Good News For Nonprofits

A recent article on PhilanthropyJournal.com gives some promising news for nonprofits. Despite the recession Online Giving Grows in 2010. The results of a new study " include 24 months of online giving data from 1,812 nonprofits from the Blackbaud Index of Online Giving."

Online fund raising grew 34.5 percent in 2010 with both large, medium and small sized nonprofits all experiencing double digit growth. Large organizations experienced a 55.6 percent growth, medium sized organizations had 15.9 percent growth and the donations to small organizations grew by 22 percent.

One of the driving forces for this increase is of course the response to the earthquake in Haiti. Compared to 2009, online giving for international affairs groups increased by 130.8 percent. But in addition to that, nonprofits of all missions and causes can be benefited by donors giving online.

These results show the importance of nonprofit organizations being on top of new technology that allows them to be connected to current and future donors.  Having a web 2.0 and social media presence are crucial for nonprofits to grow in this digital age.

"'2010 saw the continued growth in the importance of online fund raising for nonprofit organizations,' Steve MacLaughlin, director of Internet solutions for Blackbaud, says in a statement. 'A recovering global economy, online response for disaster relief, peer-to-peer fund raising, and the role of social media in the nonprofit sector all shaped 2010.'"

Hopefully this is just the start of increased donations in all forms.

Amazon

Amazon.com is my favorite web site when it comes to ordering anything online. The selection is huge so I look there no matter what I’m interested in purchasing, Amazon’s prices have saved me money especially on text books and I have to commend them for their customer service. The order process is straight forward and they effectively communicate so I know exactly when my order will arrive.

But in addition to their selection and customer service I also commend Amazon for its responsible business practices. On the website their is a section called Amazon and Our Planet where it describes the ways Amazon tries to reduce its environmental impact. These include frustration free packaging, environmentally friendly packaging, and  AmazonEncore Publishing which ensures that "physical editions are assembled using recycled and sustainably harvested paper stock that has been certified by the Forest Stewardship Council or the Sustainable Forestry Initiative." 


Also, in times of disaster, customers can make donations to the American Red Cross through Amazon. Through icons located on Amazon's homepage, customers have donated more than $35 million to global relief programs since 2001. 

Another way Amazon customers can help nonprofit organizations is through Amazon Wish Lists. Through this service, people can help organizations by giving them exactly what they are looking for and the right amount of each particular product. And this all done through a payment system that people know to trust as safe and Secure. 


There is also an affiliate marketing program called Amazon Associates. "As associates, organizations place links to Amazon products and services on their websites. For each purchase made through these links, the organization earns up to 15% in referral fees from Amazon.com. It's a great way for nonprofits to earn revenue without asking donors for direct contributions. Plus, donors know that each time they make a purchase through these links, they're helping their favorite nonprofit."

Nonprofit Survival Guide for Hard Times

I recently read an article on About.com by Joanne Fritz entitled Nonprofit Survival Guide for Hard Times. This article contained eight steps that can help organizations get through the tough times like our current recession. The steps are:

1. Don't pull back on fund raising.
Just as companies shouldn't cut back on advertising during a downturn so they don't lose top of mind with customers, Fritz writes that retreating won't help a nonprofit organization. Instead, take the opportunity to focus efforts and establish more personal relationships with donors.

2. Let your donors know that those you help are in more need than ever.
"No matter how a donor may be hurt by an economic downturn, the disadvantaged are damaged far more and have less opportunity to recover."


3. Find the stories that will touch the hearts of your donors.
In these times especially, try to find ways to show the shared humanity between people that need help and current and potential donors.

4. Stay in touch with people who have stopped giving.
In addition to the possibility of recapturing these donors, staying in touch reminds people of what they want to support when they can later afford to donate again. 


5. Find new donors in industries that are still thriving.
Though this is not the case for most, there are some industries that are recession proof and would be great donation candidates. Instead of following the traditional best practices, be proactive and find donors that other organizations haven't reached out to yet.

6. Take the opportunity to lower fund raising costs.
One way to do so is instead of having an expensive event, organizations can go directly to their donors for donations. For example, "Wrap a simple, low-cost mailing around the fact that you are lowering overhead by skipping the event, and ask for a direct gift that will put more services and money into your clients' lives."

7. Cut costs -- sensibly.
This is a time to cut things that lack efficiency and are extraneous and unnecessary. Just make sure to never deviate from the organization's mission of helping those that need it.

8. Take a new look at projects you intend to raise money for.
Though there may be ideas for future spending, this is not the time to use valuable resources. Instead postpone changes until the economic future is a little more certain.

All in all these ideas are great for nonprofits experiencing lean times. Economic downturns make things harder but at the same time they also offer the opportunity for innovation and new ways of doing things. New ways that are make your organization more efficient and more effective at achieving its mission.

A Case for CSR And Ethics

For my Marketing Management and Strategy class I'm reading a textbook entitled Marketing Strategy by O.C. Ferrel and Michael D. Hartline. One of the chapters is on Marketing Ethics and Social Responsibility in Strategic Planning. It lays out the importance of ethics and social responsibility for success in business.

"Firms that choose to take these extra steps concern themselves with increasing their overall impact on society, their local communities, and the environment, with the bottom line of increased goodwill towards the firm, as well as increased profits," writes the authors.

An example in the book is the White Dog Cafe in Philadelphia. Owner Judy Wicks has grown her business from selling coffee and muffins in her home to a restaurant that can seat 200 and grosses $5 million annually. "Wicks pays a living wage to all restaurant employees, even dishwashers; however, most employees at White Dog Cafe make above this amount." What's more is that the restaurant is powered by renewable energy and 10%-20% of profits are donated to White Dog Community Enterprises. This affiliated nonprofit strives to achieve a more socially just and environmentally sustainable local economy in the greater Philadelphia area.

High ethical and responsible standards can benefit firms by attracting employees. A survey conducted by business consulting firm LRN found that 94% of respondents considered it very important to work for an ethical company. And 82% would even take a pay cut to work in an ethical environment.

Corporate Social Responsibility can also benefit companies by increasing employee loyalty. An example where this paid off is for Washington's own Burgerville. It "realized significant cost savings, decreased employee turnover and higher sales after it began to cover 90% of health care costs for all employees who work over 20 hours per week." When employees are proud to work for a company their commitment to achieving high quality standards also increases.

I will end this post with two more quotes from my textbook that show the sales benefits of companies behaving in socially responsible and ethical ways.

"A Cone Cause Evolution study revealed that two-thirds of Americans consider a company's business practices when making purchasing decisions, with 85% claiming that they would switch products or services should a company be revealed to be unethical."

"Research by the brand and marketing agency BBMG revealed that about 3 out of 4 Americans prefer to buy goods and services from firms that are socially responsible and good corporate citizens."

Ban on Donation Apps

Apple's decision to not allow people to donate on the iPhone through charity apps have irritated nonprofits. Stephanie Strom of the New York Times writes that instead of being able to donate directly through an application, "Prospective donors instead are directed out of a nonprofit’s app and to its Web site, which the organizations say makes the process of contributing more cumbersome." Nonprofits argue that donations can be increased if people could use apps directly instead of the current more difficult longer method.

In Apple's defense executive director of Public Radio Exchange Jake Shapiro has said, "one of Apple’s major objections has been that if donations were to go through its payment mechanism, it would have to be in the business of managing and distributing funds and verifying charities as well." That argument does make sense being that Apple is a computer and online music retailer, it may be difficult and costly to have to manage the distribution of money in an industry it is not familiar with.

But is that the only issue? Following the earthquake in Haiti, Apple solicited donations for the American Red Cross through iTunes showing that they can be an intermediary for charitable giving. This seems to lead that another large aspect of this issue is money. Apple currently takes a 30% cut from its App Store transactions which would likely not be seen as a fair amount to take from nonprofits as a cost of doing business.


If it is a money issue, hopefully Apple and nonprofits can work out a way that people can use apps to easily donate to charity. That way both the causes being supported can benefit from increased funding and Apple can benefit from being seen as a company doing the right thing.

It's Not Just What You're Buying...

...It's what you're buying into. That is a quote from renown philosopher Slavoj Zizek referencing the campaign ran by Starbucks in a video that my roommate put on my Facebook page. My roommate found this talk entitled First As Tragedy, Then As Farce on theRSA.org web site. In this animated portion of his talk, Zizek investigates the surprising ethical implications of charitable giving.

 In this talk he examines our current economic capitalism, which he calls cultural capitalism. He talks about the necessity to bring consumption and anti-consumption together by having the desire to support good causes already included in consumption. Zizek then describes the existence of such practices by saying that if you go to any Starbucks Coffee, "when you buy Starbucks whether you realize it or not you are buying into something bigger than a cup of coffee. You are buying into coffee ethics. Through the Shared Planet Program, we at Starbucks buy more fair trade coffee than any other company in the world ensuring that the farmers who grow the beans receive a fair price for their hard work."

More than just talk about companies like Starbucks and TOM's Shoes, Zizek describes himself as misanthropic and says how charity is not the cure of the disease of poverty. He says that this remedy is part of the disease. These are admirable but misdirected intentions only prolong the suffering. "The real is aim is to try and reconstruct society on such a basis that poverty will be impossible," is a very bold statement just like "charity degrades and demoralizes." Though Zizek is clear to mention that giving is not inherently bad, it is much better than doing nothing. All in all it is a very thought provoking speech and I would encourage you to watch it.

In addition to the animated version, here is the speech in its entirety: