Tuesday 21 April 2009

Healthy habits for charities in recession

Watching one of my friends training for running the London Marathon got me thinking about the kind of stamina and determination that charities need to run the marathon triggered by the current recession.

My friend has spent the last few months making time to run several times a week. He is very focused despite the fact that he has many family and work responsibilities. He is determined to run well and to finish the marathon in good time. In a similar way, if your charity is to survive in the current climate - determination, focus, careful planning and strong commitment are a must!

If you are feeling right now that such words make you want to run for the nearest armchair then stop and think again. Although my friend is enduring some hardship and pain - the healthy habits he is developing are likely to improve his health, boost his energy levels and well-being for many months to come. That is true also of charities who, being forced to tighten their belts now, are likely to develop healthy organisational habits that can benefit them whatever the economic climate.

So, what healthy habits can be triggered by the current recession?

1. Losing weight - Evaluating the effectiveness of your programmes and operations and making some tough decisions. How about seeing recession as a time of opportunity for making your charity's programmes and operations more efficient?

For example, should you merge programmes for greater effectiveness? Could you combine operations with another charity doing similar work to lower costs, create economies of scale, or leverage best practices across these operations?

2. Becoming focused - Less time in meetings and in 'the land of indecision' - these tough times can be a great catalyst for taking advantage of low cost opportunities to improve internal operations and make it easier for people to work smarter.

For example, mapping out your charity's critical decision making processes and being crystal clear about the lines of responsibility and decision making can dramatically reduce the amount of time spent on long meetings and discussions. The less time you spend in the 'land of indecision' the more likely you are to stay ahead of the crowd and succeed.

Now might be the time to consider establishing cross-functional teams that make it easier for staff members in different departments to coordinate their efforts, make decisions and share knowledge and expertise. Making time to clarify and refine essential work processes can allow everyone to take advantage of best practices and avoid reinventing the wheel.

3. Going for gold - Finally, if you are thinking strategically about the future now is the time to bring into your leadership team someone with specialist skills that you might have not been able to access in the past. Many people leaving the financial and other sectors are re-evaluating what their lives are about and some of them are looking to engage with the non-profit sector. The challenge is to be clear about the skills mix you are looking for and to make sure that you find the right person for the job.

Please feel free to share some ideas and practices your charity is undertaking to stay focused and committed to success at these difficult times.

Thursday 2 April 2009

Triangular pizza anyone? – Outside the box thinking in the new reality

Have you ever tasted an oven baked, piping hot triangular pizza? They are yummy – and not at all different to the good ol’ fashioned round pizza. Only the shape is different – but we have become so familiar to the round pizza we don’t think they can come in any other ways.

The same analogy applies to how we see the purpose of direct mail in fundraising – in the last decade we have done direct mail fundraising in certain ways, going for expanding our charity’s share in the donor marketplace and many of us have been reasonably successful and some even excelled at the task.

But the marketplace is changing, a new reality is emerging and if we are to reduce the attrition rates of direct debit givers and one off donors we should be prepared to move into unchartered territories with a new paradigm for direct mail fundraising.

So, here are a few things to think about as you prepare your charity’s response to the new reality:

If the future of direct mail fundraising is not so much about recruiting as many donors as you can, as it is encouraging donors to stay involved with your cause over a long period of time – what would you do?

What strategies would you put in place to encourage long term donor participation and involvement in your work?

In my opinion, in the next three to five years:

• For most charities, retention strategies will become more critical than prospecting strategies as competition becomes even more intense.

• Donor dialogue and feedback are going to have to become the indispensable marketing tools you use to assist your direct mail efforts.

As a consequence, we will need to ask donors for collaboration with what we are doing through panels and focus groups so that shared interests are developed. In the current climate we can’t afford to mail in the dark and hope for response.

• A new factor that is likely to impact the performance of direct mail is the quality of your relationships with donors in addition to extraordinary donor care services. What kind of relationships do you have with your charity’s donors right now? – If you were in their shoes, trying to balance your household budget– would you continue to give to your charity? – Why?

The best way to find out is to pick up the phone and call a random sample of donors and ask them: what makes them support your work? – Jot down their responses and make sure you incorporate them in your next appeal.

Please feel free to comment on what you are doing to respond to the new reality?