Tuesday, January 4, 2011

Social Enterprising vs Traditional Nonprofits

Long gone are the days where you just start a nonprofit, get tax-exempt status and philanthropists, donors and good-hearted givers just beat down your doors to help you grow your cause through financial support. In times of great distress comes challenges; and opportunity. Traditional nonprofits have seen their fundraising efforts curtailed by the current global economic instability and that can only mean that many of the smaller, more grassroot organizations are operating on survival mode at best. The question becomes 'how can I reconfigure my agency to prosper in prevailing times'?
 
Over the past 17 years that I have been managing a nonprofit agency, I have done my best to not think of building an organization needy of contributions and grants, but to foster the same entrepreneurial spirit that is as traditional as apple pie. No nook or cranny was off limits to analyze for its potential to help us meet our mission. And the most important mission of all is keeping your doors open so that you can help the people your have dedicated to serve. Although not appealing to all, public advocacy has its ups and downs. If you go after big targets be sure that there will be ramifications for taking a stand, and if you remain silent on the issues and causes most dear to the people you serve you are not doing them any justice and should therefore close your doors.
 
As the world turns, the most challenging of times are upon us. Agencies that refuse to 'think outside the bow' and those that stay the course relying on highly competitive granting and the contribution arena will undoubtedly face the most harshest challenges of all. So, in the spirit of giving my two-cents worth, I list 10 things smaller and more nimble nonprofits can do to not only survive, but thrive during the worst of times.
 
 
1. Stop thinking like a nonprofit and start thinking and acting like the 'corporation' you are.
Traditional nonprofits historically took the 'hand-out' approach and for the most part, it has sustained a many organizations. But the new age agency understands its legal structure. Sure you may be a nonprofit organization, but you are still a 'corporation'. In the for-profit world there is a sort of corporate warfare going on for the discretionary cash that people have. For-profits may call it discretionary cash, nonprofits may call it revenue, but in the end it is what financial bottom-lines look like and what keeps doors open. Corporate status is different than sole proprietorship's and should be treated as such. Does your agency have a product or service it can sell on the open market that can boost your revenue?
 
 
2. Align your agency and strategies with corporations and especially small business concerns that can provide products or services needed, wanted or desired by those you serve and those individuals and businesses that support your cause.
Cause-marketing is nothing new and today it is more important than ever if an agency wants to create a stable cash flow. There are numerous for-profit Internet-based companies that offer opportunities for your loyal supporters, staff, volunteers and anyone else that would support your organization because they believe in your mission, are concerned about the cause and would like to financially support your effort. Give them a chance to do so; without them having to budget for it or make tough decisions on who to give to. When you align with a for-profit that sells items your supporters want, need or desire you are only having to ask them to change their buying habits, not come up with more money. We utilize www.marketamerica.com/ibsa, http://www.goodsearch.com/nonprofit/ibsa.aspx, http://ishoptogive.com/, We partner with www.WUCARadio.com for advertising, and Tradebank.
 
 
 3. Get your agency a JOB !!!
Policy makers say it, working class say, and I say it.... get your agency a job. Contracted work is a job based on performance. If you are really good at what you do or at something, get paid for it. I have found it best to secure contracts so that you can do the work at a profit. No reason to ask for more from your giving members and constituents or your congregation so that you can provide FREE services. In most instances, a contract to nonprofits is no different than one to a for-profit. There is a profit margin and this can be utilized to grow your staff, make other upgrades and still meet your mission of providing valuable service to the community.
 
 
4. Learn to utilize 'social media' to its fullest.
Facebook, Twitter, YouTube, LinkedIn,,, you've heard about them and you may have hastily thrown up a 'fan page' or setup an account you don't monitor, but are you really maximizing a worldwide platform that's changing the world? Technology is changing fast and even today what you can do to jazz up your social network profile is amazing. Tweeting, posting, linking, blogging, video, podcasts, etc., is here to stay and those that embrace it will prevail.
 
5. Search for and utilize the talents of those you might have felt were more in need of services, than in wanting to help you advance your cause.
Seldom am I asked 'how have I stayed afloat with all the workload that I have'? But if asked, the answer to me is simple. "I have tapped into the market of youth, young adults and adults that are well equip and knowledgeable of computer uses and utilization of technology in general. rRrely are youth responsible in their homes to input financial data into a family budgeting software, nor are they asked to put together social media sites for nonprofits or small businesses whereas the owners or managers are socially illiterate. Youth of today have skills those losing their jobs don't, and to best prepare them for a world of work rather than a future of competition from around the globe, give them a stake on your turf to change the conditions that many of them care about too. I can't begin to share all they ways youth have played a key role in entering necessary data into a database, made website changes, or hooked up a gadget or widget in which most adults wouldn't have a clue where to begin. I can't share all the times an adult client with skills fixed a wall, fixed a plumbing problem, volunteered at an off site project,,, simply because they saw it needing to done and they asked to do it. Empower those to be of service; regardless of how they came through your doors.
 
 
6. Eliminate bureaucracy and cut the fat from your staff and governing board.
Need three forms to get one thing done? Do you have to call an emergency meeting to act on a time-sensitive opportunity? Are people governing your agency really just fancy titles and upper-class positions, yet they don't really substantiate you keeping them on your board? Let's face it, if their titles and positions are not changing the financial outlook or performance of your organization, then why do you have them around? Starting a nonprofit should not be a 'feel good' act but a 'gonna get the job done' mission. I have never come across a sprinter that ever finished 1st place while running with dead weight around their neck and ankles.
 
7. Seek out and partner with agencies that you share a common vision, mission, optimism and values system.
If two heads are better than one, then two agency can best meet the needs of one individual. Instead of seeing other agencies as competitors, can you find a few that can work together to compliment each others strengths and diminish each others weaknesses? Funders know that no one agency can do it all and tactical training instructs how teamwork can get missions accomplished. We provide community service activity and refer those needing counseling to other nonprofits who are also supportive to our agency and cause. Partner agencies counsel individuals and refer them to us for employment, training or small business counseling and assistance. It's a win/win/win and it's what's best for the referring agencies, funding agencies and those clients that we collectively serve.
 
 
8. Setup your own video production strategy, find the talent, and get your story out to the world.
Back to Youtube, Google Video, Vimeo. The Internet is populated with video covering a wide variety of areas. Documentaries, music, self-help, etc... If you have a story to tell or facts that need to be told over and over again then the most effective avenue these days is online videos. Find you a volunteer, student intern, or even contract out when necessary, but if a picture is worth a thousand words, video is worth a million. BTW: YouTube is the second largest search engine on the Internet.
 
 
9. Cash may be king, but never overlook the value to 'bartering'.
We have partnered with Tradebank as a 'Media Associate because 'bartering' is a proven route to lowering cash out; while generating cash in. Instead of using real dollars for our printing and advertising, we have come to rely on using 'trade dollars' which also fosters our support of local and small businesses.
 
10. Do unto others as you would like them to do unto you!
If you want the average person to support your cause then be prepared to support those causes dear to them. Many times an agencys leadership and staff can get so stuck on themselves that they fail to realize that it is the existence of others that makes the whole stick together. We're all in this together and fostering cooperation, collective purpose and common ground accomplishes more than going it alone. You own a computer business and support our organization, when we win a grant we buy our computers and systems software from you. I offer website hosting you do business with me and I help you get your site up, running and seen. Again, it's a win/win.
 
These are just a few of my thoughts and are soley based on what I have had to undergo to survive many years as the 'non-traditional' agency. As years went by and billions of dollars went to the same organizations, it was easy to ask 'what was wrong with us', but the answer really lie in what innovative practices could we bring to the table or adopt that could separated our agency, mission, goals and values apart from the rest. Any organization that holds 'performance' as its standard will do well if they streamline their operations, surround themselves with dedicated staff, volunteers and partners, and boldly participate in opportunities found off the beaten path.
 
Add to, dismiss or ponder,,,, the world is changing and so must the way nonprofits do business.
--
Great minds discuss ideas. Average minds discuss events. Small minds discuss people. - Eleanor Roosevelt
 
 
IBSA, Inc.
629 SE Quincy, Suite 102, Topeka, KS 66603-3921
(: 785.422.0761 (office) | ( 913.735.4272 (KC Metro) | *: admin@ibsa-inc.org

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