August 31, 2009

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PSAs Can Fuel Organizational Credibility

Project Fit America (PFA) found itself on the pages of national magazines several years ago, prompting calls to the small nonprofit in Boyes Hot Springs, Calif., about 50 miles north of San Francisco. The Public Service Announcement (PSA) ads certainly raised the nonprofit’s profile but they didn’t raise much money.

“Being in National Geographic, O magazine, it’s a credibility statement for a charity,” said Stacey Cook, PFA’s executive director. The PSA was a boost to its other awareness campaigns, Cook said, describing it as “a spoke in a bigger wheel,” even though the dollars didn’t follow.

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Looking for a career opportunity with a nonprofit? Check our the most comprehensive study of salaries and benefits ever conducted for nonprofits in the new NonProfit Times 2009 Nonprofit Organizations Compensation & Benefits Report today! Click here.

Branding ...
10 essentials to enhancing brand power

A solid brand identity can tell an important story, setting expectations, gaining attention and fostering relationships, according to Cone, a Boston-based strategy and communication agency. Since a brand valuation can help transform an intangible idea into a concrete asset, Cone offers 10 essentials to enhancing brand power:

  • Engage fresh constituencies: Creating tailored programs for different demographics, through relevant connecting of sub-brands, helps define what an organization offers.
  • Adopt new currencies: When financial resources dwindle, savvy nonprofits recognized the value in more "creative tender," including skills-based volunteerism, in-kind gifts of products and services, or diversifying their fundraising sources.
  • Modernize fundraising: Be aware of the changing dynamics of your donors' needs and where they get their information. Nonprofits and their corporate partners are turning to digital fundraising, micro-philanthropy and online communities to reach their donors.
  • Deliver crisp communications: Make it easy for audiences, on the first impression, to understand who you are and what you do.
  • Establish, and adhere to, brand guidelines: Ensure consistent use by staff, volunteers, partners, media and others and make sure everyone in the organization has a clear understanding of what you stand for and how to state it accurately and succinctly.
  • Build brand stewards: Leading brands continuously express mission, vision and values through the actions of staff, volunteers and board members who share the organization's story. Evangelizing the purpose and brand meaning is the responsibility of the leader and leadership team.
  • Develop quick reflexes: Give people opportunities to engage with your brand in relation to events in the world around them, from natural disasters to economic realities to the nationwide call to service.
  • Build corporate partnerships: Identify and recruit companies that share your values to become catalysts to broaden your mission and become stewards.
  • Create a dialogue with brand ambassadors: External stakeholders hold the brand in their hands; actively communicate your mission, goals and results and solicit their feedback.
  • Issue a rallying cry: Develop branded cause-related initiatives that will rally new audiences and re-energize existing brand ambassadors.

Human Resources ...
12 pitfalls to avoid in executive compensation

Executive compensation is the most active area of inquiry and enforcement at the Internal Revenue Service (IRS), according to G. Bliss Jones of Jones and Kolb, an Atlanta-based CPA firm.

The revised federal Form 990 asks nonprofits if the process for determining compensation of top management officials and other officers or key employees included a review and approval by independent board members, comparability data and substantiation of the deliberation and decision. It also asks organizations to describe the process.

Jones, who presented a session on the revised IRS Form 990 at the American Institute of Certified Public Accountants (AICPA) annual conference in Washington, D.C., offers a list of recommendations for nonprofits to follow when it comes to governance policies on compensation:

  • Adopt a safe harbor process
  • Form a compensation committee composed of independent directors
  • Obtain comparability data from peer organizations or ASAE surveys
  • Use data from Guidestar.org

Jones also suggested avoiding, or disclosing, eight specific types of expenses:

  • First class or charter travel
  • Travel for companions
  • Tax indemnification or gross-up payments
  • Discretionary spending account
  • Housing allowance/personal use residence
  • Payments for business use of residence
  • Health or social club dues/initiation fees
  • Personal services, such as a maid, chauffer or chef

To compare your executive's compensation, check out The NonProfit Times 2009 Nonprofit Organizations Salary & Benefits Report.

Marketing ...
You need your own slogan that people understand

Bill Clinton’s 1992 slogan “It’s the economy, stupid” was a simple statement that represented a complex problem. Nonprofits should adopt their own slogan – “It’s the awareness, stupid.”

People know the issues are out there -- poverty, war, discrimination, natural disasters, abuse. But do they understand the need? And you can’t build a following of people volunteering, donating, and advocating if they’ve never heard of you.

The Alzheimer’s Association faced those problems – nearly 90 percent of Americans know someone with Alzheimer’s, but most don’t realize the disease’s scale, according to Angela Geiger, a vice president at an American Marketing Association Nonprofit Marketing Conference. The association garnered 90 million impressions and was covered by USA Today, U.S. News & World Report, and CNN when releasing a fact and figures report last year about the disease. Geiger shares how to bring the attention to your cause:

  • It’s worth their attention. The Chicago-based organization dropped an informational bomb on the front cover of its facts and figures report – 10 million U.S. baby boomers will develop Alzheimer’s disease.
  • Make facts available to everyone. That helped solidify the organization as the expert voice on the disease.
  • Celebrity champions. The organization worked with celebrities like David Hyde Pierce, Wayne Brady, Vivica A. Fox and Jean Smart, to speak out about Alzheimer’s. “Almost all of our celebrities have a personal connection” to the disease, said Geiger.
  • Provide information. People want to know more – and might turn to your organization. The Alzheimer’s Association Web site became a haven for people and families affected, providing information on the stages, warning signs, legal issues and more.
  • Different strokes for different folks. The Association segmented some information for children, African Americans, Latinos, and even providing information in Chinese.

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