Author: Len Moisan
Happy 4th of July
This year I thought I’d do a little research on the 4th of July. Specifically, I wanted to learn more about the document that started it all, the Declaration of Independence. During my study I found that Elizabeth Harrison wrote a most informative piece entitled, 9 Things You May Not Know About the Declaration of Independence.
I already knew that 242 years ago, 56 brave Americans signed the document authored by Thomas Jefferson. Actually the 2nd Continental Congress met on July 1, 1776, and on the next day 12 of the 13 colonies approved this motion for Independence. However, I was surprised to learn that the document wasn’t accepted as Jefferson originally wrote it.
A Continental Congress of Substance
They debated and revised, and it wasn’t approved until two days later. Then, even though it’s dated July 4th, it took several weeks after that for all of the delegates to sign it. I was also surprised at the age difference of the signers. The oldest delegate was Benjamin Franklin (70) and the youngest was South Carolina lawyer, Edward Rutledge at 26. Yet despite these differences they were all of one mind when they pledged their lives, their fortunes and their sacred honor.
What I find most interesting is that several hundred copies of the Declaration were printed on July 4th. In fact, an original copy was discovered in 1989, hidden in the back of a $4 picture someone bought at a flea market. It eventually sold for $8.1 million.
Our Nation’s Birth Certificate
That price made me wonder why this document is so valuable. Certainly there’s the antique value of a document that old, but it’s more than that. The Declaration of Independence is our nation’s birth certificate. It’s a statement of freedom both for our country and our citizens.
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”
I look forward to this celebration like I do every year. We’ll share in the festivities at the home of our good friends Bob and Sue. They’ll organize games for the kids, and there’ll be swimming, cornhole, great food and fireworks. As part of their kitchen centerpiece, they’ll have a replica copy of the Declaration of Independence. It’s a reminder of the freedom we enjoy and the freedom Americans fought and sacrificed for throughout our history.
Heroes Among Us
Certainly Bob knows something about fighting for freedom, having served as a Marine during the Vietnam era. Bart will also be there with his family. He served for 20 years as a Navy Pilot and his sons-in-law, Andy and John, also served 20 years. Along with those guys will be Jay, a 20-year Air Force veteran and Ken with 20-years in the Navy. Then there is my son-in-law Brian, who is currently a Lieutenant Colonel and a pilot in the US Marine Corps. He leads a dual command and has one deployment to Okinawa and two to Iraq. He’ll be there too. Finally my father-in-law, who survived the Bataan Death March and 3.5 years in Japanese captivity, won’t be there. But we’ll celebrate his service as well.
Of course, there’ll be plenty of people like me there who have not served. However, they’ll all be aware of the service and dedication of these men in support of our freedom. No doubt, this will be a great day of rest and celebration, but we must also remember that we enjoy this day because others around us have so selflessly fought to preserve our freedom.
Wow! Americans are Really Generous!
Currently the economic outlook is improving almost daily. Consumer confidence is the highest it’s been in 18 years. The markets are setting new records daily. In fact, on November 7, 2016 (the day before the election) the Dow was a little over 18,000, and at the time of this writing it was 24,700. Also, at 3.8% unemployment is now at an all time low, and the GDP is expected to exceed 4.0 %.
Economic Prosperity Influences Giving
The economy is growing and that is good news for churches and nonprofit organizations. Not surprisingly giving has also reached an all time high. Each year around this time the study, Giving USA has been published and the news is usually very good, especially for those in the fundraising community. This year is no different as clearly we are experiencing a time of economic prosperity and giving in America shows it.
Consider that for the first time giving has exceeded $410 billion. The breakdown is even more interesting:
- Giving by Individuals……70% of the total or $286.65 billion
- Giving by Foundations…16% of the total or $66.90 billion
- Giving by Bequest…………9% of the total or $35.70 billion
- Giving by Corporations…5% of the total or $20.77 billion
Individuals Lead the Way
What I find interesting is a further analysis of those numbers. Consider that while “Bequest Giving” is a separate category on this report, individuals are actually the ones who make bequests. Also there are some 300,000 donor advised funds in the US (many through community foundations) and combined with family foundation giving it accounts for nearly 50% of foundation giving. Again, most of these giving decisions are also made by individuals.
That means that in reality, some 85-87% of all giving comes from individuals. That’s important for nonprofits in particular to understand. As fundraising consultants, too often we find organizations put an over-emphasis on grant writing and an under-emphasis on the cultivation and solicitation of individuals. It doesn’t mean that grant writing is unimportant, but it’s no way to build a sustainable development program.
Faith Prompts Generosity
Also, while every category of giving increased, the largest giving categories were as follows:
- Religion…31% of the total or $127.37 billion
- Education…14% of the total or $58.90 billion
- Human services…12% of the total or $50.06 billion
- Giving to foundations…11% or $45.89 billion
- Health…9% or 38.27 billion
Of course, what is not calculated here is giving to educational, human service or health care institutions for religious purposes. The point is that many people who give are motivated by a benevolence that comes from their faith. In fact, about 75 percent of people who frequently attend religious services gave to congregations, and 60 percent gave to religious charities or nonreligious ones. By contrast, among those who do not identify a religious creed, only 56 percent make charitable gifts.
Lessons Learned
So what can we learn from all of this? Several things:
- First, Americans are quite generous. In fact, they are by far the most philanthropic of any nation.
- Second, faith-based people tend to give more than non-faith based ones. Therefore, despite what others may contend, research shows that faith is still an important component in giving.
- Third, giving by individuals accounts for at least 85% of the total. Therefore, building individual giving programs should be a top priority for nonprofit organizations.
- Fourth, do some strategic planning on ways to get to know and build a relationship with the CEO of your Community Foundation. They are the gatekeeper for donor advised funds.
- Finally, while Americans are quite generous, you won’t get your philanthropic share of their benevolence unless you establish organizational or ministry excellence, build relational capital and then ask people to help advance your mission.
If you would like more information on the Giving USA data and how to apply it to your own organization, join us for an upcoming session led by The Covenant Group at the Center for Nonprofit Excellence. Watch our website for updates.
Friend-raising Requires Fundraising
Often when we work with nonprofit organizations and even churches, we see an active willingness to organize what is called “friend-raising” events. We hear apologists claim that these events will easily lead to increases in membership or the number of donors and the amounts they give. In fact, one CEO said, I’d rather have friends than donors in my organization.”
Labor Intensive and in Need of Follow–up
First, events are labor intensive and they put considerable stress on staff. They should either end in or at least lead to the bottom line results measured in increased membership, donations or both. However, to achieve that also requires a plan with active follow up requests. If results don’t happen the organization should re-think whether the event is worth the effort.
Second, related to the first point is the fact that cultivating friends and attracting folks to non-profits is important and valuable. However, the problem with many organizations is that it never gets beyond that point. Whether it’s fundraising in a nonprofit organization or a church, funds don’t get raised without someone asking someone else to make a commitment.
But the Board is not a Fundraising Board
The question is often asked of our associates, “Well what if the board is not a fundraising board?” The answer to that one is simple. There is no such thing as a non-profit board that is not a fundraising board. Now that might be slightly different in a church, but even in church capital campaigns, someone must ask someone else for funds.
That’s why according to a 2017 Leading with Intent survey of 1378 participants revealed that most nonprofits (68%) have policies requiring personal contributions from the board, and a similar amount (67%) explain expectations related to fundraising during recruitment.
In light of the fact that government support (federal, state and local government) for nonprofits is declining, the need for private philanthropic support is growing. Now more than ever, nonprofits need board members to be active in fundraising.
Of course there are lots of ways board members and other volunteers can be involved besides making solicitation calls. Some host receptions in their homes; others open doors, set up appointments and even accompany the CEO or development officer as they make “the ask;” still others are involved in making “thank you” calls. All of these strategies are important in increasing donations.
In fact, one study showed that when donors receive follow up “thank you” calls from board members within days of making the gift:
- 93% said they’d give again if asked
- 84% would “make a much larger gift” and
- 74% would “continue giving indefinitely.”
Staff Members Need to be Active
Nonprofits also need staff to be active in fundraising. When I was a vice president in higher education, we regularly tracked cultivation and solicitation visits. Staff members had goals and we helped one another achieve those goals. There was accountability, but that kept us on track.
I remember asking one associate at our weekly staff meeting about the status of a major donor. He told me simply that he was cultivating him. After several weeks of this, I realized it was a pattern. I could see he was busy, but the results weren’t there. There were no major or capital gift requests in his plans; only cultivations. Finally I told him what I’ve told many of our nonprofit clients: continuing cultivation without an eventual harvest results in waste.
In quite a few organizations, people are rarely asked. In fact, the Leading with Intent study showed that only 40% of nonprofits have board members actively involved in fundraising. It’s certainly important to cultivate friendships, but if nonprofits are to advance, those friends also need to become donors.
Transforming Followers Into Leaders
Recently I witnessed an unfortunate incident. A very successful church that had experienced rapid church growth lost its founding pastor. After increasing turmoil he was asked to leave. It created quite a stir, because many within the congregation thought highly of this pastor. The conflict didn’t emanate from any moral failing; it came from disagreements about leadership style.
Unfortunately, the church’s governance structure didn’t help matters. The staff the pastor hired and supervised were also made elders. Certainly there were complaints from employees that the pastor freely admits were shortcomings. Some felt they were being directed more than led; others alleged the pastor was somewhat despotic.
However, all of this seemed a bit extreme and probably could have been avoided. The players needed simply to understand their roles and communicate in a manner consistent with Matthew 18:15-17. I’m sure I don’t have all the details, but when organizations begin to falter, it’s usually because leaders and/or followers aren’t willing to communicate effectively.
Transformation over Exploitation
First, the leader-follower relationship is more about transformation than exploitation. Specifically, leadership is the intentional transformation of people and organizations for the better, which implies two-way communication. However, that concept sometimes gets lost in pursuit of individual agendas, like they did at this church.
A Lesson from Dickens
A Christmas Carol, offers a good example of transformational leadership. The main character Scrooge was led (by spirits of Christmas past, present and future) through purposeful and sometimes painful experiences that transformed him. When they were done, Scrooge clearly understood his own selfishness and the needs of others around him. He used his resources to transform lives of others because he himself had been transformed. James MacGregor Burns defines this as transformational leadership, where leaders recognize and act on higher needs in followers (love, hope, esteem) and engage them fully. According to Burns,
“… transforming leadership raises the human conduct and ethical aspiration of both leader and those led. Leadership occurs when one or more persons engage with others (so) that leaders and followers raise one another to higher levels of motivation and morality. Their purposes, which may have started out as separate transactions, become fused.”
In other words, though leader-follower relationships begin transactionally, they shouldn’t end there. As leaders earn credibility through transactions with followers, they gain power to elevate followers in transformational ways. As Burns says, transformational leadership moves followers “to higher levels of motivation and morality.” However it also implies loyalty and commitment towards the leader. In the case of the church those characteristics were lacking. In fact, their unrealistic expectations never allowed them to get beyond the transactions.
Jesus – A Model Leader
No leader has influenced more people or changed the world more profoundly for good than Jesus of Nazareth. In Jesus, we have arguably the best example of transformational leadership.
Jesus understood the intrinsic value and human needs of followers. Initially He engaged in transactions that He initiated. For example, He filled their boat with fish, thereby gaining credibility and their allegiance. Throughout all of His interactions, Jesus related to followers in ways that demonstrated genuine regard for them. That regard was manifest in multiple acts of love, kindness and service He performed, and it transformed them.
As a result, His disciples deepened their commitments both to Jesus and the common purpose they shared. Specifically, by teaching, challenging and loving these followers, Jesus transformed them into courageous and committed leaders. His mission became their mission. So powerful was their transformation, that they boldly followed Jesus in ways that cost most of them their lives. Yet, the power to lead and transform came not through Jesus’ positional power. Instead it came through relational power that Jesus built with His followers. As nonprofit fundraising consultants, we see that churches and other organizations excel when they follow this same model.
Effective Leaders Understand Purposes and People
Leadership, and particularly “covenant leadership,” involves more than just understanding the organizational purpose; it also involves understanding the people who have that purpose in common. In fact, without followers working cooperatively towards the common purpose, leaders can hardly expect significant success.
Understanding Individual and Organizational Purposes
As a leader that means I must understand the people I lead as well as the purposes we serve. If people are the key to success, then leaders must know, attend to and listen to followers with focused precision and sometimes make adjustments. Success is not just about the leader’s personal ability or knowledge of processes. Sure that’s important, but to lead, leaders must actually motivate others to follow them. The late leadership guru, James MacGregor Burns commented simply, “Without followers there can be no leadership.”
Accordingly, if leaders need to know and serve the people around them, then they also need to spend time talking and listening to them. Wharton School Professor Stewart Friedman wrote on becoming a better leader. He commented simply, “If I account for the interests of the whole person, not just the work person, I’m going to get more value from them.”
Serving Mutual Needs
This comes full cycle because leaders seek eventually to engage the “whole work person.” Yet for that to happen, it also means that leaders can’t simply pursue their own selfish purposes. The focus should also be on pursuing common and ethical purposes that promise to serve the mutual needs and goals of all organizational partners. Essentially, covenant leadership achieves all of that and more by respecting and listening to the needs and ideas of others and then making appropriate changes and empowering people to do their jobs. That’s what builds trust, binds people together and increases productivity. In nonprofit fundraising it is also what builds donor engagement and retention. This is not just soft rhetoric; there are hard numbers to support this logic.
Consider Cisco Corporation. Between 2012-2017, the company had a 15% increase in their workforce and yet by listening to worker needs and ideas they were able to reduce their real estate portfolio by 30%. They closed 241 buildings, saving $196 million in operating costs and gaining $288 million from building sales. They also took the emphasis off of individual work and put a new emphasis on collaboration and community. That helped them achieve a 17% increase in both employee engagement and workplace satisfaction. It also allowed them to grow in profitability from $6.5 billion in 2011 to a high of $10.7 billion in 2016.
Balancing Individual and Organizational Trust with Accountability
Stakeholder trust must be balanced by stakeholder accountability. Maximum productivity requires that professional and personal stakeholder purposes are served, but stakeholders must also serve the larger purposes of the organization. In fact, common purposes actually link stakeholders together in a common bond. That’s why, individual purposes must always tie directly to and find fulfillment in achieving the larger purpose of the organization.
If leader-follower relationships are productive, they will be formed by the convergence and subsequent fulfillment of individual and organizational purposes. Of course, this again does not divest the organization and its people of accountability. That simply wouldn’t be fair to folks who are engaged and working hard. Thus, the chief needs of stakeholders must also be both integrated with and balanced by the larger organizational purposes.
Finally, once leaders understand both the individual and organizational purposes, they must pursue those purposes in ways that everyone understands and embraces. That doesn’t just happen by chance; it takes deliberate and strategic planning on the part of leaders. Does it sound like a lot of work? Sure, but it’s also rewarding when everyone succeeds.
Effective Leaders Demonstrate Civility Through Grace
There is an alarming lack of civility in America that we see daily, simply by following the news. A recent study of 1,126 adults on Civility in America, revealed the following:
- 84% have personally experienced incivility
- 59% quit paying attention to politics because of incivility
- 34% have experienced incivility at work
- 9 in 10 say that incivility leads to intimidation (89%), harassment (89%), discrimination (88%), and violence (88%)
- 75% blame politicians, 60% social media and 59% the news media
- 75% believe that incivility in America has risen to crisis levels
Civility Defined
So what do people mean when they mention civility? Study participants describe it as respecting and honoring people, tolerating them or remaining polite when you don’t feel like it. Mahatma Gandhi said this:
“Civility does not mean the mere outward gentleness of speech cultivated for the occasion, but an inborn gentleness and desire to do the opponent good.”
What they’re really talking about is expressing grace, which also happens to be an important leadership trait. The kind of grace I’m talking about here often manifests itself in forgiveness and tolerance. By definition it’s unmerited favor, and when leaders extend grace to others, it increases trust and goodwill and deepens relationships. This is true both in corporate America as well as in nonprofit fundraising organizations.
Grace in Action
A clear example of grace is found in a story about two of our country’s most esteemed leaders, John Adams and Thomas Jefferson. Though they had a lifelong friendship, they had many differences, and for a period they were estranged. However, reconciliation came in their later years, and they wrote 158 correspondences between 1812 and 1826, which are now famous.
Evidence of this leadership trait is found in an incident that occurred in 1823. Several letters that Adams had written earlier in his career were reprinted in the newspaper. Adams had been less than complimentary of Jefferson, calling him a “duplicitous political partisan.” The newspaper obviously tried to stir up trouble, but Jefferson responded with grace and forgiveness by writing the following to Adams,
“Be assured, my dear sir, that I am incapable of receiving the slightest impression from the effort now made to plant thorns on the pillow of age…and to sow tares between friends who have been such for nearly half a century. Beseeching you then not to suffer your mind to be disquieted by this wicked attempt to poison its peace, and praying you to throw it by.”
So relieved was Adams at Jefferson’s graceful words, he insisted that Jefferson’s letter be read aloud at breakfast to his entire family. Jefferson had given a gift of grace to his friend and that gift was motivated by his love and admiration for Adams. Jefferson’s actions depict what good leaders do; they forgive by disassociating actions or mistakes from a person’s value. It reminds me of what Soren Kierkegaard once said:
“Through forgiveness love covers a multitude of sins. Forgiveness takes away that which still cannot be denied as being sin. So love strives in every way to hide the multitude of sins; but forgiveness is the most outstanding way.”
Forgiveness and Grace Embody Love
When leaders forgive they demonstrate value for people and relationships beyond their immediate actions. Essentially leaders extend the gift of grace to people, which tends to break down barriers and deepen relationships. Using Kierkegaard’s description, Jefferson demonstrated not only that he valued Adams, but also that he loved him. Ultimately, the most effective leaders embrace grace and forgiveness and demonstrate a form of love. That doesn’t negate accountability between leaders and followers, but trusting people and extending grace also builds trust and increases the likelihood that accountability will be self-imposed.
The Best Leaders are Teachable
Wisdom From Solomon
I read something interesting recently in Proverbs 26:12 that speaks clearly to an important leadership principle. “Do you see a man who is wise in his own eyes? There is more hope for a fool than for him.”
Some might think Solomon’s words here are harsh. Yet, the longer I work in organizations, the more I see the wisdom in what Solomon said. What he’s talking about here is being teachable, a key trait of leaders.
However, teachability assumes a certain amount of humility. That’s because teach-ability requires leaders to admit that somewhere out there, there’s someone who knows more than they do about a specific subject. That’s not always easy for “the person “in charge” to do.
The Good to Great Difference
However, that’s what Jim Collins found in Good to Great companies. These organizations outperformed the market at a rate that was 7 times higher than average. Interestingly, they all had level 5 leaders who combined an unwavering commitment to the mission with a personal level of humility. In such cultures success is not for the leader’s glory but for the advancement of the organization.
This is particularly true in the pastorate. When we’ve helped churches organize fundraising campaigns, we’ve found that the pastors who are most teachable also seem to be the ones that are the most successful.
In fact, over our 20-year history of working with churches, we’ve only had one church fail to achieve its goal. However, we’ve had several examples of churches where pastors have not been as successful as they might have been, because they’ve not been as teachable as others.
For example, our church campaigns usually include a planning study. During that study we conduct some internal analysis of giving over a three-year period along with face-to-face interviews and a church-wide survey. That process helps determine the giving capacity of the church and the congregation’s propensity to give to this project. But pastors don’t always pay attention to what we tell them.
For example, at one church that failed to achieve its goal, we recommended a slightly longer pledge period. The congregation had many young couples that didn’t have much discretionary income. The pastor disagreed, commenting that they needed the money ASAP. He just didn’t want to wait for the longer pledge period. They also failed to implement other key recommendations we made and ultimately came up short of their goal.
Being Teachable Promotes Success
However, another church that had failed in a previous campaign came to us for help. The new pastor did a great job of motivating the church members, and they followed everything we recommended with enthusiastic zeal! As a result, they exceeded the goal, even though it was more than 50% larger than the first goal.
What’s the difference? The latter pastor was quite teachable and the former pastor was not. As a leader of any enterprise, you have to admit that you don’t know everything and then be willing to embrace new knowledge. That’s how leaders get better at their craft.
Pastor Matt Keller wrote a book entitled, The Key to Everything.
He notes, “The more successful you become, the less you become teachable…highly successful people know how to handle success successfully…(and they also) don’t let their failures define them.”
Sometimes both leadership success and failure can stunt a leader’s growth. It never ceases to amaze me how some pastors hire us to be their fundraising consultants and then ignore our recommendations. The secret is to have accountability structures that challenge pastors or CEOs to continue learning and seeking help no matter how good they are.
Pastor and philosopher Meister Eckhart put it this way. “Be willing to be a beginner every single morning.”
And They’re Off!
It’s Derby Week! Every year for two weeks everything in Louisville is timed around events leading up to the Kentucky Derby. There are hot air balloon races, a human race, a balloon glow, a bed race, a parade and many, many other events.
At Thunder…Leadership Flies High
It all starts with Thunder Over Louisville, which begins at 3:00 pm with an air show and ends with a gigantic fireworks display. It is the largest combined air show and fireworks display in America.
This year my son-in-law, Lt. Colonel, Brian Stempien, flew his Cobra helicopter for the event, along with several other Marines in his unit. As I watched, I couldn’t help but think about what some of these men and their families have sacrificed. Brian himself has had two tours of Iraq and one of Okinawa. The other men have had similar experiences.
What is striking is how bright and capable all of these men are. They are all college graduates from outstanding universities…all polite and articulate…and all stand ready to defend their country. They’re young, intelligent, successful and clearly among America’s best and brightest.
Flying Under the Radar
Of course, the jets that flew in the show got a great deal of attention, because they are big, fast and a lot more visible. The men and women who fly them are also among our best and brightest. Still, by comparison, the Cobra unit and the Huey’s that accompanied them got very little attention. Most of the names of the jet pilots were mentioned, but not those of the Cobra and Huey pilots. In fact, the narrator’s only comment was that Cobras were active in the Vietnam War.
That’s true, but Cobras were also active in the Gulf, Iraqi and Afghanistan wars. Consider this from an online article I read:
“During the March 2003 Iraq campaign, 46 of 58 USMC Cobras took battle damage, mostly from infantry-type weapons. In late August 2016, Marine AH-1W Cobras flying from the USS Wasp started flying combat missions over Libya against the Islamic State of Iraq…providing close air support for friendly militias on the ground.”
As I reflected upon all of this, I was reminded of a very important leadership lesson. Often the more visible folks who sometimes travel in the fast lane seem to get a lot of attention. However, real success is not only the result of visible leadership, it also comes from leaders working quietly in the background to provide support for their teams.
Not that CEOs are unimportant. They are just as vital as generals are in the military, particularly if they’re what Jim Collins described as Level 5 leaders. Still, often there are other leaders operating in the background that contribute greatly to the success of the team, the business, the organization. Every once in a while, their contributions need to be recognized and made visible.
We Salute You, Lt. Colonel Stempien
To that end, I want to recognize my son-in-law, Lt. Colonel Brian Stempien. This week Brian will assume dual command of two Cobra Helicopter reserve units for the USMC. Not many people will know about this change of command.
True Brian’s wife Sarah, his five children, his extended family and his law partners at Travis, Herbert and Stempien will all know. But I want as many people as possible to know. I’m proud of Brian, his quiet leadership and his 21 years of service to our country. He has proven that he clearly takes the USMC motto “Semper fi” to heart.
And for all of you who have leaders like Brian in your company, your church or your nonprofit organization, why don’t you take a few minutes to recognize their contributions.
Finally, to all of our readers and to everyone else, let me just say as we do in Kentucky, “Happy Derby!”
Leaders Acknowledge Contributions
What may start as a trusting relationship often erodes when people take each other for granted. For example, higher turnover rates among employees can sometimes signal a lack of appropriate recognition. While taking people for granted happens regularly in organizations, it also has adverse effects on productivity. When leaders fail to acknowledge the value and contributions of followers, it doesn’t take long for them to stop contributing.
Being Motivated by Hearing What You do Right
For leaders to build a foundation of trust requires not only giving people meaningful work to do but also treating them well as they do it. An important part of treating people well is acknowledging their contributions. In fact, a 2013 Globoforce study showed that 89 percent of people are more motivated by hearing what they’re doing right than by hearing what they’re doing wrong. Likewise, nearly 80 percent of study participants looked for recognition to be given close to the time they performed. In nonprofit fundraising recognizing and appreciating donors and volunteers for their contributions is key to retention.
John Wooden is arguably the most successful college basketball coach ever. In the 1960’s and 70’s he guided UCLA to an incredible ten national championships in eleven years. When I interviewed Coach Wooden, he noted that it was essential to acknowledge the contributions of all players on his team, regardless of how small their role was. He illustrated this point by sharing an analogy he used with his players,
“I would say, we’re like a powerful automobile and this player…Jabbar, is the powerful engine. You now, are only a wheel; and you over here are only a nut that holds that wheel on. Now which is most important? What good is that engine if we don’t have wheels? What if you don’t have the nuts holding that wheel on? You also need somebody behind that wheel directing or you’ll go in circles. You all have an important part. I made a special effort at practice to let those who aren’t playing very much know how much I appreciated them.”
Receiving Recognition Beyond the Ordinary
Appropriate recognition comes in many forms, but to be effective occasionally it should go beyond the ordinary. Sometimes that means allowing contributors to share in the profits. For example, San Antonio Shoe Company in Pittsfield, Maine made national news one year when owners of the privately held companies recognized employees in a special way. Right before Christmas the management team gathered employees and announced that they’d receive a one-time bonus. Each employee would receive $1,000 for every year of continuous service. In their announcement, they thanked employees for their loyalty and dedication and for helping make San Antonio Shoe Company a success.
In the case of one married couple, each spouse had worked for the company for 19 years, which meant together they received $38,000. While that level of profit sharing is not always possible, in this case it went a long way towards acknowledging the contributions of workers and building good will and trust. In fact, the company website says, “San Antonio Shoemakers has built the company around appreciating and respecting our workers.”
In other words, appreciation and respect are keys to their success. Getting more from relationships requires giving more, and when people begin to trust and give freely they move out of the realm of contracts and into the realm of covenants. Certainly, covenants are far more complicated than contracts. They require leader and follower willingness to trust one another and give rather than just receive from the relationship. In essence, it means acknowledging contributions of each other, but it also means sharing talents, resources, problems and even revenues in ways that create a culture of mutual trust and productivity. As fundraising consultants, we advise our clients to create covenants with donors, staff and volunteers to build engagement and retention.
Integrity…Integrity…Integrity
When a leader’s integrity is questioned, the entire organization is often affected. That’s particularly true when pastors are charged with integrity breaches. Why does it happen? How does it happen? Consider the following illustration from an older but still famous case.
Jim Bakker wanted to serve God when he founded PTL in 1974. Many people who shared that vision joined him in his work. The ministry espoused Biblical principles and projected an image consistent with high ethical standards. Thousands of people trusted Jim and Tammy Faye, and in a very real sense they made a covenant commitment to the ministry. In fact, PTL referred to donors as partners. However, the entire ministry lacked fundraising accountability. It was easier to get things done that way, and their many abuses are now well known.
Lack of Accountability Brings Integrity Beaches
It’s hard to say exactly when Mr. Bakker lost sight of his obligation to the organization, the people and the common purpose he’d served. However, that breach became obvious in 1987 when he resigned, admitting to an extramarital affair and financial scandal. The covenant he shared with his wife, employees and partners had been broken, and his integrity had been deeply compromised in large part because he lacked accountability. At best his board rubber-stamped everything he wanted to do.
Two years later he was indicted on 24 counts of mail fraud, wire fraud and conspiracy. It became evident that Mr. Bakker had trashed the principles he espoused in favor of selfish motives, opulence and power. Eventually he was convicted of defrauding followers of $150 million. As a result of his lack of integrity and accountability in his relentless pursuit of increasing donations, the noble purpose and the common good it served were lost.
Effective Leaders are Guided by Principles not Power
Jim Bakker served 5-years of an 8-year sentence, eventually being released for good behavior. The lesson of leadership here is clear. Most organizational heads have power. How they use power, and whether or not it’s aligned with key principles, determines whether they’re leading or power-wielding. In Mr. Bakker’s case he abused his positional power, compromised his integrity and violated the trust of followers.
As a result of violating that covenant he forfeited his credibility and his opportunity to lead. He chose his own self-interest over the common good, and a lot of people got hurt. Effective leadership demands that principles and not power guide the leader’s actions. Apart from that, it’s impossible to achieve trust or mutual accountability, both of which followers desire. This does not suggest that leaders never use power, but their power use must be guided by common principles that everyone understands.
Relying on Transcendent Truth
That’s exactly the idea upon which the civil rights movement was built. In his Letter from Birmingham City Jail, Martin Luther King, Jr. said simply that, “just law is a manmade code that squares with the moral law or the law of God.” Dr. King argued further that God’s law is objective moral truth, and therefore authoritative and superior to man’s law.
Whether it’s a business, a charity or a church, ethical and responsible behavior must align with common principles that come primarily from God’s law. However, if principles are relative, then what’s considered “ethical” and “constructive” changes based on situations and preferences. However, today that logic would have defeated the civil rights movement and dissipated its moral high ground because Dr. King relied on Biblical truth to support his mission.
In Jim Bakker’s case he showed contempt not only for civil law, but also for God’s law and he paid a price. Hopefully, other pastors and leaders will learn more about leadership from Martin Luther King’s accomplishments than from Mr. Bakker’s mistakes by building accountability structures and leading by truth.