Many Non-profit organizations enact in an egregious manner.
It perplexes me that Non Profit organizations believe that
there is a significant difference in performance, reporting
and business methodology. This myth is not only untrue and
must cease. Fact, Non-Profit organizations require
bureaucracy, goals and accountability. More importantly
Non-Profits must always be marketing.
While reading a national periodical I read that a fairly
prominent Non-Profit was preparing to cut as much as
one-third of its headquarters staff, up to 1,000 employees,
and pare regional management due to fundraising issues. Is
this a lack of money, or simply a lack of selling and a
lack of accountability? I am often intrigued when
management cuts staff to raise profits and even more
concerned when issues arise because organizations fail to
remain committed to its only rational goals- retain and
gain clients.
Organizations and their managers emulate children; they
will find an excuse for anything. The real issue is
accountability. Some non-profits fail miserably at
marketing and sales. Recent research for this article
indicates that many non-profits focus attention on
operations rather than an outward focus.
Currently, examples of fund raising efforts involve galas
and unfortunately notoriety following a disaster. Most
organizations are staffed with volunteers uneducated in
closing sponsors and requesting money. The means to an end
for many organizations is to implement a professional
selling force that is 1) hungry in the hunt and enjoys
searching for dollars in precarious places, 2) enjoys
networking to uncover possible donations and 3) will not
hesitate to ask for the business.
Secondly, many firms believe that internal training
augments large spending. Not true. From over 25 years with
clients around the globe I typically get calls from
organizations to conduct training for two vital reasons,
1) there is a bias within the organization that disavows
market trends.
2) organizations fail to provide proper motivational and
productivity tools that create a competitive sales force.
Managers are not well versed in compensation, goal matrices
etc. Sales people are driven by proper goals and
compensation.
3) There is a systematic approach to selling and many
internal trainers use books and tapes rather than practical
experience. Sales take longer to close and professionals as
well as executives get frustrated with lagging revenue.
4) Internal training is myopic. In recent research 76% of
firms that internally train do so once per year, then
speculate why production and profits fail.
5) People go into sales because they hunger for money and
the thrill of the hunt, non-profits tend to instruct
service and fail to create the panacea.
6) Internal training fails in how to close business.
Finally, there is a horrendous disconnection between,
clients, staff and at times boards of directors concerning
marketing intentions. On a recent journey to train a
non-profit there existed a variety of interpretations with
the firms marketing message. Staff and executives could
not agree on the external message to clients. Worse yet
many staff were unclear why the organization existed. It is
imperative for organization to develop a solid value
proposition. A pithy statement focusing on output and
client values transcends purpose for staff and focus for
clients and donors. An example statement- Transforming
lives on the road to independence. With all working in
concert the organization operates with a joint purpose. All
staff are then involved in the selling process. The outward
focused message creates interest and conversation while
illustrating how sponsorship is utilized.
Clearly not all non-profits are dysfunctional and many do
not have these issues. Yet many do and fail to realize that
success hinges upon the ability to raise funds-
continually. Rather than use perfunctory fundraising
methods, organizations should use methods employed by for
profit institutions. With changes in market conditions and
the economy specifically, donations become slimmer and
competition increases. Currently, 850,455 public charities
and 104,276 private foundations are registered with the
IRS. (Source: The Urban Institute, National Center for
Charitable Statistics, Business Master File 01/06) In
addition, 463,714 other types of nonprofit organizations,
such as chambers of commerce, fraternal organizations and
civic leagues, are registered with the IRS. (Source: The
Urban Institute, National Center for Charitable Statistics,
Business Master File 01/06) This creates a highly
competitive enviornment with many organizations vying for
similar dollars. Even for non-profits the world flatten
with globalization and competition requiring a thirst for
differentiation.
----------------------------------------------------
Drew Stevens PhD
http://www.gettingtothefinishline.com
Drew Stevens Phd works with organizations to maximize sales
in less time. Drew can assist your organization with sales
or customer service. Order his latest book now, Split
Second Selling available on Amazon.com or at his
website,http://www.gettingtothefinishline.com/products.php
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