Unconscious Giving

In the latest Stanford Social Innovation Review, Angela Eikenberry, assistant professor in the School of Public Administration at the University of Nebraska at Omaha, takes issue with cause marketing as a social good. She posits, “From pink ribbons to Product Red, cause marketing adroitly serves two masters, earning profits for corporations while raising funds for charities. Yet the short-term benefits of cause marketing belie its long-term costs. These hidden costs include individualizing solutions to collective problems; replacing virtuous action with mindless buying; and hiding how markets create many social problems in the first place. Consumption philanthropy is therefore unsuited to create real social change.”

As a pioneering advocate of cause marketing concepts and strategies, myself, I must admit that Professor Eikenberry managed to stop me in my tracks. Conceptually, I’ve always considered win-win transactions that help others and need— and grease the cogs of our free enterprise system as clever marketing strategies. However, Eikenberry’s term “consumption philanthropy” rattled me. She contends, “It devalues the moral core of philanthropy by making virtuous action easy and thoughtless.”

I think is helps to dissect her ideas here. On one level, I’m not so sure it’s a bad thing that we take philanthropy off some moral pedestal and weave into our fabric of everyday awareness—making giving a part of living. I’m not so sure we should reserve it for Sunday mornings of practiced piety when we are supposed to be behaving with moral fortitude. I think the part that resonated for me was the “thoughtless and mindless” language.

I do see philanthropy as a conscious act. When it is “mindless,” we as donors miss the “joy and heart” that can make giving—transformational, as opposed to transactional. The act of giving connects us with God and the very source and beauty of our creation. Transactional or “consumption philanthropy” may diminish the motivational component of generosity. It’s related more to the purchase impulse when the trigger is tied up in one’s justification for consumption.

Her assertion that “it obscures the links between markets—their firms, products, and services—and the negative impacts they can have on human well-being” and therefore “compromises the potential for charity to better society” is another interesting one. As long as we ask corporations to support philanthropic causes, we will always have an inherent tension between the corporate profit motive and social needs. And that’s why – even with all the brilliant cause campaigns and social media initiatives underway, nonprofits can expect only a small percentage of their support from the corporate sector. A nonprofit generally raises only 5 to 15% from corporate giving, including money raised from cause marketing. Even cause marketing powerhouse Susan G. Komen that raises close to $40 million from cause marketing raises ten-fold that amount from other sources.

As for the idea of that consumption philanthropy “distracts the giver from grappling with the issues,” that may be the case. But, as I preach in my own social media consulting work, nonprofits must be constantly honing a full array of fund-development tools. Cause-marketing, social media engagement or even direct mail are not stand-alone solutions. They are all part of the astute cause advocate’s mix. Perhaps, a strong cause-marketing message might even ignite a potential donor’s passion to support anew cause.

The comments resulting from this article are as interesting as the article itself. One of the people who disagrees with Professor Eikenberry is Joe Waters, a cause-marketing expert. He has continued the discussion on his blog, Selfish Giving.

I love what Joe Waters said: “Like jazz and baseball, cause marketing is distinctly American. Born from Wall Street capitalism and heartland generosity, it reflects our market culture and is a natural way to support our favorite causes. And while Professor Eikenberry shows the ways to making cause marketing better, there’s one thing she can’t hide: the costliest thing would be not to do it at all.”
What so you think?

For more information of cause marketing and social media strategies, contact me – ellagantz@sbcglobal.net

The Paradigm Has Shifted

The Time is Now
The Time is Now

While most of us in the nonprofit world may still be debating the viability of direct mail (snail variety) versus online giving, statistics have been released indicating social media participation has now surpassed — even email. You cannot ignore the buzz about social media any longer — it’s here, and it’s powerful.

Last month, the New York Times reported that time spent engaged in online communities increased 883% between February 2003 and February 2009. Time spent viewing video online increased 1905% between February 2003 and February 2009. Combine this with NTEN’s 2009 eNonprofit Benchmarks Study revealing that online gifts in 2008 increased 43% over 2007, with total dollars raised online increasing 26%–and you have a reason to pay attention.

Still, with this explosive growth in use of social networks, so many organizations are asking “How do you effectively deploy a social media strategy, and what is the return on investment (ROI)?” The trouble with social media to date has been that it’s difficult to measure results.

No doubt, many executive directors have been heard to proclaim, “We need to get on the Twitter!” But the important question to answer first is “Why?” It’s so easy to fall prey to the “Latest Big Thing” Syndrome, whether you are a nonprofit, political organization, or company. Diving headlong into the latest technology or social media tool without asking those basic questions—Who, What, What, Where, When, How, and Why?—can lead to frustration and failure. That old adage comes to mind, “If you don’t know where you are going, any road will take you.”

Think ROI – Investment divided by return.

And, don’t forget expectation. The return may be only partially monetary. Objectives may include anything from building awareness, getting feedback on project relevance, expanding prospects/followers, or raising money. Here are some useful ways to think about effectiveness:
• Conduct awareness studies—prior to launch and at milestone intervals, such six months, year, etc.
• Track referral sites—identify the “web destinations” of people who respond to your message.
• Track traditional site metrics, such as unique visits, page views, and time spent on your site.
• Monitor your Net Promoter Score (customer loyalty scale of 0-10 that asks how likely you would be to refer an organization to a friend).
• Benchmark the number of friends/fans/followers on a particular social network or community.
• Measure the number of gifts made or dollars raised within a certain time frame or in response to a specific appeal.
• Measure brand visibility.
• And, of course, does it satisfy the boss?

This is not a comprehensive list, but it is a great place to start. The next step is to develop smart ways to integrate your social media combustion into your other marketing initiatives to turbo-charge your impact.

Finally, as you ponder your course, let me remind of the 2008 presidential campaign—not Barack Obama, but Ron Paul. It was a small scrappy campaign. And it all started with the infamous “money bombs,” the initial supporter-driven efforts to raise millions in a single day—Nov. 5th, 2007. Now, that’s a measurable result. This occurred without huge email lists, paid media, or even strategic campaign leadership. The result as $4.3 million raised in a single day. They repeated it later with $6 million raised in a single day. Anything is possible.

Do you have examples or thoughts? Comment below. Or, if you want to begin expanding your social media reach today, contact me — ellagantz(at)sbcglobal.net

Changing the World with Social Media

Beth Kanter is always on the leading edge of social media adoption and integration. She is the ultimate nonprofit social media maven and was recently featured on Mashable. Here are some of her fundamental assessments of ways social media is shaping the nonprofit world: earth-day1

Giving the message intimacy and relevance.
A few weeks ago, the March of Dimes supporters came out in droves for a networked memorial service for a toddler named Maddie. The community raised tens of thousands of dollars for the March of Dimes in Maddie’s memory as well as covering the funeral costs for the family. The organization did little to stage this event. The March of Dimes has embraced openness and inspired their stakeholders to feel empowered enough to take action on their own.

Making birthdays matter.
Social media is enabling individuals to create, join, and grow groups around issues they care about. I love the way DonorsChoose providing a way to make birthdays a reason to give. And Stephen Colbert is setting the pace with “Birthday Give Back” . And as Beth says, keep an eye out for more social apps with a conscience that will offer even more creative ways for supporters to self-organize and take action around causes. As non-profits begin to engage their own communities in these online conversations, they are able to reach more people than ever before, and using less effort doing so. As Maddie Grant, a partner at SocialFish, observes, “We can all be change agents and that has to be good for the entire nonprofit industry, as long as organizations adapt to this new way of being part of a two-way conversation and groundswell of social responsibility.”

Integrating media.
An interesting example of crowd-sourcing by a nonprofit comes from Michael Tilson Thomas, artistic director of the San Francisco Symphony with the recent performance of the YouTube Symphony Orchestra. The performers were selected from thousands of video auditions from around the globe. The finalists were winnowed down by a jury of professional musicians, not unlike a traditional audition, but the winners were crowd-sourced by YouTube users via online voting. The resulting “mashed up” symphony orchestra, had more than 90 players representing over 30 countries.

Driving social change “in house.”
Danielle Brigidia, who is responsible for social media strategy for National Wild Life Federation , says “Internally, we have started to focus on cross-promoting our ideas and programs more thanks to social media tools like Yammer (internal Twitter).” Carrie Lewis, social networking strategist for the Humane Society of the US, observes how their Internet is now working differently. “We have daily 9 minute meetings. Short meetings have helped them be more efficient and effective with every aspect of social media campaigns.”

It’s going to be an exhilarating ride. Join us — and share your stories.

The “Noise” is Coming

Serve America Act
Serve America Act

This week, I attended an event at the Communities Foundation of Texas in Dallas. explaining the nuances of the Service America Act, signed April 21, 2009, by President Obama. Rosa Moreno-Mahoney, Associate Director of Service and Volunteerism for One Star Foundation in Austin, Texas, presided and peeled away the layers of the complex story like an onion. The bottom line seemed to be that the Act promises to expand possibilities for capacity-building funding for nonprofits, but it’s really all academic until the actual appropriations are approved. The legislation has no teeth until the money arrives. The intent is there. We just need engage, share our voices, and make sure the piper is paid—or at least appropriated.

I am particularly intrigued by the integration of various social media tools — offering platforms for conversation and feedback. Obama appears to be walking his talk with regard to reclaiming our governing process as citizens. There were many interesting nuggets of insight to take away from this presentation, and many of them I did not expect:

Nugget Number One: “The Noise” is Coming
Wow. What an electrifying, yet oddly disconcerting, concept. Rosa Moreno-Mahoney contends that the stampede of service is building momentum. She called it “the noise.” Volunteer mobilization is becoming not just a priority—but a requirement. We can either be part of it or let it wash over us due to lack of relevance. It is just a matter of time, and she issued what seems like a warning to nonprofits to be prepared. Know how to engage volunteers effectively–to ensure fulfillment and optimal organizational impact. Service Nation is driving tidal wave of community engagement programs and passion.

Nugget Number Two: Reframe Your Approach to Volunteer Management

Due to the current social engagement imperative, volunteers are becoming the new philanthropic capital. Grants to recruit, manage , and support volunteers—strengthening volunteer infrastructure and mobilizing volunteer efforts— will help position organizations for “the noise” that is predicted. Rosa said that the days of considering the volunteer coordinator as the expendable staff member are over. She recommended that the volunteer director be a senior, management-level position –driving innovation, planning, and execution of mission-critical projects.

Nugget Number Three: Maximize Federal Draw-Down
Funding will favor unique programs that streamline and increase the effectiveness of nonprofit organizations in paradigm-exploding ways, with particular interest in leveraging public/private partnerships to launch entrepreneurial solutions. Apply to private foundations, such as the Meadows Foundation, one of Dallas’ most venerable funding sources. Bruce Esterline, VP for Grants at Meadows, suggested that asking for matching funds for the Service Act grants could double or even triple “Texas’ federal draw-down.” He confided that he cannot ever remember seeing a proposal for matching AmeriCorps Fund. (Consider this your inside scoop.)

Get ready to make some noise!

Social Savvy 101: Knowing When to Propose

You’ve heard the ongoing debate about the effectiveness of Facebook and social media for fundraising. Maybe it is; maybe it isn’t. But perhaps, the greater question is one of expectations. We flirt before we date. We date before we propose. Likewise, maybe the accurate way to view social media is related more to courtship than to marriage. It’s the preamble to commitment.

We are still pretty captivated by the glitz and glamour of social media. However, even with its vast viral landscape of possibilities, it is not a panacea. It’s not replacing anything. It’s simply an additional tool—a way to enhance the impact, sophistication, and power of your organization’s communication plan. Since the beginning of time, nonprofits have recognized the importance of engagement and participation—the foundation of donor cultivation. Use Facebook and focused online social communities to update and turbo-charge those engagement efforts.

Latest Nonprofit Stats
Latest Nonprofit Stats

Think of it as the “new intimacy” of one-on-one constituent communication—a way to expand the reach and soften the touch of your development officers. Just remember to set reasonable expectations. Is money the only thing you’ll measure? Is there value in word-of-mouth, marketing or growing awareness of your mission? Because there’s no dispute over its popularity.

In a recent NTEN survey, almost 1,000 nonprofit professionals answered questions about their organizations’ use of social media. And they said loud and clear that they’re using it. Some highlights:
• 86% have a presence on commercial social media (74% are on Facebook).
• 81% said their primary purpose is marketing.
• 81% allocate at least one-quarter of a full time employee to social media management.
• The average Facebook community size is 1,369. (If you count the three big organizations the average skews to 5,391).
• The average Twitter following is 291; LinkedIn is 286, and YouTube is 268. And MySpace comes in at 1,905 members— though its popularity is waning.

Your constituents are on Facebook. Your competitors are on Facebook. And the medium is the message, as Marshall McLuhan said more than forty years ago. Only now, it’s the social medium. And Facebook, Twitter, and social activism sites like YourCause.com are not just about donations. They are very much about marketing your organization and engaging new supporters. It’s “interactive public relations.”

Thanks to this NTEN study, you can measure your organization against industry benchmarks. And, you can prove your success and relevance in social media in other quantifiable ways. Track the numbers of Facebook Fans and their demographics (via improved Insights reporting on Facebook Pages), the number of Followers and @ mentions on Twitter, and the click trends of short URLs in tweets. With donations dwindling in this tough economy, it’s important to keep supporters engaged, even with brief status updates of “what’s on your mind” and tweets about “what you’re doing.”

Ninety-five percent of nonprofits said they are either maintaining or increasing staffing resources given to social networks over the next year.
Everybody’s doing it. Make the commitment to building your community today.

Clarifying Nonprofit Transparency

magnifyglass (2)Transparency is the media buzz word du jour—for our government, the Wall Street bailout, and for nonprofits. But I think the meaning and precise implications are a bit murky. Perhaps we need some transparent clarity? How does the call for transparency really apply in a practical way to nonprofits? As fiduciaries of organizations held in the public trust, how do we effectively translate the value for donors, development officers, and nonprofit organizations?

Guidestar.org recently conducted a study on nonprofit transparency. A review of 1,800 nonprofit websites revealed good news and bad news about the state of nonprofit transparency. In this context, Guidestar was actually assessing disclosure practices. They found that 93 percent of the nonprofits surveyed disclose information about their programs and services online.

However, they questioned the relevance of the actual data provided. The bad news was that only 43 percent posted their annual reports; 13 percent posted their audited financial statements, and a minuscule three percent posted their IRS letters of determination. Here are Guidestar’s steps for increasing transparency:

• Nonprofits should regularly update their websites with current, detailed program and evaluation information.
• In addition to posting names and titles of board and key staff members, nonprofits should post brief biographic information for these important leaders.
• All nonprofits should post these documents on their websites: annual report (if produced), audited financial statement (if available), copies of current and recent 990s, and IRS letter of determination.

And one additional note— if you use a third-party, social media tool to help you generate engagement and donations that is powered by Network for Good.org, http://www.networkforgood.org, be sure to register for Donor Tracking reports.

Whether you use Facebook Causes, or YourCause.com, it’s essential to know exactly who is making the contributions through the social media portals—giving you the opportunity to do proper stewardship and cultivation. And speaking of transparency, this is particularly critical with an organization such as Network for Good, which is technically a nonprofit organization, as well as a conduit for nonprofit giving. We as professionals must require full contact data disclosure on donors through these sources—including donors who have requested that their gifts be listed as anonymous—since we maintain the same vigilance about honoring those wishes for donors who make donations directly to our organizations.

What do you think?

Social Media Engagement: From Buzz to Benefit


Just as you figure out what’s happening on Twitter, the next iteration of social media is dawning. It is no longer enough to stay in the loop—you need to be out in front of it. Check out the slide show above. It is a great review of where we have been and where we are going. Here is a summary of the Web’s hyper-speed trajectory to provide some context:

Web 1.0: The Information Source
• Creating your own message and your own content online.
• Categorizing the worldwide web in directories.
• You manage your own little corner of cyberspace—you Web brochure.
• Static and segmented.

Web 2.0: The Social Platform
• Building community, interactivity, and scalability.
• Validating and creating through the power of community.
• Integrating “hooks” for future integration – RSS feeds, APIs, etc.
• Chaotic and overwhelming.

Web 3.0: The Harmonic Convergence of Technology, Content, and Participation
• Networked applications and content repositories creating more seamless interoperability and integration between the complete range of devices.
• True data portability through open identity, APIs, and data formats
• Implementation of a consistent Web language
• Intelligent agents, natural language processing, and machine learning
• Making the Web more relevant and individually defined.

Social media tools are born from technological advances, but they are rooted in the most basic elements of human communication – conversation, curiosity, caring, and connection. I guess you could call them the four “Cs “of social media – a girl’s “second” best friend, I suspect.

In any case, we should all view social media as simply another tool in our communication and fundraising arsenals. So, approach with the same intentions. When you think about diving into Facebook, Twitter, or other online universes, you may be thinking, “Where do I begin?” The exciting thing is that we are staking the trail. It’s a brave new world, and it’s all about trial and error. Be willing to fail—and learn. You date before you pop the question, so think of social media relationships the same way. Get to know your “friends” before you ask them for anything. Here are some places to start:

• Comment on and reply to other people’s observations, posts, and ideas. Participate.
• Proved personal anecdotes about the impact of your cause or organization, and empower your volunteers and supporters to do the same.
• “Retweet” someone’s status message in Twitter.
• Initiate conversations around specific topics – in small groups or forums online. Build community around your organization or issue on Facebook, LinkedIn, or Ning.
• Share good information freely, such as pointing to great blog posts, ideas, or articles.
• Make virtual introductions when you see obvious like-minded people who could do to know each other.
• Create useful media like blog posts, ebooks, or videos that help people.
• Find mutual interest points and talk about them.
• Remember things about the other people, such as whether they have big meetings or if they are dealing with sick children.
• Help when someone is promoting a big event. Spread information for other people liberally.
• Reply to people and build conversations.
• Recognize those who are making a major impact—volunteers, donors, and angels.
• Thank people.
Share.