What Do Innovative NFPs Have In Common?

When most of us hear the word innovation, we likely think of the creation of new products and services. The true meaning of innovation, however, isn’t limited to the invention of new things that no one has seen or dreamed of in the past.

The word innovation comes from the Latin word innovare. Meanings of this term include to “make a change from established routines and practices or to restore or renew something that already exists”. Innovative NFPs find ways to increase communication and successful relationship building with multiple stakeholders so that more individuals come to understand and support the nonprofit’s vision.

The following are some strategies that innovative organisations use to sharpen their focus and gather supporters to help them change either the entire world, or, at least their corner of the world.

Innovative NFPs Create and Maintain Communities

Forward thinking nonprofits can multiply their efforts, and increase their results, by focusing on the human element and seeking ways to connect with others. These organisations focus on communication to raise awareness and donations, building networks of like-minded individuals who come together to participate in the organisation’s projects.

Get Up!, is one Australian nonprofit that relies on its community of supporters and network of strategists to bring attention to environmental, civil rights and other social justice issues and effect change. Since its founding nearly a decade ago, the organisation’s supporters have raised billion in mental healthcare funding, and prevented the opening of new major coal mines that harm the Great Barrier Reef and other parts of the ecosystem.

Forward Minded NFPs are Open to Change and Experimentation

Charities and associations that are the most successful in terms of fundraising, and their ability to provide services to their communities, tend to not rest on their laurels. Rather than being content with doing things the way “they have always been done in the past,” the most innovative NFPs are open to trying new ways of doing things.

For example, rather than relying on traditional fundraising events to raise money, such as direct mail appeals, raffles and auctions, the Movember organisation utilises social media to raise awareness and donations via crowdfunding.

Since 2003, the organisation has issued challenges to raise awareness about prostate cancer and other health issues that primarily affect men. Some of the more unique events include volunteers growing a mustache during November. Supporters can also participate in physical challenges such as running a marathon or climbing a wall and then share their results on social media to encourage others to donate and get involved.

From its humble beginnings in a bar in Melbourne in 2003, this Australian charity has grown to now include chapters all around the globe. As of 2015, over $770 Million Australian dollars have been raised since the NFP’s founding, and over 1,200 projects that support men’s health have been funded.

NFPs with an Innovative Mindset Use Confidence to Power Change

While building a community of supporters, and experimenting with novel approaches to fundraising can make it easier for your nonprofit to accomplish its mission, willpower and confidence also play a powerful role in the success of your efforts. Being able to remain upbeat, positive and determined in the face of overwhelming odds can help your organisation continue to push for change and achieve results.

An example of this is the good work done by the Fred Hollows Foundation whose mission is to end preventable, treatable blindness in Australia and around the world. Each year, millions of people all around the world lose their sight, but 4 out of 5 of these individuals have a preventable, or treatable, cause of blindness.

The nonprofit continues the good work started by eye surgeon Dr. Fred Hollows, and is primarily focused on raising money to train doctors and other healthcare professionals, provide medical facilities, equipment, and antibiotics and continuing to perform sight-saving operations.

According to the foundation, “Our work won’t stop until the injustice of avoidable blindness is completely eradicated in Australia and in the rest of the world. We believe, without a doubt, this will one day be accomplished.” Since its founding, the organisation’s determination and focus have enabled them to restore the sight of over 2 million individuals around the world.

Is your nonprofit making progress towards its goals, is the completion of your mission in sight, or, is something holding your organisation back from achieving its peak performance? If you’re not quite hitting the mark for your fundraising and other goals, it’s probably time to look for ways to shake things up and try something new!

Challenges Facing NFPs Today

Running a charity in today’s modern business world can be very problematic, as can achieving positive and long-term financial strength. However, despite all the complex issues which need to be overcome, it is of course, very rewarding. Here are some of the challenges facing NFPs today.

Governance issues

Governance can be a very large issue for NFPs. A nonprofit is entirely different from a for-profit business as the board, CEO and stakeholders need to be taken into account for every decision that is made. And then there are the government rules and regulations on top of that. Unlike a for-profit organisation, the board members have a large say in what goes on. A trustee has the huge task of catering to every demand and is personally liable for every decision and action they take.

Sourcing talent

To be the best at what you do, you need the best team members to help you achieve it. But this can be hard from a non-profit’s perspective, particularly with low budgets and high salary expectations. Mentoring top talent can take time and money. And as many staff come to nonprofits with very little experience and then leave once they have developed their skills, it can be very difficult to retain them for the long-term.

New NFPs can struggle

As new NFPs enter the marketplace, it can be a struggle for them to keep up with the more established and larger sized charities. It can be difficult for them to take risks and they don’t have the reputation to gain the support of donors and supporters. Until they grow, small NFPs can experience many frustrations, and many often close before they are even given a chance to succeed properly.

Educating the public

Charities have changed a lot over the years, and for the most part, the general public isn’t even aware of what a charity represents. They are unsure as to who is paid and unpaid and overestimate how much money goes into issues such as fundraising and administration. Education needs to be a big part in leading the way for change in this area.

Demonstrating impact

While there is a lot in the news about charities – which ones are actually succeeding in their goals? Which charity is doing a great job? And how are they representing their success to the general public? Demonstrating your impact in a successful way is one of the best ways you can increase your donations and support. But achieving that successfully can be one of the biggest issues any charity can face.

This list is not necessarily exhaustive but as you move forward, it is important to note that transparency and communication are a great way to overcome these and many other issues that your NFP may come across.

Is It Time For A Reputation Health Check?

The NFP industry requires charities and non-profits to be transparent in their actions. This transparency puts a large amount of focus on trust, confidence and the reputation of the charity as a whole. Often the donor requests and fundraising successes rest wholeheartedly on the reputation of the charity, and there is a lot of competition in the industry to garner support, especially from the larger organisations.

NFPs that tend to be successful in their charitable efforts can not only demonstrate their best practice governance but also communicate it effectively. All NFPs and even for-profit businesses need to manage their reputation on a regular basis. It is critical to the successful operation of the non-profit and to develop positive connections with stakeholders, donors, members, government bodies and the general public.

What exactly is reputation management?

Reputation management covers the building up and the monitoring of your brand through your efforts in media promotion and marketing. A health check enables you to look at your marketing efforts and responses to understand where your vulnerabilities lie and where you can further develop your promotional opportunities.

Auditing for risk is something that every business should do on a regular basis. It is better to create forward plans rather than panic when an issue occurs, and your organisation is forced into crisis mode. Draft out some scenarios and work out some helpful strategies that will enable you to be able to control the outcome more closely.

From a social media perspective, while it is easier to communicate directly with donors and supporters, it is also easier for NFPs to be targeted with negative comments, whether fair or irrational. Knowing this is half the battle.

How do people perceive your business?

How do stakeholders view your NFP? How does the general public see your business? Are you different from other charities working in a similar field? If you are not able to answer these questions, then you may be missing value opportunities for your NFP to safeguard and develop your brand. Talk to your donors and sponsor to get real insights on your efforts to help you develop more effective strategies and marketing efforts for the long-term. Your ability to not be able to effectively understand your competitors can also affect you negatively. Know where your strengths are to be able you to stand out from the crowd and gain the confidence of the general public.

How can you manage your online reputation?

Here are some tips to help you manage your online reputation.

• Be objective when it comes to your website. Consider whether it is easy to navigate or find relevant information. Are the contact details up to date and accessible?
• Review your social media and online strategies. Let employees and volunteers know what they can and cannot do on social media.
• How is your organisation represented on third party websites? Do a search and see where you can improve your profiles and online representations.
• Allow plenty of opportunities for members, interested stakeholders, volunteers and employees to give you regular feedback.
• Set up alerts to monitor the internet for organisational content so you can keep on top of who might be saying what.

Once you understand how your NFP is seen, you can then make steps to direct the chatter. Be proactive with your efforts so you can ensure your organisation can fulfill its mission and ultimately increase support and contributions from others.

How To Budget For NFP Events

Fundraising campaigns are one of the most significant sources of funding for most nonprofits. Most fundraising events are not without cost, however.

Preparing a budget for special fundraising events helps nonprofits avoid overspending, especially if their event does not raise an amount equal to or greater than its fundraising goal.

The Importance of Setting a Large Enough Fundraising Goal

When making plans for your nonprofit’s next fundraiser, it’s important to set an appropriate amount as your fundraising goal. This goal should be realistic; it should be an amount that your nonprofit can reasonably expect to raise during the event.

Your fundraising goal should also be for an amount that is large enough to cover all of the costs and expenses associated with the event. In addition to this amount, you will want to add a net sum that is left over after all of the costs are paid. This net sum should be large enough that it justifies the time and effort that is put into hosting the event.

The Importance of Creating a Detailed Budget Specifically for the Event

You should create a separate, completed budget that lists each expense that will arise as a result of hosting the event. This list should be thorough, and highly detailed to help you avoid under budgeting.

When creating your budget, look at the history of past, similar fundraising events held by your nonprofit. Look at the types of costs that were incurred, as well as the amounts that you have raised during these events. Can your nonprofit reasonably expect to spend a similar amount, or, have costs increased in one or more categories? Determining the answers to these questions can help you avoid underestimating the actual expenditure.

At the very least, your budget should include the cost to rent the venue for the event, as well as unique items related to the location. For example, will your nonprofit need to rent extra tables and seats or other items and equipment to hold the event at the designated location? Be certain to include realistic estimates for these items in your budget.

Catering, staffing, creating and sending invitations, security, transportation, VIP accommodations,  entertainment, ticketing, fundraising software, marketing materials, promotional and gift items/event swag are all typical expenses associated with special fundraising events, so be certain that you include these and any other costs in your budget.

Don’t Forget to Plan for the Unexpected and Include it in Your Budget

It’s also a good idea to include a built-in “cushion” in your budget to help your nonprofit be able to cover the cost of unforeseen events to help you make certain that your nonprofit has enough funds to cover the cost of the event.

Use Caution When Attempting to Cut Costs

Many nonprofits are still feeling the pinch from the global economic downturn of a few years ago, and remain short of funding, especially given the resulting cuts in Federal monies in the form of grants that many nonprofits relied upon. If your nonprofit is struggling financially, it can be tempting to cut corners to reduce spending. While reining in expenses is important, it’s equally important to avoid cutting quality.

For example, you don’t want to skimp and not spend enough on marketing, and word fails to get out about your event. You also want to make certain that you choose reliable vendors for the venue, catering, and so on. Just because one vendor offers a lower price, doesn’t mean that you can depend on them to deliver on time. Make certain that you still check references and look at past histories in addition to price when comparing services and creating your budget.

Accurately budgeting for your special event is an important part of ensuring your nonprofit’s financial stability. Don’t forget the traditional fundraising metrics such as net revenues and costs to raise when hosting your event, and preserve this information to help you more accurately forecast the budget for your nonprofit’s next special event.

3 Smart Ways to Keep Donors Happy and Informed

Many nonprofits place the focus of their fundraising efforts on broadening their base of support, and increasing the reach of their messaging in order to recruit new donors. Retaining your current donors, however, is just as important as attracting new ones.

Generally, it’s easier to convince an existing donor to donate again than it is to convince individuals that are unfamiliar with your organisation to donate to your cause. This is because your current donors are likely already acquainted with your nonprofit’s mission and the important work that your NFP does to help its community.

While existing donors are already aware of the good work that you do, that doesn’t mean that you no longer have to put forth any effort if you want to receive additional contributions. In fact, it can require a great deal of follow-up and interaction to retain an existing donor and encourage them to continue to donate on a regular basis.

Maintaining the relationship and encouraging donor engagement is critical, the following are a few tips to improve your relationship with your existing network of donors so that they are more likely to want to continue to support your cause.

Show Gratitude

One reason way some donors choose to not make repeat donations is that they do not feel as though their contributions are appreciated. On your organisation’s website, make certain that you are expressing a heartfelt thank you to all donors, regardless of the level of their donation. Ensure that your online donations send an automatic expression of thanks at the moment that the donation is made.

To encourage repeat donations, especially to contributors who make larger contributions, or re-occurring payments, use a more personal touch to show your thanks. A handwritten note sent by post, a telephone call, or even taking the time to thank the donor in person all require extra effort and show your donors that your organisation truly appreciates their support.

For regular donors, and large donations, you might even consider sending complimentary free tickets to your nonprofit’s next gala, ball, auction or other event to show your appreciation and gratitude. Offering donors, perks, awards and other forms of recognition goes a long way towards building a relationship with your donors and keeping them happy and engaged with your nonprofit.

Keep them Updated

Donors are more likely to continue to contribute to your nonprofit when you keep them updated and informed about your latest, news, events and projects on a regular basis. Ensure that your website has a page that is devoted to interest stories that show the impact of your non-profit’s work.

Use social media networks such as Twitter, Facebook and Instagram to keep donors updated as well as to offer recognition for their efforts by giving individuals donors a shout out when they participate and give during special drives and other fundraising events.

Make certain that you post updates on items of interest to your donors in all of your nonprofit’s publications, including newsletters, emails, podcasts, and videos. Donors normally contribute because they want to make a difference and they are more likely to contribute on a regular basis when they can “see” the progress that your nonprofit is making towards fulfilling its mission.

Be Transparent

Donors are more likely to give to nonprofits when they trust them and the individuals that are involved with the day to day operations of the organisation. Take steps to increase your NFP’s transparency. Publish financial updates that show the status of your nonprofit’s financials. Devote a specific page to financials on your nonprofit’s website and update it frequently. Include staff pages and short biographies for board members, administrators and other employees or volunteers so that donors can learn about the backgrounds and personalities of those who are integrally involved in your organisation.

Top Reasons to Become a Volunteer Treasurer

Filling the post of volunteer treasurer can be a difficult task for many boards. While volunteer treasurers are responsible for performing a number of significant tasks and duties, there are a number of myths about being a treasurer of a nonprofit organisation that can hold individuals back from volunteering. The following are a few of the benefits that can arise from fulfilling the role of volunteer treasurer.

Improve Self-Esteem and Sense of Self

Many volunteers report that they find that they effort and work that they do to support their cause is very rewarding. Volunteering gives folks that participate a sense that the work that they do is meaningful, and that the actions that they are taking are helping to bring about positive change and transforming their communities into a better place.

This sense of working with others to serve a greater purpose helps improve the morale and sense of well-being one has as a volunteer.

Networking

Because their service often involves working with both other volunteers and service recipients, volunteering gives others the opportunity to meet new people, and learn new things about existing connections. Volunteering connects individuals with others who often share their values, and this increases friendship and a spirit of camaraderie and belonging. Greater connectedness with others increases empathy and happiness, which can improve wellness and well-being.

Volunteering can also boost one’s employment opportunities, as it makes it easier for volunteers to meet others in diverse fields and backgrounds. This increases prospects for the volunteer and can make it easier to find new positions in one’s field, or change careers entirely.

Learn New Skills and Use Existing Skills in a Different Way

Many accounting software packages have simplified common treasurer tasks, such as creating the budget and other reports and documents. It is no longer absolutely necessary to have prior accounting or bookkeeping experience to be a successful volunteer treasurer. However, volunteers with prior accounting, finance, insurance or other similar experience benefit from using their existing skills in a new way that offers them a different perspective on accounting processes and procedures. Others without this experience will appreciate the chance to learn new skills that are frequently used by volunteer treasurers.

Learning new skills not only help volunteers to grow as individuals, but, it provides them with an opportunity to update their resume and possibly increase their chances of success should they decide to enter a new field or search for a new position.

Finding Volunteers To Support Your NFP From Your Email List

Your email list is one of the best resources you have. It consists of people who may have volunteered, are considering volunteering or are interested in your charity. That is why it is important to make the most of this method to boost the number of volunteers you have assisting your organisation.

Keep it short and to the point

While you make think a lengthy email is better, try to communicate all the information you have in one brief request. In today’s age, email holders are often overwhelmed with the number of emails that appear in their inbox. Keep it simple and to the point.

Emphasise the good they can do

Don’t just tell them what they can do, let them know how much they will be helping others by giving up their time. People volunteer to make a difference in the community, so demonstrate that in your email as much as possible.

Showcase the benefits

Volunteering can also teach individuals new skills which will often look good on their resume. Point these skills out to the reader so they understand that by giving up their time, they will also gain skills which can they can use to further their full-time positions or other volunteering positions in the future.

Personalise the email

Add the recipient’s name to the email so that there is a higher opportunity of them even reading it in the first place. It will increase your chances of being noticed and getting your message out there to your audience. Personalisation can increase the average open rate of non-profit emails to increase above the standard 25% to closer to 30%.

Add images to brighten their inbox

If your email text is all words, then your readers will likely skim over it and miss the important points. Add some interesting pictures so they can see at a glance what your charity represents and how they can help you individually. It will keep their attention for slightly longer and give you a fighting chance to gain extra volunteers.

Convey a sense of immediacy

Let your prospective volunteers know that it is important that they respond as quickly as possible. You don’t want to hear from prospects two months after your email goes out. Let them know that interest will need to be provided as soon as possible so you can move on to the next steps of the volunteer recruitment process.

These are all helpful tips to ensure that your email has more chance of being read, let alone acted upon. One bonus tip which you will find especially useful is to keep it real. Show your charity’s personality and aim through your email without trying to be something that you are not. Authenticity is extremely important in maintaining quality connections with your readers, your volunteers and the general public.