we were able to help April and many others find their freedom from government dependency. In that relationship, we both encouraged and educated. I recall one man who received a government-paid cell phone in the mail at our mission. I shared with him a copy of a cell phone bill that had a typical “universal service fee.” After learning that this is the fee passed on to consumers from a government tax on cell phone companies to pay for his “free” phone, he lost interest in the state’s program. On other occasions, I’ve shared with groups at our mission the truth that the government doesn’t have any money of its own. It all comes from other people. Many have turned away from government programs when they realize this truth. Why did they listen? Because we build relationships with people, and they know we really care.

2. Replace

In part, the benefit of building relationships is that it expands the person’s social capital. The greater one’s social capital, the less the demand to remain dependent on some far-removed support. Building confidence that the state’s support can be replaced is important. By no means should we think to compete by handing out goods and services like the government. However, when it comes to meeting basic needs of people, it’s important to build trust that those can be replaced by a compassionate supportive community.

There are two things that we’ve done that have been helpful here. First, we have intentionally built greater capacity to meet those basic needs. For example, we expanded our food pantry to become a client-shopping market with the basic food groups and evening hours. It was a lot of work, but if we want to help people break free from food stamps, we must provide some alternative. Consider how you might do the same. Second, develop a resource listing of private charities in your area, be supportive of them, develop relationships with them and refer people to them. We host a fundraiser event every year that raises thousands of dollars for other private charities in our city. These like-minded missions are much less likely to sign people up for welfare, and by linking arms, you increase your capacity and your clients’ confidence to break free!

3. Resist

Hopefully, as you work to build both a culture of relationship as well as capacity to replace some of what welfare offers, you’ll couple those changes with resistance to do what is so common in organizations like ours: sign people up for welfare programs. It may be what you’ve always done, but unless you feel that being dependent on government help is better than being free from it, you should resist pointing your clients toward it as a solution for them. At our mission, every staff member and volunteer signs an agreement to always refer people in need to the closest source of private help before referring them to any state-funded program. Sure, there are times when we’ll have to point people toward government help, but we certainly resist doing so. You can, too. This could be built into some of your program policies. For example, one of the admission criteria for our long-term residential recovery program is “no welfare.” Food stamp cards are turned in, government subsidized phones are turned over, disability pursuits are abandoned. Implicit in your resistance to sign people up for government help is your belief in your clients’ ability to succeed without it. What a great thing to communicate— “You can do it!” 

4. Recognize

In a day when dependency on a government program is not only rarely discouraged, but often promoted, breaking free is a brave and noteworthy act deserving of recognition. One person suggested the “Finer Diners Club,” an exclusive group of those who’ve voluntarily given up their food stamp (EBT) cards to then enjoy a nice dinner with other club members where they’re recognized for their achievement. At our mission, we do something even simpler. We have a “Wall of Heroes” made of EBT cards that were voluntarily given up. The names of each person are there for everyone to see.

Like me, you may also believe that government dependency in America today is a national epidemic. Although it’s policy driven from the top, I hope you’re encouraged to consider how relating with your clients through testimony and relationship, replacing what the government is doing with more compassionate and wiser means, and recognizing people who make the bold step to break free are some practical ways you can begin helping people find freedom from that master with a smiling mask.

Want to influence government policy? True Charity Network members have regular opportunities to share their perspectives and stories with policymakers.

 

 


Savannah Aleckson
Events Director/Adjunct Instructor
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Imagine that a game-changing grant opportunity is on the line for your nonprofit, dependent on your ability to reliably answer this question: how many elderly, disabled veterans did you help in the last three years with a night of shelter? If you’re able to prove that you’ve helped a significant number of this specific group with this particular form of assistance, you could receive a large sum of money that could be groundbreaking for your programs. Now the question is: can you prove it?

While an opportunity like this might send the average nonprofit leader into a frenzy rummaging through old file cabinets, searching through long-archived records, and painstakingly trying to piece together the right information, you don’t have to be the average nonprofit leader. Instead, you can be the nonprofit leader who uses CharityTracker’s web-based software. While known for its primary feature of tracking client assistance records between nonprofits to avoid duplication of services, CharityTracker also has a robust reporting feature that allows you to mesh data to give you what you need to know.

For Watered Gardens Ministries, the aforementioned scenario wasn’t hypothetical at all—a $75,000 grant was awarded to Watered Gardens because its staff was able to demonstrate how many elderly, disabled veterans had been helped with a shelter night over the previous three years. It was a relatively quick, painless process with a big pay-off thanks to the data aggregation that CharityTracker provides for a community.

While neither the True Charity Initiative nor Watered Gardens Ministries own CharityTracker (it’s owned and operated by software company Simon Solutions), we’ve found the software so useful that we love to share it with everyone we know. Here are three reports that can be run using your CharityTracker software:

1. Assistance Report

An assistance report is a great way to consolidate data about who you’ve helped recently with a specific assistance. For example, if you wanted to see how many food baskets were received by clients in the last month, you could do that in a cinch via an assistance report. 

Best uses: 

We love the assistance report for getting a quick glance at services rendered. This information can be used for a variety of purposes, but one great application is as a roll call sheet for an educational class or for a shelter night. If you display the data in table format, you can see who received the specified assistance in a reader-friendly way.

Things to consider: 

Because assistance reports are set up to give detailed information, including info on every case who received the assistance, it’s best suited for short timeframes and for situations in which it’s important to know who received the assistance.

Example:

Below is an example of an assistance report.* Note that it is in table format, a format conducive for rosters.

2. Categories Report

Perhaps you don’t need as much detail in your report about who received each assistance; maybe you just need the raw numbers about how much assistance you gave in a particular time frame. That’s a simple task with a categories report. A categories report is a no-frills roll-up of how much assistance you gave by category, whether that be your food pantry, shelter, clothing store, educational class, etc. 

Best uses:

If you want a simple breakdown of the services your organization provides, this is the report for you. This report is optimal for rolling up total services over a longer period of time, such as six months or one year.

Things to consider:

This report lacks specificity, so if you need more info on who received the assistance, opt for an assistance report instead. It’s important to remember that outputs (the services you provide) are not equal to outcomes (the impact of your services). While it’s certainly good to know what resources you’ve provided both for your own purposes and to inform your donors, make sure you’re also tracking how those services are helping your clients achieve self-sufficiency and a better life.

Example:

Below is an example of a categories report,* showing how much assistance was given in a specific category over a period of time.

[/et_pb_text][et_pb_image src=”https://www.truecharity.us/wp-content/uploads/2021/12/reports-1.png” title_text=”reports 1″ url=”https://www.truecharity.us/wp-content/uploads/2021/12/reports-1.png” url_new_window=”on” _builder_version=”4.9.2″ _module_preset=”default”][/et_pb_image][et_pb_text _builder_version=”4.9.2″ _module_preset=”default”]

3. Outcomes Report

For the nonprofit ready to take the first step into developmental, hand-up charity, the outcomes feature on CharityTracker is a handy place to start!

Best uses:

An outcomes report is great for getting a high-level overview of the goals your clients are working toward. You can see a breakdown of goals that have been set with your clients over a certain time period: for example, you could look back and see how many goals were set in the categories of education, finances, and spiritual health in the last year.

Network Member-Exclusive Content: Learn more about practical methods of effective charity, including the importance of goals in poverty-fighting and the SWOT Box tool, in our True Charity Takeaways video series.

Things to consider: 

The outcomes tab is a great feature, but one that is only available to CharityTracker Plus and Pro users. If you’re currently using the basic package, we recommend upgrading to the Plus version. The outcomes feature, along with several other fantastic additions, makes it well worth the money! You can see a feature and price breakdown of each CharityTracker package here.

Example: 

Below is an example of an Outcomes Goal report, showing a broad overview of the number of and progress toward financial goals.*

Not using CharityTracker, but convinced you should be?

You can check here to see if there’s a network in your community. Even if there’s not, it still could be a worthwhile tool for internal tracking.

If you need help with CharityTracker, whether to get your own organization up to speed or get a network started in your community, True Charity is happy to help! True Charity Network members are eligible for a half-day CharityTracker training for $200 plus travel. If you want to get your whole community on board, consider hosting a CharityTracker training as part of our 1 day Foundations Workshop. It’s an educational event designed to get the key players in your community talking about the principles and practice of effective charity.

For more info on training options, members can click here; nonmembers can contact info@truecharity.us.

 

*These reports were gathered from a demo website and do not reflect real data of actual clients. If you would like to experience the reporting tool yourself, the demo website is a great place to learn! Navigate to the following website: plusdemo.charitytracker.net. The login info is demo@charitytracker.net in both the name and email information fields. Once you’re in, you can find the “Reports” tab under the “My Agency” tab.

 

 


Travis Hurley
Director of Advancement
Read more from Travis

 

 

The value a good volunteer brings to a non-profit can be hard to measure. But a recent study by the Independent Sector tried. They concluded the value of a volunteer’s time would equate to $28.54 an hour. Wow! Based on that figure, the time, talent, and effort given over the course of one year by volunteers across all non-profit efforts in the United States becomes an equivalent monetary contribution that reaches into the billions. That’s a value that doesn’t show up in a ministry’s profit and loss reports, but it should convey just how important a strong volunteer program can be for a non-profit’s bottom line.

So, how strong is your volunteer program? 

As the advancement director not only for True Charity but for Watered Gardens Ministries as a whole, I oversee ours. I work with a team that values the contributions of our volunteers, and we have one guiding principle that informs three key areas of recruitment, training and retention:

Our Guiding Principle: We Serve the Volunteers. They Don’t Serve Us (They Serve the Clients). 

Watered Gardens is in year twenty two of ministry and, for the first ten years, it was completely volunteer-driven. Even as paid staff members have come on board, the bulk of the shifts filled are from volunteer seats. This is not by accident. In fact, the mission and vision statements of our organization explicitly state that we serve those who volunteer. The mission: Watered Gardens exists to serve the local church in its mission to help the poor. The vision: We want to see the local church boldly engaged with the poor relationally, responsibly, and compassionately.

It can throw people for a loop to hear that a ministry offering services to the poor like a thrift store, a grocery store, beds for overnight shelter, and long-term programs for men, women, and moms with children does not exist to serve the poor. But the DNA of Watered Gardens is intentionally structured this way. Everything we offer is part of an overall program designed to help volunteers from the local church serve the most vulnerable among us in a way that builds new relationships and resolves issues of poverty. Without volunteers serving, our mission can’t be fulfilled and our vision will never be realized. Assuming there is no mission drift, here are three implications for a volunteer program that result from having the guiding principle stated above:

 

Key Area #1: For Volunteer Recruitment, Is Your Ministry Structured to be Reliant on Them?

When your guiding principle is to serve the volunteers, your success should be measured in part by how many you have. Examine all of the services you offer and see how many are led and filled by volunteers. If you say volunteers are essential but your program can go on with or without them, that’s a problem. And the volunteers will know it. So if there’s a vacancy in one of the volunteer seats but there’s no change in services provided, are you really reliant on that volunteer? For example, if you can’t secure a volunteer to serve as the overnight resident assistant, are you willing to not offer shelter that night? If you can’t secure a volunteer meal crew to serve dinner that evening, are you willing to close the kitchen for that meal?

Tying your outputs and outcomes to the strength of your volunteer program will ensure that volunteer recruitment remains a top priority. In addition to volunteer-oriented mission and vision statements, this prioritization should be reflected in the prominence and ease by which people can explore volunteering on your website. At Watered Gardens, the “volunteer” button is as prominent as the “give” button on the home page. This priority should also be reflected anytime your ministry is given a platform from which to present. At Watered Gardens, we ask for volunteers from any church stage, at any table in the lobby, before any social organizations that invite us, and from every social media platform we utilize.

 

Key Area #2: For Volunteer Training, Does Your Ministry Empower Them to Own and Excel at their Jobs?

When your guiding principle is to serve the volunteers, your success should be measured in part by how reliable they are. Examine your on-boarding process for volunteers and see if you are setting the right expectations and equipping them with the tools essential for success. Is there a volunteer orientation that helps new volunteers get acclimated to your ministry’s mission, vision, and processes as well as afford them opportunities to meet key staff members? Is there an up-to-date volunteer handbook they can reference as they get started and run into unanticipated hiccups in the day-to-day outworking of ministry? When a volunteer can’t make it in, do they know whom to contact? If they don’t make contact and simply don’t show up for their scheduled time, do you have a process in place to follow up with them?

Viewing volunteers as empowered co-laborers of the ministry and essential, albeit unpaid, workers will require a comprehensive volunteer training program. In addition to an initial orientation and a volunteer handbook, this empowerment could also be achieved with clear job descriptions for every volunteer seat, clear expectations for timeliness and conduct, as well as a way for the volunteers to confidently offer feedback. At Watered Gardens, we encourage new volunteers to shadow those with more experience, to ask questions and offer ideas for improvement, and we provide intentional means for securing such feedback through regular surveys of current volunteers.

 

Key Area #3: For Volunteer Retention, Do You Show Appreciation for Them?

When your guiding principle is to serve the volunteers, your success should be measured in part by how long they stay. Though not mentioned in the previous section, an effective training program is vital to retention. A deliberate on-boarding process communicates the value your organization places on its volunteers. Conversely, the easier it is for them to hop on board, the easier it will be for them to hop back off. And when those volunteers do show up, faithfully and repeatedly, are you letting them know how thankful you are? And are you able to thank them by name?

Showing appreciation to your volunteers can be as simple as knowing their names. At Watered Gardens, we gather pictures of our volunteers and send an email to staff every morning with names, faces and the work areas for that day’s volunteers, so staff can build friendships along the way. Watered Gardens also puts a spotlight on a key volunteer every year, featuring them on our social media and in our letters to donors. In addition, we hold quarterly volunteer appreciation events which are designed to provide food, fun and fellowship away from the ministry campus, purely as a way to say “Thank You” for all the work our volunteers do. Finally, we also conduct exit interviews with those we haven’t retained, asking the kinds of questions that will help us do a better job in the future.

 

Conclusion

Your non-profit organization may not always know the motivation that brings a volunteer to your doors. But the more clearly you convey the essential nature of their involvement, the more thoroughly you equip them to succeed, and the more demonstratively you appreciate their efforts, the more likely you are to have a strong, thriving volunteer team that takes ownership of the mission and their role in it, becoming the backbone for an increasingly effective and cost-efficient ministry.

 

 


Avery West
Director of Community Initiatives
Read more from Avery

 

Here at True Charity, we are big believers in challenge. You’ll hear different words for it—exchange, employment, reciprocity—but the basic idea is that, in order to do charity well, we must affirm the unique capacity of every human being. Many people living in chronic poverty wrestle with feelings of inadequacy or low self-worth. In order to attain healthy relationships and fulfilling jobs, most people need some intermediate stepping stones. Check out our curriculum database for classes that focus on strengthening relationships and social capital. 

Earn-it projects and social enterprises are two stepping stones on the path toward fulfilling work. Continuously handing out goods and services to people in need is unlikely to inspire them to exercise their own gifts and capacity.

There are many ways to create reciprocity and rid charity of the perpetual giver-receiver dynamic it so often embodies. Social enterprises, or businesses that meet social needs, provide innovative and sustainable solutions to individuals and communities. The earn-it model, employing individuals to meet their basic needs, also serves a crucial role in many people’s path out of poverty. So what is the difference, and why does it matter?

The most essential difference between these two forms of challenge is the needs of the individuals being employed. Many types of social enterprises exist but, in this article, we’ll focus on what Randy White, social enterprise consultant, referred to at the 2019 True Charity Summit as “integrated” enterprises—where “the activity of the business overlaps with its mission.” These businesses often focus on formal employment of people who struggle to get and keep jobs, such as individuals recovering from addiction, incarceration, prostitution, or poverty. Individuals employed by such enterprises have often just completed or are simultaneously working in some kind of rehabilitation program. Employees benefit from life skills training, mentorship, and help finding next steps for employment. 

Individuals who can commit to formal employment in a social enterprise have some kind of stability. Whether the individual has achieved independent housing and basic life skills, such as budgeting and grocery shopping on their own, or those components are externally supported by some kind of rehabilitation program, that employee is in a position to take a long-term job. 

Individuals who become “partners” in an earn-it project, though, are not formally employed, often due to an amount of instability in their lives. Partners work for short periods of time (often 30 minutes to a few hours) to earn basic needs, such as food, shelter, or a shower. These individuals are not in a temporary crisis, and therefore one-way giving, or relief would be unlikely to improve their situation. Rather, they are experiencing chronic poverty and need basic needs met on a short-term basis, but they also need encouragement to begin a path out of poverty. Individuals in need of earn-it style employment often live on the margins of society and may suffer from trauma, addiction, mental illness, or homelessness. 

Employing someone in bracelet-making or recycling for an hour allows the individual to retain his dignity and creates a context for a volunteer or staff member to engage him in meaningful conversation. Remember, though, the path of relief, rehabilitation, and development (which you can read more about here) is an upward trajectory. Individuals should always be moving toward a greater level of self-sufficiency. Partners who can become employed should be encouraged to use the earn-it project as a stepping stone to formal employment—perhaps a social enterprise might be a good fit. For some individuals who suffer from severe mental or physical disability, though, working hard to create beautiful items and forming relationships with other partners and volunteers is a fulfilling life. 

Social enterprises and earn-it models also vary in the way they operate economically. While it’s not true of every social enterprise, most of them act as businesses. They pay their workers with the revenue created by the product they sell. In order for a business to run effectively, an employee making $15 an hour must actually produce at least $15 worth of net revenue every hour on average. 

Earn-it projects, though, are not self-sustaining. Various factors such as addiction, trauma, or disability makes sustainable revenue production difficult for partners, yet they are still paid a market rate (or better) in the goods or services they receive. Because the main goal of the earn-it model is to retain dignity, not to create revenue, those projects may actually lose money.  

The best way to get a sense of the differences between social enterprises and earn-it models, and to see if either might fit your ministry well, is to research what other groups are already doing. Social enterprises like Klamath Works, Unshattered, and For Victory provide an essential step for people escaping cycles of brokenness. Earn-it models are less common, but Watered Gardens’ Worth Shop and Degage Ministries’ Degage Dollars program show that even those who might think they have nothing can still bring their unique gifts to the table.

If you think an earn-it model might serve your community well, check out our Earn-it Project Model Action Plan (MAP), which includes detailed guidance, practical tools, and informative videos to help you start your own project. If you haven’t joined the True Charity Network yet, you can see an overview of all of our MAPs here.

 

 

Nathan Mayo
Network Director
Read more from Nathan

 

 

An in-depth survey on who uses expensive payday loans and why showed that lack of financial knowledge was a significant factor. According to the surveyors, “On several occasions, borrowers in focus groups equated the simple interest rate (e.g., 15 percent for a loan with a $15 per $100 fee for two weeks) with the Annual Percentage Rate disclosed for a credit card (which might be 15 percent on an annual basis).” This lack of knowledge can and often does lead to terrible financial decisions. 

While critics often assert that the poor are the best money managers by necessity, the evidence does not support the claim. In the Federal Reserve’s tri-annual financial survey, the top quartile of households scored about 38% better on very simple financial literacy questions than the poorest quartile. Upon closer examination, this lack of financial literacy is not a special characteristic of poverty but rather is a secondary connection to lower formal education among low-income households. 

Certainly, knowledge is not the only barrier to financial prosperity. If the poor had more income, they would also have an easier time maintaining cash savings, investing, and not needing payday loans. But, insofar as they sometimes do have other options, more knowledge would certainly benefit them. The poor are more likely to fall for “rent-to-own” schemes to pay for household appliances. Of the 12 million Americans who use payday loans each year, most do not use them for emergencies but rather take an average of eight loans a year and pay $520 in interest. Seventy-seven percent report using payday loans for recurring expenses, including cable subscriptions or optional purchases such as weekend getaways. 

In fact, this missing financial knowledge may be even more important to the poor than to the middle class, because the middle class often have default access to asset building tools like 401(k) plans and home ownership. Wealth building tools are more democratized than ever—with as little as $1 and internet access, anyone can invest in funds with quality stocks and bonds, but you must be informed in order to take advantage of them.

To non-profit and policy leaders the solution seems simple: educate the poor. Unfortunately, such education often has far less impact than intended. According to an oft-cited analysis of 90 studies, the average effect of financial education interventions on behavior is a depressing 0.1%. There is a relationship between pre-existing financial knowledge and better decision making, but most financial training interventions did not improve behavior, even if it did temporarily increase knowledge. 

There are numerous explanations of why this might be. According to the study, financial knowledge decays over time such that it has no effect on behavior at about 18 months. This may be in part due to conflicting information from non-experts and biased financial advice from people selling products. Other studies suggest that giving people financial information that is too technical may intimidate them and reduce their confidence, which actually causes worse financial decisions.

On the positive side, there is good evidence that we can improve people’s financial decisions, but the approach must be strategic. If a program is only teaching clients about the power of compound interest, it is unlikely to accomplish anything.

First, focus on cultivating financial soft skills. Some of the best predictors of good financial decisions are basic numeracy, propensity to plan, confidence in ability to research, and willingness to take prudent risk. A course can focus on instilling confidence, making prudent risk seem acceptable, and teaching people how to find reliable financial information rather than merely giving them the information. Keep all the information as simple as possible and action-oriented to ensure you do not intimidate learners with jargon.

Second, create opportunities for immediate application. Financial education is far more effective when delivered just prior to a financial decision. A nonprofit could use a mentoring program to help a client build and enact a budget and save for financial goals. They could use part of the instructional time to help people compare accessible investment opportunities or insurance options and sign up on the spot. Nonprofits can also offer a boost to people moving in the right direction via a program like a matched savings account, food co-op, some additional work opportunities for the under-employed, or access to an interest-free loan to pay off high interest debt. 

Third, build a supportive community. When people are in doubt, they tend to do what they perceive others like themselves are doing. You can leverage this principle, called “social proof,” by using a class structure that allows people to share their achievements and aspirations with others. While studies show this effect is powerful, it can also backfire. If the class is mandated and a significant fraction of the attendees aren’t happy to be there and aren’t planning to apply the knowledge, this effect can be contagious. Additional evidence shows, if the class is mixed-income and the middle-class attendees are sharing goals that would be unattainable by poorer participants, this can also demotivate poorer participants and cause them to save less. 

It is possible to do all three things well, as programs like the Faith and Finances Curriculum demonstrate. One independent assessment showed dramatic improvements in financial behaviors, including emergency funds, budgeting, and conversations about money with loved ones at the end of the course. 

This topic is an important reminder to nonprofit leaders that increasing knowledge is often not enough to inspire change. We must care about the effect of our programs on people’s actions, and we must not cease until we see our activity is generating results. 

 


True Charity Network members have access to detailed reviews of several popular financial curricula available for churches and nonprofits. Network members can click here to view the Curriculum Review Database. Non-members can click here to learn how to get access.

 


This article is just the tip of the iceberg for the practical resources available through the True Charity Network. Check out all of the ways the network can help you learn, connect, and influence here.

Already a member? Access your resources in the member portal.


 

 


Travis Hurley
Director of Advancement
Read more from Travis

 


TRUE CHARITY NETWORK MEMBERS: Watch Travis’ full presentation on this topic, titled Sharing the Story: An Effective Framework for The Ministry of Fundraising, here in the video learning portal.


 

Introduction

Fears and False Perceptions

If your experience has been anything like mine, you’ve had a negative view of fundraising at some point in your life (and maybe you still do now). When I was approached ten years ago to consider coming on staff in the development department with a private college, I first had to ask what “development” even was. When I was told it was primarily fundraising, I said, “No, thank you!” I didn’t want to be part of a field I had always seen as a necessary evil that burdened donors, and I was fearful of the responsibility that came with finding an organization’s necessary funding.

Thankfully, the man who approached me had been in fundraising long enough to know that an initial “no” isn’t always a lasting “no.” He sent me a book to read, we kept in contact, and 8 months later, I was on his staff. Having now been in “development” (or “advancement,” or simply, “fundraising”) for over nine years, I want to share three basic precepts that helped me establish a framework within which I have been able to abandon my fears and my false perceptions.

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– 1 –

Fundraising is a Ministry of Provision

In Ephesians 4:11-12, the Apostle Paul offers five areas of ministry that are designed “to equip the saints for the work of ministry, for building up the body of Christ.” CDF’s David Duncan (the man who first approached me years ago) helped me see how fundraising can be viewed as a teaching ministry to the church. Sometimes I get to be the one who helps a donor understand WHY they have been given so much to manage. Sometimes I get to be the one who teaches that donor how their resources can bless the organization I serve. Either way, my role is a ministry.

Psalm 24:1 says, “The earth is the Lord’s and everything in it.” It’s hard to get around the word “everything.” That covers… everything—including all the time, money and in-kind gifts that can potentially be given. So when I sit down with a donor, I remember what one of my mentors, Clark Dickerson, said, “God is the owner of all, we are stewards, and we have what we have in order to bless others.” Donors are stewards, or managers, of whatever God has entrusted to them. And when He entrusts to us more than what we need ourselves, it’s not so that we can indulge our own whims and extravagances. We have what we have in order to bless others (Note: It may be that a donor doesn’t have this perspective or has forgotten it. There, again, is a ministry opportunity to teach).

When we see our role as a ministry of provision, knowing that people are meant to bless others with what they have, it can put our minds at ease when talking to donors, because DONORS ARE MEANT TO GIVE.

 

– 2 –

Fundraising is a Pathway for Donors

But it’s more than being meant to give. Duncan passed along to me a key refrain from one of his mentors, Ray Lyne of Lifestyle Giving, who taught that donors don’t simply “give money.” Donors DO GOOD DEEDS. They want to make a difference, and they want to know how their funding will make that difference, for good, in others’ lives. When we sit down with donors, we have the opportunity to show them a pathway by which they can do good deeds, assuming the organization we represent is doing them! Fundraising is a pathway for donors.

The thing is, not every donor is going to resonate with the good work your organization is doing. As the organization’s fundraiser, you are (hopefully) 100% convinced that the work being done is vitally important in bringing about good for others. You’re likely very passionate about that conviction. The donor may not be. And that’s okay. There are thousands of organizations providing any number of good services, and it’s possible that the passions of a donor you engage simply lie elsewhere. When that’s the case, don’t sweat it and don’t force it. If they’ve already found another pathway by which to do good deeds, wish them well; then, keep looking for the donors whose passions align with yours.

When we remember that fundraising is a pathway for donors, and that those donors want to do good deeds that align with their passions, it can put our minds at ease when talking to donors, because DONORS ARE MEANT TO GIVE.

 

– 3 –

Fundraising is a Story for You and Your Staff

Donors are meant to give. Donors want to give. But you can’t control whether they WILL give or if that giving will come to YOUR organization. The ONLY thing you CAN control is the STORY you’re telling. First, yours should be a true story. You’d think that’s a given, but let’s not assume. Second, yours should be a story that clearly communicates the good God is doing in the organization you represent. Third, yours should be a story that clearly connects the dots for the donor, so they see how part of the way God is doing that good is via donors like them. Fourth, yours should be a story that clearly calls donors to action when their passions align with your organization’s. And fifth, yours should be a story that is constantly being reviewed and refined. Your job is to TELL A GREAT STORY.

Telling the story is not just a matter of content, though. You can have the best story of the greatest good, but without an audience to hear about it, who cares? This is why the delivery is also crucial. You and your fundraising team must couple the development of a great story with a cohesive strategy for where, when, and to whom that story is being told.

When we understand that the only thing we can control is how well we are telling the story, both in content and delivery, it can put our minds at ease by bringing clarity to our role. Your job is clear: TELL THAT STORY WHEREVER YOU CAN, WHENEVER YOU CAN, TO WHOMEVER YOU CAN… and TELL IT AS WELL AS YOU CAN.

 

Conclusion

Knowing Your Lane and Staying in It

There’s much more that can be said about all three of these precepts, especially the art that is telling your story, but my experience has been that when I stay within this basic framework, my fundraising ministry is joy. When I forget God’s role, the donor’s role, or mine, I notice the stress and the fear creeping back in. I start “holding on too tight” and have to loosen my grip by remembering that fundraisers don’t provide. God does. And He does it through donors who are looking to do good deeds that align with their passions. You just keep working at telling the story.

May your grip stay loose as you work without fear, better knowing your lane and staying in it.