Building Relationships with Donors

Building Relationships with Donors

Finding Good Venture Ideas (part 1) | Social Enterprise

Finding Good Venture Ideas (part 1) | Social Enterprise

Finding Good Venture Ideas (part 1)

By Rolfe Larson on June 8, 2011

This blog was written by guest writer Jan Cohen.

When most nonprofit staff and Boards think about earned income, they typically think about doing “something new”. The Risk Chart helps organizations to clearly see how risk increases as they go from “things and people they know” to those they have no experience with.

It’s a good practice to screen ideas for a fit to your organization’s core competencies, track record, culture, and risk tolerance. Stay at the lower risk end of the chart on the first or second venture. Go for a track record with the “low hanging fruit” before venturing into higher risk areas.

Today we will focus on the areas with the least risk of failure and greatest probability of success because they start with “what or who you know”.

For the least risk, focus on Cross Selling. Make more “matches” to get more business from your existing customers utilizing your existing services or products. Talk with these people about their interests and needs. Sometimes you need to change the services in some minor way, i.e. time of day provided or location, so that these people can use and will pay for this service, but other times, they simply do not know you provide an additional service or product that they would use.

Examples:

• Children come to your Preschool or Daycare but parents don’t know you have Psychologists or Speech Therapists on staff and they can get assessments and/or therapy at your site while the child is already there.
• Companies are your shredding/document destruction customers but don’t know you also are an EWaste collector and can take their computer monitors and other EWaste
• You help parents find child care but they don’t know about your Nutrition Education classes
• Childcare providers take your training classes both don’t know about your Toolkits or Activity Guides.
• You collect, fix and sell furniture appliances etc for your thrift or resale store. You could advertise to donors and shoppers that you repair these items and let them bring theirs in.

You can generate considerable revenue from cross selling without doing anything new! Think about it. Why not start here, with the “low hanging fruit”, where there is little risk?

———-

Jan Cohen has been a consultant, trainer, and social enterprise practitioner working in and with nonprofit organizations for more than 25 years, focusing on earned income strategies and business venture market research and development, start up, growth and management

Education a Top Priority for Donors, Survey Finds

Education a Top Priority for Donors, Survey Finds

March 3rd, 2011 |

Although more than half of all charitable donations in 2009 went to religious organizations, a new survey from the NonProfit Times and Infogroup/Nonprofit found that donors, when asked which type of organization actually needs money, see education as a top priority.

According to the survey, 35 percent of respondents listed education as the type of organization most in need of support, followed by health (24 percent), civic or community (12 percent), religion (9 percent), overseas crisis/relief (8 percent), environmental (7 percent), and political (1 percent). Responses of “none” and “don’t know” totaled 4 percent. However, the most recent data available from the Giving USA Foundation found that more than one-third of total donations made by individuals between 1992 and 2009 went to religious groups, including $100.9 billion in 2009, compared to $40 billion for education organizations.

“I think a lot of this is people saying one thing and doing another,” said Larry May, senior vice president for strategy at Infogroup/Nonprofit. Media coverage also may have influenced survey respondents’ decisions to vote for education over religion. Poor performing schools, for example, tend to receive more coverage than congregations, which in turn may influence the way people give.

The way survey questions were posed may have influenced the results, said former Giving USA editor Melissa Brown, now an Indianapolis-based philanthropy consultant. “Asking about which organizations are in need of financial support is not the same as asking, ‘which one do you most want to support’ or even ‘which one do you think does the most important work in the world,’” said Brown. “This might be why less than 10 percent advance religious organizations in response to the question. They know they and most of their friends are giving to a religious group and probably that is the bulk of their charitable giving, so the funding stream at that organization, at least, is comparatively secure.”



http://www.pnnonline.org/education-a-top-priority-for-donors-survey-finds

Ten Basic Responsibilities of Nonprofit Boards

What are the basic responsibilities of nonprofit boards?

By: BoardSource

Ten Basic Responsibilities of Nonprofit Boards
1.Determine mission and purpose. It is the board's responsibility to create and review a statement of mission and purpose that articulates the organization's goals, means, and primary constituents served.
2.Select the chief executive. Boards must reach consensus on the chief executive's responsibilities and undertake a careful search to find the most qualified individual for the position.
3.Support and evaluate the chief executive. The board should ensure that the chief executive has the moral and professional support he or she needs to further the goals of the organization.
4.Ensure effective planning. Boards must actively participate in an overall planning process and assist in implementing and monitoring the plan's goals.
5.Monitor, and strengthen programs and services. The board's responsibility is to determine which programs are consistent with the organization's mission and monitor their effectiveness.
6.Ensure adequate financial resources. One of the board's foremost responsibilities is to secure adequate resources for the organization to fulfill its mission.
7.Protect assets and provide proper financial oversight. The board must assist in developing the annual budget and ensuring that proper financial controls are in place.
8.Build a competent board. All boards have a responsibility to articulate prerequisites for candidates, orient new members, and periodically and comprehensively evaluate their own performance.
9.Ensure legal and ethical integrity. The board is ultimately responsible for adherence to legal standards and ethical norms.
10.Enhance the organization's public standing. The board should clearly articulate the organization's mission, accomplishments, and goals to the public and garner support from the community.

References
•Richard T. Ingram, Ten Basic Responsibilities of Nonprofit Boards, Second Edition (BoardSource 2009).




Ten Basic Responsibilities of Nonprofit Boards

Social Media and Mobile Marketing Best Practices for Nonprofit Organizations e-Newsletter

Social media and mobile technology have fundamentally changed the way nonprofits communicate with their supporters. It has also changed the way supporters use email, and thus how nonprofits publish e-newsletters. Below is a list of e-Newsletter Best Practices for nonprofits to consider and integrate into their website, social media and mobile technology campaigns.

Please Note: Three new best practices are added each month. Please subscribe to DIOSA Communication's Best Practices e-newsletter to be alerted when new e-Newsletter Best Practices have been posted.


1. Keep your e-Newsletter design simple.

Five years ago three-column e-Newsletters loaded with graphics and 4-5 stories were the standard best practice. Not anymore. People are inundated with information all day long from a variety of sources and too much content can be both a visual and mental distraction. If you want to get the attention of your readers, keep your e-Newsletter design simple. Single column, black text on white, and a subtle color for your background with a bright, colorful header at the top. Oceana was a pioneer in utilizing e-mail newsletters and their current design is great example of how to successfully design an e-Newsletter in an age of social media.

2. Keep paragraphs short, color links, and use bold headlines to make it easy to skim.

Web writing 101. Keep paragraphs short. Put line breaks between paragraphs. Color your hyperlinks to make them stand out. Use bold headlines to make your e-newsletter easy to skim. People are very busy these days and bombarded with information. They need to be able to digest to gist of your e-newsletter in 5-10 seconds and understand quickly what they need to click on to take action, learn more, make a donation, etc. See a recent CARE e-Newsletter for an example.

3. Publish e-Newsletters that are 500 words or less that focus on 1-3 stories.

Before blogging, Facebook and Twitter, one of the primary purposes of e-Newsletters was to distribute a lot of information about what was happening with your organization. Now there are numerous channels where your supporters can get that information. Too much information in your e-Newsletter will overwhelm your readers. Keep it on the shorter side. Focus on one to three stories in 500 words or less. A good example is the Oceana e-Newsletter. It is 263 words and focuses on one story - a pitch to take a quiz.

4. Follow the CAN-Spam Laws.

Following the CAN-Spam Laws are crucial for nonprofits. People must opt-in to receive your e-Newsletter. You can't subscribe them just because you think they would like to receive it. You must also clearly have unsubscribe instructions at the bottom of each e-Newsletter, as well as snail mail address. Nothing is more annoying to potential supporters than subscribing them to an e-Newsletter without their permission, then making them jump through hoops to unsubscribe. Most web-based e-Newsletter vendors (like Constant Contact) will automatically prompt you to do this before you send out your first e-Newsletter. If you are managing your e-Newsletter in-house, whatever you do, don't break the CAN-Spam Laws.

5. Add a "Donate Now" button to your e-Newsletter.

Not every e-Newsletter should include a pitch for your supporters to donate, but every e-Newsletter should include a "Donate Now" button. See an Amnesty International e-Newsletter for an example.

6. Add a social networking icons to your e-Newsletter.

Like "Donate Now" buttons, not every e-Newsletter should include a "Follow us on Twitter!" or "Friend us on YouTube!", but every e-Newsletter definitely should include social networking icons. Again, see the Amnesty International e-Newsletter for an example.

7. Add an e-Newsletter "Subscribe" button to your Facebook Page.

Using the Static FBML App on Facebook, you can add a "Subscribe" button to your Facebook Page. With just a little bit of html know-how, you can easily add a "Donate Now" button to your Facebook Page that links directly to the donate page on your website. See the Facebook Page of Independent Diplomat for an example.

8. Add an e-Newsletter "Subscribe" button to your Blog.

Blogging is one of the fastest ways to grow your e-Newsletter. Prioritize allowing people to subscribe to your e-newsletter over subscribing to your blog via RSS on your organization's blog. See Greenpeace's blog as an example.

9. Ask people to subscribe to your e-Newsletter via Tweets and Status Updates.

The day before you send out an e-Newsletter, post a Tweet/Status Updates asking people to subscribe to your e-Newsletter. Let them know that the can expect the e-Newsletter within 24 hours. It builds anticipation and increases your opt-in rate. Example Tweet/Status Update:

Sending our my Web 2.0 Best Practices e-Newsletter tomorrow. To receive a copy, please subscribe! http://conta.cc/2VeW7A

10. Keep e-Newsletter "Subject" lines on the short side.

Short subject lines tend to result in the highest open rate. Thus, limit your subject lines to 60 characters or less. Examples of good subject lines:

What you are doing is working (Personal)
Wow (One/Two Word Statements)
Help shut down puppy mills in Missouri! (Call to Action)
Save the Date: 8th Annual Winter Gala (Informational)
URGENT: Haiti needs our help (Motivational)

http://www.diosacommunications.com/enewsletterbestpractices.html

NTEN Receives $1.1 Million From Google to Boost Nonprofit Technology Adoption

Posted on December 30, 2010

NTEN Receives $1.1 Million From Google to Boost Nonprofit Technology Adoption

The Nonprofit Technology Network in Portland, Oregon, has announced a two-year, $1.1 million grant from the Google Inc. Charitable Giving Fund of Tides Foundation to promote the benefits of technology to nonprofit leaders.

The grant will support NTEN's efforts to educate technology leaders about the evolving role of technology in nonprofit work and to produce research and training on cloud technologies — Web-based applications that manage constituent conversations and information — visualization, and collaboration. The funds will also be used to develop and distribute NTEN:Change, a free quarterly journal for nonprofit leaders.

"This is not just an investment in NTEN, it's an investment in our entire sector," said NTEN executive director Holly Ross. "With this support, we can provide new ways to help our community connect with each other and learn about the most important technology strategies, tools, and trends. What's more exciting is that we can now reach beyond our core audiences and help a broader part of the sector transform technology into social change."

“NTEN Receives $1.1Million Grant From Google to Aid Nonprofit Technology Adoption.” NTEN Press Release 12/20/10.


http://foundationcenter.org/pnd/news/story.jhtml?id=319800002

PND - News - After Lackluster Year, Charities Optimistic About 2011

PND - News - After Lackluster Year, Charities Optimistic About 2011

Social Entrepreneurship: What Social Value Do Nonprofits Really Create?

Social Entrepreneurship: What Social Value Do Nonprofits Really Create?
by Nell Edgington August 25
There is a concept that good entrepreneurs know only too well, but nonprofits could stand to explore. A "value proposition" is the unique value a product or service provides a consumer. Without a value proposition a business has no place in the market. For a nonprofit, a social value proposition is just as critical to success, but often ignored. In an increasingly competitive marketplace, due in part to the growth of for-profit social entrepreneurs, nonprofits must analyze, articulate, and deliver on a social value proposition.

In the past, nonprofits could exist without a value proposition. Donors wouldn't argue that a library, homeless shelter, food pantry or school provided a necessary service. But as we move further down the road of social innovation, the assumption that money will automatically follow good works is no longer valid.

The issue is complicated by the fact that nonprofits have two sets of consumers: those who benefit from the product or service (clients) and those who buy the service (funders, investors, philanthropists). There is increasing competition for both sets of consumers.

In order to attract the consumers who buy services (and who, by the way, increasingly want a social return on their purchase) nonprofits must articulate the value that the consumer (donor, investor, philanthropist, sponsor, whatever you want to call them) receives by writing a check.

In the nonprofit sector the closest thing to a value proposition has been a case for support. But when this is created (which isn't often) it tends to focus on the organization and its needs rather than on the potential social return on investment for the funder. A good value proposition articulates how an organization is uniquely positioned to create significant social impact that is much greater than the costs associated. It involves an organization analyzing, understanding and delivering on three very important things:

1.Capability: What is the organization uniquely positioned to provide to the community (the marketplace). Why is this organization better positioned than other organizations (nonprofits, for-profits, government) to deliver it?

2.Social Impact: What change is the organization creating in the community, region, world? Why is this significant? Why should/will consumers (funders) care?


3.Cost: How do the costs of the service being delivered compare to that social impact? Is there a social profit being achieved, i.e. are the costs involved in delivering the service significantly less than the benefits? Will a funder (who is paying these costs) receive a significant social return on their investment in the organization?

A value proposition is less about a well-articulated statement and more about an organization's ability to think through these questions and really understand the marketplace in which they operate. More and more the nonprofit that can effectively execute on a social value proposition will find the financial stability that ultimately leads them to create lasting social change.



Nell Edgington is the founder of Social Velocity. She has 15+ years of experience in the nonprofit sector and holds an MBA from the Kellogg School at Northwestern University.


http://socialentrepreneurship.change.org/blog/view/what_social_value_do_nonprofits_really_create?me=nl

Businesses urged to rethink social role

Businesses urged to rethink social role
June 28, 2010

In an increasingly complex world, corporations need to change the way they do business by changing the way they address social problems, a new report says.

To compete in the global marketplace, it says, companies must develop integrated strategies to cope with big changes, including the growing shift in economic activity to Asia, rising stress on natural resources, social problems that are becoming more complex and widespread, and rising expectations that companies play a big role in addressing social issues.

Companies can prepare themselves to make greatest impact on social problems and their own bottom line through a strategy known as "sustainable value creation," says the report, prepared by the Committee Encouraging Corporate Philanthropy, based on research by McKinsey & Company.

That strategy consists of a "self-reinforcing state of trustworthy, pro-social corporate behavior that simultaneously delivers bottom-line results and community benefits," says the report, Shaping the Future: Solving Social Problems through Business Strategy.

"To bring about sustainable value creation in their firms," it says, "companies must challenge the tacit assumptions that underpin the functioning of their value chains, seeking to understand where social issues impede progress, and then work to engage others in ameliorating those issues for the good of business and society alike," the report says.

"Corporate involvement is required whenever the cost of inaction exceeds the cost of action," it says.

Companies should take a hard look at social issues on which they "lead and engage," the report says, and make sure those issues are "integral to the achievement of larger business goals."

A key question, it says, is whether working to address a particular social issue also will "help my firm creative a tangible competitive advantage."

Companies should pick social issues "that drive growth or reduce costs, all while demonstrably helping local communities and broader societies address their own development priorities," the report says.

The report suggests that people who mistrust business likely will criticize the proposed strategy of sustainable value creation as "corporate greed in sheep's clothing."

While the level of trust in business "is not wholly within the control of companies, the report says, the "integrity with which companies execute their strategies for sustainable value creation is of the utmost importance in earning public confidence."

Corporate and CEOs and thought leaders interviewed for the research that led to the report believe that "shaping the future through sustainable value creation is a mandate," the report says.

And developing those strategies demands new ways of business thinking, it says.

Leadership toward sustainable value creation "requires stepping outside typical business planning cycles and acknowledging the need for (and growth possibilities inherent in) new ways of thinking," it says. "It also entails embarking on new forms of collaboration."

Margaret Coady, director of the Committee Encouraging Corporate Philanthropy, says in a statement that, by moving beyond their traditional levels and models of corporate community involvement, "the zero-sum tension faced by corporate executives of increasing shareholder returns and doing the right thing for society can be dissolved."
http://philanthropyjournal.org/news/businesses-urged-rethink-social-role

Building a fundraising board

Building a fundraising board
Keith Curtis | June 25, 2010


Will the board members of your nonprofit do anything but ask for money? When asked to make a donation themselves, do they point to their time as their gift?

For most nonprofits, the board of directors has two roles: governance, which involves making policy and stewarding finances; and support.

The support role is where boards sometimes fall short because, frankly, it's harder. Providing support, especially in this time of reduced government funding, requires that a board member be a participant, donor and fundraiser.

Your board is your link to the community, so it must lead your fundraising.

Here's a compelling reason why. A 2009 survey by Cygnus Applied Research found that 42 percent of respondents would give to a nonprofit they had not supported in the past if someone they knew asked them for a gift.

More than 80 percent of all U.S. charitable giving comes from individuals.

That's why the most successful boards are involved in planning, executing, and evaluating their nonprofit's development efforts.

They understand their organization's case for support and know how to make "the ask."

They identify, cultivate, and recruit potential donors and new board members.

They would never assume fundraising is a staff function.

And they give not only time but money. How can board members justify asking others to give if they haven't yet made a gift?

But effective boards don't just happen. Building them begins with the recruitment process, which must be strategic.

It's not just filling open positions. Being asked to serve on a nonprofit board should be considered an honor by the prospective member.

Once that's established, present the prospective member with a job description that spells out expectations. Be clear that every board member must support your events and make a gift.

If a prospective member isn't willing to give, don't ask her to serve.

Before a new member attends her first board meeting, orient her by reviewing your mission, programs, role of the board, role of the staff, financial picture, development program and fundraising plans. Offer a tour; introduce her to volunteers and staff leadership.

If a board member has little experience in fundraising, involve her slowly.

Arrange for board training and role-playing. Send a new member with an experienced one to make a gift call.

Untrained members making gift calls are likely to fail, and that's a disservice to the board member, the prospective donor, and the people served by your organization.

A board member sharing his or her story with a potential donor is one of the most effective ways to raise money.

Another 2009 survey, this one by our colleagues at the Indiana University Center on Philanthropy and Campbell & Company, found that donors asked to give in person by someone they knew gave 19 percent more than if asked another way.

Board members also can identify people who might be interested in your cause, engage attendees at your organization's events, make thank-you calls to donors and bring potential donors to cultivation events.

If your board members aren't willing to do all of the above, it might be time for this question: Why are they on your board?



Keith Curtis is a board member of Giving USA, board member of the Giving Institute, and president of the Hampton Roads Gift Planning Council. He is also president and CEO of The Curtis Group, a fundraising consulting firm based in Virginia.