Nonprofit World April, May, June 2016

Nonprofit World april / may / june 2016

second quarter

volume 34 • number 2

Advancement Through Sharing

To Gain Passionate Supporters Try a Fantasy Camp

33 rd

ANNIVERSARY ISSUE

INSIDE: • Wow People with Your Digital Material • Should Crowdfunding Be Part of Your Toolbox?

• Volunteers: Changing Trends in Changing Times • Diving Into the Hispanic Donor Pool • Are You Telling the Right Liquidity Story?

• A Primer on Generational Philanthropy • The Top Five Apps You Should Be Using Right Now • Emeritus Board Members: The How, the Why, the Art And much more.....

Published by the Society for Nonprofits

UST

Serving Nonprofits Since 1983

Save More. Do More.

Our Mission Is Helping You Serve Your Mission.

Get a FREE unemployment cost savings analysis at

ChooseUST.org/NPworld

If you are a 501(c)(3) organization with 10 or more employees, you may qualify for significant unemployment cost savings with the UST Program. When you join, you automatically get access to: • • •

A dedicated Unemployment Claims Representative 200+ on-demand training courses for employees HR Hotline with SPHR® & PHR® certified professionals

NONPROFIT WORLD Editor Jill Muehrcke

SOCIETY FOR NONPROFITS President Katie Burnham Laverty Membership Director Jason Chmura Board Members Jon S. Bluth

Archon Strategy Consulting Bethesda, MD

Diane M. Hults

Client CFO at Apparatus Solutions Southfield, Michigan

Katie Burnham Laverty Society for Nonprofits Temecula, California

Andrew Schiff

Managing Director, United Capital of Bethesda Bethesda, MD

Membership Director, Society for Nonprofits Livonia, Michigan

Susan J. Ellis

President. Energize, Inc. Philadelphia, Pennsylvania

Amy Good

Habitat for Humanity of Dane County Madison, Wisconsin

Tangie Newborn

President, Immense Business Solutions Washington, D.C.

Terrie Temkin

Principal, CoreStrategies for Nonprofits Miami, Florida

C. Terrill Thompson

CTThompson Consulting Philadelphia, Pennsylvania

Amy Sample Ward

CEO, NTEN (Nonprofit Technology Network) Portland, Oregon

Publisher The Society for Nonprofit Organizations Purpose: The Society for Nonprofit Organizations is a 501 (c) (3) nonprofit organization. Through Nonprofit World and other communications with its members, the Society is dedicated to bringing together those who serve the nonprofit world in order to build a strong network of professionals throughout the country.

NONPROFIT WORLD is published quarterly at the subscription price of $79 per year by The Society for Nonprofit Organizations.

Single copies are available, prepaid, at $25 per copy. NONPROFIT WORLD is available at no charge to members of The Society for Nonprofit Organizations. To subscribe or to become a member of the Society, write: The Society for Nonprofit Organizations, P.O. Box 510354, Livonia, Michigan 48151. Telephone: 734-451-3582.

Organizational Membership $150. Individual $69. E-Membership $49. Organizational members may purchase additional memberships for their board, staff, and volunteers at $25/ membership/year. Change of address: Send both new and old address, with mailing label if possible, to: The Society for Nonprofit Organizations, P.O. Box 510354, Livonia, Michigan 48151. Allow six weeks for corrections. No part of this publication may be reproduced without written permission. All rights reserved. Copyright © The Society for Nonprofit Organizations ISSN 8755-7614. POSTMASTER: Send address changes to The Society for Nonprofit Organizations, P.O. Box 510354, Livonia, Michigan 48151. E-mail: info@NonprofitWorld.org. Web page: nonprofitworld.org.

volume 34 • number 2• 2016

FEATURE STORY You can use the concept of fantasy camps in ways you may never have considered. It can be easy, fun, and a powerful path to support for your organization. “To Gain Passionate Supporters, Try a Fantasy Camp” on page 14 shows you how.

33 rd

ANNIVERSARY ISSUE

ARTICLES 14 To Gain Passionate Supporters, Try a Fantasy Camp

By Mark Mitchell & Emily Barrow

17 Trust – The Ultimate Value

Editorial Advisory Board Members Jason Chmura

contents

NONPROFIT WORLD is published by the Society for Nonprofits.

How trustworthy is your organization? Rate yourself.

By Randall Anderson

ry these tips to tap into this T group of eager donors.

DEPARTMENTS 2 Editor’s Page | Better than Team Building

By Jill Muehrcke

2 Four Things to Do Next Monday 3 Ask the Experts | Is a Personalized Letter Always Better?

By Mal Warwick

By Don Kramer

Must You Spend a Certain Amount of Your Endowment?

By Victoria Flood

High-quality digital content is scarce. That’s why you can be a hero by providing it.

6 Fundraising Forum | X + Y = $ A Primer on Generational Philanthropy

This form of raising funds can bestow great benefits—with the right planning.

22 Are You Telling the Right Story about Your Liquidity?

By Lee Klumpp & Adam Cole

What’s the best way to describe your organization’s liquidity to those who want to know?

9 Advertisers’ Index 10 Volunteer Vectors | Volunteer Screening: Changing Trends in Changing Times

By Katie Zwetzig

Are your screening practices in line with other organizations?

12 Apps for Nonprofits The Top Five Digital Tools You Should Be Using Right Now

By Dan Streeter & Tim Brown

13 The Board Room Emeritus Board Members: The How, the Why, the Art

What are the best ways to engage young donors?

By Max T. Russell

By Diane Wittenberg

By Carol Weisman

When should you give the “emeritus” title to a board member?

25 Relevant Reviews Using Marketing to Create Widespread Change

By Renee C. Herrell

8 Clear as a Bell What the Heck Are You Trying to Say?

4 People & Technology Wow People with Your Digital Material

By Stephen C. Rafe

18 Diving Into the Hispanic Donor Pool

20 Should Crowdfunding Be Part of Your Toolbox?

NE DEPART W MENT!

These strategies and tools can help you find the best solutions to your most vexing problems.

26 Nonprofit Briefs

hy are nonprofits so bad at W delivering messages? What’s the remedy?

By Terrence Fernsler

Five steps to creative problem solving. Plus other tips, research, & publications for nonprofits.

Unsolicited manuscripts and letters to the editor are welcomed. They should be addressed to: Jill Muehrcke, Editor, Nonprofit World, P.O. Box 44173, Madison, WI 53744-4173 or muehrcke@charter.net.

april / may / june 2016 nonprofitworld.org | 1

editor’s page

Better than Team-Building

P

eter Drucker had it right: “So much of what we call management consists of making it difficult for people to work.” It’s as true today as when he said it decades ago.

The good news is that when you make it simpler for people to work, you make it easier on yourself, too. You stop worrying, controlling, and trying to fix things. You stop blaming people and noticing all the things they do wrong.

Instead, you zero in on people’s good points, encourage them to use those strengths, then watch them flourish.

Real power in leadership comes from partnering, not criticizing, as the authors of The Hands-Off Manager: How to Mentor People and Allow Them to Be Successful point out.

Your job as manager is to understand people, see more in them than they see, and invite them into that vision.

Hands-off managers get results from an engaged, highly productive team. But they have no need for team-building exercises, because they lead in a culture in which teamwork is effortless (see “The End of Team Building Training” on page 28).

Such a culture revolves around mentoring, coaching, and communicating. It means learning as much as you can about the people you work with, discovering what they love to do, and then matching their talents with the tasks ahead.

Before you can help others do what they love, however, it’s vital to look within yourself. You need to manage your own inner life, become attuned to your intuition, and understand your life’s purpose. You must tap in to the power and wisdom of your subconscious (see “Five Steps to Creative Problem Solving” on page 26).

The better you know yourself, the better you’ll be as a mentor and manager. Knowing yourself is also vital in helping others home in on their own purpose and passion.

Once you’re clear on your personal truths, you can begin to embed them into your organization’s culture, mission, and values. This is one place where language is all-important.

How you communicate your truths matters, as David Casullo emphasizes in Leading the High-Energy Culture.

He recommends looking deep inside yourself to find a personal story that will bring your key values to life for others.

As a leader, you may sometimes forget that people want to get to know you. When you tell stories from your experience, you humanize yourself, connect with others, and get your point across in the most memorable way possible. (Turn to “Tell Me a Story, Please!” on page 27.)

When telling your own narrative or communicating a message, think first about your audience. Who are they? What key questions will they have? Answer those questions first. Don’t neglect the central question they’ll have on their minds (they won’t ask it out loud but you can be sure they’re thinking it): “So what?” In other words, 2 | nonprofitworld.org volume 34 • number 2

“

Cast yourself as a learner, not a hero.

”

what does your message have to do with their lives? Why should they listen? What does it matter?

Certainty belongs to those who haven’t thought very deeply about the issues. The more you know about something, the more there is to know. The greatest leaders aren’t those who always have a ready answer. They’re the ones who continue asking good questions.

Asking questions instead of giving lectures is the essence of the Socrates approach. Socrates believed the best way to teach was to start not with statements but with questions.

Instead of being the expert, he invited others to contribute.

Rather than controlling knowledge, he helped draw out the experiences of others. You’re participating in his wisdom every time you seek solutions through others rather than assuming you have all the answers. (Take a look at “Questions to Change Your Life” on page 27.)

Keep asking questions. Ask them of yourself. Ask them of everyone you meet. Ask people how you can help them. Ask them when they feel happiest and what tasks they enjoy most. Ask them what they find most fulfilling. And never stop asking the question that’s at the heart of building relationships and bringing out the best in your team: “What do you think?”

Jill Muehrcke muehrcke@charter.net

Four Things to Do Next Monday Here are a few concrete things you can do right now to begin transforming your organization.

the quiz on page 17 to rate your organization’s 1. Take trust factor. of a problem you are having, and start 2. Think garnering some innovative solutions with the tips in

“Think Like a Fish,” page 25.

that you’re using the best phone apps for 3. Check promoting your organization (“The Top Five Digital

Tools You should Be Using Right Now,” page 12).

Consider a unique experience you could offer people 4. (start by reading “To Gain Passionate Supporters, Try a Fantasy Camp” on page 14 and “Making Fantasy a Reality” on page 16.

ask the experts

Is a Personalized Letter Always Better?

Is “Dear Friend” ever good enough?

Q

Can you direct me to quantifiable data that proves personalization is more effective than a “Dear Friend” letter?

Whatever you can give me, I will appreciate.

A

I’m sure that vendors of personalized laser-printing or similar services can cite chapter and verse proving just that.

But, in reality, personalization isn’t always more effective than a generic approach.

The key variable, I think, is the cost. Does personalizing add substantially (in proportional terms) to the cost of your appeal?

If so, then don’t personalize the letter unless you expect the target audience to respond generously and at a high rate.

As a result, I rarely use personalization in any sort of prospecting. And I typically omit names of donors of less than $25 from personalized mailings. Those decisions are the result of numerous direct mail tests over the years—tests that establish personalization doesn’t always work better.

Of course, personalization involves a lot more than including the addressee’s name and address in the text of a letter and response device. To be optimally effective, personalization requires using other data from a donor file—such items as the amount of the last gift (or of the highest previous gift), how many years a donor has been in your file, and so forth.

Mentioning such things in a letter provides a compelling case that you’re really writing to an individual, not just a name on a list.

Mal Warwick, Chairman Mal Warwick & Associates, malwarwick.com

Must You Spend a Certain Amount of Your Endowment?

What are the rules for a nonprofit’s endowment funds?

Q

Our 501(c)(3) corporation has an endowment fund. Is there, by law, a requirement that a certain percentage of the interest be spent annually?

A

If your organization is a public charity and not a private foundation, there’s no federal or state tax law requirement to spend a certain percentage of endowment funds every year. If your organization were a private foundation, then you would be required to use or distribute 5% of the value of your net investment assets each year for charitable purposes.

These answers apply whether the fund is a true endowment —that is, given by a donor or donors with a prohibition against spending anything except income—or merely accumulated surpluses and reserves set aside to be treated as endowment by the board.

Don Kramer Nonprofit Issues, nonprofitissues.com

W H AT ’S U P ONLINE ?

To broaden online discussions on nonprofit topics, we’re expanding our Discussion Forum with a ListServe, provided by Yahoo Groups. To join, you can either click on the “Yahoo” button at: http://www.NonprofitWorld.org/social/ (free Yahoo login required) or send a blank e-mail to: NonprofitWorld-subscribe@yahoogroups.com If you have any questions, contact Jason Chmura at jchmura@NonprofitWorld.org

april / may / june 2016 nonprofitworld.org | 3

people & technology

Wow People with Your Digital Material

High-quality digital content is scarce. That’s why you can be a hero by providing it.

By Victoria Flood

E

veryone today is overwhelmed with a surplus of information. They’re hungry for ways to sort what’s useless from what’s meaningful. That’s where you come in. Become a trusted messenger for people, and they’ll become avid supporters.

Content marketing—promoting your mission by offering educational, free, valuable content online—lets you do more with less. According to fundraising software maker Blackbaud, 92% of nonprofit professionals use content marketing to some degree, and they’re producing more content each year.

As digital content marketing becomes a standard practice, there’s a risk that audiences may feel “content fatigue.” It’s important to develop strategies that help your content stand out from the noise.

Consider Part-time Writers

To avoid the expense of hiring a full-time employee who has deep knowledge of a subject, you can reach out to experts who can write on a part-time basis. Many writers will tailor their work to your needs while injecting a valuable external perspective.

Focus on Highly “Sharable” Content

Social sharing increases the reach of your message exponentially. High-quality content has the potential to generate a lot of shares, and visual content—videos and infographics in particular—tends to be shared the most. There are many low-cost tools for creating and distributing visual content. For example, you can use www.infogr.am to make infographics at a fraction of what you’d pay to hire a designer.

Create Online Content that People Can Trust

Share the Right Content with the Right Audience

Use these tactics to develop high-quality content:

Once you’ve created engaging content, it’s critical to tailor your messages to the proper audiences. Here are some useful strategies:

Enlist Guest Contributors

Consider using external sources, such as featured bloggers, luminaries, guest speakers, and notable members, to provide some of your online content. Outside experts bring both credibility and an established audience. Guest contributors extend the reach of your messages and deliver new audiences to your online content. A number of successful nonprofits use this strategy. AARP, for example, frequently invites guests to contribute to its blog and share their advice.

Let Your Staff’s Passion Drive the Content

Using your staff’s commitment to the mission and asking team members for editorial ideas are great ways to generate content.

Ask your staff to contribute to blog posts, white papers, e-books, newsletters, and other communications. They’re a great source of authentic content that will inspire action. And letting your supporters get to know your staff will engage them with your mission and message.

“

Most digital marketing platforms have built-in analytics that help you measure success.

”

4 | nonprofitworld.org volume 34 • number 2

Engage and Advertise with Social Media

Social media offers an inexpensive—and often free—way to disseminate content to large audiences. However, it’s important to have a strategy in place before launching a social media campaign. After evaluating your diverse stakeholder groups’ use of social media, analyze your target audience to determine which platforms suit your goals. For example, individual donors may be best reached through Facebook, while corporate sponsors may be more active on LinkedIn. Instagram is useful if your organization has plenty of visual content, while LinkedIn is better for sharing scholarly publications.

More and more nonprofits are advertising on social media through promoted tweets, Facebook ads, and LinkedIn ads.

Such advertising is an excellent way to both reach target audiences and measure the effectiveness of shared content.

Create an ad around a particular piece of content—a white paper or video, for example—and set a budget. Then measure how many clicks, donations, or shares you receive. Facebook, Twitter, and LinkedIn offer analytics on the type of person who engages with the content, allowing you to see whom you’re reaching and how well your content performs.

Take Advantage of Low-Cost Tools for Nonprofits

A number of software and online applications offer reducedcost content dissemination tools specifically designed for nonprofits. YouTube’s nonprofit program, for example, lets

you collect donations directly from your YouTube channel.

(Take a look at www.youtube.com/nonprofits.) Google Grants offers eligible nonprofits a $10,000-per-month Google AdWords budget. Some e-mail marketing platforms (such as VerticalResponse, www.verticalresponse.com/pricing/ non-profit/application) offer nonprofits a limited number of free e-mail sends per month, and major brands like Constant Contact will discount their products for nonprofits.

Maximize the Impact of Small Teams Keeping digital content central to your marketing strategy is the key to making the biggest impact with minimal resources.

Some pointers: Track ROI Closely

Measuring ROI (return on your investment) using digital marketing platforms is far easier than doing so with traditional marketing methods. Most digital marketing platforms have built-in analytics that help you measure success. For each initiative, you should be tracking: • conversion rate: donations, memberships, registrations, etc., that you can attribute to a marketing communication • engagement rate: number of opens, clicks, and shares • unsubscribe or opt-out rate.

After you’ve measured the ROI of specific campaigns, tailor your future efforts accordingly. Doing so will keep you from focusing limited resources on unsuccessful strategies.

please get in touch...

We would love to hear your response to anything in Nonprofit World, your comments about any aspect of the nonprofit sector, and your concerns about your daily work. Please get in touch in any of the following ways: Drop us a note at: Letters to the Editor, Nonprofit World, P.O. Box 44173, Madison, Wisconsin 53744-4173.

E-mail to: muehrcke@charter.net Please include your name, organization, address, phone number, and e-mail address. If you’d like your comments to appear anonymously, please let us know. We look forward to hearing from you!

Also, we hope you’ll join the discussion on the Nonprofit World Discussion Forum. Just go to www.NonprofitWorld.org, sign in as a member, and click on the Nonprofit Forum link.

Automate Wisely

Marketing automation can save small, overworked teams a great deal of time. Because of advancements in marketing software and cloud-based tools, you can now automate your e-mail and social media campaigns. Customer relationship management (CRM) tools, like Salesforce, Zoho, and Eloqua, require an up-front investment but offer time-saving benefits.

They allow for mass mailings, automated thank-you notes, and user-friendly list management. Additionally, their reporting capabilities provide insights into your target audience—data that would require massive resources if pulled together manually.

Consider Supplementing Staff with Consultants

If your team feels stretched too thin, it may be efficient to look externally for marketing resources. A qualified consultant can ramp up marketing initiatives more quickly than team members who are already working at capacity. Consultants can bring successful practices from other organizations and a fresh perspective.

Victoria Flood (victoria@mckinleyinc.com) is director of business development for McKinley Marketing Partners, which specializes in placing experienced marketing professionals on an interim, contract-to-hire, or permanent basis throughout the Washington, DC, Dallas/Ft. Worth, and New York City/NJ metro areas.

moving? let us know!

Send old AND new address, with mailing label if possible, to:

The Society for Nonprofits P.O. Box 510354 Livonia, MI 48151 The post office WILL NOT forward copies of Nonprofit World. So let us know BEFORE you move so that you won’t miss any issues.

april / may / june 2016 nonprofitworld.org | 5

X+Y=$ fundraising forum

X + Y = $ A Primer on Generational Philanthropy

Did you know that Generations X and Y constitute $38.3 billion a year in charitable contributions?

By Renee C. Herrell

G

enerational philanthropy refers to the way each generation engages in donating their time, treasure, and talent. It’s important to understand how and why each generation donates so that you can approach them through the proper vehicles and forge long-lasting bonds.

Research shows that over half of Baby Boomer and Traditionalist donors first learned about their top charity in their 30s.1 So a strong case can be made for engaging Generations X and Y now to build future relationships.

Generation X Generation X includes 62 million individuals born between 1966 and 1980. They make up 24% of the U.S. population and 32% of the workforce.2 They’re a well-educated group, holding more degrees than their older counterparts. They’re entrepreneurial and known for taking risks.

Gen Xers place great importance on finding a balance between work and home, choosing to “work to live” rather than “live to work.” They tend to be pragmatic, skeptical, self-reliant, informal, diversity-minded, techno-literate, and focused on today.

Over half (58%) make donations; this translates into almost 36 million donors. The average Gen Xer contributes $796 annually. Combined, that’s $28.6 billion per year.

They first learn about their top charities (in priority order) through: • mainstream media • word-of-mouth • mail • peer-to-peer events • work • product purchase.

When asked what they thought the most appropriate form of solicitation from a charity was, they noted (in priority order): • a friend • a letter mailed from the charity • an e-mail from the charity • a message on Facebook from the charity.

Generation Xers tend to give the same amount to their top charity every year, typically for seven years. Their giving is 6 | nonprofitworld.org volume 34 • number 2

influenced by their friends and family and often based on stories that move them.

Gen Xers have a tendency to be more loyal to a particular area of interest (such as animal welfare or the environment) than to a particular organization. Of all the generations, they donate the most through Web sites.

Generation Y Generation Y is made up of those born from 1981 to the present, with a U.S. population of 83 million. Also known as the millennials, they’re the fastest growing population in the U.S. workforce. With 40 million workers, they constitute 25% of all workers.2 They’re digital natives and fully immersed in the online world.

They’re confident, comfortably self-reliant, entrepreneurial, success driven, inclusive, and environmentally minded.

It’s a generation of strong-willed, passionate, and optimistic youth. They have great expectations and are known for expecting (and demanding) to get what they want.

Gen Yers are more ethnically and racially diverse than other generations. They’re less religious, less likely to have served in the military, and are on track to become the most educated generation in American history.3 Over half of this generation (56%) are donors. The average Gen Y donor contributes $341 annually for a total generation contribution of $9.7 billion per year. These younger donors plan to increase their charitable contributions to their top charity next year.

They first learn about their top charities through: • mainstream media • word-of-mouth • school • peer-to-peer events.

Gen Y donors say that the most appropriate way for a charity to ask them for money is via: • a friend The statistics and lists of preferences in this article (unless otherwise noted) come from a survey reported in The New Generation of American Giving: A Study on the Multichannel Preferences & Charitable Habits of Generation Y, Generation X, Baby Boomers & Matures from Convio (convio.com).

1

U.S. Census Bureau and AARP, Leading a Multigenerational Workforce (aarp.org).

2

Pew Research Center, Current Population Survey (CPS) and Millennials: A Portrait of Generation Next (pewresearch.org).

3

• an e-mail from the charity • a message on Facebook from the charity • a text from the charity.

As philanthropists, they value volunteering as well as financial giving. They’re more likely than any other generation to cite the “desire to make the world a better place to live” as a key motivation for their philanthropic giving.

Members of Gen Y respond positively to building a relationship with a nonprofit online. Nonprofits can use low-cost online relationship-building tools like e-mail, Web sites, blogs, Facebook, and Twitter to engage these younger donors. Not surprisingly, direct mail solicitations have little to no impact on Generation Y. Gen Yers donate through a variety of channels: online, in person, through texting, and by check. They’re more likely than other generations to raise funds for their favorite causes and ask for donations from their peers.

Six Ways to Engage Young Donors How do you effectively engage Gen X and Y? Consider these strategies: 1. HOST EVENTS FOR YOUNG PROFESSIONALS.

Events are a popular way to engage young people and educate them about your organization while giving them a chance to socialize with their peers. There are a few easy steps to creating a young professionals’ event: • Choose an evening mid-week to host your event after work hours.

• Select a location. Your organization’s offices are an ideal place to meet if you have the space. Otherwise, choose a cost-effective, up-and-coming, or trendy eating/drinking establishment.

• Create an enticing focus for the event, such as art or music, that will attract a young crowd.

• Charge an entrance fee between $5 and $15.

• Spread the word to Gen X and Yers using social media and other media outlets.

• Provide tasty drinks and food.

• At the event, give attendees an opportunity to make donations and get further involved with your organization.

2. RECRUIT FOR BOARD & COMMITTEE ROLES.

Volunteering is a favorite way for young people to give. They tend to have more time and less money, and they want to get involved in causes beyond just writing a check.

Diversity on boards is highly desired and often hard to obtain.

Did you know that diversity includes age? Recruiting young board members is a great way to add new perspectives to your board.

Consider inviting younger individuals to join a board committee. It’s a first step that will give you a chance to groom them and see how they might serve in a larger capacity in the future.

3. ENGAGE IN MULTICHANNEL COMMUNICATION.

The best way to engage young people is to use a variety of different communication channels, both offline and online.

Use tools such as social media to share stories. Post pictures, and include quotes from people who have been helped by your organization.

4. A SK YOUNG PROFESSIONALS TO ENGAGE THEIR PEERS.

Young people like to raise funds for their causes and promote their favorite charities online. Provide these young fundraisers with tips and tools for raising money, sample solicitation letters, thank-you letters, individual online fundraising pages, and one-on-one training in fundraising.

Let them lead the process as much as possible and be ambassadors for your organization. Your investment in their efforts will pay off in the long run.

5. OFFER TIERED MEMBERSHIP STRUCTURES.

Provide a membership rate that’s affordable to Gen X and Y, such as $25 or $35 a year. Furnish the same benefits as they would receive at higher-level memberships.

The idea behind membership is to encourage people to have contact with your organization on a regular basis. Generation X and Y will do so if you attract them with affordable memberships.

6. PROVIDE PHILANTHROPIC RESOURCES AND TRAININGS.

Host trainings for your up-and-coming philanthropists to provide them with resources and information to help them enter this new role. Many young people are eager to learn how to become philanthropic.

The training can be similar in style to hosting a planned giving luncheon or tea for your older donors. Provide participants with information such as developing a personal giving plan and researching causes that need help.

Ask your older donors if they have children or grandchildren who would like to learn more about philanthropy. Reaching out in this way will develop lifelong family giving to your organization and a continued investment across generations.

Renee Herrell, M.A., CFRE (rherrell@therightdirection. com) has been a consultant with RCH Consulting since 2004.

This article is adapted from her white paper produced by the Compass Group (www.therightdirection.com/insight/whitepaper-archive.aspx).

Don’t miss upcoming articles on how to talk to your board about fundraising, a questioning approach that will get donors to give, the best ways to seek (and not seek) corporate support, and how to get ready for the big generational shift that will transform everything in the coming years.

april / may / june 2016 nonprofitworld.org | 7

clear as a bell

What the Heck Are You Trying to Say?

NE DEPART W MENT!

Why are nonprofits so bad at delivering messages?

What’s the remedy?

By Max T. Russell

O

ne of the most obvious problems in nonprofit organizations is cloudy messaging. I’m going to give you some concrete tips on fixing that. I’ve been evaluating nonprofit messages during the past 16 months and have found only four cases in which the messages were delivered clearly and properly. (I know I haven’t see everyone’s messages, but I’ve seen many.)

So, what’s the problem? Why are nonprofits so bad at composing messages to supporters, volunteers, and partners? Well, most businesses are just as bad at marketing. In fact, most businesses don’t really market. They may run ads, but that’s not necessarily marketing. I’m talking about predisposing people to buy or buy into what you’re “selling.”

Let’s start with deciding what the heck you’re trying to say.

When my kids were in elementary school, struggling with writing a good paragraph, I would ask them to tell me what they wanted to say — in one sentence. No fancy language. Nothing for the teacher. Just raw thoughts. “What do you want to say?”

Then out came the words. “I want to say that I like going to the park on Saturdays because my friends are there and we get to stay for a long time.”

“OK,” I would say, “write that.” And they would, and the rest of the writing would follow in clear fashion. Nothing super classy. No world record being set. But it was basically perfect and pleased the teacher.

Few nonprofits do that. In an effort to say something meaningful, they get lost in momentous verbiage and too many concepts. I have to dig two thirds of the way down into the letter, the e-mail, or whatever to isolate their intended point.

Nobody needs a fancy message from you. People need to know why the heck you want them to read or watch or donate, and they need to know it NOW.

“

“

Does each sentence pull the reader into the next one?

”

Establish a reputation for getting to the point fast. Headlines go a long way toward this: “Measles No More: All Local Neighborhoods Declared Clean.”

Or a headline can tease the reader into the story by revealing part of the main idea: “They Said Measles Couldn’t Be Stopped.

They Underestimated Your Determination.”

Neither of these headlines, which are possibilities among millions, is creative. You merely have to ask yourself what you’re trying to say and then say it. Then briefly edit your words and get away from them for an hour or maybe a day, and check them again.

Answer these questions: Is your main idea up front where the reader can judge the value of reading further? Does the headline or subject line compel the reader into the opening sentence? If you’re telling a story about the measles outbreak that terrified parents and schools, does each sentence pull the reader into the next one? If so, that’s perfect, because each next sentence rewards the reader, until the whole point has unfolded in a delightful — or at least interesting — fashion.

Before you send out a message, ask people you trust to look it over and tell you whether you’re being clear. In the next issue, I’ll give you more tips for being clear from the start.

Max T. Russell (maxt@maxtrussell.com) is owner of Max and Max Communications.

He improves marketing messages for alternative medicine, lawyers, nonprofits, and business intelligence.

In only four cases were messages delivered clearly.

”

advertisers’ index Affinity Nonprofits........................Inside Back Cover Blue Ridge Leaders........................................... page 9 8 | nonprofitworld.org volume 34 • number 2

DonorPerfect............................................. Back Cover LearnIng Institute...........................................page 19 UST.................................................Inside Front Cover

enriching commun ity Service LeaderS In a Unique Conference Experience

Are you looking for a completely different leadership development experience that combines...

nationally recognized speakers, informal professional relationship building, fun & renewal?

July 24 – 29, 2016 Fall creek Falls State Park, tn

Learn more & aPPLy • www.bLueridgeLeaderS.org

volunteer vectors

Volunteer Screening: Changing Trends in Changing Times Are your screening practices in line with other organizations? A new survey provides an in-depth view.

By Katie Zwetzig

D

o you ever wonder how your organization stacks up when it comes to engaging and screening volunteers?

Because trends around volunteerism constantly change, Verified Volunteers conducted a primary research study, surveying hundreds of nonprofit organizations throughout the country to gather their insights when it comes to their volunteers and how they’re screening them. The resulting report reveals several key trends that could influence the way you recruit and retain your volunteers. Here’s what the researchers found.

Who Volunteers, Why, & How Often?

The volunteer pool in the United States is divided almost evenly among three age groups: 35-54 year olds (33%), 18-34 year olds (28%), and those 55 and older (34%). Volunteers under 35 are most interested in volunteer roles that leverage the skills they’ve learned in school or in their jobs, so you may find more success if you offer “professional” volunteer opportunities to them. Other age groups are less interested in using specific skills and more willing to volunteer in whatever way the community needs.

According to the survey respondents, 61% of their volunteers return frequently to assist the same organization. These frequent volunteers contribute an average of 29 hours per month, and 2.5% dedicate more than 40 hours per month. These are positive statistics that have a lot to do with the sample of survey respondents. Most of the surveyed organizations rely heavily on volunteers to help them fulfill their missions—not all nonprofit organizations do. Because they follow such a volunteer-driven model, these organizations have likely defined very clear volunteer roles and created systems to maintain that level of intensity—from recruiting, to placement, to ongoing training. What does this mean? Survey respondents may be benefitting from a higher proportion of frequent volunteers than the majority of volunteer organizations in the country.

Indeed, many nonprofits report that more and more people are unable to make a high level of commitment to a cause. It’s more

“

A third of organizations have never heard of nationwide database searches.

”

10 | nonprofitworld.org volume 34 • number 2

important than ever for nonprofits to be creative in finding ways to engage busy people and flexible in accommodating their schedules.

Screening Is Imperative.

Screening is no longer a “nice to have”; it’s the norm among volunteer organizations. The top reasons volunteer organizations screen their volunteers are consistent: 88% want to ensure a safe and secure environment; 85% want to protect their constituents and vulnerable populations; 78% want to safeguard the organization’s reputation.

Not too long ago, it was primarily the mentoring sector, or those working with vulnerable populations, who thought they needed to screen. Now, 57.4% of organizations conduct background checks on all volunteers before bringing them on board.

On the flip side, 42% of organizations are still screening just some volunteers, which is a mammoth risk. When you don’t screen all volunteers, you’re risking your assets and reputation as well as your people and their safety. You can become the victim of fraud or theft, find yourself on the wrong side of a lawsuit, or see your ability to raise funds and qualify for grants dwindle. Organizations that continue to screen only a portion of their volunteers should reconsider their policies and think through what they’re risking if they don’t put a more comprehensive screening program in place.

Consider Outsourcing.

Nearly 7 in 10 organizations outsource screening to third-party providers who are experts on hiring and screening and can process background checks more quickly and with a greater level of accuracy than volunteer managers can do in-house.

Using in-house resources or going directly to a government source can leave organizations on the hook for lawsuits should they fail to follow one of the many changing regulations and laws around screening. Plus, if volunteer managers are running the checks themselves, they likely aren’t getting the most comprehensive, robust, and up-to-date screen possible.

Multiple Checks Are Now the Rule.

Most organizations now realize that no single screen or search is complete. Each one—conducted alone—has many gaps.

This is true of even the FBI’s National Crime Information Center. A truly comprehensive check must consist of several

“

When you don’t screen all volunteers, you take a mammoth risk.

”

searches layered on top of one another in order to fill as many of the gaps as possible.

Based on this research study, each organization now uses four different types of background checks. Nine in 10 organizations conduct criminal record checks; 86% use a sex offender search; and over half use an identity verification check.

There are Still Misperceptions.

There is still confusion about some aspects of screening.

Nationwide or multistate databases arguably cause the most bewilderment. A third of organizations have never heard of nationwide database searches. But, because the name sounds so inclusive, most agree that they must be accurate, up-to-date, and thorough.

Unfortunately, perception doesn’t always match reality. There are many instant nationwide and multistate database searches available, but none of them can provide a comprehensive criminal record check. Nationwide database searches are valuable when used as one component of a criminal record check as they can help identify crimes that occur outside of the volunteer’s residential jurisdiction, but all hits found as part of a nationwide or multistate database search must be validated at the primary source of information (the county or state courthouse).

Fingerprinting, as a comprehensive screening tool, is also widely misunderstood. Contrary to popular belief, fingerprinting isn’t the most reliable criminal record check.

Fingerprint checks rely on a contributory database, which may be outdated and unreliable.

So who should be fingerprinted? If it’s required in a given state or by another governing body, an organization must fingerprint.

If it’s not required, it’s best to use a more reliable name-based check. Fingerprinting is expensive, time consuming, and doesn’t leave you with a complete or accurate picture.

Top Trends The survey asked respondents their plans for their screening programs. Their top four intentions are: • Screen more volunteers.

• Improve integration between screening and other tools.

• Perf orm rescreening.

• Add new searches.

These are encouraging trends that will lead to safer, more progressive volunteer programs across the country.

Katie Zwetzig is executive director of Verified Volunteers (www.verifiedvolunteers.com, info@verifiedvolunteers. com), which produced the “Verified Volunteers Volunteer Screening Trends & Best Practices Report” (http://info. sterlingbackcheck.com/ReportPR), including responses from 352 nonprofit professionals.

Reduce the Risks of Involving Volunteers For more on creating a dynamic volunteer program while keeping everyone safe and avoiding lawsuits, see these articles at www.NonprofitWorld.org/members: Volunteer Protection Act: What Does It Mean for You? (Vol. 16, No. 2) Common-Sense Answers about Volunteer Involvement (Vol. 34, No. 1) New Trends in Volunteering – and How to Tap into Them (Vol. 30, No. 2) What Is the Board’s Role in Managing Risk? (Vol. 15, No. 5) Foreseeable Harm (Vol. 20, No. 3) Volunteers: Resource or Risk?(Vol. 15, No. 5) Setting the Stage for an Abuse-Free Organization (Vol. 30, No. 6)

april / may / june 2016 nonprofitworld.org | 11

5

apps for nonprofits

The Top Five Digital Tools You Should Be Using Right Now

If you aren’t using these apps, consider trying them.

By Dan Streeter & Tim Brown

L

ook at your phone. No, I’m serious. . . look at it. Count the number of apps you have. Now, count the number of apps that you use to promote your organization and build its success. Be sure to include apps that help you to communicate with your organization’s stakeholders and promote your brand.

With over three million apps to choose from, you know there are more that could help you, but it’s hard to know which ones to choose. So, here’s a two-step rule to determine if an appropriate app is worth the time to download and learn: Step 1: Does it fit your overall plan for development?

Step 2: What’s the return on time invested (ROTI)?

Let’s take a look at Step 1 more closely: What’s the one area in which you plan to grow?

• Expand your network more rapidly.

• Be more organized through digital notes.

• Exhibit your sense of urgency with prospects.

• Communicate with clients more effectively.

• Demonstrate your expertise and build your brand.

Now, pursue one or more of the following apps that will help you accomplish your plan. These apps are all free.

App 1: LinkedIn

Personal Goal: Expand your network Time to download and learn: 20 minutes ROTI: two hours per week + greater opportunities Why you should be using it: With nearly 400 million users across the world, LinkedIn represents the largest business network on the planet. Having immediate ability to search, refer, request, and research a potential client, customer, or employee from the palm of your hand is absolutely vital.

App 2: Evernote

Personal Goal: Be more organized through digital notes Time to download, learn, and connect devices: one hour ROTI: two hours per week + team sharing + never losing another note again Why you should be using it: In terms of keeping digital notes, you’ll likely choose between two primary products: Evernote or Microsoft’s OneNote. Both work well for digital note taking, sharing notes with others, and transferring the notes between devices, but Evernote has one feature that makes it our primary choice—Scannable (see App 3).

App 3: Scannable

Personal Plan: Act with a stronger sense of urgency with prospects 12 | nonprofitworld.org volume 34 • number 2

Time to download and learn: one hour ROTI: two to four hours per week Why you should be using it: What makes Evernote first in class is its partner app: Scannable. Scannable, when combined with LinkedIn and Evernote, allows you to scan a business card, saves the contact in your phone, and then, sends a beautifully designed e-mail to your newest contact. Just think, you never have to go back to the office to scan a card and send a LinkedIn request again. Incredible!

App 4: Skype

Personal Plan: Communicate with stakeholders more effectively Time to download and learn: one hour ROTI: Increase opportunity by 10-15% Why you should be using it: The age of video chat is here, and in the business community, it’s not only acceptable; it’s preferred. In lieu of a face-to-face meeting, Skype is the next best thing. Your prospects want to see you, and you definitely need to see them. There’s no substitute for seeing the body language of a potential donor, employee, or board member. Skype instantly increases your tech-savvy rating with prospects.

App 5: LinkedIn Pulse and Slideshare

Personal Plan: Demonstrate your expertise and build your brand Time to download and learn: three hours ROTI: Increase opportunity by 20-30% Why you should be using it: This is the year of the content creator, and you are that creator. Even front line employees are now expected to show expertise by publishing their own expert-driven content. There’s no better way to demonstrate that expertise than by posting articles through LinkedIn’s Pulse and PowerPoint style presentations using LinkedIn’s Slideshare. With every post and Slideshare you share, you become known as not only a content creator but an expert in your field. That content is almost guaranteed to propel your career forward.

Dan Streeter is the principal of Impart Learning Solutions (impart-edu.com), which develops and delivers learning experiences for youth, teachers, and organizations. As the founder of Three Creative, Tim Brown has set his sights on positively impacting the lives of millions of people across the world through his books and leadership programs. Dan and Tim are the authors of Old School with New Tools, oldschoolwithnewtools.com.

the board room

Emeritus Board Members: The How, the Why, the Art

When should you give the “emeritus” title to a board member?

By Carol Weisman Time for a quiz. “Emeritus” means: a way to get “dead wood” out the door without creating

an enormous stink

a way to honor a founder who no longer can or wants to be involved in the organization he or she created a way to keep big-money people giving without having

to listen to their opinions

retired or honorably discharged from active professional duty, but retaining the title of one’s office or position.

Because I had a crush on my high school Latin teacher and didn’t pay attention, I had to look up the definition, which is fourth in the list above. However, for our purposes, both definitions two and four apply.

When Should You Give a Board Member the Emeritus Title?

Here are some of the things to consider when making this decision: • Would your organization be what it is today without this

person?

• Has this individual created a legacy that will last for years

or even decades?

• Is this someone whose contribution is so great that you

hope others will aspire to meet the standard created?

As you can see, conferring the honor of “emeritus board member” should be a rare event. You shouldn’t do it casually.

But when you do decide that someone deserves emeritus status, it’s a major opportunity for creating buzz. Make the most of it!

• Videotape the thoughts of the board member who’s being

honored.

• Hold a big party that also serves as a fundraising, cultivation, or stewardship event. Be sure to invite your

newly inducted emeritus member’s family. If you have to pay a few hundred dollars to bring the board member’s children into town, make it happen. Invite the board member’s colleagues, friends, and significant people such as a pastor or rabbi, and other community leaders the board member has influenced—or been influenced by.

• The acid test: This is a “go big or go home” situation. If

no one cares enough to really go all out for this person, you should probably find another kind of board purgatory for your member than this exalted position.

How Should Your Bylaws Read?

Here is a formal description of the emeritus status from Michael Rea, Director of Development & Community Relations for Rainbow Village in St. Louis. You can use similar verbiage in your own bylaws: Definition: There shall be a category of board member known as a board member emeritus who is nominated and elected by the board of directors. Board members emeritus shall be selected from those board members who have served on the board of directors with distinction and excellence.

A board member emeritus shall be entitled to receive all written notices and information which are provided to the board of directors, to attend all board meetings, to participate in meetings of the committees in which they serve, and encouraged to attend all other events conducted by the organization. A board member emeritus shall not be subject to any attendance policy counted in determining if a quorum is present at a meeting, entitled to hold office, or entitled to vote at any board meeting.

Eligibility: In order to be considered for designation as a

board member emeritus, a person must be a current or former member of the organization’s board of directors who has: • served the organization’s board of directors with distinction • held an important leadership role and made significant contributions • engaged in major volunteer or advocacy activities in his or her service on the board • completed the term(s) for which he or she was appointed • Participated in one or more of the organization’s activities (e.g., events, volunteerism, fundraising, government relations, networking, etc.)

Election: Annually, with the recommendation of the board

nominating committee, the executive committee of the board will consider potential candidates and may nominate one or more individuals for a board emeritus position. The executive committee will present the nomination(s) along with supporting statements to the organization’s board of directors for its consideration. A simple majority vote of directors at a meeting at which a quorum is present is sufficient to approve an appointment.

Carol Weisman is founder and president of Board Builders (boardbuilders.com) as well as an internationally known speaker, author, trainer, and consultant. See her Learning Institute program (Board Governance) online at NonprofitWorld.org/LearningInstitute.

april / may / june 2016 nonprofitworld.org | 13

To Gain

Passionate Supporters,

Try a Fantasy Camp

F

People want to experience your organization’s inner workings. Immerse them!

By Mark Mitchell & Emily Barrow

antasy camps are a powerful way for fans to connect with their favorite teams, coaches, athletes, and culture.

Think about how you’d like to connect your core supporters to your organization, facilities, and people.

Let’s highlight the practices of some of your peers in the nonprofit sector who are doing so successfully.

Make the Connection CONNECT THEM WITH YOUR PEOPLE.

A key component of fantasy camps is the opportunity to meet one-on-one with people on the “team.” Keeping participant numbers low creates a “private club” feel where members are privy to the exclusive experience, knowledge, or networking opportunities provided by the camp. Some illustrations from the nonprofit world: Visitors to aquariums marvel at the trainers who interact

with sea creatures. A number of aquariums allow visitors to immerse themselves in the life of these professionals. For instance: • The National Aquarium (Baltimore, Maryland, aqua.org) offers “Sleepover with the Sharks” where participants work with staff behind the scenes (and after hours) to prepare and feed the sharks. Imagine guests walking the “cat walk” just inches above the water in the shark tank!

• The Aquarium of the Pacific (Long Beach, California, aquariumofpacific.org) invites guests into the “kitchen” to prepare food for the aquarium inhabitants.

In each case, participants experience the allure of working directly with the animals while feeling the excitement of the trainers themselves.

Professional associations have a unique chance to help

people learn special skills alongside experts. Through the 14 | nonprofitworld.org volume 34 • number 2

Society of Architectural Historians (sah.org), for example, fantasy campers spend time in Frank Lloyd Wright’s home and studio in Oak Park, Illinois, where they design floor plans for their dream houses.

Many people participated in the performing arts as they

were growing up. Now, later in life, many are interested in (and willing to pay for) a fantasy experience. Consider the Buffalo Philharmonic Orchestra Fantasy Camp (bpo.org), which gives amateur musicians the chance to rehearse and perform with professionals.

How can you help your supporters connect with your PEOPLE? Think about your staff. Do you have professionals who do specialized work that you could highlight in a fantasy camp experience?

CONNECT THEM WITH YOUR FACILITIES.

Behind-the-scenes tours provide a great upselling opportunity for museums, theaters, zoos, and other venues. Have you looked around your facility to see if you could use the venue itself more fully for fundraising and unique guest experiences?

Sleepovers hosted by museums have been available for some

time. At the “Snoozeum Experience” at the Museum of Science and Industry (Chicago, msichicago.org), overnight campers

complete a scavenger hunt and sleep nose-to-nose with a 727, next to a giant heart, or steps away from a toy-making factory.

The American Museum of Natural History (New York,

N.Y., amnh.org) has developed a Halloween-themed sleepover experience. Guests are encouraged to come as their best Museum-inspired characters or creatures.

The Carnegie Science Center (Pittsburgh, Pennsylvania,

carnegiesciencecenter.org) illuminates its facility in black light to change the visual experience for its guests during sleepovers. It also hosts a Christmas-themed Polar Express overnight experience for children.

Ever wonder what it was like to man a Titan Missile

during the Cold War? The Titan Missile Museum (Sahuarita, Arkansas, titanmissilemuseum.org) provides campers the opportunity to sleep underground just a few feet from the largest missiles ever made. Baby boomers, coming of age in the Cold War, are particularly drawn to this immersion experience.

Who hasn’t dreamed of sleeping with the animals? The

Bronx Zoo (New York, N.Y., bronxzoo.com) offers overnight safaris and the promise of slumbering with lions, tigers, bears, and other animals.

Public tours of organizational facilities are becoming

more common as supporters relish the chance to see the inner workings of these venues. A number of places have museums that tie the venue’s history with a tour of the operation. For example, visitors to Churchill Downs in Louisville, Kentucky, can enjoy the Kentucky Derby Museum in addition to their tour of the racing facility.

How can you help people connect with your FACILITIES? Think about your facilities. Are you using the space to its fullest potential as a fantasy camp venue or destination?

Building and grounds Building contents Building ambiance Non-public areas for exclusive experiences Seasonal celebrations Themed events CONNECT THEM WITH YOUR MYSTIQUE.

Bring your supporters up close to what’s unique about your organization. Not only will they be eager to pay for the privilege, but getting to know your organization from the inside out will dramatically increase their passion for your cause.

The Chesapeake and Ohio Canal National Historic Parks

(Maryland, West Virginia, District of Columbia, nps.gov/choh) offer a program called Canal Quarters. Participants live as canal workers did during the canal’s construction during the Civil War. The Civil War Adventure Camp (Petersburg, Virginia,

civilwaradventurecamp.org) allows campers to live as soldiers did during that period of American history.

Guests can sleep overnight aboard the USS Silversides submarine in Muskegon, Michigan (silversidesmuseum.org)

or the aircraft carrier USS Yorktown (Patriot’s Point Naval & Maritime Museum, Charleston Harbor, South Carolina, patriotspoint.org). Every year, over 40,000 children participate in overnight camping programs aboard the Yorktown. Here’s how that experience is described on the Web site: “Pack your gear! For more than 25 years, the Youth Overnight Camping Program on board the USS Yorktown has been one of the nation’s top education adventures. Youngsters arrive and experience the majesty of the USS Yorktown, sleep in the berthing areas where the sailors once slept, learn about naval and aviation history. Each camping package includes self-guided tours, meals and entertainment, plus an on-site educational program.”

Youth from school groups, scout troops, church groups, and others pay $72 (for one night) and $92 (for two nights) for this immersion in military and naval history. Over 500,000 children have participated in the overnight programs.

The National World War II Museum (New Orleans,

Louisiana, nationalww2museum.org) delivers science camps with a focus on the scientific discoveries of the World War II era and the broader contribution to society.

People are curious. These organizations have found a way to satisfy that curiosity and create greater bonds with their supporters.

How can you help people connect with your MYSTIQUE? Think about your unique elements. Are you fully utilizing them in a fantasy destination?

Unique environment Rarely seen happenings Throw-backs to bygone eras april / may / june 2016 nonprofitworld.org | 15

Assimilate Future Trends Here are some trends in sports fantasy camps that can easily be applied to the nonprofit sector: More single-day programs. Single-day programs are ideal for

nonprofit organizations. They provide a lower-cost alternative which may aid your organization’s entry into this area. More immersive (and more expensive) programs can be added later if your fantasy camps prove successful.

A growing number of immersive experiences. Your loyal

supporters want to get to know your organization on a truly deep level. As a result, they’ll be receptive to opportunities to participate in experiences more than once or twice a year. Offer experiences as deep and frequent as possible while limiting intrusions into the routine of your people (and factoring in safety concerns).

More camps for parents. You may be able to connect a parent

to a child’s passion. Much as lacrosse camps teach parents about a game their children play, band fantasy camps (for example) may help a parent better understand their children’s experiences as band members. In a similar trend, nonprofits are providing bonding experiences for fathers and sons, mothers and daughters, and other family combinations. Imagine giving parents and their kids chances to connect while immersing themselves in your organization’s work. Surely you’d create fans for life.

Maximize Tie-in’s with Existing Programs Many sports fantasy camps offered by universities include a fundraising component. The beneficiary can be a specific cause chosen by the coach or administrator. For instance, Coach Dabo Swinney of Clemson University runs a Ladies Clinic each year with a portion of the entry fee ($15 of the $60) donated to breast cancer research.

So, we recommend that you explore all possibilities with area sports teams (professional, college, and high school) about your organization becoming the beneficiary of their efforts. We recommend this as a complementary (and more quickly organized) part of introducing fantasy camps into your program offerings.

Finding a mission connection may open some easy doors for you. A coach may have a parent or child who has experienced a challenge that will lead to an obvious tie-in with, say, the March of Dimes, the American Cancer Society, or other nonprofit organization.

“

Parents are happy to pay for bonding experiences with their kids.

”

16 | nonprofitworld.org volume 34 • number 2

“

Keeping participant numbers low creates a “private club” feel.

Leverage Your Uniqueness

”

We’re watching sports teams develop fantasy camps to better connect with their most loyal supporters. They’re using their people, facilities, identification with the organization, and opportunities for their biggest fans to absorb themselves in a fantasy experience. You can do the very same thing with your organization.

You have people with talents not possessed by the broader public. Let’s follow the lead of the Wizard of Oz and “pull the curtain back” to more fully let folks see what you do. Let’s leverage the uniqueness of your facilities to allow people to see things they’ve never seen.

The fantasy camp experience will ensure people’s connection to your mission and deepen their commitment of time, talents, and treasure to your organization. It will expand word-ofmouth communications as they share the uniqueness of their experience with others. Let’s go for it. Let’s make fantasy a reality!

Mark Mitchell, DBA (mmitchel@coastal.edu) is professor and chair of the Department of Marketing and Resort Tourism in the Wall College of Business at Coastal Carolina University. Emily Barrow (etbarrow@coastal.edu) is an M.B.A. candidate in the Wall College of Business. Both have worked with a variety of nonprofit organizations.

Making Fantasy a Reality For more ways to raise funds and deepen relationships with supporters through unique experiences, see these articles at www.NonprofitWorld.org/members: Show Off a Little: New Approach Forges Bonds (Vol. 26, No. 4) Five Simple Ideas for Developing Fundraising Results (Vol. 29, No. 3) Deeper Donor Relationships = Increased Contributions (Vol. 26, No. 4) 33 Top Tips for Building Donor Bonds (Vol. 26, No. 1) How to Turn Memory into Support (Vol. 31, No. 4) Three Good Things: Creating Miracles in Fund Development (Vol. 29, No. 1) Also see Learning Institute programs on-line: Resource Development and O for Opportunity: Exploring New Revenue Opportunities for Nonprofits (NonprofitWorld. org/LearningInstitute).

TRUST

The Ultimate Value How trustworthy is your organization? Rate yourself.

By Stephen C. Rafe

H

ave you ever wondered what values might be most important to your organization’s success? Whether you consider this question from the inside out or the outside in, the answer is the same. It all comes down to trust.

And trust in its many forms is a common theme among authors who have devoted careers to the study of organizations’ success.

“

Trust in its many forms is a common theme among authors.

What Leading Authors Say George Z. Laborde, author of Influencing with Integrity, says that “building a sense of faith or trust in the other party is the most important part of any interaction.”

Given that trust and credibility go hand in hand, Jay A. Conger, author of Learning to Lead, reminds us: “Followers expect credibility from their leaders, and that credibility is based on trustworthiness” along with expertise and dynamism.

In his book Lincoln on Leadership, author Donald T. Phillips puts it this way: “Trust, honesty, and integrity are exceedingly important qualities because they so strongly affect followers.”

He adds, “Leaders who are genuine and sincere in their conversations . . . generate support and honesty in return.”

Where Do You Stand?

So what is your organization’s trust factor? Consider the question from the following five perspectives. On a scale of one to ten, with one being the lowest and ten being the highest, rate your organization: 1. I would rate my organization’s trust factor (from 1-10) as ____.

2. My co-workers would rate our organization’s trust factor (from 1-10) as ___.

”

Stephen C. Rafe (stephen@rapportcommunications. net) is president of Rapport Communications (rapportcommunications.net), a consulting and coaching firm specializing in behavior-based communication (written and spoken), which he founded in 1986. Author of three HarperBusiness books on presentations and interviews, he has held executive positions in the nonprofit sector.

Gathering Trust A leader’s number-one responsibility is to create an environment of trust for all stakeholders. That journey toward trust begins with yourself. Use these resources (available at www.NonprofitWorld.org/members) to build a solid foundation of trust: Earn People’s Loyalty: Here’s How (Vol. 17, No. 5) Secrets of the Charismatic Leader (Vol. 22, No. 4) How to Build a Framework for Strategic Alliances: A Framework of Trust (Vol. 26, No. 6) Helping Donors Choose Your Organization: Image Theory (Vol. 28, No. 2)

3. Our vendors and suppliers would rate my organization (from 1-10) as ____.

Find Your Truths and Release Your Powerful Energy (Vol. 31, No. 3)

4. Our customers would rate my organization (from 1-10) as ____.

What Can We Learn from Three Accomplished Leaders? (Vol. 30, No. 2)

5. Our supporters and donors would rate my organization (from 1-10) as ____.

The Main Ingredient (Vol. 29, No. 6)

A rating of four or less for any of these constituencies suggests serious problems and should be discussed openly with the organization’s leadership.

How Do You Come Across to Others? (Vol. 23, No. 3)

“

What is your organization’s trust factor?

”

Reducing Donor Fatigue Syndrome (Vol. 23, No. 2) Five Secrets Every Leader Should Know (Vol. 23, No. 3) Organizational Culture: It’s in the Walk, Not Just the Talk (Vol. 29, No. 6) Creating a Values-Based Road Map (Vol. 23, No. 2)

april / may / june 2016 nonprofitworld.org | 17

Diving Into the Hispanic Donor Pool Tips for Gaining and Keeping Hispanic Donors

By Randall Anderson

A

s the U.S. population grows, the country’s population diversifies and so should your outreach. Developing campaigns geared toward diverse groups will expand revenue without breaking the bank. One group driving the need for change is the Hispanic population. This group makes up approximately 17% of the U.S. population and the number continues to grow.

By 2022, Hispanic youth will account for 62% of teens in the U.S. They consume media in both English and Spanish and are able to pass along the information to their parents and other family members. As Hispanic youth grow into adulthood, so will their familiarity with your organization.

Here are some ways to tailor your fundraising efforts to the growing Hispanic market: Craft unique messages. To be successful, you can’t use the

same messages with Hispanic prospects as you use with your other donors. Instead, get to know the Hispanic culture so that you can communicate directly to the Hispanic audience.

U.S. Hispanics connect strongly with organizations that don’t simply put them in the “check here” box. Messages must be culturally relevant and appeal to Hispanics on an emotional level.

Use their language. Communicate in Spanish, using words

and phrases that resonate with Spanish speakers. Be sure the messages on your Web site are in Spanish as well as English.

Choose your words with care. If you’re communicating

to a national audience, use neutral terminology rather than referring to your audience as “Hispanics” or “Latinos.” The term “Hispanic,” used mainly on the west coast, refers to all Spanish-speaking individuals. “Latino,” frequently used on the east coast, refers to people who originate from Latin America. If you’re planning to geo-target, be aware of the specific meanings of these terms.

18 | nonprofitworld.org volume 34 • number 2

Integrate testimonials from other Hispanic donors. This

tactic is especially effective when you communicate an urgent need for help.

Test your Hispanic outreach during a culturally relevant time of year. Holidays such as Dia de Los Muertos, Hispanic

Heritage Month, and Mexico’s Independence Day (it is not Cinco de Mayo) are excellent opportunities to use components of Hispanic culture to build a strong campaign.

Connect through TV spots. Television is an excellent way

to reach Hispanics, as emotional connections have a very strong effect through TV. The TV message should be simple and include a call-to-action so that prospective donors can call in to make a donation or visit the Web site to learn more.

Consider focusing on top Hispanic markets such as Los Angeles, New York, Miami, Houston, and Chicago. With a long-form TV spot, you can explain your cause, share stories about who is benefitting from your work, and explain how viewers can continue to help others. Short-form commercials can also be effective if they present a concise message with a clear call-to-action.

Incorporate a mobile-response Web site and a presence on social media. Hispanics are the largest group in the U.S.

streaming content on the Web and using mobile devices. Over 60% of U.S. Hispanic millennials are online; compared to the general population they’re more likely to download content from the Internet. Platforms like Facebook, Instagram, and Twitter are highly popular within the U.S. Hispanic market.

Provide Hispanic prospects with plenty of online content, using relevant hashtags and video. Make it easy for them to donate via tablets and cell phones.

Create a positive experience at every touch point, including all phone interactions. For example, when

Spanish-speaking donors call in, the people answering the

phones should be able to articulate your core messaging to the callers. In addition, ensuring the call is answered in a timely manner by someone with a welcoming voice will make a lasting impression on the caller. Remember, to the caller the phone answerer is your organization.

Enlist the help of qualified partners who understand the

Hispanic demographic, such as an experienced Web designer or a Spanish-language call center.

Tap into the passion for connection. Family and community

are vitally important to the Hispanic population. They love to tell friends and relatives about organizations they admire.

Harness that enthusiasm with social media and other modes of connection. Peer-to-peer fundraising campaigns can be especially effective.

Build for the future. Approach your diversification strategy

with a long-term mindset. It may take time to gain the trust of this population, but it’s an investment that will pay off well. Once Hispanics feel like valued stakeholders, they’ll stick with you. They tend to view philanthropy as something that’s expected of them, a social responsibility inherent in their traditions and something to pass on to their children and grandchildren. Recognize their needs, and they will be loyal supporters for generations to come.

More Ways to Reach Diverse Donors For more on connecting with a diverse group of donors, see these articles at www.NonprofitWorld.org/ members: Reach New Supporters with Multichannel Tools (Vol. 29, No. 2) How to Engage the Next Generation of Donors Now (Vol. 29, No. 1) The Peer-to-Peer Fundraising Evolution (Vol. 30, No. 6) Hearing Donors’ Third Voice (Vol. 29, No. 3) Fundraising and the Virtual Call Center (Vol. 28, No. 3) How Mobile Marketing Can Work for You (Vol. 32, No. 4) Harnessing the Internet to Raise Funds (Vol. 31. No. 2) Two Surprising Ways to Broaden Your Reach Online (Vol. 32, No. 4)

Randall Anderson is Chief Operating Officer of ListenTrust (listentrust.com), a bilingual contact center for Spanish and English language services. He has extensive call center industry experience in various markets including nonprofits.

Earn A Certificate in Nonprofit Leadership & Management • Learn online at your own pace • Earn 4.8 CEU / 48 CAE credits • Certificate from Michigan State University (Dean’s Office) • Discounted for Society members • The Learning Institute is a program of the Society for Nonprofits

https://www.snpo.org/certificate

april / may / june 2016 nonprofitworld.org | 19

Should Crowdfunding Be Part of Your Toolbox?

This form of raising funds can bestow great benefits – with the right planning.

By Diane Wittenberg

W

hen crowdfunding first hit the scene, it was primarily used to fund small-scale for-profit business ventures.

Since then, its popularity has grown tremendously and it is used for an almost endless array of purposes.

Whether it be fundraising to help pay for an extravagant European honeymoon, cover a friend’s medical bills, raise capital for a product launch, or support a local nonprofit, crowdfunding can be used for almost any personal or professional cause. In fact, one study predicts crowdfunding will be a $90 to $96 billion industry by 2025.

Crowdfunding presents an especially valuable opportunity for nonprofits, allowing them to bolster their fundraising efforts, increase their donor base, and spread awareness about their work. Logistically, it often takes less manpower, money, and time than other forms of donor solicitation.

Every nonprofit leader’s dream is for their crowdfunding campaign to go viral. The ALS Association’s “Ice Bucket Challenge” is one immensely successful campaign that brought a largely underfunded cause into the spotlight. It also brought in an unprecedented amount of cash. According to ALS Association CEO Barbara Newhouse, the 2014 campaign raised $220 million globally. Between the viral videos almost everyone was making and the extensive media coverage, those who didn’t know what ALS was before the challenge certainly do now.

you make the most out of your crowdfunding efforts. Consider these five tips.

1. Be strategic in your planning. It’s tempting to rush into

signing up for a crowdfunding platform and hoping the dollars start rolling in. But to be successful your campaign needs to be carefully managed and planned.

Some crowdfunding Web sites allow you to keep the funds only if you meet your goal, while others let you keep any amount.

Fees are also a big consideration, as is the level of support you’ll receive from your chosen platform. Telling a compelling story about why you’re raising the money and what it will go toward is imperative, as is providing appropriate rewards and recognition for your donors.

For some campaigns, an e-mailed thank you may be sufficient, but for others a tiered award system offering tangible rewards will be more effective. Plan incentives carefully, and be creative so your donors feel appreciated. Outlining how far their money goes (such as “$50 feeds one child for a month”) is also a strong incentive. Be specific. Instead of general goals, choose specific objectives for contributing to the community you serve.

2. Know the rules. There are laws that regulate fundraising

Your nonprofit may never have a viral campaign as successful as the Ice Bucket Challenge, but careful planning can ensure

for nonprofits, and those laws vary by state. Most states require organizations to register before making any charitable solicitation within that state. The failure to register can result in both civil and criminal penalties. Crowdfunding potentially can expose an organization to the jurisdiction of every state where it solicits funding.

The failure to register can result in both civil and criminal penalties.

There has been some debate as to whether crowdfunding triggers state solicitation registration requirements. Definitive answers haven’t yet been provided, but there is some guidance under the Charleston Principles, which are nonbinding

“

”

20 | nonprofitworld.org volume 34 • number 2

“

Crowdfunding often takes less manpower, money, and time than other forms of donor solicitation.

”

principles written by the National Association of State Charity Officials (NASCO). That guidance can be found at: http://www.afpnet.org/ResourceCenter/ArticleDetail. cfm?ItemNumber=3309.

3. Make full use of tax regulations. Not all crowdfunding

donations are tax deductible, even if they’re for a good cause.

For example, covering someone’s medical bills may be worthy, but donations to such a campaign don’t qualify for tax exemption. Your 501(c)(3) organization has an advantage because contributions to your campaign are tax deductible, so be sure people understand this distinction. Clearly state that you’re a qualified charitable organization under IRS code 501(c)(3).

4. Build your community. Start with your own database.

Reach out to your network first to get some traction. Ask everyone you know to spread the word. New donors will look to see if your campaign has some traction before they decide to support your cause. Some advisors recommend that you have 30% of your funding “teed-up” prior to posting your campaign on the crowdfunding Web site so that you show momentum and community support.

Coming Up

in Nonprofit

World

Be sure to maintain proper records and send acknowledgments to all donors, just as you would for any other type of donations.

Think of crowdfunding as a way of expanding your relationship database of potential donors. Show those donors gratitude and respect by being transparent. Show them how their money is being used and what type of impact your organization is making. Razoo.com offers great advice: “Love your donors.

Treat them like investors.”

5. Use crowdfunding success to help win large donations and corporate sponsors. Someone who is giving a grant or

choosing a cause for their corporation to support may want to hear more than just a heartfelt pitch. Those giving grants or sponsorships may want to see tangible proof that a nonprofit’s initiative has a strong support base and can bring in funds from the everyday donor. Crowdfunding is a great way to provide that evidence. For instance, a domestic violence prevention nonprofit looks much more attractive if its crowdfunding campaign to build a new shelter raised $200,000 in one month on Kickstarter.

Plan your crowdfunding campaign carefully and it can become a recurring staple in your nonprofit’s fundraising efforts.

Diane Wittenberg, CPA (dwittenberg@hwcpa.com) is an audit partner with Haskell & White LLP (hwcpa.com).

She specializes in the nonprofit sector. Additionally, she is experienced in special projects, including mergers and acquisitions, initial public offerings, secondary offerings, and SOX compliance consulting.

• What’s the True Value of Your Services?

• Stop Before You Conduct That Survey!

• How Changing Your Lenses Will Strengthen Your Leadership • The Skill Every Fundraiser Needs: Cultural Wisdom • IRS Audits: What Could They Mean for You? • Anatomy of an Award-Winning Campaign • Make More Money: Evaluate Gifts in Advance • Should You Charge for Your Services?

• Let’s Not Call It Diversity Training april / may / june 2016 nonprofitworld.org | 21

Are You

Telling the Right Story

about Your Liquidity?

L

What’s the best way to describe your organization’s liquidity?

By Lee Klumpp & Adam Cole

iquidity is crucial for your organization. You must have the right amount of liquid and non-liquid resources available when you need them. There’s a cost associated with not having enough liquidity. But there’s also a foregone opportunity cost for having too much liquidity. Therefore, your liquidity is an important story to convey to those who use your financial statements.

Who are these people who’re interested in knowing how liquid you are? They’re your donors and other supporters of your organization as well as those who’re thinking of supporting you. They’re creditors, credit rating agencies, banks, and other lenders that use liquidity as a barometer of a credit-worthy organization and consider adequate liquidity a criterion for providing loans and reimbursements to you. All these groups want to know what assets you can quickly convert to cash to pay for current or future programmatic activity, debt service, and other activities.

Defining Liquidity Liquidity is a multifaceted concept that encompasses many different meanings, so to determine how you should communicate your organization’s liquidity in your financial statements, let’s first consider how it is defined. Often, when users of nonprofit financial statements use the term “liquidity” they’re referring to liquidity risk or financial flexibility. For the purposes of our discussion, the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) defines liquidity and the related concepts as follows: Liquidity is defined in the ASC Master Glossary as an asset’s

or liability’s nearness to cash. Donor-imposed restrictions may influence the liquidity or cash flow patterns of certain assets.

Financial Flexibility is defined in the ASC Master Glossary

as the ability to take effective actions to alter amounts and timing of cash flows so that the organization can respond to unexpected needs and opportunities.

Liquidity Risk isn’t defined in the ASC Master Glossary, but it was discussed in a recent research project by the FASB on disclosures about liquidity risk and interest rate risk. This project used the term “liquidity risk” to mean the risks and uncertainties that an organization might encounter in meeting its financial obligations.

Of course, when people talk about your liquidity, they don’t have those precise definitions in mind. When they discuss 22 | nonprofitworld.org volume 34 • number 2

“

Every organization needs to have the right amount of liquid and non-liquid resources.

”

how liquid your organization is, they’re usually referring to how much cash (and assets, such as short-term investments, which you can easily convert to cash) that you have on hand for use in the immediate future. They consider your organization liquid if it has ready access to cash to meet its needs. They may describe your organization as liquid if it holds cash directly or holds other liquid assets such as money market accounts, certificates of deposit, or other short-term investments that can readily be converted to cash.

You might think that your organization is liquid if you have access to cash through borrowing power, lines of credit, and the like. This, however, is a faulty assumption. Access to cash through borrowing may create liquidity, but borrowing is more akin to financial flexibility and clearly isn’t a liquid asset that you can communicate in the statement of financial position at the measurement date.

Accounting Requirements The current accounting guidance for nonprofits (ASC Topic 958) requires that a nonprofit report assets and liabilities in reasonably homogeneous groups and classify them in ways that provide relevant information about their interrelationships, liquidity, and financial flexibility. You might interpret this requirement to mean that you only need to sequence your assets according to their nearness to cash and your liabilities based on the timing of their maturities. This could be correct for some small, less-complex nonprofits. However, for more complex nonprofits with endowments and sinking funds, for example, it could be misleading to classify the endowment with the nonprofit’s unrestricted investments and to combine the sinking fund cash with the nonprofit’s unrestricted cash and

cash equivalents. If you grouped items together solely by the nature of the asset (cash, investment, and so on) or liability, the users of your financial statements would get an unrealistic picture of your liquidity, even if you provided further details in the notes. In order for your financial-statement users to understand your liquidity, they must be able to understand the restrictions, whether donor, contractual, or legal, on your use of particular assets.

Some have argued that you can get to liquidity through analyzing a nonprofit’s net assets, but net assets are solely a residual of assets less liabilities and don’t convey liquidity.

For net assets themselves to convey liquidity, the nonprofit would have to be able to convert the net assets to cash or use them to settle an obligation based on the definition of liquidity.

Therefore, it would be difficult to communicate what net assets are available, for what purpose they can be used, and whether the net assets are with or without donor-imposed restrictions.

Nonprofits currently have flexibility under generally accepted accounting principles (GAAP) in telling their story regarding liquidity to those who read their financial statements. Here are the ways you can create a picture of your liquidity on your financial statements: • Sequence assets according to their nearness of conversion

to cash, and sequence liabilities according to the nearness of their maturity and resulting use of cash.

• Classify assets and liabilities as current and noncurrent.

• In notes to financial statements, disclose relevant

information about the liquidity or maturity of assets and liabilities, including restrictions on the use of particular assets.

Even with these options, it can still be hard to understand your organization’s liquidity. Additionally, there are even difficulties in comparing liquidity within the nonprofit sector.

That’s because of common weaknesses in many nonprofits’ financial statements, especially the following: • lack of information presented in the notes to the financial statements related to the board’s policy on investments,

specifically around pooled investments that include both restricted and unrestricted amounts

• lack of disclosures about how the organization will meet

its short-term liquidity needs

• complexity of restricted contributions and designations

by the board of directors.

The FASB recently issued an exposure draft of the Proposed Accounting Standards Update (ASU), Not-for-Profit Entities (Topic 958) and Health Care Entities (Topic 954): Presentation of Financial Statements of Not-for-Profit Entities. This proposed ASU addresses the issue of how a nonprofit should disclose information regarding liquidity.

“

Specifically, the ASU proposes that a nonprofit disclose both quantitative and qualitative information about the liquidity of assets and near-term demands for cash as of the reporting date, including: • the amount of financial assets at the end of the period • the amount that, because of restrictions or other

limitations on the assets’ use, isn’t available to meet cash needs in the near term

• the amount of financial liabilities that require cash in

the near term

• information regarding how the organization manages its liquidity, including the time horizon it uses in the

management of liquidity as well as any other sources of cash (such as lines of credit) during that time horizon.

It’s believed that this information will significantly improve users’ ability to assess nonprofits’ liquidity risk. Stay tuned to see what the FASB board‘s ultimate decision is regarding the liquidity component of the ASU. The FASB is not the only entity looking at this issue. Liquidity is also a critical metric used by boards and stakeholders to measure an organization’s potential sustainability. Currently, the state of New York is working on a Medicaid transformation project that will result in enhanced reimbursements to those organizations that qualify. In order to qualify, one criterion will be that an entity has adequate liquidity.

These events highlight the need for you to be able to measure and, even more important, communicate your organization’s liquidity.

What’s the Best Way to Measure Your Organization’s Liquidity?

Financial performance measurement is a strategy you can use to evaluate operations, programs, services, and financial stability. One of the key measurement tools is financial ratio analysis. It involves taking data from your financial statements, using it to calculate ratios appropriate for your organization, and then benchmarking those ratios against past performance, management objectives, or other organizations.

Financial ratio analysis can help you assess your overall financial condition and liquidity. It can also flag patterns that might not be conducive to your organization’s success. There are three main financial ratios you can use to measure your organization’s liquidity: 1. Current ratio equals current assets divided by current

liabilities. A 2-3 ratio indicates that you have adequate liquid funds to pay your current obligations.

2. Quick ratio equals current assets (less any inventory

amounts) divided by current liabilities. A ratio of 1-2 shows that you have adequate liquid funds to pay your current obligations without selling inventory.

3.

Organizational liquidity funds indicator equals

Be sure you have enough cash available for continued growth.

”

expendable net assets divided by average monthly total expenses. Expendable net assets are calculated as net assets less restricted endowments, fixed assets, and prepaid expenses. This indicator measures how many months you have before you will consume your liquid assets, assuming

april / may / june 2016 nonprofitworld.org | 23

that no additional revenue flows into your organization. The higher the ratio, the better your liquidity.

These ratios are fairly easy to calculate, and you can then benchmark your organization by comparing it to similar nonprofits. Comparing your organization’s performance to benchmarks allows you to zero in on areas with the greatest potential for improvement. Using this information, you may be able to boost performance without making significant changes in your operations. Further, when comparing against similar nonprofits, you might improve performance by simply adopting best practices used by your peers. You can obtain information on other nonprofits’ metrics from Web sites such as GuideStar and Charity Navigator.

Using monthly, quarterly, or even yearly financial ratio analysis can help you understand your organization’s liquidity and provide you with valuable insight into your organization’s financial future. You’ll be able to identify the strengths and weaknesses of your organization and take appropriate actions to improve liquidity.

Lee Klumpp, CPA, CGMA, is a director with BDO International, a worldwide professional services network of public accounting firms, serving national and international clients. Adam Cole, CPA (acole@bdo.com), is a co-leader for BDO’s Nonprofit & Education Practice and the managing partner of the Greater New York Nonprofit and Employee Benefit Plan Practices. They write for the Nonprofit Standard blog (Nonprofitblog.bdo.com), from which this article is adapted.

“

Nonprofits have flexibility in telling their story regarding liquidity.

More on Managing Your Money See these articles at www.NonprofitWorld.org/ members: Good Cash Management Shows Good Stewardship (Vol. 25, No. 6) Are You Financially Empowered? A Quiz (Vol. 15, No. 1) Calculating Your Capital Needs (Vol. 11, No. 6) Don’t Forget Your Indirect Costs! (Vol. 14, No. 5) Do You Have Enough Cost Information to Make Good Decisions? (Vol. 15, No. 6) Financial Stability: An Impossible Dream? (Vol. 15, No. 3) Something Is Missing: The First Step in Evaluation (Vol. 29, No. 6) Stay in the Money: Keep Cash Flow Problems from Derailing Your Organization (Vol. 31, No. 1) Are You Fulfilling Your Financial Trust? The Three Key Financial Roles in Every Nonprofit (Vol. 16, No. 4)

Enjoy Reading NONPROFIT WORLD ?

Here are more benefits of membership in the Society for Nonprofits

• 12 issues of Nonprofit World Funding Alert, providing monthly updates on grant and funding opportunities • Membership in GrantStation, with instant access to over 5,500 grantmakers via the Find-a-Funder searchable database • Complete access to over 1,200 printer-ready management articles, searchable by author, key word, or subject • Discounts on products and services, including books, audiotapes, videotapes and Webinars presented by experts in the field • Reduced enrollment fees from the Learning Institute for the Society’s Certificate of Excellence in Nonprofit Leadership and Management • Free job postings on our NonprofitCareers.org job site

For more information, visit: www.NonprofitWorld.org 24 | nonprofitworld.org volume 34 • number 2

”

relevant reviews

Using Marketing to Create Widespread Change These

strategies and tools can help you find the best solutions to your most vexing problems.

By Terrence Fernsler Social Marketing and Social Change. By R. Craig Lefebvre.

Softcover. 564 pages. John Wiley & Sons (wiley.com).

M

arketing—which is sometimes used to institutionalize greed—can also be used to improve social conditions. This book takes a comprehensive approach to applying marketing to social issues. It provides frameworks for working with people to drive behavioral change. It can help you reflect on what might be missing from your organization’s efforts to create more sustainable and equitable solutions.

People don’t live solely in an economic marketplace. Applying some of what has been learned about marketing in business to drive large-scale behavioral change can help bring positive impacts on people’s health and well-being.

Author R. Craig Lefebvre offers real-life examples of social marketing-driven changes that have improved communities. He presents social marketing as a way to identify what people value rather than as an effort to impose value. He describes all the processes and outcomes that influence change, yet at the same time he takes a systems approach, not a clinical approach, to obtaining results.

This comprehensive, thought-provoking book goes beyond individual behavioral change to large-scale policy change that’s not driven from the top but from the community level. It applies marketing principles to the development of innovative, community-based approaches. Especially worthwhile is its focus on sustainable solutions and on effective ways to evaluate marketing efforts.

Social marketing allocates resources in a strategic way to address enormous, far-reaching problems at a manageable scale. It facilitates change by meeting stakeholders’ goals and integrates tried-and-true practice with insights from those being served. It approaches social issues by determining how different actors in society can improve program effectiveness, equity, efficiency, and access.

Unlike most new books, Social Marketing and Social Change, while encompassing new technology tools, isn’t limited to them. It includes asset based community development as a marketing consideration, and asks truly generative questions to make sense of how to use marketing tools in the social sector to effect meaningful change.

Terrence Fernsler, MNPL, has been a nonprofit professional for over 30 years. He is currently an advisor to nonprofits and a PhD student in the School of Strategic Leadership Studies at James Madison University in Virginia.

Think Like a Fish If you want to catch a fish, learn to think like one, the saying goes. Social marketing is based on this premise: To help people change, you first need to listen to what they have to say. Then focus on behaviors that are amenable to change.

As you do so, value deviancy more than conformity. Recognize that there are individuals whose uncommon ways of thinking lead to better solutions than those of their peers.

This approach assumes that innovative ideas already exist within the system. Your role is to help the community discover and spread those ideas to facilitate social change.

There are five steps to the process: 1. Identify four to six people who have achieved an unexpected good outcome despite high risk.

2. Interview and observe these people to discover uncommon behaviors that could explain the good outcome.

3. Analyze the findings to confirm that the uncommon behaviors are accessible to those who need to adopt them.

4. Design activities to encourage adoption of the new behaviors.

5. Monitor and evaluate the results.

When a medical center used this technique, it discovered five vital behaviors that led to uncommonly high customer satisfaction: Smile, identify yourself, make eye contact, tell people what you’re doing and why, and end every interaction with, “Is there anything else that you need?” When the entire center learned and enacted those behaviors, there was a dramatic improvement in service quality scores.

– adapted from The Power of Positive Deviance as discussed in Social Marketing and Social Change

april / may / june 2016 nonprofitworld.org | 25

nonprofit briefs Five Steps to Creative Problem Solving Do you block important answers by failing to use the power of your entire mind? Increase your performance by understanding how your subconscious mind works. Once you know how, you can tap its power to meet challenges—both large and small.

1. Define the problem. Write it down. Be clear about what you need to resolve.

2. Gather data. Consult with experts. Research written material. Browse the Internet. Don’t spend a lot of time on this step. Find the input you need as quickly as you can.

3. Work on the problem using your conscious, rational mind. Ask yourself, “Is there a black and white solution here? Are there options I can look at? What are they?

A Better Way to Work?

Imagine working entirely from home, with no e-mail, no schedules, and without ever meeting your colleagues.

Could such a workplace be effective?

Yes, according to Scott Berkun, who describes such a workplace in The Year without Pants: WordPress.com and the Future of Work (www.josseybass.com). The founder of WordPress asked Berkun to join his company, Automattic, where employees work wherever in the world they wish, have an open vacation policy, and are encouraged to express themselves freely and creatively.

Working remotely, Berkun says, mellows everything out, dropping the intensity of both the highs and the lows of a “real” workplace. “During my year at Automattic, I was never in a meeting that made me angry or want to storm out,” he says.

Although e-mail was available to workers, it was almost never used. E-mail has many disadvantages, including the fact that it’s a closed channel. There’s no way to see an e-mail if you’re not on the “to” list, forcing work groups to err on the side of including everyone. Only a fraction of e-mail has direct relevance for any individual. Getting rid of e-mail eliminates the turf battles, approval seeking, and grandstanding that dominate many miserable e-mail threads.

Instead of e-mail, employees use internal blogs, Skype, and Internet Relay Chat (where they go when they want to talk in discussion groups or seek help). Internal blogs sidestep the problems of e-mail; they’re easy to skim, easy to reference with an URL, available to all forever, searchable, and easily pushed into different reading tools.

There are no formal interviews for positions at this forward-looking company. Instead, prospective employees are given real tools and work on a real project.

If they do well, they’re hired.

A completely virtual organization won’t work for everyone.

But many of the strategies described in this fascinating book are well worth considering if you want to be part of the future of work.

4. Take a break. Give your conscious mind a rest. Go shopping, play golf, head to the health club, go fishing.

Sleep on it. Turn it over to your supraconscious mind. Let your inner mind go to work for you. Tell it you need the best solution.

5. Wait for results. When the time is right, the best answer will be there. No bells will ring. The answer will come forth in a “blinding flash of the obvious.” You may find yourself saying, “Now why didn’t I think of that sooner?”

– from Beyond The Power of Your Subconscious Mind, beyondthepower.com

Rise above the Noise with Your Message A SPIKE (“Sudden Point of Interest that Kickstarts Exposure”) is a span of time during which your organization is thrust into the public eye. This can be the result of an external story, instigated by someone else, or can be carefully planned to promote your organization. In either case, Spike Your Brand ROI (josseybass.com) explains how to make the most of such moments to appeal to stakeholders.

To be successful, you need to create targeted messages that rise above the noise. Tips include: • Say the message on your Web site out loud. Is it something people would actually say? If not, change it.

• Do a focus group. Ask people to repeat what they know about your organization after giving them your messages. If they can’t remember the information, go back to the drawing board.

• You should have no more than three to five clear, concise, repeatable messages.

Poorly managed marketing campaigns can do untold damage when they go viral. How you respond to events, and the timing of a response, will make or break your organization’s reputation. By planning ahead, you can achieve maximum effectiveness when your organization’s moments of fame emerge. This book demonstrates how.

–reviewed by Terrence Fernsler

26 | nonprofitworld.org volume 34 • number 2

nonprofit briefs Tell Me a Story, Please!

Stories are like lighthouses in the storm, noise, and chaos of the digital age, points out David Casullo in Leading the High-Energy Culture (McGraw-Hill Books, mcgraw-hill.com).

The best stories are the ones you tell about yourself. Use storytelling to let people know what you stand for and what’s important to you.

As you create your story, cast yourself as a learner, not a hero.

Consider a story from your experience that focuses on one of the following categories: • personal challenges, difficult decisions, obstacles you’ve faced in your life or career • startling events, major changes, turning points • embarrassments, awkward situations, dumb ideas, failures • places you’ve been, things you’ve discovered, events you’ve witnessed, inspiring people you’ve known.

As you tell your story, remember these communication keys: • The more critical the message, the closer you must be to your audience.

• Reinforce group communication with constant individual communication.

• Always start your message by focusing on what your audience cares about most.

Questions to Change Your Life Good questions trump easy answers, as Andrew Sobel and Jerold Panas show us in Power Questions (published by Wiley, wiley.com). Their 337 questions are sure to reap illuminating answers.

For each question, the authors provide follow-up questions.

They also offer real-life examples of how asking the right question can change lives—and how great the costs can be when someone forgets to ask a crucial question.

Here’s a sampling of powerful, thought-provoking questions you can ask of yourself and others in your life: • What makes today different?

• How will this further your mission?

• What did you learn from your most recent experience?

• Why do you do what you do?

• What do you wish you could do less of? What do you wish you could do more of?

• Why do you want to do that? What is your plan?

• Can you tell me more?

• What question haven’t you asked yet?

The Responsibility of Power For more than 60 years, Noam Chomsky has been clarifying the use of words for us, including how authority figures often obfuscate language to justify acts of dominance. In Because We Say So (City Lights Books, citylights.com), Chomsky reveals the language U.S. government officials use to justify attempts (often successful) at political hegemony. This lingual manipulation is done in the name of the people of the United States, simultaneously perpetrating it against these very people.

The essays in Because we Say So highlight such thought-provoking topics as the world view of the U.S. as the greatest threat to peace—something you won’t hear or read in U.S.-based media of any type.

How the rest of the world views the U.S. is important to a nonprofit sector that is so deeply in association with the government. It’s particularly important as more and more U.S.-based nonprofit organizations recognize the borderlessness of their work and build alliances with NGOs elsewhere.

Verbal manipulation by the state can greatly impact trust, not only with foreign organizations and populations but even with those who bear the brunt of campaigns of disinformation in our own nation. If there is distrust between people, it affects the ability of organizations to work together to resolve critical issues.

Nonprofit organizations in the U.S. enjoy enormous privileges, many of which are due to the nation’s powerful global position and conveyed to nonprofits by association. These privileges sometimes cause us, as nonprofits, to forget the consequences of power.

As Stan Lee penned, “With great power comes great responsibility.” We have a responsibility to build trust with stakeholders and prospective stakeholders, which means not only being transparent but being civil toward each other. Civility includes listening to and respecting (even when not agreeing with) the perspectives of others, and not presuming our position is the only valid one.

Chomsky helps us understand how trust—or the lack of it—and civility are affected by language that is used in our name. As representatives of our stakeholders, our role as nonprofits includes not merely working in cooperation with the state: It also involves making sure government represents the people honestly. As mission-driven organizations, we’re obliged to make certain we actually benefit the people we represent, and not assume our actions are beneficial simply because we—or our government officials—say so.

–reviewed by Terrence Fernsler

april / may / june 2016 nonprofitworld.org | 27

nonprofit briefs The End of Team Building Training If you’re looking for team-building seminars, don’t ask Steve Chandler to lead one. Such training was once his specialty, but he no longer provides it.

If people aren’t performing and communicating with spirit, it’s not a team-building issue, he says: It’s a leadership issue.

In The Hands-Off Manager (Career Press, careerpress.com), he and co-author Duane Black offer tips for creating a culture in which teamwork will simply grow. Here are a few: • Mentor employees toward success in their work instead of trying to impose productivity.

• Learn to know yourself. Take time to reflect. Ask yourself how you can best contribute to the overall good of your organization’s mission.

• Become a neutral negotiator. Never get so attached to a particular outcome that you can’t move to a better opportunity. Learn the power of being neutral, in which it doesn’t matter if things work out exactly as you planned and you have no position to defend. You’re not attached to any “win” except for the highest good.

• Find ways to reduce your stress. If you’re not at peace with yourself, anyone you mentor will be contaminated by your unease. Address one stressful situation at a time. For instance, if you’re getting too many phone calls, let your calls go directly to message for awhile to give yourself a chance to center yourself. If you’re worried about an upcoming speech, do some deep-breathing exercises.

• Remember that the people with whom you have the hardest time relating are your best teachers. Spend time listening to them and learning from them.

• Notice your thoughts. Which ones bring you down? Which ones lift you up? Realize that it’s your own thinking that creates your feelings. If you want to change the energy around you, change your negative thoughts into positive ones.

• Don’t focus on what you fear might happen or on what people are doing wrong. It’s by concentrating on what people do well that they improve. Likewise, focus on your own strengths rather than your weaknesses.

Provide Red-Carpet Treatment to Solidify Support Making everyone involved with your organization feel special — going that extra mile for them — is the way to inspire loyalty and build rock-solid bonds. Here are a few ways to show appreciation to your stakeholders (from 501 Ways to Roll Out the Red Carpet for Your Customers, published by Career Press, careerpress.com): Birthdays and holidays present easy ways to create special moments for people. Rather than sending traditional cards, do something different, such as recording a short video to send to your donors or other stakeholders.

Find out the most important days in the eyes of your supporters — an anniversary, birth of a child, or other milestone — and recognize them on social media.

28 | nonprofitworld.org volume 34 • number 2

Create a hashtag for your organization. Post it on your social channels and other communications. Monitor the hashtag, thank those who use it, and share relevant posts, giving credit to the original poster.

Treat all your organization’s employees (including volunteers) as valued customers. Happy employees are vital to your organization’s success. Invite employees to events outside of work to build team spirit. Offer classes on topics such as health (Zumba or dance), empathy (de-escalating angry callers), and life skills (budgeting and finance). Host lunches with the boss for different employees several times a month. Celebrate every success with food — pizza, pancakes, a catered lunch — whatever your employees most enjoy.

Every day, hand-write a thank-you note to someone — an employee, donor, or other organizational supporter.

Make Your Meetings Count If you tallied the true cost of meetings — the hours that each meeting attendant could have used to accomplish something else — you would want to make every second of every meeting count. Productivity Driven Success by Eric Bloom (Manager Mechanics, managermechanics.com) describes ways to enhance the quality of your meetings: Send an agenda at least two days before the meeting. On the agenda, include a start time and purpose for each item.

For example: • Topic 1: 2:00 p.m. Looking for your input • Topic 2: 2:10 p.m. Decision to be made • Topic 3: 2:25 p.m. Update of project status • Meeting adjourns: 2:30 p.m.

Always start the meeting on time. If a key player is missing and needed for the first agenda item, reorder the agenda, but keep the same amount of time you originally allocated for each topic.

If someone talks too long, politely interrupt, thank them for the great information, and offer to continue the discussion with them after the meeting. Then move to the next topic on the agenda.

At the end of the meeting, quickly recap the decisions made and actions assigned. Be sure each action is assigned to a specific person and has a specific due date.

Always end your meeting early or on time.

Your nonprofit is distinctly

individual.

Your insurance should be too.

At At Affinity Affinity Nonprofits, Nonprofits, we we customize customize your insurance program to fit your unique needs and we do do itit at at premium a premium you can afford. we you can afford.

• Over 35 years’ experience working with nonprofits • Coverage for more than 30 unique classes • Insurance portfolio – Directors’ & Officers’ Liability – Showstoppers Event Cancellation Insurance – Volunteer Accident Insurance

– Umbrella Liability – Property & Casualty Insurance

Find peace of mind at a premium you can afford, contact us at:

800.432.7465 | dnocustomerservice@aon.com www.nonprofitinsurancesolutions.com Affinity Nonprofits is the program name for the brokerage and program administration operations of Affinity Insurance Services, Inc. (TX 13695); (AR 100106022); in CA & MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services, Inc.; in CA, Aon Affinity Insurance Services, Inc. (CA 0G94493), Aon Direct Insurance Administrators and Berkely Insurance Agency and in NY, AIS Affinity Insurance Agency. © 2015 Affinity Insurance Services, Inc. E-11410-815

We Know Nonprofits

The Society for Nonprofit Organizations P.O. Box 510354 Livonia, Michigan 48151

“Great software, easy to use and super helpful! My organization has been using DonorPerfect for the past year and couldn’t be more pleased.“

- Brynne Moore, Life Crisis Center

Love Your Fundraising Software Fundraise Easier.

DonorPerfect’s intuitive donor management tools simplify the way you fundraise.

Try DonorPerfect Free Today!

Call 800-220-8111 or visit donorperfect.com/NPW-Easy.