The ongoing recession has left many non profits gasping for air. The unfortunate truth is many will declare bankruptcy or even dissolve. It’s become critical for non-profit organizations to understand the new rules for success and incorporate them. Those organizations that reshape their strategies to meet the new challenges will be stronger and more effective than before.
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New Rules for Non Profits
1. New Rules for Non Profits:
Tips for Navigating a Changed World
Linda Ziskind
2. Brother, can you
spare $11.32 billion?*
*According to a report from the Giving USA Foundation, total charitable
giving fell to $303.76 billion in 2009, down from $315.08 billion in 2008.
4. Nonprofits faced unprecedented, simultaneous
challenges over the past couple of years:
The ongoing recession has reduced federal, state, and
corporate funding dollars
5. Nonprofits faced unprecedented, simultaneous
challenges over the past couple of years:
The ongoing recession has reduced federal, state, and
corporate funding dollars
Soaring and prolonged unemployment, mortgage defaults,
and diminished net worth due to the battered market and
investment advisor malfeasance has resulted in diminished
individual donations
6. Nonprofits faced unprecedented, simultaneous
challenges over the past couple of years:
The ongoing recession has reduced federal, state, and
corporate funding dollars
Soaring and prolonged unemployment, mortgage defaults,
and diminished net worth due to the battered market and
investment advisor malfeasance has resulted in diminished
individual donations
The high response rate and amount donated towards aid in
the recent string of natural disasters has created a bit of
donor fatigue
7. The Results:
*Johns Hopkins University Center for Civil Society Studies, “Recession Pressures Non Profit Jobs” 7/14/2010
**Nonprofit Finance Fund Survey 2010
***Paul C. Light, professor of public service at NYU
8. The Results:
Nearly 40% of nonprofit organizations currently lack
adequate staff to deliver programs & services*
*Johns Hopkins University Center for Civil Society Studies, “Recession Pressures Non Profit Jobs” 7/14/2010
**Nonprofit Finance Fund Survey 2010
***Paul C. Light, professor of public service at NYU
9. The Results:
Nearly 40% of nonprofit organizations currently lack
adequate staff to deliver programs & services*
61% of nonprofits have 3 months, or less, of available cash
reserves.**
*Johns Hopkins University Center for Civil Society Studies, “Recession Pressures Non Profit Jobs” 7/14/2010
**Nonprofit Finance Fund Survey 2010
***Paul C. Light, professor of public service at NYU
10. The Results:
Nearly 40% of nonprofit organizations currently lack
adequate staff to deliver programs & services*
61% of nonprofits have 3 months, or less, of available cash
reserves.**
It has been predicted that more than 100,000 nonprofit
groups will fail between November 2008 and November
2010.***
*Johns Hopkins University Center for Civil Society Studies, “Recession Pressures Non Profit Jobs” 7/14/2010
**Nonprofit Finance Fund Survey 2010
***Paul C. Light, professor of public service at NYU
11. But peeking out from behind all of that grimness is a bit of sun.
12. But peeking out from behind all of that grimness is a bit of sun.
Social Media
13. But peeking out from behind all of that grimness is a bit of sun.
Social Media
14. But peeking out from behind all of that grimness is a bit of sun.
Social Media Technology
15. But peeking out from behind all of that grimness is a bit of sun.
Social Media Technology
16. But peeking out from behind all of that grimness is a bit of sun.
A new culture of
Social Media Technology participation,
collaboration, and
shared information.
17. Embrace change and learn the new rules: organizations that
reshape their strategies and tactics to meet new challenges are
the ones that will survive and continue to be effective
18. Non profits and for profit businesses are beginning
to learn from each other’s best practices, so it’s
not surprising that the new rules for non profits are
a lot like the rules that successful businesses follow
20. The New Rules:
1. Define your brand and mission.
2. Incorporate businesses planning practices
a) Develop concrete financial and program objectives
b) Identify specific strategies and tactics for achieving
objectives
c) Define criteria for success for each program
d) Implement, review, analyze, revise
21. The New Rules:
1. Define your brand and mission.
2. Incorporate businesses planning practices
a) Develop concrete financial and program objectives
b) Identify specific strategies and tactics for achieving
objectives
c) Define criteria for success for each program
d) Implement, review, analyze, revise
3. Strategically incorporate technology to enable increased staff
efficiency, operational economy, and access to valuable data.
22. The New Rules:
1. Define your brand and mission.
2. Incorporate businesses planning practices
a) Develop concrete financial and program objectives
b) Identify specific strategies and tactics for achieving
objectives
c) Define criteria for success for each program
d) Implement, review, analyze, revise
3. Strategically incorporate technology to enable increased staff
efficiency, operational economy, and access to valuable data.
4. Show appropriate appreciation to your donors
23. The New Rules:
1. Define your brand and mission.
2. Incorporate businesses planning practices
a) Develop concrete financial and program objectives
b) Identify specific strategies and tactics for achieving
objectives
c) Define criteria for success for each program
d) Implement, review, analyze, revise
3. Strategically incorporate technology to enable increased staff
efficiency, operational economy, and access to valuable data.
4. Show appropriate appreciation to your donors
5. Embrace innovation
24. The New Rules:
1. Define your brand and mission.
2. Incorporate businesses planning practices
a) Develop concrete financial and program objectives
b) Identify specific strategies and tactics for achieving
objectives
c) Define criteria for success for each program
d) Implement, review, analyze, revise
3. Strategically incorporate technology to enable increased staff
efficiency, operational economy, and access to valuable data.
4. Show appropriate appreciation to your donors
5. Embrace innovation
6. Be part of the culture of participation, collaboration, and
communication.
25. 1. Define your brand and mission.
• Your brand identity is what distinguishes and identifies the soul of
your organization. It’s more than your logo, or website. It’s what
you say and how you say it. It’s your voice, your tone, your
programming, and your attitude. It’s how people think of you.
• Your mission (or vision, or core ideology) is part of your brand and
defines everything you do. It isn’t the product you make or
service you provide – it’s the benefits they deliver. (i.e., Merck
doesn’t talk about pharmaceutical research or drug efficacy.
Their mission is: “We are in the business of preserving and
improving human life. All of our actions must be measured by our
success in achieving this goal.”
26. 2. Incorporate business planning practices.
Clearly define your financial and program objectives
Use those objectives as the guide for developing programs,
development, and fundraising strategies and tactics
Develop criteria for to measure and evaluate success for
programs, events, and fundraising initiatives. Use that criteria to
analyze results, evaluate effectiveness, and revise strategies or
tactics as needed.
27. 3. Strategically incorporate technology to
enable increased staff efficiency, operational
economy, and access to valuable data.
There is a potential goldmine of data waiting to be extracted,
analyzed, and used to help you generate more revenue, develop
more successful relationships, and operate more effectively.
Donor database and member management software
Project and event management software
Email marketing programs
Online donation programs
www.nten.org (Consumers Guide to Low Cost Donor Management Systems –
pdf)
www.techsoup.org
www.constantcontact.com
www.basecamphq.com
www.networkforgood.org
28. 4. Show appropriate appreciation to your donors
Stay in touch with donors, even if they can’t give as much as they
did at one time
29. 4. Show appropriate appreciation to your donors
Stay in touch with donors, even if they can’t give as much as they
did at one time
Make sure donors understand the direct impact of their gift – show
them how they have impacted your mission.
30. 4. Show appropriate appreciation to your donors
Stay in touch with donors, even if they can’t give as much as they
did at one time
Make sure donors understand the direct impact of their gift – show
them how they have impacted your mission.
Say thank you frequently and meaningfully
31. 4. Show appropriate appreciation to your donors
Stay in touch with donors, even if they can’t give as much as they
did at one time
Make sure donors understand the direct impact of their gift – show
them how they have impacted your mission.
Say thank you frequently and meaningfully
Engage donors continuously – fundraising isn’t seasonal – it’s
always
32. 5. Embrace innovation.
Non profits are facing unprecedented challenges on all fronts and
are finding that their established processes are falling short in
addressing them
Foundation grantors and individual donors are increasingly
requiring evidence of program effectiveness
As more and more people gravitate towards social media,
organizations must get better at finding and engaging them
there
Reduced budgets and staffing makes it imperative to find
more efficient ways of operating
33. 5. Embrace innovation.
Survival requires developing or finding, and then incorporating,
innovative new solutions to address challenges
Research peer organization best-practices
Implement accountability and evaluation processes
Conduct an honest evaluation of your programs, fundraising,
marketing, and operations and look for new strategies and
solutions for the ones that aren’t successful
Look for silos in your organization and find ways of integrating
efforts
Find opportunities to collaborate
34. 6. Be part of the culture of participation,
collaboration, and communication.
Marketing communication is not longer a passive channel.
People respond when they feel engaged and can
participate.
Don’t drown in the social media ocean. Be practical about
how much you can handle.
Your constituents expect transparency. Use social media to
provide that.
Use social media channels to tell a compelling story:
Twitter (TwitCause)
YouTube (http://www.youtube.com/nonprofits)
Flickr
Facebook
43. New Rules for Non Profits:
Tips for Navigating a Changed World
Linda Ziskind
July 20, 2010
Editor's Notes
It’s not that they didn’t see it coming, but many non profits were unprepared for the severity of the current financial crisis and its potential effect on them. A recent report from the Giving USA Foundation found that in 2009, total charitable giving in the US dropped over $11bn.
In fact, this seems to have been the perfect-storm of disasters for non profits
Federal, state, and corporate funding have been drastically cut,
For a range of unfortunate reasons, people are worth a lot less than they used to be, so, consequently, they’re giving a lot less,
A steady stream of massively destructive natural disasters, and a strategic incorporation of innovative fundraising strategies by relief organizations, has created donor fatigue.
The net result on non profits has been grim:
Staff reductions and reduced working hours have left nearly 40% of NPOs without enough staff to deliver their programs & services
61% of nonprofits are operating on the edge with 3 months or less of available cash reserves.
In early 2008, Paul Light, an NYU professor of public service, predicted that more than 100,000 non profit organizations would fail between Nov. 2008 and November 2010. Traditionally, an NPO that ran out of money would just close its doors. But in the last year, more and more non profits, including arts, as well as social services organizations, are filing for bankruptcy protection. There hasn’t been data compiled on the number of NPOs doing this, but, Diana Aviv, president and CEO of Independent Sector, a trade association for non profits, says it’s becoming more common.
But, it’s not all bad news. At the same time that economic challenges have been hammering at the effectiveness of traditional strategies and tactics, something new has emerged.
While social media is part of it…..
It’s actually just the channel for delivery.
Technology is, of course, critical…..
But that’s just the framework.
This thing that, right under our noses, is changing the rules and tactics for running a successful nonprofit, is the social media-enabled, technology-supported change in our culture. We are living in a new culture where everyone can participate, collaborate, and share information.
It may not be possible to predict which organizations will weather this perfect-storm of challenges, but it’s a given that all the organizations that make it through will have an important characteristic in common: a willingness to embrace the changes in culture and communication and reshape their strategies to fit them.
YouTube benefits for non profits: Premium branding capabilities and increased uploading capacity The option to drive fundraising through a Google Checkout "Donate" button Listing on the Nonprofit channels and the Nonprofit videos pages Ability to add a Call-to-action overlay on your videos to drive campaigns Posting a video opportunity on the YouTube Video Volunteers platform to find a skilled YouTube user to create a video for your cause.