This blog post is the entry for me and an as-yet-unnamed nonprofit organization. To enter, I have to explain on my own blog why I should win this grand prize.  What you, my readers, know that Scott and Michael don’t, is that my passion is helping small and medium nonprofit organizations build efficiencies, grow revenues and increase awareness.  I do and have done this as an employee, consultant, formal volunteer and informal volunteer/information resource.  And, to have further reach and help even more nonprofits, I recently started this blog Nonprofit Doesn’t Mean Breakeven.

Although the summit appears to be geared towards the for-profit sector, I have the knowledge and experience to translate the information and strategies to fit nonprofit needs.  The company I recently started (Crystal Clear Buzz), is focused on helping small to medium nonprofit organizations build and implement effective social media strategies, so I will be able to exponentially spread the wisdom gained by being a participant.  By helping to strengthen these nonprofit organizations, I’m helping improve communities and create a better world (or at least I like to think I am!).

Additionally, I’m giving a nonprofit organization the chance to win my second ticket and benefit directly – which means that the Social Media Success Summit 2009 will also be helping to improve communities and create a better world!  Further, the materials can be utilized by other employees of the nonprofit, ensuring that the knowledge stays within the organization.

By choosing me and a nonprofit organization for this prize, this event will have a much larger impact on our world than simply teaching two more people how to make money on the web.  It could change many, many lives.

So…how to choose the nonprofit that would get the second ticket if I am so lucky as to win??  If you’re interested in getting the ticket, you’re going to have to help make my entry more noticeable.  Here’s what I’ve come up with:

1.)  If you have a Twitter account, send out the following tweet:

Win a FREE ticket to Social Media Success Summit 2009: http://cli.gs/Grq8RX#smsuccess  (I vote for Nonprofit Doesn’t Mean Breakeven!)

By the way, sending out this tweet enters you into a separate contest for a summit ticket.

2.)  Send an email message to Chris (chris@omig.com) and Michael (mike@writingwhitepapers.com) and copy me (crystal@nonprofitdoesntmeanbreakeven.com).  In this email message, explain why your nonprofit organization needs this ticket and how prepared you are to actually implement the knowledge gained.  You also have to mention that you would like Crystal Thies and her blog, Nonprofit Doesn’t Mean Breakeven, to win the Social Media Success Summit grand prize.  Please include the link to my blog too: http://nonprofitdoesntmeanbreakeven.com.

Although I have not yet asked them, I would love for Chris and Michael to choose the winner based on who they think is most ready to capitalize on the opportunity and the impact it would have on their organization (we’ll cross that bridge when we get there).  I know they’re both super busy, so if they pass on this honor – assuming that they first pick me as a winner! – I’ll choose a nonprofit based on the same criteria.

They are picking the winner on May 22nd, so you have to act quickly!

One last thing…if your nonprofit organization has its own blog, you can enter to win the whole shebang yourself.  The contest details are on Chris’ blog at http://chrisg.com.

Good Luck!

Now, getting a volunteer to run your organization’s social media isn’t a bad idea if it’s approached correctly.  You have to recruit this volunteer with kid gloves – much the same as if you were recruiting a volunteer to handle the organization’s finances.  The wrong volunteer in either situation could completely destroy the organization.  If this volunteer has login and editing access to all of your social media and they become disgruntled – they have the power to cause major damage to the organization’s image and brand and have instant reach to all of your donors and supporters.

Using a volunteer in this capacity should really only be taken on by organizations with an established volunteer program; this is not the volunteer to get your volunteer program started.  You have to treat this volunteer more like an unpaid staff person – they must have a supervisor, they must sign a contract that details expectations of what they can and cannot do, you must do reference and background checks, and they should be included in any staff meetings that address social media, marketing and fundraising needs.  This is not a position that can operate in a silo; they must have their hand on the pulse of the organization in order to have the knowledge to properly leverage social media.

So, how do you find this volunteer?

1. Mine your donor and volunteer database for people who work in marketing, PR and IT.  Contact them directly to see if they have the expertise and would be interested in helping the organization in this way.  If they don’t, ask them if they can refer someone who may be able to help.  Referring means that they not only give you the name and contact information of the person, but that they actually contact the referral themselves, summarize the opportunity and get permission for you to contact them.
2. Send out a call for volunteers using viral email to your entire donor and volunteer database (those who have given you permission to contact them in this manner).  Many people have the skills and knowledge of social media as a result of personal interest and hobbies that would not be apparent from their occupation.  This call should be very detailed in regards to scope of activities, skills/experience needed, and time commitment.  By viral, that means that you request they send the email on to anyone they think would be interested or able to help you locate the volunteer.  Do not send the email message using cc or bcc.  The email message should be sent using mail merge or other email system that sends the message out to one person at a time.
3. Use third party volunteer recruiters like VolunterMatch.org or Business Volunteers Unlimited.

Another thought that many organizations may be having is to get a business or consultant to donate their services.  One thing to keep in mind is that there is no tax benefit for donation of services – only tangible property.  Therefore, when negotiating the donation, you should recommend that the organization pay for the services and ask for a donation/pledge that will offset the cost.  The donor could generally restrict the gift for use (such as technology or public relations) if they so choose, but there cannot be a true quid pro quo or it negates the tax deductibility of the gift.

When it comes to using social media, it is very important to remember that you are dealing with very valuable assets -  your organization’s image and brand.  Make sure that the organization has control when using outside souces (volunteer or paid).  The organization must have administrative powers and login information for all of their social media activities.

Key Findings include: 

• Nonprofit websites scored an average 73 out of 100 for online customer satisfaction (the threshold for excellence is 80).
• A highly satisfied visitor to a nonprofit website is 49% more likely to make a donation.
• The top 2 reasons people visit a nonprofit website: 40% News & Events; 40% Stay informed on the cause the organization addresses.
• 18% visit a nonprofit website specifically to make a donation.
• Those who found the nonprofit’s website through the news or a media source were more likely to donate.

Have you reviewed and updated your website lately?  Look at it through an outsider’s eyes.  If you’re not happy with it, your potential donors aren’t either and you’re missing an enormous opportunity.  Improved public relations activities that highlight your website could also lead to increased donations.  Your website is the digital door to your organization – are you embarrassed when you get company?

http://www.foreseeresults.com/Form_Nonprofit_Apr09.html

Chrysler Technical Center: Auburn Hills, MI

When it comes to resource management, strong nonprofits optimize everything.  I like to say that they learn how to spend every dollar twice.  Everything and everyone is multi-purpose.  Here’s a smart example: your marketing/PR department needs a new computer that has the technology to handle current graphics and media software.  You purchase the computer and design the hardware looking ahead and knowing that in 2-3 years, the computer will be transitioned to an administrative position that doesn’t require the computing power of the marketing position, but that will need an upgrade from what it has today.  At which point, the marketing department receives a new computer that can handle the even more bloated software code that has developed during that time.  What that means though, is that you can’t buy a computer with the oldest technology and you will probably pay a few hundred dollars more than what you had hoped.  However, if you are able to extend the useful life of that computer, the extra cost is saving you thousands down the road.

Contingency planning is critical for nonprofit organizations before embarking on a new program or project.  Generally speaking, there is a continuum of 5 different levels of success/failure for which you should have contingency plans:

Both extremes of the continuum could be deadly for a nonprofit organization.  If success causes the endeavor to grow beyond the resources to manage it, it could implode and take the entire organization with it.  So failure is not necessarily the worst outcome.

For each level of success/failure, you have to ask yourself what your organization would look like and address the following issues:

1. Staffing levels and needs
2. Facilities and resources
3. Funding
4. Effect on mission and other programs

In regards to the success end of the spectrum, is the performance sustainable and does it represent where you want your organization to be over the long term?  When evaluating failure, you must determine what would be left over and how could it be used in a positive manner.

Unfortunately for Chrysler, they didn’t take into consideration that the headquarters would be geographically located in an economically depressed area and the last thing that would be needed is another shopping mall – especially after all those people lose their jobs.

It is impossible to plan for every contingency, but with smart planning, you should be able to address the most likely outcomes to make sure your nonprofit organization is well positioned to make the most of good results and make the right decisions when faced with bad results.

The financial outlook for nonprofit organizations over the next 12 months is not good.  Foundations and endowments have lost 20%-40% of their value causing decreases in grants and investment income.  Additionally, individuals are cutting discretionary spending and donations, which means decreased event attendees and individual gifts.  Nonprofits that are able to maintain their funding levels will be doing really well.

However, there will be some nonprofits that really shine; that come out of the crisis in a better position.  How is that, you ask?  First and foremost, they are accepting the situation for what it is and focusing on what they can control.  They are not operating in a state of shock and scrambling for every penny no matter what the cost.  More than ever, fundraisers have to work smarter and focus on the ROI (return on investment) of their fundraising activities.

The organizations that will be successful are currently involved in an indepth evaluation of their programs and operations.  They are eliminating programs and activities that are not related to their mission, that are not producing results, and that do not strengthen the organization.  Smart nonprofits are really prioritizing to make sure that their resources are directed to the programs that matter the most.  They are looking for efficiencies and reviewing processes to streamline their operations and maximize their resources.  They will emerge from the crisis leaner, meaner and ready to take off when things turn around.

The smart nonprofit is also capitalizing on positive public relations and stewardship.  They are sharing their success stories and demonstrating the value their organization brings to the community.  People want to see rays of light through the gloom.  If you are able to make your organization shine through, you will really be noticed.  Smart nonprofits are also very focused on communicating with current donors and planting seeds for future donors.  They are building their “followers” without alienating them because they can’t give now.  By using low cost methods like online communities and volunteer programs, they are able to get new people connected and strengthen existing connections.  When the economy loosens up, they will be primed and ready to donate.

Nonprofit organizations that focus on controlling what they can, making the most of what they can’t and seizing the new opportunities that present themselves, will emerge from this economic crisis stronger and better positioned than when they went in.  It’s not necessarily going to be easy or fun, but it can be done.

Sponsored by NTEN, Common Knowledge and The Port.  Almost 1,000 nonprofits participated in the survey.

Key Findings:

1. 74.1% have a presence on Facebook
2. 80.8% allocate at least one quarter of a fulltime staff person to social networking
3. More than half intend to increase social network project staffing over the next 12 months
4. Of those not using social networking, 44.3% sited the lack of expertise and 20.5% sited the lack of budget as the reason.

Very interesting and important survey for the nonprofit community – check it out.

1. The first thing you have to do is learn what options are out there and pick one or two to get started.  If you don’t have strong IT staff, look for a volunteer or Board member who has knowledge in this area or who can connect you with someone who can.  Ideally, you want to choose solutions that can tie your donors and volunteers to your mission and those you serve.  For example, if your mission is to empower women and your programs are targeted towards women working on their GED and to established professionals learning advanced leadership techniques, create a blog that deals with issues pertinent to the entire constituency.  Then set up a community or group that allows them to communicate and discuss those topics.  The more your (potential) donors  have first hand knowledge and participation in the mission, the easier it will be to persuade them to make donations.
2. You have to provide compelling content.  Often, nonprofits only use enewsletters, blogs, and social media postings to advertise events and ask for money.  If this is what your nonprofit is doing, you are likely causing people to tune out and are possibly causing negative reactions.  It is very easy to create donor fatigue if all of your communications are around “asking” for some type of support.  Remember, Web 2.0 is a two-way street and you have to give your supporters a reason to come back.
3. Managing social media and virtual marketing can be very time consuming and cannot fall on only one staff member’s shoulders.  Set up a rotation for staff members to make status updates on Twitter, Facebook, LinkedIn, etc.  Asking a staff member to come up with two 140 character status updates a few times a month isn’t much and it’s an easy way to keep your content changing and your organization in front of your followers.  If you have a blog, you can also rotate the responsibility of writing the blog.  If your staff is still stretched too thin, consider hiring a Virtual Buzz Assistant.  This is a relatively inexpensive way to get the job done without adding staff.
4. Lastly, your blog and website could be generating revenue by using affiliate programs such as Amazon or eBay.  When people click through your website and purchase items from the affiliate’s site, your organization earns a commission.  By recommending products that tie into your mission and the subject matter of your blog posts, your followers won’t feel as if they are being “advertised” to.  Also, if your followers are aware that the organization receives funds when they click through your website, they may visit your site and click through for other purchases they would have made anyway.  Not only do you get the revenue, but you keep them coming back!  If you’re uncomfortable using affiliate programs directly on your website or blog, consider setting up a Squidoo lens on a topic that is mission related and you can generate affiliate revenue in a less noticeable manner.  With Squidoo, you can even encourage your supporters to create their own lenses on any topic and have the revenue donated to your organization.

I’ll be going into more detail on these topics in future posts.  If you have a strong need for me to cover one of these topics sooner rather than later, please leave a comment in that regard and I’ll focus next on the greatest need/interest.  If you’re interested in working with a Virtual Buzz Assistant, please contact me directly and I can give you more information.

‘Til next time!

The truth is, if a nonprofit isn’t making a significant “profit” every year, it is not going to be operating for long.  When a for-profit company makes a profit, it has three options: 1.) save the money; 2.) invest the money in the growth of the company; or 3.) distribute the money to the owners and investors.  A nonprofit organization can make a profit and and do everything except for number three.  The term “nonprofit” simply means nonprofit to the individuals running and investing (donors) in the organization, not the organization itself.

Unfortunately, our federal government has burdened us with this ambiguous term that misleads many people.  The rest of the world uses the terms “third sector”, “independent sector”, and “nongovernmental organization” (NGO), which are much more clear and don’t leave the impression that the organizations should be poor and not thrive; that they should constantly be struggling to raise money and only breakeven.  I’m not saying that we should try and change the term we use in the U.S. – I just wish Congress had given it a little more thought before they used it!

The occupation of nonprofit management has become much more professionalized over the last 10-15 years – which is a good thing!  Until recent times, nonprofit organizations were mostly run by people motivated solely by the mission with little expertise in business management and often little interest in managing the corporation.  On the flip side you would find retired executives (because who in their right mind would do that much work and take on that much responsibility for that low of a salary – right?;-))  who were constantly being accused of being heartless and only focused on the finances.

What we have to keep in mind is that the legal process of starting a nonprofit is incorporation – not really any different than starting a for-profit company.  Many people are recognizing the need for stronger business practices and that has led to the greater professionalization of nonprofit management with undergraduate, graduate and certificate programs available at many colleges and universities across the world.  The concept of “running a nonprofit like a business” is becoming much more accepted.

So, if we have strong nonprofit leaders and managers that fall in the center of the heart-business continuum, does that mean we will have a successful organization?  Not necessarily.  I would like to proffer that nonprofits have to be run better than a business in order to be successful.

Think about it.  95%-99% of nonprofit revenue is given to nonprofits – not earned.  Often, that money is not given freely without restriction – the organization is told or commits to spending it in a specific manner no matter what the operating situation is (such as the electric about to be cut off).  Nonprofits are involved in what I call the “ultimate sale”  (ask a regular salesperson to try and get money from their customers without giving them anything tangible in return and see how well they do!).  They are dependent on free and below market salary labor.  The people who “buy” nonprofit services are often not the people paying for the service.

That’s hard!  And, CEOs of our biggest companies are finally admitting it publicly.  The financial services and auto industries want to use our tax dollars to keep their businesses from going under, but protest that there is no way they can run a successful company with just a couple of little restrictions like salary levels of the highest paid employees.

Hmmmm…maybe we should ask our retired nonprofit managers to step in and take over AIG and GM?  Not only would the companies be better run, but these executives would likely give a much larger portion of their salary back to charity – even if they were paid only half as much!

So, since we now know that our goal is to do better than breakeven – to actually make a profit – future blog posts will cover concepts, ideas and suggestions on things that can be done to tighten the nonprofit ship.  All aspects of nonprofit management may be touched upon while focusing on increasing ROI, optimizing resources and assets, building efficiencies and increasing awareness.

I hope you enjoy!  Keep following and please pass my blog along to others who may be interested.