This was a really hard week. The horror of the Boston Marathon and the explosion in West, Texas. I think we all feel horrified, vulnerable, shocked. But two things this week made me see the hope beyond the sometimes dark elements of life.
First was comedian and actor Patton Oswalt’s beautiful Facebook post about the ultimate goodness of humankind in the face of tragedies like the Boston Marathon. You should read the full post, but here is an excerpt:
Every once in awhile, the wiring of a tiny sliver of the species gets snarled and they’re pointed towards darkness. But the vast majority stands against that darkness and, like white blood cells attacking a virus, they dilute and weaken and eventually wash away the evil doers and, more importantly, the damage they wreak…So when you spot violence, or bigotry, or intolerance or fear or just garden-variety misogyny, hatred or ignorance, just look it in the eye and think, “The good outnumber you, and we always will.”
And the second thing that gave me hope this week was this video from 12+, a nonprofit in Philadelphia that empowers students from under-served communities to pursue education beyond 12th grade (h/t @vppartners and @YearUp). It is incredibly inspiring. So if you need a little light after a dark week, take a look:
I’ve been talking lately about nonprofits needing to make more investments in their organization, in their sustainability, and in their future. Well, I have the perfect opportunity for you to do just that. I’m excited to announce the newest Social Velocity tool — the Financing Not Fundraising E-Course. Over the course of two months I will be leading a group of 15 nonprofit Executive and Development Directors to determine what’s holding them back from raising more money and create a comprehensive financing plan for their organizations.
This e-course will take you from Fundraising to Financing. We’ll start with a fundraising assessment of where your organization currently is in your efforts to bring money in the door, and we’ll end with a comprehensive, actionable financing plan to move your organization forward.
Here’s how it will work:
- We’ll kick off with a webinar to help everyone understand what a fundraising assessment looks like and what it includes.
- Everyone will be sent away to complete the detailed fundraising assessment I will provide them.
- I will then analyze each individual fundraising assessment.
- The 15 participants will be split into two groups. I will lead a 90-minute coaching session with each group to go individual-by-individual to explain what their fundraising assessment revealed and where they should focus their change efforts.
- After the coaching sessions I’ll host an informal Google Hangout where participants can discuss questions, hurdles they are encountering, where they need help.
- Then I’ll lead a second webinar to explain how to create a financing plan.
- I’ll give everyone a Financing Plan template and detailed instructions on how to create their own financing plan.
- Then I’ll analyze everyone’s completed financing plan.
- We’ll do a second round of coaching sessions where I will go individual-by-individual to explain where their financing plans can be improved.
- We’ll end with a final Google Hangout where everyone can discuss, ask questions, get support and move forward.
- And throughout the process you can always reach out to me via phone and email with additional questions or for guidance.
The registration fee for the e-course is $499.
Of course I’m biased, but to me this investment just makes sense. With this e-course you can set your nonprofit on a path to a much larger, more sustainable financial engine. This is about making an investment now in order to enjoy a much larger payoff down the road.
If you’d like to join us, register soon. The e-course is limited to 15 people, and it’s already filling fast.
I hope to see you there!
I wrote last month about the crippling nonprofit fear of investment. Related to that, nonprofits need to understand and embrace the concept of Return on Investment. Nonprofit leaders often exist in such a world of scarcity that they don’t recognize that an investment today can have a huge payoff down the road. And not recognizing the value of a return on investment, particularly when it comes to a nonprofit’s fundraising function, can keep nonprofits in starvation mode.
One of the ways I consult with nonprofits is coaching a development director or executive director to increase money flowing to the organization. We work on getting board members to bring money in the door, identifying new donors, crafting a compelling message, launching new revenue streams, developing an overall financing plan.
This work could have a huge future payout:
- Board members no longer sit on their hands but actively recruit new donors to the organization.
- New donors are acquired through a thoughtful, strategic major donor campaign.
- A compelling case for investment convinces foundations and major donors to invest at higher levels and for longer periods.
- A new earned income stream brings in unrestricted revenue.
- An effective financing plan puts scarce resources to their highest and best use.
If you think of this in terms of return on investment it’s a no-brainer. You have two options:
- Continue to struggle day-to-day for the foreseeable future, or
- Make an investment today in order to dramatically increase funding and sustainability tomorrow
Let’s do the math. If a nonprofit with a budget of $1 million were to spend, say $5,000 on hands-on coaching to develop a financing plan, create a compelling case for investment, get their board engaged in fundraising, and launch a major donor campaign those elements could translate into well over $100,000 of new money annually for the nonprofit.
- A financing plan clarifies and marshals resources so staff and board know exactly where the money flows and who will do what to make it happen. The very act of creating and monitoring a financing plan could increase funding by 5%, or $50,000.
- A case for investment, when done well, becomes the backbone of any and all money-raising efforts. It can be integrated into your website, your social media efforts, your donor letters, your presentations. Telling a concise, compelling story makes donors sit up and take notice and adds perhaps another 2% increase, or $20,000.
- If your entire board starts (in their own unique ways) bringing money in the door that could increase your bottomline as well. If each member of a 15-person board starts to increase their own giving and/or the giving of those in their network by $1,000 each, that’s another $15,000.
- A major donor campaign charts a logical, strategic way for you to identify and acquire new donors. Getting strategic about how you find and recruit those donors will ensure much greater success, perhaps a 5% increase, or $50,000.
So with very conservative estimates the original $5,000 investment in coaching translates to $135,000 in new money every year thereafter.
My favorite example of this is when I helped KLRU, Austin’s PBS station use $350,000 in capacity capital to do many of the above things. After 3 years of implementing a new financing plan, using a new case for investment, and more, they were raising $1.6 million in NEW REVENUE each year. That’s a huge return on investment.
If you make a smart investment in improving the money engine of your nonprofit, that investment will pay off many times over, creating a more secure financial future for your organization.
Photo Credit: MeckiMac
It happens all too often. A nonprofit executive director called me the other day because they have just completed a beautiful strategic plan with some exciting goals and a new direction for the organization, but they don’t know how to bring the money in the door to make the plan a reality. They don’t have a financing plan for their nonprofit, so they are just hoping for the best.
A financing plan galvanizes board and staff to bring enough of the right kinds of money in the door to make the organization’s goals a reality. It creates a sustainable financial model for the nonprofit so that it can survive and thrive. Instead of rolling the dice and hoping for the best, a financing plan puts your nonprofit’s financial destiny squarely in your control.
But very few nonprofits have a financing plan. Which is why I’m excited to be offering one of my most popular webinars again this month. In the April 24th Creating a Financing Plan webinar I will take you step-by-step through what a financing plan looks like and how to create one for your nonprofit. If you truly want to break free from the exhausting hamster wheel of fundraising and start bringing enough money in the door to achieve your goals, you need a financing plan.
The Creating a Financing webinar will help you create an overall financing plan for your nonprofit, which includes:
- All revenue streams flowing to the organization
- A strategy for funding programs and operations
- Opportunities to raise money for infrastructure
- Tactical steps with activities, deliverables, people responsible
- Ways to divide tasks by staff and board members
- A process for monitoring the plan going forward
Here’s what some past Creating a Financing Plan webinar participants have said:
“This session was one of the best on this topic I have seen…presented in an excellent and logical manner.”
“I loved the reframing of financing for desired results instead of funding for operations… your message to wed money to the mission was a big AHA moment and I am now figuring out how to bring this to life for staff and Board.”
And remember, as with all of our webinars, if you can’t make this day and time, don’t worry. When you register for the webinar you will gain access to the slides and recording of the webinar which you can watch whenever you want.
I hope to see you there!
Photo Credit: jDevaun
Perhaps it had something to do with the SXSW Interactive conference last month, but March was all about using technology in interesting ways to further social change. From crowdfunding, to a new giving graph, to credit card donations to the homeless, to engaging people in the arts and beyond, people are experimenting with technology for social change in really exciting ways.
Below are my 10 favorite social innovation reads in March. But let me know in the comments what I missed. And if you want to see my expanded list, follow me on Twitter, Facebook, LinkedIn, Pinterest or ScoopIt.
You can see the 10 Great Reads lists from past months here.
- Crowdfunding is quickly becoming the hot new thing in the social change world. It remains to be seen if it is a game changer, but in the meantime take a look at some examples of how its being used here, here, and here. And while we’re talking about innovative use of technology to fundraise, Lucy Bernholz dissects some new efforts to donate to the homeless via a credit card.
- Writing on the ArtsFwd blog, Anna Prushinskaya describes how some innovative arts organizations have used social media to effectively engage audiences in new ways.
- I’m really excited about a new technology the Case Foundation is developing that will map your online search preferences to giving suggestions just like Google, Facebook and others currently use your search preferences to suggest products and services. (I’ll be interviewing the mastermind behind this, Will Grana, on the blog this summer).
- I love to see nonprofits using new media (like video and infographics) to tell their story. Beth Kanter offers some easy tips for creating infographics. And speaking of cool infographics, check out this one on why slacktivists are more active than you think.
- It seems “scale,” the social innovation buzzword of a few years back, is being redefined. Kathleen Enright, CEO of Grantmakers for Effective Organizations, describes a new report that expands the idea of scale and offers ways grantmakers can support it. And Ben Mangan, CEO of nonprofit EARN, spurs nonprofits and funders to move past “stifling incrementalism” and start working towards real scale.
- Dan Pallotta ruffled some feathers, as is his way, with his TED Talk this month The Way We Think About Charity is Dead Wrong, and there were several responses. But I thought the most thought-provoking was from a group of professors from Boston who suggest that Pallotta’s argument that nonprofit salaries are too low only reinforces the wealth inequality of the American economy.
- And on a related note, Dione Alexander, writing on the Mission and Money blog, explains increasing wealth inequality as a kind of bullying, noting “The social contract through which we assume shared responsibility for the community is broken.”
- And since we are on the topic, this video about wealth inequality in America blew my mind. If you want a quick and dirty view of where America’s money goes, take a look.
- As part of the ten year anniversary of the Stanford Social Innovation Review, Matthew Forti looks back at the past ten years of measuring nonprofit outcomes, the good, bad and the ugly.
- Writing in the Duke Chronicle, Trinity senior Elena Botella argues that deciding when a public service should be privatized should be based on evidence, as she says “Humans respond to a profit motive, but we also respond to altruism, community values, prestige and pride in our work.”
Photo Credit: mendhak
In this month’s Social Velocity blog interview, I’m talking with Wendy Harman. Wendy is the Director of Social Strategy at the American Red Cross. Her goal is for the Red Cross to be a social organization ready for 21st century humanitarian work. She is responsible for their national social media presence, including the listening program, social content and community engagement.
You can read past interviews in our Social Innovation Interview Series here.
Nell: The Red Cross has fully embraced social media. How specifically has it helped you get closer to achieving your mission?
Wendy: Our social engagement philosophy centers around using social tools to execute our mission. That is, moving beyond using social engagement for communications and marketing purposes and onto using these tools and our increased ability to network horizontally with huge communities for service delivery. The Red Cross has five main service areas: disaster services; international services; serviced to the Armed Forces; preparedness health and safety; and biomedical services (blood). We have probably made the most headway in operationalizing during disasters. For example, we’ve created the Digital Operations Center (funded by Dell) in order to holistically see and synthesize social conversations from disaster-affected areas. So far, we’ve found three main purposes for the center:
- We use the center to provide real-time and anticipatory situational awareness. This means we can provide all decision makers in the Red Cross disaster services, as well as many of our partners outside the organization, with real-time trends from the affected areas. We can identify gaps in service, the biggest needs, the most talked-about subjects as they relate to the disaster, and more. This helps us know what’s happening on the ground in the moment and also can help our experts anticipate service delivery that will be needed in the coming days or weeks.
- We use it to route needs. When we see an individual tweet that says, “I need a peanut butter and jelly sandwich. I haven’t eaten in days because of this hurricane,” we can route this information to our teams on the ground who are organizing our mobile feeding efforts.
- We provide individualized information. We have built a digital volunteer role and now have trained volunteers who can “deploy” in place and help to get information, resources, shelter locations, mobile feeding locations, real time tips, and a bit of confidence and support to people who need it. For example, during tornado warnings we often see a big increase in tweets from people hunkered down in their basements or bathtubs—and they are scared. The Red Cross has a lot of expertise on exactly what to do when you find yourself in this situation, and we’re able to provide those tips in the exact moment people need them. In addition, a big part of our mission is to provide hope and comfort in people’s worst moments, so we’re also encouraging the digital volunteers to offer that hope and comfort via digital “hugs,” or words of support.
Nell: How do you manage the ever-changing and ever-expanding social media environment? How do you determine where to spend your time and when to change your approach?
Wendy: The age of the social web has affected the role of the nonprofit sector in general and the role of the Red Cross, particularly during disasters. We are expanding from an organization that executes discrete relief activities with trained experts and volunteers, to an organization that acts as a platform to connect and mobilize people affected by disasters. We are tool agnostic; the foundation of our social engagement program centers around listening to, engaging with and acting on social conversations. This way we stay nimble in our content, and we can adapt quickly with the public.
Nell: The Red Cross is a huge nonprofit and has more resources to put behind social media. How do you suggest small nonprofits logistically work social media into their marketing mix?
Wendy: Huge doesn’t necessarily translate to big budgets for social engagement. We are lucky to have three staff members dedicated to social engagement, but we’re really trying to work our way out of our jobs. In other words, rather than having the three of us triaging thousands of conversations per day, we’d like to see social engagement become part of every Red Crossers’ workday. My more concrete advice is to do what you can do well—you don’t have to be everywhere, you just have to really be in the places where you say you will be.
Nell: In some ways your role at the Red Cross is to help an aging institution embrace change and the new realities of the world we live in. Why do you think the Red Cross has been open to change when other large and seasoned nonprofits have not?
Wendy: I think innovation and adaptation has always been baked into the DNA of the Red Cross. One of my favorite Clara Barton quotes is, “I have an almost complete disregard of precedent, and a faith in the possibility of something better. It irritates me to be told how things have always been done. I defy the tyranny of precedent. I go for anything new that might improve the past.” No doubt we have built up institutional walls over the years, but at the same time, we have broad recognition of the value of partnerships and collaboration, and we’re working to be sure we make openings in those walls so everyone can participate in the Red Cross network and our humanitarian mission. We’re also getting quicker at adopting new technologies, but I think the openness in our organizational culture to strive to be better is more of a key indicator about our relevancy than our adoption to a particular technology.
Nell: Some nonprofits will embrace social media if they think there is a fundraising payoff, but the Red Cross has obviously found a huge mission payoff as well. How do you explain to nonprofits that are hesitant to spend time building communities what the payoff could be and how to be patient in finding it?
Wendy: This is the million-dollar question. I think my favorite quote about this is from Socialnomics author Erik Qualmann who says, “The ROI of social media is that your business will still exist in 5 years.”
The other day I met with a nonprofit leader (let’s call her June) who has a great idea for an earned income venture that fits directly with her mission, but she doesn’t have the start-up capital to launch. When she explained this to me, she threw up her hands as if to say, “I’m powerless to move forward.”
But from my vantage point she has all the pieces necessary to raise the start-up capital and launch, she just isn’t putting them together. It’s a common refrain — nonprofit leaders complain about being in a catch-22 of not having enough money to raise enough money. But the answer is often right in front of you. To break free from the starvation cycle, assemble the assets you already have in order to raise capacity capital, which is the topic of today’s post in the ongoing Financing Not Fundraising blog series.
The nonprofit starvation cycle is one nonprofit leaders know only to well. Nonprofit organizations rarely have the technology, staff, and systems to function effectively. So they scrape by trying to wring one more drop out of a completely dry rock. But instead of waiting for funders to fix the situation, it is up to nonprofit leaders themselves to break free. And you break free by raising capacity capital.
Capacity capital is a one-time investment of significant money that can help build or strengthen a nonprofit organization so that it can create more social change. Capacity capital funds things like technology, systems, a program evaluation, revenue-generating staff, start-up costs for an earned income business. It is money that strengthens the organization so that it can do more.
But often nonprofit leaders, like June above, don’t recognize that everything they need to raise capacity capital and break free from the starvation cycle is in right in front of them. Here are the necessary pieces:
A Plan. You know what you need in order to do more, so put together a change plan and figure out what elements you need (technology, systems, staffing) and what they will cost. Do your homework so you can speak intelligently about what it will take to get you from point A to point B. June has a great business plan for her venture and knows exactly how much she needs in start-up costs.
Donors Who Love You. When raising capacity capital you want to go after donors who already love what you are doing and want to see more. You must convince them that a one-time investment of capacity capital will enable you to do even more of what they already love. June has a great network of long-time donors, which she could convince to become capacity capital donors.
A Connection Between Capital and More Impact. Make a convincing argument to those donors that capacity capital will create more of what they already love. For example, having a great Development Director in place can bring hundreds of thousands of new dollars each year which means many more people will be touched by your organization. Or explain how an evaluation of your program will allow you to focus your resources on highest impact activities. June could describe how a profitable earned income venture could increase financial sustainability while delivering more impact.
June has all of these pieces. She has a great plan for an earned income business that could significantly contribute to a more sustainable financial engine and thus allow her nonprofit to reach more people, a clear articulation of how much capital she needs and for what, and a committed group of donors who love the organization. For her, and for most nonprofits, it is simply a question of connecting the dots.
If you want to learn more about the power of capacity capital, download the Enormous Opportunity of Capacity Capital e-book, the Creating a Capacity Capital step-by-step guide or the Raising Capacity Capital webinar.
Photo Credit: PublicDomainPictures
I’m excited to announce that I will be participating in a Chronicle of Philanthropy Live Chat on Tuesday, March 26th at 12 noon Eastern. Karina Mangu-Ward, from EmcArts will be joining me to answer questions from the audience about connecting mission and money. You may remember Karina from a past interview I did with her. She’s really amazing and is the Director of Activating Innovation at EmcArts, a social enterprise for innovation and adaptive change across the arts sector. She leads the strategy and development of ArtsFwd.org, an interactive online platform where arts leaders can learn from each other about the power of adaptive change and the practice of innovation.
Karina and I will be live chatting and answering questions from the audience, so I hope you can join us. It promises to be a fast-paced, interactive hour.
Here’s an excerpt from the Chronicle of Philanthropy description:
In the mad dash for donor dollars, nonprofits often take money for projects that distract them from their missions. Some donors pitch new programs but provide too little money to pay for a big enough staff to run it, so the charity ends up skimping on efforts that its clients really need. Other nonprofits might think holding a fancy gala will raise tons of money but don’t consider how the time spent planning the event will affect the group’s critical services. Join us on Tuesday, March 26, at noon U.S. Eastern time for a live online discussion about how to take a more strategic approach to fundraising. You’ll learn how to focus your fundraising efforts on your organization’s mission—and why saying no to some opportunities might actually help your nonprofit raise more money.
If you’re interested in participating, it’s easy. Just go to the Chronicle Live Chat page here at 12 Eastern on Tuesday, March 26th. You don’t need to RSVP or login, just show up.
I hope to see you there!
Photo Credit: wikimedia
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