Forget Friday the 13th, Part 10. Forget Lestat or Frankenstein. How's this for a real horror story, the stuff of nightmares? You are busily preparing for your biggest fund-raising event of the year when, out of the blue, the star attraction calls to cancel.
Unfortunately, this was no nightmare for Baltimore-based Magic Me, a national nonprofit that brings together youth and senior citizens. It was reality. The cancellation came just three weeks before their planned Nov. 9 big event, an appearance by the world famous Moscow Circus designed to benefit Magic Me's programs.
Projected net earnings of $65,000 suddenly evaporated.
"We were crushed," reports Julie Ellsworth Cox, director of development for the charity. "We had to immediately make a decision. Should we plan another event and spend more money, or should we do something else to keep the momentum going?"
The circus cancellation triggered a series of events that are instructive for nonprofits facing a crisis. In fact, crisis management is an art form that is taught today by many national management companies.
The first step Magic Me took was to pull its internal staff together for a reality check. Invitations to the event had already been sent. Corporate donors had pledged, and in some cases already paid, funds to underwrite the event. They set up a conference call with board Chairwoman Julie Mercer and founder Kathy Levin.
The next morning the staff held a conference call with the Development Committee, which concurred that the organization could not afford to incur any additional costs for a new event. Cox, who had heard of "phantom" events held by other nonprofits, suggested turning the catastrophe into a crisis TC "Phantom Circus" event. After much discussion, the group agreed.
At this point, the staff and key board members intuitively did something that nearly all crisis management consultants recommend. They established regular and open communications with key constituents.
A conference call was placed to all board members, informing them of the cancellation and the new plan. Sponsors were called immediately and asked if they would stay involved with the Phantom Circus. All but one agreed to do so.
"BGE was wonderful," Cox says in retrospect. "They were our major supporter and gave us encouragement. They said they wanted their money to go directly into programs rather than another event anyway."
On the heels of the sponsor notification, Magic Me staff contacted the media. WJZ, the original media event sponsor, agreed to cover the cancellation and the resulting financial crisis. They aired a spot on the evening news.
"That one spot generated more than 100 calls within the hour, all offering support," Cox told me. In addition, WJZ produced 10-second and 30-second spots designed to highlight Magic Me. An article in The Sun also generated supporters.
To date, Magic Me has raised some $26,000 in support for the aborted circus, and its makeup fund-raising appeal is still out in the community. The Executive Committee has been involved in soliciting gifts from prospects, and a direct-mail program seeks to help out with the shortfall.
The lessons learned from Magic Me's fund-raising cancellation are transferable to other nonprofits faced with similar or other crises.
"The first thing to keep in mind is that the situation is not hopeless," Cox summed up. "People do respond to a crisis. Just tell them how. Sometimes a crisis situation helps to raise money."
Another key lesson is that supporters need to be contacted immediately, apprised of the situation, and assured that a crisis management plan is in effect. And that speaks to the need for all boards to develop just such a plan.
Who will coordinate the crisis management effort? Who is the second in command, since crises tend to occur when the top dog is on vacation?
What role do staff and board play? What are the philosophical principles that guide your response to the crisis? What are the two or three key points that will be made with the media? How will the organization's physical space be utilized during the crisis? What happens with operations and services during the crisis? How do we recognize the efforts of staff and volunteers after the crisis passes?
Each of these questions, at a minimum, must be carefully answered.
Lester A. Picker is a philanthropy consultant. Write to him at The Brokerage, 34 Market Place, Suite 331, Baltimore, Md. 21202; (410) 783-5100