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Posts Tagged ‘business’

27.1 million golf players ….. and you without a tournament?

In Retail ideas, strategic planning on June 16, 2011 at 9:17 am

Golf is in the air.  TPC, US Open and your local favorite charity.

Golf has become big business for nonprofits.  At one time,  I lead my staff through more than forty-two… 42! …annual fundraising golf tournaments. Most were third party events, lead by dedicated- borderline maniacal- golf enthusiasts.

People take their golf very seriously. According to the National Golf Foundation’s 2010 golf participation study, there were 27.1 million golfers in the U.S. in 2009, where they played 486.2 million rounds of golf, at over 15,890 golf facilities. According to a report by SRI International for GOLF 20/20, the total size of the U.S. golf economy in 2005 was just under $70 billion, not including equipment and related purchases.

Those are some serious numbers.

Which is why charities should take their golf seriously too. 

If you haven’t already, consider developing and leading a strategic golf initiative at your organization. Gather the expert, and not so expert, enthusiasts within your volunteer ranks and task them with developing a vision, a charge and a strategy for incorporating more golf into your revenue stream. Ask them to focus on making this effort turnkey or low cost/high return. Your empowered base of greens-walkers will be instrumental in designing a program that captures some of the lucrative trends in the industry. Be certain your plan contains a method of resourcing the effort as well.

The success outcomes from this approach?

  • Expanded volunteer and donor base
  • Reliable new revenue stream
  • Substantial increase in community buzz
  • New executive and corporate relationships
  • Broad dissemination of your mission and programs
Here are some helpful websites to get you “on course”  (lol, you didn’t think I could go a whole post without an awful pun, did you!)
GolfLink: A database of golf tournaments

GolfRegistrations.com: This site has valuable freebies to help you get started on your own tournament

 

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers: NPO

In change management, Discussables, Research, strategic planning on April 13, 2011 at 8:07 pm

INFLUENCES ON THE NOT FOR PROFIT SECTOR

The recession was a wake up call.

Many nonprofits were left high and dry when their sole funding stream, gov’t line items, grants or contracts, began to disappear. Many scrambled to pressure the feds, others sought funding elsewhere. Some sadly closed up or, if they were lucky, merged with a similar organization.

Relying too heavily on one form of funding is a death knell. Diversifying funding is essential to nonprofit sustainability. In the recently released 2010 Nonprofit Fundraising study by the Foundation Center, organizations raising over $3MM annually did so because of their diversified funding streams. Over seven different funding vehicles were used by over 73% of those in the $3MM plus group. How many funding streams are you accessing right now? Corporate giving is an important part of those streams.

Another influence on nonprofits, peeking their interest and attention toward new corporate philanthropy, is the overwhelming BUZZ on corporate social responsibility, which has not been missed by these organizations. This is making them question their approach and strategy and reformulating to meet the new corporate perspectives. Additionally, many nonprofits are now finding themselves being denied funding from previous corporate partners, many of whom they relied on for significant help, because the companies in question are realigning their giving in a more unified and strategic fashion with their CSR model.

Finally,  bad information being disseminated and lack of research on corporate giving among the nonprofit sector has a negative influence on our thinking and planning.  Corporate giving is not about marketing.  Neither is it influenced by an ‘obligation’ the company feels to society.  And if we went off and approached our corporate partners with this in mind we would be dead in the water before we got to the closing statement.

It is an investment, not an obligation; a partnership, not a market approach. And it is directly tied to their business goals.

Up tomorrow: Defining Corporate Social Responsibility to understand process, policy and approach

SHIFT- Meeting Corporate Philanthropy Where It’s Headed- Influencers: CSR

In change management, Discussables, Research, strategic planning on April 11, 2011 at 6:01 pm

THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY ON CORPORATE GIVING

You’ve heard me use the term Corporate Social Responsibility (CSR).  It is the increase in the number of corporations attemping to define and implement their CSR that is also influencing corporate philanthropy.

Corporate Social Responsibility is not a new concept. It actually has been an ‘activity’ of corporations for over 100 years. We’ll explore its roots a little further into this series.

But it is the phenomenal growth of CSR over the last twenty years, both in number of companies embracing its tenets as well as companies creating a more deeply integrated CSR strategy in their business model, which has been a driving force in the way corporations are defining and implementing their philanthropic activities. Essentially, CSR is a strategic shift away from ‘giving to’ charities, toward  ‘investing in’ opportunities with charities, opportunities that align with their business goals.

What used to look like this: A corporation giving in a variety of ways to a variety of causes that were defined primarily by societal and community pressures…



Begins to look more like this: a turning inward to investigate the corporations basic social, brand and financial benefits and then identifying a unified cause that aligns and supports beneficial outcomes to those measures.

Does this mean there is less for us?

Absolutely not, the amount of corporate giving is increasing, its just the segments in which we will be viable partners are different.

Hear from Jerry Lee, co-founder of Newton Running, talk about his desire to express social responsibility through the vision and mission of his companys philanthropy.

Up tomorrow: Influences on Nonprofit Organizations in seeking more sustainable corporate funding.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers

In Discussables, Research, strategic planning on April 8, 2011 at 2:59 pm

THE INFLUENCE OF BUSINESS CRISIS ON CORPORATE GIVING

You may recall that BP nearly wiped out the Louisiana and Florida coasts last year following the Deepwater Horizon oil disaster. Over the course of weeks over 200 million gallons of oil spewed into the Gulf of Mexico. The disaster may have been one of the worse ecological assaults in history.



Ultimately, BP was assailed but not defeated by the oil spill. Their stocks plummeted, protests and boycotts ensued, heads of divisions lost their posts.  But BP weathered through, their stocks rebounded and their reputation is slowly and delicately on the mend.

In their favor was over 25 YEARS of brand management through Corporate Social Responsibility. At a Corporate Social Responsibility Conference at Boston College Center for Corporate Citizenship in the early 2000’s, BP was a highlighted  speaker and won awards for their ecological philanthropy programs. We might laugh now, but that investment saved them from collapse.

The need to build emotional trust, a bank account of goodwill with society, is an important strategy in corporate governance and a significant influencer on a corporations philanthropic efforts. This bank of trust will allow the company who has been the cause of, or has exacerbated, a crisis, to make withdrawals and weather it through.

Bad business will happen, and that knowledge drives corporate giving.

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers

In change management, Discussables, Research, Training on April 7, 2011 at 8:28 am

THE INFLUENCE OF GOVERNANCE ON CORPORATE GIVING

In addition to the shifts and perspectives being discussed and implemented in the business academic world, we see advancement in environment surrounding business governance as well.

ISO 26000 was implemented September 14 2010. For those not familiar, The ISO –a network of the national standards institutes of some 160 countries that develops and coordinates standards of operations for business lines. The standards govern management of Quality, Risk Environmental and now Social Responsibility. Simply put, these standards are applied to a company’s business practices, who actively engage in pursuing compliance. When they do so, they are awarded an ISO brand of approval for achieving and maintaining these standards. These are highly coveted and companies who achieve them make them visible.

In the words of the ISO itself “The world demands social responsibility. ISO 26000, the first internationally approved standard to provide guidance on social responsibility, is a global response to this global challenge.”

The ISO 26000 is intended to outline for companies:

  • concepts, terms and definitions related to social responsibility;
  • the background, trends and characteristics of social responsibility;
  • principles and practices relating to social responsibility;
  • the core subjects and issues of social responsibility;
  • integrating, implementing and promoting socially responsible behavior throughout the organization and, through its policies and practices, within its sphere of influence;
  • identifying and engaging with stakeholders; and
  • communicating commitments, performance and other information related to social responsibility.

This is the first time an organized set of standards has been produced and disseminated for companies to follow. Thought leaders believe this will be game changing for companies in strategizing and developing their social responsibility.

ISO 26000 is a response and a governance influence on corporations. IN part it may stem from the multitude of influencer’s outside the corporate circle. When JP Morgan Chase investors assemble to vote on a “Genocide Free” investing policy for the company, the pressure to conform and perform to standards is undeniable.  Loss of trust by the consumer, civil society activism and Institutional investor pressures, all bear significant influence on corporations today.

VIDEO: Highlights on ISO 26000 from inside sources            

SHIFT: Meeting Corporate Philanthropy Where It’s Headed- Influencers

In change management, Discussables on April 6, 2011 at 10:56 am

THE INFLUENCE OF CORPORATE THOUGHT LEADERS ON CORPORATE GIVING

Corporate philanthropy has seen some radical shifts in the last twenty years. We may just now be drawing concern about what is happening, where it is headed and how do we stay engaged as these changes evolve?

To understand the shifts as they appear, we need to look at some key factors, one being influences on the corporate sector.

Let’s take a look at thought leaders in business and how their rockstar status and larger than life influences have impacted the patterns we are experiencing with corporations as they support causes and charitable efforts.

No conversation about corporate giving could be complete without a reflection on the impact of Milton Friedman.

Milton was a Nobel Prize winner in economics. He was a distinguished professor at the University of Chicago. He was the author of the classic best-seller Capitalism and Freedom and a long-time Newsweek columnist.

Milton Friedman was one of the greatest and most influential economists in the 20th century. This certainly qualifies him to be considered a business rockstar. He was also an unapologetic curmudgeon, an outspoken and controversial thought leader on all things business.

He was vehemently against corporate social responsibility as an obligation of business. He held that giving by a publicly held corporation in the name of “social responsibility” was a form of theft.

But Friedman was not against all corporate giving. Corporate philanthropy could be justified if it served a business objective—improving employee teamwork and motivation, strengthening the marketing of a company’s brand, enhancing financial outcomes. He also had a less emphatic position on giving by privately held companies. He thought that was a decision best based on the individual or family owning the company, as it was their money to give away.

Milton was a multi-dimensional man. Besides being a powerful voice in the business sector, he was also a great philanthropist and a tremendous advocate of philanthropy.  He was not alone

Alfred P. Sloane, another uber-chief of corporate discipline, he was born in New Haven Connecticut, educated at MIT and graduated from there in just three years, as the youngest member of his class. Alfred was a long time President and CEO of General Motors, resigning to remain as their board chair until the late 1950’s.  He steered the corporation through some tenuous and deadly years of bad business, Nazi allegations, and revenue slumps.

He was not as eloquent a man as Milton, but he too felt philanthropy had no business being tied to business. He simply stated “The business of business is business.” And like Milton he was a prolific philanthropist. Because of his personal generosity, his name today is on buildings and foundations across the nation, from Sloan Kettering in New York City to the Alfred P Sloan Foundation, whose assets currently reach about 1.8 billion dollars.

Why is it important to have knowledge of these two giants of industry? Why should we abandon our cynicism and try to comprehend their position on corporations and giving? Because every MBA student leading or preparing to lead companies today, have at their hearts, minds and training, the words, vision and example of Milton and Alfred. And it is with this training today, that they are approaching the development of corporate giving strategies.

The apparent disunion in the perspectives of these two gentlemen, when it came to business and philanthropy, is at first perhaps perplexing. But it is not unusual. Their beliefs still hold true today.  Whether you agree or disagree with their perspectives, these men continue to have tremendous influence on the culture of business through their legacy.

On Hiring a Consultant

In Retail ideas on June 14, 2010 at 4:16 pm

You’re experiencing problems in your organization. Maybe you’re losing donors. Maybe your board is not working together, not working at all, or maybe you’ve lost board members. Perhaps you are experiencing high turnover of staff. Or maybe you don’t think you are getting as much out of your staff as you think you should.

Or maybe you’re just not making enough in philanthropic revenue as might be possible.

What ever your reason, you’ve begun to think about bringing in a consultant to help fix it all.

So what’s next?

BEFORE THE HIRE

Before making a phone call and sending out an SOS, get your thoughts in order. Get on paper answers to some of the following questions:

  • What are your problems ? (what are you seeing and why do you think they exist?). Categorize if more than one or two exist.
  • What do you expect to accomplish by bringing in a consultant?
  • What are you specifically interested in having the consultant do?
  • What outcomes would you need to see, that states “Job well done”?
  • Do you have enough staff resources to support this endeavor?
  • How long do you have to accomplish this?
  • How much financial resources are you willing to spend on this?
  • What financial resources can you commit to spending on this?

Having a thought out plan to share with the consultant will help in delineating if they can help you, and if they can, what areas might be the focus and what resources can be allocated.

THAT FIRST MEETING

You’ve made the call, maybe a few calls, to consultants that came recommended. Having recommendations from colleagues, other organizations, membership groups you might be a part of, board members, volunteers, donors, etc is a pretty important part of the process. It’s not a good idea to open the Yellow Pages to C for consultant. There are plenty of people out there who have used a consultant that they will either rave or ravish. Reach out and get those names.

So now you have a few meetings lined up to review your problems with some consultants. The purpose of this first meeting is twofold: Do they have the capacity to help with the problems AND are they a good fit with you, your board, your staff, and your organization. Finding the right fit is actually 99% of what will make or break your experience. No need to fret over whether you go large or small, with regard to the size of the consulting firm, right now. Get a good mix of both to sit with you and review the issues. It’s your time to decide if the person they send is a match. In rare cases, during a really good economy, large consulting firms may not be interested in your issues if they do not feel the value of the contract is worth their time. In today’s economy – 2010- we are seeing much less of this.

It’s a good idea to send your cheat sheet, as developed above, out to each consultant ahead of time. If you’re not comfortable sending financials regarding what your budget is, simply put a range in, or indicate you have a financial pro forma developed that will be shared at a later discussion.

REVIEW OF PROBLEMS

It’s important that the consultant has a good understanding of what you are experiencing and why you think it came to be- it will help them feel confident that you have a good grasp of your business and that you are prepared to be an active part of the consulting process. It also helps them to begin to determine what services and programs might be helpful to your organization, who they might need to bring in, how long it might take.

Be prepared to share info on the details of other areas of your organization. You might not think them relevant in the moment but a well balanced organization is all connected- like a skeleton- so if one part of the organization is experiencing difficulty, it may be directly related to another part not working well, but totally overlooked. For instance, if you are a nonprofit medical facility, and your growth of annual donors is down or stagnant, the consultant may want to hear about your patient base: how many, where from, what socio-economic area, how you are connected in any way.

Set aside about an hour and a half for this first meeting. Really be willing to offer insight and ask questions. Aside from some general questions such as experience, past clients, success stories, size and scope of firm, other firm professionals, be ready to ask some more specific questions as well, such as:

  • What would you indicate is your firms (or your) area of expertise. (Two or three areas are the norm. If they rattle off a laundry list, beware).
  • Will you teach us to do this work ourselves? Will you provide templates for us to carry on with out you?
  • Do your recommendations frequently require the client to purchase a program, service or product from you or from someone you recommend?
  • How many clients do you normally work with at one time? Will you return phone calls or emails the same day? Do you require administrative support from us?
  • What kind of documentation will you give us when the project is completed? Who will own that documentation? Will you sign a confidentiality agreement?

This first meeting is all about the fit and the details on your needs and their ability to meet those needs. It is NOT the time to talk money. Asking a consultant “what would you charge to do this” is like asking your doctor “what is the diagnosis” before he has even done an exam.        The consultant needs time to process the notes he or she has taken (he should be taking notes) and to review some possible scenarios with his team or by himself.

What you should ask for is a written proposal for consulting services. This will usually follow up the first meeting by about 5 business days (a hungry, confident firm will get it to you in two days). The proposal should outline: Background (yours and theirs), scope of work, and approach to the work, timeline and terms. Feel free to offer a template to the consultant if you want to have all of the firms you spoke with bring you similar data you can compare. A template is offered free for download at our website www.harvestdevelopmentgrp.com

FOLLOW UP

Before the meeting ends, ask the consultant if there is anything else they might need from you to get the proposal in by X (give them a date). Also leave them with a contact person, if other than you, to answer any further questions they might have. Ask for the same in return.

When reviewing the proposal, make sure they have captured all of the information on the issues you revealed to them. They should give you insight into some possible causes that may have been unknown or overlooked. The proposal should also provide detailed information on what specifically they will be doing, what they will be providing by jobs end and what tangible benefits should be received by your organization as a result of their consulting services. It should also indicate what resources you will need to provide, what they will bring to the table and what they will want to access during their contract to manage the work you need completed. Finally it should give the costs, broken out by sub contract if more than one area needs to be addressed, the timeframe for completion with milestones, and the terms for payment.

Recently, we have seen nonprofit consulting firms take up a practice long used in marketing and advertising agencies: the packaged product. These consulting firms have a one size fits all process that they will want to use in working with your organization. The packaged product usually has a catchy name, “The Advantage Solution” or “Copernicus Planned Giving Strategies”, and is trademarked for their firm. Avoid these like the plague. These packaged products are meant to raise the profile and the brand of the consulting firm, but do little to address the core needs of the organization they are supporting. Like the McDonalds or Burger King of nutrition, you might enjoy the process, but in the end your organization will not be nourished.

HIRING

The process is complete, and you have found your consultant. Congratulations!! Be sure to run their contract by your legal advisor before signing. Make sure you are knowledgeable about their payment expectations. List out a series of reports and touch points that you will want to see during the process. Introduce them to your board and staff. And off you go!!

Report: Tour of Missouri needs fiscal policy guide – Kansas City Star

In Discussables, News on October 24, 2009 at 9:53 am

More stories hit the media on financial accountability and NPO’s. Is there an organization out there that can take this 600 pound gorilla on? A group needs to convene to research and make recommendations on what policies and oversight should and could be occurring to ensure donor rights and advocacy of respectful and honorable use of donated funds.

Report: Tour of Missouri needs fiscal policy guide – Kansas City Star

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Philanthropy as business

In Rants on July 18, 2009 at 11:17 am

Too often we are drawn to think about philanthropy and charities in terms of a softer, kinder model, less business focused. Because the product is not widgets, financial gains or consumables, but human caring, it is tempting to believe the business of philanthropy is just as soft and touchy/feelie.
Don’t get me wrong. I’m not being snarky about the work of charities. My heart is where they operate. I can think of no greater calling than to be working to help mankind. Truly. And I also believe that working to help mankind is not solely relegated to charities. Many businesses in the course of their work can, and have, effectively positioned their business model to acheive gains in their financial standing AND help mankind.
And so I believe charities can balance that concept as well. By this I mean, charities can help mankind and acheive significant financial gains. To do so, we need to think like a business. Just as business needs to think like charity to acheive their mutual ends.
A melding of concepts, could this be an evolution for two very seperate frames of thought in the MBA world?