Moving From Scarcity to Abundance: An Interview with Beth Kanter

In this month’s Social Velocity blog interview, we’re talking with Beth Kanter.  Beth is a leading thinker and innovator around social media for nonprofits. She writes one of the longest running and most popular (and one of my favorite) blogs for nonprofits  Beth’s Blog: How Nonprofits Can Use Social Media. She also co-authored the seminal book The Networked Nonprofit with Allison Fine in 2010, which gives nonprofits a road map for understanding the brave new world of social media and how to embrace it. I often recommend the book to my clients because it provides a completely new way of understanding how nonprofits can and should fit into the wider marketplace. Beth has over 30 years working in the nonprofit sector in technology, training, capacity building, evaluation, fundraising, and marketing.

You can read past interviews in our Social Innovation Interview Series here.

Nell: Because the nonprofit sector is undercapitalized it is highly competitive and individual nonprofits tend to isolate themselves and become “fortresses” as you call them. Yet what you are arguing for, a networked  or connected mentality, is a huge change for a risk-averse sector. How realistic is it to think that the majority of nonprofits will embrace this change? What will convince the majority of nonprofits to change?

Beth: That’s a great question.  I’m suggesting that nonprofit shift from a scarcity mentality to embrace abundance.  It is a much less exhausting way of working, plus it is more sustainable. Here’s more, here and here.

Nell: For those nonprofits that haven’t yet recognized social media as a tool for achieving their mission, what do you think is holding them back? What are the hurdles that keep them from a networked approach?

Beth: Risk adversity – issues around organizational culture or changing the way they work or deliver programs.  Here’s a recent example from the classical music world. Nonprofits need to establish a social media policy, there’s more here.

Nell: One idea that you propose is that nonprofit boards use social media to get those outside the organization to contribute to the direction and strategy of the organization (online board meetings, etc). This is a radical idea in a sector that has historically kept their board exclusive and elusive. What is the value of a more disbursed form of leadership, and can it work for every nonprofit?

Beth: It can work, but the nonprofit culture and way of working has to be open enough to accept it and do it.  The value — better quality programs, ideas, potential revenue, and more.   More here and here.

Nell: What does a networked executive director look like? Or does the whole understanding of the nonprofit executive director need to change as well?

Beth: Wow, that is such a good question!  The big thing that needs to change is that ED’s need to work with a networked mindset, a stance toward leadership that prioritizes openness, transparency, relationship building and distributed decision-making, more here.

Nell: What do you think will happen to those nonprofits that don’t move toward a networked approach?

Beth: There will be degrees of networked approaches, but this approach helps nonprofits remain relevant so they don’t need to over think.

Nell: For those nonprofits who have embraced the ideas of the networked nonprofit, what’s the next frontier? What do they need to be doing, thinking about, or experimenting with next?

Beth: Master the networked approach and the next thing on the horizon is the anytime, anywhere nonprofit – the impact of mobility – not just the use of smartphones, but the idea that we’re no longer tethered to a screen.

Tags: Beth Kanter, Beth's Blog, nonprofit board of directors, nonprofit change, nonprofit leadership, nonprofit social media policy, nonprofits and social media, The Networked Nonprofit

Financing Not Fundraising: Finding Individual Donors

In part four of our ongoing Financing Not Fundraising blog series, we are focusing on the most untapped, greatest sustainable funding opportunity facing the nonprofit sector. Individual donor dollars make up 80% of the private money entering the nonprofit sector each year, compared to 5% from corporate dollars and 12% from foundation dollars. Yet many nonprofit organizations don’t know how to effectively embrace the full opportunity of that market.

Here are five steps to get you started:

1. Move Beyond Direct Mail. While direct mail used to be the only way to find individuals willing to support your cause, there are now many additional channels you must explore to stay relevant (email, blogs, Facebook, Twitter, etc). Beth Kanter and Allison Fine’s new book The Networked Nonprofit makes a fundamental argument about how nonprofit organizations can use social media to leverage people outside of the organization (donors, volunteers, supporters) to build momentum (resources, funds, mind-share, advocacy, etc) for their cause. If nonprofits more effectively used social media to build their networks, individual donor fundraising could be revolutionized.




2. Don’t Separate Donors From Other Supporters. Just as fundraising is often sequestered from the program work of the organization, funders are also often kept separate from other organization supporters.  Volunteers are often left off funding appeals for fear of asking them to do “one more thing” for the organization. And funders are not asked to become volunteers or advocates. Instead of putting organization supporters into silos, open all opportunities to everyone. Better yet, ask (or allow) supporters to create their own ways to accelerate the work of the organization (like tapping into their own networks to help). Once integrated, the possibilities for building support are endless.




3. Stop Fearing the Major Donor. Many nonprofit organizations would love to have major individual gifts coming in the door, but don’t know how to find and solicit those donors. The process, once understood, is actually pretty simple. You must identify, qualify, cultivate, solicit and, most importantly, steward donors. Use your board, volunteers, supporters to help identify and qualify people who meet three criteria: 1) belief in the organization’s cause 2)connection to a person at the organization 3)personal capacity to give at your major donor level. Once board, friends, supporters are involved in a well-defined process, major donors are sure to follow.




4. Get Your Board Focused. Boards of Directors are often misused in fundraising. They serve on event committees, write grants, make cold calls, or seal envelopes. Instead of using them for these low ROI activities, give them one fundraising job and one job only: to help move major donors through the cycle outlined above. Even if board members don’t have networks of wealthy friends, there is still much they can do to help raise major donor dollars. Board members can help identify major donor prospects, uncover information about potential prospects, invite prospects to a cultivation event, go on a major donor call, send thank you notes or make phone calls. The board is a key part of your organization’s network, put them to their highest and best use.




5. Do Away With the Pity Ask. To effectively raise money from individual donors, especially major donors, you have to move away from the pity donation and toward the investment opportunity. Donations and investments differ in every aspect:
   And investment opportunities are not only for the major donor. Even your smallest donor can be made to understand the broader impact of the organization’s work, how important their dollar is, and what the return on investment can be.

Individuals are able and want to do so much more. If nonprofits more effectively seized opportunities to engage and invest individuals, the sector could become more sustainable and better able to create change.

If you want to learn more about how to apply the concepts of Financing Not Fundraising to your nonprofit, check out our Financing Not Fundraising Webinar Series.

To download the 27-page Financing Not Fundraising e-book, click here.

Tags: Allison Fine, Beth Kanter, financing not fundraising, individual donors, major donor fundraising, nonprofit board of directors, nonprofit fundraising, The Networked Nonprofit

What I’m Reading

Someone asked me the other day how long it takes me to write a blog post. I told them the writing only takes about an hour or two. However, the reading and thinking about what’s being done, or said, or written about and what I want to add to the conversation takes many times longer. So, to that end, I thought I’d give you a list of the blog posts, articles, and books that caught my interest and really made me think in the past month…

• Punching at Your Own Weight in Social Media
• Philanthropy’s Next Decade
• Leadership to the Rescue
• The Social Innovation Fund One Year Later
• The Giving Pledge and the Opportunity of a Generation
• U.S. Lagging, Not Leading, Social Entrepreneurship
• Warren Buffett’s Philanthropic Pledge
• How Can Nonprofits Plan for Growth and Impact?
• The Networked Nonprofit
• Social Media Listening: You Don’t Have To Be Joey Chestnut on the 4th of July!
• Wall Street Saves the World!
• Getting Results: Outputs, Outcomes & Impact
• The Slacktivist Debate Continues
• Is All Entrepreneurship Social?
• Are You Crazy Enough to Change the World?

What caught your interest this month?  Add to the list in the comments.

Photo Credit: pixel0908

Tags: nonprofit growth, nonprofit leadership, nonprofit outcomes, Philanthropy, Social Innovation Fund, social media, The Networked Nonprofit, Warren Buffett