The NonProfit Times - Weekly

Useful Past Tips:

MARKETING:

  1. Ethnic Marketing - Marketing to the Hispanic community
  2. Like it or not you're always selling
  3. Media program is strategic
  4. Designing a valuable survey
  5. Getting market based results
  6. Relationship Marketing - Donor And Fundraiser Working Together
  7. Segmentation of donors/prospects
  8. Ethnic Marketing - Marketing to the Hispanic community
  9. Key marketing management trends
  10. Getting the word out about you
  11. Tips for your PSAs
  12. Marketing - How to evaluate your public relations

NPT Weekly - Current Issue


1. Ethnic Marketing - Marketing to the Hispanic community

Mary Anne Chern, president of the White Memorial Center Charitable Foundation in Los Angeles, offered several strategies for raising money among Hispanics:

  • Diversify the staff and board.
  • Emphasize common needs and interests.
  • Involve a broad base of grassroots organizations respected in the community. (Implicit in that is knowing what those organizations are.)
  • Have language translation services. "You can't just translate it," Chern said. "You have to adapt some of the cultural issues," among varied Hispanic cultures.
  • Having multicultural leadership is a must.
  • Work with collaboratives and coalitions to expand capacity. It takes more time and it can be more trouble, Chern said. "But it works."
  • Clarify challenges and opportunities in fundraising.

In addition, Chern suggested three items that are important to Hispanics.

  • Ethnic identity -- titles. "I've never seen a community that is as into titles as Hispanics," Chern said. "You have to have a title to get into the door. ... Consider having external titles in addition to internal ones."
  • Gender. There can be problems about the gender of the person who is asking until the woman gains the donor's respect. "You have to think about this in board makeup," Chern said.


2
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Like it or not you're always selling

Whether nonprofits like it or not, marketing is becoming an essential component of their work. In the increasingly competitive world in which we live, marketing can pay huge dividends if done correctly.

In his book Mission-Based Marketing , Peter C. Brinckerhoff explains the six characteristics of a market-driven organization that remains mission-based. Such organizations:

  • Understand their markets. They realize that their markets extend beyond just the people they serve. They identify, quantify and target the markets they want to serve and can serve well.
  • Treat everyone like a customer. Funders, board, staff and recipients of services are thought of and treated like customers. Even difficult customers are treated as well as possible.
  • Have everyone on the marketing team. They work with the attitude that everyone, every staff person and volunteer, is crucial to the success of the organization's marketing, its customer service and its competitive edge.
  • Ask, ask, ask, and then listen. Successful organizations shape their services to meet customer wants, and they are constantly asking so they can stay in tune with how those wants change and develop.
  • Innovate constantly. These organizations are extremely flexible, with staff and board encouraged to take reasonable risks on behalf of the people they serve.
  • Embrace competition. They don't fear competition (although they may not revel in it). They focus on customers' wants and doing the best possible service.

3. Media program is strategic

With all the problems facing a nonprofit, a media program, that is a strategic plan to increase an organization's profile in the news, may seem like an extra and unnecessary burden.

In his book Making the News : A Guide for Activists and Nonprofits , Jason Salzman offers several benefits that organizations can reap from an organized media campaign. The benefits include:

  • A better chance of winning. You can achieve little or nothing in public life without a sterling communications plan. Whether it's winning an election, passing a law or changing public opinion, communication is central
  • Increased funding. Like other people, funders are impressed with an organization that gets media attention.
  • Higher morale. Whether they are answering phones or typing a newsletter, employees and volunteers feel better about their work when they are recognized for it.
  • More volunteers. Even the smallest media exposure can bring in volunteers.
  • Responsibility to the community. People should know about their communities, especially social ills and those trying to fix them.
  • Unknown good stuff. It's a big world out there, and by connecting to it through the news media, you make things happen.

Salzman acknowledges that there are arguments against such a campaign: fear that the media will distort an organization's views or won't care about an issue. He counters that initiating a campaign lowers the risk of distortion and it is highly unlikely that a news outlet will be completely indifferent.

Also, an organization deciding on a media campaign must make a genuine commitment to it, providing adequate resources.

4. Designing a valuable survey

Any organization planning a survey must do a lot of preparation. Bruce Campbell, in his book Listening To Your Donors, suggests a systematic random sample, the one most used by nonprofits and easiest to implement. He also suggests probability sampling, by which the probability of selecting any given member of the sampling frame is equal to the probability of selecting any other member.

Probability techniques are the only ones that will provide results accurately reflecting the population, he said.

Three probability techniques are:

  • Random sampling. This is the equivalent of putting names in a hat and asking a blindfolded person to pick out a certain number. If the population is so high that manual selection is impossible, computers may be necessary. If that is so, there are spreadsheets and statistical software packages that include random number generators.
  • Systematic random sampling. This is especially useful for large populations. It is also referred to as "Nth name select" because every Nth name is selected from the list, N being the number reached when the total population is divided by the number of names desired in the sample. For this, it is important to start at the beginning of the database and continue to the end.
  • Stratified random sampling. Separation of a sample into groups or strata may be necessary when the working population is composed of mutually exclusive subgroups that warrant separate analysis. One possible drawback of such a survey is that overall results can be skewed toward the opinions of smaller strata.

5. Getting market-based results

Although taking on a market-driven approach may be a difficult concept for many nonprofit managers to accept, there are real and substantial benefits that can result from a good market-based strategy.

In his book Mission-Based Marketing , Peter C. Brinckerhoff offers six results that he observes most often when organizations become and remain market-driven.

  • You will have happier markets, particularly consumers and government funders. If you ask and listen and then make a reasonable effort to accommodate the wants people have, they will get a better feeling about you; first because you asked and second because you take action to try to accommodate them.
  • Your organization will have a better image in the community. People will talk about you as a "business-like charity," one that is using what they perceive as their money in a more efficient, effective manner.
  • You will retain your current markets. If it is not happening already, it will soon: Someone will show up to compete for your core business. Good marketing now can help cement long-term relationships.
  • Your organization will be more efficient and effective in provision of services. By definition, if you are a market-based organization, you are doing things that your markets want.
  • You will develop new revenue sources. Success bring success.
  • Your organization can become and remain more financially stable. More income gives you the means of stability, but you still need to manage those funds well.

6. Relationship Marketing - Donor And Fundraiser Working Together

Fundraising is of ongoing importance for any nonprofit, and in their book Building Donor Loyalty Adrian Sargeant and Elaine Jay emphasize relationship fundraising, one that focuses on the special relationship between a nonprofit and each supporter.

Although it may sound good, Sargeant and Jay argue that it cannot be implemented overnight. Preparation is important, and the following prerequisites are essential:

  • Supportive culture. Everyone must want to seek relationships with donors and must view them as an integral part of the organization. Further, all managers, employees, trustees and volunteers should know why donors quit and how to help reduce this attrition.

  • Willingness to invest. Developing a strong focus on donor needs and preferences requires research. For this approach to succeed, senior management and trustees must be committed to the process and must be willing to make the requisite investment in staff time and monetary resources.

  • Adequate database. Smaller nonprofits may require only a restricted number of fields that can store information on a low number of donors. For others setting up a donor database may require considerable investment, proprietary software and the capacity to handle thousands of donor records.

  • Understanding why donors lapse. An organization needs to have a clear understanding of why donors stop giving and whether their doing so varies by method of giving or by level of giving. Where practical -- and always in the case of major donors -- it is worth approaching lapsed donors to determine why they left and the weaknesses they perceived in the relationship.

7. Segmentation of donors/prospects

Segmentation, the breaking down of a market into common properties, can be used effectively in gathering information about donors, as well as to enhance response rates, gift amounts and donor loyalty.

In their book Building Donor Loyalty, Adrian Sargeant and Elaine Jay outline a variety of criteria that can be used for segmentation.

  • Demographic. Donors can be clustered on the basis of variables such as age, gender, socioeconomic group, family size, family lifecycle, income, religion, race, occupation and education. Of these, age tends to be a reliable indicator of the sources of information people use, the communication routes they are most comfortable with and the social influences they are susceptible to. Some nonprofits develop "male" and "female" appeals.

The income level of the ask may be related to the income level of the prospect. It should be noted that many EU countries prohibit gathering information based on such categories as religion.

  • Geodemographic. This combines data on geographical location and type of housing with lifestyle data. This can be helpful in ascertaining the purchasing and giving behavior or particular neighborhoods.

Much of this involves the PRIZM system, developed by the Claritas Corporation. This is based on ZIP codes with categories and social groups within them.

  • Lifestyle. This is defined as a pattern of living in the world as expressed in one's activities (work, hobbies, social life, entertainment), interests (family, home, job, community, recreation, media, achievements) and opinions (of oneself, social issues, politics, business, education, products, culture).

8. Ethnic Marketing - Marketing to the Hispanic community

Mary Anne Chern, president of the White Memorial Center Charitable Foundation in Los Angeles, offered several strategies for raising money among Hispanics:

  • Diversify the staff and board.
  • Emphasize common needs and interests.
  • Involve a broad base of grassroots organizations respected in the community. (Implicit in that is knowing what those organizations are.)
  • Have language translation services. "You can't just translate it," Chern said. "You have to adapt some of the cultural issues," among varied Hispanic cultures.
  • Having multicultural leadership is a must.
  • Work with collaboratives and coalitions to expand capacity. It takes more time and it can be more trouble, Chern said. "But it works."
  • Clarify challenges and opportunities in fundraising.

In addition, Chern suggested three items that are important to Hispanics.

  • Ethnic identity -- titles. "I've never seen a community that is as into titles as Hispanics," Chern said. "You have to have a title to get into the door. ... Consider having external titles in addition to internal ones."
  • Gender. There can be problems about the gender of the person who is asking until the woman gains the donor's respect. "You have to think about this in board makeup," Chern said.

9. Key marketing management trends

In addition to dealing with ongoing and recurring issues, nonprofit managers are operating in a time of radical change. In his book Marketing Management for Nonprofit Operations, Adrian Sargeant maintains that there are several key trends that nonprofits will have to face in the next few years:

  • Globalization. Many nonprofits are now global in scope. Moves toward globalization are gradually leading to the erosion of national traditions and cultures.

  • The rise of a contract culture. Hard-nosed contractual negotiations and business deals now sit alongside the more traditional collecting tins and flag days.

  • Public trust and confidence. There has been increasing interest in this area lately. Governments in the United States and United Kingdom believe that trust is essential if the levels of public support of the voluntary sector are to be maintained.

  • Accountability. Historically, the accountancy profession has been more concerned with measurement of for-profit operations. Now, however, there are "benchmarks" for performance in the nonprofit sector.

  • Changing definitions. In the UK, for example, the government is wrestling with a review of the charitable status of many organizations. The definitions of these has been unchanged since 1601.

  • Growth in community foundations. The number of these in the U.S. has almost doubled since the 1990s. They are typically created to fund initiatives that matter to local people.

  • Civic disengagement. The growing gap between rich and poor, serious enough in itself, raises the need for programs to support the poor yet reduces the number of individuals prepared to undertake this work.

10. Getting the word out about you

Public relations can be an important part of any nonprofit's work. It is one thing to have a noble mission and plenty of vigor. It is another to enlist support in either the local community or the donor world.

In his book The Public Relations Handbook for Nonprofits, Art Feinglass writes that the first part of public relations is having a plan, and he offers eight steps to create a PR plan.

  • Know your audience. Be clear about who you want to reach. Learn about them.

  • Know the results you want. What do you want your audience to do?

  • Develop a clear message. Know what you want to communicate to your target audience in order to achieve the desired results. Develop key message points.

  • Choose the appropriate media. Different media reach different audiences.

  • Target specific individuals within each media outlet. Find out which reporters cover the area that includes you (geographically or topically) and cultivate them.

  • Develop the tools to reach out to the media and the individuals you have targeted.

  • Develop a plan for using your outreach tools.

  • Review, re-evaluate and refine the planning process as necessary, for maximum results. Set concrete goals and objectives. To gauge your level of success, you must be able to measure results.

11. Tips for your PSAs

One way by which a nonprofit organization can get free, although haphazard, publicity is the public service announcement, or PSA, that appears on radio or television. This announcement can be written by the organization and submitted to the nearest media outlet for public distribution.

In his book The Public Relations Handbook for Nonprofits, Art Feinglass suggests PSAs as handy ways of maintaining visibility because radio and TV stations are required to provide a certain amount of airtime at no cost to serve the public interest.

With that in mind, Feinglass offers a few tips for getting maximum mileage out of PSAs.

  • Usually, PSAs are 10- or 30- or 60-second spots. Know the time frame, and write a script for that time. Sometimes stations will specify the number of words they will accept, and they may rewrite your PSA.

  • Prepare the PSA on a single sheet of paper, and be sure to include contact information. Organization letterhead can be good for this.

  • Make the PSA warm, lively and conversational in tone and content.

  • Keep the sentences short and easy to read. Try reading it aloud yourself. If you find yourself gasping for breath, the sentences are too long.

  • Avoid words that are hard to pronounce or easily misunderstood.

  • Grab the audience's attention right from the outset.

  • If a station does run your PSA, send a thank-you letter.

12. Marketing - How to evaluate your public relations

If an organization has embarked on a specific public relations campaign or overall public relations effort, one helpful part of that process is an evaluation of it.

In his book The Public Relations Handbook for Nonprofits, Art Feinglass offers a few suggestions for measuring success or lack thereof. He acknowledges that such measurement is not always easy because it is not always quantifiable, because something like setting a goal of increasing attendance at an event is easy to measure but one like increasing name recognition is not. Nonetheless, there are certain signs and indicators that may be of help.

  • It could be helpful to conduct focus groups before and after a PR campaign. This can help determine what changes in public perception of an organization the campaign has accomplished. It is possible to gauge if more people have become aware of an organization or if they have a better appreciation of what it does.

  • Compare press clippings from before and six months to a year after a campaign. This can help reveal whether the organization's key message points are being communicated effectively. Look to see if the media reporting on the organization are being read or heard by the organization's target audience. This can help in planning the next public relations campaign, especially if key points are being missed or misinterpreted.

  • Look and see where the problems are, either in the person handling public relations or in the message itself.



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