By Joel Magalnick, JTNews Correspondent
As the Jewish Federation of Greater Seattle attempts to increase the amount of money it raises and disburses over the next several years, its leadership has decided the old way of doing business is no longer viable. That’s why a different approach to fundraising — with new methods having been discussed for several months now — will fundamentally change the structure of the federation’s strategies.
According to a document titled “The New Vision for Fundraising,” which was presented to a well-attended board meeting on Sept. 10, most of these new efforts, called “relationship-based fundraising,” will focus on the small group of donors that currently gives 90 percent of the federation’s annual campaign and virtually all of the endowed gifts.
In the past, endowment funds and supporting foundations were managed by the federation, but not utilized as a vehicle for raising money.
That will now change. As of this past week, Paul Stone, the federation’s vice president for Jewish philanthropy merged the endowment department with the better-known annual campaign.
In addition, the functions of raising and administering the money have been operationally separated — but will better communicate with each other — so the two groups understand each other’s goals. Two new positions, an administrator for the Jewish Community Endowment Fund that would include no fundraising component and a senior major gifts officer have been created, though not yet filled.
Feedback from the Sept. 10 presentation has been largely positive.
“I was absolutely thrilled with how engaged the board was,” said board member Sally Narodick, who with volunteer and management expert Dianne Loeb led the committee for creating a strategic plan. “They are happy the federation is tackling some tough issues and trying to set direction.”
She noted it is still the beginning of a long process, and there is a lot of work yet to be done.
“Nobody’s clear what the answers are,” she said. “I think people are anxious to get on with the next steps of planning.”
“I think what’s motivating people to do this is changing times,” said Barry Goren, Executive Vice President of the federation. Acknowledging that its loyal base of supporters is getting older, while younger donors have a broader range of philanthropic goals — and less interest in the function of a Jewish federation — means changing the way this federation operates.
“The fundraising terrain has changed dramatically in the last 20 years, and the federation needs to change with it,” said board president Robert Spitzer.
Spitzer and Goren have spent over two years studying national research on the issue.
According to Stone, doing things differently means focusing on large donors, and using that time to do more than simply ask for money.
“We are here to help people figure out how they are going to give philanthropically,” he said. “I’m here to educate, and I’m here to help connect a person and to really show an appreciation for what they’ve done thus far.”
He contrasted the federation’s fundraising efforts to that of the opera. The opera “tells [donors] at every turn how important their contribution is,” he said. “We don’t do that very well.”
“This new model that we’re doing is very donor-centered, instead of federation-department centered,” Narodick said.
It involves talking with the donors about their own philanthropic goals while fulfilling their desires to help the Jewish community.
To that end, federation staff members have become “account executives” who must keep profiles on — and regularly make contact with — top donors. In addition, they will be given formal training sessions in solicitation and fundraising methodology.
Narodick said further work would include contracting with experts in planned giving and estate planning.
“I think we can bring a lot of expertise to bear on tax-effective vehicles for philanthropy,” Narodick said, “and we can really help them efficiently perform the mitzvot of helping other Jews.”
Stone also said the federation must become more flexible to attract those younger donors who want a more hands-on approach to sharing their dollars.
In the past, because the federation’s mission is to give its money to other programs and not necessarily provide direct service, it doesn’t engender a direct participation model like Jewish Family Service, for example. “They’re trying to figure out how to get that through us,” Stone said.
This means the way the annual unrestricted campaign is modeled may have to be changed.
Stone said the process of the strategic plan will look into the feasibility of such a shift.
Though moving this plan forward will be expensive, the board says action already taken this year will minimize much of the added cost.
According to Narodick, the elimination of two positions and the unfilled opening for an endowment administrator should cover the costs of two more staff members. She also said Goren has been prudent with holding overhead to a minimum.
“Our volunteer leaders are watching our costs very, very carefully,” said Goren.
In addition, Stone said the federation’s money will not be spent on expensive cultivation activities.
“There are less expensive ways to have meaningful conversations other than golf, and I think [we’ll] manage,” he said.
Which means it will also be up to the board to carry some of the burden.
“We very much are asking the board to step up and be the volunteer solicitors,” Narodick said.
But will these new tactics work? Jewish federations around the country have struggled in past years to reach their goals, while having to compete with beneficiary agencies now raising their own money.
Board president Spitzer thinks they will.
“I think that we have plotted a course that will strengthen what we are doing for our community,” Spitzer said. He has made this strategic plan the cornerstone of his presidency.
Narodick and Goren both noted that this plan for the federation — once adopted — would take time for implementation and real signs of success.
“My fear is that people will view this as a panacea that will solve all of our communal problems right away,” Goren said. “I think this will be successful, but people need to be patient and look at this in a three- to five-year time frame.”
He mentioned one early measure of success is the commitment — especially from people who have volunteered a lot of time and expertise — that has been shown to push these changes forward.
For her part, Dianne Loeb, who co-chaired the committee, emphasized that this plan is not yet finished. Loeb has done a lot of management work with nonprofit organizations and was brought on board because of her expertise.
“They’ve got the best interest of the federation and really the whole Jewish community in mind,” she said.
One other major change the federation made is a reduction in the size of its board.
Currently, 91 members — including congregational rabbis and the heads of all the major Jewish organizations in the region — sit on the board, as well as several at-large members and every federation past-president.
The proposed change in the federation’s bylaws would reduce the board to 30 members, including a smaller executive committee. In addition, a larger board of delegates without voting power will be created.
Because this change must be made in the federation’s bylaws, the board voted to accept the smaller board and will amend the Federation’s bylaws in January.
The new board will take effect July 1, 2004, after it is accepted by Federation membership in June.