“Marketing” is not a dirty word.

What relevance do such corporate terms as “customer acquisition cost”, “customer retention metrics”, or “prospect target profile” have for the non-profit world? Too often the answer that my nonprofit clients or prospects give me is “none”, as they want to believe that morality and social vision reside on their side, while corporate values are uniformly lacking To them, the vocabulary of corporate marketing is either irrelevant or inappropriate. They make a sad mistake.

Wikopedia offers us this definition of “marketing”:

“Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service. . . . a set of processes for creating, delivering and communicating value to customers. . .

Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer behavior and providing superior customer value.

From a societal point of view, marketing is the link between a society’s material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships.”

Of course the social service agency, theatre company, or environmental organization are not offering us gift wrapped products. They may provide food and social support to the needy, artistic performance that nourish our soul, protection of our land and water – services that do add value to our lives as individuals and as a society. Their products are services such as this; their “customers” are those of us who might support the endeavor beyond the level of our immediate individual need.

“Communicating the value” for a non-profit takes place as they explain how their service benefits a segment of society – which may or may not be the segment that is being asked to contribute funds that support it.

“Creating, delivering, and communicating value to customers” is the direct work that they do.

And the “market analysis and segmentation” that non-profits may or may not do is the analysis of who might support the program, how it needs to be packaged and described so that its value is most clearly broadcast, and which sub-communities might best be approached to take on each piece of work.

Marketing has always been a mixture of art and science, but the analytic tools to identify interested communities, and to explore how they respond to different approaches have been steadily growing in power and precision. It’s high time for a new community of non-profit leaders to begin using these technologies, and the related social understanding, to develop a stronger network of support.

But the gap between for-profit and non-profit sectors is about more than different notions of whether both really do “marketing”. There’s too often a cultural divide, based on an implied criticism of corporate organizations as being immoral and out of touch with human values. That’s certainly true of some, but there’s a significant community of for-profit groups that are wholesome in every way. There are also plenty of people within the corporate world who are not comfortable with all aspects of their employer’s behavior, but are challenged how best to confront it with a modicum of safety.

We need more programs like United Way’s “shared corporate executive” program that brings skilled executives into their non-profit to share specific organizational and technical skills. These executives can then return to their employer with a new confidence about how any corporate organization can adopt strong values, and can become an affirming community in which differences are an opportunity.

Once the stereotypes have begun to fade, we may all be better able to look at the tools of marketing as tools of helpful social intervention, via which useful products and services get defined, designed, and funded . . . and the world becomes a better place.

Giving Form to a New Organization

I recently met with the organizer of a fledgling non-profit, that will help “new Americans” find best place in our society, offering mutual support, and drawing wisely upon existing resources.

Then, after some reflection, I wrote the following summary of our discussion (slightly edited here for publication).  I share it here not for the specifics regarding this new organization, but as a possible model of the kind of thinking needed to give birth to a vital and well purposed group.

Vision — A world in which the phrase “new Americans” is not even necessary, as all are treated with such dignity and respect, and receive assistance fulfilling their potential, in an open society that values differences as well as strength, that supports varied cultural forms, and that is open to growth and change.  [I’ve just listed my thoughts here, probably not in the most refined, and final, wording]

Mission — New Americans helping each other take their full place in the economic and cultural life of this society, sharing their strengths, receiving help and support, and maintaining their dignity and sense of self worth.  In particular, supporting new Americans who have experienced torture and other trauma, as well as abuses from the systems in place that should have offered support and welcome.

Support committee — An informal group offering you (the presumed director) counsel and support, but that has no decision-making power or formal organizational role.  This group could be a group that can be a sounding bound for you, a source of advise, a place to test out ideas without making them visible to the whole community.

Executive Board — The formal group holding the “vessel” that is your organization.  This is a point of organizational grounding, financial accountability, legal integrity.  But it’s not the place where program originates.  Largely consisting of new Americans, it may also draw upon others who can offer expertise in law, finance, non-profit grants, publicity, development, and other such areas.  With good fiscal sponsorship, this group may not be needed right away to handle the organizations’ grant income, etc.  Still, the structure of self-government is important, and experiencing this mechanism of self-determination right away can be an important experience and inspiration.

Community Board — A representative group, that ideally has members from all the ethnic groups being served.  This is the group that identifies and then evaluates program, insuring that it really meets the needs of the communities it is supposed to serve.  You will need to find clarity about how this group should function, how decisions are to be made, etc.

We spent time discussing the names of these last three groups.  I still support my original comments, but believe you could call them anything — as long as you define clear and appropriate roles for each group.

These words are clearly not definitive.  And that’s precisely why I’m sharing them here.  If I’m incorrectly reporting what was shared and generally agreed upon, or if in retrospect some of these ideas are questionable, this is a great time to correct and move forward.

Some answers, from a guy who asks lots of questions!

I do ask lots of questions, but sometimes I also do provide answers! Here’s are some of the answers I provided to the Linked In “Answers” forums:I
As a nonprofit consultant, which assessment tool(s) do you recommend when trying to understand and evaluate where the organization’s biggest problems lie?

The starting point is not a set of “tools” or automated programs, or report. It’s my own ears, listening to staff, board, and critical stakeholders reporting their understanding of the organization and its issues. And it’s the probing questions I ask, to elicit these comments. Once I’ve identified some core issues, various reports and tools may be relevant. And if the issues are primarily with finances, I may involve other consultants who work more intensively in that area.

Think about getting a good physical exam. After a few simple preliminaries (height, weight, pulse, blood pressure, etc.), the doctor will ask how I’m feeling, will look VERY carefully at my posture, demeanor, coordination, etc., will feel my skin for temperature and moisture, etc. More detailed tests may follow, but they are never the starting point.

How do you personally evaluate speakers you hear?

Great speakers have me engaged. They present memorable images, powerful questions, great metaphors. I don’t have to “evaluate” their performance. Their message stays with me, guides me, informs me. I notice that.

How successful is your donor newsletter at raising money?

I’d be surprised if most donor newsletters succeed at raising money — since that’s not what they are supposed to do. They keep donors and prospects in touch with the organization, cultivate them as stakeholders. Then, when the “ask” comes, the donors or prospects want to support the vital organization that they are so clearly in touch with.

What is your favorite way for nonprofits without alumni to get email addresses?

Just be very careful that you understand “opt in”. An e-mail sent without permission, and without explanation, casts a very bad first impression.

What is the biggest mistake you see new, first time EDs make when working with their Board?

The most common mistake I see new executive directors make is to regard their board as more a burden than an asset. Indeed, it takes work to maintain a board, but a board is a resource to help keep an organization on track, connected, and grounded.

How do you find web developers/designers that are willing to offer Pro Bono services to a NFP?

In most communities, you’ll find an organization that brings together web developers and designers to share skills and insights with each other. Try to identify that group (or those groups) in your area, and ask them to circulate a request from your nonprofit. Be clear what the request is, and include a short statement about why it makes a difference. But do be careful that the skill set you get pro bono is the skill set that you need. A web developer MAY not be the best web designer or web marketing consultant. Interview your pro bono workers just as you would any contractor.

What’s the best accounting software for nonprofits?

One early responder to this question asks, “Why do you think it would be different from any profit making business? ” In many many ways, the needs are the same. But many non-profits need fund accounting, as they keep track of many different grants, contracts, etc. There are packages designed for this, and I’m aware of several add-ons for Quickbooks to provide fund accounting functionality. How important is this for your nonprofit? For many, it’s not important at all. But it makes sense to have on your board at least one person who really understands these issues, and can help guide the organization. As with any software choice, the REAL cost is not the cost of the package — It’s the cost of working with it daily, of putting up with unexpected quirks or lapses in support, and — worst case — of replacing it if a wrong choice was made.

Chartered affiliate organization must file state filing and register for the DOJ and FTB, yet Central Org won’t sign documents, claims it’s unnecessary. Central org does not include chapters in 990 or file a group exemption.

Speak to a lawyer in your state. Informal advice on forums such as this can be valuable in many ways. But it’s no substitute for good professional legal advice. I’m amazed how often people don’t go to the source — and here the source is somebody with the precise legal knowledge.

What is your best tip for leading effective online small group coaching programs?

The key to any individual or group coaching is clarifying goals. Often that’s the full agenda, and its’ repeated again and again. “What are we trying to do?” “Where do we want to be?”. Individual (1-1) coaching may be a useful adjunct to group work. But be careful that people don’t try to use this to point towards others as the source of a problem. The only place that belongs is in the whole group, stated in the most positive way. Yes — accountability is important. I’d suggest that the last part of each session be on “confirming agreements”, and that the first part be on “agreement check in”. I agree that “homework” can be a negative word, even though the concept is great. I might call it “preparation”.”

1. Work with staff and their managers to identify the skills on which training is needed. Communicate this clearly to the training group.
2. Allow enough time and space for the training to really work. Often going off site is helpful. In any case, staff should be totally free to be present with the training.
3. Insure that staff will be able to use the skills they have learned right away. I used to run a technical training department, and was amazed how often staff were sent for training on a new piece of software, but didn’t get to work with it for six months or more. By that time, the value of the training has long been lost.