What’s Up with Fairfield County, CT?

There is no question that we love living in Fairfield County, CT. Close to New York City yet with access to beaches, beautiful hiking trails and world class shopping, it is a great place to live. Connecticut has the highest per capita income of any state in the country at $36,775 and our median home prices hover 60% above the national average at $80,000. That is great news for anyone who is trying to sell a home in this real estate market. 

Yet, just under the surface the picture is not so rosy.

Connecticut is home to the largest income gap in the country. The disparity between the haves and the have-nots is staggering. The average income in the top ten percent of earners was $114,000 (2008 study) versus the bottom ten percent at $7,800. That is a14:1 ratio, an increase from a 10:1 ratio in the mid-1980’s! Governor Dannel Malloy recognized this imbalance and instituted a tax plan with a luxury goods tax and earned income tax credit.

However, income disparity is not the only troubling statistic in Connecticut. In an area with such a wide income gap, I would assume that there would be a high rate of volunteerism to help those less fortunate. This is not the case in Connecticut. The Corporation for National and Community Service (CNCS) recently issued a report that stated that volunteerism in Connecticut had fallen. Just under one third of residents in Fairfield County volunteer and devote an average of 31 hours a year. That ranks Fairfield County 30^th among the 125 municipal areas in the survey. Further, the state barely made it into the top third of residents who volunteer, and trailed Vermont and Maine in the Northeast.

As individuals we can make a difference in the lives of those less fortunate. If you can, help those in need by volunteering your time or donating to an organization. Ask your employer if they would consider instituting a volunteer program or offer pro-bono services to a nonprofit organization. There are many ways to give back. 

Economic inequality is a hot button issue from the Occupy Wall Street movement to the 2012 Presidential campaign. Consider a new twist on the ‘Occupy’ movement and turn ‘Occupy Wall Street’ into ‘Occupy Volunteerism’. Let’s help all of our residents take advantage of the many aspects of Connecticut. Do Well By Doing Good.

Give Donors What they Really Want

There is something about the onset of Thanksgiving and the holidays (end of year donations perhaps?) that have bloggers and consultants writing feverishly about unique and compelling ways to thank donors. I have recently contributed to the onslaught myself (http://mfgrants.blogspot.com/2011/11/how-to-say-thank-you-in-chinese.html).

But maybe it is time to temporarily shelve the ‘thank you’s’ and give the donors what they really want-ROI.

Why do donors give? To satisfy an internal need, to perpetuate a family culture of giving, to satisfy a pressing need, or any of a thousand different reasons. Giving is a wonderful experience. It releases serotonin in the brain and makes us feel good!

But after the moment of giving and the serotonin has faded donors really want to know that their hard earned, net-income gift has gone to good use. A well-used gift creates pride of ownership and reinforces the donor’s good decision to contribute to your organization. A well-spent gift produces a donor that is an ambassador for your organization making your job easier.

Measurement and evaluation are not nearly as thoughtful as a handwritten card or as sexy as an exclusive invitation-only event, but are critical for donor retention. If a donor feels that his gift has been used well, he will continue to give and can be moved through the ‘pipeline’ to larger gifts and possibly a planned giving strategy or a bequest.

So, how best to consider measurement and evaluation? Every program will have measurements that have unique characteristics however; there are constants from which all organizations can benefit.

  

Start by making some lists-nothing fancy, just a few words, in the subsets of the following categories:

(These categories were derived from countless grant proposals over the past five years)

Category #1: Determine Your Outcomes:

-List Your Programs

-Resources Used by the Program (i.e. staff, budget, sites, accreditations/licenses)

-Activities Associated with the Program that make the Program Run

-Outputs (count your activities i.e. how many people enrolled, where enrolled, hours of operation, number of scholarships, etc.)

-Long-Term Outcomes-always client focused (i.e. students have an understanding about the importance of good nutrition)

Now that you have identified what resources you have, the elements of your programs and your outcome goals you are ready to put some measurement metrics into place.

Measurement Metrics: (Measure against your Long-Term Outcomes)

-Indicators-Information that shows if your outcome has been achieved (i.e. # of students who made healthier food choices at lunch)

-Where did you get the Data for your Indicators? (i.e. lunchtime questionnaire)

-Benchmarks

Benchmark Goal: What actual number or percentage do you wish to attain

(i.e. 90% of students make healthier choices at lunch)

Benchmark Source: Where did Benchmark goal come from? (i.e. internal survey)

Actual Benchmark: What was the Actual result of the Program (i.e. 80% of students chose a healthier lunch)

-Influencing Factors: What influenced the results (i.e. nutrition information was not placed prominently enough in the cafeteria or the cafeteria did not verbally offer the healthy option)

-How You Would Change the Program as a Result: (i.e. place nutrition cards on each lunch table or have nutrition information prominently displayed or discussed as lunch choices are being made)

-Net Outcome: this is a big one. It can be difficult to gather data for a net outcome. Can you prove the long-term effect of your program (i.e. two years later, 60% of the students were still making healthy choices). These should be listed with a data source

You can set these headings up on a spreadsheet and fill in the columns.

For donors, think about including a small chart with your long-term outcomes, benchmarks (goal and actual) and influencing factors in a thank you letter. If you are making changes to your program as a result of your data collection donors will be grateful for your transparency and inclusion in the process. Your donors will feel that their gifts were well stewarded and that they have made a sound investment. A well-informed donor is a happy, and a most important, a repeat donor.

The Economist-'The World in 2012 Festival': Predictions from really smart people. Why you should care

The Economist Magazine hosts this wonderful conference every year in New York highlighting predictions from market leaders in a ‘festival of the trends, issues, and ideas that will shape the future’. Each editor leads a panel ensuring a diverse group of participants and ideas. Some of the most notable panelists this year were Robert Rubin, Former Treasury Secretary, Arianne Huffington, Editor of the Huffington Post, Robert Frank, author of ‘The High-Beta Rich’, DJ Spooky and Dennis Crowley, co-founder of Foursquare.

As you may have guessed there were some very insightful and funny forecasts, but a few stood out that relate directly to us in the nonprofit world.

We are in a giving climate that is sluggish to say the least. The Chronicle of Philanthropy’s recent study with the Nonprofit Research Collaborative

(Full study at www.guidestar.org) found that giving was largely flat. The organizations that showed the most improvement were the larger ones and those that spent money on fundraising efforts- interesting. So how can we combine some of the predictions of the best and the brightest to increase our fundraising success rates in 2102?

Tell More Stories: The Huffington Post (www.huffingtonpost.com) is a reliable arbiter of our country’s trends and predispositions. Arianna Huffington pointed to the public’s general lack of trust in our institutions from banking to politics. She predicted that to restore that trust we should use more storytelling and rely a bit less on statistics and numbers. Consider including your organization in the Huffington Post’s ‘Inspirationists Series’ or having a key volunteer or donor showcased on ‘The Greatest Person of the Day’ series.

The Huffington Post is expanding into European and South American markets. Their expansion strategy is to partner with existing media organizations in the market to ensure that they are addressing the country’s needs and that their content and format is relevant to the culture. This is a great reminder for us in the nonprofit sector to assess our recipient market and partner when necessary to make sure that we are continuing to be relevant and meet our client’s needs.

The Year to Refine Your Methods: OK this may be crazy, but Susan Miller, founder of the Astrology Zone (www.astrologyzone.com), which by the way gets over 18,000 hits a month, enlightened us that 2012 is the ‘year to refine your methods’. Dust off your best practices documents and start refining.

The Really Rich are Getting More Low-Key: We would all love a cache of really wealthy donors. According to Robert Frank, author of ‘The High-Beta Rich’ the tax debate, the Occupy Wall Street movements and other political and social unrest, will make the rich feel more under siege and they will keep a lower profile.

Here is the seminal quote from an unnamed billionaire, “Rather than a return on my assets, I would like to see my assets returned.” So be prepared to make your best and most compelling case to capture these donors.

The good news is that because of the visible work done in philanthropy by Warrren Buffett and Bill Gates, more of the wealthy will be seeking causes in which to invest their fortunes. Accountability and transparency will be key factors in these donations.

The other news is that the number of millionaires/billionaires will increase from 38.5% to 40% over the next year. However, this increase will come primarily from emerging markets. Look to the hedge fund guys in the U.S. as the next frontier of philanthropy.

I Want Something I Can Hold: DJ Spooky and John Wesley Harding led the music panel. There is a trend back to vinyl. People want something that they can touch, look at, and keep. The message for nonprofit organizations- keep those site visits going. Seeing is believing.

The last predictions came from the technology panel. Kati London of the gamer Zynga and Dennis Crowley of Foursquare both spoke about new developments hitting the street in force in 2012.

Technology That Learns Preferences and Real World Gaming Applications: Google Wallet and Mastercard (www.google.com/wallet) have teamed up to create a virtual currency network. This is not new, but the advancement is that in the upcoming year software will be introduced that learns the owner’s spending preferences. Consider using technology such as this for donations and for monthly givers.

Also on the horizon is a big push in real world gaming. This has wonderful applications for nonprofits. Zygna worked with the John and James L. Knight Foundation in Macon, GA to combat segregation and racial inequality in the city (www.maconmoney.org). Zygna developed a game where participants were given half of a bond and had to find the other half through offline social events and online social media sites. Not until the bond was complete did the participants get the cash reward. The game promoted interracial connections and was very successful. By the way, consider attending the Games for Change conference in 2012 (www.gamesforchange.org) for more gaming ideas.

OK, now you have heard the experts-what predictions can you make for your organization, and what will YOU do to make 2012 more successful?

 

Great Nonprofit Lessons from Black Friday

Why do we get so excited about Black Friday?  Black Friday sounds more like a contractible malady than a good time. Nevertheless, we push ourselves back from the dinner table each Thanksgiving with excitement and wonder at the late night bargains to be had.

What is it about Black Friday that causes this Pavlovian response and what can nonprofit organizations learn from the aura that Black Friday creates?

Black Friday is a powerful brand.

The term is an umbrella brand for all retailers. Black Friday has come to signify bargains, late night shopping, chaos, long lines, shameless capitalism, and did I mention bargains?

The takeaway for nonprofits: When building your organization’s brand be clear about its characteristics. There should be a direct correlation between your Mission and Vision statements in the creation of your brand. Choose your words carefully for the tagline, logo, marketing messages, positioning statements, etc. These help create and support your brand. Be as clear and concise as possible when crafting these statements.

Black Friday creates excitement and good stories.

As a shopper you know what you are getting on Black Friday from long lines to good deals and everything in between. Whatever your personal expectations are, every Black Friday shopper comes home with a story about ‘the greatest deal ever’ or ‘the one that got away’. If you partake in Black Friday shopping you WILL come out of the experience with a good story. Promise of the story is part of the reason that shoppers return to the chaos year after year.

The takeaway for nonprofits: Provide the raw material to your donors, volunteers, and staff to create their own story about their involvement in your organization. Provide your supporters with actual client experiences and get them excited about your growth and sustainability as an organization. Give them a forum (newsletter, luncheon or event, Facebook) to share their experiences with others. This will create a personal investment in your organization and turn your supporters into ambassadors for your cause.   

Black Friday produces a positive ROI.

Shoppers know that they will get their best deal if they stay up late and battle the crowds. No pain, no gain. Shoppers are willing to suffer a bit for an extra 10% off so they feel like they have gotten the best possible price and spent their money wisely.

The takeaway for nonprofits: Producing a positive ROI is critical for the health of your organization. But you don’t have to make your donors suffer. The most effective way to create a positive ROI is through diligent stewardship. There are many ways to be grateful and appreciative to your donors and volunteers without being annoying (see my post ‘How to Say Thank You in Chinese’ 11/15/11). The reason that 6 out of 10 donors do not give in the second year is that those donors are not appropriately stewarded. It is ten times harder to regain a lapsed donor or volunteer than to correctly steward an existing one.    

Black Friday-one phrase fits all.

Every retailer uses this same phrase to mean bargains. The only difference is the ‘at Walmart’ or ‘at Target’ or ‘at Macy’s’.

Takeaway for nonprofits: Consider partnering with organizations within your sector to create a larger presence. Create an event or conference with an umbrella title for the benefit of all of the partners. The effect is two-fold. Donors will witness the strength of the sector and the variety of its programs while organizations can create program partnerships and cross pollenate their base of supporters. Ultimately, productive partnerships can lead to more efficient organizational structures.

Black Friday is always the day after Thanksgiving.

It is already on the calendar for next year. Black Friday is always the same day although getting earlier and earlier (will shoppers really embrace Grey Thursday? It remains to be seen).

Takeaway for nonprofits: There is merit to having consistency in your event planning. Having an event on the same day every year creates an ‘appointment event’. It is already blocked off on the calendar and has a higher likelihood of attendance.

Happy Thanksgiving and Happy Shopping!!

(Little known Black Friday fact: The term was coined in this country by the Philadelphia Police Department referring to the gridlock traffic in Center City Philadelphia the day after Thanksgiving).  

What Nonprofits Can Learn from Organized Crime

Mark Goodman, senior advisor to Interpol and founder of the Future Crimes Institute wrote a brilliant article in the November issue of the Harvard Business Review titled ‘What Business Can Learn from Organized Crime’. The article identifies ‘best practices’ of organized crime and argues that business can learn from organized crime’s ability to recruit great talent, use technology, and adapt quickly to market conditions. We in the nonprofit sector can also learn valuable lessons from organized crime.

Let’s discuss Mr. Goodman’s five areas of learning opportunity and explore what we in the nonprofit sector can learn and how we can use that information to get ahead.

1) Use the news to create opportunity. Criminals capitalized on the disaster in Haiti to set up false mobile media donation networks through Facebook and Twitter.

What can we learn? We should be aware of the news, assess potential trending that may affect your business, and use the most efficient media tools to disseminate information.

How we can get ahead: Set up social media tools as soon as possible and understand the value of each for your organization. Don’t wait until a news opportunity presents itself to set up your information disbursement network.

2) Outsource to specialists. These days, the confederations of terrorist networks like Al Quaeda are made up largely of loose affiliations and freelancers.  Organized crime is fantastic at outsourcing talent and drawing upon the strengths of individuals over vast geographic regions.

What can we learn? As nonprofit organizations with a constant eye on keeping overhead costs down, we can think about outsourcing certain functions such as grant writing to freelancers. Also consider consolidating back office services with other nonprofit organizations.

How we can get ahead: Network, network, network. Talk to colleagues and build a database of well-respected freelance professionals. Begin a dialogue with other organizations to assess the feasibility of sharing services.

3) Cash isn’t the only incentive. No doubt organized crime pays well, but these days there is a trend of people who are drawn to the world crime as much for the money as for the intellectual stimulation and the ability to ‘beat the system.’

What can we learn? Nonprofits excel at creating a culture of belonging and recognition so keep the culture going.

How we can get ahead: A feeling of belonging and of recognition for employees as well as donors is created through stewardship and appreciation. For donors, build a stewardship system in which every gift is acknowledged seven times (see my post ‘How to say Thank You in Chinese’ for more information), and for employees something as simple as cupcakes in the office or a designated ‘Employee Appreciation Day’ can do the trick.

4) Exploit the long tail. This is my favorite lesson because here we can begin to think differently. According to Mr. Goodman, there is a trend among criminals to execute many smaller crimes versus one large and splashy crime. Executing many smaller crimes reduces the likelihood of detection and therefore creates a stronger and more sustainable enterprise. Credit card fraud is a perfect example in which many small transactions are favored over a single large purchase.

What can we learn? Nonprofit organizations can increase their likelihood of sustainability if they look ahead and continually ask ‘what’s next?’ Sending out many feelers into the market by talking to colleagues and attending conferences on economic and technology issues can identify societal or economic shifts that may impact the future of your organization. If you are not aware of these changes your organization may be scrambling to react to the new reality rather than creating systemic proactive change.

How we can get ahead: As part of your Board committee structure create an Innovation Committee with board and staff members to discuss trends in the nonprofit industry and in your sector. If possible, form a multi agency committee to share viewpoints and ideas. 

5) Collaborate across borders. Organized crime partners with competitors to expand into new markets. The Colombian drug cartels have partnered with the mafia in Eastern Europe to expand their international drug market and increase their business opportunities.

What can we learn? The economic downturn of 2008 forced the consolidation of many nonprofit organizations with similar Missions. The advent of these partnerships is a positive outcome born from economic necessity. Further, more and more foundations are requiring organizations to partner to be considered for grant money. It is in the nonprofit sector’s interest to seek out healthy partnerships. Partnerships can create strength and sustainability.

How we can get ahead: Partnerships can promote organizational efficiency and introduce new avenues of exploratory thinking. But effective partnerships can only come about through strong leadership. To create a successful partnership, leaders should create employee incentive programs based upon the goals of the new partnership and be intolerant of departmental silos. Partnerships can substantially increase an organization’s impact in the market, but like all relationships, have to be managed by clear policies and transparent practices.

Criminal enterprises are market and technology savvy and employ innovative practices to expand their market share. As a sector, we can learn a lot about adaptability to societal and economic forces and adoptability of creative practices from these illegal ventures. The next time you are watching a news story about a criminal group ask yourself, ‘How can my organization benefit from organized crime?’

(My thanks to Marc Goodman for providing the framework for this post. For Marc’s full article please see the November 2011 issue of the Harvard Business Review).