The End of Fundraising E-Book

Jason Saul

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 291

Veröffentlichungsjahr: 2011

Beschreibung

Why does it cost nonprofits on average $20 to raise $100, while it costs companies only $4? Simply put: Nonprofits have no leverage. No one has to make a donation. And since most donors have no direct stake in the organizations they support, they make donations out of the goodness of their hearts. If donors feel like writing a check, they will. If they don't, they won't. The End of Fundraising turns fundraising on its head, teaching nonprofits how to stop begging for charity and start selling impact. For the first time, nonprofits have economic power. We live in a new era where consumers, businesses, investors, employees, and service providers attach real economic value to social outcomes. An era where yesterday's "feel good" issues--education, the environment, health care, the arts, and animal rights--now have direct economic consequences and opportunities. Nonprofits now have leverage. To use this leverage, nonprofits must learn how to "sell" their impact to a new set of stakeholders. Using his fifteen years of experience advising the world's leading nonprofits, foundations, and corporations, Jason Saul reveals the formula for how nonprofits transcend the paradigm of charitable fundraising and reach true financial sustainability. Specifically, this groundbreaking book offers nonprofit professionals a guide to * Understand the role of social change in our economy * Capture and communicate impact in simple, compelling terms * Identify the new market stakeholders that value nonprofit outcomes * Create powerful value propositions to increase leverage * Improve the success of a nonprofit's pitches to funders The End of Fundraising includes the tools needed to effectively frame, market, and sell a nonprofit organization's impact, and contains step-by-step guidance for creating dynamic new opportunities with a variety of funders.

Leseprobe

Table of Contents

Title Page

Copyright

Dedication

Preface

Who This Book Is For

Introduction: The End of Fundraising as We Know It

The Rise of the Social Capital Market

What the Social Capital Market Means for You

Part I: Capturing Your Impact

Chapter 1: From Accountability to Value

Impact as Accountability

Impact as Value

Chapter 2: Measurement

The Difference Between Evaluation and Measurement

The Difference Between Activities and Outcomes

The Difference Between Good Measures and Bad Measures

Chapter 3: Creating a Product Called Impact

Engage Your Stakeholders

Define Your Outcomes

The Success Equation

Boys & Girls Club of Greater Baton Rouge

Part II: Marketing Your Impact

A Value-Creation Mind-Set

Chapter 4: New Market Stakeholders

Service Providers

Upstream “Consumers”

Corporate Partners

Beneficiaries That Can Pay

Social Investors

Finding the Fulcrum: Who Are Your Impact Buyers?

Chapter 5: Not All Outcomes Are Created Equal

Change in Status

ROI

Systemic Change

Chapter 6: How to Increase Your Value

Increasing Value Through Messaging

Increasing Value Through Strategy

Part III: Selling Your Impact

Chapter 7: It's Not About You, It's About Them

Identifying the Need to Buy

Articulating Your Value Proposition

Chapter 8: The Art of the Deal

Step 1: Find a “First Friend” or a Champion Inside

Step 2: Map Out Your Strategy

Step 3: Locate the Buckets of Money

Step 4: Build the Business Case

Step 5: Overcome Channels of Resistance

Chapter 9: The Seven Immutable Laws of Selling Your Impact

Conclusion: Implications of the Social Capital Market

Epilogue: Frequently Asked Questions

Notes

Preface

Introduction

Part I

Chapter 1

Chapter 2

Chapter 3

Part II

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Conclusion

Epilogue: Frequently Asked Questions

Acknowledgments

Index

Copyright © 2011 by Jason Saul. All rights reserved.

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Library of Congress Cataloging-in-Publication Data

Saul, Jason, 1969-

The End of Fundraising : Raise More Money by Selling Your Impact / Jason Saul. — First edition.

p. cm

Includes index.

ISBN 978-0-470-59707-1, 978-1-118-01005-1 (ebk), 978-1-118-01006-8 (ebk), 978-1-118-01007-5 (ebk)

1. Fund raising. 2. Marketing. 3. Nonprofit organizations–Public relations. I. Title.

HV41.2.S28 2011

658.15′224–dc22

2010048720

To my wife, Lisa, whose love and selfless devotion is the only reason I was able to write two books in the same year; and to my two little ones, Jonah and Max Julius, who made the ultimate in-kind donation: sacrificing precious time with their daddy to benefit the greater good.

Preface

Over the last fifteen years I have helped thousands of nonprofits to answer one question: How do we measure our social impact? Many—myself included—believed that if we could just prove impact, more funding would come our way. Measurement was the currency that would finally give us leverage. But alas, research shows that only 3 percent of donors really care about results.1 Does that mean we should give up trying to measure? Or develop even more metrics? Or try to educate donors to care about performance?

No. My epiphany was that the reason we are spinning our wheels so hard is that we may, in fact, be trying to convince the wrong people.

You can create leverage only with people who value what you have to offer. Of course donors and foundations “value” our work from a psychic—that is, an emotive—point of view. But imagine if there were people who really valued our work—who economically benefited from the social outcomes that we produce. We wouldn't have to “beg” for contributions; we could actually “sell” our impact. We wouldn't have to traffic in the currency of psychic benefit; we could actually have leverage with rational decision makers. We could be judged not by the content of our programs, but by the quality of our outcomes. Would that such a world existed…

But it does! Today we live in a very different world from the “independent sector” of yore. Today the mainstream economy—Wall Street, corporations, consumers, employees, and investors—has begun to embrace the value of social change. Today there is real economic currency to the outcomes we produce for education, the environment, health care, global development, even the arts and animal rights.

Still, as much as the market has embraced our work, we have yet to embrace the market. We continue to market to donors who “feel good” about our work, rather than mainstream economic actors who “value” our work. We continue to fundraise outside the walls of the economy, when we could be selling our impact within.

It is time we change. This book is about empowering nonprofits to make that change—to part the Red Sea and deliver our sector into the economic holy land.

To raise funds in today's “enlightened” economy, we must full-on embrace the fact that social change is a fundamental part of creating economic value. And we must use our energy, our creativity, and our entrepreneurialism to innovate new ways of forging social outcomes into economic currency. We will not find the answers by frittering around the edges of the economy: impact investing, venture philanthropy, low-profit limited liability corporations, and social return on investment are not going to cut it. As I write this, I am surrounded by a litter of books that purport to have the “answer”—the ultimate solution to save the nonprofit sector:

The Power of Unreasonable People: How Social Entrepreneurs Create Markets That Change the World

ROI for Nonprofits: The New Key to Sustainability

Forces for Good: The Six Practices of High-Impact Nonprofits

Creating Philanthropic Capital Markets: The Deliberate Evolution

Billions of Drops in Millions of Buckets: Why Philanthropy Doesn't Advance Social Progress

The Power of Social Innovation: How Civic Entrepreneurs Ignite Community Networks for Good

Uncharitable: How Restraints on Nonprofits Undermine Their Potential

Philanthrocapitalism: How Giving Can Save the World

The advice is thoughtful, creative, and daring. The problem is, these books are written for a different paradigm—a world in which nonprofits live outside of the economy. But we don't need to create a parallel economy: a “nonprofit stock exchange” or philanthropic capital market. The market we have is a perfectly good one. We just need to find a better way to play within it.

Specifically, this book will teach you to:

Understand the role of social change in our economyLearn how to engage stakeholdersDefine your impact by outcomes, not activitiesDetermine which stakeholders value your outcomes the mostTranslate your work into high-value outcomesCreate powerful value propositions to increase your leverageImprove the success of your pitches to funders

This book is organized into four main sections.

The End of Fundraising as We Know It sets the stage for what I call the “social capital market” and describes the implications of this new economy for the way nonprofits do business. The purpose of this section is to change the fundraising paradigm and to shift our focus to a much larger source of capital than psychic donations.

Capturing Your Impact provides the background, concepts, and tools you will need to turn measurement into a fundraising asset. The purpose of this section is to help organizations define their outcomes and performance measures, which form the basis for your value proposition to the market.

Marketing Your Impact names a new set of stakeholders (called “impact buyers”) who are willing to pay for social outcomes and identifies the three highest-value outcomes that these funders want to buy. This section teaches you how to create leverage by connecting your outcomes to the market.

Selling Your Impact will give you the core sales skills and tips you'll need to make a more effective pitch and close the deal. This section is designed to help you identify the right “buyers” and maximize leverage by communicating the right value propositions.

Who This Book Is For

This book is aimed at nonprofits (big and small), grantmakers, corporate giving and CSR departments, government agencies, and academic institutions. It is written for executives and fundraisers, board members and funders, academics and practitioners, graduate students and undergrads, socially conscious thinkers and hard-nosed business people. This book is written to be inspiring and also supremely practical. Although the concepts are big, the insights, case studies, and tools in this book are very real, and based on years of rigorous research and field testing.

I wrote this book as a companion to my recently completed work, Social Innovation, Inc.: 5 Strategies for Business Growth Through Social Change (Jossey-Bass, October 2010). That book is based on a similar premise—that social change can have economic currency—and advises corporations on how to design a new generation of social strategies to create business value. Together, these books invite nonmarket and market players to push beyond what we can do with philanthropy—and to solve social problems by leveraging the engine of the economy.

Introduction: The End of Fundraising as We Know It

A food bank wanted to know how they could raise more money. “All we can show is how many meals we served,” they confessed. I suggested that they focus on a “higher value” outcome—not just feeding people but registering families for SNAP/food stamps to become more economically stable. Then I asked them who valued that outcome. They struggled: Hungry families? The government? I explained that “valuing an outcome” means someone attaches economic value to it and has the ability to pay. I offered an idea: a large percentage of food stamps in America are spent at one store—Wal-mart. Assume your food bank can enroll 100,000 new families in the program statewide. Given that the average food stamp benefit is $133/month,1 that's $13 million per month in new spending at retailers like Wal-mart. Now, instead of going through the back door to the Wal-Mart corporate foundation and asking for a handout, walk through the front door to their sales or marketing department and ask for $1 million! That's selling your impact.

It wasn't always this way. It used to be that doing good was good enough…

It used to be that if you were working for a “good cause”—saving children, housing the homeless, feeding the hungry, curing cancer—donors could be rallied to support you. No one really knew whether you made a difference, and you couldn't really prove it. Still, they gave. They gave because of guilt, compassion, gratitude, tradition, religion, moral duty, personal reputation, status, peer pressure, relationships, superstition, and tax advantage. At the end of the day, giving was driven by the feel-good factor. The only leverage we were able to create was force of emotion: compelling videos, tear-jerking anecdotes, or the personal connections between the donor and the cause. One Fortune 500 company I advised primarily supported domestic violence charities through its corporate foundation—because the wife of the CEO was really passionate about that cause. This is life in the so-called “independent sector.” It is unruly, unpredictable, uncontrollable, and totally unsustainable.