Is Your Non-Profit Cause Distinct?

First shown at 3 Wins Consulting.

Separating yourself from the flock of charitable organizations is becoming more and more difficult. When we say “flock”…just how many is that?

Here’s the math on American charity groups from the National Center for Charitable Statistics:

• 960,000 public charities
• 115,000 private foundations
• 450,000 other nonprofits (Chambers of Commerce, Civic Leagues, etc.)
• 380,000 religious groups
• And the grand total shows about 1.8 MILLION charity groups.

What did those charities earn?

• 2007 total revenues for nonprofits was $1.4 TRILLION
• 2007 total expenses for nonprofits was $1.3 TRILLION
• 2007 charities reported total assets worth $2.6 TRILLION

Where did the money come from?

• 22% from contribution
• 67% from program revenues
• 11% came from “other”…like special event income
• individual contributions amounted to $229 BILLION
• foundations gave $45 BILLION

The numbers are impressive…and more than a little scary. Now let’s adjust for reality by applying the “80/20” rule; let’s assume that the top 20 charities gather 80% of the revenue. This would show 360,000 organizations gathering about $1.12 TRILLION…and the remaining $280 BILLION shared among 1.45 MILLION charities. Or, to put it another way, the big ones get $3 MILLION…the little ones get $200,000. To go further, this also means we should expect 1,200,000 charitable organizations will earn less than $50,000 this year.

Before you start picking out a tall building with roof access…there’s some great news buried in those numbers. Take another look at the revenue sources (89% from contribution/program and 11% from individual contribution). The competition will be for the 89% of contributed and program dollars. The real opportunity lies with the 11% that falls under “other income”.

If you fall in the group earning less than $50,000/year, separating yourself from the herd is relatively simple. Focus on your constituents. If your cause doesn’t hold the mental real estate that maybe the United Way, or Heart and Stroke does…attach yourself to an event or activity that does have universal appeal. It will likely mean a lesser individual contribution but the base expands exponentially. If the event is appealing and your cause(s) are relevant, the tendency to engage increases and keep in mind that it’s far easier to gather one dollar from 50,000 people than it is to gather 50,000 dollars from one person.

Maybe it’s time to break away from the herd?

Failure Is An Option

First shown at 3 Wins Consulting.


Sometimes the difference between success and failure is a very fine line. Seth Godin refers to that odd little point in time when a project stalls or slows...as a "Dip".

We offer a few simple but remarkable observations from the book:

"The most common response to the Dip is to play it safe. To do ordinary work, blameless work, work that's beyond reproach. When faced with the Dip, most people suck it up and try to average their way to success."

"It's human nature to quit when it hurts. But it's that reflex that creates scarcity. The challenge is simple: Quitting when you hit the Dip is a bad idea. If the journey you started was worth doing, then quitting when you hit the Dip just wastes the time you've already invested. Quit in the Dip often enough and you'll find yourself becoming a serial quitter, starting many things but accomplishing little. Simple: If you can't make it through the Dip, don't start."

"... the real success goes to those who obsess. The focus that leads you through the Dip to the other side is rewarded by a marketplace in search of the best in the world. A woodpecker can tap twenty times on a thousand trees and get nowhere, but stay busy. Or he can tap twenty-thousand times on one tree and get dinner."

"The next time you're tempted to vilify a particularly obnoxious customer or agency or search engine, realize that this failed interaction is the best thing that's happened to you all day long. Without it, you'd be easily replaceable. The Dip is your very best friend."

"The Dip" should be required reading for every non-profit. If you're stalled on fundraising, discouraged by the lack of people to stick their hands in the air to volunteer or head up committees...stay with it. There's every likelihood your original ideas are sound but they may need some adjustment or updating to become current and relevant.

Non-Profit Strategy

First shown at 3 Wins Consulting.

First, let’s figure out what we’re talking about when we say "strategy".

Strategy is “an organized pattern of behavior toward an end". The word is a derivative of two Greek words: "stratos" and "ago" which mean "army" and "leading", respectively. A strategy provides the overall means to overcome an obstacle, the means to reach benchmarks along the way and the positioning and posturing of resources. So developing a strategy is not the same as developing a plan.

Strategy and plans exist in two different worlds. A plan assumes a controlled environment without variables like competition, for example. Strategy assumes an uncontrolled environment where the variables are considered. A strategy is flexible; a plan is rigid. A strategy can shift but a plan is based on a specific set of circumstances. Strategy is the art…planning is the science. Strategy is knowing how to make a picture emerge from a canvas…planning is where you buy the paint.

Let’s say your group wants to become the nation’s most recognized authority in supporting left-handed golfers. You devise a strategy that includes media, sponsorship, manufacturers, web, print, radio and several notable spokespeople to endorse your message. Phil Mickelson and Mike Weir are in and Callaway Golf wants to profile their irons and drivers. Prior to launch, Phil and Mike pull out and start their own cause and take Callaway with them. Does your strategy change? Perhaps not. Do your plans change? Definitely.

For non-profits, a strategy must include a few things for the group to remain viable. A variety of revenue streams allows the group to weather tough economies and capitalize on good times. Through tougher times, we expect competition to increase and the non-profit has to position itself accordingly to gather favorable attention from clients, sponsors and patrons. This might mean an increase in web activity or forging partnerships with other non-profits to gain resources and mass.

So your organization (if it is to be strong, healthy and relevant) should weigh all possible risks and scenarios when setting your strategy and mitigate the ebbs and flows with the biggest base of supporters possible. And it shouldn't rest on the whims of a couple lefties.

Blue Angels Ride Along - Terrific!

I just had to share this...click "Close To Play" at the bottom of the ad box.

Blue Angels Online

Cars – Gadgets – J.D. Power

According to J.D. Power, we want gadgets in our cars. When we’re looking at vehicles, we consider a number of criteria: safety, fuel economy, performance, comfort, color, warranty, dealer reputation, and price. Trumping the list of features we prefer…is entertainment and connectivity.

I come from a place where a car owner would brag about having a 454 with a 4 barrel, hi-speed rear end, Hurst shift kit, chrome everywhere and pulling a quarter in 10 flat. That same guy is now talking about a car that gets 40 mpg, has 5.1 surround, backup cameras, Bluetooth, side-curtain airbags, iPod connection, GPS and a DVD player. “So…what’s in the dash?” has replaced “What’s under the hood?”

Among the toys we’re looking for...killer sound ranks the highest. GPS is also high, but interest wanes when the price of the option is revealed. Two-thirds of us want to use a portable music player through the vehicles speakers and 30% of us also want to connect a smart phone through the audio system. 70% of us want Bluetooth in the cars and among the vehicles out there now with Bluetooth…only half the owners actually use it.

Aside from the toys, bells and whistles...fuel economy "should" be a vital consideration for anyone buying a new car. Right? Maybe not. J.D. Power also shows the vehicles with the biggest gains month over month (May 08 vs. May 09) are full-size sedans, SUV’s and vans. Domestics outperformed imports when comparing sales from May 2008 to May 2009 and the list of vehicles with the biggest gains include:

• Lincoln Town Car (up 103%)
• Chevrolet Express (up 11%)
• Cadillac Escalade (up 21%)
• Buick Enclave (up 40%)
• GMC Yukon (up 43%)
• Pontiac G8 (up 70%)

When you look at the list, it becomes clear we’re a pretty funny bunch. Even though we KNOW gas prices are going to rise again…and even though we KNOW there might be a better choice for the planet…there’s just NO WAY we can pass up a smokin’ hot price on an Escalade.

So, I’m not alone: there are, apparently, a few of us caught deciding between “what we’ve always wanted” and “what we should probably do”. Regardless, I’m glad to hear any story about the auto industry that includes the word “gain”. I’m also happy that there’s some public preference for buying domestic vehicles…especially since we bought the companies.

On another note, I’d appreciate a little help finding a 72 Cutlass 442 convertible…with factory surround, GPS and Bluetooth.

Four Great Ads

If you have 2 minutes...here's four great television ads.

Sun Tzu for Non-Profits

First shown at 3 Wins Consulting.

Historians still question the existence of a General named Sun Tzu. That said, “The Art of War” and its various adaptations are viewed as required reading for developing strategy. Based on references made in the original text, it’s suggested Sun Tzu was alive somewhere between 722 and 481 BCE. “The Art of War” presents a philosophy of war for managing conflicts and winning battles across any environment and the lessons have merit to non-profits fighting for survival in today’s economy.

"Use the normal force to engage; use the extraordinary to win." -Sun Tzu-

It’s alright to think big and, in fact, it’s preferred. When you’re doing you’re planning, keep in mind that it usually takes just as much time and effort to accomplish small goals as it does the big ones. Also consider that to capture attention, it’s expected that your message be disruptive and even intrusive to gather the greatest benefits.

"Tactics change in an infinite variety of ways to suit changes in the circumstances." -Sun Tzu-

Your plan needs to be flexible because, let’s face it, things will change. Non-profits that relied solely on a small number of large benefactors are scrambling as those bodies tighten budgets to weather this economy. The successful non-profit includes a tactic that involves more people and decreased levels of involvement to ensure solubility. While everyone has been affected by the downturn, the groups with a diverse base of supporters are far healthier.

"Speed is the essence in war. What is valued in war is a quick victory, not prolonged operations." –Sun Tzu-

You’ve heard the term “paralysis by analysis”. So often, we see groups stalled at the planning stage and not actually doing anything. Napoleon believed a plan was two-thirds analysis and one-third was a leap in the dark. Will Rogers offered, “Even if you are on the right track, you’ll get run over if you just sit there”.

"When torrential water tosses boulders, it is because of momentum." –Sun Tzu-

When you’ve hit one out of the park, get going on the next project. In fact, your plan should be a series of events that build one upon the other.

While planning is important, the key is execution. George Patton explained, “A good plan, violently executed now, is better than a perfect plan next week”. Perhaps the easiest way to get at the results you need for your group is to work backwards. Define the goal (make it big), measure your resources, establish the gaps, move to fill the shortcomings, assign your course and act. Its also expected that you not have all the answers for all the problems…and its okay to ask for help.

SPAM

A quick glance through my junk mail folder suggests I’m only a few clicks away from:

• more money
• a cheaper mortgage
• a new Russian bride
• a dynamite deal on Viagra
• really getting to know Britney Spears and Paris Hilton

It’s the math on Spam that becomes a little terrifying. Thre are 210 BILLION emails sent every DAY and that works out to more than 2 MILLION emails a SECOND. A CIO interview with Microsoft offers that every day, MSN Hotmail processes about 4 billion email messages and up to 90% of the volume is spam. Aggregate the whole gamut of providers and the global average for unsolicited mail rests around 80% of the total volume (about 168 billion spam messages a day). eMarketer shows that spam is decreasing but show the findings as a percentage. Knowing that overall computer and internet use continues to rise, let’s assume the number of spam messages is also growing but at a slower rate than utility.

So, why do they do it? The simple answer is money. The book “Inside the SPAM Cartel: Trade Secrets from the Dark Side” details one series of events for a single spammer looking to bring the masses to a porn site. In order they are:

1. buys 2 million email addresses for $200
2. filters addresses against a known list of bad addresses
3. sends 10,000 spam emails in 17 minutes
4. 967 people follow link within 12 hours
5. earns $3000

Spammers know that conversion is about 10% (one in ten of us will follow a link). While there’s money to be made creating and sending the messages, the real gold might be the sale of a proven list. In the example above, the spammer buys 2 million addresses knowing that 99.5% of them are useless. The bad addresses are sold with the good ones and the bad ones are filtered out. For us, we need to be a “bad address” and we can get there by not being a “good address”. A “good address” clicks on spam links.

Now, to be fair, the Hormel company in Austin Minnesota hasn’t really put up too much of a fight when their brand name became one of the most common noises heard across the planet. The official SPAM site is tremendous and if offers recipes, games and store where you can buy SPAM logo’d items. I think they’re missing the boat though; shouldn’t SPAM.com also provide information about…well…spam?

I hope my new Russian bride likes the new work at home job I got her...and my fingers are crossed that Paris and Britney enjoy the SPAM can wine charms.