Smart Strategies for Small Charities: How to Make the Most of Limited Resources

Tuesday, May 19, at 12 noon, U.S. Eastern time

John Haydon is a sales consultant in Boston and the publisher and founder of the Web site corporatedollar.org, which offers marketing advice to small nonprofit groups. Mr. Haydon is also the author of a recently released electronic book, Twitter Jump Start: The Complete Guide for Small Nonprofits.

Mary Kay LeFevour is a nonprofit management consultant in Tucson, Ariz., and is former executive director for several small nonprofit organizations, most recently at the Society for Ecological Restoration International in Tucson.

Mary Stephens is development director at the Native Forest Council, a small environmental nonprofit group in Eugene, Ore., that works with charities nationwide. She has spent 30 years working for smaller charities in a variety of roles.

A transcript of the chat follows.

Maria Di Mento (Moderator):
    Hello and welcome to today's live discussion. Today we're discussing the ways in which small charities can make the most of limited resources and expand their reach, as well as how small charities can use social networks like Twitter and LinkedIn to the best advantage.

Maria Di Mento (Moderator):
    Our experts this week are John Haydon, founder of the Web site corporatedollar.org, which offers marketing advice to small nonprofit groups; Mary Kay LeFevour, a nonprofit management consultant and a former executive director for several small nonprofit organizations; and Mary Stephens, a development director at the Native Forest Council, a small environmental nonprofit group that works with charities nationwide.

Maria Di Mento (Moderator):
    They will be available for the next hour to take your questions.

Maria Di Mento (Moderator):
    Before we get started, I wanted to issue a couple of quick reminders. First, you are invited at any time during the discussion to ask questions or post comments on what you are reading. To do that, simply click on the "ask a question" link on this page and type in your question or comment. Second, we will be offering a full transcript of this event after it is complete at http://philanthropy.com/live. You are welcome to refer to the transcript in the future -- and to pass it along to others who might find it interesting.

Maria Di Mento (Moderator):
    Without further ado, let’s get started.

Question from Sherri Fenton, traverse health clinic:
    What would you say could be the single most effective way for a little nonprofit providing critical health care services to the most vulnerable in our community to make a splash and join the local 'big engines' who have been doing it for years? (We are a 35 year established clinic and I am their first develpment professional.) The homeless shelters and the food pantries have the funding to be seen everywhere, and we are just getting started. Thank you

Mary Stephens:
    Sherri,

We're 'trying out' the tech access. I answered this question and then I saw it pop back up...

Essentially: Adopt the attitude that you and your cause belong with the 'big engines' - and you will be there. That's how it works.

Question from Narain Bhatia, Nonprofit Net:
    The biggest issue smaller nonprofits face is leadership in hard times. Without practical new approaches there is paralysis at board level. How do you move the board into creative thinking?

Mary Kay LeFevour:
    Ah, a nicely tricky question! I believe that leadership needs to be shared equally by staff and board. That is to say, that if you keep looking to the board for leadership without showing staff leadership or request quite clearly what you need or want from the board, they will never step up. And even if you do all the right things, they still might not step up!

I've been an e.d. for a number of small nonprofits that generally suffered from Board that did little to help with marketing, fund raising, etc. So what I did was to get my Staff together and creatively brainstorm where we needed to go and what resources we had at our disposal. Then we would carefully and quietly work with Board members that we knew were sympathetic to our ideas and move the Board towards where we felt was the best position for our group.

Now, of course, that doesn't mean to not include the Board or work with them! If you're lucky to have a willing Board that really wants to support your mission, I suggest a facilitated retreat that can set the stage for a good brainstorming. But make sure that the facilitator knows that it is very important that any take home plan/product includes staff's experience about what can work or what realistic.

Don't get hung up on how much a facilitated retreat costs -- it can be held relatively cheaply (unless you work for an international Board and then you'll need SKYPE). And the return of an engaged Staff and Board is priceless.

Last thoughts, be calm with your Board -- be positive and confident that together you all can create a good outcome -- that's really at the heart of leadership. Don't let paralysis keep your organization from moving forward. And be transparent!! Tell that to your Board -- let's move but let's move together.

Question from Valerie Lambert:
    What is your Twitter name? I wanted to follow you, but can't seem to find you under John Haydon or Corporate Dollar. (You are on Twitter, right?)

John Haydon:
    @johnhaydon

Question from Small nonprofit in Atlanta:
    I know prospect research is key right now, but with a limited staff who are already swamped with other fund raising duties, what resources can give us quick and convenient prospect research?

Mary Stephens:
    Seriously:

Your intuition is your best resource. There are lots of reputable published resources, and reference librarians are all an excellent (free) resource. Don't be afraid to ask them many detailed questions. That's how we learn the ropes.

But at the end of the day: go with your gut.

Question from Gary, consultant:
    Who is protecting the interests of small charities against unwieldily regulations (see IRS Form 990), testimony before Congress? Most agencies do not know who Independent Sector is. Few use their state association services or, know that there is a national association of state association.

Mary Kay LeFevour:
    Gary, I have that your question doesn't fall under my knowledge set. I'm going to ask Peter and our other Panelists for help on this. I will say that I believe that the American Society for Association Executives (ASAE) is a good place to start -- they live, eat, and breathe lobbying on these kinds of issues. Panel? Any other thoughts? Cheers, mk

Question from JD, an Historical Society:
    Hi, My question is what suggestions would you have for starting to reach out to the community for donations and contributions. We are a small historical society which sees most of its revenue from membership dues and government money. However, we are considering reaching out to the broader community for support.

Is there a way to establish this type of campaign? And what recommendations would you make for a small county historical society with a part-time executive director?

Mary Kay LeFevour:
    (rubbing my hands in glee) Ooooh, what a nice meaty question! I know it must seem an overwhelming task to make the leap to the next level but let's break it down.

First your membership base, current and former donors, and goverment agency liaisons are the best place to begin to build your outreach. Think of it as the first ripple in the pond. Have a good idea of where you want to go and what it would like. Then contact base and ask them for their ideas, advice and contacts and how to reach this vision. It's always important to get all of your stakeholders on board with your vision. And they may have such wonderful ideas and energy that you never expected.

From this first ripple comes the next ripple. You may have already gotten some interest, donations and contacts. Now, craft another appeal to these "friends of friends" and try to engage them in your vision.

Concurrent with this campaign, try to think up of fun/low cost events that you can hold at local historical sites that can get folks to really "see" what you're all about and engage them in why your organization is so passionate about perserving history.

Just go from step to step and try not to get overwhelmed by the big picture and include as many other good creative minds in your work as you can.

I started out as a part-time executive director more than 15 years ago and got the organization to increase its membership by 20% by simply going to those folks we had in our first ripple and getting them to find the next ripples.

Cheers, mk

Question from south shore junior golf association:
    how can I solicit donations when we don't have an IRS status, just a local nonprofit status?

Mary Stephens:
    Partner with a like-minded 501c3. They do the formal proposal on your behalf. (You do the actual work for them and give the work product to them). They function as a "pass through". They pass the funds through to you. They keep an administrative percentage for their service. This typically runs from 10 percent to a high of 17 percent

Question from Craig Weinrich, Nonprofit Coordinating Committee of New York:
    I am curious to see examples of nonprofits using LinkedIn. How is it beneficial to an organization?

John Haydon:
    Craig,

I see lot's of nonprofits using LinkedIn to promote events in the Q&A section (search "nonprofit".

Nonprofit's also use LinkedIn to network among their executive board members.

An excellent resource for LinkedIn is "LinkedWorking" by Lewis Howes and Frank Agin.

Hope that helps,

John

Question from Erin J, Whistle Stop:
    We are a small organiziation with a full time staff of 2 (since we had to cut one persons hours and our bookkeeper was forced to quit due to low funds) and about 7 part timers. We are currently about to start writing 3 grants to recieve money for our primary program and one for our newest. I have been researching new ways to raise money other than grants which we rely on to keep us going. The problem is that I have been here about a year and am just getting used to how fundraising works at nonprofits. Many of the articles I read about developing a fundraising campaign involve the board and to my knowledge the board is involved in fundraising to the extent of helping with our annual fundraiser which we recently had. Our fundraising plan consists of our annual fundraiser, an end of the year mail out, and one other small fundraiser. How do I go about presenting my ideas to the executive director and how can we expand our mission to the community without spending lots of money?

Mary Kay LeFevour:
    Erin,

It would be helpful to know what your organization's mission is so I can help craft a more specific answer. For example, I think you're spot on to try to think outside the grant/foundation box!!!! Always diversify, diversify, diversify.

I'm all about finding creative new streams of revenue. For example, if you have some great reports that your org has done collecting dust around the office...find some way to repackage them (or remonitize them as my advertising exec brother-in-law would say). My last group had a science journal and even though all of the past issues and articles were available online, it was really expensive to get them. So I thought, hey, why not create CDs of special topics that drew from our journal's 20 years of articles and sell them to our members. Cheaper than downloading all of these articles one by one and the research was done for you -- here are the best of the best articles for a mere $xx.xx.

If you can come up with some creative ideas like this (and I'd be happy to help you brainstorm them if you tell me what your org is), then go to your e.d. and get him/her excited about this. However, do have a plan and budget in mind that uses your resources without overloading them.

Clear as mud?

Cheers, mk

Comment from Craig Weinrich, Nonprofit Coordinating Committee of New York:
    Responding to Gary's question: As a staff of a state association (regional in my case), I can say that the National Council of Nonprofits through its State Association network of over 22,000 nonprofits is working for the small nonprofits, and the state associations are doing many workshops on the new 990 changes. We just had a workshop this morning in NYC about some of these changes, and we are working on securing funding to update our "How to Read the Form 990 and understand what it Means" publication.

Maria Di Mento (Moderator):
    As we approach the midway point in today's discussion, I'd like to offer a reminder that participants are encouraged to ask questions at any time. To submit your query, simply click on the "ask a question" link on this page and type in your question.

Question from Peter Morris, Hugs and Kisses, Inc.:
    I'm co-founder of "Hugs and Kisses, Inc." Our efforts have been so successful, we're begun seeking 501(c)(3) status.

Hugs and Kisses is a teen run non-profit charity that raises funds for local cancer patients with desperate financial needs.

Can you suggest resources for seeking corporations who donate to teen mentoring and cancer fighting causes?

Mary Stephens:
    Two suggestions: First, find companies that target teens as their primary market. Limit those to companies that are marketing positive things (rather than harmful things). Contact them and explain how they can help you and help their PR at the same time. Secondly, search for foundations that support teens. Partner with a like-minded 501c3 and have them function as your pass through.

Question from Elise, small nonprofit:
    Our biggest issue after "trimming the fat" is to keep morale and productivity high. It's been hard to hear the constant rhetoric of "things are so bad" without feeling like it's a lost cause. Do you have any suggestions to counteract this feeling?

Mary Kay LeFevour:
    Great question and I'm glad that this is a concern! I've been hearing about how an e.d. keeps telling his staff, "Well, we're okay....for now." Talk about a morale buster!

Firstly, it's good to acknowledge that it's just hard to get through these hard times. Then after a nice little pity party, get folks to start getting creative. I find that whenever I'm blue because I'm overwhelmed, all I need to get going again is to have either a staff or board member come up to me as say, "Hey you're doing fine, we'll get through this together. What can I do to help?" Think about what gets you perked up and try being that for others. And you know, I love the expression, "This too will pass." That's helped me get through some pretty tough times. Together with the expression, "Everything works out perfectly." I've had what I considered incredible failures turn out to be tremendous successes (though it often takes time for those diamonds to come through).

What usually keeps productivity high in a bad time is to give folks some autonomy to do creative projects that keep them going and also helps the organization branch out a bit from the current state.

No lost causes -- just lost people. Help them find their way with your passion.

Cheers, mk

Question from khotso university of the free state:
    Should learners go through a year of mandatory community service before or or a fter study or work?

Mary Stephens:
    Community service is a lifetime goal. It is helpful to engage in it both before and after any course of study - and to continue with that ethic. It is, indeed, mandatory if one is looking to the Nonprofit sector for a career.

Question from Amanda Jones, Out The Boat Ministires, Inc.:
    What about startup organizations? My org is aiming to provide services to homeless youth and we'll need funding for food, toiletries, etc. that we can't secure via donations, as well as capital to secure buildings. We're in a very tough position as a startup during these times, but the need is increasing for the same reasons that we're struggling!

Mary Kay LeFevour:
    I feel your pain!! Let's chunk down the overwhelming picture here and find the one or two steps you and your staff/board can do to create one success. And remember, no matter how successful you are there will always be more needs so it really helps to concentrate on what can we do at this very moment. So if you only help 10 homeless youth right now that's incredible!!! Or even 5, or even 1! And success breeds success. So you've just gotten a nice (but small) donation of goods from CVS Drugs that doesn't go very far. But you've just built a relationship with a major donor! Keep them in the loop by showing them how important their donation was and that it helped -- could the make some regular donations so your org can expand? People want to know that when they give it has an effect -- if you can keep showing that to your donors in a very specific way, they'll keep coming back (if they can). Instead of trying to get capital for a secure building, perhaps you can find a realtor who is willing to give you some space rent free for a while until the market gets better? Try to get creative with trades, barter, etc. Collaborate with other nonprofits or churches!

Good luck!

Cheers, mk

Comment from Craig Weinrich, Nonprofit Coordinating Committee of New York:
    To find your state/regional association, visit: http://www.councilofnonprofits.org/salocator Membership to these associations are VERY valuable, you'll get the representation you need at the state and federal levels and they have some great benefits.

Question from Tamar Cloyd, Public Interest Nonprofit:
    There's been a lot of recent debate on the utility of social networking to raise funds but is there any information on how effective these tools are in increasing the number of people who know about an organization?

John Haydon:
    I don't know if you've seen this case study: [http://mashable.com/2009/03/26/social-media-nonprofit-study/]. It's a very comprehensive study on social media for social causes.

I'm not familiar with any study that would compare a "before and after" in terms of awareness, the The RedCross, EpicChange, the National Wildlife Fountation, KidsAreHeroes and GirlEffect are all great case studies for increasing awareness through social media.

Taking the web out of the picture for a moment. If a non-profit had 300 phones (with 300 volunteers) to spread a message, they'd beat out a non-profit with 3 phones. Social media is like having 300,000+ phones.

The question to ask is this: "What story will you tell on the phone?"

Spreading awareness with social media has a lot to do with how remarkable the non-profit is. Do people *want* to talk about you? That's the key!

Question from Erin J, response to mary kay lefevour:
    We recently changed our mission to incorporate our newest program and it stated as: "to enrich the lives of children; to implement life changing programs that have long term benefits; to offer opportunities that lead children to a bright and happy future"

Mary Kay LeFevour:
    Erin,

I'm afraid that perhaps your question part of this was left off -- I'm not sure what you need. Please resend.

Cheers, mk

Question from Peter Panepento, Web editor, The Chronicle of Philanthropy:
    Many of the smaller nonprofit groups that I've dealt with want to try social media like Twitter, but they have a hard time getting the staffing to make it work. Do you have any suggestions on how groups can have a presence on Twitter without spending a lot of time?

John Haydon:
    Well, unfortunately, it does take time. And hard work. Social media is not a quick hit solution.

I would encourage the non-profit to spend 5-10 hours a week, but have a long-term view. If they're complaining, then maybe they forgot their mission.

They need a reason to fight. Once a person is 100% sold on their mission (really sold - in their hearts), people will show up who will want to support. It will not seem like work any more.

KidsAreHeroes.Org is a great example of one guy, with a full time job, using only Twitter to create amazing results: http://www.corporatedollar.org/2009/05/business-heart-kidsareheroes/

Mary Stephens:
    Re. Fiscal Sponsorship:

Use the business model. Simply turn it into a business proposal by saying: "We'll do all the work, including writing the grant proposals...You function as the 'pass through' and you keep the administrative overhead (the ten to seventeen percent)

Question from Megan, Phoenix Society for Burn Survivors:
    As a national organization without chapters (office in Michigan), do you have suggestions on how to engage members/new members/ prospects outside of our local area? What are some of the most effective, low cost methods of reaching current supporters and attracting new ones?

Mary Stephens:
    Separate the country into (say) five basic regions: East, South, Midwest, Northwest, Southwest. Pick one university in each region. (go with your 'gut' on which university). Make contacts ahead of time at each one. Then set up appointments. Then go personally to visit each one. Ship your brochures etc. to the most reliable contact at each place....Then buy an Amtrak USA Rail pass and go visit each campus - engaging in a speaking/recruiting tour.... This works....

Question from Amanda Jones, Out The Boat Ministires, Inc.:
    I love the idea of fiscal sponsorship to help get started. One of my concerns, however, is that competition in this area is quite fierce and organizations just generally don't seem to get along very well or be open to partnering - much less helping a new org get started. Any suggestions?

Mary Kay LeFevour:
    Yup! Go to fiscalsponsordirectory.org that lists groups that offer fiscal sponsorship opportunities.

In addition, many nonprofits would be happy to have you as a project under their wing that gives them a more robust presence (if only temporary) in the community. Ask around about some likely candidates and try to ferret out whether they are good stewards of their own budget and ask the e.d. if he/she would be open to being a fiscal sponsor.

Also, remember, it's only a temporary relationship and you don't need it to be the closest or best relationship ever. But you do need to be responsible to them so they don't endanger their 501(C)3 status and they need to be responsible to you so you get the money to pay your contractors, vendors, etc. on time as well. This is matchmaking at its best.

Good luck!

mk

Question from Sim, small nonprofit:
    How do you capitalize on social media like Twitter if you don't have a large staff to continually Tweet about the org, can't afford to hire a PR firm to tweet for you, or you have a board/president that is unwilling to use social media?

John Haydon:
    The best way to capitalize on social media is to get other people to do the work for you!

As you know, the power of social media does not exist in you doing all the work. Email is for that.

Without knowing anything about your situation, you may want to start by getting even just a small result that you can "sell" to the board. Start by:

1 - Finding others who share the same passion. Unit with these folks. Promote their non-profits (in turn, they will eventually support yours)

2 - Try and create remarkable content (videos, blog posts, pictures)

3 - Stick with it.

Ask yourself, "How do I feel about my non-profit?" "Why am I working here?" Get excited and start getting others excited.

Mary Stephens:
    Re. social media: The concerns raised about Twitter etc. are valid. I like You Tube for these reasons:

1. Easy to interest talented people in making cool videos for you - just to get the experience and their product 'out there'...

2. You Tube has a great program for Nonprofits (check it out)

3. YouTube is associated with Google which also has cool features for Nonprofits (check it out)

4. You can use your growing e-mail list to link to your Nonprofit YouTube site...

5. It's a lot less time consuming to update a YouTube Site on a weekly basis than it is to answer a (way too big) number of 'tweets'...

Question from Ama Wheelies:
    What is the fastest way to get 5000 good followers to our cause on twitter and how can we implement it?

John Haydon:
    "Fastest way to get 5000 good followers"

How fast is fast? Why 5,000? What does "good" mean? Ask yourself these questions.

Viral potential is highly influences by how great the content is. The fastest way (and the surest way) is to have content that is absolutely, 100% remarkable.

When people get excited about your non-profit - I mean really, really excited - what do they say?

Question from Kellie, Consultant:
    On behalf of an enviornmental organization with an aging membership, what are some of the ways the internet can be used to attract a younger audience?

Mary Stephens:
    Serendipity....I just posted an 'announcement' before I read your question. Check out 'YouTube'. Their program for Nonprofits is perfect for you.

Also: Visit some colleges, and bring your programs and your vision with you.

Also: Partner (for real) with some Nonprofits who are working with teens.

Comment from Amanda Jones, Out The Boat Ministires, Inc.:
    Re: social media - i just started tweeting about a week ago & LOVE it! i do it at my own pace, which really depends on what's happening during any particular day. there's no need to have a designated staff position that tweets - you can have any/all of your staff join a united front & everyone picks a day/topic/whatever. or it can be free-floating. i recommend at least one or two tweets a day, but the big idea is to make it meaningful. PLEASE don't be one of those users who just posts quotes every 5 minutes!

Also, THANK YOU Mary for the fiscal sponsorship link! i think i've just struck gold here in MD!

Question from Erin J, Whistle Stop, response to mary kay:
    We are a small organiziation with a full time staff of 2 (since we had to cut one persons hours and our bookkeeper was forced to quit due to low funds) and about 7 part timers. We are currently about to start writing 3 grants to recieve money for our primary program and one for our newest. I have been researching new ways to raise money other than grants which we rely on to keep us going. The problem is that I have been here about a year and am just getting used to how fundraising works at nonprofits. Many of the articles I read about developing a fundraising campaign involve the board and to my knowledge the board is involved in fundraising to the extent of helping with our annual fundraiser which we recently had. Our fundraising plan consists of our annual fundraiser, an end of the year mail out, and one other small fundraiser. How do I go about presenting my ideas to the executive director and how can we expand our mission to the community without spending lots of money? Our mission is "to enrich the lives of children; to implement life changing programs that have long term benefits; to offer opportunities that lead children to a bright and happy future

Also, our executive director is part of the older generation and is not up to date with the effectivness of online marketing. What would be the best place to start to create an online presence?

Mary Kay LeFevour:
    Ah, I see that I answered the first part of your question because the rest didn't show up on my screen.

I may not have enough time to go into detail about the best place to create an online presence but many of our panelists have made great suggestions such as You Tube, DoGooder.tv, Wiserearth.org, Linkedin.com, Twitter, etc. Do some research on Techsoup.org to find out which low cost tools make sense for your organization and plot out the budget, time, tools, etc and present it to your e.d. You may need to get the old persuasion engine running for someone who doesn't know about the benefits of online communities -- try to show him/her about other like-minded organizations online successes for some nice visual examples.

Good luck, mk

Maria Di Mento (Moderator):
    It looks like our time is up. Thanks to everyone who joined us today. I hope you found the conversation informative. Thanks, also, to Mary Kay LeFevour, Mary Stephens, and John Haydon for a lively discussion and some excellent advice.

Maria Di Mento (Moderator):
    Please join us a week from today, at noon Eastern time, when we look at philanthropy' past, present, and its future, and how changes in technology, demographics, and ideals are moving philanthropy in new directions. See you then.

Mary Kay LeFevour:
    Thanks everyone!