Non-Stop Networking, Walk the Train to DC
For Business Growth Look Beyond Finance
Corrections or additions?
These articles by Michele Alperin and Carole Price were prepared
for the January 24,
2001 edition of U.S. 1 Newspaper. All rights reserved.
Non-Profits: Making the `Big Ask’
People feel that the worst part of starting or running
a nonprofit is asking for money,” says Anne Seltzer, director
of development at the Peddie School. But without significant donors,
the existence of a nonprofit with even the most impeccable mission
will always be in peril. Based on her own experience, Seltzer offers
a straightforward process that she hopes will demystify the process
of cultivating donors for nonprofit organizations.
Seltzer speaks at Community Works’ Workshops for Volunteer Development
at the Princeton University’s Woodrow Wilson School on Thursday,
February
1, 5 to 9:15 p.m. Sponsored by the Rotary Club of Princeton, the $25
cost includes a box supper and two workshops. DeForest B.
“Buster”
Soaries Jr., New Jersey secretary of state, is the keynote speaker.
Call 609-924-8652.
Linda Meisel, executive director of Jewish Family Services,
will teach “Non-Profit Dynamics: Building the Team,” and Karen
Woodbridge of Princeton University will moderate a press panel
on publicity. Dana George of ETTC will talk about using the
Internet as a tool. Marge Smith, who chairs this event, will
do a workshop on leadership for volunteers and staff, and Marty
Johnson, executive director of Isles, will discuss
“Partnerships:
Networking and Collaboration,” with particular interest on trust
issues and turf issues. Claire Schiff-Kohn, Princeton’s new
superintendent of schools, will cover “Strategic Planning.”
Other workshops will be on the basics of volunteering, making grant
requests, conflict resolution, and finance and budgeting.
An organization must build a strong constituency, using focus groups
and public talks, before it can start to fundraise. Focus groups can
provide a sense of how the organization is perceived, what may keep
people from supporting it, and what “hooks” can help get
people
involved. Public talks might focus on what the organization does to
fulfill a particular need, who it is serving, and how the listeners
can help.
Another necessary early step is to develop a board. Seltzer suggests,
“Start with people who have an interest in your mission and
support
what you’re doing.” The board can be fine-tuned later, by either
broadening or narrowing its scope.
Later on, fundraising events-galas, tennis and golf outings, auctions
— become important in developing a base of potential donors. The
amount of money these events raise is not of primary importance.
Rather,
it is how these events connect people to the organization and create
a sense of community. “For the amount of time and effort it takes
for the development office to run the event,” says Seltzer,
“it
could have cultivated one large donor. But,” she continues,
“all
those people get involved!”
Cultivating donors is not a one-time event, but a process that
continues
over many years. In 1993 Walter Annenberg contributed $100 million
to the Peddie School, the largest donation ever given to a secondary
school. But he had given his first gift in 1927, when he graduated
from the school. “We’ve always had a special relationship with
the Ambassador,” says Seltzer. The lesson of the gift, she
continues,
is that it was the result of “successful stewarding over many
years.” When reaching out to an organization’s base of support,
she continues, “You must reach out often — imaginatively and
authentically. Make sure you think with some imagination about how
to get people involved.”
Once the organization has a constituency of people who identify with
it and support its mission, the process of converting a supporter
into a donor is fairly straightforward:
Cultivate the potential donor . Provide material andinformationabout the organization, and invite the person to an event, such asa performance or a discussion. By laying the groundwork, the requestfor money “is not out of left field,” explains Seltzer.”Thebackground work has gotten the person to the point where you can askfor a gift.”Get the appointment . “You don’t want to be coy,”warns Seltzer. Be clear that the appointment is for a meeting to talkabout the organization’s mission and the potential donor’s supportfor it. “You don’t want people to feel you are coming under falsepretenses, and then ask for money,” says Seltzer.Include the spouse . Although it may feel easier to speakonly to the person who has already been active in the organization,remember that a donation comes out of family assets. If both spousesare not present, one might say, “my husband [or, my wife] makesall of the financial decisions.”Know where to meet and where not to meet. Try to schedulethe meeting at the office or wherever is most comfortable andconvenientfor the potential donor. Be aware that a restaurant can presentconfusingor uncomfortable situations. For example, what happens if the moneyrequest is rejected even before the meal has been served? Or, if therequest is to be left until coffee, the whole meal may be spent”waitingfor the shoe to drop.”Whom to take to the appointment. “It is the idealto have two people go to a meeting for a gift,” suggests Seltzer.Two people can more easily gauge donor reaction and pick up on things.In a big organization, the duo might include someone from thedevelopmentoffice as well as the CEO, President, or head of the organization.Script the visit ahead of time. “Specify in advancewho will say, ‘Would you consider a gift of X?’ so that you are notfalling all over yourself,” Seltzer warns. Spend no more than10 minutes welcoming and getting to know the people. Then discussthe organization’s needs and why the gift being requested is soimportant.Finally, pop the question. “If you’re looking for a specificgift,”suggests Seltzer, “say, `would you consider a gift of X?’ Ifyou’renot sure about the person’s finances or interest, you can bring asheet with several levels of gifts and ask, `Where would you seeyourselfon this sheet?’ or `Which seems most appealing?’”Stop and give the person some thinking time . It is easyat this point to jump in and back track before giving the person achance to respond. But don’t do it! Be quiet and wait a minute.Clarify . Both the development person and the potentialdonor probably have questions. Talk about them. Specify how quicklythe money is needed and whether cash or stocks is preferable.Conclude . “Once you have thanked and thanked and thankedthe person, repeat exactly what they’ve said so there is noconfusion,”advises Seltzer. If the person requests time to think, maintaincontrolby stating when and where you will get back to the person. Do notsay, “Please call when you have made a decision.” Thank theperson again, and write a thank-you note immediately after themeeting.Seltzer does not have academic preparation to become adevelopmentdirector. Her undergraduate degree from the College of Wooster inOhio in 1964 was in Latin and Greek Classics, as was her master’s.She taught classics at Northwestern University, but when she movedto Princeton, she needed a job and took “a one year position”teaching English at The Peddie School. As things turned out, one yearstretched into many, and she served as head of Peddie’s EnglishDepartmentfor 10 years. At that time the Head of School, a good friend of hers,died, and she became Acting Head of School. In this role, Seltzerdid fundraising, and, she says, “it became second nature to thinkabout what the school needed and who could help us to fill theschool’sneeds.”After taking a year off from Peddie to work as Adult Program Directorat the Princeton YWCA, she returned to Peddie as director ofdevelopmentin 1993 — at about the time of the large Annenberg gift. Duringher tenure, Peddie’s endowment has increased from $16 to $212 million.Seltzer enjoys the process of bringing people together with a worthycause. “By and large, people like to help people,” musesSeltzer.”If you’ve created a strong need for the organization, you areallowing the person to make a wonderful gift. It is a chance to enrichtheir lives. If you have done your job, you’re not asking people whodon’t want to support and help you; you’re just making thatpossible.”— Michele AlperinTop Of PageLife Science CapitalSenior citizens have attracted recent publicity forcrossing the border by bus to Canada for prescription medicineoriginallyproduced here, but available in Canada at a lower cost. RandallSunberg, of Morgan Lewis & Bockius at the Carnegie Center, willdiscuss the complex interplay of factors affecting pharmaceuticalpricing in the United States in a talk for Equity Research Group’sPrivate Healthcare Company Conference on Thursday, January 25, atthe Nassau Club.An alumnus of Yale (Class of 1977) and New York University Law School,Sunberg was a partner at Shook Hardy & Bacon before joining MorganLewis & Bockius last year. “Upcoming Regulatory Issues Likelyto Affect Life Science Companies,” is the title of his workshop.”Financing Outlook for Private and Public BiotechnologyCompanies”by Samuel D. Isaly of OrbiMed Advisors will be the keynote topicat this conference for venture capitalists and accredited investors.Other presenters are Steven M. Cohen of Morgan Lewis & Bockiusand Thomas Nagle of Valuation Counselors. Conference admission:$150. Reservations are required; call 609-737-0267. Equity ResearchGroup (www.equityresearchgroup.com) raises money for early stagecompanies and does convertible preferred equity placements dealingwith the institutional market or accredited qualified investors.Though senior citizens are now legal purveyors of drugs acrossborders,that may change. An enormous amount of pharmaceutical legislationand litigation is still undecided. Re-importation is just one of theissues waiting for President George W. Bush, Congress, and thestate legislatures. Also watching closely: drug purchasing officialsin managed care facilities. Government entities like the VeteransAdministration and private anti-trust litigants are also concernedwith drug pricing.”A lot of groups not likely to give up are focusing on thepharmaceuticals.New Jersey has cases pending before the Department of Justice wheresoon there will be settlements regarding health care fraud andabuse,”says Sunberg. “The decisions will affect pricing, promotion andreimbursement. What if citizens can get drugs from other countrieswhich are the same product that we have here?” He cites theseissues:Brand Versus Generic . Pharmaceuticals want legislationthat would affect the ability of the generics to get their competingproducts on the market. Companies with lawsuits pending in this areaagainst the Department of Health are Astra Zeneca, Pfizer, Glaxo-SmithKline, and Wyeth Ayerst. They seek to differentiate the generics fromtheir own products from the standpoint that they may not be exactlyalike (the official term is “sameness”) and that there maynot be the same quality control in the generic version. They claimthat the methodology and formulation for producing these drugs areprotected by patents even when the active ingredient is no longerprotected by patenting and is available in the public domain.The issue of bioequivalency . The pharmaceuticals are claimingthat there may be differences in how the branded product and thegenericwork in the body due to patented methods of production. They may alsobe absorbed differently in the body. There may be differences indosaging— one product may need to be taken just once a day because ofpatented breakdown and adsorbability, and the other may need to betaken several times a day.Sameness may not be bioequivalence . The generic companiesnow have to demonstrate sameness to the Food and Drug Administration,and the pharmaceuticals are challenging it to try to get them todemonstratebioequivalence. This is of major concern to companies doing R&D,commercializeddrug production and outsourcing, and those who provide clinical trialwork and manufacturing.”This political atmosphere and environment affects biotechcompaniesthat are essentially innovators working on research projects affectedby these legislative, regulatory and pricing environments,” saysSunberg. “This is what makes Big Pharm say yes or no to them.”Good science is only part of the picture . Breakthroughsin science are heralded and accuracy and precision lauded, butlegislationand pricing also affect production. “Some products may come outmore easily than others — where generics can’t duplicate themor where pricing regulation is easier. All kinds of issues play abig role in this political soup.””There are pockets in the population who also have someparticular interest here and there — lobbyists, special interestgroups like the cancer movement,or an aging population who may beinterested in drugs for osteoporosis and this is added to the mix,too,” says Sunberg. In the meantime, let’s hope your grannydoesn’tget arrested in Morocco because someone misread her prescription!— Carole PriceTop Of PageLand Use StrategiesA two-day land use planning seminar, “PreservingThis Place Called Home,” is set for Monday and Tuesday, January29 and 30 at Princeton University, Robertson Hall. The StonyBrook-MillstoneWatershed Association has planned this seminar for town officials,planners, and citizen groups. For information, call 609-818-9211.More than 30 nationally and regionally recognized experts addresstopics that include sound planning, zoning measures, and ordinancesto plan future landscapes, preserve open space and natural resources,revitalize cities, and fight sprawl. Materials are available atwww.thewatershed.org.Top Of PageNon-Stop Networking, Walk the Train to DCThe Capitol Steps, the troupe of Congressional staffersturned comedians, will entertain at the New Jersey Chamber ofCommerce’sannual Congressional dinner on Thursday, February 1, at 6 p.m. atthe Marriott Wardman Park Hotel in the District of Columbia. It ispart of the annual walk to Washington, so-named because the Amtraktrain to D.C. — which leaves Newark at 11:27 a.m. and stops atNew Brunswick and Trenton — is so packed with networkers thattravelers literally “walk,” shaking hands and handing outbusiness cards, most of the way.For those who prefer a less rambunctious ride, the chamber is runninga second train, called the “Chamberliner.” Reservations maystill be available for the trip; those who are not members pay $575for the train, reception, and dinner. Go to www.njchamber.com or call609-989-7888.About 1,900 people are expected to travel those chartered trains thatday, and the return trip leaves Union Station late the followingmorning.Call 202-328-2900 for hotel reservations with the Omni Shoreham asa second possibility (202-234-0700).Top Of PageLegislative DataThe new edition of the New Jersey Legislative DistrictData Book is available on disk for $50, in hard copy for $45, ortogetherfor $85. It has the most recent election returns for state and federalraces, tables of regional school district data, state totals invariousdemographic categories, and equalized property tax rates. Newresidentialconstruction, net school budget per pupil, retail sales per capitain 1997, and a new measure of per capital income — all areincludedin these statistics.The data can also be obtained on two different disks, organized bydistrict, that can be sorted by municipality or county. One disk hasthe demographic and election information, and the other has contactsand addresses. With two disks and one book, the package is $125. CallJoan Buck 732-932-3640, extension 628.Top Of PageReal Estate GurusArchitects, accountants, financial analysts, investors,asset managers, bank officers, and developers — those who mustdeal with real estate problems in their daily work — MonmouthUniversity has a program for you. The university, based in West LongBranch, offers a five-course Real Estate Certificate program usingthe case study method to stress practical applications.Three courses in the program start in February. “Regulation andthe Real Estate Development Process” begins Monday, February 5,at 6 p.m., and it will be held in West Long Branch. The instructorsare John Giunco, of the law firm of Giordano Halleran & Ciesla,and Peter S. Reinhart of K. Hovnanian Enterprises. Studentswill examine the phases of a real estate project, step by step, fromconcept to sale or lease-up.Also offered in West Long Branch on Monday, February 5, is “RealEstate Appraisal, Valuation, and Income Analysis, taught by DonaldM. Moliver, who also directs the institute. He will presentneighborhoodanalysis, appraisal problems and solutions, and valuation ofincome-producingproperties. He will also give an in-depth review of capitalizationmethods and mortgage equity concepts.At Two Tower Center in East Brunswick, William T. Kitley, vicepresident of GMAC Commercial Mortgage, will teach “Real EstateFinance, Investment, and Taxation.” Using actual deals, he willanalyze finance issues from both the developers’ and lenders’perspectives.The course starts Tuesday, February 6, at 6 p.m. Also at Two TowerCenter, Steven J. Brodman of Scarinci & Hollenbeck will teachreal estate law starting Thursday, February 8.Qualified applicants will have a minimum of three years of experiencein a real estate-related activity, have the support of their currentemployer, and be approved by Moliver. To apply, send a non-refundablefee of $35. Each course costs $725 including course materials andrefreshments. To be taught in the fall is “Lease Negotiationsand Analysis.” Call 732-571-3660.Top Of PageFor Business Growth Look Beyond FinanceCutting costs is a short term route to success, saysAlok Mittra, CEO of a new management consulting and trainingfirm. The way to grow your business is to develop your customers andmarket, market, market.Last fall Mittra left a corporate job to start a management consultingand training firm, Asna Worldwide Group LLC, based at Box 358,PrincetonJunction 08550. He offers training sessions to show business ownersand corporate managers ways to grow sales faster than theircompetitors.The next one-day workshops are Wednesday, February 28, March 7, andMarch 14, from 8:30 to 4:30 p.m. Cost: $295. Call 609-897-9227(E-mail:AsnaWorld@aol.com).A graduate of Oakland University in Rochester, Michigan (Class of1979), he has an MBA in marketing and international business fromCentral Michigan. His 21-year corporate career has included stintsat General Motors, Searle Pharmaceuticals, Unisys, and Bristol-MyersSquibb. His workshop includes eight steps to increase and exceed salesor budget revenue, innovative techniques to win customers, and waysto develop loyalty programs for keeping customers.The son of an electrical engineer, Mittra says he has always beeninterested in how to motivate people to buy. “I entered the salesfield to understand how people behave; I really wanted to have thefirst hand experience.” His “first first-hand experience”as a boy was with a newspaper route. “I did extremely well; Ideveloped a vacant territory and convinced people to get thenewspaper.I was marketing. I showed them the value they would derive from buyingthe newspaper I was selling and the information they would get.”His customers switched from a regional newspaper and even from thestatewide Detroit Free Press to get the local newspaper, the RochesterTimes.Developing customer loyalty is much more cost-effective than stagingexpensive promotions, he maintains. “It is five times more costlyto acquire a new customer than to retain a current one,” he says.”The costs of attracting a new customer easily exceed the grossmargin of the initial order, which means that the company is typicallyout of pocket at the time of the first purchase.””The reason I started this company,” he says, “is thata lot of businesses, even though they have been running for manyyears,have been unable to grow their business. I wanted to show the ownersand corporate executives how to look at a business, what steps youhave to go through to grow a business. Often, they focus on finances.But if you don’t sell the products effectively and focus on marketing,you will never have to worry about finances, because you will notbring in revenues.”Top Of PageSpeakers AvailableCommercializing technology, managing customerrelationships,and how to hire consultants are several of the two dozen topics thatspeakers from the Institute of Management Consultants can presentfor corporations, clubs, and trade associations. The institute, whichhas its Princeton chapter based in Lawrenceville, certifiesconsultantsand has just announced its Speaker’s Bureau service. All topics andspeakers are available at no charge. The list can be found atwww.imcprinceton.orgor call John McCrea at 732-571-1621. For chapter informationcall Paul Gondek at 609-896-4457.Next StoryCorrections or additions?This page is published by PrincetonInfo.com— the web site for U.S. 1 Newspaper in Princeton, New Jersey.
