Heather Mansfield’s newest book, Mobile for Good, is a nice complement to her 2011 book, Social Media for Social Good. This time around, she adds mobile to the “new media” mix and gives a detailed approach for nonprofit leaders ready to embrace changing technology.
In Mobile for Good, Mansfield sounds a warning call to nonprofit leaders. The tide of new media is swift and those nonprofit leaders who don’t embrace it will be left behind:
“Your nonprofit would be wise to assume and act upon the fact that more than 50 percent of your website traffic will occur on screens varying in sizes from one to six inches by 2016.”
And, contrary to popular belief, this shift is not just among the youngest generations of potential donors. Every generation – from Silent, Baby Boomers, Gen X, Millennials, to Gen Z – is increasingly discovering and giving to nonprofits online.
But Mansfield is not suggesting that nonprofits chuck all fundraising vehicles in favor of a singular new media approach. Rather, she urges nonprofits to embrace a multi-channel fundraising strategy, “using print, web, and email communications, and mobile and social media in order to appeal to donors of all ages and socioeconomic backgrounds.”
And in fact, reports on the death of email are unwarranted. In fact, it’s enjoying a rebirth:
“Email is not dying. It’s growing. Furthermore, every email address that your nonprofit accrues translates into $13 in online donations over a one-year period. If you think this trend is isolated to Gen X and older, it’s worth noting that 65% of Millennials subscribe to nonprofit e-newsletters.”
The key, however, is making sure that everything (your website, your e-newsletters) is responsively designed, meaning that it automatically converts to fit whatever is being used to view it (laptop, phone, tablet).
Mansfield urges nonprofit leaders to invest in new media. The nonprofit sector’s desire for free or very cheap technology solutions isn’t realistic anymore:
“It’s imperative that you find the funds and the tech know-how to position your nonprofit for future survival…One of the downsides of the rise in social media is that it has inadvertently resulted in nonprofits becoming overly accustomed to and dependent upon “free” online tools. This mindset is becoming destructive to the sector istelf…The era of free is over.”
Mansfield devotes a chapter to each of the main social media networks and gives tips and best practices for each. The problem with writing a book about such a quickly evolving space, however, is that it becomes out of date before it even hits the shelf (for example Facebook’s recent organic search changes, and LinkedIn’s discontinued Products and Services tabs). So you must view Mansfield’s tips in a larger context, and for real-time updates you can check out her Nonprofit Tech for Good blog.
Overall I think the book holds a good deal of value for nonprofit leaders, however, I do have two criticisms.
First, for the nonprofit leader already overwhelmed by new media Mansfield doesn’t effectively prioritize where to focus. By including all major social media networks and all new fundraising tools (including untested ones like Crowdfunding) she leaves the impression that there is an endless and equally valuable list of innovations to embrace. Without a framework for prioritizing where to focus it is easy for the already overwhelmed nonprofit leader to give up. She could have discussed the merits of focusing on some of the bigger bang for your buck social media networks (like Facebook) while letting others (Pinterest) go if time doesn’t allow. Or thinking through a nonprofit’s target audience and their habits and preferences in order to prioritize staff time.
Second, I must take Mansfield to task for perpetuating the nonprofit overhead myth – the idea that nonprofits should separate their “program” and “overhead” costs. As I’ve mentioned before, this myth is incredibly destructive to nonprofits by forcing them to hide or ignore the true costs of their work. In Mansfield’s “Online Fundraising” chapter, she lists 10 best practices, of which #6 is to “Include Program Versus Operating Expense Graphics,” suggesting that nonprofits create “a pie chart graphic that shows your low fundraising and operating costs.” She goes on to mention the Overhead Myth Campaign in passing, with no irony about how she is perpetuating the myth itself. Ugh.
At the end of the day, Mansfield provides a nice overview of the rapidly changing new media landscape and some great steps for what nonprofits can do to keep up.
Photo Credit: nptechforgood.com
Today for something a little different, I’ve taken to YouTube for my blog post. My hope is that as the Social Velocity YouTube channel becomes a library of videos on various nonprofit topics and challenges, you can use the videos to spark discussion among your board, staff and donors.
So today’s topic is about getting your board unstuck and moving forward for you. The transcript of the video is also below.
If you want to learn more about getting your board engaged, download the 10 Traits of a Groundbreaking Board book, or the Getting Your Board to Raise Money On-Demand Webinar.
I know how hard nonprofit leaders struggle to get their board of directors active, engaged, involved, motivated, moving forward with their nonprofit organization. So today I want to give you three questions that can get your board engaged and invested in the work of your organization.
Before I start, though, I want to say that you get a board motivated and engaged by splitting it into its parts. You cannot get a board engaged and invested by talking to the board as a whole. So I encourage every nonprofit leader to set aside a time every year to meet one-on-one with each individual board member. And in those one-on-one conversations I encourage you to ask 3 questions of those board members that can really get them engaged and motivated.
The first question to ask them is, “What about our nonprofit’s mission and work really motivates you?” This helps you tap into each individual board member’s passion, what brought them to the board in the first place, why they are volunteering their time, and really helps them think again, remember, and be thoughtful about why they are engaged with the nonprofit and what they want to see the nonprofit to accomplish.
The second question to ask each individual board member, one-on-one, is, “What specific assets do you bring to the table as a board member?” This gets the board member and you to start a conversation about what unique skills, experience, or networks that individual board member brings to the table. So then you can start to think about, well how can we tap into this person’s unique assets?
The third question you want to ask each individual board member is, “What do you want to accomplish as a board member this year?” This puts the burden on that individual board member to be thoughtful about what they want their contribution to be as a board member. So they might start thinking about wanting to be involved in an upcoming strategic planning process, they may have some ideas about how to better market the organization, they might be thoughtful about some key decision makers that they could open doors to. There’s a whole host of things that it might start to get them thinking about how they can be specifically involved in the organization.
So, again, I think the key to engaging a board of directors is to start working with them one-on-one and asking them some really thoughtful questions that result in a really meaningful conversation that can really engage your board. Good luck!
I’ve been thinking about using Slideshare, the social media network for presentations and infographics, a lot lately. It’s an amazing site with tremendous content. I wanted to start sharing some of my presentations there.
So today, here is my first SlideShare offering, “Calculating the Cost of Fundraising.” These slides are excerpted from my Calculating the Cost of Fundraising on-demand webinar.
The concept is simple. If you want your nonprofit to achieve financial sustainability you need to analyze the return on investment of your money raising activities. With that analysis you can make smarter decisions about where you should focus your limited resources for greater financial success.
These slides and the more detailed webinar give you some quick and easy tools to use to determine the return on investment of all of your fundraising activities. The webinar then helps you compare the results of your calculations and gives you tips for deciding what to do with that information. And most importantly how to convince others on your board and staff when you have to move away from some money-losing activities (always a tricky political maneuver).
Today the Nonprofit Finance Fund (NFF) released the results of their sixth annual State of the Nonprofit Sector survey and the data underlines a growing crisis in the financial sustainability of our nonprofit sector.
56% of nonprofit leader respondents reported that they were unable to meet demand for their services in 2013, this is the highest rate since the survey’s inception six years ago. And the scary part is that this inability to meet demand is not because of a temporary down period in the economy, but rather because of deeper dysfunctions in how we funnel money to the sector. As Antony Bugg-Levine, CEO of NFF put it, “The struggles nonprofits face are not the short-term result of an economic cycle, they are the results of fundamental flaws in the way we finance social good.”
The survey gathered responses from more than 5,000 leaders from U.S. nonprofits of all sizes, domain areas, and geographies.
The top challenge by far for nonprofit leaders, with 41% of them reporting it, is “achieving long-term financial stability.” And this is evidenced in several ways:
- More than half of nonprofits (55%) have 3 months or less cash-on-hand.
- 28% ended their 2013 fiscal year with a deficit.
- Only 9% can have an open dialogue with funders about developing reserves for operating
These struggles with financial sustainability stem in large part from a lack of understanding among funders of the true costs of social change work. Roughly 53% of nonprofit respondents’ funders rarely or never fund the full costs of the programs they support. And for approximately 24% of respondents their government indirect cost rate (the amount government allows for indirect, or “overhead” expenses) declined over the last 5 years, while about 47% of respondents are subject to a government indirect rate of 9% or less. That is nearly impossible.
For the first time, the survey included questions about impact measurement, a growing interest among funders, ratings agencies and others in the sector. But these questions just further underline the financial Catch-22 in which nonprofit leaders find themselves. 70% of nonprofit leaders report that half to all of their funders want to see proof of the impact of their programs, but 71% of nonprofit leaders also report that funders rarely or never fund the costs of impact measurement.
At the end of the day, government and private funders are putting greater demands on nonprofits whose services are increasingly needed, all while funding is becoming more difficult to secure. It’s a vicious downward spiral.
More than ever this survey demonstrates a need for the nonprofit sector and those who fund it to take a hard look at how the social sector is financed. We are not sustainably financing the social change work we so desperately need. And if we don’t address that, the downward spiral will simply continue.
Here are some fundamental changes to the financing of the nonprofit sector that I’d like to see:
- Government must move to a more reasonable indirect rate. No one can deliver an effective program with only 9% allocated to administration and other “overhead” costs.
- Funders who want to see impact measures need to step up and fund the work and systems necessary to make it happen.
- Nonprofit leaders and funders need to have more open and honest conversations about the hurdles standing in the way of the work.
- Nonprofit leaders need help figuring out sustainable financial models.
In the six years of NFF’s comprehensive and unparalleled view into the world of nonprofit leaders the story is not getting better. Let’s hope this data serves as a wake up call for the social sector. We must collectively realize that if we really want social change we have to figure out how to finance it effectively and sustainably.
Wrangling a group of volunteers who have competing and often conflicting interests is an exhausting job. It’s no wonder that nonprofit leaders often want to throw up their hands and soldier on without the rag tag group that’s supposed to further, as opposed to impede, the work.
But it doesn’t have to be that way. An “engaged board” is not an oxymoron. It is actually attainable. But you don’t get there by cajoling, guilting, ignoring or dismissing your board.
You get there by marshaling this critical army to grow your resources, your community of supporters, your results. Because an engaged board raises more money, recruits and trains other engaged board members, connects your nonprofit to key people and organizations necessary to achieve the mission, puts your nonprofit above their self interest, and ultimately leads your organization to greater results and impact.
There are very clear steps you can take to build an engaged board:
- Create a clear idea of the specific skills, experience and networks board members should possess
- Continually focus the board on the big picture
- Get them ALL to raise enough money
- Help them embrace money as an effective tool
- Make them understand and be able to articulate the impact of your nonprofit
- Create a commitment among them to build the organization
- Encourage them to ask hard questions
- And more…
You can help them become the board of directors they were meant to be.
An engaged board understands and fully embraces their charge. They have extremely high standards, and they hold themselves, their fellow board members and their nonprofit to those standards. They are constantly pushing, striving, and building the nonprofit to whom they are devoting their service. An engaged board may be an anomaly, but it doesn’t have to be.
If you want to build an engaged board, the Build an Engaged Board Tool Bundle can help you get there. The Bundle includes:
- The “Getting Your Board to Raise More Money” Webinar
- The “10 Traits of a Groundbreaking Board” E-book
- The “How to Create a Groundbreaking Board” Webinar
Here’s what some people who have already downloaded the board tools had to say about them:
“This was very concrete and actionable – gave specific suggestions regarding engaging board members. This was very useful. Well done.”
“This really opened my eyes to new possibilities – thank you so much!”
“This was one of the best and most helpful and informative webinars I’ve been on. It was exactly what I was looking for in terms of beginning to get our board energized and on track and I will use the slides to help me prepare for our upcoming board retreat.”
An ineffective board is not just a frustration for the executive director. Sadly it is a HUGE missed opportunity. Your board could be so much more. When you effectively engage your board of directors, you grow your resources and ability to create social change exponentially.
You can download the Build an Engaged Board Tool Bundle here.
Photo Credit: Dr. Strangelove
I’ve written before about how hard it sometimes is for nonprofit leaders to ask for help. Donors, board members, regulators, and others put enormous pressure on nonprofit leaders to do it all with little (if any) help.
So in an effort to help nonprofit leaders convince those around them about the benefits of getting help, I’ve developed five benefit sheets describing the advantages of building a stronger nonprofit organization.
Whether or not you are interested in working with me, these benefit sheets describe the return on investing in nonprofit organization building efforts like leadership coaching, strategic planning, board engagement. Obviously I feel very strongly that nonprofits need to build stronger, more effective organizations, but that’s often a difficult case for nonprofit leaders to make.
I hope these benefit sheets can help you make that case:
Nonprofit Leader Coaching
But it doesn’t have to be that way. A leadership coach becomes your strategic partner helping you analyze your challenges and concerns, think through staffing decisions, overcome fundraising hurdles, address board management struggles, and brainstorm new approaches. Coaching provides tremendous benefits including: increased board and donor engagement, more productive staff, greater financial sustainability, and clearer strategic thinking. Download the Nonprofit Leader Coaching benefit sheet.
In an increasingly competitive, resource-strapped world, great nonprofit strategy is less a luxury and increasingly a necessity. Without an overall strategy, a nonprofit is relegated to the world of “doing good work,” instead of the world of “making a real difference.” And these days more and more funders, supporters, advocates, partners and decision makers are requiring that nonprofits do more than just good work.
Smart nonprofit strategy can completely transform your nonprofit. It can create momentum, attract deeper funding, filter future decisions, become a management tool, and ultimately realize more social change. Download the Strategic Planning benefit sheet.
It can often seem impossible to get your board’s attention, let alone get them all pointing in the same, effective direction. But if managed strategically, your board can be an unstoppable army moving your nonprofit forward.
If you take a big step back and develop a groundbreaking board, you can dramatically increase your ability to: reach new audiences, grow your programs, forge new external partnerships, raise more money, increase exposure to key decision makers, build community investment and engagement. Download the Board Engagement benefit sheet.
Financial Model Assessment
It happens all the time. A nonprofit leader wants to expand her services to meet growing demand, or is frustrated with a stalled fundraising effort, or doesn’t know where to diversify her fundraising efforts. She wants to raise more money, but doesn’t know how.
A Financial Model Assessment can be game changing. It uncovers how all aspects of your organization contribute to or detract from money flowing through your doors, including strategy, mission & vision, leadership, program delivery & impact, marketing and partnerships. It can give your nonprofit a deep understanding of where you need to focus your efforts and a clear road map for growing your financial sustainability. Download the Financial Model Assessment benefit sheet.
Unlike a traditional fundraising plan, a financing plan is an integrated, thoughtful, and strategic way to help your nonprofit raise enough money to achieve your programmatic and organizational goals. Instead of asking the question: “How much can we accomplish with what we can raise?” you start asking the question: “How much should we raise to accomplish our goals?”
A financing plan galvanizes board and staff to bring enough of the right kinds of money in the door to make your nonprofit’s goals a reality. It creates a sustainable financial model for your nonprofit so that you can survive and thrive. Download the Financing Plan benefit sheet.
If you are trying to make the case for a stronger nonprofit organization download these benefits sheets and share them with your board, donors, staff. And if you would like to talk about these organization building processes in more detail, let me know.
Photo Credit: Johnathan Nightingale
For those nonprofit leaders brave enough, capacity capital can be the key to emerging from the continuous nonprofit starvation cycle.
Next month I will be speaking at the Securing the Future Conference in Cincinnati about capacity capital. Beyond looking forward to meeting a new group of nonprofit leaders, board members and donors, I’m particularly excited about introducing them to what I think has the potential to be a transformative concept for the nonprofit sector.
The topic of my speech is “The Power of Capacity Capital,” and in it I will convince the audience that you no longer have to run a nonprofit to the bone, continually starving the organization of the staffing, infrastructure, and systems that you need to effectively deliver social change.
Capacity capital is the money that so many nonprofits need, but most find so hard to raise. It is money for infrastructure and organization building. It is a one-time investment of significant money that can fund a program evaluation, a new data gathering system, revenue-generating staff, leadership coaching, and the many other things nonprofits require in order to be effective leaders of social change.
If you want to move your organization out of the starvation cycle, you have to learn how to raise capacity capital.
For those of you who won’t be at the Securing the Future Conference, but want to learn more about capacity capital – whether it’s right for your nonprofit and how to go about raising it – you can download my on-demand webinar, Raising Capacity Capital.
The 60-minute Raising Capacity Capital on-demand webinar will show you how to:
- Talk about the importance of capacity capital to your donors and board
- Create a budget for the capacity dollars you need
- Develop a campaign goal
- Break the goal into donor ask amounts
- Identify prospective donors
- Give your board a role in the campaign
- Gain the confidence to start asking for the money you really need
Like all of the Social Velocity on-demand webinars, you can watch this webinar whenever and however many times you would like.
You really don’t have to continue to live in starvation mode. There is a path toward a stronger, more effective nonprofit organization. Capacity capital can help you get there.
Photo Credit: panthera-lee
February witnessed some dissatisfaction with the current state of funding for social change, but also some trailblazers playing with new financial vehicles. I always wonder whether true change to money for social good will come with the next generation. Do Millennials hold the key to fundamental shifts in how we finance social change efforts? We shall see.
Below is my list of the 10 best reads in the world of social innovation in February. But, as usual, please add what I missed in the comments. If you’d like to see an expanded list, follow me on Twitter, Facebook, LinkedIn, or Google+.
You can also find the list of past months’ 10 Great Reads here.
- As we work toward social change, its important to embrace the gray areas. Writing in the New York Times Simon Critchley takes us back to the 1970s BBC documentary series “The Ascent of Man” to make a point about the importance of uncertainty in our search for solutions. As he puts it, “Insisting on certainty…leads ineluctably to arrogance and dogma based on ignorance.” And Fay Twersky seems to agree when it comes to strategic philanthropy, arguing in the Stanford Social Innovation Review that “we need to challenge the certainty creeping into [philanthropy].”
- And speaking of changing philanthropy yet another study of Millennial philanthropists claims that this new generation of donors will be quite different than their predecessors. As Phil DeMuth writing in Forbes puts it, these new donors “are no longer interested in providing an annuity to some tax-deductible charity organization.” They want to see results, and they want to get in and get out.
- But Lucy Bernholz is frustrated by the pace of change, at least in how little the financial vehicles philanthropists use are changing. She argues that in this year’s list of the top 50 philanthropists “the financial vehicles for philanthropy…look not unlike [those] in 1954 or 1914.”
- Tris Lumley from New Philanthropy Capital voices frustration as well, but with the general state of nonprofit finance. He puts forward a new model for the social sector that removes the “funder-centricity” of the “anti-social sector.” Because, as he argues, “the result of this funder-centricity at its worst is that the social sector exists not for those it’s supposed to help, but in fact for those who work in it, volunteer in it, and give money to it.”
- There are some bright spots, at least in the United Kingdom. The country leads the way in the social impact bond trend. Emma Tomkinson provides a map of social impact bond activity in the UK versus the rest of the world and the UK Centre for Social Impact Bonds provides a great site of resources on the new tool.
- And even here at home there are some trend setters, particularly the F.B. Heron Foundation, led by the visionary Clara Miller who also founded and led the trailblazing Nonprofit Finance Fund for 25 years. Clara has announced the F.B. Heron Foundation will account for the mission return of 100% of its assets. Unheard of and definitely interesting to watch.
- There is a constant tension in the nonprofit sector between funding new ideas and funding the growth of proven ideas. Writing in the Chronicle of Philanthropy, Alex Neuhoff, Laura Burkhauser, and Bradley Seeman fall squarely on the side of growing proven solutions, arguing that in order to reach a higher performing nonprofit sector we must “follow the “recipes” that earned proven programs their stellar ratings.”
- There was much for Millennial changemakers to chew on this month. First, there is a growing drumbeat questioning the relevance and value of college. Does the higher education model really work anymore? It’s a fascinating question to contemplate. And Naomi Schaefer Riley does so in the “College Tuition Bubble.“
- I’ve been on a real Steven Pressfield (author of The War of Art) kick lately. His worldview is that each individual was put on earth to create some specific greater good, but Resistance constantly fights to keep us from achieving it. If you need inspiration to overcome Resistance, read his post “How Resistance Proves the Existence of God.” Love it.
- And for those who are pursuing a life of social change despite the lure of a more traditional path, look to Thoreau for inspiration. For as Maureen Corrigan explains in her NPR review of a new biography of the man, “Thoreau’s youth seemed aimless to himself and others because there were no available roadmaps for what he was drawn to be…If Thoreau had committed to a professional career right after Harvard, his parents might have rested easier, but the world would have been poorer.”
Photo Credit: beggs
- Download a free Financing
Not Fundraising e-book
when you sign up for email
updates from Social Velocity.
Sign Up Here