Follow Social Velocity on Google Plus Follow Social Velocity on Facebook Follow Nell Edgington on Twitter Follow SocialVelocity on Linked In View the Social Velocity YouTube Channel Get the Social Velocity RSS Feed

Download a free Financing Not Fundraising e-book when you sign up for email updates from Social Velocity.

Marketing

10 Great Social Innovation Reads: March 2017

March offered lots of insight about how philanthropy should respond in the age of Trump. From investing in social movements, to getting involved in advocacy, to strengthening local communities, to giving more than the required 5%, there was much advice. Add to that a growing interest in how to combat “fake news,” steps to creating a digital marketing strategy, and the idea of employing migration as a tactic to combat poverty, March had much to read.

Below is my pick of the 10 best reads in world of social change in March, but feel free to add to the list in the comments. If you want a longer list, follow me on Twitter @nedgington.

And you can see past months’ 10 Great Reads lists here.

  1. Heinz Endowments President Grant Oliphant takes issue with the current administration’s distaste for the media and the arts (as evidenced by Trump’s elimination of the National Endowment for the Arts in his proposed budget). Oliphant argues that journalists and artists play a crucial role in a thriving society: “The right of artists and journalists to tweak the nose of power, to challenge what we believe, to criticize those in high places, to hold accountable people who otherwise might anoint themselves kings, cannot be abridged because we find it at times uncomfortable. It is that very discomfort that tells us they are doing their part in maintaining a healthy society.”

  2. Vocalizing dissent as Oliphant does is only one path available to philanthropy in these challenging times. Many people had other ideas for how philanthropy should respond, including funding social movementsgetting involved in advocacycountering the increase in hate crimes, strengthening local communities, and giving more than the typical 5% of assets. As Grantmakers for Effective Organizations President Kathleen Enright puts it: “We have a choice to make. We can succumb to the swirling and diverting streams of information that wash over us with every passing week. Or we can use this moment as a call to action, first to crystalize our values and determine what matters most to our institutions. And then to act in support of those values in new, bold and creative ways.”

  3. Philanthropic visionary Clara Miller, president of the Heron Foundation, describes what the foundation will do now that they’ve reached their goal of putting 100% of their assets toward mission. As she writes, “It’s becoming increasingly important to think and act holistically with money and influence within and beyond our sector, seeking impact on both Wall Street and Main Street.”

  4. The revelations that Russia used fake news to influence the U.S. presidential election added urgency to attempts to find solutions to the growing misinformation ecosystem. Pew Research offered a comprehensive report about the future of fake news. And writing in Nieman Reports Joshua Benton compares American distrust of journalism with American distrust of banks. And Marina Gorbis compares our current reality to the creation of the printing press in the mid-1400s, which ushered in political, religious and scientific revolutions.

  5. Speaking of what we can learn from history about today’s challenges, Harvard professor Tomiko Brown-Nagin provides 7 lessons from history for today’s social protests.

  6. Never one to shy away from controversy, Phil Buchanan takes to task those who argue that social problems can be solved by nonprofit and for-profit solutions equally well. As he puts it, “The fact is that in many, dare I say most, of the issue areas in which nonprofits are working to make a difference, there isn’t a way to do it that jibes very well with making a profit. And indeed, that is why the nonprofits were formed in the first place — because markets weren’t taking care of the issue!” Amen!

  7. Writing in his Nonprofit Chronicles blog, Marc Gunther argues that few anti-poverty interventions include the effective approach of encouraging the poor to migrate to areas with better opportunities.

  8. Large and aging nonprofit organization Greenpeace underwent a complete shift toward 21st century fundraising and advocacy efforts using technology.  This fascinating case study describes how they did it.

  9. David Mundy from GuideStar kicked off the first of a great multi-part series on how nonprofits can create their digital marketing strategy.

  10. And Nonprofit Tech for Good offered 24 Must-Read Fundraising and Social Media Reports for Nonprofits.

Photo Credit: Beraldo Leal 

Tags: , , , , , , , , , , , ,

Nonprofit Leaders, Get Outside Your Walls

It amazes me how many nonprofit leaders form their organizational strategy, their fundraising pitch, or their program model inside their nonprofit’s own walls. In order to be successful, you must understand the market in which you operate. And in order to understand it, you must go investigate it.

It is a simple fact that nonprofits must compete for funding, for clients, for volunteers, for staff, for board members, for mindshare, for policymaker will and commitment. So you must understand the market in which you work – what’s happening out there and how you fit in.

Ongoing market research can help you understand how your clients and potential clients think, what your funders want now and in the future, what your competitors and collaborators are doing and where they might be going, and how the very problems you exist to solve might be changing over time.

And there is another huge benefit to this data gathering — it forces you to expand and strengthen your network, because in the very act of finding out what’s happening outside your walls, you will forge new and deeper connections with others out there. So while market research should definitely be part of your long-term strategic planning process, it is also something you should continue to do on at least an annual basis.

Market research is where you test the assumptions baked into your work. You are seeking to find the answers to questions like:

Competitors/Collaborators

  • How are the efforts of other groups in our space changing over time?
  • How are these other groups funded?
  • What are their program delivery models?
  • What are their plans for the future?
  • Where are there opportunities for alliance?
  • How do they define the social problems they are working on?

External Context

  • What other social, technological, economic, demographic, political, regulatory shifts are happening outside our walls that might affect the problem(s) we are working on?

Target Populations

Of those people or groups you are trying to influence or benefit (like your clients) find out:

  • What are the demographic (age, gender, race, ethnicity, income, etc.) characteristics of these groups?
  • What are their psychographic (attitudes, interests, goals, etc.) characteristics?
  • How can we best reach them and change their attitudes and/or behavior?
  • What specific subsets of these populations can we have the greatest impact on?

Funding

  • How might our various funding streams (government, earned income, private donations, etc.) change over time?
  • What might our current or future funders want in the future?
  • What appeals to them about our solution?
  • What appeals to them about alternative solutions?

Before embarking on any market research, think through questions like these and figure out which are most applicable to your situation. This becomes your market research list.

Then determine how you will find the answers to those questions. Very few nonprofits can afford a comprehensive market study, so it will likely be up to your staff to do the digging. This can include activities like:

  • Web research on your competitors, collaborators, funders.
  • One-on-one interviews with current and potential funders, collaborators and competitors, experts in your field.
  • Surveys of your current or potential clients, members, influencers, funders, volunteers.
  • Review of existing research on the social issues on which you work.

And don’t assume that you will do this type of market research only once. Rather, you want to make it a regular part of operations (at least annually, if not more often), so it shouldn’t be overly burdensome. Make it easy and interesting for you and your staff to get beyond your walls and better understand the market in which you work.

Armed with new and ongoing knowledge about your market, you will be better able to design effective programs, attract additional support, articulate your nonprofit’s unique value, grow your network, and much more. So get out there!

Photo Credit: Ministry of Information Photo Division Photographer, Wartime Social Survey

Tags: , , , , , , , ,

Is Your Nonprofit Stuck In A Rut?

The other day I was talking with a nonprofit leader and was suddenly struck by how much his story echoed so many of the stories I hear from nonprofit leaders.

See if your nonprofit fits some or all aspects of the scenario he faces:

  • His board is passionate about the mission and wants to be helpful, but they don’t really contribute much to the financial model.
  • His staff and board want to expand services, but they can’t grow their budget past where it has been for years.
  • Their funding is fairly dependent on just a couple of sources.
  • Their funders support specific projects, rather than the organization or mission as a whole.
  • Their strategic plan hasn’t been updated in 5 years.
  • The board worries whether some of what the nonprofit does duplicates other efforts out there.
  • Board and staff don’t have a common way to articulate what the nonprofit is and does.
  • Their nonprofit is just barely getting by and has no cash reserves.

They, like so many nonprofits, are stuck in a rut.

They want to accomplish something much bigger and better but continue to spin their wheels against what they have always done. It’s really a chicken or the egg scenario. A nonprofit is unable to grow their services, their board, and their supporters because the organization has limited resources. And so they keep soldiering on, same as it ever was.

But let’s face it folks, in times like these, the status quo just isn’t going to work anymore.

Luckily, there is a way out.

When I encounter a nonprofit leader like the one above who has a real desire to break out of this pattern, I suggest a Financial Model Assessment. A Financial Model Assessment analyzes every aspect of the organization (Mission, Vision, Strategy, Program Delivery and Impact, Staffing, Board, Marketing, External Partnerships) in order to understand how each element helps or hurts their financial sustainability and their ability to achieve results. It then analyzes all current and potential revenue streams to find opportunities for sustainable growth. Finally, the Assessment gives very detailed recommendations for creating a more effective and sustainable organization.

I am a firm believer in a holistic approach. You simply cannot bemoan a lack of financial resources and call it a day. You must dig deep and figure out how everything you do contributes to or detracts from your current reality.

But because nonprofit leaders are usually consumed by putting out fires and worrying when the next check will come, they don’t have the ability to take a big step back and figure out how all of the pieces can and should fit together. So a Financial Model Assessment allows a nonprofit board and staff to understand what is holding their organization back from becoming financially sustainable AND achieving more mission-related results.

Once I’ve written my final Assessment, I lead a change discussion among board and staff. We delve into the Assessment and discuss how and why I came to the conclusions I did. This is often a galvanizing moment for the nonprofit — a moment when board and staff finally understand together a way forward that can allow them to be smarter, more strategic, more sustainable and ultimately achieve more results.

If you are interested in big change and need help navigating how to get there, download the Financial Model Assessment Benefit Sheet that describes the process in more detail. And if you’d like to read about other nonprofits who undertook a change process, check out these case studies.

Photo Credit: Public domain via Wikimedia

Tags: , , , , , , , ,

10 Great Social Innovation Reads: January 2017

In January it seemed as though we moved into social change hyper drive.

With the inauguration of a new president, a litany of controversial executive orders, numerous efforts to block or minimize them, and advice for or frustration with the nonprofit and philanthropic sectors’ responses, the world of social change moved at warp speed.

Add to that lots of predictions and advice for the nonprofit sector, and some small, but inspiring efforts to feed and comfort those in need and January was a very busy month.

Below are my picks of the 10 best reads in January, but feel free to add to the list in the comments. If you want a longer list, follow me on Twitter @nedgington, and if you want to see past months’ lists go here.

  1. Some still struggled to understand the 2016 election. Continuing his 4-year series on the smaller cities of America for The Atlantic, James Fallows argued that while Americans distrust national policy and institutions they still have faith in local government: “City by city, and at the level of politics where people’s judgments are based on direct observation rather than media-fueled fear, Americans still trust democratic processes and observe long-respected norms.”  And Eytan Oren offered some insight into how social media and major technology companies took civic engagement to a new level in the 2016 election.

  2. A few days before Trump was inaugurated, President Obama gave a farewell speech that focused on the need for greater civic engagement, and he and Michelle Obama launched a new foundation to help deliver on those ideas. And Pew Research crunched the numbers on how America changed over his 8-year term.

  3. Quite quickly after his inauguration, President Trump signed several executive orders, and a “resistance” movement that is rather unprecedented in U.S. history mobilized in response.   thing the resistance movement has going for it is their savvy use of social networks.

  4. In particular, Trump’s executive order banning immigration from 7 Muslim-majority countries created some soul-searching in the philanthropic sector. Inside Philanthropy‘s David Callahan expressed frustration about a seeming silence among philanthropic leaders on Trump’s immigration ban, asking “What’s the point of being in charge of society’s risk capital if you don’t take risks at a moment like this?” But 50 philanthropic leaders signed a strong statement against the ban.

  5. Amid all of the uproar surrounding the immigration ban, there was light in small places. A group of people from New Jersey launched a supper club that creates community among and raises money for Syrian refugees.

  6. Because January started a new year, there were the usual posts predicting what the new year will bring for philanthropy and nonprofits.

  7. But this year was different because several writers argued that the nonprofit sector needs to move more strongly into advocacy. And there was lots of other advice about how nonprofits should approach the Trump era, from building resilience, to messaging more effectively in a “post-truth” world, to making America “good” again, to answering 12 “Ifs”.

  8. A rather more sweeping bit of advice for the social change sector came from Pablo Eisenberg who argued that the organization Independent Sector should no longer be an association of both nonprofits and foundations, but just nonprofits. The HistPhil blog asked him to elaborate on the history of that important institution.  

  9. BoardSource, GuideStar, BBB Wise Giving Alliance, and the Association of Fundraising Professionals partnered to release a new method for evaluating a nonprofit’s fundraising effectiveness. The method looks at three metrics in a nonprofit organization: the fundraising net revenue, the cost of fundraising, and the dependency quotient (the percent of the budget funded by the nonprofit’s top 5 donors). Because let’s remember, as Rick Moyers pointed out, Development Directors Are Not Miracle Workers.

  10. Finally, a tangent into something small and really cool. The idea of little free libraries that have been cropping up on people’s front lawns has gone in a new direction. Mini food pantries have started helping neighbors in need.

Photo Credit: Jens Schott Knudsen

Tags: , , , , , , , , , , , ,

5 Questions Nonprofit Leaders Should Ask About Money

One of my predicted “5 Nonprofit Trends to Watch in 2017” is that we will see “More Analysis of What Nonprofit Financial Sustainability Requires.” In other words, I think (hope) in this new year that nonprofit leaders and their funders will work to figure out how to make nonprofits more financial sustainable.

Financial sustainability means that both the way money comes in the door (revenue) and the way money goes out the door (expenses) happen in a smart, strategic way. When they do, you have a robust financial model.

In my mind, one of the first steps toward that sustainability is for nonprofit leaders to look inward. While there are many reasons for the financial instability that plagues the nonprofit sector — from the Overhead Myth, to restricted funding, to lack of financial training —  nonprofit leaders sometimes perpetuate the dysfunction themselves with an unhealthy attitude toward money.

Nonprofit leaders must embrace money as a tool — rather than a scourge — that can help them better achieve their mission.

So in this new year, in order to get closer to financial sustainability in your own nonprofit, I challenge you to ask yourself these questions about  money:

  1. Do I embrace money as a tool to achieve our mission?
    As the ultimate cheerleader of your nonprofit’s board and staff, you must ask whether you yourself fully embrace money. Money has long been viewed as a necessary evil in the nonprofit sector. We don’t want too much of it (for fear of scaring off donors); we don’t want to ask people for it (for fear of rejection); we don’t want to make our board go out and get it (for fear they will bolt). But it is your role as leader of your nonprofit to eschew those outdated notions and instead recognize that a smart, well-executed money strategy can be instrumental to achieving your mission.

  2. Do we know our actual costs?
    Not just the full costs to run each of your programs (which is important), but the overall costs of executing on your strategic plan. I can’t tell you how many nonprofit leaders I meet who a) don’t have a strategic plan in place or b) if they do, they haven’t tied it to money. You simply will not accomplish anything if you don’t analyze and plan for what it will truly cost to accomplish your goals as an organization. So start by using this Bridgespan tool to figure out the full costs of your programs and then add to that the other organizational and infrastructure costs necessary to achieve your overall strategic goals.

  3. Do we have a financial model?
    So that’s how money flows out of the organization, but to fully flesh out your financial model you need to plan for how money will flow into the organization. The funny thing about money is that if you are smarter and more strategic about it, you will attract more of it. So instead of hoping and praying that enough money will show up at your doorstep, create an overall financial strategy that includes your tactics for how you will attract each applicable revenue line (individuals, foundations, corporations, government, and/or earned income) that flows into your financial model.

  4. Does our board understand and contribute to our financial model?
    Once you’ve figured out your financial model, you must get your board fully involved in it. A nonprofit will never be financially sustainable if money is left solely to the staff to figure out.  That means the board needs to understand revenue and expenses, over the long-term, and how they apply to the overall strategy of the organization. And it is not enough for them just to understand it, they must contribute (in many and various ways) to the successful implementation of that financial model.

  5. Do we ask funders to support the effective execution of our financial model?
    You can’t just have a great financial strategy on paper, you also need to invest in the structure and systems necessary to execute on that strategy. That means you have to hire talented money-raising staff, acquire functional technology, develop capable donor systems, create compelling marketing and communications. Those elements make up your money-raising function, and in order to make it effective you have to invest in those elements. So figure out what that will cost and convince some funders to pay for it.

It’s time to get over your money issues. You will not achieve financial sustainability unless you fully embrace money as a critical conduit to the social change you seek.

Photo Credit: Daniel Borman

Tags: , , , , , , , ,

A Monster List of Social Changemakers on Twitter

social change monster listToday is Halloween, which means it’s time for another monster list. In keeping with my Halloween tradition on the blog, today I’d like to add to past monster lists (of social change blogs, conferences, books, and resources) with a monster list of social changemakers to follow on Twitter.

I know, I know, Twitter is struggling.  Maybe it will never become the profit powerhouse that Facebook is, but Twitter has become a unique and powerful social change tool, through hashtag movements like #BlackLivesMatter and #ArabSpring and its ability to connect like-minded people.

In my mind, Twitter is infinitely more thought-provoking and gamechanging than other social networks. So I hope it finds its way and continues to play an important role in the social change space.

Below is my monster list (in no particular order) of interesting social change people to follow on Twitter. These are people who have fascinating things to say about the world of social change. They are nonprofit, philanthropic, government leaders; journalists; thought leaders and more who use Twitter as a way to spark conversation, spread ideas and make social change a reality.

I have let them describe themselves via their Twitter “Bio”:

  • @knightfdn The Knight Foundation supports transformational ideas that promote quality journalism, advance media innovation, engage communities and foster the arts.
  • @pndblog Opinion and commentary on the changing world of philanthropy. Brought to you by Philanthropy News Digest and the Foundation Center.
  • @vppartners Venture Philanthropy Partners brings people together to support children and youth.
  • @RockefellerFdn The Rockefeller Foundation’s mission—unchanged since 1913—is to improve the well-being of humanity throughout the world.
  • @carolinefiennes Director of Giving Evidence: encouraging /enabling charitable *giving* based on sound *evidence*. Wrote acclaimed book, It Ain’t What You Give. FT columnist.
  • @ClaraGMiller President, F. B. Heron Foundation
  • @MarketsForGood #Information to drive #socimp. Movement seeking ways to increase the social sector’s capacity to generate, share & use #data to improve decision making.
  • @Cingib Strategist/writer for foundations/NPs on civic engagement, capacity-building, democracy, philanthropy, nonprofit sector, and education
  • @kanter Let’s talk about networks, data, self-care, & social media for nonprofit learning & impact. #nptech Instructional designer, trainer, walker, & magic markers!
  • @ajscholz Chief Everything Officer @SphaeraInc / Learning to collaborate to survive the 21st century / We now have the technological, legal and financial tools for it!
  • @Philanthropy News, resources, advice, and commentary about the nonprofit world from The Chronicle of Philanthropy.
  • @KateSBarr Believes that working at & leading nonprofits calls upon the best in people. Executive director at @NAFund
  • @NTENorg Serving our members in the nonprofit community to better use technology to further their mission. We promote nonprofit tech (#nptech) & training (#NTENlearn).
  • @Daniel_Stid Skeptical optimist, Madisonian, partisan of representative democracy, fan of Sparty and the Flying Dutchmen.
  • @IUPhilanthropy Indiana University Lilly Family School of Philanthropy offers a comprehensive approach to philanthropy—Improving Philanthropy to Improve the World.
  •  President/CEO of Grantmakers for Effective Organizations. Committed to helping our sector exceed expectations.
  •  Director for Effective Philanthropy at the Hewlett Foundation.
  •  Phil Buchanan is president of the Center for Effective Philanthropy.
  • @CEPData The Center for Effective Philanthropy focuses on the development of comparative data to enable higher-performing funders.
  •  BUILD Director at the Ford Foundation. Passionate about the social sector, addressing inequality in all its forms, & Jane Austen.
  •  We make millions of dollars in loans to nonprofits and push for fundamental improvement in how money is given and used in the sector.
  •  The National Council of Nonprofits is a trusted resource and advocate for America’s charitable nonprofits.
  • Crusader for at in and beyond. Especially fond of rhymes.
  • @PackardOE We’re the Packard Foundation Organizational Effectiveness Team. We’re here to share and learn about organizational effectiveness, philanthropy and supporting the social sector.
  •  Founder of /. Now leading to further reveal the power of food, community & social enterprise. No Waste!! Opinions are mine.
  •  Reporter at The Chronicle of Philanthropy ~ I cover nonprofit innovation, social enterprise, data, and technology. (I am so not the political pundit.)

I know I have missed many thought-provoking social changemakers. So, who would you add to the list?

Photo Credit: Wikimedia Commons

Tags: , , , , , , ,

10 Great Social Innovation Reads: Sept 2016

social changeA lot of the conversation in September centered around inequality, philanthropy and data. When do data and philanthropy address inequality and when do they actually reinforce it? And if you add to that discussion about whether donors really care about impact; concern about the distracting, addicting influence of social media; and a call for philanthropists to be more supportive of nonprofit organizations, September was a very interesting month in the world of social change.

Below are my picks of the 10 best reads in September. For a longer list, follow me on Twitter @nedgington. And for previous months’ 10 Great Reads lists go here.

  1. Equity has certainly become the new buzzword in philanthropy. But some are skeptical that philanthropy, as it currently operates, can actually impact it. Writing in The Guardian, Courtney Martin argues that in order to truly achieve equity, philanthropy must fundamentally change: “If we really want to reinvent philanthropy then we are going to have to look at the underlying historic and structural causes of poverty and work to dismantle them and put new systems in their place. It’s also about culture – intentionally creating boundary-bashing friendships, learning to ask better, more generous questions, taking up less space. It’s about what we are willing to acknowledge about the origins of our own wealth and privilege. It’s about reclaiming values that privilege often robs us of: first and foremost, humility. But also trust in the ingenuity and goodness of other people, particularly those without financial wealth.”

  2. Marjorie Kelly argues that the key to addressing wealth inequality is to return to the old model of worker ownership.

  3. And speaking of wealth inequality, The New York Times slices and dices U.S. income data over the last couple of decades to understand how inequality varies by state over time.

  4. According to Cathy O’Neil’s new book, Weapons of Math Destruction, the increased availability of data may actually be worsening wealth inequality.  Journalist Aimee Rawlins reviews O’Neil’s book, which paints a very unsettling picture of how data is being used to lengthen prison sentences for people with a family history of crime, raise interest rates on a loan because of the borrower’s zip code, and otherwise reinforce our broken system. But perhaps data can also help address wealth inequality. The Salvation Army and Indiana University’s Lilly Family School of Philanthropy have released a new tool for mapping poverty in the U.S. The Human Needs Index (HNI) uses Salvation Army service data from communities across the country to track human need across seven areas. The idea is that with an improved ability to map need, philanthropy can more effectively address that need.

  5. One of the biggest uses of data in philanthropy is to prove the impact an intervention has, but Matthew Gerken argues that donors aren’t actually interested in impact. New research from Penelope Burk’s Cygnus Applied Research might disagree.

  6. Andrew Sullivan, the formerly prolific blogger, has had an epiphany about our addiction to social media and writes an amazing long-form piece about our “distraction sickness.” If you worry that our always on culture is leaving something to be desired, read this.

  7. Last month many were bemoaning philanthropy’s slow and weak response to the devastating summer flooding in Lousiana. Well, it looks like crowdfunding has come to the rescue.

  8. Long-time funder Elspeth Revere, retired from the MacArthur Foundation, writes a scathing critique of philanthropy’s unwillingness to fund nonprofits effectively and sustainably. As she puts it, “The challenges facing America and, indeed, the world require philanthropy to be as effective as possible. Nonprofit organizations are philanthropy’s partners in addressing these challenges. They have unusual flexibility to take risks and pursue solutions to our most pressing problems. As grant makers, we need to focus our attention and philanthropic resources on building strong leadership and solid, sustainable, and diverse institutions that address the problems and opportunities we care most about.” Amen!

  9. Jyoti Sharma, president of the Indian water and sanitation nonprofit FORCE, worries that a current focus on social entrepreneurship as the solution to world ills leaves much behind. As she argues, “Do we need to see social entrepreneurship as a “non”-nonprofit? Should we instead promote hybrid models that plan the social change effort with both charity and revenue streams? Should we encourage community entrepreneur networks where charity funds are used to support entrepreneurial efforts from within a beneficiary community that help solve their social problem? Should we advocate for governments and corporates to join hands with nonprofits in planning, delivering, and monitoring welfare services? Equally, should we set ethical and social responsibility standards for entrepreneurships and applaud them for their contribution to society?”

  10. And finally, the Nonprofit Tech for Good blog pulls back the curtain on social media with their “12 Not-So-Great Realities About Nonprofits and Social Media.”

Photo Credit: Ixtlilto

Tags: , , , , , , , , , , , ,

Where Does Your Nonprofit Fit In the Market?

nonprofit puzzleAs much as we might like to deny it, nonprofits exist in a market economy, which means that nonprofits, like everything else, must compete for customers and resources. Therefore it is critical that you understand where your nonprofit fits in the market.

While a business has one customer, a nonprofit has at least two distinct customer groups:

  1. Those who benefit from a nonprofit’s work (clients), and

  2. Those who fund that work (donors, government contractors, etc).

So it is absolutely critical that nonprofit leaders understand what unique value their work brings to these customers. This can be done through a Marketplace Map, which is one of the first exercises (along with a Theory of Change) that I help nonprofit leaders create during a strategic planning process.

A nonprofit organization is best positioned to create social change in a sustainable way when their core competencies (what the organization does better than anyone else) intersects with a community need (or set of social problems) apart from their competitors or collaborators, like this:

Marketplace Map

 

But don’t get me wrong. I am not saying that a nonprofit shouldn’t collaborate.

On the contrary, nonprofit leaders must forge strategic alliances that help move the social change they envision forward. However, when they create those alliances, they must be crystal clear about what their organization brings to the table, versus what a potential ally brings to the table. Thus, a marketplace mapping exercise is absolutely critical to charting a way forward.

In order to create their marketplace map, a nonprofit’s board and staff must answer these three key questions:

  1. Core Competencies: What superior assets (expertise, relationships, etc.) do we possess as an organization that are not easily replicable?

  2. Community Needs: What community needs/social problems are we attempting to address?

  3. Competitors/Collaborators: What other entities are working on some/all of those same problems?

The social change sector has become increasingly competitive in recent years. Now more than ever, nonprofits need to understand this external marketplace of competitors/collaborators against their own core competencies in order to understand the unique value that their nonprofit can contribute.

From this marketplace mapping exercise, some key strategic questions will emerge for the nonprofit, such as:

  • Where do our core competencies and activities end, and where do others’ begin?
  • Is our nonprofit better positioned than other entities to conduct all of the activities (from our Theory of Change) that we currently do? Should some activities be left to those who do it better?
  • Are there core competencies that we must develop in order to better address the community needs we’ve identified?
  • Are there collaborators/competitors that we should be more strategic about aligning with?

Creating a Marketplace Map, much like creating a Theory of Change, is an incredibly useful exercise that gets your board and staff thinking in bigger, more strategic ways about your work. And those more strategic conversations can help lead to a more effective and sustainable path forward.

If you want to learn more about how I work with clients to develop their strategic plan, download the Strategic Plan benefit sheet.

Tags: , , , , , , , ,


Share




Popular Posts


Search the Social Velocity Blog