Commercial Companies Should Take a Lesson from Their Nonprofit Cousins
As an industry we nonprofits have never asked the Feds to bail us out like the nation’s super banks or auto companies have, although we have a lot of food banks and soup kitchens that could do with an infusion of money and food to feed those in need. The shelves are getting bare. On the contrary, because of the need for billions to help industry, we’ll probably lose some or all of what we were receiving from the government.
A lot of not-for profit organizations have numerous clients who are without jobs or a roof over their heads after being enticed to buy a house for more than they could afford with a subprime mortgage. They took a stab at moving up the ladder, but they missed their footing and quickly fell back down to earth.
“Subprime” — how the meaning of a word can change. It used to mean that you were buying a lesser-quality steak. Now we’re told that we all have to take a stake in bailing out the banks and mortgage companies who gave out the subprime loans to begin with.
So what are we, chopped liver? The banks, insurance companies and auto makers could take a lesson from the guys who don’t want to, and by law, can’t make a profit. All we’re trying to do is raise some money so we can give it away to those in need – not our top executives.
Congress said to the auto executives: Show us your plan for a turnaround before we’ll show you the money. As fundraisers we have to have plans, otherwise we would be run like an Enron or GM, heaven forbid.
Nonprofits have a natural tendency to be risk adverse, because the funds we raise come voluntarily from generous and caring individuals and some government, foundation and corporate support – all which will diminish. We can’t afford to lose our funds in some get rich-quick scheme like some of our colleagues in the commercial world. The millions we serve would be out of luck if we weren’t there for them. We take our responsibility to those we serve very seriously.
We’re food banks, social and consumer causes, religious organizations and research groups looking to cure terrible diseases. The economy doesn’t depend on us but our health and mental well-being and safety do.
We bring culture and arts to Americans too. Remember the libraries, public broadcasters, opera, dance, theatre and other arts companies. You don’t see the nation’s top ten performing arts directors and museum curators sitting before Congressional interrogators pleading for an infusion of cash so they can bring more modern dance or Egyptian mummies or Bach to the public.
Instead of risk takers we are thorough planners who run our shops carefully and smartly. Out of necessity we learn to squeeze every drop of productivity out of our operating and programming funds. As fundraisers, that’s how we stoke the fires of our enterprises. But now we have to fundraise smarter.
We must get the most out of all the tools and techniques at our disposal.
The same technology boom that fueled the Internet, medical science and advances in transportation has led us to an industry with production processes that make our communications look like personal letters, list segmentation that allows us to talk in different voices to different groups and targeted pricing based on past giving behavior, plus demographics, and psychographics and other mathematical formulae that enhance our prospecting for supporters and revenue.
As practitioners of this mix of art and science, we know that now is the time to explore the techniques that will make our fundraising more efficient and economical. There will be a shakeout in the for-profit world, but we must do what the non-profit world has always done better – do more with less.