NFP Re-imagining
In a recently published article, we considered the importance of businesses reimagining work in ways that allow them to make money and be profitable. This reimagining is essential post-COVID because of the disruption that has been caused to the relationship between work, the workplace, and the workforce.
In reimagining how work is performed, one question remains the same. How does the business make money?
Making money is no longer just an exercise in rampant capitalism. How companies make money in today’s economy and society involves closely aligning an organisation’s purpose with environmental, social and governance (ESG) considerations.
While not-for-profit organisations have a service priority rather than a profit or money-making goal, they are still faced with the necessity of reimagining work post-COVID.
In many ways, this question is more challenging for not-for-profit organisations. For-profit businesses ask, “how do we make money?” The question for not-for-profit organisations is more nuanced because there are two aspects not-for-profit organisations have to consider;
- How do not-for-profit organisations provide a service that meets client’s needs
- How do NFP organisations remain financially viable?
HOW DO NOT-FOR-PROFIT ORGANISATIONS PROVIDE SERVICES THAT MEET CLIENT NEES AND ENABLE THE ORGANISATION TO REMAIN VIABLE?
The term not-for-profit is a misnomer because organisations that have a not-for-profit status must still make a profit to enable them to continue to function and provide a service to their client base.
Hence, in re-imagining how to provide a profitable service to meet client needs while remaining financially viable, there are several unique factors not-for-profit organisations must consider.
THE ONGOING ISSUE OF FUNDING
As not-for-profit organisations do not charge for the services they provide, they rely on grants and donations.
THE CHALLENGE WITH GRANTS AND CONTRACTS
In 2022, revenue from the Australian Government to the not-for-profit sector was $88.8 billion which accounted for 50.4% of the total revenue to the sector.
The number of organisations accessing this government funding rose from 37% in 2019 to 47% in 2020 to 49 165 charities.
While revenue from the Australian government to the charitable and not-for-profit sectors is essential to assist organisations in meeting complex needs within the community, it does present challenges to organisations receiving grants and contracts from the government.
1. INCREASING REGULATORY BURDEN
With increasing government spending in the sector, there is often an increasing regulatory burden on organisations to demonstrate that the money they are receiving is being used for the purposes it was provided for.
While organisations need to be accountable to both the government and the community to show that tax-payer funds are being used for the benefit of the community, accountability must be balanced with an increasing regulatory burden that often means employing additional administrative staff to meet these requirements.
2. TIME-LIMITED CONTRACT PERIODS
The other challenge with government grants and contracts is that they are generally time-limited to three or five years. While some grants and contracts may be rolled over, in many cases, organisations must re-apply for funding.
This introduces an element of uncertainty for organisations as continuity of funding is not guaranteed. Changing governments and changing priorities can result in organisations being defunded and contracts awarded to other organisations.
As governments seek to reboot economies impacted by COVID, rising interest rates and inflation, accessing government grants will become more difficult for many not-for-profit organisations.
THE CHALLENGE OF ACCESSING DONATIONS
Accessing philanthropic donations is often just as challenging as receiving government grants, particularly for small to medium-sized not-for-profit organisations. In small to medium-sized organisations, staff are involved in frontline service delivery. Consequently, they do not have the time to invest in the relationship-building often required to attract substantial donations from individuals or businesses.
How do not-for-profit organisations reimagine the services they provide when they must also reimagine how to access and secure funding to provide the services?
In considering this question, there is another area that not-for-profit organisations must consider.
SERVICES AND STAFFING
During COVID, many for-profit businesses were able to pivot and provide services through innovative use of technology.
While the use of technology within the not-for-profit sector is greater now than in pre-COVID, most not-for-profit organisations still provide face-to-face services for clients.
As with funding, there are several factors that are impacting the delivery of face-to-face services post-COVID.
STAFF AND EXHAUSTION
Many people are experiencing an ongoing exhaustion post-COVID that they often do not verbalise. The prolonged uncertainty and anxiety many experienced during COVID continues to be felt as exhaustion. In the haste to return to some level of normality, this exhaustion gets denied or, if it is felt, is not acknowledged because we are afraid of appearing weak.
Yet, exhaustion is a reality for many, particularly staff in the not-for-profit sector. The rapid changes they had to adjust to, the sense of uncertainty and the increasing complexity of client issues mean that staff are exhausted.
Reimagining how services can be provided is virtually impossible when staff are exhausted because it requires two things absent in states of exhaustion. These are:
- Energy
- Creativity
Reimagining requires energy—the energy of creativity and the power to implement what the creativity has created. When staff are exhausted, they do not have the energy to reimagine a different way of doing things.
TALENT DRAIN
The exhaustion many staff feel also contributes to the talent drain within the not-for-profit sector. Staff leave because they think they have nothing left to give. They also leave because, with rising interest rates and inflation, they can no longer afford to remain in the not-for-profit sector.
When people leave the sector, not only is talent lost, but knowledge and history are also lost. Given that the not-for-profit sector is heavily people based when knowledge is lost, people are unaware of the lessons and the history that previous staff members have learned.
At the beginning of this article, we asked the question.
How do not-for-profit organisations provide services that meet client needs and enable the organisation to remain viable?
As we have outlined, not-for-profit organisations face unique challenges in reimagining this future. However, despite the challenges, we need to start carving out time to reimagine what the future could be. As indicated above, we are often so focused on clients’ needs and daily demands that we don’t have the energy or time to reimagine what could be.
Yet, just as for-profit businesses have to carve out the space to reimagine the future of work, we have to carve out the space to do the same. Otherwise, we run the risk of being left behind and providing services that are no longer fit for our clients.
- Published in marketing, Not-For-Profit
Maximising NFP Websites
Michael Levine has authored a book titled “Broken Windows, Broken Business” in which he applies the broken window theory to businesses.
- Published in Data, Design, Google, marketing, Not-For-Profit
Not-for-profits, Funding and Search
Funding in the non-profit sector has always been challenging; however, that challenge has increased over the past few years. Many factors have increased the challenge. Some of these are:
1. THE INCREASING COMPLEXITY OF PEOPLE’S ISSUES
People needing support often have complex problems that require the support of multiple organisations. Most service delivery models are based around solving one problem; for example, housing, employment, or mental health issues. While many services are gradually moving towards a more client-centric model and providing wrap-around services, there is still a lack of these services available.
2. RISING COSTS FOR SERVICE DELIVERY VS LEVEL OF FUNDING
The cost-of-service delivery and wages have increased beyond the level of funding to organisations. Consequently, many organisations reduce service delivery or find less expensive ways to provide services. For example, organisations that have provided face-to-face services may become telephone advice-only services. While telephone advice may be helpful in some situations, it implies the client can act on the advice provided. Many people with complex issues require more support than telephone advice.
3. INCREASING COMPETITION WITH THE NOT-FOR-PROFIT SECTOR
As governments have moved from a preferred service provider model to a tender process to contract for service delivery, not-for-profit organisations are often forced to compete with other not-for-profits. Often this results in two things. Firstly, a reduction in the number of service options for clients. Not-for-profit organisations that are not successful in winning contracts either have to merge or close. The second thing that often occurs is that service delivery is under-quoted, exacerbating the issue highlighted in the second point above.
4. CHANGING NATURE OF DONOR BASE
The traditional donor base they may have relied on in previous years is changing for many not-for-profit organisations. People are more likely to donate online. Businesses can no longer rely on doing things the same way, so not-for-profit organisations must consider how they can build donor loyalty in a new environment. The changing nature of organisations donor-based was discussed previously.
WHAT DOES Search and seo HAVE TO DO WITH THESE CHALLENGES?
Given these challenges, most leaders within not-for-profit organisations would ask, “what does SEO have to do it?”
The simple answer is “a lot”. SEO or Search Engine Optimisation is imperative for not-for-profit organisations in today’s environment for many reasons, some of which we will highlight.
1. CAN YOU BE FOUND?
We are familiar with the “Where’s Wally” books. Crowded pictures where we have to find Wally. The not-for-profit space is a crowded landscape. The ACNC (Australian Charities and NFP Commission) stated there are over 60,000 not-for-profits in Australia, which is growing at 4% per year.
This highlights the point we discussed above, the increasing competition in the sector.
SEO is one major thing that allows you to stand out and be seen in a crowded landscape.
A. BEING FOUND BY YOUR CLIENTS
There are two aspects to being found by your clients.
i. CLIENTS IN NEED
Clients need to find a service that will meet their needs quickly and effectively. You will not be found if your organisation is on the third page of a Google search. To be found, you need to be on the first page of a search engine. A strong SEO strategy is the only way to be on the first page.
Search engines reward strong SEO by lifting the ranking to the first page, enabling organisations to be found quickly.
ii. EDUCATING CLIENTS
Providing excellent client-centric content on your organisation’s website not only builds your SEO but also educates your clients. Fact sheets, information sheets, and content that answers common questions are helpful to have on your website for three crucial reasons.
- It reduces the time you spend on non-essential phone calls and frees up time for clients needing more one-on-one support.
- It means clients who may need information after hours or on weekends can access it through your website; &
- This content boosts your SEO, which is a win-win situation—a win for your clients and your organisation.
B. BEING FOUND BY YOUR DONORS
As mentioned, the majority of donors are now donating online. Donors are often IT savvy, extremely busy, want to donate quickly and smoothly, feel good, and get on to the next thing they must do.
Hence, they are looking for organisations they can donate to that are on the first page of their search engine. They do not have time to click through to pages 3, 4, or 5. If your organisation is on these pages, you will be missing out on potential donations.
A strong SEO that gets your organisation onto the first page of a search engine increases the likelihood of building a solid donor base.
C. BEING FOUND BY FUNDERS
The same principles listed above for clients and donors also apply to funding. When a not-for-profit organisation applies for funding, the funding body will check the organisation’s website. There is an expectation by funders that organisations will have enough IT literacy and professionalism to have an up-to-date website that is SEO optimised.
For example, suppose two organisations providing services to a similar client group apply for funding, and one can be found easily on a search engine. The second is lost on a search engine’s third or fourth page. In that case, the odds are weighted heavily in favour of the first organisation being successful simply because by having strong SEO, this organisation is more likely to be reaching and impacting the lives of more clients than the organisation on page three or four.
THE IMPORTANCE OF DATA IN FUNDING APPLICATIONS
Many not-for-profits fail to realise the importance of SEO and data analytics and do not include these figures in funding applications. Many not-for-profits count client phone calls or face-to-face appointments as client numbers and fail to include the number of people who access their website.
For example, one small not-for-profit organisation, Tonic, works with, provides phone or face-to-face service delivery to approximately 400 clients annually. However, because they have engaged strongly in optimising their website and social media, they average between 12,000 to 14,000 visitors to their website/month.
This example highlights the importance of being found by your client base and puts the organisation in a strong position for funding applications because they can demonstrate a more significant impact.
SEO IS ESSENTIAL
A not-for-profit organisation that fails to capitalise and build a robust SEO platform is doing itself and its clients a disservice. SEO is no longer a nice to have for an organisation. It is essential, particularly when Google provides grants to non-profit organisations for SEO and ads.
Tonic Digital specialises in assisting not-for-profit organisations in applying for and using this grant effectively. If you need further information on how we can help, contact us.
- Published in Google, marketing, Not-For-Profit, SEO
Non-Profit’s Leveraging Google
Many non-profit organisations take an S & P approach to their online presence. S & P refers to a strategy based on spray and pray principles. Spray some social posts on the organisation’s Facebook or Instagram page, link them back to the website, and pray that somewhere out there someone will see the post at some point.
Posting photos of the latest staff training day or staff luncheon undoubtedly has a feel-good factor and helps build an organisational culture and team camaraderie. However, as a means of raising the organisation’s profile, such a strategy has little or no impact.
THREE REASONS NON-PROFIT ORGANISATIONS NEED TO BECOME MORE STRATEGIC AND TARGETED WITH THEIR CONTENT MARKETING?
In a previous article, we considered the need for non-profit organisations to have a strong content marketing strategy was outlined. The reasons for having a target content marketing strategy are to enable the organisation to communicate the needs of their clients to the wider community, hence driving action from the community and encouraging a broader donor base to support the organisation’s ongoing work.
I want to elaborate on these reasons.
1. THE CHANGING FACE OF HOW NON-PROFIT ORGANISATIONS ARE FOUND
The level of technological literacy has grown among community members. This means people are more likely to go online to search for assistance. The majority of people are searching online using their mobile.
One of the significant changes within the non-profit space over the past twenty years is that most clients who access services now have mobile phones and are searching online for assistance. Twenty years ago, the mantra was that disadvantaged people who needed assistance didn’t have mobile phones. Therefore, there was greater reliance on printed media and word of mouth for referrals.
This is no longer true. Consequently, organisations need to ensure they can be found online, particularly that their websites and social media platforms are mobile-friendly. To increase their findability, online non-profit organisations need to ensure their content marketing is designed to increase their Google ranking so their client group can find them.
2. THE CHANGING FACE OF DONORS AND DONATIONS
The majority of donors are now searching and donating online. While this trend was developing pre-COVID, it has escalated during and post-COVID. People who wish to donate are more likely to go online and make donations through an organisation’s website.
Therefore, it is vital to ensure a non-profit organisation has a high ranking so that it is on the first page of Google search, as this will place it in the best position to attract donations. The other thing with donations through online platforms is that it is less expensive than other forms of fundraising and does enable organisations to reach a larger group of people than they would otherwise be able to.
3. FIRST IMPRESSIONS COUNT ONLINE AS MUCH AS IN PERSON
Given most people are now searching online for assistance, decisions are made by how an organisation presents itself online. This applies as much to clients as it does to donors.
The organisation may be convinced it is doing excellent work; however, if the website is out-of-date and has broken links, it is unlikely to receive a favourable impression from donors or clients.
When organisations consider their reputation and risk factors, they need to consider their online reputation because this is very often the first contact a person has with the organisation.
ONE WAY A NON-PROFIT ORGANISATION CAN BUILD ITS ONLINE PRESENCE
One of the important ways non-profit organisations can build their online presence is through SEO.
WHAT IS SEO?
SEO stands for Search Engine Optimisation. Search engines such as Google, Bing and Yahoo use algorithms to ensure they provide the best possible answer to every search query on their platform.
Optimising your online presence allows search engines like Google to understand your content and what you write about, which means they can provide your organisation with a list of responses to a query from a person using words that reflect your online presence [1].
Google, Bing, Yahoo and other search engines use what are known as web crawlers to understand your content. The purpose of the web crawler is to build an index with a ranked list of websites that are the most relevant to a query.
SEO AND CONTENT
This is where content becomes vital to non-profit organisations and why the spray-and pray approach doesn’t work. The spray-and pray approach doesn’t work because web crawlers cannot interpret the content sufficiently to rank the website to respond to any query.
The other trap non-profit organisations can fall into is spending considerable funds on a new or revamped website that looks impressive and colourful but may not build the organisation’s online profile if it is not designed for SEO. Money can often be saved by staying with the original website, but making it compatible with SEO so web crawlers can begin understanding the content.
THE CHALLENGE OF CONTENT
Content for non-profit organisations is often challenging. Staff often feel uncomfortable writing for the public, making it difficult to have consistency in publishing content that ranks. SEO improves the more consistently relevant content is published and promoted online.
There are also time pressures. Compared to client needs, writing content is down the list of priorities. The other challenge is knowing what to write about. There can be many topics and issues we believe are necessary to get out into the public domain.
There is no easy way around these challenges. Some larger non-profit organisations may be able to contract writers to write content for them; however, even if they do, the organisation still needs to develop a clear, coherent SEO strategy to guide the writer.
ORGANIC OR PAID ADS FOR SEO
A non-profit organisation that develops a coherent and strategic SEO strategy and consistently writes or hires a writer to write in line with the strategy will find organic traffic to their website increasing.
Organic traffic occurs when people search online, and your organisation’s website is ranked, so the person visits your website from their search. Organic traffic is the least expensive and most effective way to increase traffic and an organisation’s online presence. However, it can also be the slowest method and requires commitment and dedication.
Google Ads is a way non-profit organisations can advertise through a grant from Google. Many non-profit organisations miss out on this opportunity because they are unaware of these grants. However, it is a valuable and cost-effective way to advertise online while building an organisation’s SEO profile and organic traffic.
Tonic Digital has used Google Grants for several non-profit organisations that have delivered outstanding results in the awareness of the broader community of the organisation.
If you would like further information on Google Grants for your NFP organisation, please contact us.
- Published in Not-For-Profit, SEO
Not-for-profit labels vs community benefit
Labels have power. Marketers and medical practitioners know this fact. For marketers, a name can conjure up a brand and all that is associated with it, for example, sporting prowess or luxury. Marketers know people purchase a particular label, for what the name represents. Porsche doesn’t just make a good car or Dior make a fragrance; we enjoy. These brands are associated with luxury and not just luxury in its broad sense but niched even further to attract particular customers. It is the associations that make customers buy.
The power of naming is also known in the medical field. In the mental health area, up until the 80s, people were often defined by their medical diagnosis. A person who experienced schizophrenia was known as a schizophrenic and was seen as the diagnosis rather than the person. One of the most powerful examples of this were the Rosenhan experiments conducted by Dr Rosenhan between 1969 – 1972. Dr Rosenhan, a psychiatrist, sent twelve people with no mental health illness into psychiatric hospitals. All twelve participants in this experiment were diagnosed with a mental health condition and admitted to the hospital, and the hospitals never realised a misdiagnosis had been made. Such is the power of names and labels.
DOES THE LABEL NOT-FOR-PROFIT MATTER?
If the power of labels and names is recognised in marketing and medicine, is it time to change the labels of not-for-profit organisations?
In broad terms, not-for-profit refers to how the organisation is set up for tax and regulatory purposes. As a not-for-profit, any surplus has to be used for service delivery to clients rather than bonuses to staff or shareholders. However, there are good reasons why the not-for-profit sector should re-brand itself as the sector for community benefit.
Let’s consider some of these reasons.
1. MINIMAL MINDSET
The term “not-for-profit” begins with a negative. In marketing and branding, you would never start with a negative. The aim is to create desire, whether pizzas, perfumes, cars, or kitchenware. Starting with a negative creates an oppositional mindset—the not-for-profit sector against what is ‘not’.
The challenge with an oppositional and minimal mindset is that it can act as a blinker to what may be possible.
EXPANDING OUR MINDSET
To consider what may be possible requires us to develop different perspectives to what we usually consider. We have to shift from a minimal mindset to a mindset that allows for possibility, creativity, and that spark of imagination.
HOW CAN WE EXPAND OUR MINDSET?
One way to expand our mindset is to develop connections with marketers and brand consultants. This is something we are often reluctant to do for two reasons.
WE THINK THEY ARE GOING TO SELL TO US
We often avoid building relationships that would be beneficial to ourselves personally and our organisations because we are afraid we will be “hit up” for money.
Certainly, marketers and brand consultants have to make a living just as staff in the not-for-profit sector; however, many brand consultants and marketers also want to contribute to organisations that are making a social difference. Many organisations are seeking to build their social engagement. As a social and community-based sector, we can build these relationships that allow marketing and branding organisations to contribute. At the same time, we benefit from seeing things from different perspectives.
THE TRAP OF ‘BUSYNESS’
This is the other reason we are reluctant to develop business relationships outside what we do. The increasing demand for services, particularly over the past two years, with the impact of COVID, means we often experience a sense of guilt if we take time out to do things that are not directly related to service delivery and meeting client needs.
The challenge with busyness is that we keep doing the same thing with diminishing returns as we become tired and exhausted. Many within the not-for-profit sector develop hero complexes to the detriment of their mental health and physical wellbeing. We need to step back. Stepping back and learning to see things from a different perspective allows us to develop and expand our mindset.
We can move from what we are not to what we are for.
2. MONEY, MONEY, MONEY
Money is a big issue for many not-for-profit organisations. How to use the funds they have effectively, attract more funds; secure government grants and contracts, and build more philanthropic funding streams.
In reality, the term “not-for-profit” is a misnomer because all not-for-profit organisations need to make a profit to remain viable. Not-for-profit organisations that run into deficits will close just as for-profit businesses will close if they have debts.
The challenge of thinking “outside the box” in terms of attracting new sources of revenue for not-for-profits is one of the reasons it is essential to expand our thinking and see things from different perspectives rather than falling into the trap of minimal thinking.
3. IF “NOT”, WHAT?
Given the power of labels, isn’t it time to change the label of “not-for-profit” organisations? Time to change labels from “not” to what the sector is for, for example, the Community Benefit sector.
The not-for-profit sector is about community benefit. The Australian Charities & Not-for-profit Commission has 60,000 organisations listed throughout Australia and over 80,000 programs providing services to people and communities.
Some organisations have branded themselves by what they are for rather than remaining with the term “not-for-profit”; however, these are only a few. The majority revert to using the term not-for-profit or nfp.
Perhaps given the importance of organisations providing support to individuals and communities in 2022, we should be more concerted in changing the label from nfp to CBO’s – community benefit organisations.
- Published in ethics, Not-For-Profit
The Power of your story
We are all tellers of stories. Stories are how we connect with each other. Friendship is built around repeated shared stories because they build and bond the friendship.
- Published in marketing, Not-For-Profit
Content Marketing for Not-For-Profits
One of the ongoing consequences of COVID has been the recognition of many not-for-profit organisations for the need to have an online presence. Like anything worthwhile, it takes a willingness to commit time and energy to build the organisation’s online presence and keep it up to date, relevant, and engaging.
In the busyness of meeting client demands, many organization’s websites grow irrelevant, out of date and out of touch with clients, the community, and funders. Senior managers in not-for-profit’s must remember that content marketing is essential in driving revenue, brand visibility and engagement with the broader community [1]. For example, it is increasingly common for organisations that provide funding to go to an organisation’s website as part of their decision-making process.
What is content marketing?
Content marketing is creating and distributing valuable, relevant, and consistent information to attract, retain and ultimately drive customer or client action[2]. Many not-for-profit’s ignore content marketing thinking it is only for-profit businesses or companies that sell a product. Yet, most not-for-profits want to communicate the needs of the client group they are serving and drive action from the wider community. Hence, it is in:
- Communicating the need of the client group/s.
- Encouraging donations; and
- Driving action from the wider community.
Not-for-profit organizations need to understand and use content marketing [3].
How can the not-for-profit sector start to use content marketing effectively? The advantage for many not-for-profit organisations is the power of the message they have to share. However, many not-for-profit’s share the need they are dealing with rather than their service’s impact [1].
It isn’t that the need is not necessary; the volume of demand can be overpowering. People want to feel they are making an impact or contributing to something that is making an impact. This is where it is essential to understand the psychology of giving.
When we work for a not-for-profit organisation, it is easy to fall into the trap of thinking everyone should contribute to our cause. However, community members have multiple organisations with equally important missions seeking their donations as well. We need to understand the psychology of giving and use it to ensure our content marketing increases donations and community support
This is where following the PSI method can be useful:
- The problem your organization exists to solve.
- The solution is what your organization is doing to solve the problem.
- The impact is the impact of your organization on the problem. It can also be helpful to mention what happens if the problem is not solved.
Don’t forget the importance of communicating options for how community members can be involved. Again, this comes down in part to understanding the psychology of giving. When people have options around their contributions, they give more than when asked for a fixed amount [4]. When we need donations for large projects that provide impact and benefit, it is better to be specific because we can draw on the project to discuss impact.
However, it is helpful to use content marketing to demonstrate the different options people have to contribute to the organisation.
Developing compelling content marketing involves mentally stepping outside the organisation’s parameters and thinking as a community member who knows nothing about what your not-for-profit does. This can be a challenge when we are caught in the demands of meeting client needs.
Engaging external content marketers who are familiar with the not-for-profit sector can be helpful. It is easier for organisations such as Tonic to understand stakeholders’ primary drivers for why they would like to be involved with your organisation. Our team also has experience in knowing the communication channels that are most effective for reaching stakeholders and the messages and themes that will resonate with them.
Why spend time on developing an excellent content marketing strategy? As we said at the beginning, it:
- Communicates the need of the client group/s.
- Encourages donations; and
- Drives action from the wider community,
This takes the awareness of your organisation to a higher and measurable level so people can engage on a deeper level and take action to assist you in achieving your mission [5].
The time, energy and finances spent on content marketing is investing in the ongoing success of your not-for-profit organisation.
[1] https://marketinginsidergroup.com/content-marketing/nonprofit [2] What is Content Marketing? (contentmarketinginstitute.com) [3] https://marketinginsidergroup.com/content-marketing/nonprofit [4] ibid [5] https://prosper-strategies.com/nonprofit-content- Published in marketing, Not-For-Profit, Psychology
For Profit and Not-for-Profit Nexus in Marketing
In a previous blog we considered the different models of connection between for-profit and not-for-profit organisations that allow them to build strong partnerships to the mutual benefit of both organisations.
Another important area where there can be a nexus between for-profits and not-for-profits is in the area of marketing and communication. Marketing and communication are often a challenge for not-for-profits of all sizes for different reasons.
Small to medium size not-for-profits often struggle to have sufficient funding to allocate towards marketing and communication. For the majority of not-for-profit organisations that have been established to meet community needs, the need of the individual takes priority. Hence, when there are increasing numbers and complexity of client needs, it can be difficult to allocate funds for marketing and communication. It can seem to be a false priority and waste of funds.
However, such thinking needs to be critically analysed. While it may be difficult to make a budget allocation for marketing and communication, it is also the case that to attract funding and grants an organisation needs to have a strong profile that is recognised within the community. Marketing and communication tools enable an organisation to build such a profile which will assist it in grant and funding applications. For example, deploying Search Engine Optimisation (SEO) on the organisation’s website is one way to begin building the brand profile.
Using skills and expertise of for-profit organisations specialising in communications and marketing to build the organisations profile is a great way to build the nexus between for-profit and not-for profit organisations. Most for-profit organisations that specialise in marketing and communication do understand the challenges faced by a not-for-profit organisation and can tailor their suite of services to meet the needs of small to medium sized not-for-profits.
Larger not-for-profit organisations are in a different situation to their smaller and medium sized counterparts. They will often have a budget allocation for marketing and communication; consequently, they have a higher profile and are well known in the community. They have a media presence, an established on-line platform and often an extensive CRM that enables them to message and communicate with their client base.
Larger not-for-profit organisations will often have an in-house communication team, this can be both an advantage, and a disadvantage. The advantage is the in-house communication team knows the messaging that is consistent with the organisations profile. The team knows what language to use for particular messages. However, the disadvantages and challenges of in-house communication teams are often not considered. There are two particular challenges larger not-for-profit organisations need to guard against with using in-house teams.
The first challenge is the gradual insularity of the organisations messaging. Over time, unless the organisation invests in focus groups and data collection that demonstrates the shifting interests of their client group, the message will drift from what clients want to hear to what the organisation thinks the clients want to hear.
The second challenge is that with the rapidity of changes in technology and communication, unless the organisation is investing heavily in keeping in-house teams current with changes, there is the risk that in-house teams will fall behind advances that are being made in the industry. This can also impact on the effectiveness of an organisations messaging and communication.
Using for-profit communication and marketing providers assist in avoiding these challenges. For-profit organisations will enable larger organisations to test their messaging and ensure it speaks to their client groups and for-profit organisations are more likely to stay current with changes in technology and practice because their survival depends on remaining relevant.
There is a strong nexus between for-profit and not-for-profit organisation in marketing and communication. It is knowing how to utilise this nexus for mutual benefit.
- Published in marketing, Not-For-Profit
For Profit and Not-for-Profit Nexus – Models of Connection
In the 70’s and 80’s the gap between for-profit and not-for-profit organisations was fairly clearly determined and articulated. For-profits existed to provide profit to shareholders or in the absence of shareholders, profit to the owners of the business. Not-for-profits existed to provide philanthropic and charitable assistance to those who, for whatever reason had fallen through the safety net of society.
However, over the past two decades shifts have occurred between both sectors. For-profits have had to balance the drive for profit with the need to demonstrate they are good corporate citizens, while not-for-profits have had to balance their philanthropic work with the need to return a profit to remain sustainable and continue to provide services when there is increasing demand for services and tighter regulatory and financial requirements. For-profit organisations know the reputational damage and financial costs of litigation that can quickly arise when profit and expediency is placed above the environment or ethical behaviour towards customers and clients. The growth in the number of not-for-profits, (56,000 charities in Australia in 2019 and growing at 4%) and the increase in regulatory requirements and difficulty in accessing funding, not-for-profits need to be much smarter in ensuring their sustainability.
Both sectors have moved towards a middle ground and recognised the benefits that arise from connections and the nexus between each other.
In the 70’s and 80’s the nexus between for-profits and not-for-profits was a philanthropic model. This was based on not-for-profits receiving donations from for-profits that allowed the not-for-profits to deliver services while providing the for-profit organisation with an enhanced reputation as community minded.
Over the past two decades, many for-profit and medium to larger not-for-profits have moved away from the philanthropic model to more of a transaction model of interaction.
A transactional or partnership model allows both the for-profit and not-for-profit organisations to begin sharing resources for specific events or occasions. For example, the for-profit organisation may provide staff as volunteers for an event being run by the not-for-profit. Or a for-profit organisation may meet the marketing costs for the not-for-profit organisation as long as its brand is recognised on the marketing material.
A transactional or partnership model has very real advantages for both organisations. It provides greater brand recognition for both organisations. For many not-for-profit organisations, being able to optimise brand recognition is an invaluable but often difficult to executute advantage. The real advantage of strong brand recognition for not-for-profit organisations comes when submitting grant applications.
The last type of connection between for-profit and not-for-profit organisations is an integrative model where both organisations collaborate and utilise joint resources to create new services or resources to meet community needs. The advantage of this approach is that the unique strengths of both sectors (for-profit & not-for-profit) are utilised to meet specific community needs.
Such an approach is not without its challenges, trust, confidence, and open communication are essential, yet these qualities can be learnt and built through first exploring and engaging in a partnership model of connection.
As not-for-profits are increasingly having to compete with other not-for-profit for funding, the opportunities for not-for-profits and for-profits to build strong connections and partnerships to the mutual benefit of each, continue to grow and develop.
[1] Are there too many charities in Australia? | Australian Charities and Not-for-profits Commission (acnc.gov.au) [2] Impact of the Economic Downturn on Not-for-Profit Organisation Management | Department of Social Services, Australian Government (dss.gov.au) [3] ibid [4] ibid- Published in Not-For-Profit
Building an online presence for Not-For-Profits
For the majority of Not-For-Profit (NFP) organisations, one of the consequences of COVID was the impact on service delivery. A 2020 research project reported 54% of nfp’s had to significantly change the way they provided services, while 17% of nfp’s had to suspend services completely[1]. Only 3% of nfp’s did not have to change their method of service delivery.[2]
In adapting to these changes, the technological environment in which nfp’s operate has become more important. Technology within organisations has an internal and external aspect. With the sudden shift due to COVID, the internal aspects of technology such as enabling staff to work remotely, ensuring data security and continuity of service delivery have taken priority for the majority of nfp’s. However, it is important not to forget the external, or outward facing aspects of the nfp such as websites, social media, and digital marketing. It is this external aspect that assists nfp’s to build a presence and engage more effectively with clients, the community and importantly potential sponsors or donors.
With the shift away from face-to-face interactions and large crowd functions which have been traditional sources of fundraising, nfp’s need to think through, the opportunities for fundraising and engaging with sponsors and donors through online mediums. Currently 43% of nfp’s collect donations online[3]. It is likely more nfps’ will look for ways to fund raise online in the future. This is where the effectiveness of the organisations social media and digital presence is so important because it is the first point of contact for potential donors and sponsors.
The good news is that 90% of nfp’s are using at least one social media platform, with Facebook being the most popular.[4] Of the 90% of nfp’s 79% acknowledge social media as being effective and important for the organisation.[5]
The good news is that 90% of nfp’s are using at least one social media platform, with Facebook being the most popular.[4] Of the 90% of nfp’s, 79% acknowledge social media as being effective and important for the organisation.[5]
While it is positive many nfp’s are engaging with at least one social media platform when looking at the effectiveness of nfp’s use of social media, there is still much to be done to improve and build an organisations online profile and engagement.
One simple effective way a nfp can improve their digital presence is to use the benefits of the Google for Non-Profit program. Only 20% of nfp’s are making use of this program, which provides $10,000 USD of free advertising for eligible organisations[6]. Equally, less than half of nfp organisations track and report on the results of their digital marketing activities. Consequently, with no review of the effectiveness of the activities and whether they are reaching the targeted audience, Boards and Senior Management do not see the value of the money being spent on digital marketing. If Boards do not understand the value of digital marketing and building a social media presence, it is unlikely the organisation will have a consistent, clear strategy to consolidate its online brand and this ongoing spend.
While organisations generally have a greater appetite to embrace new technology and more modern ways of working as a consequence of COVID, keeping up to date with technological changes and identifying where to invest in social media to obtain the best results remain a challenge particularly for smaller to medium size nfp’s. Having the assistance of an external provider that can provide external, expert advice on how to build brand awareness for nfp’s specifically can save money and in the long term assist in building the donor and sponsorship base.
1.Dgital Technology in the Not-for-Profit Sector 2020 Report
2. ibid
3. ibid
4. ibid
5. ibid
- Published in Not-For-Profit
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