When the platform changes, the leader changes

Dear Fundraising Friend:

I was reminded the other day of when WordPerfect (Remember that?) had almost a monopoly on word processing when DOS (Remember this?).

Then Windows came along. And the guys over at WordPerfect felt they didn’t need to switch to this new platform. Why should they, after all they’re #1!

One year later, they were ghost.

When the music platform shifted from record stores to iTunes, Apple became the new leader and many record labels disappeared.

Anyone remember Atari? Nuff said.

When the platform changes, the leader changes. Over and over this rule applies. It always does.

Think it only applies to software? Think again.

TV switched from radio waves to cable. Books from real bookstores to virtual ones (“Anyone heard of Kindle or iPad?”). Next on the list are cars from gas to solar or hydrogen or electricity.

Now the platform for building donor loyalty is changing. Just today: mazi (“It means come together in Greek.” ) was submitted in iTunes.

Here’s the thing. It’s called “the fundraiser in your pocket.” What’s great about it is that nonprofits and the public can work together to make the world a better place.

Does your organisation have a service? List it on mazi. Or a program that needs people or funding? List it on mazi. Special event about to happen? List it on mazi.

Now here’s the best part: Seeking donations? Ask for one using mazi.

That’s right. People can now use their mobile phone to donate. And they’ll even get a receipt once they’ve done it.

Me and a small team of volunteers came up with the idea. We felt there must be thousands (perhaps millions) of people who don’t know how to help in meaningful ways. So we created mazi to help them along the way.

And giving the app away for free.

What better way to connect people with issues and nonprofit organisation relevant to them, so lasting relationships and meaningful action is fostered.

Once again, the platform changes. Insiders will become outsiders and new opportunities present themselves.

Excelsior!

They want to believe

Dear Fundraising Friend:

In the beginning, fundraisers focused on features. Fundraising was new, starting a charity was hard, and not many people wanted to help out.

Then someone convinced us that despite what donors claimed, they really made decisions based NOT on logical feature-for-feature comparisons, but on an emotional response. So we shifted to benefits, and we all sought the answer to a donor’s “What’s in it for me?” question.

We looked for our “unique selling propositions” that we knew (or hoped) was a hot button, implying that what we offered made them happier, nobler, connected… A person others would respect, love, or envy. We called these “meaningful benefits,” things that the prospective donor valued.

This idea of meaningful benefits still applies, but something has shifted. Something big. Something deeper.

Our donors are now looking for meaning.

Shallow goals are certainly still around for most of us. But the search for meaning seems to be taking hold.

So how do we add more meaning?

I mean if supporters want to believe in something more… something bigger, what are we as fundraisers doing to support that?

Do you know how Steve Jobs pulled Scully away from Pepsi. He asked, “Do you want to keep selling sugar water to kids, or do you want to change the world?” The Apple faithful feel they’re part of a world-changing movement. You and I (Well, I do.) might not understand how an iPod or iPhone changes the world in any meaningful way. But that’s not the point. If Apple has managed to take people a journey that feels more meaningful — that’s what matters. And it isn’t always about the experience… sometimes it’s about the company itself.

Most of us are good at pulling “benefits” from the list of features. But how do we come up with the questions that transform benefits into meaning?

One way is to just keep digging. The next time you figure out a benefit, play the Why, Who Cares, So What game, and don’t stop asking until your answer touches something a little deeper.

In other words, when the CEO or program manager says, “Our helpline will help people with violent tendencies find support more easily…,” don’t stop asking “and this matters… why?” until your answer has something to do with the quality of a supporter’s life. For example, your answer to the “Why finding support quickly matters?” question might be, “Because making society safer matters to our supporters!“.

This idea is important and powerful.

And remember, this isn’t about you. You’ll find as your questions focus more on your supporters, and less on you, your answers start to change. At first, you may think the difference is subtle–but it’s actually HUGE.

Excelsior!

You’re NOT a Mac. I’m NOT a PC.

Dear Fundraising Friend:

You’ve probably seen the Mac VS PC ads from Apple that feature these two guys? They’re popular (at least 24 ads). I’m a big fan. And those ads really work with me.

This type of comparative ad is legal, and you see it all the time. But not in the world of nonprofit… Which led me to wonder, “Are charities and nonprofits simply not bold enough to use ads like that?”

Can you picture it?

• For every $20 you give, we provide 125 patients with test for HIV. Charity X only does 75.
• Last year we fed 154,000 hungry children. Charity X only feed 75,000.
• More of your money goes directly to our mission than any other charity.

I don’t know about you… But now that I think about it. I don’t like this.

First of all, do you really want to give your competitor free PR?

But also the only purpose of these ads is to mention a competitor and then pull a “Brand Smackdown,” no matter how mild, on them. That could lead to people losing their trust in what we all do.

Excelsior!

Think Corporately: Part 2

Dear Fundraising Friend:

You might recall that I ranted about how I thought nonprofits can benefit more if they act like a business in a free market. And then went on to suggest a way forward.

Well… I’m at it again.

Did you know that the word “profit” comes from Latin words meaning “progress” or “to advance“? Which is exactly what our sector is about. Yet, our label “nonprofit” literally means: No progress. No advancing.

Even when we think of how we use the word today, as in a monetary surplus, our sector is the ONLY sector whose name begins with a negative. That word “nonprofit” makes me feel like:

• We’re apologizing for doing good.
• We know what we fight against; but not what we fight for.
• We’re trying to transform (or more precisely – not trying to transform) society under a false impression that we do.

I don’t know about you. But this is unfair and makes me mad.

After all, we could be the first generation to better treat or cure many diseases, illnesses, and disorders on this earth. Our grandchildren may see a day without hunger or abuse.

We hold in our minds a reality never before conceivable in human history: A world free of most of the suffering that has plagued us since our very beginnings.

Our greatest question isn’t whether we can make this dream a reality. But what stands in our way?

I believe that answer is simple… It’s us.

And I don’t mean “us” like in “you and I”. But “us” as in “all of us” A.K.A. Society.

Because as long as Society does not embrace a long overdue re-definition of charitable giving, we make the battles we face longer and harder.

Because Society’s current definition is the opposite of what we do. We give resources to charities and nonprofits because we do want progress. We want things to change.

Deep in our hearts, we are driven to make a difference. So our lives matter.

That means it’s time for charity born of reason.

Glabraith wrote of economics in 1958:

“We are guided, in part, by ideas that are relevant to another world; and as a further result, we do many things that are unnecessary, some that are unwise, and a few that are insane.”

Sound familiar?

If so, then STOP BEING A PART OF IT.

It’s our job as fundraisers, social marketers, and supporters of charitable giving to reconcile philanthropy and capitalism. So we access new tools that build solutions for our world’s most urgent challenges.

We must deconstruct our current view of philanthropy. Like pioneers of days gone by, we must find a different path.

Excelsior!

Is your cup half full or half empty?

Dear Fundraising Friend:

Not tracking and measuring your fundraising efforts? I suggest you get right on it. After all, community building is about putting your money in places that connect and build relationships with real people.

One thing I’ve heard from CEOs and clients is that they understand that they should be tracking something — they’re just not sure what or (when they do know what) how to look at it. Here’s my suggestions to you:

Growth. This is something everyone understands and can count. Number of followers or fans or RSS subscribers are good benchmarking tools. For instance, if the number of people following you is growing relative to the number of people you’re following, you’re probably on the right path. It doesn’t matter if you have 50 or 500 or 5,000 (or 4 million — Damn you @aplusk) It’s really about how many people are interested in what you’re doing that matters.

Credibility. Or who’s talking about you? Knowing this is incredibly important, because you may need to respond to people what people are saying about you. Create messages that resonant so they spread widely. Setting up a routine to monitor your credibility doesn’t have to be a hassle or time-consuming.

Conversation. Now look at who you’re talking to and what you’re talking about. Are you helping people get to know you and your cause better or are you going on about the next appeal? Please avoid the general ask for money. Instead, start asking questions and start talking about what you do. Be inspiring. Then they’ll become more loyal. So they choose when to give you their money.

Sentiment. Once you know who’s talking about you and what you’re saying to them, your next step is looking at what people are saying about you. The fact that people are mentioning you, doesn’t really tell you a lot about how people feel about you. Listen in from time to time, especially around major appeals and campaigns.

Referrals and Conversions. This is the most important metric to understand the health of your tribe.

I suggest these tips because, if you’re not measuring it, you’re just playing with it.

Excelsior!

Donors shouldn’t think about YOU

Dear Fundraising Friend:

A bit of advice if I may: If you care what your donors think of you…

STOP IT!

If you want to bring passionate supporters:

“Care only about what your donors think of themselves as a result of interacting with you.”

Excelsior!

Lesson to be learned

Dear Fundraising Friend:

Think long and hard about this:

In the for-profit world, nothing happens if you don’t have a compelling product with a compelling story that gets its idea out in the market so people act.

Excelsior!

Re-branding good

Dear Fundraising Friend:

I just finished Bill Clinton’s book: “GIVING: How Each of Us Can Change the World.” And I now have a problem with how we describe our sector. Nonprofit. It’s like we know what we don’t work for; but not what we do work for.

Our self-imposed badge says we certainly don’t work for money. And in a way, that’s true.

Clinton’s book turns the spotlight away from him and shines it brightly on a some extraordinary people and organisations offering not just money — but their skills, resources, and ideas.

So now I think the word nonprofit is both inaccurate and negative. Think about it. Our organisations do positive stuff that help real people and must make a profit so our good work happens.

Too many well-meaning people think nonprofit suggests that any dollar we get mustn’t go towards rent, people’s salaries, or promote what we do. May be that’s why the public gets so upset whenever they learn that sometimes 100% of their money doesn’t go directly towards the good work of the cause. (Oops… can I say that out loud?)

But I think I may have a solution. What if we call profit surplus and change non (which is a negative) into social (which is positive)?

After all, we tackle the really hard problems that are “down the street and around the world.” Climate change, world poverty, famine, disease, inhumanity, child abuse, gender inequality, abduction, modern slavery… The list goes on and on.

I think if we act on Clinton’s call to act and mange our social profit enterprises (Don’t worry, you’ll get used to it) like our for-profit cousins, our impact will be wider and deeper than any other sector.

Excelsior!

Lapsed in Translation

Dear Fundraising Friend:

Trick question: “When is a donor, not a donor?“

As a donor myself, one thing that really annoys me is implying (even in the most politest of manners) that my continued support is late or stopped. When, to me, it’s not.

I am forever gobsmacked how this habit is deeply rooted in our fundraising sector as a whole. Perhaps it comes from believing the labels we put on donors who haven’t given within a certain amount of time as “lapsed”. For some nonprofits, this could be as short as 13 months.

That’s OK when you segment. Just don’t tell your donors in that segment that you think they have gone away.

The fact is a lot of donors think like this. Across a year, they dutifully put away hard-earned cash to send one special gift to select charities. And that’s calendar years, not 12 consecutive months. Plus, they may not send their gift any particular time of the year.

So, when Aunt Gail gave in February 2007, March 2008, and June 2009, and not yet in 2010 (although she will as soon as she gets her tax money ), in her mind, she is still giving once a year. Once a year, for the last 4 years. Her charity (which may be yours), on the other hand, might say she lapsed in February 2008, again in March 2009 and is about to again in June 2010.

I’m sure some donors don’t mind it when you mention that ”We haven’t heard from you,” or “We want you back,” if it has been several years since their last gift. But speak to donors (like me and Aunt Gail) who feel we’re loyal annual givers, and you risk weakening rather than strengthening the relationship you’re cultivating with us.

Excelsior!

Strangers and Friends

Dear Fundraising Friend:

A stranger is understandably suspicious of you.

A friend gives you the benefit of the doubt.

A friend is someone who has connected with you — someone with a history. If you’ve kept a promise to someone, then you’re a friend. If you’ve changed someone for the better, then you’re a friend.

Make it a habit to market to friends much differently than to strangers.

Excelsior!

(PS. I want to quickly distinguish friends from followers (the people who have a digital link to you – but no real connection). Followers are basically strangers. But can (over time) become friends. And, while we’re at it, the moment you treat a friend like a stranger (“Let’s just send everyone the same mailing. It saves money.”), they’re not your friend any more, are they?)