Accounting for Generosity

We forget that there is no hope or joy except in human relationships.
— Antoine de Saint Exupery,Wind, Sand and Stars

moneyOne of my newest colleagues posed a provocative question last week. He actually has no shortage of insights, and I certainly appreciate living in an environment where questions are as highly valued as answers. Indeed, his inquiry is at the heart of what we do. What inspires alumni to give to their alma maters? More broadly, why do we give in general? At face value, this seems like a simple question, but the longer I work in the field of philanthropy, the more I understand its complexities. Actually, a myriad of responses come to mind—to address a critical need, to save a life, a response to the right appeal from the right person at the right time, a passion for a cause, a sense of obligation, guilt, helplessness, or quite simply— we are asked.

Traditional fundraising methods prescribe a deliberate approach built around the carefully managed steps of cultivation, solicitation, and stewardship. I remember hearing a development consultant stating that he could not imagine a better profession. He described an almost spiritual dimension—saying he felt truly privileged and honored to be in the presence of others when they are exhibiting generosity. And I think he had a point.

In fact, I addressed the sacred component of giving today. Though the Church historically and adroitly integrates giving opportunities into its core experience each week, the last quarter of the calendar year provides an opportunity to renew one’s annual tithing commitment. Making the direct correlation between generosity, one’s income, and one’s spiritual journey is quite powerful, indeed.

But research has shown there may also be a scientific component. I was fascinated to see the results of a study by Paul Zak, a neuroeconomist at Claremont Graduate University. The concept of a “neuroeconomist” is intriguing in its own right, but his work links the trait of generosity with oxytocin, a hormone released by the brain in response to social stimuli. The study showed that participants who were given oxytocin gave significantly more money to a stranger than participants who took a placebo. Whether or not there is a “fundraising drug,” (what a concept?) I think the epiphany here for all of us in the social media space is that meaningful, real engagement opportunities can create an environment that nurtures of generosity and an increase proclivity to give.

“The hormone causes a general feeling of attachment to other people, even strangers,” Zak says. That may help explain why people donate to victims of natural disasters or to others who are in need. “Oxytocin is a social glue that holds us all together and makes us care about other people,” says Zak, who has shown links between the hormone and trust in past research.

“If you have enough nurturing, if you’re in a safe environment, you might be more likely to release oxytocin the next time you encounter a positive social stimulus,” Zak says. Interestingly, he says that about 2% of people constantly have oxytocin being released by their brains, so they stop reacting to it. “Those people lack empathy,” Zak says. Although they can still learn appropriate behaviors, the reactions are not natural for them. Ha! I think I have met some of those people. Oxytocin means “swift birth” in Greek.

Whether you consider the hormonal reaction or not, it really all comes down to relationships—more about the intangible than the tangible. It is often first an emotional impulse of the heart, followed by a logical justification. We are all interconnected as part of a larger human web, and I’m not necessarily talking about the WWW variety here. We are human beings driven by:

Compassion. Regardless of cultural and familial experience, people everywhere are moved to respond when others are in need.

Pleasure. Brain scans confirm what we experience feeling of pleasure when we give. In a sense, it’s really “hard-wiring.”

Habit. If we watched our parents give, we likely internalized that impression. We understand—on even an unconscious level—that this is what good people do.

Belief. Whether we consider charity to be based on religious beliefs, philosophy, or universal values, we as humans recognize an essential imperative to take care of each other. These ideas are larger than self-interest and benefit.

Responsibility. When others are hungry, sick, frightened, without shelter and livelihood our society is put at risk. Our education institutions are driving solutions to many of society’s most pressing issues.

Legacy. When we give we know that we influence the future, sometimes only immediately and sometimes for a very long time. By creating a memorial endowment fund we keep our name and memory alive in the community long past the obituary.

The unknown. We may even have unknown reasons for giving—some even unknown to ourselves.

What do you think? And how is social media impacting generosity?

Elaine Gantz Wright writes about social media, fundraising, and other communications phenomena. Please post your comment below and join the conversation.

Hire me: elgantz@ yahoo.com.

What’s the Next Layer on the Stack?

pancakesI was privileged to speak to a class at Southern Methodist University last week on social media for nonprofits. Nina Flournoy, the charming, accomplished corporate communications professor, was taking a very practical, professionally focused approach to the material. Clearly, the bright, enthusiastic students were hungry to comprehend the marketing power of social media.

They asked great questions – What makes something go viral for a business or nonprofit? How do I know what to post? When to post? How do I find my audience? Looking back on the day, my insights were many, but I was surprised to notice that though we may be asking similar questions, our points of view were remarkably different. Facebook, Twitter, and social media are as much a part of their daily lives as the telephone or the iPod. In fact, they live perpetually connected lives. Therefore, looking at these social media sites as marketing channels to be managed or positioned can feel incongruent. Social media is simply how they live, how they interact with the world and each other. It’s second nature—breathing, eating, sleeping—and tweeting! The reality is here:

As part of a slightly older generation of professionals, I am still experimenting with ways to integrate, coordinate, and differentiate somehow. But whether you are Generation X, Y or Z, I think these are questions we as marketers must address right now, in the moment. We are all trying to figure out how to weave social media tactics into the overall marketing mix—and manage them effectively. As we know, setting up a Facebook account or a Twitter profile is just the beginning—definitely not the whole story.

Content is king—but even more important is the conversation it triggers. Social media is less about information and more about participation. And geez, that is very hard to schedule! It is an activity, behavior, and process. Therefore, the question is—does the user experience have value? I think that’s where businesses and nonprofits are stymied. They look at social media and ask, “how is this relevant?”

And yet, that’s probably the flawed interpretation. Twitter, Facebook, and Linked In are really relevance-neutral. They are only as effective as their context. Sage North America recently released survey data that “88 percent of U.S. and Canadian nonprofits are using some form of social media, although less than half of this number have been using it for more than a year.” The surprising news is, “Of those who have not adopted a social media campaign, 45 percent indicated that it was because they were unsure of its relevance or advantages. Others said that they were unable to devote the time or resources.” The other hesitancy seems to be an uncertainty about integrating existing online transactions with social media environments. “91 percent of nonprofits said that they raise funds online, yet only 58 percent of these respondents said they use social media for fundraising.”

The challenge is to embrace the social media landscape in a valuable, productive way. That is, from a business perspective, we need to find a way to aggregate the vast, messy world of social media into a usable set of metrics, messages, behaviors, and/or outcomes. As I have written in earlier posts, it’s the new success measure—ROE, return on engagement.

At the end of the class, the SMU students asked me the question, “What’s next? What’s the next big thing?” What a fabulous and provocative question. There is some buzz about this among thought leaders. They suggest it is the question is really “What’s next on the stack?” We need to think about the media communication world as a stack or a progression. Many point to aggregation, dashboards for marketers, and consolidation tools. Chris Vary of Weber Shandwick and the Dallas Social Media Club says he suspects Twitter has probably peaked in terms of growth, so we should keep our eyes on the social media horizon. I have read there are 11,000 registered third party apps built on top of Twitter and probably more for Facebook; therefore, I’m thinking the cycle dictates some sort of consolidation or filtering.

Thinking back on my visit to SMU, where I earned an MBA and an MA, I am dizzied and overwhelmed by the acceleration of change. When I was sitting in those same chairs in the Hughes Trigg Building (well, maybe replaced since then) twenty-ahem years ago, I was thinking about taking my box of punch cards to the guy who worked on the other side of the little window in the mainframe building. No PCs. No Internet. No email, even. Still had the old Smith-Carona and Liquid Paper, for heaven’s sake! So hard to fathom.

gartner-social-software-hype-cycle-2009
Gartner Social Media Hype Cycle

And now, I can’t imagine a day without my iPhone and HootSuite. I guess I’m sort of a hybrid. As I wrapped up my remarks, I waxed a little nostalgic and encouraged the students to stay open, curious, and highly, highly adaptive.

The human condition is evolving at hyper-speed—intertwined with high-velocity technological innovation focused solely on expressive capability. As NYU professor Clay Shirky observes, “The moment we are living right now, this generation, represents the largest increase in expressive capability in human history.”

So consider this—social media as we know it right now will not be recognizable in 3-5 years. What do you think is next? Are you ready?

Elaine Gantz Wright writes about social media and other communications phenomena. Please post your comment below and join the conversation. elgantz@ yahoo.com

The New Peer-to-Peer Potential

hand
The Giving USA Foundation/Giving Institute released its Annual Report on Philanthropy for the year ending December 31, 2008 in June of this year. Notably, despite the impact of the recession and arguably the most challenging economy since the Great Depression, total giving to charitable causes in the United States reached an estimated $307.65 billion.

The key finding here is that individual giving continues to account for the largest percentage of overall giving at 75 percent of the total. Individual giving is an estimated $229.28 billion, (down by 2.7 percent over 2007 with a -6.3 percent adjustment for inflation). Education organizations received an estimated $40.94 billion, or 13 percent of the total. Gifts to this type of organization decreased 5.5 percent with a -9 percent adjusted for inflation.

As fundraisers, the path is clear. Individuals represent our greatest opportunity for recovery and growth. That said, our methods of securing individual donations definitely deserve some scrutiny and consideration—especially in light of rapid-fire technological changes impacting the landscape.

Just how can we maximize individual giving? And what are the fundamental trends and challenges influencing the proven solicitation process?

Throughout my career, I have heard mentors chant, “People don’t give to institutions; they give to people.” It is a time-tested fundraising adage, and it defines the essential nature of one-on-one solicitation at the very heart of fundraising. The process of one person asking another to give is what fundraising is all about. One-on-one meetings and conversations are the moments where the school’s case for support is made most effectively with a blend of passion and hard facts. It is the personal relationships between volunteer solicitors and donors that generate funding and continuing support for institutions across the street and across the globe. Research, cultivation and stewardship are all part of the solicitation process, but nothing happens until—we ask.

As we learned from the game-changing success of Internet fundraising in the last presidential campaign, closed–door handshakes and smoke-filled rooms are anachronisms. One of the most remarkable aspects of the Obama groundswell was the return of grassroots participation—the return to people. That is, people reaching out—one to another—to ask for support. Whether online or on the front porch, people asked— peers and strangers.

The automation of the contact process was nothing short of amazing—phone scripts downloaded seamlessly to kitchen and dining-room computers all over the nation and people giving up their Sunday afternoons to attend calling parties with cell phones in hand. Real-time tracking reports updated party calling returns as it the volunteers were dialing—thus enlivening the competitive spirit along with the political passion for change.

This was the fruitful marriage of personal peer-to-peer power and technology.

Today, the world of online fundraising tools and platforms is evolving rapidly. Social media is a radical new milieu impacting the time-honored one-on-one tradition. Think about Facebook CAUSES with more than 33 million monthly active users and social action sites such as www.change.org. or www.care2.com.

Everyone is trying to figure out how the infuse electronic appeal with the authenticity of human emotion. Photos, audio, video—innovations are expanding exponentially. Charity:Water has used video as the medium for its organization’s message very effectively.

So, what are some other opportunities tools and methods? I am interested in learning how schools, universities, and institutions are absorbing these tactics. What’s working? What’s not? What’s changing? What needs to change? How can we best automate and streamline the peer-to-peer solicitation process?

In a world with so many demands on time and attention, we as fundraisers will be more successful if we can appeal to the behaviors and preferences of those making the asks—our volunteers, ambassadors, and emerging Gen X leaders of today and tomorrow.

Contact me at elgantz @ yahoo.com.

Getting smart about online communities

capI am excited about my new focus on helping universities, colleges, and private schools provide continuing, multi-dimensional value to their alumni through social media—and specifically, custom online communities.

The opportunities for engagement and exchange are rich and powerful in a higher education environment. Leveraging the strength of the profound personal connection through the “ambient intimacy” of online interaction can ultimately help increase giving, boost admissions referrals, and engage more alumni in meaningful ways. For alumni associations, the applications are very compelling:

• Increase investment in affinity products and institution-related activities.
• Enrich and deepen the institution’s “brand” experience for students, faculty, staff, alumni, and friends.
• Promote and strengthen the foundations of affiliation (class year, school/college, dorm/Greek organization, student activity, professional focus)
• Position the institution’s community to positively impact loyalty-related outcomes, such as annual giving, association membership, reunion attendance, and etc.

The challenge is maximizing the ongoing value of an online community by balancing institution content control with user participation. Remember, it’s about relationships—building on the ephemeral—memories, experiences, and bonds based less on practical deliverables and more the emotions of affiliation.

In his August 2009 Wall Street Journal article on corporate branded communities, The Fans Know Best, Dr.Uptal Dholakia of Rice University contends:

“Allowing discussion and activities like networking and socializing leads visitors to participate in the site for emotional and social reasons. It keeps them coming back, and thus strengthens the bond between them and the company (and each other). Part of giving up control is also giving visitors the freedom to complain and criticize the brand, or to wax lyrical about a competitor, to their heart’s content.”

Therefore, our task becomes more focused on orchestrating, monitoring, and responding–rather than drafting, editing, and deleting.

Though Dr. Dholakia is speaking of the corporate sector here, I think the ideas can be applied to association communities, as well. Visitors frequent communities, because they enjoy the experience—not because it is something on the to-do list. Think about the silly quizzes on Facebook. The “fun factor” should not be underestimated as a key driver of engagement. Yet, it’s possible for universities and colleges to deliver real value in the process. We must not forget the truly “social” component of social media—providing a platform for witty banter. And universities alumni already have a built-in affinity. The potential is boundless—to create what I call the “perpetual reunion.” It’s 365/24/7 engagement.

Dr.Uptal Dholakia offers a high-octane example of community-building savvy from the corporate world:
lego
“When Lego Group set out to develop Mindstorms NXT, the latest version of its game for building programmable robots, it enlisted help from a group of adult enthusiasts whom it found on Lugnet.com, the largest unofficial community of Lego fans. While the marketing target for Mindstorms is mainly teenage boys, the people that Lego reached out to were men in their 40s and 50s who knew each other from communicating and working together on elaborate Lego projects on Lugnet.com.

The group’s members, according to a Lego spokesman, contributed ‘incredibly valuable insights’ in hardware, software, design and usability based on their own experiences. The company credits the group with helping to make Mindstorms NXT appeal both to adults and ‘a new, younger generation of robotics enthusiasts.’”

Just think of the application for a university community—building connection between alumni, faculty, and staff—students and even prospective students. Not all colleges and universities are systematically monitoring their “unofficial” user-driven groups on LinkedIn, Fan Pages on Facebook, and Twitter feeds. But tracking and engaging these communities can provide a wealth of opportunities, alliances, ideas, innovations, and energy.

What are your thoughts? To learn more about unleashing the power of the web, contact me: elgantz @ yahoo.com.