CEO 201 - Leveraging Our Resources

CEO 201: Management and LeadershipCEO 201: Management and LeadershipJuly 31, 2008

Leveraging ResourcesLeveraging Resources

Leveraging Our Resources

1. Work with government and advocate for policy change

2. Harness market forces and see business as a powerful partner

3. Convert individual supporters into evangelists for the cause

4. Build and nurture nonprofit networks, treating other groups as allies

5. Adapt to the changing environment 6. Share leadership, empowering others to be forces

for good

What makes nonprofits effective?

Government and advocacy

Business

Other nonprofits

Individuals Nonprofit CEO

Leadership

Ethics

Organizational management

Board leadership

AccountabilityNONPROFIT

Leveraging Our Resources

• Nonprofits have access to resources in

community

– Philanthropy

– Government

– Private Sector

– Community members

• Community Engagement is critical

What resources do we need to function effectively?

• Exercise

– What is your organization’s mission?

– Reflect on current resources utilized to

achieve your mission

– What resources can you leverage further?

Community Engagement

An on-going process of involving and engaging the

different individuals in your community with the

work of your nonprofit, including engaging them

in problem-solving and decision-making

Adapted from : Minnesota Department of Health, “Overview: What is Community Engagement”

communicate to deliberate withpublic hearing community conversationtalk to, tell talk with, shareseeking to establish/ protect turf seeking/finding common groundauthority responsibilityinfluencing the like-minded understanding those not like-mindedtop down bottom upbuilding a hierarchy for establishing a stakeholder decision-

making networkgoals/strategic plan values/visionproducts processpublic relations public or community engagement

Adapted from : Minnesota Department of Health, “Overview: What is Community Engagement”

COMMUNICATION (old way) ENGAGEMENT (new way)

How do we engage our community in our work?

• Who are our stakeholders?

• Who is “our community”?

• How are the different groups involved in

different areas of our work?

Social EntrepreneurshipSocial Entrepreneurship

Effective Methods for Social Missions

Combine a business mindset and discipline with the

passion for solving social problems.

Innovative as well as determined to not be stifled by

obstacles.

Look for the most effective ways of serving

the public and fulfilling their mission.

Social Entrepreneurship

Social entrepreneurs exploit the

opportunities that change (in

technology, consumer preferences,

social norms, etc.) creates.

“The entrepreneur always searches

for change, responds to it, and

exploits it as an opportunity.”

(Drucker)

Contemporary Meaning of Entrepreneurship:Contemporary Meaning of Entrepreneurship:

Dees, Gregory. The Meaning of "Social Entrepreneurship" Duke University Fuqua Business School. The Kauffman Foundation, 2001. 1-5. 6 May 2008 <http://www.12manage.com/description_corporate_responsibility.html>.

– They have a mindset that sees the possibilities rather

than the problems created by change

– Entrepreneurship do not need to be motivated by profits

– They do not allow their own initial resource endowments

to limit their options for projects

Characteristics of Entrepreneurs

– They are skilled at attracting resources efficiently and

they are able to leverage their limited resources to

draw in collaboration and partnership

– Through their understanding of constituents they give

projects and programs more value

– They work to assess organizations on there outcomes

of a program rather then their size and inputs

Characteristics of Entrepreneurs

Social Entrepreneurship

Social Entrepreneurs as Change Agents:Social Entrepreneurs as Change Agents:

•Adopting a mission to create and sustain social value (not just private value),

•Recognizing and relentlessly pursuing new opportunities to serve that mission,

•Engaging in a process of continuous innovation, adaptation, and learning,

•Acting boldly without being limited by resources currently in hand, and

•Exhibiting heightened accountability to the constituencies served and for the outcomes created.

Dees, Gregory. The Meaning of "Social Entrepreneurship" Duke University Fuqua Business School. The Kauffman Foundation, 2001. 1-5. 6 May 2008 <http://www.12manage.com/description_corporate_responsibility.html>.

Activity

• Participants are asked to work together in groups to

come up with a comprehensive list of what a social

entrepreneur is.

• Participants should then look to see if they have

someone like this in their organization.

• How can entrepreneurial ideals be incorporate into

their organization?

• What can their organization do to support social

entrepreneurship?

Engaging Individuals:Engaging Individuals:

Fund DevelopmentFund Development

Giving Pyramid

Major Giving

Annual Giving

Planned Giving

Investment

Involvement

Interest

Information

Identification

Government grants9%

Investment income4%

Other income4%

Private contributions13%

Fees for services and goods

70%

source: NCCS National Nonprofit Research Database, Special Research Version (2004)taken from "The Nonprofit Sector in Brief, 2007"

Review: Nonprofit Revenue Structure

Giving Trends

• Of the $295 billion giving in year

2006, 75.6% came from individual

gifts. 4.3% came from corporations.

• In the USA, $300 billion in donations

is approximately $1,000 per person.

Source: 2007 Giving USA

Fund Development planning

• Fund development plan is a tool to assist staff assigned to develop and cultivate an organization’s resources to enable it to achieve its mission

• A fund development plan identifies: – Goals– Strategies– Tasks– Individuals Responsible– Target amount raised– Timeline for achievement

Fundraising Plan

• Plans cover:

– Infrastructure

– Donor relations

– Communications

– Fundraising activities (annual, major

and planned giving) and constituencies

Fundraising Methods

• Grants• Special events• Direct mail• Web-based fundraising• Telephone fundraising• Corporate appeal, using personal solicitation• Individual appeal for major gifts using

personal solicitation

Activity

• Participants will be asked to assess their fund

development program.

• How did their organization score?

• What are the big questions/concerns the participants

have about the assessment and/or their scores?

Developing your case

• Mission

• Goals for the organization

• Measures to know if your organizational goals have been met

• Organization’s history

• Organizational structure

• Fundraising plan

• Financial statement

Timing for Fund Development Planning

• When looking at a capital campaign

• In alignment with the process of strategic

planning

• When there is new development staff

• Board involvement

Process for Planning

• Involvement of staff and board

• Commitment of staff and board

• Follow standard planning processes:

– SWOT (strengths and weaknesses internal

assessment of current programs, opportunities

and threats are external)

– Identify goals

– Identify strategies and work plan

Which fundraising activities are beneficial?

• Track costs and returns for each type of activity

• Compute the return to investment

ROI= Total returns x 100

Total costs

Key components of successful development programs

• Good information tracking (accurate names and donation amounts)

• Donor recognition• Communication with donors• Board involvement

CEO 201: Leadership and Management

Resources

Engaging Individuals: MarketingEngaging Individuals: Marketing

What is Marketing?

• Marketing is not public relations or publicity. Those

are communications techniques to establish and

circulate an image.

• Marketing is not sales. The sale is the exchange

between the organization and the constituent or the

organization and the donor.

• Marketing is not forcing a constituency to accept a

pre-designed program.

What is Marketing?

“A continuous process of understanding. It is

the simultaneous activity of a nonprofit

understanding its target audiences, while

helping these audiences understand the

nonprofit organization.”

Hoffman, Beverly R. "Marketing for Charitable Nonprofit Organizations." Arch: National Respite Network. Jan. 2002. North Carolina Department of Human Resources

Activity

• Participants will be asked to write down three characteristics that they find unique to their organizations.

• Participants will divide into groups and be able to share and get direct feedback.

• Important question to ask:

– How can I market this to constituents?

– What community resources can I utilize?

– How can I start working on this marketing approach today?

Analysis

Planning

Implementation

Evaluation

Marketing Process

Defining our constituency

What Makes a Good Marketing Strategy?

• Carefully defining constituents

• Measuring the needs of constituents

• Designing programs to suit those needs

• Measuring the constituent’s satisfaction with those programs

• Using those results to fine tune ones services regularly

• Communicating result clearly and simply

Hoffman, Beverly R. "Marketing for Charitable Nonprofit Organizations." Arch: National Respite Network. Jan. 2002. North Carolina Department of Human Resources

Defining our constituency

• External constituencies– Clients– Donors– Funders– Community members– Partners– Businesses

• Internal Constituencies– Volunteers– Staff

Developing a Plan for Marketing

• How do we want to engage our different

constituencies?

• What key messages to they want to hear?

• How are we going to reach out to them?

Listening

• It is important to develop a formal but simple way of knowing:– What our constituencies want to hear from us– What our constituencies think about us– What mechanisms of communication they prefer– How effective our efforts have been

• Market research– Informal- have staff ask clients, volunteers, etc. about

their experience with the organization– Formal- surveys and focus groups

Marketing

•Products or services may have a life cycle where they face development, growth, maturity and decline

•While commonly considered by for-profit companies, nonprofits rarely look at the life cycle of specific products or services

Marketing Analysis

Marketing Analysis

•What is the demand for our products or

services?

•How do we know what our constituencies think

about us?

•What types of messages do we send to our

different constituencies?

Revisiting Community Engagement

• Not a separate activity but an approach to accomplish all of our organization’s work (Gottlieb)

• How could community engagement further our organization’s goals?– What are the goals of our plan?– Who do we need to engage?– What strategies will we utilize?

Revisiting Community Engagement

Case study

Identify ways we can engage our communities in fundraising and marketing

Engaging BusinessesEngaging Businesses

• What are ways that your organization is currently engaging business

Corporate & Non Profit Collaboration

•Fernsler, Terrence. "Collaborating Made Easy." Nonprofit World 25 (2007): 32.

“In times of increased competition for funding and demand for services, collaboration arrangements are a good way for one group to use the resources or expertise of another to improve program effectiveness, revenue, or visibility. The most successful collaborations involve organizations with compatible or complementary missions, mature leadership, and mutually agreed upon timelines and outcomes.”

Corporate Responsibility

Prahalad, C.K. Harvard Business Review on Corporate Responsibility. Boston: Harvard Business School P, 2003.


• Is the timing right?

• What are the needs of the community?

• How will it be interpreted by the public?

• What are the restrictions (if any) to this collaboration?

• Is this collaboration one that can be sustained?

• Do the goals/missions of all organizations involved match-up?

• How will this collaboration be evaluated?

Questions to ask PRIOR to collaboration:Questions to ask PRIOR to collaboration:

Spectrum of Partnership

Wymer, Walter W., and Sridhar Samu. Nonprofit and Business Sector Collaboration. NE: The Haworth P, Inc., 2003. p.17.

• Compatibility of your organization with your intended

partner.

• Make your expectations clear.

• Make sure to have things in writing and on record

• Understand all parties motivations for collaborating.

• Conduct due diligence before formalizing a

partnership.

• Interpret the message your constituents will

receive when they learn of your partnerships.

Considerations for Partnership

Business Benefits from Partnership

•Partnerships can help increase revenue.

•Provide opportunities for their employees to practice or develop skills through volunteering.

•Strengthen the organizational culture by placing a high value on the welfare of communities around the globe.

Migliore, Sally. "For-Profits and Nonprofits Achieve Missions Together." Nonprofit World 25 (2007): 21.

•Gain visibility and recognition for demonstrating

corporate citizenship.

•Increase community support of product by

demonstrating corporate responsibility.

•Provide opportunities for their employees to

practice or develop skills through volunteering.

Business Benefits from Partnership


• Increase individual contributions and grant funds.

• Boost attendance in programs and events.

• Recruit new volunteers.

• Receive pro-bono technical expertise.

• Gain access to potential funders and donors.

• Raise visibility and public awareness of their mission.

• Distribute more resources or get more services out more effectively to the community.


Nonprofit Benefits from Partnership


“To create a sustainable and successful partnership, both the company and the nonprofit must ensure that there’s involvement and investment at all levels.”

Maintaining a Successful Collaboration:


Fernsler, Terrence. "Collaborating Made Easy." Nonprofit World 25 (2007): 32.

• Create visible signs of success• Set clear, simple goals• Invite outside groups to help. (local organizations)• Have a continuous evaluation plan.• Use symbols• Involve stakeholders • Think politically without being political.• Keep up to date

Revisiting community engagement

• Review the community engagement worksheet developed earlier.

• Is business involved in achievement of these goals? If not, what are ways that we can better involve business?

Engaging NonprofitsEngaging Nonprofits

Benefits of Nonprofit Collaboration

• Look at your resource map and identify areas for possible collaboration with other nonprofits

Collaboration Defined

• Working together to achieve a common goal

Nonprofit Collaboration & Mergers: Finding the Right Fit. University of Wisconsin- Cooperative Extension. 6 May 2008

The Basis for Nonprofit Collaboration

• Reduce duplication

• Decrease competition

• Enhance problem solving

• Enhance ability of communities to provide

needed services

Collaborations in Kent County

• Over 60 different coalitions are in place to address quality of life issues in the area

Kent County Collaborations

What was the primary motivating factor for

the coalition's formation?

To coordinate information and

data2%

To pool resources

7%

Other13%

To mobilize or coordinate around an issue(s)

78%

Community Research Institute, 2007

Kent County Collaborations

Which of the following areas is the

coalition's primary focus?

Education and child

development11%

Community decision-making

and participation

5%

Other38%

Health and well-being27%

Equal opportunity

2%

Safe home and neighborhoods

4%

Economic well-being13%

Types of Outcomes

• Sixty-six percent of responding coalitions indicated

that they use measurable outcomes/indicators.

• Of respondents who provided community-level (as

opposed to program-level) indicators, 64% used

indicators from the shared community indicators.

• Over 100 different indicators were used by

respondents; 23 of these overlap with the 50 shared

community indicators.

Essential Elements of Nonprofit Collaboration

• Committed Leadership

• Unambiguous goals

• Clearly defined roles (MOU)

• Commitment at every level of the organization

• Dedicated staff time

• Sustainability in the midst of change (especially with changing leadership

• Evaluating the process and accomplishments

Nonprofit Collaboration & Mergers: Finding the Right Fit. University of Wisconsin- Cooperative Extension. 6 May 2008

Taking Stock

• How can collaboration increase my ability to

achieve my mission?

• Discuss what may be opportunities or barriers

to enhance collaboration with other nonprofits

Assessing our collaborations

• Collaboration inventory tool

Engaging GovernmentEngaging Government

Advocacy

“Nonprofits have the right and responsibility to engage in

advocacy and lobbying activities”

Pierce, Kathleen. Nonprofit Policy Advocacy: Part 2, How to Advocate Effectively. Seattle University. Seattle, 2000.

Advocacy

• What public policy issues impact your work?

• Think about your clients, are there public

policy or system issues that if resolved could

impact the results of your work?

• Issue• Mission• Constituents• Stakeholders• Success• Organizational Impact• Priority

Step 1: Choose the Issue (s)


• Set Clear Goals

– Long Term & Short Term

• Analyze the Issue

– Context, Process, Problem, Strategies & Proposal

• Analyze the Power

– Policymakers, Constituents, Stakeholders and Interests & Knowledge holders

• Identify Strategies and Tactics

– Coalitions and Collaborations, Audiences, Messages, Messengers, Style

Step 2: Develop a Preliminary Advocacy Plan


• Information• Management• Timeline• Resources• Lobbying Limits• Political Feasibility• Evaluation

Looking Inward


Advocacy

Avner, Marcia. The Nonprofit Board Member's Guide to Lobbying and Advocacy. Saint Paul, Minnesota: Amherst H. Wilder Foundation, 2004.

•Identify who in your organization makes

decisions around issues, plans and

strategies

•Try out the advocacy worksheet!

Advocacy


Make a Difference in 3 Hours a Week:Advocacy doesn’t have to be a huge initiative that requires a full time task force. It can be done for a few hours a week but have a substantial

affect on the organization. An organization can:

Step 1: Prepare Your Organization for Public Policy Impact

Step 2: Become a Voice for Your Cause and a Vehicle for Democracy

Step 3: Increase and Sustain Your Advocacy

Step 1: Prepare Your Organization for Public Impact

•Start getting educated about the laws that affect your organization

•Have a telephone, fax, computer and file that

allow you to store vital information.

•Study the legislative process, understand how bills become laws and the budget process at the local, state and federal level.

• Create a Who’s Who list (elected officials, judges, agencies) that your organization should be aware of.

• Develop a board of directors that is dedicated to promoting and maintaining positive relationships with governmental leaders.

• Take stock of human capital within your organization - key people that allow the organization to function and those willing to contact government officials.

Step 1: Prepare Your Organization for Public Impact

Step 2. Become a Voice for Your Cause

•Build a public policy presence through coalitions.

•Become a source for reliable information.

•Build relationships with policymakers.

•Include community members in your endeavors. Make sure to let these people know their opinions matter.



•Meet face to face with state legislators and members of congress. “There is no form of communication as powerful as meeting in person.”

•Know the staff of the legislator, sometimes they are the ones with the best information.

•Use your telephone to call elected officials and ask about pending legislation and urge people on your staff to do the same


• Write letters Well written letters are one of the most influential ways of communicating with legislators. (Email is not necessarily effective.)

• Testify When legislative committee are holding hearings make yourself available to testify so that the voice of your organization can be heard.

• Provide tours Provide a one hour tour of your programs for elected officials and make sure to have board member present to show support.


Advocacy

Avner, Marcia. The Nonprofit Board Member's Guide to Lobbying and Advocacy. Saint Paul, Minnesota: Amherst H. Wilder Foundation, 2004.

CEO 201: Leadership and Management

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Resources

CEO 201 - Leveraging Our Resources

Economy & Finance

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