Does It All Come Down to Money?

A new study by Johns Hopkins cites the following as the biggest challenges to the nonprofit world:

• Charitable fundraising (68% of organizations)
• Health benefit costs (58%)
• Government budget cuts (47%)
• Generating fee income (46%)
• Board recruitment (46%)
• Public understanding (41%)

• Money
• People

Coming in third is awareness, which is number 5 above.

But can it all be this simple? Does the future of the nonprofit sector rest solely on the amount of cash an organization can generate?

If so, then expect your executive directors to have to know less about managing change or overseeing staff. The only interview question they'll be asked is, "How much money can you raise?" And after the parade of candidates is complete, whoever said the highest number gets the job. Then, they'll have 18 months to keep their promise. It's like some sick version of "Name That Tune."

Of course, it really doesn't matter who can raise the most money, but who can raise money the best. While nearly any nonprofit will gladly take a check (depending upon the strings attached), some nonprofits need better strategic partners. For some, an alliance with a key media outlet is equally as good as raising money to print new brochures. For others, a core of dedicated volunteers is as good as a staff position.

What is needed more than money is creative strategy.

Creative strategy can raise money and awareness, but it can also get people on board. Creative strategy can tell the right story to the right person to get the right response. Creative strategy breaks rules and makes new ones. Creative strategy thinks and dreams big. Creative strategy grows an organization at just the right speed. Creative strategy addresses the concerns of money and people in a way that meets those needs like never before.

Because you've got to be creative if you're going to get someone to open his or her wallet or purse.

Sadly, there's very little training for this type of leader. Thinking outside the box is rarely a chapter in a college textbook. For most people I know that fit this description, they've got something deep within them that makes them unique and inspiring and interesting to be around.

But, you need more than a great top dog to weather the winds of change in the charity world. So here are (what I feel) are the biggest needs to meet the challenges discovered in the JH study:

• Creative leadership
• Innovative fundraising
• Storytelling
• Strategic Partnerships

Working for Charity

Presidential candidate Mitt Romney announced that if elected, he'd donated his annual salary of $400,000 to charity.

I appreciate seeing this kind of altruism in a politician. It's not a trump card that makes me want to vote for him on this single promise, but I do like it.

$400,000 is more than lots of annual budgets for some nonprofits in the country. So, that kind of money, while not the millions Romney is worth, can make a huge difference. No doubt, if Romney is elected and he keeps his promise, there will be quite a few nonprofits lobbying for his handout.

But, here's the interesting thing. So far, Romney's raised over $20 million for his campaign. Clearly, even with 8 years in office, he'll never make what he's raised so far.

So, Mitt, why not just call it quits right now and donate that money to charity? $400,000 is nice, and lots of folks will take it. But why not write a larger check with the current cash in your campaign coffer?

In fact, when you look at all of the candidates currently in the race, over $130 million has been raised.

We could debate all night about what's 'worth it:' One of these people in the White House making decisions that affect countless lives, or this cash in the hands of nonprofits serving the world in a different and important way.

So, Mitt, I appreciate your generosity. Best of luck with the election. But, please consider how you can better serve humanity: as a President who works for free, or as a master philanthropist who shows people where to give the money they work for.

Rewind: Week of 5/21-5/25

Monday, May 21: Shameless Self-Promotion Day

We went to a conference.

Tuesday, May 22: Let Someone In

You're not in that much of a hurry.

Wednesday, May 23: Mental Health Month

Help raise awareness about mental health issues.

Thursday, May 24: Take the Stairs

Lift those knees, Wheezy.

Friday, May 25: Computer Recycling

Keep that old machine out of a landfill.

A Site we Like: Benevolink

Today we debut a new feature on The Other Side of the Pillow. Every so often, Stephen and I will find a Web site we like and tell all you cool people why exactly we like it. Stephen will usually speak from a technical and design point of view, and I'll offer a perspective in terms of purpose and impact.

First up, the good people at Benevolink, whom I met last week. Here's what they say they're about:

Benevolink is a new movement in corporate giving that links individuals, corporations and nonprofit organizations to improve communities. The Benevolink program:

• Helps consumers give to their favorite charities, including schools, religious, arts and cultural organizations and other causes our consumer members really care about, through the act of shopping
  
• Helps businesses increase sales, profits and market share, while forming bonds with consumers
  
• Helps charities generate additional, unrestricted revenue on a year-round basis while adding value for their supporters
  

Now, the simple act of shopping -- when coupled with the power of 'pooled giving' and consumer choice -- creates a win-win-win scenario for consumers, businesses and charitable causes. Our vision is to significantly increase the funding capacity over time for more than one million nonprofit organizations making a difference in their communities across the United States.

Stephen likes the following:

• Uses the "3 buckets" model whereby a visitor knows almost instantly what the site's all about
  
• Employs active verbs, "shop," "give," and "connect" -- 3 things everyone loves to do
  
• Give search options based on how user would be looking to shop -- "by category" or "by store" -- kind of like your average trip to the mall

As for me, I like this idea. Much like FreePledge, Benevolink takes something we already do (often without thinking) and makes us think about it by flipping it on its head. It's easy and quick to sign up, removing one excuse I might have (not having enough time). The best part is that all of the donation percentage goes to the nonprofit of your choice. Benevolink makes money based on agreements with retailers. Thus, what you collect as a portion of your expenditures ALL goes to the charity of your choice.

American consumers spend oodles of money shopping every day. Benevolink makes it count for something.

Average = 54,000 pounds

Here's some neat info from my latest issue of Nature Conservancy Magazine (I got it when Lynnette and I adopted an acre of forest):

The average person puts out about 54,000 pounds of CO2 ever year. Here's some of the breakdown:

• 17,000 pounds from electricity usage
• 8,800 pounds from natural gas usage
• 1,000 pounds from creating 4.5 pounds of trash each day
• 8,900 pounds from driving
• 1,000 pounds from flying

Like I've Been Saying

Here's an excellent article from Daily Kos. It details how growing numbers on young persons (in this case, college students) are interested in nonprofit work, whether volunteering or being employed.

Wisely, the University of Minnesota added a nonprofit management major. Other schools would do well to follow suit to train people to be the civic leaders of both today and tomorrow. The benefits to the school are both intrinsic and quantifiable. If you have a good program (academically) with a good meaning (socially), you'll reap the rewards in publicity and enrollment, and also in satisfaction that comes with making a difference.

So why doesn't Vanderbilt University, located in Nashville, the same city with more nonprofits pr capita than any other, offer such a major?

As the article points out (and I agree), more and more young people will be looking for nonprofit work for a variety of reasons, both personal and professional. To miss this opportunity would be a grave mistake for both universities and a world in dire need of quality, smart, nonprofit leaders and visionaries.

Rewind: Week of 5/14-5/18

Monday, May 14: Get Fresh

There are more ways to 'Eat Fresh' than going to Subway.

Tuesday, May 15: Scrap the Roof Rack

Nice rack. Put it in the garage.

Wednesday, May 16: CaringBridge

Here's a great resource for families in medical need.

Thursday, May 17: All Natural

Help animals be…well…animals.

Friday, May 18: Go Topless

Take it off – for the environment's sake.

Winding Down a Long Workweek

I'm currently perched in the back of Safari Cup in Birmingham. If you haven't made it to the Magic City in a while, Birmingham is really trending younger. Lofts, greenspaces, arts opportunities - it all makes for a changing and cool city.

It's a long story as to why I'm in Birmingham after my week in Atlanta, so I'll spare you the details. Nonetheless, I'm here, and will head back to Georgia after Lynnette lands in a few hours.

Today, I had a great time meeting folks doing great things for the community:

• Sara at United Way of Central Alabama. This nonprofit helps 81 agencies a year do what they do to change lives and help people who need it the most.
• Elaine with the One Campaign in Birmingham. This mom is as hip as they come and gives her life to raise awareness about the work that needs to be done so that people can eat and escape poverty around the world.
• Alison at the Birmingham Chamber of Commerce. Again, this city is changing and seeking to engage young people in every area of its development. Perhaps this is one reason it was named a great place to raise a family.

I may have some more tales from the road this weekend while in Athens, Georgia before heading back home to Nashville. To all my new friends in Georgia and Birmingham, thanks for your time and your inspiring stories. The world is better because of your work.

Workshop Three: Future Sector Leaders Tell All

So, how can you attract, retain, and even replace young talent?

I think you first need to listen to young talent, for which this workshop provides an opportunity. Young people will gladly share their (short) life stories, if you just ask. There is an amazing amount of wisdom in the young kids out there, so pull up a chair. We've got three on this panel, ready to dispense their stories and ideas.

Some quotes: "It was important that I could find a job where being 28 was not a detriment." "Unfortunately, at most nonprofits, there seem to be lots of entry-level people, a few people who make a fat paycheck, and no one in between."

Workshop Two: Be Bold! Create a Career with Impact

I arrived a tad late to this session, but am very excited. I just met Leslie with Echoing Green, which published Be Bold! I picked up a copy and am looking forward to reading it. They don't think you need a million bucks or a thick Rolodex or all the time in the world to change things. You just need to be willing to try. Certainly you can see why I like them.

This group has studied social entrepreneurs that have changed the world and each has similar characteristics. Their Boldness DNA consists of:

• Internal Boldness
• Vision for Impact
• Bring It On

• There is a "moment of obligation where you identify what means the most to you and committing to carrying out your dreams."
• There is also a "gall to think big, in which you believe you can take on the world and develop a clear and expansive vision for change."
• Then there's the "new and untested, in which you question the status quo and create new solutions to address seemingly intractable social problems."
• Finally, you've got to make sure you're "seeing possibilities, by which you identify solutions when others can't and have hope when others don't."

Now, we're going to write a letter to ourselves to help us be bold. It will get mailed to us in three months. I did this in high school once.

Workshop One: Bridging the Gap Between Technology and Marketing

This workshop is led by Allen Nance, president of the Mansell Group.

To start:

• The Internet is as 'hot' as it was ten years ago. In fact, it's 'red hot.'
• Marketing and technology people don't get along.
• In the nonprofit world, people handle both.

Lots of times, technology people spend money on technology that will be used by people not even in the room when the decision was made. That conversation needs to be expanded to include end users, whether they be employees or volunteers. If this doesn't happened and the end users hate the new technology, negative results will ensue. The solution lies in cross-functional teams that make all technology decisions.

The next phase of this whole thing (technology and marketing) will be all about prediction models. What will happen if we send this mailer out? What will happen if we sent 1,000 more emails? What will happen if we targeted these people?

Morning Keynote: Marc Freedman

Yes, I'm liveblogging the conference. Some people are really into American Idol or football or local music.

I'm into nonprofits.

Marc Freedman is the co-founder of the Experience Corps. They're sort of like Americorps for the AARP. He's discussing how to engage retiring Boomers in nonprofit employment. It's kind of the opposite of my specialty (getting young people involved in volunteerism), but this should be valuable nonetheless.

Every 8 seconds, someone turns 60.

There will soon be more people over 60 than under 20, and this is a worldwide (at least with Western developed countries) trend.

This guy is telling a lot of stories. We're now getting Del Webb's life story. I don't know why.

Okay, he's spent more than half his time on the 'what.' From looking around the room, we know what the deal is. There are lots of old people. Get to the 'how,' please. Tell us how to engage seniors. Tell us how to find them, involve them, and learn from them. You've got 15 minutes.

Nonprofits would be wise to take a page from corporations already recruiting retirees. For example, Home Depot is actively trying to fill part-time spots with aging boomers who want to turn a hobby into an income. Perhaps charities can find great talent (paid or volunteer) with a similar message.

Freedman recommends a GI Bill kind of idea for retirees to involve them post-retirement in civic activities. For example, if someone agrees to have an 'encore' career in something that is at the intersection of philanthropy and business, you'll be rewarded. You can have a break (sabbatical, education, etc.) and be compensated and receive satisfaction. This will create value for society and the individual.

In sum, there are people who want to keep working and have a valuable set of talents and a lot to offer. A great place for them to offer these assets and plug in is the nonprofit sector. We all need to get creative to make the two meet up.

And that's a wrap! I'm really looking forward to the lunch keynote, Darfur advocate John Prendergast.

I Read a Book: The Starfish and the Spider

I just finished Ori Brafman and Rod Beckstrom's new book, The Starfish and the Spider: The Unstoppable Power of Leaderless Organizations.

This is a very though-provoking book, but not in an earth-shattering kind of way. The authors show why eBay succeeded when other online auction sites didn't. They explain why people still download music, even when record companies keep suing. They show why the Apache civilization lasted longer than the Aztecs, and why AA had the success that it did. There theories also explain why it won't matter if anyone catches and kills Osama Bin Laden.

In their opinion, leaderless organizations are like starfish. When you chop off a starfish's arm (or is it leg), it grows back. If you chop one in half, you'll eventually get two fully-grown starfish.

On the other hand, spiders don't grow their legs back. And if you chop off it's head, it will die.

Applied to organizations, those with centralized leadership and a top-down structure have a hard time surviving, especially when confronted with things like innovation, major change, or unexpected crisis. On the other hand, the loose-knit organization and changeability of starfish entities allow them to survive.

This theory obviously works well, and while it's hard to find an exception to the rule, it's not perfect. As a caveat, the authors offer what they call a hybrid organization that takes the best of both worlds.

This book is informative and worth your time (which shouldn't take more than an afternoon or two). If you're leading an organization of any size in today's world, managing change is sure to be one of your biggest tasks. This book will offer some suggestions on how best to do that.

Break Me Out of the Breakout

This afternoon at the GCN Summit, there was only one breakout dealing with technology/Internet/media. And yes, I did say earlier that the theme was Revolutions.

Nonetheless, I went to this workshop dealing with Search Engine Optimization. I had heard a while ago that if anyone tried to sell you an SEO service, then you should run. There is no exact science to it, and a few simple steps can have anyone a little bit better traffic ranking.

The real key, if any, is to figure out exactly what key words you want to drive folks to your site. Once you've got that, you've at least got a shot. But you've also got to offer a good product.

That'll be $1,000.

I listened anyway, because I'm looking for any legitimate way to help nonprofits get more people interested in what they're doing, and there might have been a nugget of wisdom lurking around the room somewhere. The people on the panel did know what they were talking about, but just like a meeting I went to 2 weeks ago about Web branding for nonprofits, a lot of folks out there really think that every Web site needs to be full of with Web 2.0 bells and whistles.

If I can offer every nonprofit a bit of advice, here it is. Your Web site does not need social networking capabilities.

Chances are, if someone is looking for your nonprofit's Web site, it's because they want the vitals. They want to know who your leadership is, what your mission is, how they can volunteer or donate money, and how they can learn more. They don't need to host their blog at the Red Cross. No one goes to United Way for an installment of funny videos. Nobody visits Habitat for Humanity's Web site to see what their friends are up to.

To that end, nonprofit Web sites need the basic info and it needs to be updated religiously. If the best way to do that is to have a blog, do it. If you tell a story better through video, shoot it, put it up on You Tube, and tell people how to find it. None of this should cost you money.

There are lots of Web tools out there for folks who want to make a difference. Nonprofits are in the business of helping folks and meeting needs, not pioneering technologies. Leave that to the VC firms. And then once they're developed, milk them to benefit those you serve by engaging allies and supporters.

At the GCN Summit

Things have just gotten underway at the annual Georgia Center for Nonprofits Summit.

At any of these things I go to (by these things I mean mixers, meetings, workshops and conferences related to the nonprofit world), I can't help but notice what's glaringly missing: young faces.

Granted, depending upon the event, young people (18-34 year olds) may not need to be there. Most young folks in the charity sector are running programs (often because they want the hands-on experience). Thus, they're not going to show up at a workshop dealing with policy or board management. Likewise, if the event is for a specific job (like marketing), if someone ain't in marketing, they ain't coming.

But, this event is all about revolutions. Things are changing everywhere, but especially with nonprofits. Thus, 'change or die' is both foreboding and intimidating for nonprofit managers.

But, can we really have a conversation about where nonprofits should go if the very people who are and will be in charge of these organizations aren't even in the room?

Everyone, nonprofit or for-profit, is scrambling to get that elusive 18-34 demographic. The truth is that many of them would be very interested in your product, company, nonprofit, or volunteer opportunity. But, if your organization isn't set up to attract or retain these folks, then get ready to die.

For example, something said from the stage in the general session was that nonprofits need to be trained to keep young talent. Because it's hard to keep a 23-year-old on staff until they retire, nonprofit managers need to know how to keep someone on board.

Wrong. That's like telling someone that the best way to get from New York to LA is to call Amtrak. You'll get there, but it will be a hell of a hard time.

Instead, in nonprofit organizations, opportunities for promotion are very slim. Thus, if a 23-year-old wants to climb the career ladder (and they will because they'll need and want more money as they do things like have kids and save for retirement), their best option is to jump to another organization or leave the industry entirely.

So, nonprofits don't need to be trained to keep a young person. They need to know how to replace a young person.

Unfortunately, if I'm the youngest person in the room, that's not a good sign. It was fine a few years ago. Sure, I'm only 26, but as people are finishing college with a suitcase full of hope and ambition, charities are throwing away a very valuable asset by not engaging young persons in every level of an organization, from program design to fundraising to awareness building.

I'm currently in a session for Search Engine Optimization (SEO). This is a pretty empty concept, especially for non-franchised nonprofits. But I'll debrief that later.

The Caribou

I'm sitting in a Caribou Coffee in Atlanta right now. Even though my friend is good for 23 holes of golf, he doesn't have wi-fi at his apartment. So, I'm spending a few hours catching up on emails and news before I eat breakfast again with my friend at local spot Radial.

I like Caribou. They're smart. Free refills on coffee. Free wi-fi. And everywhere you look, they place something in your line of site to nudge you to buy something.

It's not in an overbearing kind of way. Nothing's flashy or out-of place. It's the subtle things that wake up your psyche and remind you that you do want to spend money on something:

• The branded napkins whose corners read, "Better grab a muffin."
• The stuffed animals nonchalantly sitting on the mantle above the fake fireplace (these joints are ski-lodged themed).
• The sign on your way out that says, "See you tomorrow."
• The cardboard sleeve that reminds you, "You are holding our pride and joy."

This is everything the chain-store coffee experience should be. Give me the conveniences and the selection of a big conglomerate, along with the service and kindness I demand from any experience. If you do that, I won't mind your subtle, clever ways you choose to market to me.

If fact, I might actually like it.

At least enough to write about it.

Seeing Some GA and AL

I'll off tomorrow morning for a trip around Georgia and Alabama.

With our recent news about expanding into Atlanta, I'm looking forward to attending the Georgia Center for Nonprofits' Annual Summit. We'll be talking about revolutions when it comes to social change, particularly in the ways nonprofits and change agents are structured, marketed, promoted, and connected. I'm looking forward to meeting some industry folks, seeing how the Georgia nonprofit landscape compares to that of Tennessee, and to examine some latest trends.

I also hope to play golf here.

On Friday, I'll head over to Birmingham for the day to meet with some community people as well and talk about CoolPeopleCare.

Then, I'll be back in Georgia on Saturday to watch Lynnette's cousin graduate from law school, before we come back home on Sunday.

Thank goodness for Sirius.

Rewind: Week of 5/7-5/11

Strapped for ideas today? Here's what we mentioned last week:

Monday, May 7: Care Package for Mom

Make mom proud by giving to others.

Tuesday, May 8: Give Her the World

The gift goes to someone else, but your mom still gets the warm fuzzies.

Wednesday, May 9: What Giving Smells Like

This gift will make your mom smell and feel good.

Thursday, May 10: FreePledge

For Mothers' Day, make a difference by making a FreePledge.

Friday, May 11: Tell Mom

You know she wants to hear from you.

I Read a Book: Purple Cow

Seth Godin's Purple Cow is the first (and so far, only) of his books I've read, though I do read his blog. Seth is a marketing guru that has some very worthy insight for anyone looking to sell something in today's rapidly changing world of media.

Seth is someone who knows that what worked then won't work now. His concept of the Purple Cow is simple: create something that is remarkable. Remarkable products are easy to remember, not just so that people will pick it up at the grocery store or Target, but so that people will tell other people about it. When someone tells someone else (something good) about your item or store, your cost to advertise to that listener is $0.00. No matter what your product sells for, that's a great deal on advertising.

He offers several good and bad examples of companies that embrace this idea and others that seemed to have missed a golden opportunity. He also draws the line between remarkable and sensational, important and gimmicky, and the built-to-last and the one-hit-wonders.

I'm not a marketer by title (or education), but I am developing a product that I actively brand and market every single day. If you’ve heard of Godin before, you're probably a fan. But if you haven't, and you're trying to start a business, get people to your eBay store, or trying to get more readers to your blog, this quick read is well worth the afternoon.

Stuff won't jump out at you on every page, and a lot of the book is stuff you may have thought of already, but Seth clearly defines the need for everyone to be remarkable.

If they want to be around in a year, that is.

When Stamps Hurt

Here's a short article about the upcoming postal rate increase as it relates to nonprofits.

Charities and change agents send out a lot of mail pieces as they seek donations and raise awareness. This increase means it could take more of their budget to reach people. (The discounted nonprofit rate is safe for now, but it could increase as the USPS faces more and more budget issues.)

How then can these organizations best reach their core constituency? Direct mail response is usually dismal at best, and I'm always shocked when I get an unsolicited letter from a nonprofit. I usually toss it along with my Kroger ad and credit card applications.

If nonprofits are going to not only save money, but increase their advertising effectiveness, they have got to get out of the direct mail game as their donor base (which is usually older) embraces technology more and more.

We at CPC obviously think that we can help get the word out about a nonprofit's needs to a great audience of socially minded individuals for a fraction of the cost of direct mail (and a lessened impact on the environment). So, if you know a nonprofit trying to reach a savvy, youngish, cool, caring audience, tell them to look us up.

8%

A new report out by the Pew Internet and American Life Project finds that just 8% of people live the Web 2.0 life. Only 8% of people use most of the tools available to them in terms of social networking, blogging, and other newer forms of communication.

I thought the number would have been higher, given the vast amount of people Facebook-ing and MySpace-ing. David Utter has some good analysis of why this number is (seemingly) low.

The uber-connected life is one mainly lived by 20-year olds that Utter