AFP’s State of the Industry Breakfast

The Association of Fundraising Professionals’ fourth annual State of the Industry breakfast served as an opportunity for the New York Chapter to celebrate recent accomplishments, recognize strong talent, share best practices, effect a changing of the guard and set priorities for the upcoming year. It was also an opportunity to strategize ways to increase visibility and respect for the profession and the sector.

It was quite a productive morning. Mark Kalish, CFRE, president of Kalish and Associates Inc., was honored with the Chamberlain Award for his leadership in the sector and his commitment to the association; Susan Shattuck, co-founder and principal of Special Events Unlimited, Inc., was installed as the organization’s new board president; and Mark Hefter, JD and vice president, Planned Giving American Technion Society, assumed the role of immediate past board president. Shattuck said that her big-picture goal for the chapter is “to elevate the profile and status of the profession and the sector and to spotlight our significant contribution to the economy and the nation.”

Keynote speaker Jason Lee, general counsel for the AFP, quizzed the room about two recent legal victories that demonstrated the profession’s growing influence. The packed audience pretty quickly recalled the defeat of the proposed IRS substantiation regulation, which would have made nonprofits responsible for housing the social security numbers of donors who made gifts over $250. He used that as a springboard to encourage all New York state chapters to support an “Albany Day” for fundraisers to share their priorities directly with state legislators.

“It gives you an opportunity to meet with state legislative officials and say, ‘We have expertise – if there’s going to be something coming down the pipeline, please come to us,’” Lee said.

“That’s how you avoid things like the IRS substantiation rule,” Lee said. “You don’t want the state legislature ... creating policy in a vacuum without your input.”

Another success Lee referenced was that the IRA Charitable Rollover was signed into law permanently. This permanence makes it easier for nonprofits to plan for conducting outreach to donors who have reached the age of 70.5 and can now make up to $100,000 a year in charitable gifts directly from their IRA without treating the distribution as taxable income.

A panel moderated by Jill Kaplan, publisher and vice president at Crain’s New York Business, included Michael Haberman, managing director and Northeast region executive of global philanthropy for JP Morgan Chase; Marcie Passarella, director of global citizenship and sustainability for PepsiCo Inc.; and Carmel Owen, vice president of leadership giving for The New York Women’s Foundation. All shared best practices for approaching funders.

For example: Look for funders that are a good fit for your organization. Corporate funders can have changing priorities and are looking to “move the needle” on specific issues. If your organization can help, state the connection clearly. In addition, build a revenue stream into your budget. Whereas foundations can sometimes be greater risk takers, corporate funders are particularly interested in sustainability. They do not intend to fund your organization indefinitely and will need to know how you intend to support your program when funding ends. Lastly, submit a communications plan with your proposal if a funder expresses an interest in gaining visibility through their grantmaking.

Fundraisers were also encouraged to help their boards think about getting better – not just bigger – and to make a concerted effort to measure impact regardless of the size of the organization’s revenues.

In an interview with New York Nonprofit Media, Kalish, who has been involved with AFP for over 39 years and was formerly head of government relations for the New York City chapter, also voiced his support for an “Albany Day” to improve state legislator’s understanding of the nonprofit sector and philanthropy efforts.

“They have a sense that we’re all rotten apples,” Kalish said. “They lump us in with cold callers, they lump us in with, perhaps, bad direct mail efforts.”

“(Legislators) do have a role, an important role in protecting the public and consumers, but we have to educate them about our profession.”

Kalish, whose consulting company conducts executive searches for nonprofit clients, does see one area where fundraisers are already commanding significant respect, and that’s in their range of compensation.

“Salaries are growing, they’re becoming very competitive; major gift officers are making $90,000 to $120,000, depending on the size of the organization.”

He noted that some younger professionals entering the field seem more concerned with salary or title than with the mission of the organization and the opportunity to make a difference. They are eager to quickly move up the career ladder without appreciating the value that comes from learning on the job in a variety of settings. By Kalish’s estimation, respect in the field of fundraising comes over time.

He cited the importance of one-to-one mentoring, which he loves to do, and expressed an appreciation for various degree and certificate programs dedicated to training fundraising professionals, including Columbia University’s Fundraising Management program, which he helped start, but added: “These people are graduating, they’re still fairly young. As much as education is a leg up, it can’t replace experience, and this is very much a profession based on experience.”