In episode 49 of Mission: Impact, Carol and her guest, Lewis Flax discuss:
Lewis Flax specializes in assisting nonprofits and associations generate additional revenue. His hands-on approach has helped numerous organizations implement strategies and tactics to increase sponsorship, partnership, and other funding streams. His firm, Flax Associates, established in 2008, serves as a partner in driving revenue and results.
Lewis understands the challenges nonprofits face, both from an outside consultant's point of view and from the internal perspective of a nonprofit executive. Previously, Lewis served as a Vice President for IEG (a sponsorship consulting firm) and served on the leadership team at Financial Executives International (FEI).
He is a certified instructor for Dale Carnegie Training (Winning with Relationship Selling) and an AFP (Association of Fundraising Professionals) Master Trainer.
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Carol Hamilton: My guest today on Mission Impact is Lewis Flax. Lewis and I talk about sponsorships. We explore why companies are interested in sponsorships, some of the misconceptions, and why to create real value you will need to get beyond your traditional bronze, silver, and gold-level sponsorships.
Mission Impact is the podcast for progressive nonprofit leaders who want to build a better world without becoming a martyr to the cause. I am Carol Hamilton, your podcast host and nonprofit strategic planning consultant.
Welcome Lewis. Welcome to the podcast.
Lewis Flax: Thanks, Carol pleasure to be here and looking forward to discussing sponsorship and the tie in with associations and nonprofits.
Carol: Absolutely. So I like to start at the beginning, I guess the sound of music inspires that, but start at the very beginning, but, but what w what drew you to the work that you do? What, what motivates you and what would you say is your why?
Lewis: When. First started working within the nonprofit world, realized when it came to sponsorship and how to go about it. When it came to how to structure and set up a sponsorship, when it came to how they go ahead and sell it, there was a lack of knowledge. There, there was a lack of awareness and the idea of how they work. Corporations and funders where they needed assistance and guidance. I felt a need or an urge to help, to give back through assistance and support. So I went to work for a larger consulting firm and then started my own firm in 2008.
Carol: All right. So you've been around the block a few times. So as you said, you work with nonprofits and associations on sponsorships. Just so folks have some context. Can you define sponsorship first?
Lewis: So sponsorship is where a company or an organization is paying a fee. Back to a property, the association or nonprofit where they're gaining specific benefits or specific rights which they value.
Carol: And what would you say motivates organizations to enter into those sponsorships? And I'm saying from the corporation side, what, what, what do they see as you a give get of what they're getting from that relationship?
Lewis: Sure. So they're aligning with an organization that can add value. So on the association side, often it's visibility awareness connection to thought leadership on the traditional non-profit side. It's aligning with a good cause, it's connecting with an organization which aligns with their values.
Carol: And what would you say are some of the key misconceptions that people have about sponsorships? You said that when you started there was a lack of knowledge. What are the things that you have to help people understand about those misconceptions?
Lewis: Sure. When it comes to sponsorship, often organizations on the nonprofit side look at, okay, well, put together a perspective. Especially now, given the pandemic things that have occurred, sending out a prospectus is not nearly enough, here's a standard offering of gold, silver, bronze, and this is what you get. That's not the way to generate higher revenue. That's not the way to customize your target in a way that's meaningful to a potential.
Carol: So what, what would you have organizations do instead?
Lewis: Well, there are a number of steps to take in working with different organizations. I walked them through a process that I term step up in terms of how to go about what it is that you can offer, whether a sponsor is interested in it, and then how you could structure your program to connect with the potential sponsors and align with your culture and your organization.
Carol: Can you give me an example of when you've seen that work well in terms of building that, building that relationship.
Lewis: Yeah. There are, there are many instances. So for example, with different associations it's well, what is it that they're offering? That's a value. So in working with one group, they have an awards program, safety awards. And for a sponsor, that's in a space where they're tied into safety. So say an insurance company or other types of companies. Well, if they can get involved with the safety program and they're providing insurance to the members of that association, all of a sudden it changes. Because if an insurance company is working with those who submit, apply or are involved in a safety awards program, well, they want to insure them. And if they can provide guidance as to how to handle safety procedures at a, in a manufacturing plant, or how to handle safety procedures in a different environment, that's who they want. So if they can get involved either on the selection committee or get involved in terms of articles on safety or debt involved in terms of working with an awards program that offers far more value than having your name and your logo on the website and on signage and pasted anywhere and everywhere. So when it aligns with what the company is seeking. And the specific association or nonprofit it's far greater. So I tossed out an awards program because I've seen that work a number of times.
Carol: What are some other misconceptions that you see folks have about sponsorships,
Lewis: Offering? They view it as a connection with a board member and the board member knows someone. And as a result, oh, we'll set up this. Offering and they think that that's the key value where the board member leaves and often boom, the sponsorship disappears.
Carol: So what would you say are some of the challenges that organizations are facing in terms of sponsorships and building those partnerships?
Lewis: New issue often that they face is the idea of corporate involvement and how we go about it moving beyond. Well, we can offer a webinar or we can offer a slot at a conference, or we can offer a table at a gala because those are just tools. They'll just tools in a toolbox, but what is it that the sponsor wants? How do they want to get involved? What's meaningful to them. And often on the association, nonprofit side, they only see it as well. What can we offer without thinking about it from the lens or from the perspective of the sponsor?
Carol: So what are the types of things that sponsors are often looking for?
Lewis: Normally it's going to, so with associations, are they interested in a specific regulatory area? Are they interested in reaching a set or tying in with a consumer promotion campaign? Or are they interested in an advocacy effort? What issues or challenges that the member base, the distribution list? What are the issues and concerns that they face and how can we respond or are addressed?
Carol: So again, can you give me an example of, of what your of those kinds of situations like th those, those values that they see
Lewis: Let's look at, let's say it's in the accounting space where the association is to provide information. Well, the accounting firms are going to have information on that regulatory issue. And if they can provide that information, be it in the form of an article, maybe a webinar, a conference presentation, a survey, and all of those could be tied together. That's where it's offering far greater value to the sponsor. And it's going to offer value to the association, assuming that they have authority and they best review what's presented and who's going to be presenting.
Carol: And from this, what mistakes do you see sponsors making when they, when they try to, make the most of their sponsorship in that partnership?
Lewis: Often they're looking at it as a short-term game. What we need to have X number of leads. Well, that's generally not how sponsorship works. It's often, well, if you're going to be involved, You're going to get out of it. What you put in for the sponsors needs to. So for example, if it's a regulatory issue where it's an advocacy campaign or it's a specific issue, well, do they develop content? They have resources. Do they have information? That's a value, not just a product demo. They have information. That's a value too.
Carol: So it's getting out of just a pure sales mode then, and thinking about what are the, yeah, what's the information, what's the thought leadership that they can, they can share and provide. And how about on, on the more traditional non-profits sometimes I feel like it's, it's easier to see the connections from an association point of view. But your more traditional nonprofits are also interested in engaging corporate partners. D do you see differences there between the two and, and approach?
Lewis: Yes. In the sense that. From the standpoint of how they go about. Often it's somewhat the same. Yeah. Associations are often looking at it. Both perspectives. Associations are often looking at it saying, well, they should want this. And it's visibility, logos everywhere. The traditional non-profits are often looking at it through the lens of board member connections and how to leverage those, if it's more well, them. So they should sponsor as opposed to what the value is from the company's.
Carol: And what are some steps that organizations can take to get started in this? If they haven't, haven't had a sponsorship program before, what are some of the basics?
Lewis: Sure. So I walk organizations through what, like turn on step up S and the S stands for, well, what's their current situation and looking at who they have as sponsors and who's within their sponsor. Now. And then also addressing the key challenge. What is preventing them? What is stopping them from establishing that sponsorship program? And that could be maybe there's a board resent. It could be that we don't know corporate decision makers. It could be. So one of those challenges, often organizations will, or nonprofits or associations will begin to set up their sponsorship program and, oh, we'll come back to those challenges later. We'll address that down the line and it's when they do. Those challenges are going to pop up again, those obstacles are going to come back and if they don't address that upfront or think through how they're going to address it, there's going to be an issue. There's going to be a problem. So the first step is to evaluate your current situation and figure out how you're going to move.
Carol: I feel like every, every consulting process starts with that first step of figuring out what that current situation is. And when I'm working with groups on strategic planning, that whole process of helping them also have a shared understanding of what that current state is, I think, is also a helpful step that consultants can bring to organizations that they may be. I know for me, when I'm working. Clients there's often a perception or almost a fear that there's such a breadth of ideas and perspectives. And then once you have a chance to talk to folks and get into it it turns out that there's actually a lot more common understanding and shared perspective than people realize.
Lewis: Yes, absolutely.
Carol: So what trends are you seeing in the whole arena of sponsorships?
Lewis: Yeah, the trends are, there's a lot of uncertainty. There's a lot of unknowns. So on both the association and nonprofit side, they're unsure how to move forward. And so what ends up happening is they don't do anything or they don't make changes. So the idea of making changes. And making shifts as to how they're going to approach things. The associations and nonprofits that are going to thrive are the ones that are willing to take those chances. I say, take those chances. They're willing to experiment. They're willing to test and Rocky dies that not everything will go right. And when I say God, everything will go, right? Whether it's an event, whether it's a webinar, whether it's a sponsorship offering, they're going to try something new and organizations recognize that they need to do that. A lot of them won't. So the key is to take a step, make an effort and, and on the sponsor side, there's a lot more awareness of when organizations do that, they respect them. They acknowledge that these are different times.
Carol: Yeah. And I would imagine that, at least in my limited experience, Of just observing what goes on in sponsorship programs from the sides, certainly in working in different organizations. I think what I've seen is a traditional model that's very very event focused often around an annual conference or some annual convening. And, since the pandemic with so many things going virtual there's not that same. I guess it seems traditional, like slack, the logo everywhere. It's just not the same in the online environment. So what, what shifts have you seen with that? with everything that folks have been contending with in the last couple of years?
Lewis: Yeah. When it comes to events, Organizations have learned. Well, if you're just focused on events, you're going to be in trouble because in a virtual environment, whether it's zoom or teams or whatever the format is, you can appease the exhibit hall of 500 people. You can appease a gala where you had a hundred and 150 tables. So moving beyond events is a big component of how these organizations should shift. So earlier when you asked me for examples, the idea of a safety program or a safety awards program, the idea of a specific regulatory issue, when it's focused on a theme or an issue it's for a greater, because then it's not event centric and organizations can be more effective. The issue is a lot of the organizations struggle with how to piece that. If the conference department doesn't talk to the group that handles webinars, it doesn't talk to the magazine area. It doesn't speak to the research area. It's a lot tougher and they need to navigate through that because the truth is if there's good content and it was featured in a magazine or. Well, why not tie that into a webinar? And then why not include that at a conference presentation? Why not tie that into a survey? Why not allow the good content for the good content from a specific source, perhaps a sponsor and others. And you connect that across the organization. It's far better for the organization and it's easier than to establish a stronger sponsorship program. So it's more about themes and concepts. Topics or issues that are of interest to the member base or to the audience. And when that's done, it's far easier to set up a successful sponsorship.
Carol: That's a really interesting flip and I think it, beyond just sponsorship, it goes to a lot that, especially associations are doing around, serving their members being current and getting out of the mindset of, the, the delivery channels of whether it's a conference or it's research or it's, the magazine. But what are the overarching themes of the things that people need to know about the things that are upcoming, the trends the current research is helping, helping people navigate all that without being so caught up in what particular channel that it's being delivered.
Lewis: Yeah, analog organization, they get that's where I mentioned the tools they get caught up in here's a webinar, or here's put your logo on or banner on our newsletter or here's some other offering. And it's all about slapping or pasting logos everywhere. Well, that doesn't offer much value. Whereas it's an awards program, or if it's a specific campaign or advocacy effort or a themed approach, you move away from the tools. Then you move towards what the customer wants and then it could be, and should be far more successful.
Carol: And when the customer wants what you're saying there, that would be the member of the organization. Which customer are you talking about in that instance?
Lewis: Okay. So if the sponsor is interested in conveying their thought leadership related to regulatory issues, X. And they're pitched, here's an ad in the newsletter or here's an exhibit booth or here's a webinar. Well, it's not connecting with them. Those are the tools. And they're interested in this regulatory issue. Well, can they get involved in that regulatory issue?
Carol: Right, right. What are some fears that you would say either staff or board members have about, especially for, I would say on the more traditional nonprofit side of bringing in private sector groups to their, to their organization.
Lewis: Number one is if we take corporate money, how does that impact us? And I'm a big believer that any organization, association, or traditional nonprofit, should stick to their values and their culture, and do not allow a sponsor to dictate or to determine how to handle something, their control, regardless of funding. That's, that's one, the and then secondly, for a number of organizations, if they take. Funds, what does that mean? How do they work with them? And to clarify ahead of time what those requirements are, what those values. So it's easier for them to set up a program that's going to be successful as opposed to just hit or miss and see what happens.
Carol: Yeah. And I would imagine helping a group talk through what they're looking for in sponsors. So the, in the same way that you're talking about flipping the script and thinking about it from the sponsor's point of view and what value they're going to get out of it. But then from the organization's point of view, helping them think through. What is it that we want? Who, who do we want to partner with? Who do we want to give access and who do we not? And like having that conversation without individual sponsorship opportunities in the room, or in the conversation I would think would set them up to feel more confident in moving forward, to look for a potential organization. So it isn't just based on, as you said, the current board members that they happen to have, who they happen to have relationships with, et cetera.
Lewis: Yeah. I mean, when they set the parameters or the guidelines ahead of time, they're going to be far more directed and focused. And it's going to be easier for them to move forward as opposed to, well, we'll walk through the door and whether the company says they would do, and then the board or leadership is looking at that. And all of a sudden they haven't clarified their own values. They haven't clarified their own culture. They haven't set the parameters, they haven't set the guidelines. And often that leads to maybe not a problem at that point in time, but the problem down the line. Sure.
Carol: So at the end of each podcast episode, I play a little game where I pull out a Random, somewhat random icebreaker question. So the one I have, I have three of them sitting here. I always put up for you to just see what let's go to fit. I don't know if this fits or not, but we just, we've just moved into spring. And I think this will actually be being published sometime probably as we're moving more towards summer. But which season would you say fits your personality?
Lewis: Probably fall. And the reason I say fall is in my mind, it's beautiful outside because the leaves are returning the weather's a little cooler, more comfortable. I like to walk with my family. We'll hike and get outside and fall could be a rebirth and it's a change. It shifts. And I liked that. I liked that change. Yeah. The feel in the air. I like how things are changing. So fall follows my favorite season. I think it would describe who I don't think describes who I am. Yeah. I really enjoy fall. I enjoyed the change of seasons.
Carol: Yeah, yeah. Yeah. We're just, I'm enjoying the, the, all the, all the. Flowers are popping up right now and the trees are blooming. And then yes, at the other end, when all the leaves are falling and you have that shift in the weather appreciate that. One of my sisters moved out to California and one of the things she missed the most about the east coast was having seasons so well, I really appreciate it.
Lewis: I was just saying, I love the different seasons. I love how in our area, in the Washington DC area, they're distinct and different seasons. And I liked that
Carol: Yeah, absolutely. Absolutely. Well what's, what are you excited about? What's coming up for you and what's emerging in your work these days.
Lewis: It's interesting as we start to move, hopefully out of the pandemic and working with different organizations. So much for coming back to the fall, there's a bit of a rebirth, okay, now we need to move forward. And then in my role, it's looking at it through the lens of, no, you can't go back to the way you weren't doing it. Let's make those adjustments, those changes, and then move forward.
Carol: Awesome. Awesome. Well, thank you so much. It was great having you on. I really appreciate the conversation.
Lewis: My pleasure. And thank you, Carol. I liked the way you asked the questions. You asked me good questions and the follow-ups are on target in terms of what does that mean to clarify?
Carol: Yeah. Well, what I, one thing I appreciate about doing the podcast is that I'm always learning something new because I get to talk to people about their area of expertise and it's not necessarily mine. So I get to have a little mini-masterclass. So appreciate that and appreciate you sharing your perspective and all your wisdom on, on sponsorships. So thanks so much.
Lewis: My pleasure. And thank you for giving back to the association and nonprofit community by adding resources.
Carol: All right.
I appreciated how Lewis described how to work with your sponsors and potential sponsors to create more value – for your organization as well as the company. That it starts with conversations with the sponsor – what are they looking to achieve? How might you align in your efforts? And for both sides – the sponsor and your organization – that developing the relationship should be with the longer term in mind. If either party is just looking for short term gain they are missing a lot of opportunity and value that could be there. There is also more opportunity available if different parts of your organization are cross pollinating and talking – in an association – staff who are managing the magazine, staff who are producing webinars and other learning events. Are they talking and coordinating their efforts with a sponsor and a tie in? Of course always being mindful of whether a particular sponsor aligns with your organizational values.
Thank you for listening to this episode. I really appreciate the time you spend with me and my guests. You can find out how to connect with Lewis, his full bio, the full transcript of our conversation, as well as any links and resources mentioned during the show in the show notes at missionimpactpodcast.com/shownotes. I want to thank Isabelle Strauss-Riggs for her support in editing and production as well as April Koester of 100 Ninjas for her production support. Please take a minute to rate and review Mission Impact on Apple podcasts or wherever you listen to podcasts. It helps other people find the podcast. We appreciate it!
In episode 48 of Mission: Impact, Carol and her guest, Chyla Graham discuss:
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Carol Hamilton: My guest today on Mission Impact is Chyla Graham. Mission Impact is the podcast for progressive nonprofit leaders who want to build a better world without becoming a martyr to the cause. I’m Carol Hamilton, your podcast host and nonprofit strategic planning consultant. On this podcast we explore how to make your organization more effective and innovative. We dig into how to build organizational cultures where your work in the world is aligned with how you work together as staff, board members and volunteers. All for this is for the purpose of creating greater mission impact.
Chyla and I talk about why it is important for nonprofit leaders to get comfortable with their organization’s numbers, why you have to consider the wider context when you are looking at your organization’s financial statements, and why it is so critical to connect your organizational goals with your financial goals.
Welcome Chyla. Welcome to the podcast.
Chyla Graham: Thanks for having me, Carol. How are you doing today?
Carol: I am doing well. I'm doing well. We're supposed to have rain all day and all day tonight. So it's just an indoor day.
Carol: Yeah. So I like to start each podcast with a question around what drew you to the work that you do, what motivates you and what would you describe as your why.
Chyla: What drew me to the work was, I think I'd like to say it's like the convergence of several things. So I have always been interested in numbers. I'm an accountant. It is the thing I do. It's always the thing I've been interested in and, or I guess more so like the idea of money, like, Ooh, this is a cool thing. And I went from, I was a. So I'd be the one I, Hey, Carol, don't you want to donate $500 and that was terrible at it. Absolutely terrible, but loved learning more about the work nonprofits were dealing with that money. And so that led me to say, okay, well maybe that's where I want to go. And also seeing the idea of Enron worlds com I, all of that was happening while I was in college. And so I was just like, So this is the thing. And so it really made me more passionate about helping non-profit leaders get comfortable reading the numbers, asking questions about their numbers, because I just, I was just like, this could be any of you.
Carol: Yeah. And that, that comfort level with reading the numbers, just asking questions about them. I feel like. Very few people go into the nonprofit sector to manage money. Right. If, if they did, they would've gone into finance and they would've made a lot more money. Right. So they want to help people. They want to help animals, the environment, and some cause. So what do you do to help people get a little bit more comfortable about interacting with them, the money that flows through their organization, then the numbers that keep track.
Chyla: I am nosy. So I think by nature, I'd like, tell you more about why you did the thing. And so I try to get them back to explaining themselves not from an idea of like, I'm committed. I want to know why you went to Starbucks. I actually don't. It makes no difference to me why you went to Starbucks, but I want them to be clear on why they went to Starbucks. I want them to be able to understand that. And so for me, it's being able to say to them, Hey, let's go through your chart of accounts. So we do several things, like as energy, we do several things. We do accounting services where we help them. We do some of that coding, but most of our work, I would say most of our clients are actually in the consulting and education space where we're speaking. Just talk me through these reports as you read them. And in that way, trying to highlight for them. In their own words. What is the thing that works or doesn't work for them in terms of reading the financials? If they're like that, actually I have no idea what any of these pages mean. I just know I get it every month and I'm supposed to present it to the board. And so in that way, trying to dig in with them to say, oh, well, tell me what questions the board asks, tell me what questions you have every month, even though you get these reports. And so trying to help them say, oh, Let me put a list together or what are the things that come to mind? Because sometimes we just don't know where to start. And I think if we start with like, well, what is the thing that comes up every month? Whenever I talk to these people, it gives us a good entryway to say, oh, all right, well, how could I reframe this question? Or what else would I, should I look at to like, get an answer to this question?
Carol: What would you say are some of the common questions that people have whether they are comfortable reading the financial statements or not, or don't even know what a chart of accounts is?
Chyla: Yeah, I would say the most common question is, do we have enough money? It's really all that call that everyone wants. And I was like, is there enough money and context, man? I like to say financial statements don't make a difference if they're not in context or in relationship to something. And so, well, I don't, I don't know if you have enough money. What is your, what were you planning on having? So how does this compare to what you budgeted that might tell us? Do you have enough money? Because we can see how far apart you are or should we be comparing this to blast? If, like month to month things shouldn't change. And so that's the, we were like, Hmm, we have a lot less than we did last month. We don't have enough money. So I reframed it in that way to say like, well, tell me what it is that you're trying to find out. Because some organizations it's not about last month, it's more about last year because they are pretty cyclical. And so they're like, same time last year. How did that look? This is the indicator. And one of the things we started doing more and more is. I'm trying to help clients come up with their own benchmark of how much money per month they should. They, they have directed as their target. I know I liked them for like three to six months. It makes me feel comfortable, but maybe for their organization, they're like three. That's not, it's not a comfortable place. And then trying to say, okay, A thousand dollars, a hundred thousand thousand feels too small for this example, a hundred thousand dollars in the bank. And each month you're expecting to spend 50,000 you're two months worth of cash. And so just saying like, let's do simple math on this. We have this much in the bank. We know, we expect to spend this much each month, let's come up with that calculation so they can say, okay, yes, we have enough. And because two months is comfortable or no, we don't because two months is just not.
Carol: Your firm offers accounting services, but you, as you said, you're more in the consulting and coaching and you really focus on strategic financial management. Can you say a little bit about what that is and why it's important for organizations?
Chyla: Yeah, so I think I'll share it. She does financial management. After the board has identified some goals. Cause it makes no sense for me to say, like, these are your goals. If your board is like, well, you actually have a different vision in mind. So after your board has identified what the goals are for the next year, next three years, having a conversation about, well, how does that impact our finances? So sometimes we see organizations who say we need to expand our programs. We want to be in this many vocations, or we want to serve this many more people. And for me, that begs the question of what would it take to get there? Does it take more staffing? Does it take more computers? Does it take, like, what is it, what are the pieces? The tangible pieces that it actually takes to get there and help them build out. Okay. Is that a realistic plan? Because sometimes we say. Self included, guilty of being, I want to do all these amazing things and, what is the budget? Actually, maybe we should scale back accordingly. And trying to help them reframe that to say, okay, if this is the goal, what would it take to build the infrastructure we need to get there? Because sometimes it's not even about, we need more people, it's I need computers that don't die on me. I need something that's faster, stronger, whatever it is. I'm really trying to say that. Let's think that through and let's plan ahead. And if we look at your, if the fundraising goal, we want to raise a million dollars. Okay, cool. Let's look at your current trends to say, how do we manage those so that we can think of what are some times we should be, be heavier in the fundraising? Because we know from a cash perspective, we actually need this money to show up. And saying, let's plan that three months in advance, next week we will not have any money. I don't know who would have known this. And I'm really trying to say, let's just take a step back. Let's take, think about all the goals that we have, all the big picture items and make that a real, realistic thing and say like, Pencil bank. What, what do you have for me? And I find that that makes it a little bit easier putting those trends together because sometimes organizations don't, when I say we have an April development plan, I know we need to fundraise. And I just know I have to hit this number. When do you need to hit some of this number though? do you really need to emphasize in the first quarter of the year? And say like, okay. In March, I need to be talking to Petra. Has owners submitting all my grant applications that have X turnaround time because in June is where we see a real. We're short on cash and we want to know we've had those conversations already, as opposed to saying, I know it's May 31st. Would you like to write me a check for tomorrow? Thank you. that's what I think of as that's your CJ financial management. It's helping them see the big picture, helping them plan out. When do we need to start some of these activities, especially if there's not already a plan in place, because maybe there are more people involved that we need to integrate into this plan and help them think. That board member. I need to give them steps like this. It's not just like, oh, you can just fundraise. No, no, they can't. Well, not necessarily. Maybe they can. And really saying like, we need to build this out as a plan, as opposed to just like this morning, I woke up with this really great idea.
Carol: Yeah. It's interesting that you talk about stepping back and seeing the big picture, because I feel like. And in a lot of ways, that's the role of consultants for pretty much any aspect of the organization, whether you're working on finance or fundraising or marketing or operations, it's often, let's take a step back. Let's see where we are. Let's look ahead, look back where, where were we a year ago? And just helping people pause and have some perspective on what they're doing. You talked about how context is really important. And obviously every, every organization is a little bit different, but are there some key financial things that board members and staff members should really be tracking for the organization? You've mentioned cash as one. Yeah. What other things are really important?
Chyla I would say. Looking at the trends of when are there peak seasons in terms of revenue coming in, even if that's not actually fascist more of the pledges idea what, what are those timetables? And also on the expense side, what's the timing of things, because sometimes we. We assume we have to pay for something earlier or later. And that's just the piece that causes more stress and angst. And I have, I've worked in the non-profit environment. I've, I've been on all sides. I've been the auditor. I've been the auditee I've been, now in the consulting space. And being able to say, actually, I'm going to call up this vendor and say, can we make this payment on this day? And really thinking about it, to say, Hmm, are there payment arrangements we need to be making I've there's one organization we support where their board wants to know about accounts receivable, because for them they want to know, is there someone on here that we have a relationship with that us as a board member, this is the way we could support. And really thinking if it pledges something that your organization does and your board members are helping you get those touches, how do you delegate to them? And how can you help them say, AR is really high and we would love you to, this is the place that you can think about. They should also be thinking about the relationship items have to one another. I said, I was, I've been in the oddest space before, and I remember one client. We had a good meeting, there was not anything intentional, like miss dealings or theft. But their finance director was still overwhelmed. It was just like I'm just going to put in a number. I think this is how much we should have. I think revenue should be about here. And I like to think about what's the relationship between the numbers. really trying to say like, well, in theory, if our donations went up, we should either see an increase in. Well, we should see an increase in accounts receivable. One of those two things should happen. And really trying to say like, okay, I didn't see an increase. What does that mean? Where, what happened to this magical money that we received and really try thinking through what are those relationships, same for, if our expenses are going up, does that mean we either have a high account payable? The people we owe. we have a new loan. Do we have, or less cash? . Have you seen the movie? All the Queen's horses. Okay. I can't remember what city in Illinois, but it's about theft and mismanagement. And what happened is the finance manager for this city is a small, small town. I mean, I was taking out loans for. And it was said that it was going to be for rotor repair and all these things, but the people kept writing over potholes and she kept saying to me, that was a great indicator. You're like, well, if we were getting loans to do repairs, why aren't the streets repaired? Right. Right. And just making those, you didn't have to do a math calculation. You didn't have to say, I need to know how much meat, how much we borrow. Exactly. But you could say, even if we're not seeing progress, it'd be, see the people outside. Like we all know construction on roads doesn't necessarily feel like it happens fast, but do we see people working? No. Well, what happened to the money? And just making those types of conclusions or relations to say, I might not be able to do any fancy math or any quick math, but. This number feels like it should go up or down, or I should see we have new hires or I should see, we've got more supplies in the closet, something to say, like, these things tell us that this isn't just a made up number someone isn't just like, oh, that looked like a good route. It's actually saying like, oh yeah, we got a lot. I see where that load proceeds.
Carol: Yeah. it makes sense. What would you say are some. Differences in the finances for nonprofits. it's important for staff members and board members to understand. , different from a for-profit organization. Cause a lot of board members, they, they, and then they may actually be recruited right. For their, for their business background. But what are those differences that are important to be aware of?
Chyla: Yeah. the first one that typically trips people up is the name of. And the statement of activity for a nonprofit is the income statement for a for-profit business. And remembering that language is like, what are we doing? Is it an activity? How do we make money? We did a thing. We made money or we lost money. remembering like, oh, what did we, what does that mean? And then the same financial position is the balance sheet. it's at a point in time. On this day, we have this much happening. that is a really easy place that people were just like, ah, I don't really know. Another thing that I think people should be mindful of is the commitments to. From donors. in the for-profit world, we are typically providing a service or providing a product and we can say, hi, I did this thing for you. Please pay me. And in the nonprofit world, we are really exchanging goodwill. We were saying, would you commit to supporting this message mission? And sometimes we say, like, we ask people to commit a pledge. And one of the things I like to say. When should you record it? like in a for-profit you'd be like, listen, they said they were, they started that contract is their end. And in the nonprofit space, you have to say, let's take a step back. If this person was unable to. What would our next steps be? If your next steps would be like, we are going to Badger them, we are going to make sure we get that money. Great record. Yes. That is revenue. That is yours. But if you're like, you know what, it's not worth it to lose a relationship. Or if you feel like we would lose a relationship over this and just don't, don't record it because in essence you're, if you're not going to follow through on it, or there's no requirements to follow through, you would say, no, that's not. There are instances you could definitely say like, okay, maybe we'll put a little buffer. We'll say maybe we won't collect some of it. And those are things that are for-profit businesses. that's a similarity. A for-profit business would be like, I messed up invoice you, but here's how much I probably won't get. And a non-profit in some cases would say the same thing to say, like, we are committed, we are going to follow up, but we recognize some of this. We might just not get it. And so being able to see. Have some of those conversations say like, are we allowing for any of these sites and you have a business background to say, like, see the invoices aren't going anywhere. And I don't know who these people are, I can't call them. should we just have a conversation as a whole to say, what are our thresholds? What's our risk tolerance? So that. they can be good stewards. That's part of why they came into this. They're like, I've got a big background. I know what it takes to collect some money. And I know sometimes maybe it's just not worth it to say, like, those are some places that they could really chime in and be a part of and have like an engaging conversation. I think another difference is that trips up everyone, even if they're in the for-profit world, becomes the idea of donor restrictions. And what, what does that mean? What do you do? And don't the restrictions just mean the donor said, you need to use my money to buy, to build a gazebo. You can't use it for anything, but this was evil. And that that's a donor restriction that is saying, well, you can only use it for this thing versus. Something that's not restricted where there's just like, here's some money if you'd like to buy it. Cause those are those, great. Like you want to pay salaries also. Great. And being able to say like, well, what, what is that? And why does it matter? It matters because more and more. We're seeing what I'm seeing in grant documents and donor documents. If you don't spend the money for the specified rean, or by the specified time, you need to return the money. And it's always good to have a handle on, Hey, what's money that we might either need to spend by a certain time. there might be a time restriction or purpose requirements or we might think about, do we have to return. And should we not count right now? Those are, those are pieces. I feel like we are constantly changing and have a nice, high-level idea of how much of this might mean we need to turn back and how much of this we have to commit to a cause. In some cases it might not be relevant. I say, because Debo, because I've seen it, I've seen where people are like I'm donating $5,000 for it. Cause Eva, and then no one else. maybe money for it. Cause he wants to, we're like, that is not enough money to eat. Can you call that donor and see if we can get that money unrestricted? And those types of things are really good. I'll be monitoring.
Carol: Yeah. And I think just in terms of those grant timelines and, and the time restrictions, it seems like that's something where, if you're running up against it, reaching out to the grant maker and seeing, can this, can, are you flexible on this, this, this, or, do or die can be helpful. I mean, I think the other one, the other mistake that I've seen people make is to interpret non-profit as no profit. Well, yes. And, and really believing like, oh, we can't make any money. We can't have anything left over. what, what do you, what would you say about that?
Chyla: I try to remind them what would you do in your house at the end of the month? And then rent was due the next day. You, that wouldn't be a comfortable place. And thinking of your organization in that way, we don't want to go to zero every month because the next thing will arrive. And really thinking of it as you're not hoarding. You're not there. You're not necessarily saying like, ah, we're just building our reserves for no reason. Everything has a reason. And they're identifying that we're building our reserves because we want to launch a new program in three years. And , no, we're not spending it today, but we know it's going to come up because it's part of our strategic plan or thinking through like our staff gets, it has to get paid like every, every pay period, right? Oh yeah. We should probably have some money in the bank to do that. reminding them that it's not about. Hoarding of resources. It's more about what is the timing of some of the things that we have coming up to complete our mission and what do we want to make sure that we do so that it's not a surprise? That's the whole point of having to think about how much cash we have so that you can do the unexpected. And part of some nonprofits is trying to think of better ways to do that. And sometimes that doesn't come with any funding and you have to say, we need to have the money on hand. And reminding yourself like this is to do something that a funder doesn't yet see the value in, but we do know it's important. And just reframing. This isn't an arbitrary number. We're not picking three months for no reason, we're picking it because where it's, if something were to happen and we want it to still provide the services that we do, we would be able to, and our community wouldn't go without, because suddenly we, we didn't have it. getting beyond ourselves and beyond like what people might perceive us to do. I think that's where that comes in. People are like, well, they're going to see that we have so much money. They will see that you are responsible people and thought to save money for salaries and for program materials. That's great. I would love them to see what you are doing.
Carol: Right, right. Yeah. it's all, it's all about. What's the purpose and what's the goal? What's the strategy? at the end of each episode, I like to play a little game where I ask a random icebreaker question. I have a box of them. I always put out three before the interview and then pick one. what's something about you that surprises people when they first hear it?
Chyla: Usually that I'm an accountant
Carol: Say more, say more.
Chyla: That is typically the thing that people are surprised about, which I find amusing. More because I think I get perceived as very pernal and high want to have a conversation with you. And I'm like, I am, I'm definitely an introvert. Definitely. But I manage it really well. And I'm like, I can do the people thing. And I remember I used to have a quote. I was like, I've met my word quota. I can't talk to any more people. I think that piece has been the piece that, cause I don't tell people, I don't usually tell people work. What are you doing? I'm like, oh. That's a boring conversation starter. it's usually the last thing I share about myself. And that's typically something that I'm like, oh, I did not guess that.
Carol: Yeah. Yeah. I've, I've met a lot of accountants that did not fit the stereotypical mold of whatever, whatever people perceive of as and it's great. It's great. Yeah, and I also, I also saw something recently where somebody described themselves as a social introvert. And I was like, I can relate to that because I get it a lot too. Like people aren't you talking to hell with all these people. Yeah. But then I need to recover. I'm like,
Chyla: Saturdays are typically my day. I'm like, you want me to do things with people? Well, they would, they would be in my house? No. Oh, absolutely. I don't know if I can, at least when I come to my husband, like I can, I can manage this. But otherwise.
Carol: what are you excited about? What's coming up next for you and what's emerging in the work that you're doing?
Chyla: We are doing webinars for our. Online course. So helping nonprofits get more money, greater impact by just being more transparent about their finances. I'm really just digging into, like, what does that mean? How does it look? Because people get scared. People get nervous. They're like, I don't know what that I don't want to do. I don't know if we should be transparent and you should. But helping them figure out what that framing looks like and what that means, because we've definitely. With our clients that we work with when they've been able to say, this is what we're doing with the money, or this is a thing that you're looking to build, we've been able to one, identify more resources available because wow, thank you for telling me what you were going to do. There's money available for that one thing. So that's that piece. And there's also just the idea of, there are some donors who just want that level of transparency and they're like, oh, you can tell them. Cool. Here's some more money. And so just being able to do that is really exciting. It's been a thing that's been in the works. I'm just like, oh, Kimmy. And I have to do it now. Oh, okay. So they interpreted to me 'cause like a sport infer and the food lever baker in me, it's like, I have a slice of cake that is ready. I'm like, you're going to do it. And then you're in a warm beer cake. So the caramel is nice and soft and runny. And you're going to be like, look, you've finished. The thing that you were really worried about. So that is what's out on the horizon.
Carol: So the, you mentioned the course, what's the, what's the course that you're offering. Yeah.
Chyla: So, well, the course itself will be about other sitting financial management from a nonfinancial perspective. So we'll go through the first year mission. Why? Because I feel like if you, if you forget, when you straight from that, it becomes really hard. You're like, why are we doing this again? And so just recentering your mission is in that conversation about budgets and finances and all of those things, and then thinking about your priorities. So how do we, how do we rank the budget? How do we think about the chart of accounts, all those things that indicate what matters to the organization. Then we go on to actually using some tools. And so I don't necessarily need anyone to become a bookkeeper or a QuickBooks expert, but being able to say, all right, I know what a bank reconciliation is and what I should look out for, because again, part of this is managing those people and just being able to say like, Where should this be? Or how could I reframe that question? Because sometimes it's hard to talk to your bookkeeper or accountant. Cause there's like, I don't know if he spoke the same language. I don't know what they're talking about and just giving them some tools to help frame that. And then finally, it's about storytelling. How do we look at the financial statements and rephrase some of the things? How could we show some things differently? So not changing any numbers, but just updating the presentations to something that's more. Palatable more understandable for the people who actually need to read them and make decisions based off of
Carol: That sounds great. That sounds like a really, really needed resource for the sector. So thank you for creating that. Thank you so much for coming on the podcast. It was great to talk to you.
Chyla: Thanks for having me.
Carol: I appreciated Chyla’s point that as a board member you don’t necessarily need to be a financial expert but you do need to pay attention to when things don’t add up. Not just literally the numbers – but when the narrative does not match what is in the numbers. A staff person says donations have increased but the numbers don’t match. The story is we have taken out loans for more staff but no one else has been hired. Where is the money going? Often it is about paying attention and asking the hard questions. And it is often because the people tasked with managing the finances are in over their heads – not necessarily because anyone is doing any malfeasance. Although of course that does happen in the sector and you certainly don’t want to be on a board when the organization gets in the paper for fraud or embezzlement on the part of staff or volunteers.
Thank you for listening to this episode. I really appreciate the time you spend with me and my guests. You can find out how to connect with Chyla, her full bio, the transcript of our conversation, as well as any links and resources mentioned during the show in the show notes at missionimpactpodcast.com/shownotes. I want to thank Isabelle Strauss-Riggs for her support in editing and production as well as April Koester of 100 Ninjas for her production support. If you enjoyed this episode, please share it on your favorite social media platform and tag us. We appreciate you helping us get the word out. Until next time!
In episode 47 of Mission: Impact, Carol and her guest, Julia Campbell discuss:
Named as a top thought leader and one to follow by Forbes and BizTech Magazine, Julia Campbell is a nonprofit digital consultant on a mission to make the digital world a better place. Host of the Nonprofit Nation podcast, she’s written two books for nonprofits on social media and storytelling, and her online courses, webinars, and talks have helped hundreds of nonprofits make the shift to digital thinking and raise more money online. You can learn more about Julia at www.jcsocialmarketing.com/blog
Important Links and Resources:
Carol Hamilton: My guest today on Mission Impact is Julia Campbell. Julie and I talk about ethical storytelling – what it is and why it is so important for nonprofits to consider as they share stories of their impact, the misconceptions people have about social media and its place in your organization’s marketing mix, and why leveraging your owned marketing assets is key.
Mission Impact is the podcast for progressive nonprofit leaders who want to build a better world without becoming a martyr to the cause. I am Carol Hamilton, your podcast host and nonprofit strategic planning consultant.
Welcome, Julie. Welcome to the podcast.
Julia Campbell: Thanks so much for having me, Carol.
Carol: So I'd like to start each conversation with, what drew you to the work you do? What motivates you and what would you say is your why?
Julia: I have always been very attracted to social justice work and social justice issues. And when I was in high school, I was involved. I couldn't even vote, but I was involved in the Clinton gore campaign. I started a recycling program at my high school. There was no recycling program. I just have always been very involved in activism and changing the world for the better. It sounds simplistic and cliche, but I really always have been. And then in college I volunteered at several different places in Boston. I went to school in Boston. And decided to enter the Peace Corps. So I was in the U.S. Peace Corps, for two and a half years after I left, , after I graduated from college. And that was where I really worked, started working with international NGOs and other organizations, and also started fundraising and truly understanding what it takes to make a difference in a culture because I feel like, I feel like with the Peace Corps, especially. I'm just speaking for myself, but I also feel like this is a, this is almost a, how people perceive us is we do have this white savior complex where we go into these countries and we think we're gonna change everything and make everything better. And what I really learned was that you have to. Immerse yourself in a culture and listen and hear the stories and truly understand what's going on. And you can't just say I'm gonna come in here and build a well and raise a ton of money for a well, and then leave. And that really opened my eyes because a lot of the NGOs were doing that. So when I got home, I thought I'm going to work. For nonprofits, but really help them understand how they do fundraising, how they do marketing and, and if it is maybe harmful to the communities that they're trying to serve. So I've worked in domestic violence. I've worked in international relations. I've worked in early childhood rape ISIS centers. I've pretty much run the gamut from large organizations. I worked at Boston university where. I graduated. And then I've worked in really small organizations with tiny budgets. And I think the work that the nonprofit sector does is so incredibly vital, no one else is gonna do it. Okay. The government can't do it or won't do it. The private sector won't do it. So we're filling this really important gap and solving these problems. And I just feel really strongly that people need to be advocating for the sector. And I'm just, I'm just such a strong advocate for it.
Carol: I realized when I was looking at your bio that, that you were a returned Peace Corps volunteer, and I think you're probably at least the third guest that had that, that experience, that background,
Julia: We always end up a nonprofit don't we?
Carol: AmeriCorps, I really appreciate, the perspective that you got there helped you come around to how stories are used, and how they can be used for harm. There were a lot of common practices, , and I'm not a fundraising person, but, just observing, being in the sector in fundraising that now people are questioning and saying, that's really not exploited ethically. It's very exploitative, and so I'm curious about how you're helping organizations shift that and tell their story, but not take advantage of the people that they're actually trying to help.
Julia: There's an entire. tidal wave in the sector right now. I think because younger people are starting to take the reins and younger generations do not put up with things that we have put up with in terms of exploitation or unethical storytelling, unethical practices, and they will call you out. what we learned in terms of practices and fundraising, when we all, I didn't study fundraising, but I read a ton of books. I took a lot of courses. I went to a lot of conferences. Mostly predominantly taught by white people. What I learned was you have to pull these heartstrings, you have to tell these sob stories. You have to start from a place of, of deficit. And it's called deficit thought basically. So then I started to study. I didn't feel very good about it. And I started to talk to other people. That we're doing fundraising work and saying, no, there are stories of hope and inspiration, and there are, they don't need to be tied in a bow. You don't need to say, oh, everything's, , grand and Mary Poppins ask. And it's just, it's not the reality, but still, if you think of the Sarah Locklin, the arms of the angels where she's singing and there's all these abused animals around her. And it's the shots of these dogs and cats. And it's always played on cable TV and they, the, as BCA pulled that ad because they did raise money from it initially. But if you're constantly doing that storytelling, it. It's not only unethical, but it's very fatiguing and people get numb to it and people, they wanna turn it off. They grab the remote. There are whole stories of people saying, oh, that ad came on and I had to like, actually leave the room and I couldn't deal with it anymore. The other thing is the. Giving the person that is sharing their story agency and making sure that they understand that this is not necessarily their defining moment. This is just something that happened to them. The terminology now has really shifted. And I think it's interesting where we don't say. And I'm still working on this and I'm not perfect as well. We don't say homeless person, we say a person experiencing homelessness. We don't say domestic violence survivor, we say person experiencing domestic violence or person living with a disability or person living with misuse and substance abuse. The terminology has changed. We don't make the experience that someone is having be the focal point of their whole life and it doesn't define them. And then there are, there are all sorts of interesting studies and all sorts of people talking about ethical storytelling using terms like at risk vault, vulnerable. I think you can still use marginalized populations. It's changing all the time. I think it's interesting. And to me, I don't think it's about canceling people or telling people they're wrong. If they use a certain term, it just opens up a conversation for something that I think is really interesting. And I think the sector does need to do a lot of introspection into how we might have, we shared all of these videos of kids in Africa with bellies descended and flies around their face. And if you look at the work of charity water in particular, one of my, one of my favorite charities, you can love them or hate them. Their whole perspective was we wanna make giving joyous. We wanna make people happy. We don't wanna guilt people into giving. We wanna make people excited and proud to be a part of what we're doing, and that's gonna help retain donors. And that's gonna help people continue to give, because if they're constantly guilted into giving, it's not good, so we wanna make people feel great about giving and feel proud about being part of the cause.
Carol: One of the areas in addition to storytelling, or I guess it's not really in addition, it's a way to deliver a story. You work a lot with helping nonprofits with their social media and social media presence. And I feel like it's an area that can really trip people up. What would you say are some of the key things that people need to consider in pursuing a social media strategy?
Julia: They need to consider how much time it truly takes to be successful. We need to get out of this mindset that it's free. So Carol, I could come to your house and give you a puppy for free. I mean, I don't know if you want a puppy,
Carol: I got one of those free puppies and he cost me like $150, the first visit to the vet.
Julia: Exactly. And then walking every day and feeding them. It's like, technically, maybe having a kid is not free because of the medical bills, but you could technically have a child in the middle of the woods for free, but then of course, there's so much upkeep there's upkeep, there's taking care of what you've created. So I always give the analogy of the puppy because. Yes, it sounds great on the surface. It's free, but your time is not free. Your effort, your energy, your bandwidth, none of that is free. And then also of course, as we know now to really get more visibility, you do have to play the ad game. Whether or not you think it's ethical to pay Facebook. I'm constantly going back and forth on that, but there's also lots of other platforms, YouTube, LinkedIn, Pinterest, TikTok. There's so many other platforms that we can explore. So what I do, and I'll just summarize it really quickly, I teach nonprofits the four pillars of social media and management because, you can't say I'm just gonna get on TikTok without doing all four of these things. And so something else is gonna have to come off your plate. So the first pillar is Listening, going there, being on let's just take TikTok. For example, being on TikTok, listening, watching, lurking around following people, seeing what. See, like taking webinars, reading blog posts really figuring out, okay, what's going on on this platform? What would my audience wanna see on this platform? That takes time. The second pillar is Content Creation. You have to create the content and you have to create it specifically for the platform. What you put on LinkedIn is not the same as what you're gonna put on YouTube, it's not the same as what you're gonna put on Instagram. So you need to have that content creation strategy specifically for the platform. And then the third pillar is Community Management. This is following people, looking at who's following you, going in, responding to comments, responding to your DMs, interacting in conversations, going into chats, being present because social media is a two-way street. You can't just use it as a billboard or a newspaper ad. Then the fourth pillar is Measurement and Analysis. Really taking time. This doesn't take three hours a week to do measurement analysis. If you're on one platform, you can quickly just do a scan and say, are we growing? Are we not growing? What posts were popular, which were not popular? What happened this week? Just do a scan of it. And then the key with pillar four is the reporting out, because what we don't wanna do is do our work in a vacuum. And we wanna report to the board. We wanna report to the staff. We wanna report to executive directors because we wanna show them this is actually work. A lot of them still think it's tweeting about what you had for lunch. I have never once tweeted about what I had for lunch ever. I probably have put a picture of a cappuccino or something on Instagram, but I've never done that. And that's the whole misconception that this is not an actual job. This doesn't require actual skill, but it really does. So every time you think about it, should I be on this platform? Should I adopt another platform? Are you doing those four pillars? Are you accomplishing those on the ones you're already on? And then if you're not, you get, you get those ducks in a row before you jump on another platform.
Carol: When I was thinking about, just for my consulting practice, how I use social media and that the second, the first thing that you said of how much time do you have to. To give to it. I was like, okay, to be reasonable, I'm gonna pick one. I do LinkedIn, that's it.
Julia: And LinkedIn is great for B2B. Like that's the best place to go for B2B.
Carol: I just felt like the other places it's like probably not where people are hanging out.
Julia: , but, and also actually it's a really good point. I just had. A podcast interview with my friend, Angela Pitter, who's a LinkedIn expert. And what she said was, you have to think about what people are doing on the platforms. Like you said, they're not really on Facebook looking for people to connect with professionally. They're hanging out with their friends, they're watching cat videos. They're doing fun things with friends and family. They're looking at the AB pictures. They're not necessarily using it the way people use LinkedIn. So I think that's smart. I think that's a very smart, strategic move.
Carol: The only thing I practically go on Facebook for anymore is to see what picture I posted or what I posted eight years ago.
Julia: I like the memories to look at, I like memories. I always wish that I could get off Facebook. I can't escape it, but I have Facebook groups that I run. So I can't. Right. Exactly. I can't officially leave. Exactly, exactly. But I do, I do spend a lot less time on it lately.
Carol: And I think that for a long time I was just posting, right. Then I heard the phrase, the posting and ghosting, and that's a sense and ghosting. Then more recently just, I started doing the other things that you're talking about by actually getting in their comments ending on people's engaging and, it was more satisfying actually to, feel like you're, getting to know people that way. And actually, I think we connected originally cuz you had posted something about getting on podcasts and I was like, oh I've got one and we yeah. Talked to each other.
Julia: That's what I love. It's like an actual LinkedIn memory Michelle received. Right. Really? Yeah. I posted that. I said I'm really interested in being on more podcasts this year. I have my own podcast. I'm just putting it out there. I had so many introductions. The LinkedIn community is so generous and so welcoming and just so happy to make connections with other people. I found it to be a much warmer community than Facebook.
Carol: Which is ironic, right?
Julia: It's ironic, but all of the CEOs, they make their own decisions about what they allow on the platform and what they don't and what they make go viral and what they don't. And I think Facebook, especially the more provocative, the more angry you are, the more negative you are. That's what is going viral and getting eyeballs. And that's why that's what we're seeing.
Carol: One of the misconceptions that you talked about was that it's, well, it's just free. It's something that somebody can do on the side. What are some other misconceptions that people have about social media and their marketing strategies?
Julia: I think there's, there's so many, one that I would say is that it can substitute for other things that are working. Social media is really the icing on the cake. It's really one of those things that people have definitely built their business on. But how I feel about it is I feel like you should be using it and leveraging it to bring people into other owned platforms. So your email list, maybe subscribing to your blog. Making a donation on your platform. You need to be consistently bringing people over to your owned platforms because social media is rented land. They can and will and do pull the rug out from under us very frequently. Do you remember when Facebook pages started? I will never Forget this cuz I was working at a nonprofit and my executive director called me and said we have to get a Facebook page. And I was on it, , because I had, I still had my college account, so I could still like get on it. I wasn't in college at the time, but I had an EDU address and I said, I don't know, like, is this a marketing place? Is, is all college kids, like just talking about stuff, but. She said, no, it's gonna be free and it's gonna be, it's gonna replace websites and it's gonna be a free way that we can talk to all of our fans and followers. People still think that. And to me, I think if we look at the data, you really can only reach a tiny percentage of your fans and followers. You use social media, not to say that if you have built a community, you should leave, but we need to be consistently bringing people over to our email list and our own. Properties where we can then build a deeper relationship with them. And also you can bring an assumption you've earned and its permission based on your email list. You can bring that email list anywhere you can change providers. If you don't like this one provider, you can communicate with these people. You can use that as huge leverage. And if you, about the way. We use email. It's a much more intimate experience than social media, because a lot of us are spending less time scrolling on social media, but we still all spend the majority of our day in our inbox. A lot of us. So to me, I do teach social media marketing, and I think it's a fantastic way to reach new audiences and younger audiences and to do fun things and experiment and build ambassadors and, and really, advertise events, things like that. But I don't want people to put all their eggs in that basket. We have to have a multi-channel digital marketing strategy that also includes our website search engine optimization is essential. People are searching. People will never stop using Google. Maybe they will. One day Google became so popular and huge. We want people to be able to find us where they are. So the other misconception that is really popular is that you have to be on all the platforms and you have to just cut and paste what you do across all the platform forms. What I've seen now, the trend is people are two platforms. Maybe now I need to start doing that because I need to really start focusing on two platforms. I feel like I spread myself so thin and I think a lot of us do, but the trend now, if you go to influencers websites, or if you go to brands that are just starting out, they're not gonna, they're not gonna see the 27 little logos on the bottom. You're gonna see Instagram probably, and maybe Twitter. and that might be it, or maybe YouTube. It depends if you're video based or visual based, or if you're text based, like LinkedIn is fantastic for B2B and consultants, but I do see the streamlining as being a big trend and the going all into one or two platforms as opposed to being everywhere at once. And I actually think that's a gift to nonprofits because we can't be expected to manage, unless you're a full-time social media person, which very few nonprofits have you cannot be expected to do those four pillars that I talked about on seven different platforms every week. It's just not feasible.
Carol: You used a phrase, “your owned properties, social media is rented.” Can you say a little bit more about that? I don't know if people exactly get what you're saying there.
Julia: Say you have an event in person or virtual, someone signs up for this event, permission based. you ask them to come. They come. Whether it's on Zoom, whether it's in-person, they give you their contact information. You now own that contact information and you have it. And if someone goes to your website, signs up for your email newsletter on your little form that I hope you have on your website, if someone subscribes to your blog, if you have that old school, like I have on my blog, WordPress. People can subscribe to your blog. Those are owned. You own those, and you can take those wherever you go. Sure. people will unsubscribe and move and email addresses will bounce. And that's not what I'm saying, but you do not own. You can't upload your Facebook fans. And this is a big problem. You can't get the contact information from people that donate to you on Facebook. So what I would do is just take these tools for what they are. Raise money on Facebook, raise money on Instagram. Don't worry about the contact information, but don't put all your eggs in that basket. You own your CRM, your database, you could switch a database and still bring all those contacts with you. Your direct mail list. You own that. So. To me. I want us to build our donor files, our supporter files using these tools. These amplifying tools are what I call them, but we can't just say, okay, we're not gonna have a website or an email list anymore because we have Facebook. Remember the day that Facebook went down the whole day? I was actually running a fundraising, paying for a client and we had. Multiple posts that were gonna go out. We were gonna do a Facebook live. We had Instagram posts and we had to completely cancel all of it because both platforms were down for the entire day. And we had no control over that. So we had to rely on email and we still did a lot. We did things like a YouTube live, but what I learned was that we really cannot rely on this. Like, this is just a good to have, a nice to have, but we can't put all of our effort and all of our eggs in this basket, because what if it went down, like, I'm just thinking of Giving Tuesday. If Facebook went down so many nonprofits would've lost thousands of dollars. So it's good to have, you need to have it, but focus on the other elements of your marketing program that you can, you have more control over?
Carol: I remember when Facebook first started having the fundraisers, I think they were linking it, like it's your birthday, have a fundraiser. And so I did one and, I didn't realize at that point that the nonprofit that I did the fundraiser for wouldn't actually get any information about who donated. This is not helping them - it's helping them in the very short term.
Julia: I kinda have a different perspective on that, so I don't mean to interrupt you but, the way I feel about Facebook fundraisers is yes, it's not a way to build your donor file long term. You're not gonna get major donors and plan givers and like to build this funnel, but. I'm sure that a lot of your friends and family had not heard of the nonprofit. So they were exposed to a brand new organization and they gave because of you, , they didn't necessarily give because they supported the organization they gave because of your birthday. And then honestly, I've given for birthday fundraisers. And then I have on my own, looked up the nonprofit later and got on their mailing list and maybe got more information. So I really see birthday fundraisers as marketing. It's like a marketing piece. Interesting. Because think of your friends on Facebook, they all saw that, and then their friends saw that, like, if I donate to my friend Melissa's birthday fundraiser, I post about it and then my friends and family see it. So the way I think about it is it's much more marketing based than fundraising based. And yeah, you're never gonna build your whole fundraising program on Facebook. And what's, what's also interesting though. about Facebook. They developed that because you remember the ALS ice bucket challenge. I can't remember what year that was. There was no donate button on Facebook. So what Mark Zuckerberg saw, because I do believe that he is like, actually a diabolical. Like, I don't know if he's evil, but I he's, he's like a genius and I'm not sure if it's in a good way, but what he saw was. Oh, everyone's donating, but they're going off of Facebook. So I wanna keep everybody on Facebook. I don't want people going to als.org and making a donation and then maybe not coming back to Facebook. So he created the donate button, really? Not out of the goodness of his heart. I mean, they know we, they say. But it was to keep us on the platform. So they wanna be in all encompassing, all, one ring to rule them all thing. And that's always been the way that they've been thinking about things. So when we think about the donate button, there are no fees involved. Fantastic. The reason we don't get the donor information is because it was never created for us. It was created so that we would stay on the platform. And so that, I mean, it's a bad user experience. It's. If you get my data and then you start spamming me or you start soliciting me again, that's bad for me. And I would blame Facebook. So if we look at it from a business perspective, it makes total sense not to give the data because it would be a bad move for them. This is also how we just have to look at social media. We can't have color glasses because we have to understand these are multi-billion dollar businesses and the answer to them. They're shareholders. So that was a little bring of their own, but I don't think people know how the donate button came about. I think they thought it was interesting. Oh, they wanna do something good for nonprofits? No, they just wanna keep you on the platform. It's really true. It's totally true. Yeah. I'm reading that amazing book. , I can't remember who it's by. It's all about Facebook. It came out a couple of years ago and it's really eye-opening and pretty, incredibly amazing. So I teach it, I love it. I think it has power and potential, but I always take things with a grain of salt when it comes to these platforms. ‘Cuz I just think, okay, shareholders, shareholders, they're businesses. They're businesses. They're not nonprofits like we are. Yeah.
Carol: And I really appreciate the perspective of its amplification. It’s nice to have the extra, but it's not the core pieces. So one thing that's interesting when I'm, when I'm doing strategic planning with organizations, I feel like almost every group, one of the themes that comes out of all the conversations that I have with people is we're the best kept secret in blah, blah, blah
Julia: Are we though?
Carol: Now that I've heard it from so many different groups, I'm just curious, like how. I don't know, like, yes. How do you get over that? Is it important? Is it important for every group to be a household name?
Julia: It's not possible. I don't think it's possible. That's true. I think of the organizations where I live, some of the really small organizations, like I live in a town of 4,000 people and if it's a food bank, it's a village technically. And if it's the library here, it's not going to appeal like 4,000. It's kind, probably the limit. Maybe people that have lived here and moved, but you're not gonna get 300,000 Facebook fans. It's just not going to happen because you are serving such a small community and it's such a targeted niche thing. So we have to really tamp down our extra, I think, unless we are. Dealing with a cause that's in the news all the time, unless we are a national organization, unless we're an international organization. So we have to understand that. Not only can we not reach everybody, probably the majority of people are not going to support what we do. And that's so hard to stomach for a lot of organizations that have. This passion, the curse of knowledge, they know that what they do is important. They know that it's life changing. They know that they're making a huge difference in a lot of different populations, but there are people that don't agree with food banks. There are people that don't agree with homeless shelters. There are people that don't agree with arts programs. I mean, there are people that just, they don't care, they don't, and that we can't change that. So to me, I just want people to focus on who you have now and love on them and love on them and appreciate them, encourage them to spread the word like you. Did Carol have a fundraiser, tell your friends and family. They are your best marketers. They are your absolute best ambassadors. And then try to find more like-minded people, but don't get hung up on being the best kept secret because how many people can get on the front page of the New York times, not many. Even the front page of your local newspaper, it's pretty rare. So I really encourage people and marketers, especially fundraisers to love on the people that are there, because what happens is we get so focused on. Acquiring new people and new names and new donors. And then we neglect the people we have. And I just actually, who did I just have on my podcast? Julie Edwards, she's a fundraiser consultant. She was talking, she was saying that donor retention. It's something like 20% or at least in the last couple of years. So we don't focus nearly enough on keeping the people we have. We're constantly focused on the next thing, the next thing. And I really think we should do more to retain and engage the people that have raised their hand and said, Hey, I really like you, rather than just say, okay, we're 10 more. The like,
Carol: Cause you hear people like, oh, we're just preaching to the choir.
Julia: And the choir's amazing. If you get the choir singing together in harmony, get more people to get them to join the choir. Like you need the choir. If you don't have the choir, what do you, well, I mean, I'm not a real church goer, but I would say if you don't have a choir, you don't have a church. Like if you don't have people. Attending the church and their job is really to get more people to come and to, to make it an exciting, fun thing to do to invite people to say, we're having this great party over here. Do you wanna come? Oh, you don't wanna come right now? You can't come. It's not a good time. That's fine. The door's always open or, Hey, you wanna come? Here's some more information on how you can come to this party. And I think the whole notion of. Like beating people over the head with information and forcing them. And like we would, bring it full circle, manipulating people, guilting people. That's just not a sustainable way. It's like, you need to inspire people, get them excited, and then they're gonna spread the gospel for staying on this metaphor.
Carol: Yeah, absolutely. And, yeah, overwhelming people with information. If I had a magic wand to change the nonprofit sector, I would somehow sum all the policy people and I would sit them down with the marketing people and, um, have the marketing people. help them simplify their message. So on all those advocacy emails that I get, I'm now saying this so that if a few people hear me, I want a, the highlight summary, like that has like a sentence behind it. Mm-hmm and then the second version is I want all the details. Then you can give me the version that the policy people will usually give. Yes, but I want to.
Julia: This is called TLDR for “too long, didn't read.” Have you ever seen that? Oh my God. Well, so sometimes people write emails and it's TL:DR. Yep. I've seen that where it's like, this is the too long didn't read version and it's two sentences. And then it's the whole rest of the email. If you wanna read it, go ahead.
Carol: I was talking to somebody who was interested in taking action on an item. Yeah. an issue. And she went to their website and she got so overwhelmed by the amount of information that was there. She just was paralyzed and didn't do anything. So it had exactly the opposite effect of what they wanted. Yes. Um, yeah,
Julia: This gives me a good idea for a blog post. All right. Excellent. Yeah, and we don't need more information. We need people to synthesize information for us. Yeah. And tell us why it's important. So you and I, we can Google everything all day. Every day. We do not need more information or data or statistics. We do need someone to tell us what it means and why it's important. And I totally agree with you, too many emails are just listing the data, but not giving me any context.
Carol: Yeah. And not giving me the simple “okay. And here's the next thing to do and I'm gonna help you do it.” So one of the things you talk about is future-proofing your organization. Can you say a little bit more about what you mean by that and how somebody might go about future-proofing?
Julia: I talk a lot about specifically future-proofing your marketing strategy, but I do think the. Principles would apply to me, my main idea behind this is to build a community that is excited and inspired by what you do. And that will follow you anywhere because tools and trends come and go. There's a clubhouse. There's this idea that something's gonna come up. TikTok and Snapchat the tools are not what's important. And I think when people hear me talk about future-proofing and trends, they get excited and they're like, “oh, she's gonna talk about the five tools that you need.” But actually the tools are really the least important thing. It's if you understand your audience and truly understand what they want. And just like we just said, if you can really distill your message down. Into the why and not focus so much on the how also if you're adaptable. So we have to be more proactive. That's a huge thing that I teach and that I advocate for rather than simply reacting. To change or putting our head in the sand and saying we can't fundraise because of XYZ, or we can't do this. We can't do that. We can't do this. Trying to be as proactive as possible around the things that you can control or the things that you do have in your wheelhouse. So, we can't control things like the war in Ukraine, we can't control things. Like I remember George Floyd's murder and, and the black lives matter protests and clients of mine had fundraising campaigns. They had marketing campaigns going on. You just have to say something like, trust your gut and say, okay. We're gonna be quiet now, but then not be quiet forever. Don't think because the world is constantly changing. I mean, the only constant is really change. Don't think because the world is so in upheaval that you can't, you can't connect with people. And then another thing that I teach is just to communicate more than you think you need to, you are not annoying people. If you are sending out relevant interest in communications that people want to hear. So, yeah, you're annoying me. If you send me five emails that are written the exact same way, just ask me for money. But if you're communicating with me weekly or twice a month, about the impact of my donation, about the problem, about the solution that you're providing, about things that you're doing, what should I know, what do I need to know? If you are becoming a thought leader and a go-to resource, then the tools don't matter. And, and. The method of communication doesn't really matter. So I think the only way to future-proof yourself is to become a real go-to resource and thought leader in your industry, even if it's tiny and small and not quote unquote sexy. Although I don't believe there are no sexy causes. I hear that all the time. I call this sexy well, sexy is in the eye of the beholder. As we know, like what I think is sexy, you might not think it is sexy. So I think that it's in the eye of the beholder, but really being able to understand your audience is what's important to them and what motivates them. And then just constantly be proactive in giving that to your audience. That's really the only way we're gonna get through. The next, I don't know, 5, 10, 15, 20 years of total upheaval and change.
Carol: Yeah. And that goes back to what you were saying before, really pay attention to the people who are already there. Who've already raised their hand. Who've already said they're interested. , yeah. Keep educating them. And, but it doesn't need to be a dissertation every time to give them the tools to spread the word, right. Like helping them be an ambassador. Yeah, I've been an ambassador and they don't, they're not necessarily, that's maybe somewhere where somehow it might actually be helpful, right? Like how do you, how would, what are some steps that you might be able to take to let other people know about the organization, et cetera.
Julia: Right. If you can't. I see Global Citizen as a fantastic example. I get their emails and honestly, there's great articles and information, but it's always like here's a step I can take this month, tweet this out, sign this petition, put this on Facebook, it's usually very simple activities like that. They do fundraising campaigns, but it's very rare. It's mostly here's something small you can do to spread the word about this and to help us, reach more eyeballs and more people that are interested and does it make you feel good? I mean, they're targeting a very, very young audience actually. They target a lot of college students and like Gen Z who might not have the ability to make a donation. I'm thinking of my daughter, she's twelve. She doesn't have a bank account. So she's on TikTok, but she still elevates the voices of people due to her sharing commenting, that's a huge deal to that generation. So you're building it up for them to care about these causes. It's a long term game here, and then when they become my age and then they can actually make donations. Hopefully they will have remembered that experience that they had. So I just see it as playing, playing a really long term game. There's so many different generations that we have to interact with now. I mean, I think there's like seven distinct generations right now. So we can't. We can't ignore the people with the money, right? The boomers, but we can't ignore the people that are coming up and that are really active in digital natives and are excited to spread the word and talk about it. So we just need to have different approaches. I think for, for both ends.
Carol: Yeah, absolutely. So at the end of each conversation, I like to ask a somewhat random icebreaker question. Yes. And so I pulled one out of my handy icebreaker question box. Yes. So if you could have any fictional character as your friend, who would you pick and why?
Julia: Wow. That is such an amazing, amazing, amazing question. Okay. I don't wanna think too long about this because I have so many books that I love. Mm-hmm , oh, I just had it in my brain and I lost it. Well, Right now I'm reading. Well, first of all, I should probably say cat is from hunger games, cuz I'm obsessed with hunger games, but I'm not sure she'd be such a good friend. So I dunno if she'd be like a really fun person to hang out with. But I'm reading station 11 right now. I don't know if you've read that. Mm-hmm so good and it's a TV show on HBOMax. So I would have Kirsten, the main character. I believe I would love to hang out with her. I think she'd be fun.
Carol: Yes. Yes. She is a really, really interesting character
Julia: Yeah. It's cool. Just such an interesting experience and she's just very Shakespeare and I think it'd be cool.
Carol: Yeah. And what was so interesting that, that book, and then the series was one of many. After some huge apocalypse story, but what I really appreciated about that one versus so many others, is that, sure there was some fighting between different groups of people, but that wasn't really the focus.
Julia: It's not like walking dead where it's just a bunch of oh yeah. People fight all the time.
Carol: And so many of the others, , after the apocalypse are always people fighting. And this one, I really felt like it was much more centered. People taking care of each other and I was that's what's actually gonna happen. Like yeah, sure.
Julia: People are gonna fight and be terrified. It's not gonna be Mad Max.
Carol: People are gonna take care of each other.
Julia: Oh, can I add one more- Jo of Little Women, obviously. Oh yeah, you gotta hang out with Anne of Green Gables. Okay. Now I've got a million of them.
Carol: We'll have a tea party with all of them.
Julia: Have a dinner party. That would be amazing. There you go. That's a great, great question.
Carol: Yeah. Yeah. So, what's coming up for you. What are you excited about, , in your work these days?
Julia: Yay. I'm traveling a lot more for work and speaking. I am running my nonprofit social media summit again this year, November second and third. The registration page is not up yet, but we're really excited about that. I'm working with, , neon one CRM on. The third year of our summit, we did it in person in 2019, virtually last year. And we're doing a virtual this year again. , and my podcast, nonprofit nation, I absolutely love it. Some fantastic episodes and great guests coming up. So I just, I'm really, I'm feeling very positive for 20 me, 22. I really am. I think. I think it, I mean , I felt very positive about 20, 20 and 2021, but this year is our year. This is the year that it's gonna be. It's gonna be good, but I'm just feeling very, very positive and optimistic.
Carol: Awesome. Awesome. All right. Well, thank you so much. It was great. Thanks Carol. Great having you on the podcast and really appreciated the conversation.
Julia: Thank you so much anytime.
Carol: I appreciated Julia’s point about the marketing assets that you own vs your presence on social media. Whatever following you cultivate on social media – you only have access to them to the extent the algorithm puts your stuff in front of them. I was talking to someone recently who said they post on LinkedIn to broadcast what they are up to. But that isn’t really the case – because the LinkedIn algorithm decides whether it puts your post in someone’s feed or not. When you send an email to your list, you know you are sending it directly to the person. They may not open it and read it – but at least you know you have sent it to them. So your subscriber list, your donor list – these are all important marketing and fundraising assets of your organization. I also appreciated her different take on Facebook fundraisers – that they actually serve a marketing purpose by making more people aware of an organization they may not have heard of before. So even though the organization is not getting the donor information from the fundraiser – you are still getting them a little money in the short term and some visibility. Her advice to ‘love on the people that are there’ reminded me of Stu Swineford’s comment about the value of the choir. Both are saying – care for the people who already support you. Give them tools and resources to be able to spread the word. Don’t assume they know how to be a good ambassador for your organization – make sure you give them the resources and time to practice sharing your good news.
Thank you for listening to this episode. I really appreciate the time you spend with me and my guests. You can find out how to connect with Julie, the full transcript of our conversation, as well as any links and resources mentioned during the show in the show notes at missionimpactpodcast.com/shownotes. I want to thank Isabelle Strauss-Riggs for her support in editing and production as well as April Koester of 100 Ninjas for her production support. We want to hear from you! Take a minute to give us feedback or ask a question at missionimpactpodcast.com/feedback. Until next time!
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