Wednesday, May 19, 2010

The Cost of Innovation


Apparently, charities are an innovative group. An article in the current Chronicle of Philanthropy says “A willingness to innovate, experiment, and evaluate is widespread in the nonprofit world…”

Perhaps it grows out of a need to manage multiple projects and programs, combined with the dedication and determination of the typically small staffs of non-profits. I think so.

When I was with America’s Charities, we developed an online payroll deduction giving system, called Pledge1st. I was a project manager on technology and product development, though my official title was Vice President of Communications, Marketing and Media Relations.

When we were developing Pledge1st, America’s Charities had about 28 employees, give or take, nationwide. We were all doing double duty, in the effort to deliver the best possible customer service to our member charities, donors, and the employers where we administered workplace giving campaigns, as we created this new technology.

Pledge1st remains, today, as one of the three leading providers of online workplace giving systems. And America’s Charities always got the highest marks for customer service.

I wonder if, in the current economic climate, charities can be as willing to be innovative. That same Chronicle article goes on to say “…what’s missing is the money to spread innovative ideas that succeed.”

Pledge1st cost a significant amount to develop. But, in return, it offered significant innovation for workplace giving, developing, in turn, a greater unrestricted revenue stream for America’s Charities member organizations. That unrestricted revenue stream allowed charities to keep the lights on, keep good staff, and administer programs.

Innovation is important – maybe more so in times of economic downturn. Charities can’t afford to lose their edge, or their desire to go to the edge. We need to explore new, cost-effective ways to bring innovation to charitable work and to charitable fundraising.

So, here’s a question: What areas of fundraising would benefit most from new ideas?