How the stories of your organization’s impact can influence donors and giving How often do you read reviews stars! of products, restaurants, movies, etc., before you make a purchasing decision? ★ Never ★ Rarely ★ Sometimes ★ Frequently 5 ★ Always

By Perla Ni Sylverarts/Veer

30 Advancing September/October 2012 Impact Measurement

Do you use TripAdvisor or Amazon reviews or browse the successful match-day promotions that provide both money Zagat guides? Most shoppers rely heavily on customer reviews. and attention for nonprofits. In fact, 65 percent of customers report reading reviews “al- However, the most significant reason for the increase in ways” or “frequently” before deciding to make a purchase. giving may be that supporting local nonprofits is highly satis- The same also applies to charities. And if you think the fying for donors. “People feel passionate about local nonprof- large national charitable organizations have the advantage, its,” says Peter Hero, president of The Hero Group (http:// think again. theherogroup.info) in Palo Alto, Calif., and former president and CEO of the Community Silicon Valley. Hero Why Local Nonprofits Can Shine says he is not surprised that people feel more connected to Local nonprofits often feel overshadowed by national chari- local nonprofits than to national organizations. “They see ties, but this is actually a great time to be a local nonprofit. how hard they are working. They can talk to the executive There are two large waves in philanthropy: One is interna- director,” he says. “It’s much harder to get a call with the tional giving, because the need is so great. The other is local executive director of a national nonprofit!” giving, which has exploded in recent years. While interna- Satisfied donors are loyal and will give more, and local tional giving increased by 70 percent from 1988 to 2009, nonprofits have the advantage of being part of their com- local community giving increased by 931 percent over the munity and can provide donors with hands-on same period, jumping from $405,000 in 1988 to $4.17 mil- experiences. lion in 2009, according to the Foundation Center. The increase is due to several factors. One reason is that, I ♥ My Local Nonprofits due to government cutbacks, local nonprofits are called upon Local nonprofits tend to comprise the majority of the more to do more, such as running community centers or providing than 13,000 nonprofits rated on GreatNonprofits.org (http:// job training and transportation to the disabled. The local greatnonprofits.org). These organizations have an average nonprofit “market” is growing. mean rating of 4.75 stars out of 5 stars across more than A second reason for the increase in giving is because of 100,000 reviews. (Yes, the mean is very high—GreatNon- greater efforts by local nonprofits and a wider variety of profits.org is the site where people typically will go to share and stewardship tools now available to them. positive stories about a nonprofit.) Looking at the top na- Community foundations also have been helpful in providing tional organizations on the Cone Nonprofit Power Brand fundraising training to nonprofits. The Pittsburgh Founda- 100 and comparing their ratings on GreatNonprofits revealed tion, for example, provides nonprofits with social media and that the larger and more national the organization, the lower fundraising training. The Pittsburgh Foundation and other it was rated in satisfaction by clients, donors and volunteers. foundations, such as the Seattle Foundation, also run very The top 50 organizations on the Cone list were rated an av- Sylverarts/Veer MingQi/Veer Yang

www.afpnet.org Advancing Philanthropy 31 Impact Measurement

erage 3.3 out of 5 on GreatNonprofi ts.org. The next group, their base over many years. They each have their own success 51–100 on the Cone 100, did better, averaging a 4.2 out of stories and signifi cance in philanthropic history. Founded in 5 rating on GreatNonprofi ts.org. (See Figure 1.) 1881, the American Red Cross was started to care for victims What drives satisfaction ratings of clients, volunteers of war, making an impact in both World Wars and many and donors? An analysis of the text of reviews submitted natural disasters since then. The SPCA was started in 1824, to GreatNonprofi ts.org (see “Up for Review,” Advancing spreading awareness about animal cruelty. Susan G. Komen Philanthropy, September/October 2011) showed that com- for the Cure, one of the youngest of the national brands, was munity ratings of satisfaction focus on words about staff founded in 1982, quickly raising awareness of breast cancer dedication, helpfulness and respect. Volunteers want to make through savvy fundraising and corporate partnerships. a change in a community rather than “being However, large national organizations used to stuff envelopes.” Clients applauded and brands attract national attention when nonprofi ts whose staff and volunteers were there is trouble. In February Susan G. Ko- “friendly.” Donors want to be respected and Third-Party Seal men for the Cure was roundly scrutinized know that their money is going toward real of Approval after management decisions involving people or making concrete progress on an Planned Parenthood. Interestingly, for issue, rather than “free fundraising junk” Third parties providing ac- the past two years there had been many that is sent out to solicit more . creditation for nonprofi ts reviews critical of the questionable judg- Donors praised nonprofi ts “that directly can offer additional cred- ments made by the management at Susan touch people and help to improve their pros- ibility for local nonprofi ts. G. Komen for the Cure posted on Great- pects for the future.” Often small and local GreatNonprofi ts (http:// Nonprofi ts.org. Its average rating had been organizations do a better job of providing greatnonprofi ts.org) also 3 out of 5 stars prior to the Planned Parent- these real opportunities and are better able offers a badge that is avail- hood scandal. to engage with their communities on this able to any nonprofi t, with In response to the controversy, Great- personal basis—and they are able to show no budget requirements or Nonprofi ts ran an award for people to real results. membership fee. The badge nominate other breast-cancer organiza- is available in different sizes tions that deserved support. Here is one Showing Donors and colors for you to use on story that a breast-cancer survivor submit- On-the-Ground Impact your website or in marketing ted about the Connecticut Breast Health The large national brands have, in general, materials. Initiative in New Britain, Conn.: been successful in using advertising to grow “I am now a nine-year survivor and am

32 Advancing Philanthropy September/October 2012 Impact Measurement

grateful to the hard work and dedication of the CT BHI cial media are free for nonprofits, and local nonprofits team. This organization works hard to raise money for can use their wealth of passionate supporters to help them breast-cancer research efforts in CT. I have had the spread the word. It brings them one step closer to bridg- pleasure of walking in several of the races and served as ing the marketing gap between them and the wealthier race chair previously. There are many ways to become nonprofit brands. involved with this outstanding organization, whether it is as a volunteer for one of their events or as a participant. Shop Local, Eat Local and … Give Local They are a wonderful group of people to work with as a Local nonprofits also can take advantage of the “shop lo- volunteer, and I appreciate the efforts that honor breast- cal” movement. Consumer behavior has begun to change, cancer survivors, remember those who have passed away showing a preference for spending locally—think, shop and from the disease and strive to find a cure. You can’t help buy local (for example, see http://thinkshopbuylocal.com). but get energized by the stories, passion and purpose! The shop local movement has capitalized on the sense of Thank you CT BHI!” community pride and obligation. Since the beginning of the —Susan Lane D’Apice shop local movement in 2006, with only 41 participating cit- ies in the United States, the trend has picked up momentum Of all the nominated organizations, all but one were local to encompass more than 130 cities and 30,000 businesses breast-cancer organizations. The one nonlocal organization (BusinessWeek, 2009). The retailers who participate in the was a small, international advocacy organization. shop local movement report up to a 9 percent increase in revenue. Facebook, Twitter, Google, Foursquare and Yelp are A More Level Playing Field stepping up their local business products. Local ad revenues Social media are leveling the playing field for smaller nonprof- are expected to reach $144.9 billion in 2014. its that do not have the marketing and advertising budgets Local shopping draws upon people’s sense of membership that larger nonprofits have. in a community and their sense of obligation to do their fair The 2012 Nonprofit Social Network Benchmark Report share to support local businesses. Consumers seem to agree (http://nonprofitsocialnetworksurvey.com/download.php) that being a part of the community comes with community showed that as of 2012 about 98 percent of nonprofits were obligations. on Facebook and 72 percent used Twitter. Social media chan- Local charities also can consider banding together to create nels are a free form of marketing that allow smaller nonprof- a “give local” movement similar to the shop local movement. its with limited funds to harness the voice and support of Nonprofits can build on this sense of communal obligation their volunteers, donors and supporters. Building a presence and harness their local volunteers to spread the word that their on these social media platforms gives local nonprofits the op- neighborhoods are better because of local nonprofits. portunity to further Community foun- develop a connection dations are now help- with those who sup- ing create this kind port them, as well as of awareness and build their fan base. community mem- In a survey of 459 bership through nonprofits, respon- “Match Days.” Pitts- dents reported an in- burghGives (www. crease of 61 percent pittsburghgives.org) in their support base and GiveMinnesota in terms of increas- (http://givemn.razoo. ing volunteers and com), for example, raising funds by ex- are helping create a panding their reach sense of community to social media fol- pride and obligation. lowers. (See Using They also are creating Social Media to Meet platforms where non- Nonprofit Goals, profits can be stronger February 2010, advocates for them- www.idealware. selves. Tracy Certo, org/reports/using- publisher of PopCity, social-media-meet- a popular blog in nonprofit-goals- Pittsburgh (www.pop results-survey). So- citymedia.com), says www.afpnet.org Advancing Philanthropy 33 Impact Measurement

now my family is rebuilding, and I have one very happy What If I Get a Negative Tweet and healthy kitty who is a blessing to us every day! Every or Comment? day I thank God that RedRover is around, and I will be volunteering/spreading the word about them!” a negative comment about your organization deserves —Leah, client served immediate attention. What was the cause, and what needs to be done to remedy the situation? is it really a Reviews such as this, which was posted on Greatnonprofi ts. legitimate observation? Consider the following options: org, show the huge on-the-ground impact that local orga- • alert the moderator, if applicable. nizations have on a daily basis in the lives of those in their • respond: post a comment or tweet. communities. • remember that people are used to reading re- “No one ever marched on Washington because of a views and to sorting out which ones are credible. pie-chart,” says Andy Goodman, the well-known Los • Take the negative comment as constructive criti- Angeles-based storytelling guru, author and consultant cism. No one expects you to be perfect, but if there (www.agoodmanonline.com). He advocates telling a story is a problem, fi x it. about your work because stories show the work you do viv- idly, authentically, clearly and with conviction.

“When I came to Goodwill in August 2007, I was on parole, homeless and hardly involved with my two chil- that PittsburghGives has “had tremendous impact on the dren. I was like a part-time father that wandered in and awareness of nonprofi ts.” out of their lives. I did Goodwill’s training program while working in the warehouse. Now my fi nances are in order, Let Others Tell Your Story I’m off of parole and I can provide for my sons the right Do you have at least one story about a constituent or project way. I can be a positive role model for them.” that you tell to potential donors? Does everyone in your orga- —M. Solomon, client of Goodwill Industries nization—board members, volunteers and staff—know that San Francisco, San Mateo story or other stories? Have you asked them to share those stories? At the same time, don’t be afraid to ask your donors, This story speaks powerfully and concretely about the board members, volunteers and constituents to tell their own impact of Goodwill, not only rebuilding this one person’s story about your organization. If they don’t tell your story, life but also the lives of his children, both fi nancially and who will? Use the stories in multiple formats—on your web- emotionally. site, in your newsletters and brochures, and via social media. The Society of Singers (www.singers.org) in Calabasas, Ca- lif., which provides fi nancial support to professional singers “A couple months ago my house burned down and I lost all whose careers are in jeopardy due to illness or other emergen- of my babies. I had a puppy, a bunny, two cies, raised nearly $45,000 as a result of the mice and my kitty, Wizard. When the fi re following story, which was fi rst posted on department got there, the only one they Social media Greatnonprofi ts.org and then shared in the could revive was Wizard. They sent him organization’s e-newsletter to donors: to a vet’s offi ce, but being that we had ev- are leveling the erything in our house, we had no money playing fi eld “After Hurricane Katrina, I needed fi nan- and Wizard needed tons of IV’s, medicine for smaller cial help to begin rebuilding my career in and was placed in an oxygen therapy tank another city. The city was Chicago. It was for three days. A friend on Facebook told nonprofi ts bigger, scarier and colder for an unknown us to try RedRover. I fi lled out my ap- that do not singer like myself. SOS was able assist me plication and not even 15 minutes later, have the with some of my utilities when the work I got a phone call telling me that I had just wasn’t there for me.” a $300 grant coming my way! But even marketing and —tovikhali, client of Society of Singers then, my vet bills exceeded the amount advertising of money that we had, and realizing that, budgets Stories of your clients, stories of your they also put a picture of Wizard on their donors and stories of your volunteers can website with a number to text to send that larger help immensely in effectively communicat- donations! And as if that weren’t enough, nonprofi ts ing your nonprofi t’s impact to donors. they also agreed to match the donations have. made within 24 hours! They helped me Perla Ni is CEO of GreatNonprofi ts (www.

so much in my time of utter despair, and greatnonprofi ts.org) in Menlo Park, Calif. Alexander Yurkinskiy/Veer

34 Advancing Philanthropy September/October 2012