Impact of Mission…

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This past weekend I was doing a lot of thinking on the long road from Saint Louis to Chicago – five full hours of blissful thinking time – and I was thinking back to a previous blog post regarding how nonprofits need to focus more on the changed lives and the impact they are making in the world and less on the financials.

More precisely, I was lamenting how many people in the nonprofit field don’t “measure” the success of their organization by the impact it’s making but rather by how much they raised and how much of that money gets allocated to “program” or “ministry”.

A lot of this mindset is exasperated by the Form 990 process and the heightened scrutiny of both donors and the proliferation of charity rating systems such as Charity Navigator. Simply put, people in my opinion are fixated on financials and not on the “impact of mission” or the lives being changed in a positive way.

This is a problem because there are plenty of nonprofits making a huge impact that have what may appear to be poor financials – and at the same time there are nonprofits that look good on paper but aren’t making nearly the impact that donors believe they are making.

Consequently, many of us in the nonprofit sector live and die by Charity Navigator ratings and the infamous pie chart in our annual reports and on our website showing the three broad buckets which include administration, program, and fundraising. And we try to ensure we have good ratios and a four-star rating so that we look good when compared to our peers or others that are competing for a donors hard earned money.

Well, instead of this approach, what would it take for us to figure out a way to measure and highlight – in an analytical way – the impact the nonprofit is making?

In other words, demonstrate in some compelling fashion just how effective the nonprofit is at fulfilling its stated mission – which in some shape or form has to do with lives being impacted in a positive way.

It seems to me  that this should become the primary basis for measurement – not just financial success.

So in my blissful driving state I came upon an idea. Why don’t we downplay financial measurements and instead play up IOM – Impact of Mission. It seems there must be a way to do this. I don’t have the exact answer, perhaps you do.

But more importantly, we need to begin to change the minds and hearts of our donors so they focus more on how lives are being changed with the money raised and less on a formulaic financial reporting approach, which albeit is a government regulatory requirement, that only highlights part of the picture.

Let’s begin thinking of how to do this. No one is going to do it for us. It’s going to take a grassroots approach – perhaps by a large and influential nonprofit.

Any ideas?

What is your Decisive Moment?

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Many of you may not know this, but I was a commercial photographer in an earlier life before my foray into the nonprofit world over ten years ago – making my living by taking pictures for national advertisements in collaboration with advertising agencies and publishers.  It was a great time for sure, for both myself and my family – and I felt inspired during those years, and continue to be inspired, by one particular photographer named Henri Cartier-Bresson.

He is simply the best there is/was. He inspired many before and many after me. He took photojournalism, and the art of photography itself for that matter, to a new level. But what he is most known for is what has been coined – The Decisive Moment.  But rather than me explain what that is  let’s listen to how Henri Cartier-Bresson describes  it in an interview in 1957 –

“Photography is not like painting,” Cartier-Bresson told theWashington Post in 1957. “There is a creative fraction of a second when you are taking a picture. Your eye must see a composition or an expression that life itself offers you, and you must know with intuition when to click the camera. That is the moment the photographer is creative,” he said. “Oop! The Moment! Once you miss it, it is gone forever.”

It’s that special “fraction” of a second that is so important. It’s that simple, fleeting moment that when captured “makes” the picture. The DNA of the photo, the personality of the photo is captured in that “decisive moment”. Look at Cartier-Bresson’s photography and you will understand that it’s that particular moment in time, not the moment before nor the moment after, that is the critical point in time that matters above all other moments. That moment never existed before and never will exist again. Period.

So what does this have to do with fundraising?? Good question, one I thought you would never ask. Well, let me assure you  there is a correlation.

In fundraising we often say we need to provide the right message, at the right time, to the right audience, through the right medium…  Could there be a more Decisive Moment in time for fundraisers? Well, for us fundraisers there really isn’t. So whether you are doing fundraising through direct mail or through the internet or through major gifts solicitations, or perhaps all of the above – the magic happens when you actually line up all your efforts to that decisive moment in time that simply works… you know those times – those times when the personal donor visit and  ”ask” went exceptionally well, or the direct mail and online appeals hit the homes and resonated with the donor in such a profound way that giving went through the roof, or when the major gift officer worked the “moves management” process exceptionally well .

Those are the moments we need to strive for.

No, its not easy to say the least. But As Henri Cartier-Bresson did, you must hone your skills and craft over time and develop a keen eye/intuition as he did, for what works at what moment in time. This is the art to the science in fundraising that can’t be overlooked. So, see you are an artist after-all!

Good luck!

 

The Donor Centric Organization

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Why and what is a Donor Centric philosophy?

Unless you have been completely out of touch with reality the world has changed over the last several years. It just isn’t the world we grew up in and the game has changed significantly – globally, domestically and locally – not just for for-profits but also for nonprofits.

The donor’s choices have increased, their expectations have increased, and their access to information about your nonprofit has increased.

In the process of all this change putting the donor at the center of everything we do has become critically important. The donor’s choices have increased, their expectations have increased, and their access to information about your nonprofit has increased. And Social Media, along with its viral nature and ability to disseminate a message (positive or negative), has grown tremendously. simply upping the ante. We the company or nonprofit are no longer in control.

Recently, a passenger on a Virgin flight from Mumbai to London was confronted with a poor dining experience so he decided to write a letter to Sir Richard Branson (along with color photos) detailing his displeasure with the food as well as the entire experience. This letter, which was written incredibly well, soon went viral. But not viral on the travelers behest but because Sir Richard coined it “the best customer complaint letter ever written” and personally called the complainer to discuss it. He played it up! and used it to reinforce the brand he has crafted over the years – a bit irreverent yet totally focused on the customer.

What an example for all of us…. not to shirk away from a negative response but to embrace it and recognize it for what it is – an opportunity to make a service better and to turn a dissatisfied customer into a happy customer!

So as nonprofit professionals we can no longer treat our supporters as a “number” or worse, as an “ATM machine”.  Donors  need to know we care about them as a person and that we count on them not just for financial support but as true advocates of our cause. We want satisfied and content and loyal “customers” just as Sir Richard does. That’s how succesful businesses are made, fostered, and grown.

So keep in mind that The Customer is King!

Although this phrase was coined by John Wanamaker almost one hundred years ago very few organizations have been able to adopt it as a driving force. According to a study Accenture conducted in 2000, an entire organization must become obsessed with what the donor wants because there is a direct correlation between excellence in a company’s overall interaction with its customers and the overall financial performance of the company. Wow – that’s quite a statement. If we become obsessed with a donor and their involvement with us our financial performance increases.

When you’re operating in a commodity and/or extremely competitive industry, you have two choices. Either create a new/innovative product or service that takes you out of commodity/competitive status, or differentiate on service.

I propose that you differentiate your nonprofit based on exemplary service and a uniqueness to your brand just like Virgin Atlantic.

Will the Japan earthquake and tsunami affect giving?

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The question on everyone’s mind is will the recession and global events such as the Japan earthquake and the tsunami affect your nonprofit in a negative way? The world seems to be unraveling doesn’t it?

Consequently,  there is the possibility fundraising initiatives will be compromised by the uncertainty in the world brought on  natural disasters in conjunction with the insecurity of the financial markets both here in the US and abroad. It seems that every day there is news that is either unsettling or downright depressing. All of which fuel uncertainty and a desire to hold onto one’s hard-earned money. Insecurity and fear are quite compelling reasons to change habits – and nonprofits can be dramatically affected by this fear as people reduce or stop their giving routines.

Typically nonprofit supporters give from their excess, not in all cases but definitely for the average giver this holds true, and  in the end, they give to their favorite nonprofit when it won’t hurt their personal circumstances too much. This is human nature. And we in the nonprofit sector need to understand this.

But we also have to acknowledge that services can suffer when giving declines. And if you are a nonprofit that is providing human services overseas in areas affected by the Japan earthquake and tsunami you need to be ready to present a very compelling reason why someone should part from their hard earned money. You must clearly state what you will do with the donor’s money and how you will impact lives because when times are tough people want to know their money will be put to good use.

So, explain your need clearly, share the sense of urgency, and articulate openly how you will impact lives. And don’t forget to share the results accomplished as a result of the donor’s gift!

In addition, people support winners and organizations that handle the funds they receive in the most effective, honest, and efficient way. Don’t overlook this. People will always turn towards the tried and true organizations they can trust – especially when there is economic and global uncertainty as we see today.

So you should consider putting transparency and accountability issues front and center in all your marketing and fundraising efforts as well. Let people know exactly how funds are raised, allocated, and spent. And most importantly, make sure you are clearly articulating the successes of your efforts by informing your supporters on a regular basis of the great work you have performed with the hard earned money they donated – often sacrificially.

Good luck!