Journal of the DMANF | Volume 8, Number 1 | March 2005€¦ · Kelly Browning American Institute...

“The reason that men oppose progress is not thatthey hate progrees, but that they love inertia.”

Ellert Hubbard

“It’s hard for me to get used to these changingtimes. I can remember when the air was clean andsex was dirty.”

George Burns

A popular definition of a “crazy” person is someone who keepsdoing things the same way and expecting the results to bedifferent. A more clinical definition of “crazy” is being out oftouch with reality. By either definition, most of us trying topromote change within our organizations are certifiably nuts.

Isn’t Change What America Is All About?

For centuries, our country has prided itself as the bastion ofinvention. We have led the world in changing social norms,inventing new technologies, and introducing global fads. Americahas an incredible number of small nonprofits and for-profitbusinesses popping up with creative new concepts, and each yearthousands of innovative services and products pour forth fromthose sources to an eager group of consumers.

For those of us working in larger, well-establishedorganizations, however, the world looks different. There is areason why innovation comes overwhelmingly from small, newlyestablished groups rather than from those that are larger and older.People are creatures of habit. We find it too easy to fall intocomfortable patterns of thought and behavior, and we hate beingchallenged to do things differently. Even while we wish we couldbreak free of our ruts and overcome our familiar obstacles, ourhuman nature makes us inherently distrust and resist anythingthat intrudes into our world from outside our comfort zone.

In almost any American workplace, though, it is unreasonableto think we can continue being successful using the methods weused just five years ago. If you’re in touch with reality in today’sworld, here is what it looks like:

• We are entering a global workplace and economy. In 1900,it shocked people when they lost jobs to the latest round ofimmigrants coming into our country. In 2000, it shockedus that people were losing jobs to folks halfway around theworld — in China, India, and Mexico. Progressivecompanies today are hiring employees and conductingbusiness throughout the world. Nonprofit organizationsare raising money worldwide and promoting programswith worldwide impacts.

• The pace of change in technology is dizzying and notexpected to slow down anytime soon. As children, baby

ALSO IN THIS ISSUE

Letter from the Vice Chair . . . . . . . . . . . . . . . . 2

Nomination Form for The DMANFAdvisory Council . . . . . . . . . . . . . . . . . . . . . 4-5

No Marketing Budget? No Problem! . . . . . . . 10

The Power of Persuasion . . . . . . . . . . . . . . . . 14

Remarks from John A. Greco and George H. W. Bush to the DMANF Washington Conference Attendees . . . . . . . . . 19

Member Spotlight . . . . . . . . . . . . . . . . . . . . . 22

The Tsunami Relief Effort . . . . . . . . . . . . . . . 26

Volume 8, Number 1 March 2005

JOURNALJOURNALO F T H E D M A N O N P R O F I T F E D E R A T I O N

Continued on Page 6

The Company Change ArtistJoel Zimmerman, PhD, Director of Consulting Services, Creative Direct Response

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ChairPegg NadlerPegg Nadler Consulting

Vice ChairJack DoyleAmergent

MembersKelly BrowningAmerican Institute forCancer Research

Tim BurgessDomain Group

Phil ClaiborneElks Magazine

Christopher CleghornEaster Seals

Bobby DeanCal Farley’s Boys Ranchand Affiliates

Craig FloydNational LawEnforcement OfficersMemorial Fund

Lindy LitridesLitrides & Associates

Susan LothDisabled AmericanVeterans

Larry MayMay DevelopmentServices

Dennis MeyerMeyer Partners

Sherry MintonAmerican HeartAssociation

Angie MooreAmerican Cancer Society

Jo SullivanASPCA

Sue SwordChristian AppalachianProject, Inc.

Nick StavarzSynergy Direct MarketingSolutions

Joan WheatleySpecial OlympicsNorth America

Kevin WhortonCatholic Relief Services

StaffSenny Boone, Esq.Executive Director

Helen LeeConference OperationsManager

Jill MurphyMember ServicesManager

Dear DMANF Friends,

It’s been my pleasure to serve as vice chair of the AdvisoryCouncil for the past two years. We have a lot of wonderfulresources within our membership. I’ve come to understand this alot better working with the different people serving on ourAdvisory Council committees and our conference planning teams.

I’d like every one of you to consider how your talents andexperience can be put to good use as a resource in the future.

There is an important moment in our Federation’s timelinecoming next year. When the Nonprofit Federation was created,one of the bylaws we adopted set term limits on the number ofyears an individual could serve on the Advisory Council. Thebylaws indicate no one can serve for more than three two-yearterms. This means that a fair number of the Advisory Councilmembers will be stepping down next year.

New leaders will be needed. And we’ve had very good peopleinvolved in the formation of a plan to nominate, qualify, andrecommend candidates for leadership roles. But the people wewill elect to fill the leadership roles will be individuals who havestepped forward as volunteers and demonstrated a willingness towork, and a passion for excellence, and have proven that theycan be counted on to deliver what they promise.

The DMANF is also looking for more people to help fillvolunteer positions on a number of important committees. Yes,we have a great need for people to step up and help on theConference Planning committees, but there are other groupsthat have a great deal of influence and are very important to thesupport of our overall work.

Letter From the Vice ChairJack Doyle, President, Amergent

The 2004 – 2005 LeadershipFollowing are the members of The DMANonprofit Federation’s Advisory Council

with leadership responsibilities:

Calling all Leaders in theNonprofit Sector!

NEW EVENTwill be taking place on the West Coast.

See page 29 for details

We have standing committees todecide the strategic direction of ourleadership conferences (Education),our growth in membership andmember satisfaction (Membership),our response to legislation and postalissues (Government Affairs), how weconduct ourselves and our businesspractices (Ethics), who we respect andhonor for their pursuit of fundraisingexcellence (Awards), and yes, who wenominate for the leadership positions(Nominating Committee). At the endof this letter, you will find the contactinformation for the chairs of each ofthese committees. Please think aboutwhich committee could benefit fromyour involvement.

The future leadership of our groupwill be found among our enthusiasticand loyal ranks of volunteers. Pleaseget involved at some level, and see ifyou have what it takes to help makethis organization better.

Being part of the solution is alwayssatisfying: ask any of our currentvolunteers. They are given a lot of theresponsibility and a lot of the credit forour growth and success. And they’relooking for more good people. Getinvolved today. It’s rewarding, and agreat way to meet some of the bestpeople in our nonprofit marketplace. �

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WILL NEW REGULATIONS & RATES LEAVE

YOUR ORGANIZATION IN CRITICAL CONDITION?

See page 27 for the answer to how YOU can help your organization.

March, 2005

Dear DMANF Members:

I am pleased to announce that the Direct Marketing Nonprofit FederationNominating Committee is seeking both nonprofit representatives and companies supporting the nonprofit community to serve on the DMANFAdvisory Council for the next term. (July 1, 2005 – June 30, 2007) We areseeking individuals with a strong background in leadership who will help guidethe future direction of the Nonprofit Federation, shape public policy impactingthe nonprofit community, and promote best practices in direct responsefundraising for the sector.

Criteria for Advisory Council Membership:

• Organization/Company Membership in the DMANF of at least three years

• Nonprofit fundraising experience of at least five years

• Leadership in the nonprofit community

• Prior relevant Board/committee experience. Prior DMANF Committee mem-bership and prior experience with a non-DMA Board of Directors is a benefit.

• Ability to dedicate time to the responsibilities & activities of the DMANF-Council meetings, committee activities, conference planning, grassrootsparticipation.

• An industry leader with expertise in one or more areas of concern to the DMANF (postal issues, government affairs, fundraising, database/pri-vacy/data/list, membership acquisition & retention, ethics)

• A perceived "go to" resource for information and trends in the nonprofit community

• Ability to maintain confidentiality

If you wish to serve, please submit the form on pages 4-5 no later than May 6If you have a candidate that you believe should be considered, please submitthe form on their behalf.

In the meantime, I would be happy to answer your questions. Please contact me at 806.373.6600 or DMANF Executive Director Senny Booneat 202.861.2498.

With best regards,

Bobby DeanDMANF Nominating Committee ChairCal Farley's

ADVISORY COUNCIL MEMBER NOMINATION FORMPlease return this completed form by Friday May 6th, 2005 to Jill Murphy, DMANF Member Services Manager

FAX 202.628.4383, or by mail to the DMANF, 1111 19th Street, NW, Suite 1180, Washington D.C. 20036.

Please help the Nominating Committee by providing information about yourself, if you are self-nominating, or about yournominee below (Use additional sheets if necessary):

NOMINEE INFORMATION

Name: __________________________________________Title: __________________________________________

Nonprofit Organization/Company: ____________________________________________________________________

Address: __________________________________________________________________________________________

Email: __________________________Telephone ________________________Fax ____________________________

SPONSOR INFORMATION (not applicable if you are self-nominating)

Your Name: ______________________________________Title: __________________________________________

Nonprofit Organization/Company______________________________________________________________________

Address: __________________________________________________________________________________________


1. What is your relationship to the nominee?(Employer, employee, colleague, spouse client)

________________________________________________________________________________________________

2. How long have you known the nominee?

________________________________________________________________________________________________

3. Detail the your/ or the nominee's vision to make the industry better (25-50 words sufficient):

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

4. Description of the nominee organization's/company's direct marketing activities:

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

5. Description of nominee's responsibilities in nonprofit/company:

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

6. Detail 3 reasons you believe the individual is qualified to serve on the DMANF Advisory Council:

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

7. Nominee's career background (attach a resume if available):

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

8. Please highlight any of the candidate's published articles, speaking engagements at the national level or attach a copy ofrelevant work:

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

9. Please provide 3 references:

Your Name: ______________________________________Title: __________________________________________


Address: __________________________________________________________________________________________


Your Name: ______________________________________Title: __________________________________________


Address: __________________________________________________________________________________________


Your Name: ______________________________________Title: __________________________________________


Address: __________________________________________________________________________________________


DON’ FORGET: Please mail or fax this form to Jill Murphy no later than May 6, 2005.

boomers experienced the invention ofhigh fidelity music. As young adults,they proudly put together their stereocomponents. In their prime earningyears, they labored to figure out howto integrate television, and later,digital movies into their homesystems. Approaching retirement,they have struggled to understandhow to further hook in theircomputers, digital cameras, Internetservices, and home security systems.Today, they are simply baffled bytheir grandchildren whononchalantly carry all thisfunctionality around in their pocketPDAs (personal digital assistants).

For those of us in well-establishedorganizations, these are today’s facts:

• Customer requirements change fasterthan we can respond with newproducts and services. In nonprofits,we constantly search for new fundingsources and new media for ourappeals; we cope with changingdemographics among our serviceconstituents, evolving roles for ourboard of directors, and a never-endingarray of new laws and regulations.

• The workforce doesn’t stay thesame. Employee and organizationalloyalty are gone. Job turnover iscommonplace.

• Competition is overwhelming, evenin the world of nonprofits. Nomatter what we are doing, another

organization is busy figuring out howto do it faster, better, and for lessmoney. We can’t stop them; we canonly hope to get better ourselves.

If Change Is So Ubiquitous, WhyDon’t We Do It?

We are undeniably in a world thatdemands change. Undeniable, too, is thefact that if we continue to do things thesame old way, we will continue to have thesame old results. If we want things tochange — to improve — we must facereality, and start doing things differently.So why don’t we?

Introducing change turns out to be atwo-pronged problem. Obviously, youmust introduce new ideas and approaches;but you must also wean people away from

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The Company ChangeArtistContinued from Page 1

Continued on Page 8

A Mini Case in Organizational ChangeI recently chaired the advisory board for a department within a county government. Our board reported to the

department’s director who, in turn, reported to the chairman of the county Board of Commissioners.

After 10 years of this advisory board functioning successfully, major changes were made in the county’s governancestructure. For our advisory board and the department director who oversaw us, it became clear that our board needed tochange: 1) our position within the county government hierarchy; 2) the types of issues we addressed; and 3) the channelsthrough which we reported our recommendations. If we did not - if we kept working as we had for the last decade - ourinfluence would be totally lost.

The major obstacle to this change was the chairman of the county board. He was comfortable with the niche ouradvisory committee had filled over the years. Without his agreement and support, though, we could not possibly makeour desired changes, in which case organizational irrelevance was our obvious and only destiny.

Using many of the principles in this article, we fabricated a successful organizational change. Here’s how.

1. We demonstrated how our old organizational definition potentially would create conflicts with the county’s newgovernance structure. This gave the chairman a reason to be unhappy with the existing situation.

2. We demonstrated the potential benefits of our proposed changes, which would bring greater synthesis of opinionamong the county’s departments, and a better medium for citizen involvement. These factors demonstrated goodreasons for making the change.

Continued on Page 8

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their old habits. You cannot do the formerwithout simultaneously doing the latter.People resist change largely and simplybecause they cling to their old, familiarways. People won’t adopt new ideas justbecause an innovation looks inviting.They need reasons for, and assistance in,giving up that with which they are familiarand comfortable. Innovation is as muchpsychology as technology.

When people are faced with change,any barrier becomes a convenient excuseto keep things the way they are. Toovercome this, an organization must gothe extra mile to communicate new

standards, provide training in newmethods, and supply new equipment andtools. Although every group has a handfulof so-called “early innovators” (people wholike to be first to try out new ideas), themajority of employees will not adopt newideas until the organization activelypromotes and sponsors them.

We generally assume our managers willbe part of the solution. More often,managers are just another part of theproblem. Alas, managers are people too.Like everyone else, they fall intocomfortable ruts. Frankly, managers arepaid to guard the organizational statusquo; that is what the traditional manager’sjob is - making sure jobs are done “the waythey’re supposed to be done.” In mostplaces, “managing” the system means

ensuring that people follow plans, enforceprocedures, and meet standards. Onlythose managers who are truly leaders alsounderstand their responsibility to changeplans dynamically, improve procedures,and constantly strive for higher standards.

Even in organizations with the best ofintentions, another barrier to innovation isthe “not invented here” syndrome.Employees seldom trust or understandoutside techniques. For this reason, thesuccessful dissemination of new ideasoften depends upon having an advocacygroup within the organization. Thepeople in the advocacy group act as earlyinnovators, often re-inventing aninnovation to give it a spin that uniquelysuits their organization. These advocatesthen spread the home-grown version of

The Company ChangeArtistContinued from Page 6

3. We took the original advisory board charter, which the chairman helped draft many years ago, and demonstratedhow our “new” solution helped accomplish the intent behind the original charter. Thus, the “new” idea could beviewed as an “old” idea simply being brought up to date.

4. Rather than presenting our solution in final form, we presented it as a draft recommendation, and asked thechairman to help us fashion it in a manner that would be most compatible with the county’s new governancestructure. By drawing in the chairman’s participation, we reduced his defensiveness and resistance. As a bonus, hehad several excellent ideas about how to make our suggestion work even better.

5. We recognized a potential problem in selling our new advisory board process to the managers in the other countydepartments. By getting the chairman on board first, it was easier to convince the other managers.

6. The chairman agreed to quickly institute the change. It was not the type of idea to delay by subjecting it tocommittee votes or feasibility studies. We resisted the temptation to think through all the permutations ofpossibilities, and simply took the approach that seemed most likely to succeed. The chairman directed us to startusing the advisory board with the new structure and, as we encountered problems, confront and overcome them onthe fly. This approach avoided the chance for other people in the government structure to discover (or create)reasons why the new solution would not work.

7. Although the change was successful, it was not achieved without differences of opinion, internal politics, and secondguessing. Our original department chairman took political heat from some of his department chair peers. This waspredictable and inevitable, but it’s all in a day’s change. �

A Mini Case in Organizational ChangeContinued from Page 6

the innovation to other progressiveemployees within the organization.

How Can We Make It Happen?

Based on my many years of experienceand research on change management, hereare some tips for introducing innovativeideas into your workplace.

1. Expect resistance to new ideas,procedures, and technologies. Peopletend to resist change, not embrace it.Resistance should neither surprise nordiscourage you.

2. Give people the greatest possibleopportunity to participate in and beinformed about the decision-makingprocesses leading up to changes. Peopleaccept change more readily when theyfeel ownership in it. People will bemore willing to try things that are newwhen they understand theshortcomings of what they used to do.

3. Demonstrate how changes will bebeneficial to the group, rather thansimply mandating change by force ofauthority. No one wants to change justbecause they are told they should orthey must.

4. Form an innovation-diffusion group offorward-thinking, well-respectedpeople. Let this group act as pioneersand advocates to lead the rest of yourdepartment into adopting new ideas.

5. Provide support for training people touse new tools and technologies. Don’texpect people to just learn by doing.Follow up formal training immediatelywith opportunities to exercise new skillson the job. Just-in-time trainingcommunicates to employees thatmanagement has planned carefully forchange, that management is willing to

invest in it, and that someone,therefore, must truly believe thisinnovation will have beneficial results.

6. Explore how to introduce change.Decide whether to implement change apiece at a time, or as a “big bang.”Sometimes, innovation comes easier asa succession of small changes ratherthan as one dramatic event. This allowspeople to adjust, adapt, and learnwithout wildly disrupting their normalhabits. Other times, however,incremental change invites people tolinger in their old ruts and resist eachelement of change as beinginconsequential. In that event, onedramatic change revolution may have amore positive result in the long run,even while being more traumatic for ashort period of time.

7. If a group wants to promote change,the costs of introducing innovationsshould be borne as high up in theorganizational hierarchy as possible.The more these costs are pushed downto small departments and individualpeople, the less likely it is that peoplewill adopt an innovation. Early in thechange process, increased cost is a greatexcuse to avoid changing. Taking onthe costs at the highest budgeting levelssends a clear signal that senior managerssupport the innovation.

8. Finally, if you are introducing changein an organization, don’t expect to winany popularity contests. Even if whatyou are doing proves successful in thelong run, change is a painful processthat few people enjoy. After all, it’strue that after your root canal, yourmouth is healthier than when youstarted, yet no one looks forward toseeing their dentist. �

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ARE YOU A MEMBEROF THE DMANONPROFIT

FEDERATION? Membership in The DMA

Nonprofit Federation brings with it these and

other benefits:

• Discounts up to 35% off non-mem-ber fees for The DMA’s NonprofitFederation conferences

• Discounts up to 33% off onDMA publications

• Members-only e-newsletter

• Members-only section at TheDMA and The DMA Nonprofit Federation Web sites

• Nonprofit advocacy programs with state and federal agencies

• Free help with nonprofit postal andregulatory issues

• Access to The DMA onlinedatabase

• Access to The DMA research studiesand nonprofit stats

• Quarterly Journal — and much, much more

Contact The DMA NonprofitFederation at 202.628.4380

E-Mail: [email protected]

Web site:www.nonprofitfederation.org

Your challenge: Double yourfundraising revenue, with noadditional marketing budget and noadditional resources. Sound familiar?Sound impossible?

Well, it can be made easier than youthink, by leveraging the latest printtechnology and some new, innovativeWeb-based tools.

Making Technology WorkFor You

Digital print technology has beenaround for decades, and the quality hasimproved over the years to the pointthat only an expert can distinguishbetween the traditional offset and newdigital outputs. It has allowed for theproduction of high-quality, full-colorproducts at a cost that would beprohibitive using traditional printmethods. Customized jobs can bedigitally printed at a low cost regardlessof whether the job is for 10,000 pieces— or just one.

But the affordability of digital printonly solves part of the marketing costproblem. There’s still the up-frontcreative expense of designing andimplementing a marketing piece, andthe cost and resources needed to pull anew fundraising campaign together.

“One key missing piece that haskept digital printing from huge marketacceptance is the lack of an easy way

for ‘non-technical’ people to interactwith the applications,” says StevenDill, president of SRD Interactive, anda 15-year veteran of the digital printindustry. “The new trend is thatforward-thinking companies aremaking investments to simplify thecustomer interface. Instead of sellingWeb-to-print technology, these firmsare using the technology to offer newproducts and services. The winner isthe customer.”

Over the past several years,applications that leverage the power ofdigital print on-demand technologyhave sprung up all over the Web.These Web-to-print applicationsprovide online tools that take theexpense out of producing customizedmarketing pieces. These tools can beused to dramatically lower the cost ofdeveloping and implementingfundraising programs.

Taking Advantage of ConsumerTrends to Raise Funds

You may be familiar with Web siteslike shutterfly.com and snapfish.com,which enable users to createpersonalized greeting cards from familyphotos. These applications make useof standardized digital templates thatusers customize to create their ownpersonalized products. There’s a hugeconsumer demand for thesecustomized items. By allowing

everyone to utilize and personalize thesame basic template, the cost ofcreative design is removed. Usersreceive a highly professional printedproduct, with no overheaddevelopment costs.

The same idea can be applied toproducts used for fundraising. Let’stake the example of calendars. Manynonprofits give away calendars as giftsto their donors, not knowing if thecalendar is ever appreciated or used, orsimply discarded.

But, what if your donors couldcreate their own personalized calendar:choose which of your organization’sphotos they would most like toinclude, and specify personal datessuch as birthdays and anniversaries tobe printed on the calendar? Thecalendar would almost certainlybecome more valuable to them. Theywould most likely be willing to donatemore, use it more often, refer theirfriends to it, and display yourmessaging on their wall all year long.

Custom product-buildingfunctionality is available to nonprofitorganizations for use in theircampaigns. Charlie Washburn,executive director of VSA Arts, recentlydecided to launch an online customcalendar campaign. “This calendar is aperfect way to raise funds and gainexposure for the handicapped artists we

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No Marketing Budget? No Problem!Benjamin Arnold, Director of Business Development, OpenPrint.org

support. Donors get the pictures theylike, and the system is free for us touse,” he reports.

VSA Arts now has a Web site —personalized with their own logo andmessaging —that enables them to sellfundraising products, such as customcalendars, with no development or up-front costs. All the order processing,production, and shipping is handled bythe Web application. The nonprofitgets a virtual extension of their ownWeb site, and is able to leverage a ready-made, fully turnkey, calendar-buildingfundraising tool at basically no cost.

Getting More Mileage UsingCorporate Sponsors

So, you’ve decided to take the firststep and implement a custom calendarWeb site using one of these ready-made

Web-based applications. How do youdrive potential donors to your site?

A key strategy to implementing asuccessful fundraising campaign is totake advantage of corporate sponsors.You may find you have potentialcorporate sponsors sitting right on yourboard of directors. The trend has beenfor corporations to become more andmore community-friendly andsupportive of nonprofits, and employeesrespect and appreciate working for acompany that stands behind a goodcause. Sure, you can e-mail yourcurrent donor lists to introduce newfundraising products, but what about amulti-million-dollar corporation’s e-maillist, or even their own employee list?

A simple html link to your newcalendar-building Web site, for

instance, may be all that’s needed forinclusion in a company’s electronicnewsletter or e-mail update. Amember of your board might haveinfluence in such a corporation, andwould be happy to forward an e-mailto their employees with yourfundraising offer, such as, “Support a wonderful cause this month bybuying a custom calendar. Click here to proceed.”

Better yet, the company might wantto take the opportunity to get someextra good-will publicity by promotingtheir support for your organization totheir customer base in an ongoingmonthly e-mail campaign. Whatbetter way to reach thousands of warmprospects? You not only raise morefunds through selling calendars or

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Continued on Page 12

Would yourorganization liketo be featured inMember Spotlight?

Contact UsWe look forward to hearingfrom you about MemberSpotlight or about anythingthat will help us to betterserve our members andfriends in the nonprofit community.

1111 19th Street NW, Ste. 1180 Washington, DC 20036

Phone: 202.628.4380 [email protected]

other products; you’re also able to growyour contact and e-mail lists throughthese supportive friends who may notbuy today, but may choose to donatetomorrow.

Jump-Starting Your E-Marketing Efforts

An added advantage of a calendar-building tool and corporatesponsorship strategy is that you nowhave an excellent way to grow your e-mail address lists. E-mail is probablythe least expensive marketing vehiclearound, and yet so many nonprofitsdon’t take advantage of it in theirmarketing communication strategies.

Marketing professionals like MarkGoldstein, President of the JLMMarketing Group, has found greatinterest in tools like the online customcalendar application. “Anytime I canpresent a way for my clients to growtheir online marketing efforts, there isgoing to be a lot of interest,” he notes.“That is the area where nonprofitstend to be less developed - and they allwant to stay ahead of the curve.”

Every user that builds and purchases acustom product on your Web site will beproviding their e-mail address andperhaps other contact information fororder confirmation and shipment. Infact, even users who choose not topurchase a product may still be driven tothe Web site through your corporatesponsorships, and might choose toregister to receive more information onyour organization. These users may well

be potential future donors, and you wantto be sure to communicate regularly withthem as well as with your current donorbase. Take the opportunity to send themnews updates and information onupcoming programs, as well as topromote new fundraising products thatbecome available on your product-building Web site.

Driving Cost Out of Direct Mail

You can also take advantage of digitaltemplates to lower your overalloperational costs by using them tocreate direct mail pieces. Web-to-printapplications are available that cater tothe specific marketing needs ofnonprofits. By leveraging a group ofstandard design templates, anorganization on a limited budget cannow afford to produce a highlyprofessional, full-color direct mail piece.

The steps are as easy as 1-2-3:

1. You choose from a library ofonline templates for productssuch as donor letters, responsecards, mailing labels, etc., andcustomize them with yourorganization’s logo, messaging,and special offers.

2. You upload your contact mailinglist to a fully secure area of theWeb site.

3. You use Web-based proofing toapprove the final product, andsend it to production.

The result is a customized marketingpiece that may previously have beenbeyond your means to produce. Thisis all accomplished via a low-cost, self-serve, Web-based interface, available24-hours a day.

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No Marketing Budget? No Problem!Continued from Page 11

Xenia “Senny” Boone, Esq.Executive [email protected]

Helen LeeConference [email protected]

Jill MurphyMember Services [email protected]

Tips For What to Look For inOnline Options

If you believe a Web-to-printapplication tool might be just whatyou need to increase your fundraisingcapabilities and/or lower yourprogramming costs, here are some tipsto keep in mind when researchingoptions:

1. Look for applications that cater tononprofits. Be sure there aretemplates available that suit yourneeds in the areas of fundraisingand direct mail.

2. Look for no-cost set-ups.

3. Look for applications that are“turnkey,” with ready-madecampaigns that practically runthemselves.

4. Test the online interface to besure it is intuitive and easy for youand your donors to use.

5. Check that the applicationprovides a way to grow your e-mail address list.

6. Look for reputable companieswho have years of experienceservicing the printing needs ofnonprofit organizations.

7. Ask about available marketingassistance to help with promotingyour new fundraising campaigns.Some level of assistance may beincluded with your sign-up.

Web-to-print applications areavailable today to help you reach yournext level of fundraising capability. Byoffering ready-made campaigns, and

lower operating costs, theseapplications provide huge potentialrewards for little or no risk.Discovering what digital printtechnology and these innovative Web-to-print applications have to offer maybe exactly what your marketing budgethas been craving. �

Benjamin Arnold is director of businessdevelopment for OpenPrint.org, a divisionof Mail Computer Service.OpenPrint.org specializes in helping non-profits reach their fundraising and mar-keting goals by providing flexible, low-costsystems based on re-usable digital tem-plates. You can contact Ben at508.954.2407 or [email protected].

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Participate in ourMEMBER GET-A-MEMBER PROGRAM!It’s a win-win opportunity for any employee of a DMANF member organization who refers another organization for membership. When that organization joins,* the referringparty receives:

A $150 discount to The DMANF Conference of your choice!

PLUS, Mal Warwick’s new book FREE!Contact Member Services Manager, Jill Murphy at 202.861.2497 or [email protected] TODAY for more information.

Check the Member List on our Members Only section of the Web sitewww.nonprofitfederation.org

*Dues must be received from the new member organization to obtain discount.

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This is part one of a two-part series. PartTwo will appear in the June 2005 issue.

A few years ago, I read a newspaperarticle describing $5,000 inhumanitarian aid that had been sentbetween Mexico and Ethiopia. At thetime, Ethiopia could fairly lay claim tothe greatest suffering in the world.Because of a long drought and a seriesof armed conflicts, Ethiopians weredying daily by the hundreds of sicknessand hunger. Relief agencies werecalling out to the rest of the world forfood, medicine, and funds. It was notsurprising that such a gift would besent. It shocked me, though, when Iread further, and learned that themoney had been sent from Ethiopia toMexico. Officials of the Ethiopian RedCross sent the funds that year to helpvictims of the Mexico City earthquake.Now, I was bewildered. Why wouldsuch a needy country make such a gift?

As it turns out, there was a verygood reason. Despite the enormousneeds prevailing in Ethiopia, theAfrican nation sent the money toMexico because, in 1935, Mexico hadsent aid to Ethiopia when it wasinvaded by Italy. The need toreciprocate had transcended greatcultural differences, long distances,acute famine, many years, andimmediate self-interest. A half-centurylater, against all countervailing forces,obligation triumphed.

As a psychology professor, thescience of influence fascinates me.

Why is it that one person feels obligatedto another, and what compels someoneto fulfill an obligation? Can one personinfluence another ethically, in a way thatleaves both parties feeling satisfied?

To answer these questions, Iundertook a three-year program ofresearch, studying the regular practicesof professionals who had been gettingme to comply with their requests allmy life. I infiltrated various settings tolearn from the inside. I enrolledincognito in the training programs ofsales organizations, and learned how tosell encyclopedias, automobiles, andappliances. I took a job in a restaurantto see how servers generated larger tips.I worked in a public relations firm, in apair of advertising agencies, and in thefundraising departments of two charityorganizations.

What I learned surprised me.Although I registered hundreds ofindividual compliance tactics, the greatmajority of techniques could beunderstood in terms of only a fewuniversal principles of human behavior.In my book, “Influence: Science andPractice,” I outline six rules ofpersuasion, and explain howcompanies and polished professionalsutilize them to gain compliance —sometimes from unknowing andunwilling targets.

These six rules need not beemployed dishonorably. Savvyindividuals can make full use of them,ethically, bettering society and

providing fulfillment to willing donors.How do they do it?

To find out, the Stanford SocialInnovation Review sent out aquestionnaire to nonprofit executivedirectors and consultants, and askedthem which of the six rules were mostrelevant to their fundraising work.The survey results, as well as follow-upinterviews, suggest that at least four ofthe rules offer unique opportunities fornonprofit development. They are:

1. Reciprocity. People try to repay,in kind, what another person hasprovided them. (It is this rulethat prompted Ethiopia’s gift toMexico).

2. Scarcity. Opportunities seemmore valuable when they are lessavailable.

3. Authority. People tend to defer tolegitimate authorities as adecision-making shortcut.

4. Consistency. Once people make achoice or take a stand, theyencounter personal andinterpersonal pressures to behaveconsistently with thatcommitment.1

Although the use of these principlesoptimizes influence, they are employedoptimally by only a fraction of thosewho could benefit from them. Manynonprofit leaders regularly fumbleaway the chance to employ theprinciples, because they do not

The Power of PersuasionPart One of a Two-Part Series. Reprinted with permission of the Stanford Social Innovation Review. Robert B. Cialdini, Regents’ Professor of Psychology, Arizona State University


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16

understand them, or know how toharness their force. Others know quitewell what the principles are and howthey work, but they import themdishonestly, achieving short-term goalswhile leaving a target feelingmanipulated.

Successful nonprofit leadersunderstand the rules of influence andemploy them ethically. Rather thanputting people in a hammerlock, theyuncover pre-existing affinities,“informing people to ‘yes’.” As aconsequence, even after complying,people are likely to feel positivelytoward the nonprofit and its cause, andare more willing to comply with futurerequests.

Reciprocity

Several years ago, a universityprofessor sent Christmas cards to asample of strangers. The response wasamazing; holiday cards came pouringback from people he had never met.Most never inquired as to his identity.They received his holiday card, andthey automatically sent cards inreturn.2

While small in scope, this studyshows the potency of the rule ofreciprocation. Each of us has beentaught to live up to it, and each of usknows the social sanctions applied toviolators. Part of reciprocity’s powerstems from the fact that a person cantrigger a feeling of indebtedness bydoing an uninvited favor.3 People feelobligated to repay whether or not theyhave asked for a favor.

Many nonprofits employ the rulewhen they send free gifts or trinketsthrough the mail, hoping for a donationin return. For instance, the DisabledAmerican Veterans organization reportsthat its simple mail appeal for donationsproduces a response rate of about 18percent. But when the mailing alsoincludes an unsolicited gift (gummed,individualized address labels), thesuccess rate nearly doubles to 35 percent.

The Hare Krishna Society, anEastern religious sect, employed thisrule with similar results. A robedKrishna would walk up to a person inan airport and give them a gift, such asa flower or a copy of the “Bhagavad-Gita.” Often, people attempted toreturn the gift, but the Krishnas refusedto take them back, requesting adonation instead. People who didn’twant the flowers often gave moneyanyway. Over the years, however, itbecame more difficult for the Krishnasto use the strategy effectively, becausethey were using reciprocity to createobligations that didn’t exist naturally —exploiting it so only they benefited.Many soon became wise to their ways,and either avoided the sect members ordeflected the gifts. Ultimately, theInternational Society for KrishnaConsciousness declared bankruptcy inthe United States. What had been ashort-term fundraising success was along-term failure.

The good news is that it is notnecessary to use the rule in such amanipulative way. Nonprofit leaderscan tap the reciprocity rule byuncovering and pointing out theservices, benefits, and advantages thathaving their organization in the

community has already provided topotential contributors. To corporatecontributors, they can point to thebenefits their organization has beenproviding to the community bymaking it a better place for thecompany to be located in — making iteasier for them to retain goodemployees and to attract new ones. Toindividual donors, developmentdirectors can point to the services andresources their organization has beenproviding all along — perhaps thesocial safety net they have beenproviding. The savvy nonprofit leadertaps the reciprocity rule by describingfuture support as payback for whattheir organization has already given.

This is the approach taken by theGirl Scouts of the USA, which has some3.7 million members in more than233,000 troops worldwide. In additionto field trips, sports clinics, andcommunity service projects, the GirlScouts run several outreach programs.Girl Scouts in Public Housing, forexample, creates troops for girls inimpoverished homes, in partnershipwith the U.S. Department of Housingand Urban Development (HUD). Andyet, many people still hold a verynarrow view of the Girl Scouts’ mission.“Many people have a notion of GirlScouting that’s stuck in the 1950s —centered on camping, selling cookies,and crafts projects,” says Laura Westley,their vice president of governmentrelations and advocacy. “We wantpeople to understand that we knowmore than how to make great chocolatemint cookies. We understand what’sgoing on in girls’ lives today.”

Westley’s job, in part, is to influenceCapitol Hill lawmakers who control

The Power of PersuationContinued from Page 14

17

federal purse strings to appropriatefunds for Girl Scouts programs. To dothat, she relies on the law ofreciprocity, alerting members ofCongress to Girl Scout programmingthat is already benefiting theircommunities.

About a year and a half ago, forexample, Westley took U.S. Rep.Marcy Kaptur (D-OH) to visit a GirlScout troop in a Toledo public housingproject, enabling her to see theprogram’s impact firsthand. Aftervisiting, Kaptur (who sits on the HouseAppropriations Committee) beganadvocating for the program inCongress — ultimately resulting in a$2 million federal allocation in fiscalyear 2003 to fund its expansion. “Partof the agenda is to have peopleunderstand what Girl Scouts is doingfor the girls in their community, how itimpacts the lives of volunteers, andhow it impacts the community as awhole,” Westley explains. “And theonly way that most members ofCongress and executive agency officialsreally get to know that is for someoneto take the time to show them.”Following this script, Westley says, hashelped the Girl Scouts garner about$15 million from the federalgovernment since 2000.

Scarcity

Mesa, Arizona is a Phoenix suburbwith a large Mormon population and ahuge Mormon temple. Although I hadappreciated the temple architecture froma distance (I live nearby), I had neverbeen interested enough to go inside.That changed the day I read a newspaperarticle that told of a special inner sanctumthat only the faithful were allowed to see.

The newspaper reported that therewas one exception to this rule: For afew days immediately after a temple isnewly constructed, nonmembers areallowed to tour the entire thing. As ithappened, the Mesa temple had beenrecently renovated, and was thereforeclassified as “new.” Thus, for the nextseveral days only, non-Mormon visitorscould see the traditionally bannedtemple area. I immediately resolved totake a tour.

When I phoned a friend to ask if hewanted to come along, he wonderedwhy I was so intent on a visit. I hadnever been inclined toward a templetour before. I had no questions aboutthe Mormon religion. I had nointerest in church architecture.

I realized that the temple’s lure had asole cause: If I did not experience therestricted sector soon, I would neveragain have the chance. Somethingthat, on its own merits, held littleappeal, had become decidedly moreattractive merely because it was rapidlybecoming less available. This, in anutshell, is the powerful force behindthe second tool of nonprofit influence:scarcity.

Almost everyone is vulnerable to thescarcity principle. Sometimes all thatis necessary to make people wantsomething more is to tell them thatbefore long they can’t have it. That’swhy advertisers use lines such as“limited supply,” “limited time only,”and “last chance offer.” People wantproducts and services more under thoseconditions.

Research has shown that tastersrated cookies as better when they werescarce; consumers rated phosphate-

based detergents as better once thegovernment banned their use;university students rated their cafeteriafood more highly when they thoughtthe cafeteria would be closed; andyoung lovers rated themselves as morein love with their sweethearts as long astheir parents tried to keep them apart.

While scarcity is commonly thoughtof as products or services in limitedsupply, development directors can alsotake advantage of the scarcity rule byuncovering and describing theirorganization’s uncommon or uniquefeatures that cannot be foundelsewhere. If an organization is theonly one in a given country, or even agiven city, providing a needed service,development officers can and shouldlet potential donors know this. Givingto such an organization may makedonors feel special and privy tosomething of which few are a part.And directors should stress how aparticular fundraising campaign willfacilitate that uniqueness.

Global Greengrants Fund takesprecisely this tactic when fundraising.Greengrants is a Boulder, Colorado-based charity that supports grassrootsgroups working for environmentaljustice and sustainability worldwide.The nonprofit, which generally makesgrants of between $500 and $5,000,has a network of 100 volunteeradvisors around the globe - localscientists, journalists, engineers,physicians, and activist leaders who aretapped into regional needs, and whofacilitate the selection of grantees.

Chet Tchozewski, Greengrants’founder and executive director, points


18

out that the global network is itself arare resource, arming the organizationwith scarce knowledge andinformation.

The network allows the fund tomake grants in places where othersgenerally don’t. In 2000, for example,Tchozewski says Greengrants was theonly U.S. grantmaker to provide anenvironmental grant to Afghanistan,giving $1,000 to a Pakistani-basedorganization to organize Earth Dayevents in Kabul and solar cookingdemonstrations in Afghan villages.“Global Greengrants Fund is one ofonly a few sources of support tograssroots groups around the world,”its Web site explains. “Less than 2percent of U.S. giving goes tointernational causes and only a fractionof that goes to support grassrootsenvironmental groups.”4 Donors whogive therefore make a uniquecontribution to international causes.

Tchozewski says individual andfoundation donors who want to makeoverseas grants, but don’t have thesame access to global resources, willoften give to Greengrants because of its

local networks. “We are starting towork with large environmentalgroups,” he adds, “who are coming tous because such networks areremarkably rare.”

Nonprofits can also curry allegiance —and encourage future giving — byproviding major givers with access andperks unavailable to the public.

Kay Sprinkel-Grace, a SanFrancisco-based consultant who advisesnonprofits, advocates this approach.In the mid-1990s, for example, sheadvised the Grace Cathedral in SanFrancisco to offer major donors a“topping off ” opportunity. With thechurch still under construction, topgivers were invited to visit the site andwrite personal messages on the innerwalls and pipes, which were laterboarded over, sealing the messagesinside — the definition of a limited time offer.

“The idea is to provide access towhat you would not be able to seeotherwise,” Sprinkel-Grace said.“That’s where the big influence point ison this for nonprofits.” �

1 The two other principles are “social proof “

(people view a behavior as correct in a given

situation to the degree that they see others

performing it), and “liking” (people prefer to say

yes to individuals they know, are similar to, and

like). These rules are intrinsic to nonprofit

fundraising. For instance, a donor might decide

to give because several other well-known

community members have already given (social

proof ); or, a donor might give because a friend,

peer, colleague, or co-worker is doing the asking

(liking). Because these rules are so widely

employed by modern-day fundraisers, we focus

our analysis on the other four, which present

much untapped growth potential.

2 Kunz, P.R. and Woolcott, M. “Season’s

Greetings: From My Status to Yours,” Social

Science Research 5 (1976): 269-278.

3 Paese, P.W. and Gilin, D.A. “When an

Adversary is Caught Telling the Truth,”

Personality and Social Psychology Bulletin 26

(2000): 79-90.

4 See http://www.greengrants.org/index.html

Robert B. Cialdini is Regents’ professorof psychology and distinguished graduateresearch professor at Arizona StateUniversity.. His book, “Influence: Scienceand Practice” (Boston, MA: Allyn &Bacon, 2001), has appeared in numerouseditions and 11 languages. As presidentof the firm Influence at Work, Cialdinispeaks and consults regularly on “EthicalInfluence.” He can be reached [email protected]. See the June2005 issue for Part II

Who will be speaking at this year’sNew York Nonprofit Conference in August?

To find out as well as learn about other upcoming eventsgo to our Web site:

www.nonprofitfederation.org

The Power of PersuationContinued from Page 17

I know that since coming to TheDMA last summer, I’ve already had theopportunity to meet a number of you.However, I am delighted to be heretoday to introduce myself to more ofthe members who help make ourNonprofit Federation so successful, andto speak briefly about some recentchanges at The DMA that, we believe,will impact nonprofit organizationsthat employ direct marketing in their fundraising.

Nonprofits HarnessingAmerican Generosity

Some one hundred and fifty yearsago, Alexis de Tocqueville observed thatcharity in America was something morethan simple compassion. Rather, hesaid, it was a sign of good citizenship.He wrote: “Americans make great andreal sacrifices to the public welfare.They hardly ever fail to lend faithfulsupport to one another.”

This is true. But our reach goes farbeyond supporting one another. Oneneed look no further than theaftermath of the horrific tsunami in theIndian Ocean to be reminded of thepower and the enormous generosity ofthe American people, as well as othercaring, good people all around theglobe.

However, it is, very frequently, thenonprofit community that initiates,

harnesses, and delivers this generosityin very creative and powerful ways.

I know this from personal experienceover the years. Right now, I’m on mysecond tour of duty on The AdvertisingCouncil’s Board. The first time waswhen I ran the Yellow PagesAssociation, and now I’m serving againas the head of The DMA. Also, I’vebeen involved with the Board of theLiteracy Volunteers of America, andprior to that, the Board and ExecutiveCommittee of Pro-Literacy Worldwide.

When I ran my own associationmanagement business, a part of whatwe did was to help nonprofitorganizations evolve to reflect thechanging marketplace. This includedhelping them better communicate andraise funds.

Also, I can tell you that on my ownhome front, I’ve seen the excellent workthat Alzheimer’s organizations do toassist those who are living with thisdebilitating disease as well as theircaregivers and loved ones.

Simply put, charitable organizationsare, collectively, a very prominent color in the tapestry of our Americansociety and economy. I very muchrespect this and can well appreciate and understand the differences andchallenges between your world and thecorporate world.

The DMA’s New Strategic Plan

Which is why - as The DMA’s newCEO - I want you to know directlyfrom me that a “New Day” has justbegun at The DMA, and that werecommit to each of you - whether youare or are not a member of thisAssociation - to represent your interestsand provide you the tools andinformation that will help you to doyour important work.

To help us do that, last week, weannounced that The DMA’s Board ofDirectors had approved a new strategicplan that, in short, is a road map ofwhere we, as an organization, areheaded over the next five to ten years aswe focus on the health, growth, andvibrancy of direct marketing.

This new Strategic Plan is a “lens,” ifyou will, through which we will assessand promote the needs and interests ofthe community that we represent. Andthis is a BIG community, a “Big Tent,”which includes:

* Nonprofits and for-profits.

* Big-, medium-, and small-sizedorganizations.

* It encompasses marketers,suppliers, and every person andorganization that touches the expansive“value chain” of direct marketing thatstretches from the manufacturer or

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Remarks Before The DMA Nonprofit Federation’s2005 Washington Nonprofit Conference AttendeesThursday, February 3, 2005

John A. Greco, President and CEO, Direct Marketing Association


service provider, through the marketerand its many suppliers and vendors,right down to the end user, whichcould be a donor, a consumer, oranother business.

• This “Big Tent” includes the manychannels of direct marketing —from direct mail through theInternet.

• And it includes big-time users ofdirect marketing to those who arejust dipping their toe into thedirect marketing waters — andeveryone in between.

In addition, our new Strategic Plan isthe lens through which we will balancethis diverse and large direct marketingcommunity’s interests in relation to theinterests of others. These “otherinterests” — most notably — are thoseof the policymakers who shape thepolitical and economic environment inwhich we all must operate, and donorswhose support funds your work.

By shifting The DMA’s decision-making focus to bear in mind theseexternal interests, views, and needs — Ifeel and our Board feels — will nowallow us to promote and protect thedirect marketing process, while webuild a solid “Bridge of Trust” with thepublic, which is, as we move forward,an absolute imperative.

Because, as you might have heard mesay when I spoke at our AnnualConference a few months ago down inNew Orleans, if direct marketing’s

brand is to be built on trust, and if thatbrand is compromised, our future iscompromised, and your organization’sfuture is compromised.

Strategic Plan and TheNonprofit Community

So, how will this new Strategic Planimpact you, your organization, and thegreater nonprofit community?

For beginners, in decision-making,most notably in government relations,we will be moving forward with an eyeon how our decisions will impact yourdonors and supporters and prospects.As I mentioned a minute ago, we feelstrongly that this approach will buildtrust and will help keep the directmarketing channel open, accessible,and free of unworkable, costly, anduninformed government intervention.

Also, the new plan will result ingreater focus on four key areas that ourmembers — including our nonprofitmembers — told us they want from us:government representation, networkingopportunities, learning opportunities,and research.

In addition, we’ll be more aggressivein looking at all of the possibleorganizations that should be membersof The DMA Nonprofit Federation —but who currently are not — eventhough they employ direct-responsetechniques. We hope they will join TheDMA family so that we can improve onthe excellence of the greater nonprofitdirect marketing field.

Now, I’ve been very impressed withthe quality of programs that DMA andNonprofit Federation members help usdevelop. From what we will showcasehere at this conference, to our biggest

shows — like our Annual Conference& Exhibition, which will be thisOctober in Atlanta — we are fortunateto have dedicated professionals helpingus deliver the business knowledge thatdirect marketing practitioners need tobe world class professionals.

So, I urge you to help us spread theword of the good work you all do tothe broadest community so that thelevel of all practitioners is raised and, indoing so, raises the bar for all of us andfor the direct marketing discipline. Bydoing so, we believe we will enhanceyour ability to reach donors and keepdonors and, ultimately, help yourcharitable missions. So, as our newStrategic Plan relates to the nonprofitcommunity, it is all about The DMA’shelping you help others.

As for the next step, now with our“road map” in hand, you could saywe’ve already begun our “journey.” Infact, immediately after publiclyunveiling the plan on Monday the24th, I sat down with my senior teamto begin the work of putting the planinto effect. In other words, we’reworking to create an operating plan andbudget that are consistent with the new plan.

As we move forward in this work, wewill continue to look to our members.And that most certainly includes youand your nonprofit communitycolleagues.

We have an outstanding team inplace throughout the Association.Certainly, you are very well representedhere in Washington — and within theAssociation — by The DMA NonprofitFederation’s Advisory Council, which ischaired by Pegg Nadler, as well as its

20

Remarks Before TheDMANF 2005 WashingtionNonprofit ConferenceContinued from Page 19

exceptional and professional staff:Senny Boone, Jill Murphy, and Helen Lee.

Also, your interests are wellarticulated on The DMA’s Board ofDirectors by Kelly Browning of theAmerican Institute for CancerResearch, who is the Board’s Secretarythis year, and Chris Cleghorn of Easter Seals.

Actually, throughout our organiza-tion, both here in Washington and upin New York, we have an outstandingand extremely dedicated team. So,moving forward, we want to hear fromyou. Because, as you well know, in theyears ahead, we have big opportunities,as well as big challenges.

Therefore, it is imperative that yourDMA team and you — the nonprofitcommunity — nurture an open andhonest dialogue in order that we mayserve you, your interests, and yourmissions in ways that leverage theopportunities and intelligently manageour challenges.

Thank you and please enjoy the restof our conference. �

21

Remarks from President George H. W. Bushto The DMA Nonprofit Federation’s2005 Washington Nonprofit Conference Attendees

February 3-4, 2005

Greetings from Houston to everyone attending the DMA NonprofitFederation Conference back in Washington, D.C.

When I was told about your fundraising educational conference, I understoodits importance and wished I could be there with you. As you know, PresidentClinton and I have gotten into your line of work recently.

All of you already understand what the world is again finding out. Thegreatest source of America’s generosity is not our government. It’s the goodhearts of the American people.

In the month since the tsunami struck, private citizens across America havecontributed tens of millions of dollars for disaster relief and reconstruction.Organizations like the Red Cross, the Salvation Army, Catholic Relief Services,World Vision, CARE, UNICEF, AmeriCares and so many others respondedrapidly after the tsunami hit.

What is being seen around the world is something that a lot of people inthese afflicted countries might not realize happens. That is, when there’s atragedy outside of our shores, America comes together to help. That sends astrong message around the world of our own true compassion. It’s about savinglives. It’s about caring.

You can’t help but be moved by the utter loss of lives and destruction ofproperty. I noticed President Clinton talking to a woman in one of theembassies. She’d lost her mother, father and a brother, and it just breaks yourheart.

Although you can never replace the lives lost, with the help of yourorganizations, the people of that region will recover.

I’m told that many fundraisers at charities not involved in relief operationsfear that, because of the financial outpouring for the victims, support will not bethere for their important causes. But, according to research by the Center onPhilanthropy in Indianapolis, giving by individuals always increases in the yearsafter a major tragedy.

So whether you’re a brand name charity like the American Red Cross or alocal Bedlington Terrier rescue outfit, trust in your supporters. Make your case.They’ll be there for you.

I wish you God’s speed in your work. The world is counting in you. �

COOPERATIVE MAIL RULEGUIDANCE

Prudent Contracting witha Professional Fundraiser

For a copy of thisimportant document, go to

www.nonprofitfederation.org

22

Association of Marian HelpersThe Marian Helpers Center is

accepting donations at its Web site fordisaster relief. Collected funds arebeing forwarded to Catholic ReliefServices for distribution. In addition,the Marians of the ImmaculateConception are sending $5,000 toCatholic Relief Services to help withthis effort. www.amm.org

Association of the Miraculous Medal

The Association of the MiraculousMedal is accepting contributions forrelief of the tsunami victims. Anaffiliated organization, the St. Vincentde Paul Society, has councils in theaffected areas, particularly in India andalso in Indonesia, and is able to directfunds to them through the Society’sNational Office in the USA.www.marian.org

Catholic Medical Mission BoardCatholic Medical Mission Board

(CMMB), a faith-based leader inglobal healthcare since 1928, hascreated a special fund to aid survivorsof the tsunami disaster. CMMB is

A feature highlighting Federation members

DMANF Members Providing Relief in Tsunami Crisis

Destroyed houses in Kanyakumari.

Tsunami Child Relief Centerin Kanyakumari.

Destroyed home in Mina.

currently assessing the immediate needsof its established faith-based partners inIndonesia and Malaysia for medicalvolunteers, medicines and medicalsupplies, and small program grants.CMMB will also work collaborativelywith its partners in India, Sri Lanka,Thailand and Bangladesh to establishsustainable healthcare programsespecially for orphans, adolescents andwomen in the vulnerable communitiesas part of an ongoing disasterdevelopment initiative in the region.CMMB intends to act as both aconduit of financial aid to local aidagencies and as a catalyst for its U.S.healthcare partners interested inhelping the victims. CMMB ispresently working with its many globalpharmaceutical partners for thedonation of critical medicines andmedical supplies. www.cmmb.org

Catholic Relief ServicesCRS committed $25 million, as well

as staff for emergency relief and long-term rehabilitation programs to assistpeople devastated by the Indian Oceantsunami. This amount represented oneof the earliest and largest suchcommitments and is likely to grow asCRS assesses the tremendousimmediate and long-term recoveryneeds. The funding will focus primarilyon India, Indonesia, Sri Lanka, andThailand. Effects in Burma, Somalia,and Madagascar will also be assessed.www.crs.org

Children InternationalChildren International has created a

Tsunami Disaster Fund to help providefor the massive and prolonged

23Continued on Page 24

Orphaned child in Mina.

Home destroyed in Sri Lanka.

Children who survived the tsunami.

24

reconstruction once the immediaterelief effort has subsided. One hundredpercent of donations to this fund willbe utilized to provide grants to otherqualified organizations already workingin the affected areas whose focus is onreconstruction and child-related issues.www.children.org.

Divine Word MissionariesA special South Asian Earthquake

Fund has been established. Donationsare being taken at the Divine WordMissionaries Mission Center.www.svdmissions.org.

Food for the Hungry Food for the Hungry aims to raise

$3 million in cash donations and gifts-in-kind with its partners for the initialrelief campaign. www.fh.org

Missionary Oblates of MaryImmaculate

The Missionary Oblates of MaryImmaculate have over 200 missionarypriests and brothers in Sri Lanka andIndonesia. They are in the midst of thedevastation and are helping in any waythey can. Many of the people theywork with on a daily basis have died orhad their lives turned completelyupside-down. Emergency funds arepresently being raised and will todirectly to the areas most affected.www.oblatesusa.org.

Member SpotlightContinued from Page 23

Young girl who survived the tsunami.

Art as therapy done bythe children after thetsunami as a way of

dealing with the trauma.

25

Oxfam AmericaSome $15 million has been raised to

aid the most severely affected tsunamiregions. Countries hit hardest by thegiant waves, some of which toweredalmost 30 feet high, include Sri Lanka,Indonesia, India, Thailand, and theMaldives. Oxfam has been rushing aidto the most severely affected regions.

To support India, the agency has puttogether a $13.3 million plan to provideimmediate relief as well as longer-termassistance to help rebuild. In Sri Lanka,Oxfam has been appointed as a keyorganization to provide clean water andsanitation facilities in the northern partof the country. Oxfam and UNICEFhave been appointed the lead providersof clean water in Banda Aceh inIndonesia and its surrounding district.Aceh was one of the areas hardest hit bythe tsunami and is now emerging as acoordination center.www.oxfamamerica.org

Salesian MissionsEmergency leaflets are being inserted

into mail communications. The leafletwill also be posted on the Web site aswell and donors will be able to donateonline at www.salesianmissions.org

Some 600 Salesians from 93 differentcommunities are in direct contact withthe victims, offering immediateassistance to the survivors. Collectionsare underway in numerous areas so theSalesian Congregation can help providefor immediate needs as well as long-term support. We are urging all Salesianworks (parishes, schools, clubs, etc.) to

start their own collections for thevictims. www.salesianmissions.org

SOS Children’s VillagesThousands of orphaned and

displaced children, as well as vulnerablesingle-parent families, in the worst-hittsunami zones of India and Sri Lankaare receiving relief aid from SOSChildren’s Villages. Thirteen ChildRelief Centers for some 5,600 childrenin southern India have been set up anda team of SOS Children’s Villageemployees have been sent to thecompletely devastated northernIndonesian province of Aceh to assesthe situation and possible aid measures.www.sos-usa.org

World Emergency ReliefWorld Emergency Relief was onsite

with a trained relief assessment/medic

team 48 hours after the disaster hit.They have worked closely with leadersin Sri Lanka and Thailand, firedepartments, and rescue teams toprovide direct aid to rescue workers,who are hungry, thirsty, exhausted, andtraumatized. www.wer-us.org

InfoCision and UNICEFInfoCision fielded more than 35,000

inbound calls in four hours for aUNICEF telethon that was aired acrossthe nation, which yielded more than$10 million in total donations.Additionally, throughout the month of January, InfoCision employeesdonated $8,845, which was matched by the company. This money will go to UNICEF, The Salvation Army,American Red Cross and Catholic Relief Services. �

Image of refugee children from Annuradhpura.

26

The modern world has neverwitnessed a natural disaster of themagnitude of the tsunami that hit Asia inlate December 2004. Each day since thetidal wave struck has brought increases indeath tolls and more stories of devastatedtowns and lives. The groundswell ofresponse from governments,corporations, and individuals is likely to set a record for relief fundraising. And although people around the worldhave demonstrated tremendousgenerosity, pressure for more funding isstill apparent.

Beyond being an efficient fundraisingvehicle in the wake of the tsunamidisaster, the Internet has also played ahuge role in raising awareness,motivating consumer response, andencouraging governments to give more.An unprecedented flow of informationand opinions online helped to stimulateadditional government grants andindividual giving. The role of theInternet in tsunami relief fundraising hasbeen particularly significant in theUnited States. Many relief agencies havereceived substantially more dollars onlinerelative to other channels.

I was in the United Kingdom whenthe tsunami struck. Almost immediately,an umbrella organization called theDisasters Emergency Committee wasmobilized to unify all fundraising efforts.By contrast, fundraising efforts in thestates have been much more fragmented.

Consequently, brand awareness hasplayed a large role in influencing the flowof funds to well-known groups such asthe Red Cross. However, onlinemarketing efforts by relief agencies,particularly lesser-known ones, have also significantly impacted theirfundraising effectiveness.

Optimizing “Pull” to Attract NewSupporters

Inclusion on tsunami-related lists andWeb sites has helped many groups tomaximize outreach and attract newsupporters. Online resources ranging fromthe popular search engine Google to e-newsletters published by sites such asDailycandy.com also have beeninstrumental in spreading the word aboutagencies involved in tsunami relief. Inaddition, many organizations used searchengine optimization and paid searchplacement for enhanced pull.

Optimizing “Push” ThroughE-Mail

Another practice deployed by reliefagencies has been to launch e-mailappeals. In recent years, many agencieshave developed sizeable, responsive e-mail lists of supporters they can mobilizequickly as crises strike and needs arise.

Feed The Children, Action AgainstHunger, and Mercy Corps were amongthe many organizations that sent e-mailsto constituents within days of thetsunami and were able to elicit a strong

response. Even smaller groups likeAction Against Hunger (which has anannual operating budget ofapproximately $10 million) generatedbig results. In the week following thedisaster, this group raised $305,000online for tsunami relief efforts - nearly a100-fold increase compared with totalonline funds raised the prior week. The$305,000 figure represents 65 percent ofall online funds that Action AgainstHunger raised in 2004.

Just as importantly, the $305,000consisted of donations from individuals,virtually all of whom are new to theorganization. Before the tsunami, ActionAgainst Hunger had been funded almostexclusively by grants. Now, in both theshort term and for years to come, Action

The Tsunami Relief Effort: Putting Online MarketingBest Practices Into ActionVinay Bhagat, Founder and Chief Strategy Officer, Convio

Fig. 1: E-mail appeal issued by Feed the Children

27

Against Hunger has an entirely newconstituency to cultivate and tap forongoing support and participation.

Stewardship and EmergencyDonor Retention

Many relief agencies also have used e-mail to keep supporters apprised ofprogress - something that many charitieswere criticized for not doing after 9/11.This ongoing relationship managementis critical considering the continuedneeds for developmental funding, andthe fact that, in classical direct responsemarketing, emergency donors tend torenew at far lower rates than annualappeal donors. In this context, I havefound it surprising that most tsunami-oriented U.S. online fundraising effortshave only asked for one-timecontributions. Only a few organizations— among them, the Catholic MedicalMission Board — have suggestedmonthly, committed contributions. Bycontrast, most United Kingdomagencies, per their traditional approach,are seeking committed or sustaining gifts,and have had success securing such gifts online.

Supporting Smaller NonprofitAgencies

Some nonprofits have also played asupportive role in raising funds for otheragencies, in particular those with limitedinfrastructure and brand awareness. Forexample, Citizens for Global Solutionsencouraged its supporters to donatethrough its site to two smallorganizations that lack online givingcapabilities: Siyath, a Sri Lankanorganization that works in the fishingcommunities of southern Sri Lanka; andThe Asian Youth Center, a forum ofyouth development organizations

working in India, Nepal, Sri Lanka,Thailand, and other areas of South-east Asia.

Online Advocacy for MoreGovernment Funding

One phenomenon that has beenoverlooked is the use of the Internet toadvocate for higher levels of governmentfunding. In most international disasters,there is an expectation that a nation’sgovernment funding will exceedindividual citizen contributions. Duringthe week that I spent in the UnitedKingdom after the tsunami, as individualcontributions outpaced the government’s

initial pledge, public outcry pressured thegovernment to significantly up itscommitment. A similar movement tookhold in the United States. The nonprofitgroup Citizens for Global Solutionslaunched an online advocacy campaignto get the federal government toauthorize an additional $1 billion infunding beyond the initial $350 millioncommitment. On January 5, Citizensfor Global Solutions e-mailed its housefile to write to U.S. senators using theorganization’s online advocacy tools.Two days later, Catholic Relief Serviceslaunched a similar campaign.


Fig. 2: Online advocacy campaign by Citizens for Global Solutions

28

The Influence of Blogs

In addition to formal nonprofitagency-led advocacy campaigns, informalcommentators had an unprecedentedinfluence on consumer opinion throughonline diaries known as blogs. Onepolitical blog site, the Daily KOS, hashad postings contrasting the amount offunds per capita committed by theUnited States versus other countries, andalso comparing governmentcontributions to the tsunami relief effortswith the Florida hurricane relief efforts.Charities like UNICEF tried to harnessthe popularity and targeted audience ofblogs such as the Daily KOS to generatecontributions through online banner ads.According to a study released in early

January by the Pew Internet andAmerican Life Project, more than eightmillion Americans have started blogs,and 27 percent of Internet users surveyedsaid they read blogs — a 58-percentjump since last February —and 12percent of InterConclusion

Beyond being an efficient vehicle forcollecting tsunami disaster relief funds,the Internet more than ever has played amajor role in raising awareness,motivating consumer response, andencouraging governments to give more.While well-branded nonprofit agenciessuch as the Red Cross and UNICEFbenefit greatly from the efficiencies of theWeb as a donation vehicle, and throughsignificant online promotion acrossconsumer Web sites, smaller or lesser-known organizations also have achievedsuccess through practicing effective

online marketing. Particularly interestingwill be the overall impact of onlineadvocacy campaigns on governmentpledge levels. This could be a new useof the Internet during crises that, ifsuccessful, could have a larger and moresignificant impact than the use of theonline medium to drive individual giving in the days immediately followinga disaster. �

Vinay Bhagat is founder, chairman,and chief strategy officer of Convio, Inc., aleading provider of software and services tohelp nonprofit and individual-supportedorganizations use the Internet to becomemore effective at fundraising, mobilizingsupport, and managing constituent rela-tionships. For more information, visitwww.convio.com.

The Tsunami Relief Effort...Continued from Page 27

What added paperwork will charitiesbe asked to file? What new fees will berequired by the IRS? What new checksand balances will charities need to putinto place to qualify for nonprofit status?Will there be federal accreditationstandards? Will fundraising costs beregulated? Will the charity watchdogsrating your organizations receive federalfunds to do so? Will executivecompensation, travel costs, and businessexpense be set at unreasonable levels fornonprofits simply due to their exemptstatus? As fundraisers, you may not befocusing on these questions, but youneed to for the long term.

The Independent Sector, aWashington-based organizationrepresenting nonprofits has beenassigned the unpleasant task of puttingtogether recommendations foradditional regulation for charities inlight of a handful of highly publicizedcases of charity fraud. The organizationhas been tasked with this duty bySenator Chuck Grassley (R-IA), currentchair of the United States Senate FinanceCommittee, and his ranking minoritymember, Max Baucus (D-MT.)

The IS has convened severalworking groups to issue recom-

mendations to the Committee. Thefirst set of proposals was sent to theCommittee in March, leading Grassleyto commentóììAAs chairman of theFinance Committee, I recognize thatcharities are different and we mustkeep in mind particularly the burdenplaced on small charities. That is why Ihave felt it important to reach outbroadly and benefit from the views ofinterested parties. Certainly the Panelon the Nonprofit Sector is critical tothis effort. The interim report todayand the final report will weigh on thethinking of the Finance Committee.î

29

CRISIS OF THE MOMENT — Will There Be New Federal Penalties for Charities?Senny Boone, Executive Director, DMA Nonprofit Federation


The DMA Nonprofit Federation

LEADERSHIP SUMMITJune 1 – 2, 2005Denver Marriott City CenterDenver, CO

To register and for more information, please visit www.nonprofit-conf-ci.org or call DMA Customer Serviceat 212.790.1500. When registering, please use Key Code NPJMAR.

He stated that there will be a hearingthis spring regarding the CARE Actand ìaaccompanying reforms ofcharitable governance and donations.

We will need to be involved! TheDMANF has filed comments to theIndependent Sector regarding its firstset of proposals. Our concerns rangefrom ensuring that failure to file theIRS Form 990 will not result inautomatic revocation; that penaltiesand fines generated from paperworknon-compliance not be used to fundthe regulator (the IRS, which wouldthen be in a serious conflict of interest);that nonprofit organizations not beforced to mandatory e-filing of theForm 990, leading to large costs for

30

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Critical IssuesFacing Nonprofitsin The Year(s) Ahead

Critical IssuesFacing Nonprofitsin The Year(s) Ahead

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software without a cost/benefit analysis;and questioning additional disclosurerequirements for organizations that arenot now required to file with the IRS.(For a copy of our comments, callSenny Boone at (202) 861-2498,[email protected].

There is a chance that legislation will move before the full set ofrecommendations is released by the ISto the Committee, especially if there areadditional nonprofit scandals. Grassleystated, ìoonce you have agreement onthe problem, it is easier to work withina common framework for solutions.îHowever, it is not clear that theproblem and the solutions have beenaligned properly. The problem is fraud,an age-old issue that defies regulation.More needs to be done on theenforcement side rather than addingcomplex new burdens on nonprofitsthat have already taken all the stepsnecessary to be in compliance and aretrying to do good work. �

Crisis of the Moment...Continued from Page 30

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