Episode 45: Starting a Nonprofit with Boss on a Budget

Jeff: Welcome back to the Elevate Your Event Podcast, where we talk about all the various ways you can make your next fundraising event better. We've got a fun cast for you today. We've got a very special guest. We have Tiffany Allen in the studio from Boss on a Budget. And before we get to Tiffany, I want to introduce one of our most esteemed Handbid colleagues, the one and only, Inga Weiss.

Inga: Thank you.

Jeff: And I'm Jeff Porter, CEO of Handbid. Inga and I have the pleasure of chatting with Tiffany. So Tiffany, I want to turn it over to you. Why don't you go ahead and talk about what Boss on a Budget is, what you guys do. And I'm super curious to know how you got started with that name as well.

Inga: Me too. I want to know.

Tiffany: Sure. Thank you for having me first of all. What we do at Boss on a Budget is help people start their nonprofits and raise startup money. It's just that simple, but it gets complicated in the startup journey, as you probably know. The reason I chose Boss on a Budget is because I was literally thinking of how people can own their roles as the founder of the organization, as a CEO, but I wanted to help people who didn't have all the financial resources. So I was thinking, what are the words I could put together to relate to people like that? I came up with Boss on a Budget, and it really has come true. I really do speak to people who don't have a lot of financial resources but have a really powerful mission, and I help them tap into their story so they can launch successfully.

Jeff: That's awesome. So are you chatting with them after they've gotten their 501(c)(3) designation? Are you helping with that process at all?

Tiffany: It's before. It's people who have an idea and they're thinking, I've always wanted to do something. What should I do? Is nonprofit really the route for me? So it's people at that end, but then it goes all the way to people who have launched but don't know what to do next. They have their 501(c)(3) status, but they're confused about how to become full-time with their nonprofit. I do help people with the startup process, getting their paperwork together, because that's confusing too. I like to say that I work with the ideation phase all the way up to about three to five years after launch.

Jeff: That's awesome. And that is such a vulnerable time for charities as they're trying to figure out what they want to do. I remember when we started our charity in 2004. I had some experience, I have a business degree, so I know how to fill out paperwork, but it's still confusing. The federal government is amazing at confusing people.

Tiffany: It's their job to make it difficult. It really is.

Jeff: I got that 1023 filled out, but like anybody else, we knew we were building a charity to support this disorder, but we still didn't know how to do all of the stuff up front. It was kind of like, so what are we going to do now? We're a 501(c)(3). We have a corporation. We have a bank account. That's all you need. But what's next? This is where Tiffany comes in. People have a thought in their head of, I want to go solve this problem. But I imagine what you've got to do is help them understand how they can go solve that problem and how they're going to get the resources into their organization to accomplish that.

Tiffany: The interesting thing is a lot of people are mostly clear on how they want to solve the problem. Their issue is understanding that they have to build an organization around it. Especially as the founder, a lot of what you do isn't doing the work. You can't concentrate only on that, because if you do, you won't have the financial resources to continue. There are so many people who pay for things out of their pockets and get burnt out because they're not focusing on their strategic plan, their fundraising plan, their budget. They don't even know how to do that stuff. They have this realization through the startup phase: wait a minute, I have to actually lead an organization. It's not just about giving back to the community. I have to deal with the IRS and bylaws and policies. So it's a lot.

Jeff: We all love bylaws. Powerful, for sure. So you're chatting with a charity, they've set up their organization, and from a strategic standpoint, you're helping them put together a set of priorities. Where do you start with an organization that comes and finds you?

Tiffany: I tend to tell people to focus on a few key areas. I have a startup workbook that covers a lot of different areas, but the main ones are: first, identify your strategic goals. What do you want to accomplish in a year? But also think about what you look like in year five, year twenty. People don't even think that far ahead. Based on where you want to go, what's going to move the needle in this immediate year? I work with people on goals, and then that translates into their budget. A lot of people don't realize that their budget is just their goals in numbers. When I ask them what their budget is, most people say they don't know. They don't have money in the bank, so why would they have a budget? I help them figure out that their goals align with their budget and then their fundraising plan: how are you going to raise the money to meet your expenses? And then the other piece is marketing and visibility. It's so important as a new organization to show your impact and become more visible. A lot of people think you can't show potential impact because you're super new, but you can. I've helped organizations launch and raise six figures, and they haven't done anything yet. So it's really important to focus on your visibility in media and social media as well.

Jeff: That makes a lot of sense. I've even seen organizations struggle with messaging, and they've been around a long time. They could really take it to a new level if they could better describe not just what they do but the impact of what they do. Where that dollar is going to go. So they've got their organization going, you've helped them build a budget. Now maybe they're bringing in some funds from the grant or the event that they're running. So what's the fundraising plan? How are they going to raise the dollars to accomplish that? Where do most of your clients start? If they have no experience raising money, where do you ask them to start?

Tiffany: I can talk about where I ask them to start and where they tend to go. I have a little framework called the GIF framework. G-I-F. I tell people to focus on grants, but small, local community grants, not the major hundred-thousand-dollar grants first. Then I for individuals, so build up your donor base and get a list of supporters who want to give. And F stands for fee for service or earned income. To be sustainable, you need some kind of earned income source where you're selling a product or service. I try to tell people to focus on those areas, but start with the G and I first. Most people that I encounter go right to government grants or events. Everybody knows how to throw a party.

Jeff: It's interesting you mentioned grants. Do you recommend that they bring in or use a skilled grant writer when they're applying?

Tiffany: You're going to get me in trouble. I don't really recommend a grant writer in the beginning because a lot of people don't have the resources to invest. When you're a new organization, you've got to get your momentum going writing grants. A lot of times you're going to hear no in the beginning. Sometimes people feel scammed by grant writers, which is not always the case, because they say they paid all this money and didn't win, not realizing they don't have outcomes, their financial statements aren't together, they're not organized, and that's part of the reason they didn't win. Sometimes you don't win because it has nothing to do with you; it's the grant funder's decision-making process. Investing in a grant writer so early when you're still figuring things out, I don't think is a wise move. I try to empower people to write their own grants because it is possible.

Jeff: I'm sure at some point AI is going to have a bigger role in grant writing and help some of these folks. For us with our charity, it was Prader-Willi Syndrome Association of Colorado. We were going to help people with Prader-Willi syndrome in the Rocky Mountain region. We started to put this together and looked at whether there were grants we'd qualify for. We did a big research project and found some. I agree that it totally works. Ironically, we didn't do the F part of the GIF. We went right into events because, to your point, it was something everybody could easily fall back on. I think it's a way to drive the I in your acronym. I can bring individuals in, start to build a relationship with them, communicate that we built this charity and this is what we want to do. That all seemed to make sense. But events are hard, are they not?

Tiffany: They are hard. People love the idea of having a party but they forget that there's a purpose behind the party and that's where people get hung up.

Jeff: Do you help your clients with events?

Tiffany: I advise people on events, but I don't necessarily throw events. I'm more in a teaching role and consultant role. A lot of my clients have coming out parties, launch events. So a lot of them do focus on that.

Jeff: Is this a strategy that you feel, from an event perspective, becomes part of a comprehensive donor development strategy that you encourage your clients to hang on to as they grow?

Tiffany: I think if used the right way, it should. There are all different types of events. You can have people doing events in their home, small Friendsgivings or friends fundraisers, and then you can have the full-scale galas or prayer breakfasts or whatever people choose to do. It can absolutely tie into the I. But the problem is most people get caught up in running the event and then they don't collect contact information. They don't foster relationships with the people at the event. They're not really focusing on the mission, not focusing on why they're starting. They're just focusing on making sure the event is literally successful, but there's no purpose behind it. Events are a powerful tool, but they're often misused, especially in the beginning, because people get caught up in just running a party.

Jeff: We run into this a lot. What you're bringing up, we talk to our clients about all the time. One of the key benefits or strategies around events is to either initiate or grow a relationship with an individual donor. Initiate, they're there for the first time. Or grow, they're coming back or they're an existing donor you've invited. It absolutely blows me away when people don't collect the right information when you walk in the door. We see it all the time. Organizations and event managers will say, I don't want to ask my donors for their email, I don't want to ask for their phone number. I want them to come in and have a great time. And they completely forget what the purpose of the event is.

Tiffany: It's good that you say that because I think for us, that's something we're coaching and helping and training these nonprofits on around comprehensive fundraising. Obviously, we live mostly on the event side. But it's only a powerful tool if you do certain things: collect their information, use that opportunity to market yourself and show the impact of your dollars, and then follow up by actually thanking them. How are you going to retain this donor that you just found?

Jeff: It cracks me up. We go to some of these events and at the very end, when they refuse to collect any information, they'll say, how are we supposed to reach all these people to give them their items from the auction? Well, maybe you actually should have collected their email at the front door. Otherwise, you're sending a pigeon.

Tiffany: I like to make it simple. Think about before, during, and after. What are the ways you're going to nurture and prep them before the event? You should be talking to them before. During, what are you doing to further the relationship and show your impact or the impact you plan to make if you're new? And after, what are you going to do to thank them and continue that relationship? It's not just about thanking. You're still communicating your impact to be top of mind. I try to do it so they're thinking about the after before the event even happens, so they don't get exhausted by the time the event is over.

Jeff: I know everybody gets in the weeds. It's nice they have you to remind them there's more to think about long-term besides just Saturday at 11 p.m. when the event's over and you can breathe and have a glass of wine. Or Sunday morning when you get on your knees in front of the altar at church and thank God you made it.

Tiffany: And then what?

Inga: Tiffany, I want to piggyback on that. For organizations having their first fundraising event ever, they're planning this big gala, their first event. What tips would you give this organization?

Tiffany: One of the first things I talk to them about is the goal of the event. If you're inviting people and they don't really know about your organization, and the first time they're hearing about what you do is at the event, they may not give in that moment. They may need more time to feel comfortable investing in your organization. So how have you planned for that? Is the goal really to raise money, or is the goal to build more supporters? Build your email list and think about that first. How many people do you want to get on your email list, or how much money do you want to raise? Have your goals set in stone first and let your activities flow from that. That can help prevent you from falling into the rut of throwing a great event that so many people showed up to, and then you have nothing to show for it. I always tell people to have a goal. And if you're going to raise money, tell people that. The other thing I see is that people get caught up having a party and don't tell people it's a fundraiser. So people are not prepared to give. Or the type of people they invite may not give at events; that's not culturally what they do. They're not used to going to auctions or sit-down dinners where they give in the moment. If you know you're going to ask people, make sure they're aware so they're prepared. Start calling folks, use your network, have personal relationships with the people before they come into the room so that when they're there, you can continue that all the way through. And temper your expectations. Some people think they're going to raise a hundred thousand dollars, but you're not going to raise that much at your first event in most circumstances unless you've done a lot of work. But that's okay. That's your first opportunity to learn, to make relationships, and then you will get to the hundred thousand after that. But you may not do it at that first event.

Jeff: I like that you're saying you have to be out front and bold with the expectations you're setting, not just with your team and your board but also with your donors. This is a fundraiser. We need your help, we need your participation tonight. We need to tap into your generosity because these are the ambitious things we have to accomplish this year. I've seen that work really well. I was standing in the room at a recent event where basically they said, we're going for your gold. Everybody in this room, get ready because here it comes. Don't be shocked when I ask you to raise your hand in the air. Take those rings off. People were chuckling, but nobody was shocked when they said, we have a hundred-thousand-dollar match, we need to raise a hundred thousand in the next five minutes from everybody in this room. That stuff works. I appreciate that you're telling folks that because people tend to edit themselves down. Well, maybe we should just put donation cards on the table. Maybe we shouldn't be so forward. But one person at that table bought the thousand-dollar table. The other nine haven't spent any money yet.

Tiffany: That is so true. Do you have money in the room? We work events with organizations that have been doing this year after year. If you know you didn't have money in the room last year and you have the same people, you still don't have money in the room. Find some new donors to come to your event.

Inga: Well, you're an auctioneer, so part of this is a conversation you have with your clients up front.

Jeff: Here's the other thing, Tiffany. When we have people buy tables or sponsorships, in our experience it's helpful to coach them on the types of people they should bring. Don't just bring your friends or family because they're your friends and family. If your brother-in-law is cheap, leave him at home. Tell him to bid online. Keep them in the silent auction. Do you have clients that need to understand how to get that message across to their key supporters? Hey, I want you to buy a table and bring people that are going to be willing to support us.

Tiffany: I think the way it translates to my audience is that you've got to know your donor and how they give and what motivates them to give. For a lot of my people, they don't know their donors yet, so this is a way to build their list. They're still figuring that out. But it is important to go beyond just friends and family when you're raising money. Who are the other people in your local community, business owners, people associated with grant funders, who have an interest in your mission? There's some kind of alignment. They would love to hear about what you're doing. But a lot of people are fearful because of the ask. They feel like they're begging, or they say it's tough right now, the economy's sinking, why would we ask for money? They forget that people want to give. It's a joyful thing for a lot of people, and you're denying them that opportunity by holding back. It also involves getting out of your comfort zone and being comfortable extending out to other people.

Jeff: We needed you on a podcast during COVID for sure. Do not deny your donor the opportunity to give. Let them say no.

Tiffany: Exactly. My dad just told me today, he said, I was feeling good today so I saw a little boy in the store and I bought him a toy just because I wanted to. And the mom didn't look like she needed it. But he did that because it made him feel good. People forget that's why a lot of people give, because it makes them feel good. They're not even thinking about you. They're thinking about how it feels for them to do that.

Jeff: Why would you want to deny someone that opportunity to feel good? So going back to what you're helping people do to get off the ground. They've got their organization going, you've helped them build a budget, maybe they're bringing in funds from grants or events. From an ongoing standpoint, are you helping them develop a board or an operational plan?

Tiffany: With my coaching clients, I have a whole assessment that covers different areas. A big part is the board. That's what most startups struggle with. Probably most nonprofits struggle with their board.

Jeff: Because they fill it with friends and family?

Tiffany: Exactly right. And they don't make the expectations clear. Their friends and family are there because either they needed names for the paperwork or they asked randomly one day and they said sure, I'll help you out, I'll be on the board. But they don't realize they need to help fundraise, that they're ethically and legally responsible for the organization. They don't understand all of that, and they don't step into their roles when they don't know their roles. Then people get frustrated with their family and friends because they think they don't care enough about the mission, and it offends them. So it's a mess. It is important to build a board, and it takes time, but build one that can help expand your overall network so you can attract the right people and fresh ideas and perspectives. Hold each other accountable for your startup journey and hold the founder accountable. The founder is not always right. It's not about the founder, it's about the mission.

Jeff: Blasphemy, Tiffany. The founder is a visionary. They have a lot of ideas. Some of them are good, some not so much.

Tiffany: That's really important.

Jeff: You have to understand how these organizations work. When we started PWA Colorado, it was filled with friends and family, some other Prader-Willi parents. We hired someone in Denver, and they came in helping with event strategy and grant consulting. The funny thing was, he said, we've got to change your board. I was like, why? He's like, your board's like Thanksgiving dinner. You guys are yelling at each other, talking about stuff, distracting yourselves. We need diversity on your board: diversity of opinion, race, gender, skill set. He was a hundred percent right. Originally, you just recruit people that do work. I'm going to put you on the board because you're going to run my event or get my auction items. But you need legal help, someone who understands how to read a balance sheet, somebody with a sales background who can help with fundraising.

Tiffany: I've been involved in a lot of nonprofit startups and at some point, that comment about the board has been made at every single one.

Jeff: I was a board member for thirteen years. When we started, we ran one event, raised fifty grand. Not bad. Then a hundred grand. Thirteen years later, we're raising three or four million dollars. And this consultant comes in and says, you guys need a board succession plan. I was like, what do you mean? He's like, are you going to be on the board forever? It's going to look better to donors if you have people rotating in and off the board. For the next three or four years, three people need to leave every year. I was like, right here, I've been on thirteen years. I'm ready.

Tiffany: A lot of it is fear too. This is their baby, their idea. The more you bring in what they consider outsiders, it scares them. They keep it close to their chest to maintain the identity of what they want, but they don't realize that sometimes the organization needs to morph, change, and evolve. It's really okay to start with family and friends, but you've got to move on at some point. Sometimes that's all you have. You have to start with what you have, but recognize the importance of evolving.

Jeff: So let's talk about another touchy subject with nonprofits besides their boards: technology and tools. Do you advise on how they need to be building a website or donation management tools or mobile bidding tools?

Tiffany: I love technology. I think this is one of the superpowers that smaller organizations and startups can have that they can leverage over more established nonprofits. Nonprofits that have been around a long time tend to get stuck in their ways and can't be as nimble or try new technology. There's bureaucracy and levels you have to go through. One of the advantages of being small and new is that you can try technology and it can really work for you. I always tell people to use a donation platform, use auction bidding software. It'll make your life easier and more efficient. You need time right now, and you can buy time by using technology. A lot of people I work with have families, full-time jobs, and don't have time to be writing stuff down by hand or putting things in spreadsheets one by one. Use an email marketing system. Use social media. It's free. You can leverage technology to seem bigger than you are.

Jeff: That makes total sense. Going back to the 2004-2005 time frame when we started our charity, the tools available to small nonprofits back then were almost none. But with a tech background and a very tech-savvy wife, we put some stuff together. I found this open-source CRM called CiviCRM, still around and free. We had gone to Blackbaud and Raiser's Edge and asked about a website to take donations and get them into a database. They said their costs were around thirty thousand dollars to get started. Well, we didn't even have a thousand bucks in the bank. So we had to cobble things together. It's very different today, which is awesome, because you do need to start with something. We didn't even do auction stuff until 2011. From 2005 through 2010, we were doing all that on paper, and it was brutal. But at least we could put up a spot where people could buy a ticket or make a donation online. Tools are not just a time saver. They're also a fundraising accelerator.

Tiffany: COVID exploded that industry. Out of nowhere, you started seeing so many different options for nonprofits. If you're not leveraging it, you're missing out.

Jeff: For certain elements, cost is definitely a consideration. Use TechSoup, get a discount on Microsoft Office or whatever. But when it comes to the fundraising side, it's different. It's not just about cost; it's about the opportunity those tools give you. It's less about what it costs and more about what kind of money it will help generate. It's a return on investment conversation. But a lot of charities, when looking at their budget, only focus on the cost.

Tiffany: That makes a lot of sense. When you're doing events, you have a moment to leverage, and technology can accelerate your potential for making money. You could lose out if you don't have it in place.

Jeff: I think there are three things at an event that will help you raise more money that cost money. Do you know what they are?

Tiffany: Technology.

Jeff: Okay, mobile bidding software. Agree. What else?

Inga: Professional staff.

Jeff: The auctioneer. Come on, Inga, you're in the room.

Inga: I am an auctioneer. I one hundred percent believe that qualified, trained, skilled benefit auctioneers help you raise more money.

Jeff: And the open bar.

Inga: And the open bar.

Jeff: Look, I don't think anybody donates based on whether it's chicken or steak on the plate. But if you put out paper bid sheets, you're going to make less money. When people come to us saying they're thinking about going back to paper after COVID, the data has proven that mobile bidding raises more. And the open bar, I haven't done a scientific analysis of dry events versus wet events.

Inga: I have. Personally.

Jeff: I've seen a lot of tickets come into Handbid from sobered-up people on a Sunday asking if they're allowed to refund their twenty-thousand-dollar paddle raise.

Tiffany: That is true.

Jeff: All the questions about invoices on a Sunday morning. Anyway, Tiffany, we don't want to take up all of your day. I have one final question. Is there a spot where you feel like you kick them out of the nest and you're done, or do clients stick with you long-term?

Tiffany: That's a good question. Nobody's ever asked me that before. Probably at the point when they're ready to hire, and one of those first serious hires needs to be a development person. Once they're able to get that going, they probably don't need me and need a different consultant that can be more intense with them. I really focus on building the foundation so they can be prepared to hire and scale. If I had to put it in numbers, maybe once they hit that six-figure mark. I try to get them there, and then they need to start investing in somebody else.

Jeff: You really are the incubator. You're the one getting them from birth to some sort of self-sustainable condition. That's awesome because there's a lot to be done in that stage of a nonprofit.

Tiffany: There's a lot you can miss too. There's a huge learning curve, and when I started, there wasn't a lot of good information about how to start literally from the ground up. Everything around nonprofits and fundraising talked at a higher level, and I'd think, I'm at this starting point and I don't know if this applies to me. You're afraid to ask questions because you look unqualified. But the reality is most people don't know the answers even if they already have a nonprofit. I wanted to make a comfortable space where people could learn with no judgment.

Jeff: I think that is awesome. Everybody's going to eventually learn, sometimes the easy way, sometimes the hard way. For us, without hiring a consultant, we wouldn't have known half the stuff we needed to be doing. Even at FPWR, when we tried to figure things out, we'd always look at what JDRF does or how other organizations handle it. Everybody's always looking for a model or advice. It's fantastic that you're providing that because you could always pick the bad model. It's great to have somebody that comes alongside and fills in the gaps and steers them in the right direction.

Tiffany: It's an honor to be in that position. It's fun to see people get to that level.

Jeff: A couple questions to wrap up. Boss on a Budget, is this limited to the D.C.-Baltimore area or do you have clients beyond that?

Tiffany: I have clients nationwide and people find me from across the world.

Jeff: How many languages do you speak, Tiffany?

Tiffany: One.

Jeff: That's awesome. And if someone wants to reach out, how can they find you?

Tiffany: You can find me on YouTube. Just put in Boss on a Budget. I actually go live every Sunday night, so you can see me there. And you can also visit me on my website, bossonabudget.com. I'm building a new community, a different kind of launch community for founders, whether they're for-profit or nonprofit. I'll be sharing information about that on my YouTube channel.

Jeff: You guys heard it here, Boss on a Budget. Check her out on YouTube. Tiffany, it's been a pleasure chatting with you today. Thank you for the service you're providing so many nonprofits that so desperately need it. You're a true hero in our space. We appreciate that.

Tiffany: Thank you. It's my pleasure.

Inga: Tiffany, so nice to meet you.

Tiffany: You too.

Jeff: Let's wrap up this episode of Elevate Your Event. Inga, thanks for joining me. If you guys are with us for the first time, you can check us out on YouTube, Apple, Spotify, anywhere else you listen to podcasts. Leave us a five-star review. If you have any other questions or topics you think we should cover on a future episode, click that subscribe button and shoot us an email. Until then, happy fundraising.