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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.

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 is clearly the now, and building online communities for business and personal connections is necessarily the future. But anecdotally at least I can report more picking and choosing on which networks for what, largely due to three vital influencers — time, intent and strategy.

Which raises the question — was the heavy uptick in social media sites during the first part of 2009 due to the “what’ll we do now?” panic-er-resettling following the recession’s impact on business and nonprofits? No measurement authorities have delivered the data that fully jives with our observations (and we are remaining open-minded), but this “Inside Twitter” report provides credible validation of what we’re seeing in our professional networks’ behaviors and day to day conversations with colleagues.

Thanks to Rohit Bhargava’s Influential Marketing Blog, the report’s key findings came to our attention:

• 72.5% of all users joining during the first five months of 2009.
• 85.3% of all Twitter users post less than one update/day.
• 21% of users have never posted a Tweet.
• 93.6% of users have less than 100 followers, while 92.4% follow less than 100 people.
• 5% of Twitter users account for 75% of all activity.
• New York has the most Twitters users, followed by Los Angeles, Toronto, San Francisco and Boston; while Detroit was the fast-growing city over the first five months of 2009.

Back to the basics. Innovation is vital and keeping pace is life-saving. But clients are still reeling from the whammy that’s struck them with this economy. More than ever, our marketing advice should continue to be built on strategy and proven outcomes, not what’s cool or the latest techie fad. We all have to choose — or we will be simply wasting our creative energy and potential profits as we spin into cyberspace without connecting meaningfully with our markets. Wherever your audience is interacting online, that’s where you should be.

Daria Steigman’s “Independent Thinking” article about the “Small Business Edge” in this economy is well worth a read from the International Association of Business Communicators. Spelling out the advantages that solopreneuers and small businesses have in this economy, it’s a timely companion to our Center for Volunteer and Nonprofit Leadership brownbag discussion yesterday.

“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.

By Just Pen, Creative Commons

Ever ask the question — what’s wrong with this picture? A communications audit is the way to find out. 

With endowments still struggling, alumni organizations striving to cultivate more effective engagement and sales revenues seeking an uptick, a communications audit will help you find out if your marketing messages and materials are truly reaching your customers and keeping them closer. What’s more, you can act on the answers immediately, recalibrating to enhance branding and relationship-building.

If exemplary marketing thinks like the customer, then audits let you know how your customers — internal and external — see you, in no uncertain terms. Are your messages and materials truly advancing your relationships with them, or are you wasting your time, energy and dwindling budget dollars? Is your organization structured so that your communication activities can achieve their goals? 

The data produced by a communications audit also tends to be quite persuasive to leadership strategies — and justifies making important adjustments in the way your organizations conducts its communications. A thorough audit places a laser-like lens on an organization’s marketing strategies, activities, processes and, importantly, behaviors. And then it sets a new course for the future.

Keep these criteria in mind as you consider a communications audit:

• Audits provide the big picture assessment of strategic communications effectiveness. They ask the tough questions, typically by professionals outside the organization.
• Audits challenge assumptions that may have been operative for a long time and provide hard data that can foster alternatives and be measured for future activities.
• Audits are creative. They surface new ideas and innovative approaches because your customers are telling you what will work for them.
• Audits are more than SWOTs. Through interviews, questionnaires, surveys and materials review, they yield information and connect the dots, leading to strategic communications plans based on analysis, evaluation and goals.

To launch an audit, know what you want to accomplish and measure even if you don’t know how to get there. Whether the audit is internal, external or both, keep the end in mind. What is the outcome you seek? And how open is your organization to implementing the findings? How can you move the dial to make an audit successful and gain internal buy-in to the results?

Audits are especially effective in a time of reduced resources but greater demand for services because they take organizations back to their core marketing objectives. Getting ahead, yet working with less, means applying new and streamlined ways of advancing the mission to engage the market. A communications audit can put you in position for new connectivity and engagement with your constituents and customers, stronger internal communications partnerships and measurable ROI.