February 11, 2007

Since when did Google rule the world?! Somehow they have taken over my blogworld and - in the process - held up some comments....comments for which I am so very grateful. They have hopefully now been released from Google Hell, and I look forward to reading them.

Sometimes I think I'm going to open the ice box door, and there will be Google. Enough already. I want my own life.

Wisdom for the World of Non-Profits

Most of us marketers are involved in non-profits. The other day I heard a great presentation by Dr. Thomas Wolf who is a leading strategist for non-profits. He highlighted five key issues, and I think it's worth passing them along, as I found his insights very useful. They also boxed with some research we've done recently. So that made me feel good!

In Wolf's view, there are five key issues: changing marketplace, leadership, ethics and accountability, new philanthropoids, and sustainability.

The changing marketplace is caused by the incredible increase in competition. There are simply so many more non-profits. Wolf used the example of cultural organizations in the San Francisco Bay area. In 1950, there were 16 of them. Today there are more than 1,000.

There's an associated challenge of balancing supply and demand. Wolf says that funders understand the need for this balance, and they often decide who should survive, because they don't like having too many organizations compete for their money. He calls this a trend toward 'Darwinian funders!'

Obviously, there are also demographic changes in the marketplace, as the Hispanic market increases, along with other shifts.

And, finally, there are the effects of technology. We now have so many more entertainment options at home that it's more and more difficult to get people to go out for symphonies, zoos, museums, or other opportunities provided by non-profits.

In terms of leadership, Wolf said that for the first time potential leaders don't want to serve on boards because of legal exposure (in our litigious society) and because of the potential of bad press (if you're a board chair of an orchestra and the musicians go on strike, you are often criticized in the media).

He noted that many non-profit staff members are aging boomers who grew up in a more idealistic time. Their generation is being replaced by one that wants non-profits to provide pay and benefits that are comparable to what's available in the for-profit sector. That's a challenge!

And, there's the challenge of 'the vanishing volunteer.' Today's two-earner household is not providing the volunteer service of generations past.

The third issue - ethics and accountability - is represented by the fact that non-profits have now had their share of scandals (United Way, Red Cross, etc.). Non-profits are held to a higher standard, as well they should be. And the government has put them under much greater scrutiny, as has the public.

Wolf's fourth issue is The New Philanthropoids. Here is where his information resonates so powerfully with our research. He notes that 50 years ago, philanthropists were great providers who didn't ask a lot of questions. That has all changed. There's been a move from patronage to investment.

Today's philanthropists want to be involved in their investment. They are more results-oriented, want accountability, and seek a specific return-on-investment. It's really like the venture capital model. When you get venture capital, you get the money...and the person. That's the way it is with today's 'venture' philanthropists. They want a level of involvement that is totally different from the patrons of 50 years ago.

That demands a whole new way to communicate with funders. And many non-profits have not made this change. It's critical.

Finally, Wolf discussed sustainability. How do you keep non-profits going. Once again, the ways of the past no longer apply. Those ways were some variation on improving the organization, getting systems right, and then building endowment. But those models failed because they lacked the clarity, continuity, and flexibility needed in today's new marketplace. Non-profits need to be crystal clear about their mission. They need to be able to see the long term. AND they need to be flexible...able to change very nimbly.

This is only a top-line report on Wolf's presentation. But it so clearly points out the changing dynamics in the non-profit world. It sets out the key issues. And it includes specific insights that can help all of us marketers make the non-profits in which we're involved all the more successful.