Increase ROI Without Sacrificing Innovation

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By Derrick Feldmann, CEO.

Return on Investment is a common threat to experimentation in the nonprofit community.  When a nonprofit is worried about the bottom line, there isn’t a lot of energy left over for creative brainstorming sessions or grand ideas for big changes.

It’s understandable that organizations would be devoted to ROI without allocating enough energy to new approaches to giving and fundraising.   As understandable as it is, ultimately it means the organization will not broaden their horizons when it comes to new techniques such as online giving, social media, and text.  When their current tactics stop yielding positive results, there will not be any replacement tactics ready to contribute to ROI.

It’s time for ROI and innovation to coexist peacefully within the nonprofit sector, and yes—it’s possible. So how do we balance ROI with experimentation? Simple – find your Research and Development (R&D) Donor who can lead the way for internal organizational innovation.

In the for-profit world, most corporations have some form of R&D when it comes to budget and or staffing and they devote time and resources to innovation, testing, and creative development of new products. The nonprofit sector doesn’t have the same emphasis on research and development because money and staffing is tight.

Lack of money and staffing for R&D can be circumvented, however, if fundraisers find donors to support their ideas. These donors don’t just support your organization, but invest in your organization’s innovation. Board members, major donors, and other entrepreneurial constituents could lead the way in your organization’s research and development by providing the human and financial resources for important testing.  Many of these donors already understand the importance of R&D anyway, having business experience that relies on this department.

By getting donors to underwrite costs of text campaigns, new software, and other approaches to fundraising, you will enter into each experiment not with an ROI in mind, but rather a pure R&D emphasis that will help you understand the worthiness of the next big fundraising idea.

Be brave. Experiment. Include your donors in the process. You may be surprised at their interest in your innovative thinking.

The New Nonprofit Storefront – Are You Open for Business?

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By Derrick Feldmann, CEO of Achieve

“We don’t have a place to put our logo for everyone to see.”
“We have an office, but nothing really to showcase.”
“We are not an organization that runs programs out of our office.”
“We don’t have anything relevant to visitors.”
 
Have you said or heard statements like these? We often hear such comments from organizations that feel they lack a “sense of place” or a “storefront” – that physical presence they believe is essential to gaining respect from the community and allowing others to experience the work they do.
 
Today, though, organizations have another option, a “storefront” that’s markedly different from traditional bricks and mortar: the website, which can offer a sense of place and tangible presence for organizations that lack a physical place.
 
When you think of a storefront, you might think first of a local restaurant or coffee shop. The word reminds me of my favorite eatery: Café Patachou, a local restaurant in my Indianapolis neighborhood. Thanks to a laid-back vibe and conversation-friendly setting, Patachou is known as a “Student Union for Adults.” So, how does my favorite storefront match with the notion of a website as a storefront? Let’s consider a few key points.
 
An Inviting Space
At the Patachou I frequent, recent renovations created outdoor seating and a light, clean and modern indoor décor that’s’ always accented with lively discussion. All in all, it offers an inviting place for the hungry and the conversationally deprived. When I walk in, I’m usually greeted by familiar Patachou employees, who welcome me, ask how I’m doing, and tell me which seats are available.
 
Now, compare that picture to your organization’s website. When interested constituents visit your site, are they met by an inviting space? Do they feel welcomed? Do you thank the visitor for stopping by and sharing an interest in your work? Do you help visitors understand your cause, and direct them to where they need to go? Do you help them create a memorable experience from the first time they arrive? Do you use video, new media and other methods to communicate your openness?
 
Discussion is Encouraged
At Patachou, the tables are the right size and shape to encourage discussion, allowing diners to talk, converse, make business deals and celebrate the latest happenings with friends and family. Along with the standard restaurant four-top table, you’ll also find bigger tables that accommodate large groups that want to feel like they’re around the dinner table at home. The result – an opportunity for diners to share thoughts and ideas – leads to stronger relationships and a tighter bond to the restaurant.
 
Does your website provide a setting for discussion? Are you using social media, chat, and other forms of discussion? Do you encourage conversation by asking for comments, feedback and interaction with the leadership? Do you invite people to share key pieces of information with others through share buttons? Do you offer your contact information in a way that is accessible and easy for the visitor to grab it and pick up the phone?
 
Consistently Pleased
At Café Patachou, my favorite menu item is the cinnamon toast – sometimes it’s the main reason I go to Patachou. It might sound like a simple dish, but Patachou has a special knack for loading cinnamon and sugar onto fresh sourdough bread. Sometimes, when I am trying to be healthy, I opt for a half order. I might get a strange look from my fellow guests, but the wait staff is always willing to accommodate. And if I decide to try something other than my favorite dish, I can count on Patachou to meet my expectations.
 
Do you offer a consistent experience for your website users? Do you allow them to tailor the experience to their needs? Do you provide ongoing relevant information consistently, so that when visitors check back, they are pleased with what they see? Better yet, do you offer enough information and resources or content that screams to the visitor, “You’ll want to hang out on our site, because there’s more where this came from”?
 
Build your virtual storefront
If you are about to embark on a new website project, or simply considering some tweaks to your current one, think about your favorite storefronts. Create a new experience and approach. Become a consistent, inviting host for conversation. And offer something that, like my favorite cinnamon toast, is flavorful and fresh.  Now all of this talk of Patachou has made me hungry. To my fellow regulars – Ernie, Mark, Liz, Theresa, Dave, John and Travis: I look forward to sharing a cup with you soon.
 
A Brief Note About the Achieve Storefront
Achieve is embarking on its own storefront change. This month we are relaunching our website with a new design, adding new functionality for the people we engage, educate and involve in our work. We are going to offer a revamped Achieve Access portal that will encourage discussion and offer a new way to share comments and learning. We also will provide a new space allowing you to navigate our blogs and find articles relevant to you. If you have an interest in becoming a beta tester on our site, send me an email  and we will sign you up – and give you a gift in exchange for your time and feedback. Look forward to the new site in mid-July. As always, I encourage and desire feedback. Please, let me know: What can we offer to create that memorable experience for you?

Making the Case for Engaging Millennials…

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by Ted Grossnickle
 

JGA and Achieve have worked to understand the ways Millennials engage, volunteer and give because we see the important role this audience of 20 – 35 year olds will play in the future of philanthropy.

But we have seen many organizations struggle to make the case that Millennials matter. What we are learning is that for some non profits, there is a real divide or obstacle to changing their practices to meet the needs of this growing group.

We frequently hear in board meetings and among development staff that they don’t see the value in focusing time or efforts on trying to understand or engage this generation. The mental calculus seems to be: “Well, they are not giving that much money right now and I have larger more pressing things which command my attention.”

Old habits are tough to break. Experimenting with new approaches and moving away from “this is how we’ve always done it,” may mean changing how you are funded and approved in your work.

For these reasons, there remains a contingent of those in charge of advancement or volunteer efforts that just don’t pay much attention to this generation of future donors — a decision that will undoubtedly have repercussions later.

So whose fault is this?

It might be that some of your colleagues don’t understand that persons this age do want to be engaged and involved and simply require some new ways to get them to do so.

If it’s a question of not understanding how to engage them, I urge you to look at recommendations provided in the 2011 Millennial Donors Report or join us for MDS11, a virtual conference and conversation on exploring new methods of engaging Millennials.

But it might be something else.

Suppose we do a better job of conveying to our colleagues- those in charge of advancement and volunteer efforts- that this is ALL about the future?

Have you talked with your colleagues about the following?
  • What percentage of your donor base are aged 20-35?
  • How many are visiting, volunteering or giving right now?
  • How many email or cell phone numbers do you have for them? Are you making strong efforts to even capture those?
  • Have you shared the 2011 Millennial Donor Report or a summary with them? With your advancement committee? (It’s available at www.millennialdonors.com )
  • Has your volunteer committee asked for a plan to engage younger donors and friends?
And this…
  • What happens to your Millennials if you don’t capture them? Who will?
Maybe it’s time you learn to make the case for the future…