Newsworthy...

There is good news, and these articles from various sources prove it. Click on the headlines to read more!

01/12/2011 Stock Market Review
ADP Donates $500,000 to Feeding America; Helps Provide Millions of Pounds of Food to Hungry Americans
PR Newswire CHICAGO, Jan. 12, 2011 /PRNewswire-USNewswire/ -- Feeding America, the nation's largest domestic hunger-relief organization, announced today that ADP®, a leading provider of business outsourcing solutions, has donated $500,000 to help fight hunger in America.

01/11/2011 -  The Business Journals

Opportunity to Double the Impact of Gifts for Feeding America and Boys & Girls Clubs of America Ends January 15 2011 The Holiday Season Has Ended However the Rate of Hunger in America is Still Alarmingly High; Bank of America Program Addresses Issue of Hunger by Matching Donations to the "Gift for Opportunity™" Fund.

01-11-2011 - The Business Journals
Goodwill Helps People Keep More of their Earnings this Tax Season
Goodwill Urges Qualified Individuals to Claim the Earned Income Tax Credit (EITC) ROCKVILLE Md. Jan. 11 2011 /PRNewswire-USNewswire/ -- Working Americans single or married with or without children may qualify for the Earned Income Tax Credit (EITC) allowing them to keep more of what they've already earned.

2011-01-11 Learning Network Blog - NYTimes.com
How Can You Help Others?
Some teenagers have drawn on their natural curiosity and concern for others to do charitable work. How do you give back? The latest edition of Education Life included an article profiling five teenagers doing good works, including Jason Shah: A few weeks after he took the SAT, Jason Shah realized something.

Pardon the Interruption?

Americans, More and More, Say "NO!"
Study Creates a TV Guide for Millennials & Beyond

Once upon a time, back when gas was cheap, Rock 'n Roll was new, and the sun was always shining, there were only three television stations to choose from. It was called " Broadcast TV." Everyone watched. And everyone watched the same things. Hour by hour, day by day, everyone had the same three sitcoms, dramas, or game shows to choose from.

Back then, TV was beamed from a big antenna at the broadcasting station (forget webcasting for a moment - that's still decades in the future). A small wire antenna on your house received the television signal, and you settled for whatever quality of reception you had, even if the picture was scrambled and tumbling in static.

Back then (and until very recently, really) television was the perfect medium for what is known as "interruptive advertising." Commercial breaks of 60 seconds or two minutes were not only tolerated, they were expected. "A word from our sponsors" was the price we paid for being able to watch TV for free.

Artifacts of this era are the highly anticipated annual Super Bowl commercials. The advertisers understand that you don't have to watch the commercials. Heck, you've got TiVO.

Hence, the level of creativity and budget invested in the advertisements is enormous.

From a non-profit's point of view, of course, the notion of a Super Bowl ad is absurd. In fact, the fiscal responsibility non-profits must show puts most advertising out of reach.

Even when using Public Service Announcements, return on investment must be calculated, in terms of eyes viewing your message. The financial and human resources you've invested in production and distribution must be reconciled with annual budget.

In any case, any discussion about television advertising may be pointless. A new research study by SAY Media, IPG Media Lab, TRU and comScore has revealed how media consumption trends and behavior are changing.

The research indicates "56 million 'Off The Grid' consumers are slipping past advertisers." These "Off the Griders" are removing themselves more and more from live broadcasting, through DVR, DVD, and online content. Consequently, these consumers are also removing themselves from television advertising.

Following is a snapshot of some of the findings, published by TRU, a pioneer in youth market research (Click here to see the full press release):

• Online consumers are increasingly more difficult to reach through live television, because one third of the adult, online population in the United States - according to comScore, nearly 56 million people and growing - are "Off the Grid" of live TV.
• The ease of skipping commercials presents the opportunity to decide whether it is easier to avoid interruptive ads or tolerate them.
• KEY FOR NON-PROFITS: The "Off the Grid" population is educated, digitally focused, connected, engaged and influential.
• Within the Off the Grid segment, consumers can be further categorized into the sub-groups of On-Demanders and Opt Out:
• 20 percent of online consumers fall into the On Demander segment. All watch less live TV than they did one year ago. On Demanders access video through a variety of devices that allows them to time and location shift to meet their busy schedule.
• They own an average of 5.4 devices for watching video, including TVs and computers; almost half subscribe to Netflix; 40 percent own video-enabled mobile devices like smartphones or iPads.
• Time and device shifting allows this group to consume 30 hours of video each week - compared to the Internet average of 25 hours per week.
• This group (which is educated, digitally focused, connected, engaged and influential) is the most turned off by intrusive, repetitive advertising.
• 13 percent of online consumers have completely Opted Out of live television and get their content by streaming across devices, through their DVR or on DVD.
• 90 percent does own a TV.
• This group skews younger, with 30 percent falling into the 18-24 demographic.
• Opt Outs consume 21 hours of video content in a typical week - half of which is online.

This study vividly illustrates the character of the Millennial segment everyone wants to reach. It also reflects the nature of Gen Xer's and many Baby Boomers. The "educated, digitally focused, connected, engaged and influential" of each of these generations is likely to figure large in the On Demander segment, as well as the Opt Out.

So, how does a non-profit use this information to its advantage? Is the captive audience represented by print media suddenly looking better again? Are online banner ads more attractive? How about "product placement" of your cause, within the content of a popular drama or sitcom?

I'd like to hear about how your organization is using "new" and "traditional" media, to communicate your message. Email me at RGondella@CauseWare.Net.

Cause Marketing Gets Hotter!

EMarketer and The Chronicle of Philanthropy are reporting new research done by Cone Inc., indicating that cause marketing is not only gaining ground, it is a force to be reckoned with. According to Cone, "forty-one percent of Americans say they have purchased a product in the past year because it was associated with a social or environmental cause (41%), a two-fold increase since Cone first began measuring in 1993 (20%)."

If your organization has been working to develop strategy on how to attract millennials, you should know that Cone's research shows "millennials (18-24 years old) ... shop with an eye toward the greater good. Ninety-four percent find cause marketing acceptable (vs. 88% average) and more than half (53%) have bought a product benefiting a cause this year (vs. 41% average)." Millennials wield about $200 billion in annual purchasing power.

And, the news gets better. Across the full spectrum of demographics, "A full 83 percent of consumers want more of the products, services and retailers they use to benefit causes."

So, what does this mean to a charity or nonprofit? It's not just charities and nonprofits that want to link with millennials, women, and other strategic demographics. Retailers, manufacturers, the service industries, and others ALL want a piece of the "hot" demographics. So what brand characteristics does your organization have that would allow you to partner with a retailer or manufacturer?

The benefits can be significant:

• A new revenue (or gifts-in-kind) stream from the corporation.
• A robust public education campaign, raising awareness of your organization and the need addressed.
• Additional revenue from consumers who want to support your organization through purchases.

A few whiteboard ideas...
First of all, you don't have to be big. It may seem that national charities with well-known brands have an easier sell for cause marketing. But there are factors in brand management that make cause marketing problematic at all levels.?Here are three hypothetical scenarios from which a case for a cause marketing relationship could be made:

• Local provider of Pre-K care and education in a town dominated by a multi-shift manufacturing plant.
• Regional cancer research and prevention organization, as National Breast Cancer Awareness Month approaches.
• City-wide housing provider, when new home sales are good - or bad.

Each of these scenarios offers an opportunity for cause marketing. The manufacturing plant might want to donate a room at the Pre-K facility, in exchange for displaying your logo in the plant or on their products. Or they may want to bring your organization into the plant, as a service provider. The manufacturer knows this can lead to greater employee satisfaction, which improves employee morale and production. And, as the word spreads, the community will be inclined to support the product - and your organization.

The regional cancer research organization should think about partnering with a regional convenience store chain, or speak with the regional manager of a national chain. Hang cut-out pink ribbons in the store for a donation, or sell car magnet pink ribbons, with all proceeds benefiting the charity. The retailer knows that a hungry, thirsty family driving back from the soccer game, the family is more likely to stop at the convenience store that is involved in the community.

Organizations providing housing and shelter know the power of local builders. And the builders know the benefit of having their company name associated with a good cause. Whether they donate materials, time and labor, or a complete building will depend upon how housing sales are doing. Builders understand, though, that marketing when the economy is down is crucial to creating a rebound in sales when the market turns around. 

And there are few less expensive ways to market in a community than volunteering or donating unused materials.

Still, making a cause marketing pitch can be a delicate operation. The discussion calls for diplomacy and timing. If you'd like help making the case, CauseWare.Net can help. Contact Rick Gondella by email at RGondella@CauseWare.Net, or by phone at 571-209-7772.

Social Networking Sites: Promoting FaceBook and Twitter Pages Via Your Website

Recently, I have been following a discussion on LinkedIn titled “Company Website vs. Social Networking Sites: What do you think of companies promoting their FaceBook and Twitter pages vs. their company websites?”

It’s an interesting discussion. A comment that I particularly liked came from a fellow named George Harben. George is CEO at the Clarksville, Tennessee-area company Harben and Associates, which is an economic development consulting firm specializing in research, project management, and marketing.

Here’s what George had to say on the topic:

[Companies promoting their Facebook and Twitter pages vs. their company websites] makes a lot of sense. Social networks and websites are both important components to a company's promotions efforts. Websites are like a company library. You can find historical and current data on a company. An example would be past annual reports, press releases and financial data. Social networks are more like conversations. A post can be handled immediately. One unique attribute of a social network is the ability to customize the network site to group. I have noticed Ford Motors has several network sites. Examples are Mustangs, trucks, green, etc.

 And, here is my comment:

The coordinated efforts mentioned above do make a lot of sense. The corporate website as the "library," supported by the "periodicals" of the Facebook pages is a particularly good insight, I think.

However, the aligned social media component cries out for an "affinity" aspect -- the Mustang fan page, in Ford's case, is a great opportunity to develop an interactive relationship with many good customers, simultaneously. And, those "good customers" can supply much of the content.

And, a company like Toyota ia presented with the opportunity to mitigate the bad press of the recall.

The "affinity factor" is key, though. It seems to me that Facebook presence for Proctor & Gamble or Walmart might be more just an online advertising circular, unless it was tied to some particular community outreach (which, by the way, both entities are very good at.)

Which brings me to my own area of expertise: Charities and other non-profits can benefit greatly from Facebook and LinkedIn. The problem non-profits have is setting aside the resources, both material and human, to create and execute a well-planned strategy...which is where CauseWare enters the conversation.

My opinion is that charities and non-profits should use Facebook and Twitter as extensively as is practicable – but only as a “friend-raising” tool. Neither Facebook nor Twitter have been proven to be effective fund-raising tools, yet.

Companies can use Facebook and Twitter, too – beyond the affinity groups of Mustang owners and fan groups. Companies should use Facebook as a moderated channel to allow employees to express thoughts, feelings, and opinions about the corporate social responsibility, about needs within their own communities, and about how the company is doing in the public eye, generally. A company that can do this fearlessly can benefit immensely. This sort of open – but refereed – discussion can tell a company a lot about itself, even as it learns about employee and community needs.

Recurring Gifts: A Recession-Resistant Plan B?

With workplace giving season approaching, I think it's a good idea to keep in mind all kinds of recurring gifts -- not just those given by payroll deduction. Allowing donors to give a little at a time over a longer period can mean a more robust revenue stream for charities.

With this in mind, Here is a re-post of an article I wrote in June.

In 2008, Americans gave about $307 billion to charities. As usual, the largest component of charitable contributions was individual giving, estimated at $229.28 billion, or 75 percent of the total. Though this is a decrease of 6.3 percent (adjusted for inflation) compared with 2007, it's still a healthy number, don't you think?

According to Giving USA Foundation, giving in 2008 was 2.2% of gross domestic product (GDP), which was almost as high of as a percentage as 2007 (2.3%). Giving USA publishes a report each year on charitable giving. The report is researched and written by the Center on Philanthropy at Indiana University.

All of the numbers aren't in for 2009, but, barring some catastrophic additional plunge in the economy, any way you slice it, giving in America remains strong.

Of course, those numbers vary drastically from charity to charity. The affect of losing a major donor here and there can be devastating, particularly for medium and small charities.

So, in a shaky economy what do you do with major donors? Or any loyal donor, for that matter?

The first thing I would suggest is that you treat them with grace and dignity. After all, it was almost certainly not premeditated on their part that they cannot afford to write the big check.

Recently, I was speaking with a friend who is Director of Development for a fairly large health non-profit. "I want to convert my major donors into recurring donors," he told me.

It makes sense.

For the sake of argument, let's start with a round number -- say $20,000. In a recession it might not be practical to expect an annual gift of $20 K from a donor, even if that donor has a long history of writing the same check every year.

Additionally, let's say your donor is a bit embarrassed at not being able to support you at the same level as in the past. So, instead, the donor, head down, trying not to be noticed, slips off into the shadows, and you lose connection.

We all know the old saying about acquiring donors being far more expensive than keeping them. So here's a strategy:

Give your donor a graceful and dignified exit path that keeps them in touch and on the donor rolls. Be proactive: before check time comes, propose that the donor consider pledging three to four donations over the course of the year. So, an annual gift of $20,000 becomes four recurring gifts of $5,000. And, if the donor's finances don't pan out as hoped, well... one missed donation of $5,000 is a lot better than missing the whole thing. The donor is allowed a graceful way out of the financial obligation, stays on the donor rolls, and you still have funding at almost the same level.

I'm interested in recurring gifts. Workplace giving, recurring credit card gifts, large pledges. These methods of giving allow the charity many more opportunities to connect and communicate with donors. And that's a good thing.

The Importance of Workplace Giving

In 2006, I co-authored a book for America’s Charities that, among other things, traced the evolution of workplace giving in America. A great deal of research went into the book, chronicling our nation’s instinctive reaction to need in our communities.

The earliest documented reference I could find that resembled present-day workplace giving occurred in 1820, in Lowell, Massachusetts. There, a number of women mill workers held “hat passing” sessions on the shop floor, to support local charities.

The greatest similarity between those hat passing sessions with today’s workplace giving campaigns is the absence of restrictions placed on the funds raised. Presumably, when the women distributed the dollars, they did not specify that the funds could not go to overhead, like heating fuel or rent. The money raised was not earmarked for this program or that catastrophe. They were, by and large, contributions that the charity could use for whatever was needed.

That is the greatest benefit to charities of workplace giving. To the greatest extent, dollars raised through workplace giving are unrestricted. The charity can use this flow of revenue to keep the lights on, to keep good staff on-board, to make sure their doors remain open. Not so, the big disaster relief appeals. Dollars raised for disaster relief had better be spent on that disaster, or the charity will be faced with disappointed donors.

There are a number of other benefits of workplace giving campaigns, too. Here’s what the American Heart Association has to say about workplace giving:

The Workplace Giving Campaign is a unique workplace giving program designed to empower your employees by offering them a choice in the nonprofits they can support. Employees want to be able to choose what charities they will support and are more satisfied with a workplace campaign that gives them this option. Such campaigns achieve greater participation, satisfaction and overall contributions. Giving also allows your company to brand the campaign as your own.

This is a mixed blessing, however. On the one hand, the company is encouraged conduct a campaign. On the other hand, the company is also encouraged to present a broad range of charities, reflecting the desires and needs of the employees. That means that your charity is, to some extent, “part of the pack.”

Now is the time to begin differentiating your charity, positioning your charity for your best exposure in this year’s workplace giving campaigns.

Here are some tips:

• Look to see how you can leverage your existing relationships with employers and donors. Are there employers you know who might make your charity the “Featured Charity” of a workplace giving?
• There may be charities that are delivering services similar to those provided by your organization. What are the primary differentiators (i.e., age group targeted, region with the greatest impact, etc.)?
• At a secondary level, what does your organization offer that similar organizations do not (educational materials, volunteer opportunities, community awareness outreach)?
• How can your volunteer opportunities be re-purposed to bring new workplace donors on-board?
• Look hard at being a leader in workplace giving. If you begin, or deepen a relationship with an employer, the opportunities are increased for your organization to be a driving force in the campaign. And there are special benefits that accrue from being at the planning table – benefits that are not always measurable. Some data that I’ve seen indicate that organizations who have presence in the planning process of a campaign garner significantly greater marketshare.

Here are some bullets, again from the American Heart Association, for talking about the benefits of a workplace giving campaign:

Employee Benefits:

• Increased morale.  Providing choices enhances employee morale, commitment and retention.
• Satisfaction.  Allowing employees to choose increases their satisfaction and participation in company giving.
• Involvement.  Including employees is a powerful way to link their own and your company's interests.
• Ease.  Making payroll deductions to support charities that employees care about is simple.

Company Benefits:

• Demonstrated commitment.  Company-branded campaigns demonstrate to employees and customers that community leadership is a company priority.
• Increased giving.  Case after case shows that when employees are given options, participation rates increase.
• Improved morale.  When donors can make a difference to a cause they care about, everyone wins.
• Greater efficiency.  A giving campaign allows for a payroll deduction program.  That's easy for your employees and allows more money to go to the nonprofits and less to campaign administration.

Charity Benefits:

• Education.  Participating nonprofits can more effectively deliver workplace education and assistance to your employees.
• Lowest fundraising cost.  Company-owned campaigns let more money go to the organizations and less to administer the campaign.

CHARITIES: Workplace Giving Season is Upon Us… Are You Ready?

Workplace giving is an important source of unrestricted funds for nonprofits – dollars not earmarked for special projects or programs, but that can be used to keep the lights on, keep good staff on board, or fund new programs and initiatives.

Labor Day marks the traditional kick-off of workplace giving in America. The Combined Federal Campaign [CFC] is getting under way, various campaigns in the private sector are gearing up, and many state, local, and municipal government campaigns are going full speed ahead.

What do you need to do to be ready?

• This is the one time of year that you MUST put something on the front page of your website -- even if it’s just a link to a subordinate page – to let donors know they can support you through workplace giving. Something along the lines of “You can support YourCharity through the CFC and other workplace giving programs. Click for more information.”
• Arm yourself with “success stories.” Potential donors want to know about more than the need. They want to know that there is a solution.
• Do you have a mailing planned? By now, you should have a list of all of your workplace giving donors from last year, who requested an acknowledgement of their gift. This is a good time of year to get a postcard out to them, thanking them again, and reminding them to support you this year.
• Perfect your elevator speech – you should be able to describe the benefit to the community of your organization in less than 30 seconds.
• Be prepared – or have someone on staff prepared – to go to workplace giving campaign events to speak about your organization.  Campaign coordinators have a lot on their plate. You can help them make the giving program engaging and fun by being available to give a presentation.

Get ready, get set...