Less is More?

The year end nears. For those of us in development, it's the final push to get those moving letters and compelling proposals to people and foundations still perceived to have deep pockets. While I'm asking for amounts from $5,000 to $20,000 and much more - there are fundraisers that are doing just fine at $25 a pop.

Mr. Obama did pretty well at that before he became President. There's an excellent report from PBP Executive Reports that looks at the lessons from the Obama campaign. Over time he grew his e-mail list from 90 thousand addresses to 13 million and attracted nearly 4 million donors. The average donation according to some reports was just over $100.

Amazing numbers! Yet there are three contradictory articles in the latest Chronicle of Philanthropy.

One report states that Social Networks Produce Dismal Results. Caroline Preston reports that out of 250 nonprofits surveyed, 74% said they had raised less than $100. Few of them could determine how many volunteers or how much money they had actually raised through their forays into social networking.

Another by Ben Gose Urges Charities and Donors to Focus on Small Gifts. Gose reports that Wendy Smith's new book, Give a Little, reminds us all how the little gifts can really add up. Individuals gave $229 billion dollars in 2007. For some context, the Bill and Melinda Gates Foundation gave just $2 billion the same year. Smith contends most of those donors are from households earning less than $100,000 per year.

Finally, Sean Stannard-Stockton writes an excellent article on tactical philanthropy using Twitter. He makes a great point that Twitter is THE new forum for discussing philanthropy. It far outstrips traditional media among young readers. All those young readers are the ones making small donations - for now. What will they give as they get older??

More significantly, Stannard-Stockton states: "...philanthropy is no longer a topic of discussion reserved for the ultrawealthy, nonprofit executives, or academic researchers. As with any topic that goes mainstream, many insiders will complain that the subject is too nuanced for the masses to understand.

But the people and organizations that can figure out how to speak authentically about philanthropy to a mainstream voice — without dumbing down the subject or talking over the heads of the newly formed crowds — will dominate the discussions about the nonprofit world in the coming months and years."

My $12.96 GoodSearch contribution this year isn't much. Some nonprofits turn up their noses at the pennies per search concept. Some don't. They are getting checks of over $1,000 this month. The pennies add up.

Heaven is in the details. Details are often very small. But they always make a difference.

Hope to Fill Your Glass

On Christmas night just a few weeks ago, Ray Suarez asked: "When will the muscles in the back of your neck relax?"

During the 25 December edition of The Newshour on PBS, Suarez was talking to three exceptional leaders in the nonprofit world. The panel was composed of the development manager of the Salvation Army, the editor of the Chronicle of Philanthropy, and the president of the Better Business Bureau's Wise Giving Alliance. It could not have been a better summary of the challenges facing nonprofits during the current economic crisis.

You're best served by reading the transcript of this excellent interview. What follows is my summary and a few comments.

The glass is half full: it's a bad time for all charities, but social services giving for people in need has increased a little - just not enough to meet the growing demands.

The glass is half empty: If you're not involved with social services, hang on. The arts, the environment, and other parts of the public sector are incredibly important, but they will be in line behind the basic needs of people.

Charities lag the economy. The economy lags the market. The market has yet to turn around although there are small hints of new life. This means there's a "long row to hoe" during this new economy.

That row may last longer than many charities can stand. There are only so many ways to become more efficient and creative. Assuming the only people left on your bus are the right people, it is going to be a short bus ride if you cannot afford gas and tires.

People and foundations are prioritizing their giving. Corporations are barely thinking of giving. Nonprofits must prioritize their spending. Tension is increasing between donors and service providers.

It's tough to ignore the passion of the servant's heart, but the reality is either:
a) don't cut back on services and close the doors this summer or
b) scale back and try to make it to the end of the year. Depending upon how long the row is, you may well get to do it all over again next year.

Faith is an important element here. Yes, God will provide and can stop a locomotive. But He gave you the brains to get off the tracks before the train comes. Now is a time, not just for prayer, but for some thought leadership.

Forward thinking nonprofits will be looking for more partners, collaborators, volunteers, and even mergers. Is it all about you and your nonprofit - or is it really about who or what you serve? As with every crisis, there are opportunities.

Can some administrative services be combined with other nonprofits in your sector or geography? Is there someone willing to create an administrative outsourcing business for nonprofits? At what cost? Who can help peer organizations get past egos and come together to serve the common good?

The response to Suarez's question was that it's time to shift nonprofit thinking to the "new normal" (my words). There is an immediate need for survival. You must manage through this week and this month.

But the row may take many months to hoe. What are your plans for the new economy that does emerge next year - or the year after next? Are you ready to consolidate? to share resources? to share responsibilities?

The new economy is the new normal. There is help for the asking. Is it time to add some partners to your paceline?

There are answers to all these questions. There is hope - it is not a new concept.