Common sense-anomics

“On My Mind: Measuring Good-Cause Effects” by Raymond Fisman (Forbes, 10 December 2009). As the holidays get closer and resolutions are being made for 2010, doing well by doing good is probably on quite a few to-do lists. If that sounds like you, then give Mr. Fisman a few minutes of your time, please.

Now before you jump to conclusions, there is one bit (in the third from last paragraph) that is not fully explored but seems rather intriguing:

Interestingly, in the months after Hurricane Katrina made landfall in August 2005, there was a big boost in sales probability and price from Giving Works for all Ebay sellers, young and old. So, when a national spotlight shines on particular causes, it may be possible to do well by doing good.

Possible conclusion? Be specific, and possibly current, about the cause you’re supporting. Just saying, “we do good” and “a percentage of sales goes to charity” might not be enough. Makes sense since most people would want to know exactly where their money is going. Don’t you prefer clarity and transparency over vague and mysterious?

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If your message falls on deaf ears/eyes, does it still make a sound?

“Prospect Research” by Waddy Thompson (The NonProfit Times, 15 September 2009). Please note: The link to Mr. Thompson’s article will actually take you to his web site, not NPT.com. NPT, being an old media outfit (?), did not have the article posted on their web site. They also did not respond to an inquiry as to whether it was going to be added any time soon. And old media wonders why they’re losing readership. I don’t get it. Actually, they don’t get it. Oops, I digress.

Waddy does a super job here in laying out a framework for segmenting your mailing list and why that matters. What’s beautiful is that this mindset works for all types of businesses, not just 501(c)(3)s. With tools such as Salesforce.com or Zoho’s CRM offering (http://crm.zoho.com/crm/) the possibilities are powerful, inexpensive and nearly endless.

Here is another article of interest (that has been sitting in the to-be-posted pile, so please excuse the delay, the information is still spot on): “Email Segmentation for Higher ROI” by Peter Prestipino (Website Magazine, February 2009).

Don’t forget, targeting your message is not only good for you but it’s even more good (note: the word play was intentional) for your guests. They, just like you, have limited time and attention. The better you stay on *their* message, the more likely they are to keep you in their conversation. It’s not so much about what you want to say, but about what they want to hear. Right? Right!

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Getting (NPO) guests to buy the passion

“Hello? Arkansas? Yeah, It’s Facebook” by Mark Hrywna (The NonProfit Times, 15 June 2009). Great and inspiring article but for the moment try not to be distracted by the social network hype. Using social networks is a tool, not a panacea. It still takes time and resources to use that tool . What’s nice is that when the work is done well then the fruits of that labor can scale rather well (i.e., the pool of guests / donors is large).  It should be noted that Arkansas Children’s Hospital Foundation (ACHF) “recently hired someone to take over direct marketing efforts and social networking.” In other words, to reap the fruits an investment must be made, managed, maximized, etc.

In addition, Ben Tanzer, senior director of strategic communication at Prevent Child Abuse America (PCAA), makes an essential point when he says:

The goal is to create as many platforms and portals as possible, providing people with different opportunities that the organization eventually will cross-link, and as Tanzer describes it, cross-pollinate. PCAA is focused less on fundraising and more on “helping to refine the message so when people learn about the organization they get what we do,” he said.

Being available is half the battle. It is still important for the brand to clarify their message, a message that needs to resonate with their perspective guests. The NPO has to figure out what it is that their guests are willing to buy. Simply asking for money is probably not going to be enough.

Finally, with success stories such as this one the clutter factor is going to come into play fairly quick. Soc-nets are where the guests are so they are certainly not a channel to be ignored. On the other hand, that channels’ ability to deliver “get rich quick” results will in all likelihood diminish as the level of noise and competition increases.

As we at AU like to say, “The internet… You can figure it out now. Or you can figure it out later. But you will have to figure it out.” No pain, no gain, eh?

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Talking tough is cheap. Get going!

“How to stay up in a down economy” by Julia King (Computer World Magazine, 25 May / 1 June 2009). Whether you’re unemployed, under-employed, or even over-employed, Ms. King has some pearls to share. One of the best is:

Don’t watch CNN. It just induces hysteria.
- Paul Glen
(ComputerWorld Columnist)

There is one suggestion we’d like to add, as well as one comment to supplement the article’s list.

Suggestion: Start a blog that speaks to your desired profession. One, it will give you an outlet. Two, it will keep you involved and engaged as well as serve as a real live diary that you didn’t waste your downtime watching Oprah. Three, anyone can fake a resume but over a series of weeks that’s not possible to fake a blog.

Supplement to Ms. King’s point 4: Contact a local non-profit(s) and offer them your pro bono talent. This is good for you (for all the reasons lists for a blog), as well as good for your community. NPOs can also be a good opportunity to develop new skills to break into a new field.

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Can you tweet me now?

“Social Butterflies Can Raise Money” by Michele Donohue (The NonProfit Times, 1 April 2009).  It’s difficult to go a day without someone asking, “What about Twitter?” or “How can I use Facebook?”. True success stories do seem to be somewhat limited at this point in time. However, all hype aside, when an 800 pound guerrilla – make that two 800 pound guerrillas – walks into your room and beats their chests it’s probably wise  to sit up and listen.

Most Twitter articles tend to focus on how you could / should use Twitter. Yet more often that not the blank stare is followed by, “But what do I have to say that that’s important?” While not mentioned directly, this article highlights another strategy for using this tool… Get others to Twitter about your company, event, etc. to their network. It’s possible you might be asking the wrong question. It’s not a matter of what you have to say, but how can you get others to say (good) things about you. Let them define the what, while you focus on supplying whats to Twitter about. It might not be necessary to build your own network as much as try to capitalize on ones that are already there and are sympathetic to your cause / brand.

While we’re on the subject of non-profits, this issue of NPT also had: “Spending more in a down economy” by Tom Pope, as well as “Destroying The Integrity Of Nonprofits” by Richard A. Viguerie. Unfortunately, Mr. Viguerie’s cutting-against-the-grain insights are not yet available online.

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Time for a tune-up

“New Leader Overhauls Ford Foundation” by Stephanie Strom (New York Times, 13 April 2009).  The Ford Foundation is $11 billion strong and actually the second-largest foundation in the country after the Gates Foundation. On one hand this is pseudo feel-good story. On the other it’s another lesson in the need for ongoing analysis, evolution, and marketing. Stand still and the guy / gal / company / foundation behind you will run you down. Ford would know.

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Once is enough?

Study Shows First-Time Online Donors Often Do Not Return By Stephanie Storm (New York Times, Wed 18 March 2009)

Whether you’re an NPO or not this is must-read. The article is just a few paragraphs but if you’re extremely pressed for time the best insights come closer to the end:

“Direct mail may not be a Maserati, but it’s very effective because it is very highly evolved,” said Lori Held, membership marketing director at Trout Unlimited. “We know how to ask for money using the mail, but most organizations are still trying to figure out how to do that online.”

Nonprofit groups face a number of challenges in trying to reach donors electronically, Ms. Held and others said.

For one thing, they must have a team dedicated to fine-tuning and improving their Web site and another team for e-mail marketing, both of which are added expenses. Nonprofit solicitation materials often get caught in systems that trap spam and other unwanted e-mail. Other systems eliminate the compelling images that are so effective in direct mail.

Still, the demographics of online donors are enticing for charities. The study found that of the donors who made at least one online gift in 2008, roughly a third had incomes greater than $100,000, while about one-quarter of those giving in other ways fell into that category.

“I think what we’re learning is that we need to be less worried about what channels these donors use and offer them a variety of channels through which they can give,” said Mr. Smith of CARE.”

Four things:

1) Conclusion: Most people are pragmatic in their charitable giving. This study is strictly from the NPO’s perspective. However, the real gems would be to understand the donors’ decision making process.  It might just be that your average Joe / Jane likes to “distribute the wealth”. Like it or not, if these are the rules then NPOs need to learn to play by them.

2) It would be helpful to know what unique identifier(s) were used to track each donor. Obviously there might be a big difference in the results between using individuals (e.g., Mr & Mrs Smith) or the Smith household. Also, did the study include or exclude anonymous donations? That could in turn effect the percentages calculated.

3) Evidently the Obama campaign actually did quite well in inspiring donors to give smaller amounts repeated times. What was their secret? Maybe that is their secret?

4) It’s nice to know that an AU state of mind just got a bit less lonely.

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