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There’s been a lively debate underway in the Chronicle of Philanthropy about whether about fundraisers are “selling” a product. Putting money at the center of the development relationship taints the process, argues veteran fundraiser Jennifer McCrea in her Exponential Fundraising blog. Yet the notion of “selling” shouldn’t be a dirty word because it solves problems and meets needs, counters Sasha Dichter of the Acumen Fund.

I brought this up the other day with an MBA graduate and trustee of a university planning a new capital campaign. His reply: “In the business world, we say, ’you don’t get what you don’t ask for.’…People are scrutinizing their philanthropic choices more than ever before. I don’t know anyone who isn’t looking more carefully at these decisions.”

In this economy, with greater competition for less money, many fundraisers are seeking coaching in sales skills for more focus, faster results and higher yields. Not only that, but another article in the Chronicle of Philanthropy says that people skills are no longer enough for fundraisers to be successful. The market is calling for fundraisers with multiple talents to compete for donations in a changing marketplace.  Note the use of the word “compete.”

As a fundraising marketer, and, yes, that’s what I admit to, my job is to persuade donors and potential donors to invest in the causes I represent. A donor I interviewed at another institution a few months ago made it very clear that he would rather have a business plan than a so-called case statement. Why? Because development writing has earned a bad rap as a ”feel-good” document designed to tug at emotional loyalties rather than also sell a product.

That soft style is not going to cut it any longer, as economic discipline has forced more rigor in fundraising. Increasingly donors want to hear about an organization’s strategic plan, its technology infrastructure and the other administrative pillars as proof that the institution is going to operate like a business and manage and invest philanthropic dollars smartly and strategically.

Today’s fundraising case for support must develop the business case for investment. I thought Sally Patterson nailed it well last fall in “Creating a Case for Sustainability” in Advancing Philanthropy. She wrote that the case statement must convey that an organization has all the essential elements to survive — and that it has taken steps to ensure its long-term viability.

Donors have competing demands for their time and their money. They are often loyal to many organizations. They are bombarded with social media, email, get-to-know-you breakfasts and high-level dinners. Their time is valuable and they don’t have a lot of it. These donors have many options today, and they need to be sold. Case statements must anticipate the arguments that fundraisers must have when they are meeting face-to-face with prospects. Such documents are useless if they are merely internal wishlists or descriptions of what you do. Nonprofit consultant Tom Ahern made that “case” this week at the annual Association of Fundraising Professionals conference.

Fundraising is one of the most visible marketing tools an institution has — and the case for support must provide the persuasive roadmap. The best case statements are market-focused — credible and logical, realistically assessing current challenges and providing an aspirational vision of future possibilities. They give donors the information they need and they speak to the values they hold.

Too many case statements simply don’t make the case in this competitive fundraising environment – and waste time, money and, ultimately, opportunity. 

Vision, implementation and change — these are the themes of a nonprofit’s case for support in a post-recession economy. So let’s not be timid about talking business. Donors who truly want to make a difference expect nothing less.

With increased focus on alumni associations as portals for support for university strategic priorities, Duke and the University of Virginia have come forward with best practice communications worthy of serious notice. Both elite institutions with significant endowments, in 2009 they wrestled with what Jim Collins calls “the brutal facts” that “great” organizations must face — and then provided a full accounting, and solutions, to alumni and other constituencies.

In my whitepaper last year on “Communicating Value During the Economic Downturn,” I cited Duke’s early wins at keeping alumni informed and thus generating credibility, understanding and greater support. The recessionary spiral, the whitepaper argued, became “a timely chance to communicate more and focus a lens on the organization’s value while donors, alumni, volunteers, employees and those receiving services are seeking facts and assurance.” 

A year later in Duke Magazine’s November-December 2009 issue, “Sizing Up a Smaller Duke,” the university followed through with more details of its challenging financial realities and, importantly, its proposed remedies. Duke kept the faith with its constituents by focusing a lens on difficult, yet thoughtful, steps to scale back its ambitions due to to decreased endowment and fundraising revenues. Institutions build greater trust and buy-in when they share their realities with us, especially through comprehensive approaches that are more sustainable than knee-jerk cost-cutting occurring at many higher ed institutions. 

In his last year as president of UVA, John Casteen is carrying a similar message around the U.S. in his regional tours. Speaking to alumni and parents in San Francisco in January, he talked about the belt-tightening in a context of continued growth and progress in the university’s $3 billion campaign. And with his 20-year view as president, Casteen previewed the university’s continuing challenges and ongoing recalibration with declining state support. (That visit, by the way, was followed up with a personal note from Casteen to every attendee.)

Today UVA’s 2008-2009 annual President’s Report arrived by email in a stunning high-tech electronic format with links, videos and slideshows — and a clear message from the president: “Using new technology allows wider circulation with lower production costs. For the first time, we can now send the report to every member of the University faculty and staff, as well as all alumni.” The contents contain lengthy financial details along with a forward look at “imagining our third century.”

While alumni associations ask, “do we still matter?,” Duke and UVA are offering some solid answers through their communications strategies. And what they are also letting their supporters know is that university strategic planning is once again on the front seat as institutions rethink how best to balance mission and market. UVA’s 2020 plan is already in process.

Two new studies provide new and compelling data about ongoing struggles to keep social media in the strategic marketing mix by nonprofits and corporate chief marketing officers. These reports confirm some trends I’ve observed recently with clients in university marketing communications and alumni relations offices – good ideas and technologies need appropriate staff and budgets to put them fully to work.

Coincidentally I also heard about social media fatigue from a couple of favorite bloggers. Here’s a quick summary of these recent cyber exchanges:

• A study by the public relations firm Weber Shandwick found that the vast majority of nonprofit organizations (88 percent) are experimenting with social media to engage key audiences, but a significant majority (79 percent) are uncertain of how to demonstrate social media’s value for their organizations. And, only half (51 percent) report active use of social media. In reporting on the study, the Association of Fundraising Professionals noted that  nonprofit executives are skeptical about social media’s ability to reach donors, media and policy makers.
• More than four out of five (84 percent) chief marketing officers (CMOs) allocate less than ten percent of their budgets to experimenting through social media and non-traditional communications channels, with more than half (55 percent) allocating just five percent or less, according to a study by The CMO Club and Hill & Knowlton, while the number of adult Internet users who have profiles on social networks quadrupled to 35 percent in 2008, from eight percent in 2005.

What I find most illuminating in the current conversations is the vital shift in focus to resources — people and budgets. It’s easy to get excited about new technologies and experiment at the front end, but the reality of sustainable implementation unfortunately seems to be more of a “Phase 2″ than a “Phase 1″ consideration. 

Of particular interest were these findings in the Weber Shandwick report: “With nearly 70 percent of nonprofit professionals projecting their 2010 communications budgets to remain the same or decrease compared to last year, finding the resources and expertise to implement social media strategies is a widely shared challenge. Fifty-two percent of organizations concede they do not have enough staff to manage their current social media outreach and almost two-thirds (64 percent) report that their organizations do not have social media policies and guidelines in place for employees and board members to engage appropriately online.”

University and nonprofit communications staff are smart, can-do professionals who often go the extra mile to meet expectations. Many of them have simply started creating social media communities through their websites as another service that adds to the many things on their plates. As these reports show, these staff and their bosses would be well-served to step back and assess their strategies for social media, its relevancy to the outcomes they seek and how they are going to provide the resources to keep the tweeting and friending going.

As universities and nonprofits look once again at tight budgets for the next fiscal year, here’s a plan of action for scaling social media practices in your marketing mix:

• Begin with assessing the needs. What are you trying to accomplish, and why?
• Determine the best tools for your organization, not other organizations.
• Decide what’s real: Who will do the work? Do they have the skills and the willingness? What will staff have to stop doing to tackle more active social media engagement? What will be lost if one communications tactic becomes a priority over the others?
• Cease looking at social media as activity that staff can do in their free time.
• Engage only in activities that can be done well.
• Put social media responsibilities and outcomes into annual workplans; integrate and measure their activity; resource them appropriately with people and budgets; reevaluate every 90 days.
• Consider phased implementation — start small, set expectations appropriately and ramp up as resources become available — or as the measurable results make a case for adding more social media support.
• Can volunteers be trained and used effectively to help advance social media activities?
• Equally importantly, assist communicators at all levels in learning how to manage up. Often their superiors don’t know the process or the best solutions and need wise counsel, even if it’s not what they want to hear about the latest trend.

And, if you’re still with me, here are some honest insights from bloggers Michael Stoner and Brad Ward about how they are scaling their own social media activity in the context of making smart business decisions.

Social media evangelists mixed it up with novices and skeptics over Twitter, Facebook and other new tools for business and nonprofit marketing at Women in Consulting’s (WIC) program in San Francisco’s North Bay area last night. The digital divide remains fairly wide — the early-adopters have impressive success stories while the reluctant and unconverted are too overwhelmed by time, resources, technology and cute (“tweeting”) jargon to get in the game.

Certainly there is impressive new research to fortify the social media charge forward (see the roundup below). But the them-us undercurrent isn’t helpful. Where persuasive data and strategic handholding might ease the resistance of some CEOs, marketers and other business and nonprofit executives, they can’t be clubbed into acceptance. These issues crystallized this week with noted blogger Seth Godin’s provocative rant that while “the marketing world has changed completely,” nonprofits are “paralyzed in fear” of change and thus squandering huge opportunities. His comments caused quite a healthy stir.

All brouhaha aside, the evidence is inescapable – social media is no longer a fad, and, perhaps more essential, it is valuable and necessary for business. We have to consider the times that we are in:

• This year more than 4 out of 5 online Americans have been active in either creating, participating in or reading some form of social content at least once a month, Forrester Research reported at the end of August.
• In 2009, there will be 18 million US adults who access Twitter on any platform at least monthly, representing a 200% increase over 2008, eMarketer reported last week. Usage will reach 26 million US adults in 2010, a further 44.4% climb.
• More than 8 in 10 management, marketing and HR executives responding to the July 2009 survey by eMarketer cited relationship- and brand-building as benefits of social media. Execs also considered social media a good tool for recruitment (69%) and customer service (64%), and 46% thought it enhanced employee morale.
• And as an example locally in San Francisco, Facebook is driving 5000 people a month to the new California Academy of Sciences, driving participation from younger age groups and leading to people to buy tickets and become ”fans” in other ways, according to Sorel Husbands Denholtz, a social media strategist for the museum, a WIC presenter.

Social media has changed the business of PR and marketing, forcing countless communicators to jump on a fast-moving train without knowing where they are headed and lacking solid preparation for the unfamiliar new territory, customs and language. ”Marketers need to restrain their often-innate impulse to sell, and join the more conversational culture of the blogosphere,” writes John Patella in CW Bulletin of the International Association of Business Communicators. “PR folks need to learn a new set of tools, look beyond the comfort zone of conventional—and vanishing—media and sift for opportunities in an ever-changing news landscape.” In other words, the new paradigm requires creating buzz and awareness by engaging and building a community, and once trusted, reaping the rewards through sales or fundraising.

Having sat through numerous social media seminars and talked with many colleagues and clients, clearly the biggest hurdle for the plunge into social media is how to get started. Next is the equally significant challenge of implementation — investing the expertise, time and resources for success over time. Although many of the tools are free, easily accessible and scalable, let’s be honest — applying social media to organizational communications takes vision, people, time, common objectives and commitment. It’s not about sitting around and letting things “happen.”

The evangelists can advance their cause by offering more intuitive counsel and less hype to those genuinely seeking guidance and answers. The incessant patter of geekdom distractions is diluting their powerful message. [Are there 300 million people on Facebook? But there are only 133 million registered bloggers. Well, are we talking about populations the size of China, India and the U.S.? No, just Russia, really and more than two times the U.K.]

As in any marketing initiative, a thoughtful analytical process should occur at the outset to determine what behavior a company or nonprofit is trying to drive and to define the desired endpoints of social media initiatives. Then come careful scoping of multiple options, dedicated follow-through and ongoing execution. Let’s be further emphatic — social media to cultivate, grow and sell is not play, it’s a serious business of communications and relationship-building . And in this competitive environment, social media has advanced so far already that organizations must now turn to pros to make the most of the opportunities.

We also must yield to the wisdom and enthusiasm of the youthful prodigies, who are nipping at our heels, and rightfully so. As 16-yearold Internet entrepreneur Daniel Brusilovsky, Founder/CEO of Teens in Tech Networks, reminded our WIC audience rather bluntly, “It’s time to get connected. A new generation is coming in, and you guys have to let us take over.”

To my clients and colleagues, I say, alrighty then. The brave new world may feel real uncomfortable, but it’s definitely time to develop our social media IQs.

Social media and “killer content” held court today — once again — at Marketing Profs’ Digital Marketing Virtual Conference, the second one this year. Cruising through the sessions and booths at this information-loaded real-time experience is completely worth an all-day visit.

The statistics continue to accelerate — 60% of Americans use social media, according to Becky Carroll of the Petra Consulting Group and Michael Brito, social media strategist for Intel, in their presentation, “Building Customer Loyalty on the Social Web.” Of that 60%:

• 59% use it to interact with companies
• 93% believe that companies should have a social media presence
• 85% believe a company should interact with its audiences via social media

It’s remarkable how the social media buzz has changed from the “wow” factor to some serious long-term thinking. The experts have moved beyond their fascination with the cool tools and more thoughtfully into the durability of the social web for longer-term marketing strategies. In getting started, how’s a business to choose the best course of action? The marketing basics of relationship-building still count. ”Map out a strategy first, because the tools will change, and you want to be able to adapt to the next tool out there,” Carroll advised. “Believe it or not, Twitter won’t always be around.”

That’s really a solid point.  The Marketing Profs group certainly has its tactics well-mapped to an overall strategy: this virtual conference reportly has 12,000 registrations.

Another new study presented by Carroll and Brito correlates financial performance with ”deep brand engagement” among the Top Ten brands, such as Starbucks, Dell, Google, Yahoo and Intel. The take-aways here are that simply listening to customers without responding and taking action makes a business’ social media strategy not only ineffective but irrelevant. Social media marketing must create a real conversation, not just sell your brand. That means showcasing competitors’ good ideas, exchanging knowledge, being authentic and believable. Through that service comes credibility, and the most successful firms, small to large, have proven that credibility through social media leads customers to action — to buy.

‘Killer content” is a term that’s been refined, too. Think of it as engaging customers outside of particular transactions, noted presenter Kathy Warren, digital strategy-social media program manager for Hewlett Packard, and Kari Homan and Natanya Anderson of Powered, Inc., in another session. Killer content is something far different from messaging, demos and press releases.

Take HP’s online Learning Center, which they described as the “crown jewel” of the firm’s integrated marketing strategy. The interactive site drives brand loyalty and acquires new prospects through a learning environment rich in lifestyle content based on consumer needs and interests. The 115 content areas, tied to HP’s business objectives, are broken down into four categories: PC Security and Maintenance, Home Office, Digital Photography, and Microsoft Office and Adobe. Users create profiles and choose from a host of options — such as newsletters, customer insights and analytics, and social tools. Through this unbiased information, many customers eventually migrate to a purchase decision about an HP product, but that’s not the exclusive — or apparent — goal.

HP’s numbers tell the story of a successful Learning Center strategy:

• 22 million visits since 2004
• 1.3 million enrollments
• 92% would recommend the site to others
• 22% reported a purchase of an HP product
• 11% have stayed actively engaged since 2004

Among what the presenters called the “10 Commandments of Killer Content,” keep these priorities in mind:

• No infomercials — ever!
• Know and honor your audience and what they want to learn.
• Offer breadth and depth of content — keep it fresh and relevant but also some content that will have a long life.
• And here’s a really good one — listen to your customers and use that data to cut through organizational politics to make decisions about the content that will make them part of your community.

“Marketing Your Consulting Business” was a hot topic at the discussion I facilitated today at the Center for Volunteer and Nonprofit Leadership of Marin County. As a marketing consultant working with nonprofits and small and emerging businesses, I find that it’s a smart idea for nonprofit consultants to put the notion of “business” before “nonprofit” in their own positioning. That doesn’t always happen among experts passionate about service to others.

Using the fundamentals that I put before a Vistage International small business group a few weeks ago, I framed the discussion with this big picture strategy — “begin with the end in mind: where do you want to be in 1, 5, 10 years?” A few themes really resonated among the independent consultants, who included specialists in strategic planning, human resources, organizational development, facilitation, fundraising, board development, fundraising communications, grantwriting and leadership development as well as interim executive directors. Chief among them were these: (1) the bottom has not dropped out of the nonprofit market but it’s more essential than ever to leverage one’s niche expertise and (2) consultants with experience can help potential clients understand that skilled consultants are solutions, not problems, in today’s topsy-turvy economy.

The following Small Business Marketing Checklist that I typically use launched a lively discussion:

ü  Develop a plan that answers these questions:

§  Who are my buyers?

§  How do I reach them?

§  What are their motivations? 

§  What problems can I help them solve?

§  What content will compel them to purchase what I have to offer?

ü  Use your website or blog as the foundation of your marketing outreach:

§  A blog is easier, faster, cheaper and more search-engine friendly.

§  “About Us” is one of most important jobs of a business website or blog – explaining your purpose, introducing you to those who don’t know you and providing credibility.

ü  Choose your social media wisely and stick with what works for your niche, style, schedule, interests and business goals:

§  Research where your customers “live” and be visible where they congregate online.

ü  Create a  45-second elevator speech (and practice saying it) as your summary “mantra” that answers these questions in one sentence each. It should stress the benefits of working with you:

§  Name of business and focus

§  Description of ideal customers

§  Value-added or distinctive niche

§  Types of services

ü  Network like crazy:

§  Stay in touch with previous as well as current and prospective clients.

§  Join local and online groups to advance your knowledge, contacts and visibility.

§  Form strategic partnerships for projects and/or marketing.

ü  Monitor your competitors. What works for them?

ü  Focus on 2-3 techniques (traditional and new media) and build on them. Know why you are choosing each one and measure its progress. Reassess and recalibrate.

 ü  Recognize that the market for 2009 and beyond has changed and you may need to repackage your services. Be agile, revise your offering without losing your core strengths – and don’t be afraid to try something new!

Mobile technologies are the next-wave tool to create supporter-centric nonprofit organizations — from text messaging across generations from AARP members to youth and the solid 40 percent of US adults who use the mobile Internet. In 30 countries, there are as many mobile phones in use as people — and one-seventh of the world’s population will have a “smart phone” by 2012. So what’s in all this for nonprofits? Plenty, reported a panel moderated by mobile technology pioneer Benjamin Rigby at Fundraising Day 2009 sponsored by the Association of Fundraising Professionals’ Golden Gate Chapter on May 5.

Rigby’s latest venture, The Extraordinaries, delivers on-demand micro-volunteer opportunities to mobile phones.

The Mobile Giving Foundation certifies 501c3 organizations to conduct fundraising via text messaging in $5 and $10 increments. The American Cancer Society (ACS) recently piloted this tool by using announcements at basketball games to encourage audiences to “text to give” for its annual “Relay for Life” fundraiser. Lessons learned? According to Miles Orkin, national director of E-Revenue and Mobile Innovation for the ACS, it’s important integrate mobile giving options with existing campaigns using print and new media.

Cell phone giving in other countries is more active than in the US, so US nonprofits can now help constituents get comfortable with the medium. Mobile phone lists have to be built according to opt-in and non-spam standards just as email lists have been for online fundraising in recent years. The Obama campaign, of course, is the poster child for effectively harnessing mobile technology. According to the panelists, among the ways the campaign collected cell phone numbers was to invite supporters to send in their cell phone numbers to be notified by text message as soon as the Vice Presidential choice was announced. The campaign continued the dialogue through other opt-in messages, then incorporated these numbers into a customer relationship management database. 

There are many ways to build lists, said Matt Wilson, director of partnerships at Mobile Commons, one of the new crop of vendors for mobile advocacy and fundraising. For example, asking people to opt-in via Facebook and other social network sites. Because mobile giving technology is still fairly “byzantine,” however, a vendor can save an organization time and money in the long run, Wilson noted. The Mobile Marketing Association provides standards and best practices.

Leading staff, volunteers and donors through uncharted recession waters requires both new ideas and the tried and true. Here are “10 Mottoes” for campaigns in these challenging times from panelists at the Association of Fundraising Professionals’ Golden Gate Chapter Fundraising Day 2009 on May 4:

1. Affirm the mission — focus the case for support on service to the community.
2. Focus on best friends — keep in touch frequently and let them know how you are responding to the economic climate.
3. Involve donors — don’t stop asking for advice, gifts or connections to others.
4. Communicate the impact of gifts — report impact and momentum.
5. Ask donors to make your oranization a priority — ensure that your organization stays on their list and encourage their current giving levels.
6. Be candid about how your organization is conserving resources — talk positively about adjustments you’re making and eliminate less-productive activities.
7. Be flexible about how donors can give — provide options.
8. Focus volunteers and staff on what you organization CAN DO — cultivate, steward, identify new donors, raise visibility and engage volunteers in outreach.
9. Emphasize the lifetime value of donors — build and maintain relationships for the future.
10. Plan and adjust — be strategic, adjust campaign ending dates if necessary, scale priorities, possibly defer building projects — and stay the course for the long term.

Thanks to the insights of Julie Seewald Bornhoeft, Director of Development and Community Relations, WEAVE of Sacramento, CA; Lori Fogarty, Executive Director, Oakland Museum of California; Charles W. Sizemore, philanthropy consultant, of Palo Alto, CA; and Sandy Drew, Senior Consultant, Marts & Lundy Inc.

According to Sizemore, nonprofits that will best weather the economic downturn will also:

• Invest in keeping their advancement programs whole.
• Be proactive in meeting with current and prospective donors.
• Focus on donor retention in their annual funds.
• Show understanding of donors’ financial circumstances.

And they will help board members to understand the importance of their advocacy by:

• Increasing their annual gifts
• Being active in demonstrating organizational need
• Voting against decreasing the development office budget
• Teaming with leadership (president, executive director, head) and development staff to make calls on prospective donors.

Planned giving in this volatile economy has new-found potential for longer-term institutional investment and growth in nonprofit organizations strapped for cash in the short term. You can find the details and data in this metrics-based analysis, which I wrote with the planned giving specialists at Marts & Lundy, a leading philanthropic consulting firm.  Use the free login-in to access the indepth report, “Making the Sense of Planned Giving Metrics: Advancing the Dialogue About What Really Counts.”

The first comprehensive study of 33 donor management systems was released today by the annual Nonprofit Technology Conference – with comparative ratings for the top 10, detailed analysis of the top 12 and useful summaries of the rest. “Low-cost” means under $4,250 for the first year.

Funded by the Nonprofit Technology Network (NTEN), the two-part report is just the research that nonprofits desperately need, especially in this economy, to sort through and compare features of multiple software and web-hosted customer relationship management (CRM) options for fundraising management, including tools to streamline events, online giving and volunteers. Be sure to download both parts. The report gives recommendations about how to choose depending on an organization’s specific needs.

The CRM fundamentals and scenarios offered in the report — and some of the products — can also be used by small businesses building their brands and customers.

The NTEN study with the nonprofit Idealware first found out what nonprofits are looking for and then connected with the technology firms to get insider information that the typical customer can’t find so easily or thoroughly in a web search. Increasingly, they found that nonprofits are opting for hosted systems so that they don’t have to buy, install and manage software systems on their own servers. You can hear an interview with the executive director of Idealware on the Chronicle of Philanthropy conference notebook.

Although the NTEN conference in San Francisco sold out early, you can follow it live through Tuesday.