5 Things Nonprofits Need to Know About Philanthropy in 2010

I've been to half a dozen panel discussions related to philanthropy in the past few months, and here's what is talking about: the "new normal." What they seem to mean is that philanthropy was rocked pretty hard last year -- along with everything else -- and it will never be the same. But while I don't delight in the tragic losses so many people are experiencing in the economic crisis, I do like it when the status quo goes out the window.

So, what should nonprofits strive for in this period of "new normal" adjustment?

1. Collaboration: Donors need to see their dollar go further, and they want to know you’re not operating in isolation. Trent Stamp, founding president of Charity Navigator and current Executive Director of the Eisner Foundation said that when he first started at Eisner, he plotted every organization making a grant request on a map and couldn't believe the duplication of services that existed in such proximity. It pays to do a reality check (aka ego-check) before your prospective donors do it for you and see how you can share resources with your neighbors who are trying to do something good too.

2. Relationships: Technology is not a substitution for face-to-face relationships, and donors don't want to be treated like ATMs.  While technology can be a useful communication tool, donors want to know you and some of that knowing can only be done in person. It also can't always be done with an "ask" behind it. Donors are people with families and human interests beyond making and giving away money.

3. Risks: The "new normal" is a good opportunity to experiment, but it can be risky to try something new. Jane Pak, CEO of LA's National Association of Women Business Owners (NAWBO) suggests that every year, organizations sit down with their strategic plan and evaluate the risks they are willing to take. Know your options, project outcomes and make strategic decisions. Pretty simple, but are you doing it?

4. Innovation: This doesn't need to mean invention -- you can also borrow good ideas and adapt them for your organization. Noah McMahon, CEO of Anonymous LLC, shared something I really enjoyed imagining. One of his clients adapted the old county fair game where you put someone in "jail" and they have to pay to get out. His client took this idea for a new spin (literally): they stuck their Board members on a carousel with their cell phones and asked them to make phone calls to their friends asking for donations so they could reach their fundraising goal and get off the ride.

5. Messaging: Noah also shared something he learned about messaging from his young daughter. After watching a commercial for a toy she said, "Daddy, I want that." This gave Noah an illustration to break down marketing to its crudest elements: “get people to want things.” Borrow from corporate marketing strategies to get your prospective donors to want what you can provide whether it's less people homeless on the street, more arts opportunities for kids, or more sustainable food choices.

Goodbye status quo. New normal -- I want that.

Photo Credit: *kaetzchen