Recently, the director of the Foundation Center's Atlanta office, Val Porter, was interviewed on the Michael Chatman Giving Show, a weekly radio program that broadcasts each Thursday at 11:30am on 880 AM The Biz out of Miami, FL and online at 880TheBiz.com. Each week, Michael Chatman interviews leaders in the business, nonprofit, and philanthropic sectors, discussing topics like community investment, cause marketing & individual giving. It's a great show with a lot of great personalities and a ton of useful information, and we were really excited to get invited for an interview! Val spoke at length about scrappy startup nonprofits and the potential for great partnerships with small businesses. Listen to the recording below for the whole show, or read on for key points and listen later!
Michael Chatman Giving Show, May 19, 2011
What Should New Nonprofits Know?
There are 1.56 million nonprofit organizations in the United States. The first question to ask yourself is: do I really want to do this? It's important to consider whether or not you want to be a nonprofit administrator because it's a lot of work, and if you're interested in hands-on work at the front line, running a nonprofit may not scratch your itch to serve the community.
As a new nonprofit, there are a few things that need to be done right from the start:
- Be strategic about what you're doing: have a strategic plan and know how you fit into the overall landscape.
- Have a marketing plan: though marketing is something a lot of nonprofits initially recoil from, it's an important part of success. Marketing isn't just about sending out flyers and securing PSAs. You need to know your strengths and weaknesses, the opportunities in your area, and the threats to your existence. Don't have a plan? One of Atlanta's Experts in Residence, Susan Burnash, wrote a 12-step series to help you do it yourself.
- Know who your competitors are and how they can become your collaborators: funders are investing in a variety of different sectors, and don't want to duplicate their investment by funding two organizations that are doing essentially the same thing. Part of being a good steward is helping funders best leverage their dollars.
Another important part of growing your new organization is to differentiate yourself by being strong: have a good case for support and be investment-worthy. In addition to your strategic and marketing plans, take a look at your business plan--is there some aspect of your services or intellectual property that can be packaged and used as a revenue stream? For the first 3-5 years, most organizations are not eligible for foundation or government funding, but earned revenue is always and option, and makes a great case for support to funders later: your organization is financially strong.
Creating revenue streams outside of donor revenue requires a different skill set, and that's where your board development plays an important role: nonprofits want business executives and foundation leaders on their boards but often leave out another important group of people, small business owners. Don't forget about small business owners! Like your organization, small business owners are scrappy: they are trying to make a small business work in the same way that you are trying to make a small enterprise work. This takes creativity, innovation, and good understanding of entrepreneurialism, and having that kindred spirit on your board can help you figure out where your organization needs to go. It's not always about getting a check; it's about investment.
Another source of revenue can be found in small business partnerships. There are many ways that organizations and small businesses can form mutually beneficial partnerships, and in the interview, Val discusses local, scrappy nonprofits who pulled in young entrepreneurs over 20 years ago and have both risen in the community as a result. She also empasized the gift of branding opportunity that nonprofits can provide, citing the branding lift that Avon got from the Breast Cancer 3-Day Walk over 10 years ago when it first started. Nonprofits can also provide businesses with exposure to potential clients or customers in the demographic and psychographic groups that the businesses want to reach.
Small nonprofits can be especially good investments for small business because while a $5,000-$10,000 sponsorship might buy a table at a larger nonprofit's event, that same gift is much more significant to a smaller nonprofit and will therefore get more exposure for the investment and a better change to build relationships with future clients. These benefits are great for small businesses to know in deciding what to do with their philanthropic money, but they are also important for nonprofits to know when approaching potential small business partners.
All of this great information (with more elaboration) can be found in the first half of the interview, so be sure to listen on for more about the following:
- Starting a foundation vs. a donor advised fund, with suggested resources: the Foundation Center, local community foundations, and the Southeastern Council on Foundations
- Whether it is still possible to find seed money in the current economic climate.
- Other suggestions for working with small businesses
- Examples of earned revenue: it's not necessarily about manufacturing a physical thing, but usually more about information and intellectual property.
Enjoy the show, and thanks again to Michael Chatman for the opportunity!
--Elyse Klova, Program Associate, Foundation Center-Atlanta
via atlantablog.foundationcenter.org
Recent Comments