Tuesday, March 26, 2013

Where do social media fit with fundraising?


I’d be very surprised if any of you reading this haven’t scratched your head from time to time and asked this very question. Social media have permeated our lives to a significant extent.  You may also have scratched your head and asked whether media is a plural or collective noun?!  Here’s an answer.

Back to social media and fundraising. My suggestion is start with the basics.  What is required for effective fundraising? Identifying prospects.  Finding out more about them. Building a relationship. Making a case to them. Offering them an opportunity to support your case. Thanking them for their support.  Keeping them informed about what you are doing.  

Let me go out on a limb here.  I think that social media can do – in one way or another – every single one of these.   Here’s some ideas.

Identifying prospects.  If you haven’t already, start a Facebook page, a LinkedIn Group and/or Company Page and get Tweeting.  Identify who engages with you. Engage them back. Befriend them

Finding out more about them.   The beauty of befriending or following anyone via these media is the access it gives you to their information.  You can begin to learn about their interests and their networks. As well you may find basic information including occupation, employer, contact details (other than through the social medium itself) and links to their other social media and / or website.  Both LinkedIn and Twitter are especially good for this.

Building a relationship.  Here is what it’s really about.  Isn’t this why it’s called social media?  Warning notice.  This is where you will discover just how much time and effort using social media for fundraising will cost you.  All I will say that over time you will develop your own techniques and disciplines.  Plus there are some good tools to help you monitor and manage your relationships.

Making the case.  This is where discipline helps.  Remember you are using social media for fundraising (OK “ friendraising”).  What you want to be sure about is that you are tweeting, posting and messaging with a purpose.  You are offering insights and soundbites and tidbits related to your case for support.  Stay on message whatever the temptations.

Offering them an opportunity to support your case.  There are Facebook apps available for you to ask for donations directly from your page.  Both Facebook and LinkedIn offer you ways to advertise and promote events.  With all media you can link to opportunities for people to contribute, attend events or volunteer.

Thank them for their support.  Facebook allows you to directly link a thank you mention to a donor public profile.  Twitter handles (that’s the @name bit) can be used to spread the love around.  Of course, direct messages can be sent via all three of LinkedIn, FB and Twitter.

Keep them informed.  You betcha!  Need I say more.

For the many of you who will want to explore this topic further here are some links to guides, blogs and reports that are worth a read.


On line experts share their fundraising and marketing ideas
Blackbaud

Use social media to reel in big fish donors. Beth's Blog

LinkedIn for identifying, qualifying, and engaging your prospects. NPEngage

Social media and major gifts. Passionate Giving Blog



Social media infographic. Mashable




Monday, March 11, 2013

India vs Australia (Who's winning this test?)


I have just come back from India where I had the opportunity to attend the Indian Philanthropy Forum in Mumbai. I was able to listen and talk to a number of nonprofit leaders. To say I am impressed is an understatement.  In fact, I would say inspired.  And would even say that I saw and heard lessons to be learned and models to be copied that would benefit practice in other countries including ours.

I listened and watched some extraordinary presentations.  They came from small and medium sized, indigenous NGOs pitching their cases for support to social investors and philanthropists. The clarity and structure of the information, usually pitched with considerable passion and conviction by the group’s CEO was exemplary. In part this was due to their coaching and training by Dasra the hosts of the Forum about whom more later.

There is famously one nonprofit for every 400 people in India!  This statistic, however, is massively inflated by the fact that it represents gross registrations.  Unfortunately, there is no de-registration of those that are defunct.

Generosity in India is pervasive.  Around 80% of the population, according to a 2012 Charities Aid Foundation survey, give to help others. The big challenge is that only around 27% is given to nonprofits.  The larger portion is given directly to individuals in need – family, servants, neighbours, beggars.  Giving to charities represents about 0.3-0.4 per cent of gross domestic product – behind the US at 2.2 per cent, yet ahead of fellow Brics - Brazil at 0.3 per cent and China on 0.2 per cent of GDP.   High net worth individuals in 2012 donated ten times the national average - 3.1 per cent of their income.  (Australia currently does not produce comparable up-to-date statistics).

Much of my visit was spent with nonprofit organisations whose work is to change this imbalance.  They are run on shoestring budgets.  They are lead and staffed by university educated Gen X or Y, women mostly. Members of the fast growing middle class.  All these people could be earning several times their salaries in the private sector. Their offices are spartan, often in rented residential accommodation adapted to provide workspace.  Every single person I met was incredibly welcoming.

CAFIndia encourages both individual and corporate giving.  It has established payroll giving in India.  Indian Parliament is about to pass a law making it compulsory for corporate India to spend 2% of its profit on CSR initiatives.  (However, as I heard one speaker at the Forum note, “There’s many a slip between cup and lip”. India’s Parliament moves slowly).  CSR in India has traditionally been understood to mean corporate philanthropy.  This, for now, until other elements of CSR are adopted, is likely to create a huge opportunity for substantial growth in giving. (Australian equivalent is CAF Australia).

Centre for the Advancement of Philanthropy for 25 years has provided the nonprofit sector with training and advice on governance and legal issues.  This is no mean feat in a federation where there is a plethora of Acts and regulations of Central and State governments for nonprofits and fundraisers.  The founder and driving force of CAP left what he described as a “cushy job” as a lawyer.  Ever since, he has helped nonprofits through the legal labyrinth. He also writes extensively and champions the sector to both business and government. (As far as I know there is no equivalent in Australia).

Dasra was founded by two people who left the security of careers on Wall Street and brought their skills to the Indian nonprofit sector. Dasra puts philanthropists and social investors together with nonprofits.  It intensively coaches and mentors these nonprofits.  The proof of the Dasra pudding was the nonprofits I saw and heard make cases so persuasively. (Possible the nearest comparison would be Social Ventures Australia).

Guidestar India was started to provide robust information about the performance of nonprofits to would be donors.  Its founder was driven by her training and experience in the Indian finance sector and her strong desire to help others.  The searchable online database now has information on 3,500 nonprofits.
Indian Foundation for the Arts meets a difficult challenge close to my heart. Even in the face of poverty and other social issues, artists and creative people will do a great deal to change India’s society for the better. (Australia has no equivalent to Guidestar).

Indian Foundation for the Arts makes grants, runs training programs and advocates for the arts, all without any government support.  As described to me: “IFA does everything that a government funded arts council (like the Australia Council) does but with no government funding!” (Nearest equivalent would be the government funded Australia Council).

Resource Alliance South Asia is part of the global organisation of the same name. It runs a certificated training program, workshops and an annual resource mobilisation conference in Asia.  It conducts an awards program for nonprofits. It also offers consulting services – “tailored capacity building” – drawing on its international network of experts. ( Resource Alliance has a presence in various regions but not Australia)

Saampradan Indian Centre for Philanthropy was founded in 1996 to promote philanthropy through research and exchange of information.  Nowadays, it focuses on creating regional community foundations outside the major metropolitan hubs. (No real equivalent down under).

South Asian Fundraising Group (SAFRG) is the veteran, founded in 1987.  Its most valuable contribution has been its annual Workshop.  This brings fundraisers from all of South Asia together to learn from fundraising experts from around the world.  In addition it runs one day masterclasses led by local experts.  These programs have recently been joined by a certificate course in fundraising and marketing.
All of these organisations have first to raise their own funds. Governments provide no financial support for the sector.  They do not charge memberships. And usually they charge only minimal fees for their activities and advice.  (An organisation with similar intentions would be the Fundraising Institute of Australia).

There is one lesson I took back with me from this trip.  It is that there is a key difference between the developing and the developed world. The first is described by a verb (well a gerund, to be precise), the second by an adjective.  One is active, doing. The other, well, static….

Fair point?  What do you think?

Facts and Figures

India is the second most populated country in the world with approximately 1.2 billion. Its GDP per head is USD$3,900.  Thirty percent of the population live under the poverty line, which the Indian Government defines as about $0.50 a day. On a more generally accepted measure of $1.25 a day the percentage would be the more commonly stated 40% living in poverty. India ranks 134th of 187 in the United Nation’s Human Development Index.



Now some good news.  India’s economy is ranked 50th for growth at about 7% p.a. (Australia is 103rd, New Zealand 139th). India’s rapidly rising middle class should grow from more than 160 million people in 2011 to 267 million people in 2016.  HNWI numbers are around 120,000.