Freebie Corner!

A few weeks ago I announced a couple of great seminars being conducted free. Today the Freebie Corner special is a fabulous report on nonprofit "taglines," the "2009 Getting Attention Tagline Report." Nancy Schwartz at Getting Attention, has developed this fascinating report. What taglines work? What taglines lessen your impact? Is it time to change your tagline?

It is a shame that for most nonprofits marketing becomes an afterthought. Worse still, in slow economic times, the marketing budget is often the first to suffer. Nonprofits must think of themselves as a business, nonprofits are "selling" something. Whether that something is services, legislative representation, peer professional networking, continuing education, etc., there is a product to be sold and there are "customers" to be acquired.

This report is worth the download and it's worth sharing with your nonprofit management and board of directors. Bunnie

The 2009 Getting Attention Tagline Report

by Nancy Schwartz, Getting Attention

Nonprofits have a major branding problem in weak taglines. Taglines are the best way to succinctly convey nonprofits' value, but 7 in 10 nonprofits rate their taglines as poor or don't have one at all.

The just-released 2009 Getting Attention Nonprofit Tagline Report, based on 1,700 2009 tagline award entries and recent survey responses from 1,900 nonprofit communicators, shows that most nonprofits don’t have an organizational tagline that works to make their organizations’ value clear, and easy to remember and repeat.

A highly-effective nonprofit tagline model (and one of the 13 winners of the 2009 tagline awards) is "Because the earth needs a good lawyer" from Earthjustice. Earthjustice capitalizes on what people do understand–-that a lawyer protects rights–-and uses that framework to dramatically position its role and impact in the environmental movement. And it does so with humor. If your tagline makes people smile or light up, without stepping on your message, then you’ve made an emotional connection…Bravo.

A strong tagline complements your org's name to convey its unique value or impact with personality, passion and commitment. If you fail to make the most of your tagline, you throw that opportunity away.

Dig into this free updated guide to learn:

Why a Nonprofit’s Name Isn’t Enough

How a Strong Tagline Benefits Your Organization – Useful for developing support among colleagues and leadership

The 10 Have-Tos for Successful Taglines

Using Words that Work

The 7 Deadly Sins, 9 Snores and 5 Best Ways to Antagonize Your Audience – What not to do

Research, Create, Revise, Test, Repeat – The right steps to take to craft a potent tagline

Over 2,500 Nonprofit Tagline Examples to put to work for message brainstorming.

Download the 2009 Nonprofit Tagline Report here

You can contact Nancy at http://www.gettingattention.org/nonprofit_tagline_report.html

Should Grants Be Your Only Source of Income?

Very interesting numbers Jenai Morehead, of The Foundation Consultants, provides on how nonprofit income is generated. Diversification is the key, in my opinion. Putting all your eggs in one basket is risky business. It's amazing that program services revenues lead the way. Look at your income and ask which income streams can be increased. Given that program service revenue is such a substantial part of nonprofit income, ask what your nonprofit is doing in that area. Thanks Jenai for the excellent breakdown! Bunnie

Should Grants Be the Only Source of Your Income?

by Jenai Morehead, The Foundation Consultants

Grants are wonderful. They assist in providing money that nonprofits need to serve their clients.

My first grant, many years ago was $1,000. We used it to buy bus tickets for our homeless clients. After the bus tickets were purchased the clients were happy and the grant was gone in no time. The program was run very well. We started making a good name for ourselves and exceeded our own expectations. Immediately, I saw that running a program meant that we were going to need more funds to sustain ourselves. Now what are we going to do?

This is a challenge that many nonprofits face every year they are in business. While grants are an excellent source of income they cannot be your only source of funding. Even in a good economy grants are finicky and cannot be guaranteed. You should plan to have other sources of income that line up with your purpose.

The Urban Institute (http://www.urban.org/) puts out a variety of annual reports that give us information about where public non-profits get their money:

• In 2007, public charities reported over $1.4 trillion in total revenues and nearly $1.3 trillion in total expenses. (Source: The Urban Institute, National Center for Charitable Statistics, Core Files 2007)

• Of the nearly $1.4 trillion in total revenues, 22 percent came from contributions, gifts and grants and 67 percent came from program service revenues, which include government fees and contracts. The remaining 11 percent came from "other" sources including dues, rental income, special event income, and gains or losses from goods sold. (Source: The Urban Institute, National Center for Charitable Statistics, Core Files 2007).

Contributions and gifts are usually comprised of the money or items from private donors who are the people that support you with cash, clothing, cars, furniture or art. Grants are primarily cash given by foundations, government or corporate entities to support your nonprofit activities.

Program Service Revenues are services which your clients must pay for. An example may be lower rates for counseling services.

Income from Government fees and Contracts cover areas in which your non-profit earns income while performing a service for a city, state or federal government entity. Many nonprofit educational institutions raise funds through work in the areas of research or training.

An example of raising funds through Dues is your local YMCA. The YMCA provides a service to the community and raises income from its child care services, fitness club and health classes.

Rental Income is a source for nonprofits who specialize in low-income housing in which the tenant pays rent according to federal income guidelines.

Special Event income is raised at occasions like Christmas galas, banquets, marathons and walks such as “Breast Cancer Walks.”

Gains and Losses from goods sold is income generated from nonprofits who sell used/donated items such as Goodwill or Salvation Army. The gains from these sales are then used to support their mission and goals.

In contemplating fundraising, make a list of all of your resources and use them wisely. For example: You may have a lot of volunteers; sometimes utility companies or local governments need to get the word out on programs and changes in laws that affect their regions. This might be the perfect opportunity to get creative with your resources. Find niches that are not served. Leave no rock unturned.

Be relentless in your search for opportunities that will be win-win matches for your nonprofit.

Be careful to work within your non-profit mission and purpose. The last thing you want to do is to cause the income you raise to be taxable by doing activities that have nothing to do with your nonprofit mission. If you have questions about income generated from your charitable activity contact the IRS charitable division and find out their guidelines.

Above all, have fun doing your fundraising activities and always keep focused on the people you are helping with the funds you are raising.

A Value Menu for Your Non-Profit

More than anything else, when it comes to fundraising, you've got to think like your donors. Besides their charitable giving to causes they believe in, what is their "bottom line?" Adam Miller makes some interesting observations and brings up a point: how many nonprofit CEO's or board members really understand how tax laws work? That's a question for your next board meeting! Bunnie

A Value Menu for Your Non-Profit

Connecting with donors to improve their bottom line… and yours.

by Adam Miller

I love watching folks order from the value menu at fast food restaurants. Fast food chains are competing for business in a difficult economy. They are promoting the value of their food and calling hungry customers to action. I believe they are on to something; it seems like more and more folks are piecing together meals that can be paid for with spare change.

How are you adding value for your key donors? How are you calling them to action? Most key donors are already passionate about your organization. They are already giving and they don’t need a sales pitch. Instead, you may be able to sweeten the deal and build a relationship by presenting them with a menu of options that will add value.

You can do this by understanding how your donors are taxed and working with them to give more effectively. If you save them money by allowing them to give more to your organization, you have succeeded. Their finances are better because they did something they were passionate about.

Understand charitable donations. Folks give in different ways and from different sources. Here are a few basics on charitable giving:

Checkbook Philanthropy. When a donor writes a check, they are using after tax income to support your organization. If you are a tax-deductible organization they will receive a deduction at the end of the year which will reduce taxable income… maybe! In order for this to help, your donors must itemize on their tax return. According to the IRS, only about 36% of tax returns for individuals and families are itemized.

Appreciating appreciated assets. In this economy, it is difficult to discuss assets that have gained in value. This sort of conversation with donors at the end of 2008 may have gotten you laughed out of the room. Despite how things feel in this economy, many Americans still have securities and real estate that has appreciated. If they were to sell these assets they would owe capital gains on the appreciation. If your donor bought stock at $1 per share and sells at $10 per share, she owes capital gains tax on the $9 of taxable gains. However, if she were to gift that $10 stock to your organization, she gets a deduction for the entire $10. Remember, she only paid $1. As icing on the cake for your donor, she no longer owes the capital gains tax because she made the charitable contribution. Your donor supported your organization, got a full deduction, and did not have to pay the tax on capital gains. She has saved money.

Let them leave a legacy. What would happen if your largest, most consistent donor passed away tomorrow? How would it affect your budget? If your donors are passionate enough to offer support during life, perhaps they would be equally passionate about supporting your organization after they are gone.

There are many ways to go about this. It can be as simple as adding your organization as a beneficiary on an investment account. Some donors opt to create charitable trusts, donor advised funds, or participate in charitable foundations. These options offer flexibility and can allow donors to receive a deduction now, remove assets from their estate, and support your mission long term.

Don’t get overwhelmed, get help. You are probably a bit concerned at this point, feeling like your role in the organization just got bigger. There is good news: you don’t need to know everything about taxes, deductions and charitable giving to be effective. Instead, consider partnering with folks who are passionate about your organization, and who know their stuff when it comes to taxes. Seek out financial advisors, accountants, and attorneys, partnering with them to educate donors. You may find a few of these professionals are already a part of your donor base.

Tax laws are constantly changing but professionals in your community can keep you ‘in the know’. Ask these folks to look for tax changes that may benefit your organization and act as a call to action for donors. Use each opportunity to present a newsworthy new addition to a robust value menu.

You are beginning to look like a super-hero. You are connecting with folks that are passionate about your organization and you are adding value by saving them money. Congratulations!

Adam is a Candidate for CFP® certification, a trusted fiduciary and fee-only financial planner at Elderado Financial. He works passionately to help families pay less in taxes and give more to the people and organizations they care about.

The Making of “I am a Technical Woman”

I always enjoy having Jerri Barrett write for Nonprofit Conversation. She brings great insight on how to use, really use, technology to advance one's nonprofit. In addition to other things I do, I also do media distribution for government agencies and nonprofits. I get videos placed on hundreds of Public, Educational and Government (PEG) access television channels around the country. The videos air for free and that air time is worth millions of dollars to my clients.

I can't tell you how many government agencies and nonprofits have videos sitting on their shelves and aren't distributing them. What good is it to produce a video for internal consumption? Jerri tells you how to make your video go "viral." Enjoy. Bunnie

The Making of “I am a Technical Woman”

By Jerri Barrett, Vice President of Marketing, Anita Borg Institute for Women and Technology

Two years ago (2007) I attended my very first Grace Hopper Celebration of Women in Computing (GHC), which is put on by my non profit – the Anita Borg Institute for Women and Technology. It being only my second week on the job I was amazed by the incredible diversity of the women present at the conference – young and old, all races, and representing over 23 countries and almost all 50 states that year. But what really captured my attention was how happy everyone was. This was a technical conference, with a strong professional development component, but a technical conference nonetheless. Why was everyone so happy? My marketing mind at that moment told me that I needed to find a way to capture this feeling.

Months later as we were planning the 2008 GHC I proposed the idea of a video booth with a professional film crew. We needed professionals because the previous year’s team of volunteers and staff had accidentally overloaded and fried the inside of our video camera. We did get our footage but much of it was grainy or too dark to use. The film crew happened, thanks to a sponsorship by SAP, and we made a plan. Everyone that the film crew interviewed we captured saying I am a technical woman.

Once we completed editing all the footage we had over 99 instances of women saying I am a Technical Woman, computer scientist, etc and we had men saying I support Technical Women. Finally the video was completed.

The next step was the challenge. we had created this simple video and we wanted as many people in the world see it as possible. So I created a multi stage launch plan for the video involving both traditional media through our public relations firm and our communities (Facebook, LinkedIn, Twitter). Once I’d shown the video to my colleagues it was agreed that it would be shown at the 2009 GHC on the morning of the first keynote session. Most of our attendees would be gathered in the room to see the Keynote speaker. Simultaneously a number of things would happen:

The video would be introduced and shown to the audience of 1600 women. In the introduction to the video, I encouraged everyone in the audience to twitter about the video and direct people to our website where it could be viewed. The video was launched on Youtube and embedded in our website. A press release was launched as the video was being shown with a link to the video embedded in it. The press release and link were posted on Linked In and Facebook the same day. Teachers attending a K12 Workshop hosted by Anita Borg Institute, CSTA and The University of Phoenix all received DVDs of the video. On our website we offered downloadable versions of the video so that people wanting to show it at a conference wouldn’t have to stream it.

The results have been amazing:

1. The video has been viewed over 6850 times on Youtube.
2. The video has been downloaded from our website over 217 times to over 26 countries
3. When we launched the video over 700 people twittered about it in the hour after it was shown.
4. Over 40 different bloggers shared the video on their sites in the first month after launch
5. Numerous friends of ABI posted a link to the video on their facebook page.
6. The video has been shown at conferences in Japan and Australia.
7. The video is being shown in classrooms across the country.

My favorite outcome was from a co-worker who sent her 7 year old to school with the video. The response back from the second graders – I didn’t know that technical women could be so cool.

The question now is – how do you define a viral video? For me the definition is whether it is having an impact and people are sharing the video. In both cases that is a definite yes.

So please watch the video and let me know what you think about it. And be sure to show it to your daughters.

Guerilla Tactics for Membership Renewal

by Bunnie Riedel, host of Nonprofit Conversation

When I was younger and had no money, I would buy things on “lay-away.” You’d put a little down and then make payments but not get the product until it was paid in full. I got my first set of dishes that way, a little bit at a time. For the last twenty years, lay-away hasn’t existed but now with the economy in a slump, lay-away is back at some of the large stores.

In thinking about membership, so many organizations have lost members and are trying desperately to get them back. However, I have also seen a rigidity among nonprofits when it comes to membership dues and structure. Some nonprofits aren’t really understanding that doing business as usual will only continue to cause their membership numbers and dollars to fall. In normal circumstances, even when the economy is fabulous, nonprofit membership churn (or turnover) is roughly 20%-25%. In shaky times that number goes up by quite a bit.

Here are some ideas I’ve been noodling on lately:

Assess your current membership demographics. Where have you lost members? Are there certain types of people that are not renewing? Is there a way to bring them back by tailoring membership to their needs? For instance, let’s pretend that your organization is the National Tennis Enthusiasts Association (NTEA--a completely fictional association). Do you really know who your members are? Have you done demographic surveys of your membership?

Let’s pretend you have done those demographic surveys and you find the following:

20% of your members are under eighteen.
25% of your members are nineteen to thirty-five.
25% of your members are thirty-six to fifty.
30% of your members are over fifty.

Approximately 40% of your members are female and 60% of your members are male.

75% of your members live in suburban communities and 25% of your members live in urban areas.

Now cross-reference: How many of your under eighteen year old members are female or male and how many live in suburban communities vs. urban areas.

And, what percentage of those sub-groups have you lost?

You see that you’ve lost 30% of your under eighteen year old female urban area members. What can you do to appeal to them? Could you create an online community directed at them, with the latest news about young urban female tennis champions? Secure discounts on equipment and clothing? Offer “buddy” membership where two can join for the price of one? Host a “Young Miss” event in their city? Have a tennis camp scholarship contest for members only?

Now you also see that you’ve lost 40% of your suburban male over fifty members. What strategies can you think of to reclaim that demographic? It certainly won’t be the same as you would use for the under eighteen year old urban females. The point is: if you lump all your members together in one big group without taking into consideration their unique qualities, you will continue to lose membership or at least be challenged to maintain members.

Assess your membership dues structure. What is the cost of membership? Has it remained constant over the last few years or gone up? I know of an organization that recently raised its membership dues, and I think that’s insane, given the economy. Now is the time to look at your membership dues and think about putting them “on-sale.”

But we’ll lose even more money!

I don’t believe you will. People are looking for bargains and looking to cut back on their expenses. You will gain more members if you discount your membership dues. Also, think how you can market the discount.

“We know that the economy is slow and we decided to lower our membership dues to make it easier for you. We don’t want you to miss having your member benefits.”

If you took 30% off your membership dues tomorrow what would that look like? How can you market that to members you’ve lost? Is there a “volume potential” for your organization?

For seriously lapsed members (say a year or more) think about providing them membership at half-price.

Find value-added partnerships. I just received notice from an association telling me that I can now buy at a significant discount at an office supply store because I am a member. What products do your members use all the time? Perhaps they need a discount on liability or theft insurance. Perhaps they need certain types of equipment. Maybe they need discounts on airfare. Once again, conduct a short survey. Ask your members what they need and then find a supplier or retail partner that will give them substantial discounts just because they belong to your association.

If I see that over the course of a year my membership will save me $300 through discounts, and that $300 more than pays the cost of my membership, then I have a strong incentive to become or remain a member.

Provide a payment plan. Just like lay-away, except your members get their product up front. My heating and cooling maintenance providers just sent me a notice saying we can pay for the service in “3 easy payments.” Could you offer your members “3 easy payments?” This could certainly affect your cash flow and how you budget, but isn’t that better than not getting the membership?

I heard an organization advertise that you can join them by making monthly payments. So instead of it costing $120 per year, it now costs $10 a month. That makes it much easier to swallow. Of course the best way to do this is to set it up as an automatic withdrawal from their bank account. That’s the way my gym does it.

Make sure you are providing value. If you are losing members right and left, maybe it’s time to think about your organization’s “value.” Not only are people spending less but they are also demanding high value in the things they buy. What is your value? How are you competing with other nonprofits of similar size or mission? Why should anyone join your organization? You can’t ask for membership dollars and then not deliver a product. If people don’t see any advantage in sending you money, they will stop sending you money.

I hope that this has given some of you food for thought. And I hope that all of you achieve and succeed in your membership goals!!!

Connection Generation: A Review by Bob Crawshaw

I liked this review by Bob Crawshaw's because Iggy Pintado's book and his categorization of how people behave when it comes to technology is informative for Nonprofits. I think we always have to be considering where our membership or constituents are in regard to technology. That can be somewhat easier said than done. Take for instance the case of the Anita Borg Institute for Women and Technology; it's probably a good bet that their membership leans more toward being Active or Super Connectors, and that fact drives how the Anita Borg Institute develops their programming. However, let's say your target constituents are low-income or rural (without access to solid broadband), you are going to have to employ more low tech strategies to reach them and that will impact your programming. It might be worthwhile to conduct an online (or mail in the case of the low tech constituents) survey to find out what your members or constituents technology capabilities may be and what their attitudes are toward technology.

I recently conducted a mail survey for a rural county and we discovered what we had suspected, that a majority of households have only dial-up and beyond simple email cannot download any photos, videos or rich text. This poses quite a challenge to Nonprofits trying to serve that area. On a final note, isn't that little kid and his t-shirt just adorable? Bunnie

Connection Generation: A Review by Bob Crawshaw, Maine Street Marketing

I have just finished reading the recently published book Connection Generation.

Iggy Pintado, a former IBM and Telstra heavyweight, looks at how Australians are taking to new communication technologies and their impact on our personal and professional lives. The book is a clear, simple read and valuable for those after fresh insights into how people are using social media.Pintado starts by identifying a number of "connector profiles". These are drawn from his own extensive marketing experience plus personal research he undertook for the book. He claims Australians - and this probably applies to those elsewhere - fall into one of five categories when it comes to using new media:

Basic Connectors are people with low levels of technological take-up. They can be any age but are united by their disdain or fear of technology. They need to be thoroughly convinced that new communication platforms can improve things and it often takes a tech-minded family member or friend to guide and encourage them to venture into online media.

Passive Connectors have a basic understanding of the new technologies but choose not to make it a priority in their lives. When it comes to online action they observe rather than participate. This is hardly surprising because many people in this category have traditionally consumed passive media such as print, radio and television. In marketing terminology they could be classed as the "late adopters" in the digital era.

Selective Connectors understand new communications technologies and use it to share experiences and maintain their family, friendship and business networks. However they stop short of expanding the range of their connections which limits their ability to take advantage of business and other online opportunities.

Active Connectors appreciate and use the new technologies to develop and maintain contacts, assertively share their thoughts and routinely use platforms such as Facebook, Twitter and Linked-in for commercial and personal benefit. They are the marketing equivalent of "early adopters", people willing to try new things and take on fresh thoughts.

And finally there are the Super Connectors. These folks are digitally light years ahead of the rest of us and on the bleeding edge of technology. For them an online life is as fundamental as using running water or electricity.

These categories may define groups but they do not necessarily limit people. It is possible for individuals to move from one group to another as their circumstances and interests change.

Perhaps Basic Connectors are the most digitally vulnerable because the trend is for Australians to increasingly go online to connect their lives and that sea change is unlikely to reverse anytime soon. And what exciting times we live in when initiatives such as the Australian Government's National Broadband Program, the schools laptop program and first stirrings about Government2.0 have the potential to transform us into Australia's first connection generation.

Contact Bob Crawshaw at http://www.mainestreet1.blogspot.com/

Charity Accountability Standards: How Do You Measure a “Good” Charity?

My husband will not give money to a Nonprofit until he has looked them up on Charity Navigator. Ken Berger, President of Charity Navigator gives us a glimpse into how charities are not measuring their outcomes. I was a bit shocked at the numbers (even if they are hypothetical), but even in my own experience, I would be willing to lay money on those numbers being fairly accurate. This piece is a good lead-in to a blog I am working on about "horror stories" in the Nonprofit sector. Stop right now and ask yourself "How do we measure outcomes?" If you don't have an answer, it might be time to start creating a system. Bunnie

Charity Accountability Standards: How Do You Measure a “Good” Charity?

by Ken Berger, President and Chief Executive Officer of Charity Navigator

We have surveyed hundreds of charities across all causes to determine what data is compiled in this area of outcome measurement. We also intend to use the information to help us in developing our system. If there are some universally agreed upon outcome measures in a particular category of charities, it could help inform us on good standards. We assumed that most charities have SOME system of evaluating their outcomes. We were wrong. So far, only about 10% of the charities we have polled were able to provide us with information in this area. Furthermore it is likely that, of those that measure their outcome, a much smaller subset can prove from the data that they have truly meaningful outcomes.

We recently met with a colleague who funds organizations who can provide him with evidence of effective outcomes. He is getting similar results. The scary reality, he suspects, is that most charities (the overwhelming majority) have not even taken their first step down the outcome road. A couple of other experts with whom we have bounced this around have corroborated our findings.

We know that day-to-day survival mode is often the overriding focus and concern for most charities. In the current economic climate that reality has only intensified for most charities. So the lack of focus on outcome measurement is not likely to change any time soon, unless there are outside forces that demand it and resources that facilitate the process. We continue to assume that the larger agencies may be compiling this information, but may be reluctant to make it public. Even if this is true, only 4% of all charities have annual revenues in excess of $10 million. So our suspicion remains that the vast majority of charities are doing very little or nothing in the area of outcome measurement.

We think that the experts, foundations and charity advocacy groups are going to need to educate government policy makers and the general public about the significant importance of publicly available outcome measurement information before this situation will change. All grants, whether from government, foundations or corporations, should include a percentage to fund outcome measurement.

Why is this so important? We believe that an outcome driven culture is vitally important for a charity to be at its best and to be trusted. With all of the scandals and lack of confidence in charities, objective data will become more and more important in the public's perception of a charity's ongoing legitimacy. In such a climate, it's scary news that most charities probably are not measuring and documenting their outcomes.

HOW MIGHT CHARITIES RATE ON OUTCOMES?

Note: This is entirely hypothetical from discussions with experts and anecdotal information

2% **** Excellent
9% *** Good
23% ** Needs Improvement

36% * - Poor
30% 0-Star Exceptionally Poor

Nonetheless, we are going to continue down this road and implement an outcome measurement system once we are confident it contains the right elements. We will also be a voice for the importance of outcome measurement to whoever will listen! However, I now anticipate that whenever we begin to evaluate charities on outcomes (probably no time soon), most will not do well, if for no other reason than that they are not documenting what they are doing.