More bar foundations, faced with dwindling
government funding and other splintered sources of revenue,
can no longer rely on traditional fund-raising methods.
The annual appeal for contributions and other related
revenue-raising campaigns are being overhauled as bar
foundations increasingly turn to the expertise of
development directors for help in enhancing their economic
pie.
Six state and four local bar foundations had a
development director on staff, according to the 1993 Bar
Foundation Activities Survey, compiled by the National
Conference of Bar Foundations and the American Bar
Association Division for Bar Services. In 1996, the
combined number of development directors increased to 15,
says NCBF Staff Director Lorraine Miller of Chicago.
More state and local bar foundation leaders realize
that serious fund-raising cannot be heaped upon a regular
staffer unfamiliar with its techniques. Many foundation
leaders find that professional development directors are
essential to assist and direct fund-raising efforts, according
to NCBF President Jerry Lastelick of Dallas.
"We see more and more foundations employing full-time, experienced development directors and sending them
to our programs (at midyear and annual meetings). Some of
their fund-raising successes are spectacular," says Lastelick.
Nearly half of the country's 1.2 million tax-exempt
organizations are considered charitable (including bar
foundations), according to the National Society of Fund
Raising Executives in Alexandria, Va. And many of these
organizations are eyeing a designated staff position for
development because of the increased need for funding.
Development directors are also called fund- raising
specialists, vice presidents of financial resources, vice
presidents of philanthropic support, or planned-giving
officers. They have been on the non-profit scene for more
than 30 years, according to Patricia Lewis of Alexandria,
Va., president and chief executive officer of NSFRE.
"‘Development' can be an innocuous word. But
fund-raising needs a professional who can create a climate in
an organization that develops a donor. That takes a lot of
cultivation and work," Lewis says.
More organizations are depending on development
directors, as evidenced by NSFRE's 18,000 members
throughout the United States, Mexico and Canada. The
association was founded in 1960 to advance philanthropy
through networking, education, training and certification of
the fund-raising executives.
The number of development officers across the
country is also a indication of the increasing number of non-profits, according to Barry McConnell, president of the
Northwest Development Officers Association in Seattle and
president of the Make-A-Wish Foundation.
"Non-profits are expected to be more prolific. . . . .
You're seeing more acceptance of development directors as
true professionals," says McConnell. Also, more colleges
and universities are offering undergraduate and graduate
degrees in the field, he notes.
As charitable institutions become more accountable
to their constituents and to the government, they are being
taken more seriously as viable entities in their communities.
"You're seeing a disappearing line between the way
non-profits and for-profits are being managed and run
today," explains McConnell, nodding to the high number of
development directors nationwide.
The increased role of development directors has been
seen in organizations across the board: in the arts, civic and
community groups, and legal foundations.
"They all need a professional there to provide good
stewardship to donors," McConnell adds.
Arizona's newcomer
Jason Negri became one of the newcomers on the
state bar foundation scene when he was hired as the first
full-time development director of the Arizona Bar
Foundation last August. (In early June, Negri left the
foundation to return to Ohio.)
After three years as associate director of annual
giving at Franciscan University in Steubenville, Ohio, the
Long Island, N.Y., native moved to Phoenix. Starting the
foundation position from scratch was "daunting," Negri
acknowledges.
"The study showed that the foundation had a big
problem. It had a low to nonexistent profile among the legal
community. So I had to start with a lot of education before
we could start a campaign," Negri explains.
His first task was to design specialized fund-raising
efforts, obtain the appropriate software and computers, and
produce some brochures. He also began publishing a
monthly article in the bar journal and urged board members
to use public speaking engagements to promote the
foundation.
Next, he developed a campaign and appointed a
chair, who then recruited other volunteers. The foundation's
budget this year is $66,000 and its fund- raising goal is
$300,000.
While some bar foundations may seek corporate
funding, Negri will initially target only members beginning
in May. "We're going to get the membership to step up to
the plate," he adds.
N.C. effort continues
The North Carolina Bar Foundation hired Tom Hull
as its first full-time staff development director two years
ago, and he has helped raise the coffers ever since. (Also see
N.C. bar foundation banks on development director for
cash," Bar Leader, Winter 1995-96, p. 8.)
A year ago, Bar Leader reported that the
foundation's endowment totaled about $2 million, with
about $500,000 raised by Hull through donations. Today,
it's about $2.75 million.
Among the various foundations projects, Hull first
worked on the Bar Center Naming Opportunity, where
$700,000 in donations were accepted. The program was
completed in June 1996 with $800,000, and rooms in the
facility were named after donors. Hull also formalized a
donor club called the Platt D. Walker Society, which now
has more than a dozen members. (Walker was the bar's first
president in 1899.)
"Although the legal profession faces many
challenges, lawyers are very supportive of our development
efforts," Hull says.
Iowa begins with a contract
The Iowa State Bar Foundation hired its first part-time development director in August 1995. Peggy Huppert
of Des Moines is on a $24,000 a year contract, operating
through her home-based company called NonProfit
Resources. Her other clients include the Department of
Natural Resources, Des Moines Playhouse, Lutheran Social
Service of Iowa, among other groups.
Although it has been in existence for more than 50
years, the Iowa bar foundation never had any kind of staff or
formal fund- raising efforts, according to Huppert. Money
was raised primarily from dues check-offs and investing in
the stock market.
The first thing Huppert did was raise the dues check-off for bar association members from $10 to $25, which has
generated about $16,000.
"They didn't keep donor records from year to year.
Now we do," she says about changing the system.
Last year, she coordinated the Lawyers' Fine Arts
Gala where lawyers displayed their creative talents through
art work. This was the first time the foundation held a
special fund-raising event, and it raised about $4,000. More
importantly, though, the resulting visibility for the bar
foundation was priceless, Huppert notes.
She also helps to recruit fellows, a program similar
to those in other bar foundations where lawyers are invited
to become members by pledging a minimum $1,000. To
date, 144 fellows and 54 life fellows are enrolled.
Overall, Huppert's goals for the foundation are to
make it more pro-active, increase its identity within the legal
community, and raise $2 million by the year 2001. To assist
with these objectives, the foundation may hire a full-time
executive director by next year.
"They have a real need for an executive director
because my focus is on raising money," Huppert says.
Aggressive in Allegheny
While Karen Crenshaw is on the staff of the
Allegheny County Bar Foundation in Pittsburgh, she is also
director of two inter-related areas, development and pro
bono services. She began in January 1995.
Working with a half-million dollar budget and in
office space from the bar association, Crenshaw has helped
raise foundation income from member contributions and
events (such as auctions and golf tournaments) from
$51,000 in 1995 to $165,000 in 1996. After an endowment
was authorized in the spring of 1996, the bar foundation has
received almost $50,000 in pledges.
Next on the agenda, Crenshaw hopes to hold a
fashion show to raise more money for the foundation and
provide community outreach. She also plans to encourage
law firms to donate their unclaimed funds from class action
lawsuits or other funds that are past the statute of
limitations. Last May, the foundation held its first retreat to
develop a strategic plan.
A healthy relationship with the bar association has
provided much of the foundation's general support,
Crenshaw says.
"We wouldn't exist if it wasn't for the bar and its
membership. The foundation was created to be a vehicle for
the bar and a public service," she adds.
Cincinnati moves ahead
In September 1993, the Cincinnati (Ohio) Bar
Foundation Board of Trustees wanted to improve its fund-raising efforts, so it hired in a part-time development
director and an assistant. After about a year, the director left
for a full-time position elsewhere, and Anne Gerhardt was
brought in to replace her. Although she works primarily for
the foundation, overseeing its annual budget of $112,000,
Gerhardt's salary is shared with the Cincinnati Bar
Association.
While the first development director got the
department started with a handful of volunteers and a new
computer system, Gerhardt went further. She first focused
on the annual fund drive which increased this year to
$33,000 from $16,000. However, an additional appeal
during the same year was met with mixed results as some
members balked at contributing more than once a year.
"I had to figure out our audience that first year, the
culture in the bar and why they give money," Gerhardt says.
She's now working on a planned-giving program and
arranging meetings with senior lawyers. A $25,000 annual
scholarship fund was also developed and named after
William McClain, a former common pleas court judge and
the first African-American solicitor of a major U.S. city,
notes Gerhardt.
This year, a $10,000 memorial fund will be
established in memory of the late John Warrington, a well-known Cincinnati lawyer. The fund's tentative plan is to
provide a bar association community service award to an
lawyer who will select a charity to receive the $500
donation.
Gerhardt says the foundation will also focus on grant
making for law-related education for the public and
enhancing professionalism in the bar community.
Ground floor in Seattle
After a 1990 task force report, the King County Bar
Foundation in Washington has increased its board from six
to 25, hired a development director and bolstered its fund-raising efforts. At first, a part-time development coordinator
got the ball rolling, but then left. In October 1993, Cynthia
LaRowe of Seattle was hired as the first full-time
development director.
LaRowe began by expanding the law firm campaign
by increasing a data base of Cincinnati law firms to 600,
instead of focusing on just the 25 top firms. LaRowe then
solicited each firm with a personalized letter.
She then enlarged the fellows campaign through the
same data base by relying on board recommendations. The
foundation also created a special needs reserve fund, which
is a rainy day account for its programs or emergencies.
These innovations were incorporated because the traditional
sources of funding became unstable or no longer available,
LaRowe explains.
In the past, the foundation raised up to $50,000 a
year. The refined campaigns and additional outside grants
raised $275,000 last year, she says.
"The foundation has gone through a lot of growing
pains. We no longer take a passive role," she says.
The foundation board also hopes to create a United
Way-styled campaign where a team captain is selected at
various law firms to help with fund-raising.
"Some of the board members feel there is only so
much of the pie, and you just go after a piece of it. Others
recognize our programs as cost efficient and determined to
grow. When you're working on a shoestring, you get either a
new shoestring or recreate the shoes," LaRowe says.
What bosses say
Allan Head, executive director of both the North
Carolina Bar Association and the foundation, hired Tom
Hull two years ago and gave him time to settle into the job,
cultivate prospects, and design campaigns.
"Tom has a very nice touch with the members, and
after two years, now has the basis he needs to get into real
development work. We knew it would take a long time to do
it right," says Head, of Cary.
Development is better than expected, and annual and
planned giving are up, according to Head.
"The sky is not the limit for dues, and all
associations should develop a development plan. Non-dues
sources of income are great. Income from development is
better," he adds.
David Blaner, assistant executive director of the
Allegheny County Bar Association and its foundation, feels
the same as Head.
"Since Karen Crenshaw's employment, the bar
foundation has developed from an organization that existed
on paper to a living organization that has employees, offices,
and policies," says Blaner of Pittsburgh.
Blaner also says that after Crenshaw was hired, the
foundation has increased its income from grants,
contributions and fund-raising events. She's also lifted a
tremendous burden from both Blaner and bar executive
director Jim Smith, who previous performed those duties.
"We never spent much time on these projects to
really generate continuing income streams. We tended to
look for projects that produced income with little effort or
staff time. We were successful in generating income, but we
could not sustain the effort," Blaner explains.
Hiring a development director at the King County
Bar Foundation in Seattle coincided with the restructuring
and expansion of the foundation board four years ago. The
foundation went from dispersing contributions from two
annual mail solicitations to making fund-raising a primary
function, according to Alice Paine, executive director of
both the bar foundation and the King County Bar
Association.
"We began by assigning a portion of the time of
another staff member to assist in fund-raising programs, and
a year later, adding a full time, more experienced fund-raising professional as development director," explains
Paine.
At the time, the salary of the foundation's
development director and overhead costs were paid by the
association, with the foundation pitching in $5,000.
"There has been an expectation that, eventually,
income to the foundation will be sufficient to fully fund the
staff. But some in the association feel that should never
happen, because keeping administrative costs to a minimum
increases the effectiveness of the fund-raising efforts," Paine
adds.
Since the foundation's expansion, the budget has
increased from $44,000 to $275,000, which includes grants
previously made directly to the bar association for programs.
Paine praises LaRowe for the skills she uses to focus on
each campaign.
"I heartily recommend to other foundations that they
take the same leap," Paine recommends.
The author is the reporter for Bar Leader.
