Checking out my February issue of CRM Magazine, I was emphatically saying “yes” to every sentence I read in the lead article “Helping Hands.” Jessica Tsai explores the pattern of disinvestment in the adoption of technologies with nonprofit agencies, particularly those technologies and methods related to outreach, marketing, and constituent/donor relations. Here at Millennial Associates, we see this all to often with the state of the nonprofit industry through either outdated or nonexistent outreach and marketing methods. It’s almost as if there’s a hesitation to invest in the incredible tools that are available today to communicate with audiences, engage constituents, and encourage supporters to take action. As the article points out, this is mostly due to the nonprofit mantra of spend the least you can on overhead, admin, and infrastructure, and that the word “free” is always the best.
Is your organization caught in the chicken-and-egg technology cycle? (image credit: cocoip, Flickr Creative Commons)
I admire every nonprofit I encounter. They always do so much with so little. They take a dollar and stretch it in ways that teach even the most penny-pinching entrepreneur a thing or two. The question persists today, though, as to the proper allocation of resources dedicated to outreach, community relationship development, and communication technologies. While this paragraph is obviously self-serving for my company, it’s also proving to be true. Nonprofits who wisely invest in outreach and communication technologies and methods with their audiences and supporters experience a groundswell of positive responses, a connected community which is interested and engaged, a measurable return on investment, and even improved financial performance.
One of Ms. Tsai’s focus areas in her article explores the increase in oversight and lack of a mandate from an agency’s donors, expecting their donation to be used on actual program and service costs, not the overhead costs or infrastructure of the agency. Tsai highlights the dangers in such spending, however:
“An article in the Stanford Social Innovation Review underscored some of the [nonprofit] sector’s unfortunate behaviors. According to the article, “The Nonprofit Starvation Cycle,” nonprofits exhibit a “chicken-and-egg-like quality that makes it hard to determine where the dysfunction really begins.” The cycle typically starts with the unrealistic expectations of funders – or what the ASPCA’s Froelich ironically calls “the charity watchdogs.” Pressured by the need to secure funding, nonprofits strive to conform to these expectations, an effort that often depresses spending on infrastructure. Antiquated systems lead to subpar performance, which only serves to intensify the oversight.” (Jessica Tsai, “Helping Hands,” CRM Magazine, February 2010. Link»)
The article provides some key takeaways. First, nonprofits need to take that initial step into investing in outreach and constituent relationship development technologies. Secondly, and more importantly, agencies need to use those technologies to communicate with audiences, informing them of needs and ask them for help. The problem here is the prohibitive cycle of outreach: without the tools, it is difficult to communicate. Without communication, it is difficult to obtain the resources necessary to acquire the tools. Agencies finding themselves in this trap are left with archaic and often chaotic communication procedures and no real ability to invest in new outreach methods for fear of breaking the bank. That chicken-and-egg paradox persists.
Without strong outreach channels, it is difficult for agencies to communicate need to supporters or actually make the donation ask: their network is limited to the infrastructure’s capability. With advances in social and outreach technologies today, nonprofits are increasingly able to reach out to a growing community of supporters, eliminating the traditional barriers that once existed. With online and other social networks that are by nature high-speed, connected, and not limited to a single level, agencies can connect with supporters that transcend the first level of supporters, encouraging new followers to adopt the mission and goals of the agency.
I’ve recently been hearing the phrase “run your nonprofit like a business.” While it seems like an obvious statement, I see many improvements that can be brought to the nonprofit industry. By investing in the connection with constituents, nonprofit agencies can plant the seed that encourages support at a later time, even if the individual has no ability or intent to give or support at the time. By fostering relationships through positive messages, engaging dialogue with the agency, and providing value to the supporter, these relationships can grow into full-fledged financial supporters of the nonprofit organization.
Today’s technologies finally allow for the development of the valuable relationship with an agency’s service communities. With tools such as a constituent management software, donor tracking and relationship, and communication channels such as web and social media, nonprofits stand to increase their efficiency and see a larger ability to serve. It’s not just about saving money: it’s also about reaching out further and developing current, new, and even lost supporters to increase the financial capability of the agency. Increased outreach and communication efforts require an investment, but they can provide results that are far reaching even beyond the life of the measured campaign life.
Justifying technology and outreach can be a tough choice. The research is out there. The case studies are out there. All agencies have to do is take that leap of faith and trust supporters to take care of them. Continuing in that cycle of chicken-and-egg outreach only persists the dearth of productive communication with supporters. 2010 is a great year to build an agency’s communication infrastructure, allowing them to reach out more effectively than ever. Let’s discuss possibilities for a vision of effective outreach in your agency.
Categories: Best Practices, Ideas and Breakthroughs, Nonprofit Organizations, Social Media and Web 2.0, Successful Messaging
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