nonprofit – Page 68 – The Healthy Non-Profit

It’s a party! Non-profit special event tips and tricks

February 24, 2012 DonorDreams Fundraising

Welcome to non-profit special event season. At least that is the case where I live. Over the course of this last week, we’ve examined FOUR very special and unique special events. Today, we’ll end all of this “party talk” by discussing a few tips and tricks.

However, before we start, please read this quick disclaimer:

“If your agency is small (e.g. too few staff, too few board members, too few volunteers, too few donors, etc) and you need to raise some SERIOUS money, then STOP thinking about throwing a party to raise money! Remember, CharityNavigator.com studied the return on investment (ROI) question and found that the average non-profit will spend $1.33 (direct & indirect costs) to raise $1.00 using a special event vehicle.”

So, if this disclaimer describes your non-profit agency, then I urge you to round-up a small group of volunteers (e.g. those who REALLY believe in what you’re trying to do) and organize them into a group that asks their friends-neighbors-family for direct contributions. Yes, this approach is scary for a lot of people, but it is more effective and you’ll raise more money with less effort.

With that disclaimer out-of-the-way, the following are a few special event observations, tips and tricks for those of you who aren’t quite so desperate and might already have a comprehensive resource development program in place:

If you look around the table and see more staff than volunteers during the planning phase, then please STOP and go recruit more volunteers. This isn’t hard. There are so many people out there who love to plan and participate in a party (at least more so than there are people dying to work pledge cards).
Remember, special events that make crazy sums of money typically do so because of corporate sponsorship and not because a lot of people purchased tickets. Yes, you need people to attend, but make sure to focus your energy on selling sponsorships.
Speaking of sponsorships . . . make sure there is VALUE in those sponsorship packages. Remember . . . companies give you money for different reasons than individuals. So, sit down with your corporate prospects and figure out what they value. Once you figure that out, you’ll easily be able to sell them a sponsorship or craft one around their needs (e.g. marketing impressions, employee involvement, etc). The key here is talking to them in advance AND listening to them AND giving them what they want and need.
The first three letters in fundraising are F-U-N, and special events should personify this word. If you and your volunteers aren’t having a blast planning, organizing and running a special event, then you need to STOP and figure that out! There are so many ways to inject fun into your event: theme, contests, recognition, etc. However, it doesn’t happen accidentally. Non-profit and fundraising professionals set the stage with their demeanor, attitude, approach and ideas.
Infuse mission into your fundraising event. Your special event is a great opportunity to “cultivate” new prospects and “steward” existing donors. This is your moment to shine and educate. Sure, playing 18 holes of golf is fun, but if you can’t find fun and ways to talk about your mission and get people excited about what you do, then I suggest not doing the event.

I don’t have unlimited space to share an infinite number of ideas with you. So, the following links are just a few additional fundraising professionals and organizations I suggest you check-out and read as you strive for creating bigger and better special events: Joanne Fritz, Convio & Event 360, and Andrew Olsen.

If your “fundraising strategy” is predicated on using special events to bring money into your agency, then you’re heading down the wrong fundraising road. Special events don’t make you much money when it is all said and done. I’m not saying “don’t throw a party;” however, I am saying “throw a party for the right reasons.” Sure, you’ll bring some cash into your bank account (not accounting for indirect costs, of course). However, special events are very effective when there is another step (or two or three) in your resource development program that you can transition your event donors (e.g. annual campaign, mail campaign, etc).

Here’t to your health!

It’s a party! Unique non-profit special event fundraisers: Part 3

February 23, 2012 DonorDreams Fundraising, Uncategorized

Welcome to non-profit special event season. At least that is the case where I live. So, my partner and I have been making the rounds, and I thought I’d share some of the more unique special event ideas I’ve seen throughout the week. Today, we’re talking about TWO very special and unique special events put on by the Boys & Girls Club of Rochester and the Boys & Girls Clubs of the Midlands (Omaha, NE). Tomorrow we’ll wrap up all of this event mania with a post on how to replicate some of these unique ideas from the last few days back home at your agency.

A Chair Affair

For 10 years, the Boys & Girls Club of Rochester has built a unique special event fundraiser they call “A Chair Affair”. While I have never attended, I’ve heard lots and lots about it from staff and volunteers throughout the years. In a nut shell, local (and even not-so-local artists) decorate a wide variety of chairs, and the Club invites donors to bid on them in both silent and live auction formats. Click here to check out some of this year’s interesting selections.

As I have done the last few days with other special events, I’m going to offer my observations on what I see in a “just the facts ma’am” format:

I see a sold out event and hear lots of chatter and enthusiasm!
The Club uses technology to promote this fundraiser. It is on their agency website. The event has a stand alone website with lots and lots of information. They use Facebook to promote this as well.
There appears to be many revenue streams woven throughout this event including: sponsorship opportunities, tiered ticket sales for VIP vs general admission, and different auction formats including silent, almost-silent and live)
There appears to be a FUN theme, and this year’s theme revolves around a Masquerade Ball concept. There is unique event logo every year that matches the theme.

Please join me in congratulating this organization’s new Chief Professional Officer, Jodi Millerbernd, and her amazing event volunteers for a decade of creativity and a SELL OUT event set to go off without a hitch this Saturday!

Stock Market Challenge™

The Boys & Girls Clubs of the Midlands (Omaha, NE) runs a special event called the Stock Market Challenge™ . I will leave the explanation of this event to the Club:

“The Stock Market Challenge™ is an electric ride through the ticker tape of the stock-exchange floor! It is the most high-tech and chaotic event offered to non-profits, and is the only fundraiser that doubles as an educator for students, who will gain more insight and understanding regarding the fluctuations of the Market by participating.”

Again, here is what I see:

Not surprisingly, this Club uses technology to create a buzz and promote participation. It’s on their website. They produced a YouTube video to promote participation and give corporate sponsors marketing impressions. Knowing this Club, I’m sure they tweeted it, talked about it on Facebook, and were very innovative with their social media approach.
As with all of the events we’ve looked at this week, there appears to me multiple revenue streams tied into the event (e.g sponsorships, price of admission, etc).
There is a myriad of sponsorship levels with tiered benefits tied to marketing, room placement, and advantages in the stock market game.
The biggest and most refreshing thing I see with this event is that it is seamlessly woven into the fabric of this organization’s MISSION! Club kids are assigned to corporate teams. Kids learn about the stock market. Donors get to interact with the kids. Donors get to help teach kids a thing or two about investment.

It doesn’t get much more mission-focused that this. Congratulations to the Boys & Girls Clubs of the Midlands for amazing outside-the-box thinking on this unique special event!

So, this week I’m trying something different. Rather than spell out what I think the “lessons learned” and “best practices” (or not so best practices) are around special event fundraising, I thought I’d turn that opportunity over to you. What struck you as interesting? What takeaway lessons do you see? What best practices were used? Did anything about this event make you nervous? If you’re intimidated and don’t want to critique a fellow agency, please feel free to share best practices (or lessons learned) that your non-profit agency uses during the implementation of your events?

Please scroll down and use the comment box found below to answer any and all of the these questions.

Here’s to your health!

Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

It’s a party! Unique non-profit special event fundraisers: Part 2

February 22, 2012 DonorDreams Fundraising

I must admit upfront that I’ve never seen a non-profit fundraiser quite like this one; however, a Google search reveals that this event is a little more common than you might think. Regardless, it is very hard for me to put it into words. For this reason, I thought it best to simply provide the language provided in the event program from that evening:

“The Sweetheart Auction includes a variety of activities, including a live auction for date packages. Each date package is represented by an eligible single. Bachelors and bachelorette are community volunteers who have agreed to appear in the event on behalf of The Larkin Center. Bidding is for the entire date package and can be bid on by any of our guests with a bidding paddle. Each package includes dining certificates and tickets to an entertainment venue. People appearing in the auction are representing the date package only and are not required to participate in the date package.”

On the ride back south, my partner and I talked about what we saw, and I thought you might want me to share (please note that this is just the facts ma’am):

We purchased our tickets online via the agency’s website and were redirected to PayPal. An email was sent after completing the transaction informing me that my credit card had been billed. I received my two tickets at the door upon check-in and was asked to provide whatever contact information I felt comfortable giving the agency at that time (e.g. address, phone, email).
As with most non-profit fundraising events, there were many different revenue streams associated with the event. There were sponsors with ads in the event book. There was a silent auction that complimented the actual “sweetheart (live) auction”. There was even a heads-or-tails raffle.
One free alcoholic drink was offered to those who showed up during the first hour that the doors were open.
I saw a number of paid staff in attendance and working the event (e.g. check-in, bouncer, accounts reconciliation, possibly even someone in the auction, etc)
There weren’t any pictures of kids or mission-focused factoids. However, the absence of kid pictures could probably be attributed to HIPPA laws. There might have also been a decision to downplay mission-moments due to the adult-nature of the evening.
There was a disc jockey (are they really still called that nowadays) and dancing after the auction.
There were 10 bachelorette who got up on stage and “encouraged” bidding on a variety of date packages. There were also six bachelors who did the same (albeit with more machismo and gyrating).

Those were just the facts, ma’am. So, I bet many of you are probably wondering if I did any bidding. Well, I cannot tell a lie. I did bid on two of the available Bachelors. I even won both of those bids. One beau is none other than the almost-famous Jason Pawlowski, who is the Promotions Coordinator for Downtown Neighborhood Association (DNA) in Elgin, Illinois.

If you can keep a secret, I have already been in contact with Jason and plan on taking him and his boss Tonya Hudson out on a lunch date in mid-March. Shhhhh! Please don’t tell my partner and the love of my life. AS you might guess, John is the jealous type.

Ok, ok, ok . . . truth be told, I did buy Jason … errrr . . . I mean to say that I purchased the AWESOME Chicago Blackhawks game package that he represented, but the mid-March lunch date is simply my attempt to slip Jason and Tonya some of my new business materials. 😉

Please scroll down and use the comment box found below to answer any and all of the these questions.

Here’s to your health!

It’s a party! Unique non-profit special event fundraisers: Part 1

February 21, 2012 DonorDreams Fundraising

This last Friday John and I climbed into our car for what we thought would be a “Thelma & Louise” moment. For those of you from outside of the Midwest, please understand that Illinois residents are not very welcome north of the border. It should go without saying that it was scary for two guys to cross that state line at night in search of a little wine and cheese. 😉

When it was all said and done, the Club ended up raising more than $100,000 that evening. We walked away slack-jawed, impressed, and with our Illinois tails between our legs. (Note: Cheeseheads call us FIBs . . . can you guess what the “F” stands for?)

I mean “come on” . . . how do you raise that much money with a little bit of wine and some cheese?

On the ride back south, John and I talked about what we saw, and I thought you might want me to share:

The event was held in a hotel in the shadow of the historic Wisconsin statehouse. I don’t know about you, but I love events staged in and around seats of power and influence. They always seem to set the stage for me.
We purchased our tickets online (just like you would for a music concert from Ticketmaster). We printed those tickets from our home computer, and the online ticketing system sent us reminder emails as we got closer to the day of event.
There were many opportunities to give your money over and over and over again. There was a special VIP reception ticket that could be purchased. There was a main event ticket. There were silent auction tables with fun little packages. There was a live auction with even bigger packages. The program book illustrated plenty of corporate sponsorship packages (of all sizes).
The media was there in force. Television cameras were filming and a local radio station provided emcee and auctioneer services. It felt like a place for important people.
Speaking of people . . . the room was packed! There might have been close to 500 people in a room that would’ve been better suited for 300 people. Before you wrinkle your nose and judge that as being bad, let me just say that the buzz and electricity that comes with being in an undersized room shouldn’t be under-estimated.
Miss Wisconsin was on site and anyone wanting their picture taken with the beauty queen was able to do so.
There were two different slide shows continuously cycling through pictures of kids and mission-focused factoids.
There was a live band in the background setting the mood and generating excitement.
The Wisconsin Attorney General showed up and briefly spoke about the importance of the Club and announced that he was giving all of the Clubs throughout the state a grant to help underwrite an internet safety program.
The U.S. Department of Education showed up and announced a huge multi-year federal grant to help underwrite educational programming and collaborations.
Various other donors periodically interrupted the wine and cheese tasting experience to share tidbits of good news and tell the packed room why they invest in the Club.

Wow! I never would’ve believed that a little wine and cheese could create so much magic. Congratulations to CEO Michael Johnson and his board on putting together such a great event!

Rather than spelling out for blog readers what I think the “lessons learned” and “best practices” are around special event fundraising, I thought I’d turn that opportunity over to you. What struck you as interesting? What takeaway lessons do you see? What best practices were used? Please also feel free to share best practices that your non-profit agency uses during the implementation of your events?

Where should you provide answers to these questions? Please scroll down and use the comment box found below.

Here’s to your health! Tomorrow, I talk about the “Sweetheart Auction” we attended on Saturday. (Oh yes I did) 😉

To Pin or Not to Pin. Is Pinterest Right for Your Non-Profit?

February 20, 2012 DonorDreams Fundraising, Mondays with Marissa, technology, Uncategorized

There’s a new kid on the crowded social media block, and she’s turning heads. By coming in ahead of YouTube, Reddit, Google+, LinkedIn and MySpace in website referral traffic at the start of this month – Pinterest has certainly arrived.

But just because it’s popular, is it right for your non-profit agency? Let’s find out.

What is Pinterest?

Pinterest is the cyberspace equivalent to the cork bulletin board hanging on the wall in your office.

Upon signing into Pinterest, you will see a collection of photos that other “pinners” (people who you’ve chosen to follow) have pinned to their boards. You can “repin” a photo, adding it to one of your boards. When a user clicks on one of the photos in a pin, they are directed to the website from where the image originated. For example, if you see a photo of the most delicious chocolate cake you’ve ever seen and would like to make it for an upcoming party, you can repin the image of chocolate cake to your “Party All the Time” board so you can refer back to it later. Additionally, original content can be added to a board by clicking the “pin it” bookmarklet.

Currently the pins that seem to be the most popular include recipes, outfit collections and Do-It-Yourself (DIY) projects. However, businesses are getting involved. Recently, it has been observed that Pinterest is driving web traffic to retail sites.

The majority of users on Pinterest are females between the ages of 25 and 44. On all other social media sites, the average user is a male between the ages of 18 and 24. An older demographic usually means there is more disposable income available even in these hard economic times – which is good for retail.

If the for-profit world can benefit from Pinterest and see an increase in traffic, why not the non-profit world? After all, the more people who visit your website, the more potential donors or volunteers you can reach. Right?

Concerns

Let’s start with the fact that Pinterest has only been around for 6 months. While it seems that Pinterest’s momentum could take it far, I wouldn’t blame you if you took a wait-and-see approach.

Much like Google+ when it first started, Pinterest is currently an “invite-only” community, which is a double-edged sword regarding your reach. However, with 10.4 million registered users, chances are you’re already connected to an active pinner. Of course, even if you can’t identify a pinner in your social network, you can request an account directly from the site.

Another recent concern raised by some is the issue of copyright laws. For example, the photos on Pinterest are usually the property of someone else. So, make sure you are properly pinning by linking to a website or giving credit where credit is due. You can read more about this debate here.

Should your non-profit agency jump on the Pinterest bandwagon?

In my humble opinion, the simple answer is yes, at least in one of the following ways:

Claim your name. Whenever a new social media site comes along I make sure I sign up for it before another Marissa Garza can claim the username or space on that site. Do I use every site I sign up for? No, but the important thing is that I am in control of it if I choose to participate.
Become an expert. Pinterest allows you to curate resources into different boards. Remember that each pin has a website associated with it. Websites come up in search results. So, if a person is conducting a search on non-profits with your type of mission, and you have an entire board set-up with ideas focused on your mission and agency’s services, then Google might just point that person to your Pinterest account.
See what people are saying. If you visit pinterest.com/source/website, you can see if people have pinned things from your website. You can then connect with users on the site by either commenting on one of their pins or following their boards.
Yet another way to fundraise. Last week Erik talked about how non-profits can incorporate selling into their fundraising plans. John Haydon recently blogged on a number of different ideas on how non-profits can use Pinterest. One example included adding a “$” symbol in the description of a pin, which results in it automatically being included in the “gifts” section of the site.

That being said, I know that time is limited for many non-profit staff. Joining and cultivating a community on Pinterest takes dedicated time. As with any social media site, make sure you have integrated this site into your written ePhilanthropy and online fundraising plan (e.g. who is going to make posts, how often posts will occur, etc).

While Pinterest may be a great resource with lots of potential, it might not be the right time to implement involvement. If you can’t fully commit to being involved in Pinterest at this time, but feel like you would have an audience there, make sure that you add a “Pin It” button to your website. If you can’t pin things yourself, you might as well take advantage of Pinterest’s popularity and make it easy for visitors to your website to pin things for you. (Note: you may have to create an account to do so.)

What do you think? Will Pinterest be a part of your social media strategy? I’d love to hear from you in the comments!

Further Reading:
42 Creative Pinterest Ideas for Nonprofits
Nice Uses of Pinterest for Nonprofits
Example of a Pinterest Users Non-Profits/Charities/Social Causes board

Non-profit fees for service and the smell test

February 17, 2012 DonorDreams Fundraising

On Tuesday, I blogged about the idea of non-profit organizations looking in some non-traditional places to generate revenue such as “selling things” through unrelated business income efforts. Of course, I see non-profits also looking at “related” business income opportunities. Today, I’m turning my attention from external opportunities to “sell stuff” (e.g. thrift stores, eBay, amazon.com, etc) in an effort to create revenue streams and looking inward at internal opportunities to sell your services by charging fees.

It would be too easy for me to take the position that instituting fees to sell your non-profit services to your clients amounts to nothing more than selling your soul. However, as we discovered in Tuesday’s post titled “Should the new non-profit mantra be: Sell! Sell! Sell!” many non-profits are generating a lot of revenue from fees for service — 45 percent of the approximate $1.5 trillion in non-profit revenue comes from fees and services.

I think my blogger friend, Joanne Fritz of about.com, got it right in her post titled “Can a Nonprofit Charge Fees for Its Services?” when she suggested there is a “smell test” that needs to be passed before a non-profit should ask its clients to pay fees for the services it offers. Let’s have some fun with this smell test idea:

<<sniff>> I don’t think domestic violence victims should be asked to pay for a place to spend the night safe from their abuser.
<<sniff>> It seems reasonable to ask students at publicly subsidized universities to pay some tuition.
<<sniff>> It don’t think hungry people should be asked to pay for the food they’re given at a food bank.
<<sniff>> It seems reasonable to ask patients at a non-profit hospital to pay for care and medical attention

Well, that was easy wasn’t it? Hmmmmmm . . . not so fast! The reality is that this issue can put your agency on the proverbial “slippery slope”. Let’s take a closer look:

Why should YMCA’s be able to charge fees to access their fitness programs? Doesn’t their non-profit tax-exempt status give them an unfair competitive advantage over for-profit companies doing the exact same thing? If you ask Bally’s Total Fitness and the fitness center industry, they’d likely say YES . . . the trail of lawsuits throughout the years would seem to support this assertion.
Why should public universities continue to charge more and more for a college education when they can also fundraise and access other funding streams that for-profit institutions of higher education can’t touch? Doesn’t their non-profit tax-exempt status give them an unfair competitive advantage?

In this “New Normal” economic environment, I do think non-profit professionals are eyeing opportunities to “sell stuff” to enhance their revenue streams. However, discretion is the better part of valor when it comes to giving in to this emerging trend because it is one thing to look at the for-profit marketplace to sell stuff, but it can be a completely different issue when you start selling your services (and your soul).

Take the Boys & Girls Club movement as a great example. It is the mission of Boys & Girls Clubs to help “those kids who need us most,” which in most cases translates into providing services to kids from “economically disadvantaged circumstances”. There are a number of Clubs doing the math on charging fees for their services.

While it is true that Clubs have charged membership fees for more than a century, it has always been nominal . . . $1.00, $5.00, $25.00 . . . for a one year membership to the Club. This was done to create a “sense of ownership” because the value associated with something given away for free is NOTHING.

However, what happens to this organization’s soul when fees go from being a program tool to a revenue stream . . . $50.00, $100.00, $250.00, $500.00 per year? At what point are you soulless? At what point do your clients walk away? At what point does your mission collapse under the weight of fee for service”? At what point does the IRS enter the picture and revoke your non-profit status?

I’m not suggesting that fee for service isn’t an acceptable model for some non-profit organizations. What I am suggesting is that passing the smell test is more difficult than you may think, and it requires serious board room consideration.

So, here are a few questions I recommend board members ask themselves:

Are there for-profit corporations in your community providing similar services? If so, then why should you have a competitive tax advantage over them?
If your fees for comparable services are similar to other for-profit competitors, what differentiates you and makes you special enough to have a tax advantage?
What is stopping you (and I mean really stopping you) from doing a better job with more traditional revenue streams that are unique remedies to non-profit corporations (e.g. fundraising, foundation grant writing, and various other philanthropic opportunities)?
What will your donors think? And at what point will fees damage your philanthropic business model? (e.g. donors balking at giving you a charitable gift because they think you can just hike fees or go sell some more stuff)

So, before you leap I suggest you look. You might not have a revenue problem that needs to be fixed with a fee for service solution. You may have a human resources and staffing issue. You may have board development or volunteer issue. Of course, you may have a revenue model issue that needs to be tweaked with the addition of some fees for service.

Here is some unsolicited advice . . . If you want to “sell stuff” to generate revenue, it is far safer to open a store and weave your mission throughout its operation (e.g. Wednesday’s blog post about thrift stores or Thursday’s post about eBay and Amazon.com) than it is to look internally at selling your services and raising revenue on the backs of those you serve.

What is the going price for a soul today? I think is it PRICELESS.

Here’s to your health!

The next generation of non-profits and the Sell-Sell-Sell trend

February 16, 2012 DonorDreams Fundraising, technology

Today, we’re going beyond the traditional thrift store and looking at some new high-tech ways that some non-profits are trying to “sell things” to generate income for their mission.

eBay: The Virtual Thrift Shop
Opening a thrift store involves a ton of considerations:

Writing a business plan
Securing a location
Hiring and training staff
Promoting your store and building a customer base
Promoting your store to in-kind donors
Inventory

The list goes on and on, which is why many non-profit executives quickly put this revenue generating idea on the back shelf. However, in this new digital world, eBay is appealing to those non-profits who are intrigued by earned business revenue opportunities through the creation of their “eBay Giving Works” program.

This program allows you to list “things” on eBay with all of the proceeds coming back to your charity. If you don’t have staff to manage this, apparently there is an option to involve an eBay Trading Assistant (of course, I suggest recruiting volunteers to help). Some traditional non-profits, who still like the idea of having a physical space for their thrift store, are integrating this program into their operations by becoming an eBay consignment store.

The Imaginary Thrift Shop
The American Red Cross tried something that I thought somewhat different. Who needs to sell stuff, when you can sell imaginary stuff? This last holiday season they asked their donors to utilize their Holiday Giving catalog featuring “symbolic gifts”. So, donors could go online, log into the gift catalog, select a symbolic gift (e.g. comfort kit or phone card for US service members fighting overseas), and the Red Cross would send a holiday card to whoever you specify with a note indicating that a donation (e.g tribute gift) had been made in that persons honor by you.

Are you still having a hard time wrapping your mind about the idea of “virtual gifts”? LOL It took me a little while, too. Here is how the Red Cross explains the concept:

“Gifts purchased through the Red Cross 2011 Holiday Giving Catalog are tax-deductible contributions to the overall Red Cross mission. Items are symbolic of the work of the Red Cross, not a donation to a specific project or item.”

I have no idea how successful this campaign was for the Red Cross. I’ve tried contacting to a few friends who work for the Red Cross, but they’re apparently too busy saving the world. Oh well . . . if you think this re-invented online dutch auction sounds intriguing, then contact your local Red Cross chapter and do some benchmarking work.

The Reverse Thrift Shop
My friend Cathy Malkani came over to my house earlier this week. She is the fundraising professional at Hebron House in Waukesha, WI. She is trying to end homelessness in southeastern Wisconsin. During her visit, I learned all about amazon.com’s non-profit wish list program. Apparently, your non-profit can create a wish list of “things it needs” that can be found on the amazon.com website. People buy these items and amazon.com ships it directly to your agency.

We all know there are donors who for a variety of reasons don’t like to make cash contributions to non-profit organizations. In my experience, these are the people who end up donating canned goods to their local food pantry. They are also the folks who passionately clean their closets and donate to non-profit thrift stores. Well, amazon.com just made giving stuff a little easier with this program.

Donors don’t just decide spontaneously to go to amazon.com to buy stuff for you. Cathy is promoting this program on her website, in the signature block of her email, and probably in her newsletter.

I know that this program doesn’t align well with the idea of non-profits “selling stuff” to generate revenue, but this example still involves “stuff” and it is budget relieving. Isn’t it?

Well, I hope you found some of this interesting and inspirational today. While the “thrift store” trend and entrepreneurial spirit is alive and well in the non-profit sector, you can see there are new ideas spinning off of this trend thanks to technology.

Is your non-profit using any of the programs mentioned in today’s blog post? If so, please scroll down and use the comment box to tell us about your experience.

Here’s to your health!

Should the new non-profit mantra be: Sell! Sell! Sell!

February 15, 2012 DonorDreams Fundraising

Yesterday, I introduced the idea of non-profit organizations looking in some non-traditional places to generate revenue such as “selling things” through unrelated business income efforts. Of course, I see non-profits also looking at “related” business income opportunities. Regardless, we’ll be talking about this topic for the remainder of this week. Today, we’re doing a deeper dive on what I think is driving this way of thinking and providing a few tips to those looking at this opportunity.

In the majority of my blog posts, I’ve talked about charitable giving and the $300 billion dollars every year that Americans contribute to charities. The reality is that the non-profit sector reports approximately $1.5 trillion in revenues and $2.5 trillion in assets (source: Philanthropy Journal). In round numbers, the Paul Clarke Nonprofit Resource Center reported a number of years ago that nonprofit revenue shakes out in the following way:

20 percent private contributions (e.g. fundraising)
45 percent fees and services (e.g. tuition and health related fees for service)
32 percent government grants and purchase of service agreements (e.g. Medicare, Medicaid, etc)

However, the 45 percent slice of the pie can be really deceiving as it was pointed out by Amy Blackwood, Kennard T. Wing and Thomas H. Pollak in their white paper titled “The Nonprofit Sector in Brief“. When looking at fees and services, they reported:

“These distributions, however, are largely driven by hospitals and higher education institutions. If we exclude these organizations, the distribution of sources of revenue changes substantially. In contrast, the remaining organizations are less dependent on fees for services and goods and more dependent on private contributions and government grants.”

So, I relayed a conversation in yesterday’s post — “What’s the next new thing in non-profit fundraising” — that I had with a very dear non-profit friend over a cup of coffee. In that discussion, she hypothesized that the next new thing might involve non-profits “selling more things”. I’ve concluded that she may indeed be right for the following reasons:

As you can see from the aforementioned source of funds data, non-profit organizations have been selling services and charging fees for years. While this as primarily been healthcare and education related charities, I suspect that during tough economic times agencies start “looking around” at their fellow non-profits for ideas to “borrow”.
My blogger friend, Joanne Fritz at about.com, also captured some of what I’m seeing in her post titled “Recession Provides Bump to Thrift Shopping and Social Responsibility“.

For those entrepreneurial minded non-profit professionals out there who are intrigued by this possible trend, I have a few suggestions:

First things first . . . sit down and figure out upon which revenue model you’re building your non-profit agency. This is one of those foundational decisions that shouldn’t be taken lightly. The Stanford Social Innovation Review did a very nice job distilling this question into 10 different revenue models. Click here to read that article.
If you want to open a store and sell stuff, then you need to start thinking and acting like a for-profit business person. Being a non-profit in a for-profit environment might not work very well. While this single thought could (and probably should become a blog post unto itself), I will share the following few tips: take a few business courses; develop a written business plan; remember that it is all about location-location-location; figure out the “pricing points” thing quickly; and be prepared to do marketing in a very different way from what you’ve done for your non-profit services.
Be extra careful with the “unrelated business income” thing. You don’t want the IRS to take away your non-profit status.
Tie your income-oriented “business venture” into your mission. If done correctly, you might be able to generate income from sales AND cultivate a new base of donors who are ALSO willing to make charitable contributions to your private sector fundraising efforts. This could be done in a variety of ways including: employing clients to operate the store, selling items made by your clients, decorating the store with mission-focused messages, etc
Involve your donors. If you look throughout your donor database, you’ll find a diversity of people from many different walks of life that possess a variety of skill sets and experiences. You’re not in this thing alone . . . you have passionate supporters who love you. If you engage those donors the right way, you might just see their involvement impact how they see your mission and their support of it.

Lots and lots and lots of questions, and the answers can get very complicated. So, before leaping, make sure you take a very hard look at whether or not this is something that fits with your organizational culture.

Does your agency operate a store or business venture? Please share your successes and challenges. Maybe its not a store, but you’re starting to eye product sale opportunities (e.g. cookies, candy bars, popcorn, etc). If so, what are the considerations racing through your mind. Please scroll down and share some of your lessons and considerations in the comment box below.

Here’s to your health!

What’s the next “new thing” in non-profit fundraising?

February 14, 2012 DonorDreams Fundraising

A few weeks ago I had the opportunity to share a cup of coffee with a dear friend of mine who runs a local non-profit organization in Elgin, Illinois. During the course of that conversation, she openly wondered what the “next new thing” in non-profit fundraising will be. It was a great conversation . . . so, I’ve decided to share and engage all of you in the discussion.

Our conversation started off innocent enough. She was reflecting on the state of the local non-profit community, and I was scribbling notes frantically in hopes of possibly finding a business lead or two or three. 😉

I think she hit upon something very interesting when she said, “I’ve never seen a time when ALL of the different sources of funding were down at the same time and under so much pressure.” For example, when her agency’s United Way funding seemed to start trending downward, she found alternative revenue streams from federal, state, and local government agencies. When foundation and corporate sources would dry up, she was able to rely on individual giving and special events.

In her experience, non-profit fundraising was like a lava lamp with funding streams going up and down and coming back again. The world she described felt sustainable to her because as a strategic thinker she always seemed to be able to identify THE “next new thing” and position her agency to take advantage of it. However, today’s “New Normal” feels very different from any other time she’s experienced, and she wondered out loud what the next new thing will be.

As my coffee cup was near empty, she appeared thunderstruck and then said, “I just wonder if non-profits need to start looking at selling things like our for-profit friends do, but doing so in a way that it can be wrapped around our non-profit mission.”

Of course, she is speaking to the issue of “unrelated business income“. However, it might not have to be “unrelated”.

The example she gave involved operating a thrift store. However, she wondered if the store couldn’t also be linked to her non-profit’s client base with job training and childcare opportunities infused throughout. This idea would involve donors donating items to the store. It would involve clients working at the shop, thus earning money, learning transferable skills, and becoming more self-reliant in life. It would involve subsidized childcare, which is a huge barrier to many single and working women trying to make ends meet. In the end, all of this would result in a revenue stream for the non-profit, and just possible THE “next new thing”.

I am intrigued by this idea and will spend the next few days blogging about unrelated business income and outside-the-box revenue ideas with which non-profits seem to be experimenting. I find this idea so interesting because many non-profit agencies haven’t had to think about business-related issues such as the marketplace, supply and demand, customers, pricing, etc etc etc.

So, please join me on this strangely curious trip and discussion.

Has your agency started examining the idea of “selling things” in an attempt to generate new revenue? If so, what have you tried and what was the result? What were some of the interesting disconnects you may have experienced when traveling down this road. Please share examples of other organizations in your community or nationally that have gotten into the unrelated business income game.

If you scroll down, you will see the comment box. You know what to do. 😉

Here’s to your health!

Can your non-profit raise $1,000,000 in 24 hours using a crowd funding site?

February 13, 2012 DonorDreams Fundraising, Mondays with Marissa

What a difference a day makes. This week, video game developer, Double Fine Productions, raised over $1,000,000 within 24 hours of posting their next project on the popular crowd funding site, kickstarter. That’s a lot of money in a short amount of time, and it got me thinking — if it can happen for video games, why can’t it non-profits do the same thing? Today we’ll take a look at two kickstarter-like options for you and your agency.

Helpers Unite

When you combine the entrepreneurial spirit of kickstarter with charitable giving, you get Helpers Unite. Helpers Unite creates opportunities to help businesses fund projects while registered 501c3 organizations collect donations. According to an article from The Next Web, the process for nonprofits goes like this:

“HelpersUnite has Projects and Causes on the site. Registered 501c3′s can create a Cause profile, including their logo, and then send the link to their Cause on HelpersUnite to their donor list as part of any fundraising campaign. Causes can keep their profile on the site forever, at no cost to them. They do not have to align with a charity and donate part of their funds raised on the site to another 501c3′s. All the money raised, less admin fees to HelpersUnite and credit card processing fees from PayPal, go to the non-profit. HelpersUnite features Causes on its site and social media channels regularly to help further promote users’ work.”

Additionally, Helpers Unite will send the donor a receipt for tax deduction purposes, so you won’t have to.

FirstGiving

FirstGiving is crowd funding through your current network of supporters. Supporters can create their own pages and raise funds through their social networks. According to Crunchbase:

“FirstGiving partner’s with nonprofit organizations to allow them to plan, execute, and measure successful online fundraising campaigns. For individual fundraisers, FirstGiving aims to make the process simple, effective, and even fun.”

This approach allows supporters to tell stories and bring awareness to their cause. FirstGiving seems best suited when supporters are fundraising for a project that is connected to a nonprofit, such as running in a marathon.

A few things to keep in mind:

Just like every other social media site, it is important to cultivate the community on each site. Make sure you have someone monitoring the interactions, engaging in those virtual conversations, and updating your profile often.
Spread the news. Not only announce that you have set up a profile on a crowd funding site, but announce the successes. People like to be a part of success.
Learn from others. Take a look around and see what other organizations like yours are up to. How are they using the site? Remember, imitation is the sincerest form of flattery.
Be specific. We all know that donors like to know where their money is going. On these kickstarter-esque sites, details about how the funds will be used is more important than general fundraising.
As of the writing of this post, Double Fine Productions has raised $1,662,430 with 47,231 backers making an average donation of $35. The company only asked for a $1 minimum donation. 25,730 supporters donated between $15 to $30. You can check the current figures, here. It only goes to show that, every penny counts.

Non-profits always seem to be trying to diversify their revenue streams. Do you see crowd funding as another possible fundraising strategy for your agency? Have you used a crowd funding source before? What worked? What didn’t? Please join the conversation by using the comment section below!