Posts Tagged ‘Joe Waters’

CausePlanet’s Choice Awards–Top Books for nonprofits from 2014

Here they are — our favorites from 2014. We read so many compelling, insightful books last year on a variety of essential topics, but the final choices came down to originality and applicability.

Each of our Choice Book Awards had either a fresh perspective on an imperative competency or broadened our thinking by tackling new territory. Additionally, all the authors brought their content to life through helpful case stories, exhibits, tools and evidence. These favorites are sure to help you work smarter; we hope you delve into them soon.

CausePlanet’s Top Five Choice Awards from 2014:

1) Fundraising the Smart Way: Predictable, Consistent Income Growth for Your Charity + Website by Ellen Bristol


Bristol gives you an innovative, concrete way to track and monitor your donors’ progress toward making donations. No more guessing about a prospect’s ability and desire to give means you can confidently meet and surpass your fundraising goals. Learn more about the author, book and Page to Practice summary.

2) The Money-Raising Nonprofit Brand: Motivating Donors to Give, Give Happily, and Keep on Giving by Jeff Brooks


Brooks shares an unvarnished, refreshing look at how to captivate more donors with accessible ideas that specifically work for nonprofits. He delivers new ways to connect your brand with your donors in a manner they won’t forget. Learn more about the author, book and Page to Practice summary.

3) The Nonprofit Leadership Transition and Development Guide by Tom Adams


Adams establishes an irrefutable link between effective leadership and organizational impact. What’s more, he comprehensively illustrates numerous advantages and opportunities bestowed upon nonprofits that engage in proactive training, succession planning and transition management. Learn more about the author, book and Page to Practice summary.

4) Fundraising with Businesses: 40 New and Improved Strategies for Nonprofits by Joe Waters


The organization of this book is what really caught our attention. Waters gives you specific cause (pronounced “khaz” by Waters) marketing strategies, how to implement them, ideas you’re encouraged to steal and success stories at every turn. His approachable format is chock-full of applicability. Learn more about the author, book and Page to Practice summary.

5) The Abundant Not-for-Profit: How Talent (Not Money) Will Transform Your Organization by Colleen Kelly and Lynda Gerty


Kelly and Gerty reveal a transformational method for utilizing your community’s expertise. At the center of this transformation is a new breed of volunteer—a “knowledge philanthropist.” The abundance model will revolutionize your use of talent, cultivate a renewable resource and be a welcome relief on the budget. Learn more about the author, book and Page to Practice summary.

Thank you to all our authors who give us reading pleasure and professional inspiration every day. It’s a pleasure to promote your smart advice at CausePlanet.

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A new kind of speed: From zero to favorability in under 40 strategies

Zenvo

The Zenvo ST1 is among the fastest cars in the world and can go from zero to 60 miles per hour in under three seconds. Among the slowest is the MIA Electric, reaching 60 miles per hour in a blistering 30 seconds. The poorly named Peel P50—because there’s no chance of ever peeling your tires due to excessive speed—can’t even reach 60 miles per hour.

While the idea of any kind of speed—car or otherwise—is thrilling in today’s fast-paced world, what really gets Joe Waters’ heart pounding is far more enduring than five to 30 seconds. Waters’ finish line is favorability. He can go from zero to favorability in under 40 strategies. In fact, if you choose only one of his cause marketing strategies from his latest book, Fundraising with Businesses, you’ll engage your business partner and nonprofit community more meaningfully and productively than you ever might have just holding out your hand.

Peel P50

Nonprofits must embrace the fact that companies are beginning to part ways with traditional philanthropy and gravitating toward opportunities where they can blend profit with purpose. Rather than simply writing a check, companies want to embed their giving into the purchasing experience through programs like point-of-sale that include donation boxes, register fundraisers, pinups and round-up fundraisers.  “Smart businesses of all sizes are listening to consumers. Their reward is a competitive edge that goes beyond product and price. Although most forms of marketing are about visibility, cause marketing generates favorability,” says Waters.

Why is favorability such a worthy goal? Because it transcends the awareness that most traditional marketing efforts accomplish. When a community favors you and your corporate partner as a result of cause marketing, people act on that favoritism in a variety of ways to support you.

We interviewed Joe Waters live via webcast earlier this year, and I wanted to share one of the sound bites with you. In this clip below, he provides listeners with the best way to approach businesses about a partnership.

Clip: Joe Waters’ Advice on the Best Way to Approach Bus

Fundraising with Businesses provides case stories, essential mechanics, helpful reminders and online examples to help you spot adaptable ideas you can customize for your organization. What’s more, the book’s final chapter shares seven steps for success to spur you into action when you close the cover.

Nonprofits willing to get creative and identify businesses that want to engage their employees and customers in doing good have much more to gain than charities that look at a list of companies for a check. Happy listening and may you reach favorability with great speed.

See also:

Cause Marketing for Nonprofits

Breakthrough Nonprofit Branding

Marketing Series I: Building a Persuasive Case, Seven Transformative Branding Principles, Multi-faceted Strategies and Bonding with Brands for Life

Image credits: ca.autoblog.com, peel.com

 

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Join us for 40 new and improved strategies for fundraising with businesses

Join us for CausePlanet’s author interview with Joe Waters about Fundraising with Businesses: 40 New and Improved Strategies for Nonprofits.

The interview will touch on the following book highlights:

Apply literally dozens of case stories, instructive reminders and highly creative ideas to incorporate business partnerships and revenue to your fundraising plan.

Yield incredibly rewarding company collaborations by adopting the author’s recommended ideas, visual examples and steps for implementation.

Gain inspiration for growing your corporate involvement beyond the single strategy of asking for a check and identify what companies want from nonprofit partners.

Tap into your business partner’s numerous assets, including customer loyalty and employees’ desire to engage the community.

When? Thursday, March 27 at 11 a.m. CST

Don’t miss this great opportunity to get your questions answered by one of the sector’s leading experts on fundraising with businesses!

See also:

Leveraging Good Will: Strengthening Nonprofits by Leveraging Businesses

Cause Marketing for Nonprofits

 

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What’s missing in most fundraising campaigns with businesses?

“It’s ironic that there is a new piece of scientific research every week that shows the central role the emotions play in persuasion. For cause marketing, an emotional appeal has to be your vanguard, the thing with which you lead. So given the choice between asking the customer, ‘Please donate to X hospital?’ or ‘Would you like to donate a dollar to help a sick child?’ the latter is the more persuasive appeal,” answered cause marketing expert and author Joe Waters when we asked him about the importance of evoking emotion in fundraising campaigns.

Waters added, “I’m amazed how resistant nonprofits are to emotional appeals. They want to sanitize the appeal to make it more ‘acceptable,’ which is exactly what doesn’t work.”

Evoking emotion in 40 success stories

When he’s not advising clients on how to lead with more emotion in their appeals, Joe Waters is sharing success stories from his new book Fundraising with Businesses: 40 New and Improved Strategies for Nonprofits. Each of his 40 chapters is dedicated to a revenue strategy with companies.

It’s more than writing a check

Waters’ objection to nonprofits not embracing the emotional equity they have as nonprofits is part of his overarching message in the book: Nonprofits willing to get creative and identify businesses that want to engage their employees and customers in doing good have much more to gain than charities that simply ask businesses to write a check.

Why fundraising with businesses is more fruitful when you involve consumers

Waters claims this is a great time for nonprofits to begin partnering with businesses in more meaningful, engaging ways. “Consumers are driving the rise of cause partnerships,” explains Waters. According to the 2010 Cone Cause Evolution Study:

90 percent of consumers want companies to tell them the ways they are supporting causes.
83 percent of Americans wish more of the products, services and retailers they use would support causes.
Support for cause-related partnerships is especially strong from two key consumer groups: moms and Millennials.

Clearly, consumers want to know the business that provides their product or service is rooted in support of its community and engaged in the well-being of those who need help. In other words, consumers are inspired by observing an emotional connection between the community and the company that thrives in it. Fundraisers must look for ways to engage their corporate partners beyond check writing not only because it will yield better results, but also they can leverage what research has already proven.

I’ve excerpted one of Waters’ 40 stories in his book to give you inspiration and a glimpse of why giving customers, employees and businesses a higher connection beyond the simple transaction is so successful:

Share Our Strength and Shake Shack use pinups to fight hunger

A great example of what Waters calls “a midsize partnership” is The Great American Shake Sale launched by Shake Shack and Share Our Strength. Over a few weeks in 2012, this modern roadside burger stand surpassed its original goal of $25,000 and raised over $135,000 with pinups. “A pinup, which is sometimes called a paper plaque, paper icon, scannable or mobile is sold in restaurants, department stores and any other place that has customers at a register,” explains Waters. Shake Shack’s success wasn’t a stroke of luck. The next year, they raised a whopping $285,000 for Share Our Strength. Here’s how:

 

They laid the groundwork: Share Our Strength CEO, Billy Shore, spoke with the Shake Shack’s senior management about their program to end childhood hunger, No Kid Hungry. The team was inspired and created The Great American Shake Sale.

They trained employees and had fun with it: Every employee was trained about childhood hunger and the importance of making the ask at the register: “Would you like to donate two dollars to end childhood hunger?” Many of the stores had fun with the campaign and created a party-like atmosphere.

They incentivized customers: For every $2 donation, Shake Shack gave a $5 coupon for a free shake.

The rest is history. In Waters’ book, you can read his meaty sections that follow this case story, such as “How It Works in 1-2-3,” “Things to Remember,” “Pinups 101,” and “Steal These Ideas!” Who wouldn’t want to read a section called “Steal These Ideas!” in each chapter? Brilliant.

Joe Waters’ 40 case stories—each profiling a different way to partner with companies—in Fundraising with Businesses will have you highlighting passages and writing notes in the margin. When you see businesses in your community, ask yourself how you might build a partnership where the employees and customers can be part of something greater—your cause.

By Denise McMahan, Founder & Publisher, CausePlanet

See also:

The End of Fundraising: Raise More by Selling Your Impact

How to Write Fundraising Materials that Raise More Money

The Influential Fundraiser: Using the Psychology of Persuasion to Achieve Outstanding Results

image credits: bradhoffman.blogspot.com, citadelpc.com, shareourstrength.org

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Tired of asking for a check?

The single strategy of asking companies to write a check is tired. You can leverage a corporation’s involvement in many other creative ways that will help raise more money for your organization.

Nine themes

Joe Waters, cause marketing expert, gives 40 specific, practical strategies you can implement now to further your profitable relationships with businesses. They fall into nine categories: point-of-sale, physical go-tos, social media online, deals, direct gifts from businesses, money from employees, required actions from consumers, nonprofit celebrations and special opportunities.

Seven steps to success

If you follow Waters’ seven steps, you can increase your business fundraising results. They include looking at your assets, targeting your supporters, getting your boss’ blessing, focusing on your brand, maintaining a diversified fundraising plan, preparing for competition and seeking professional fundraising help. Waters offers invaluable advice from 20 years of fundraising experience.

Join us!

REGISTER NOW! Join me for a lively discussion about practical strategies you can use to fundraise with businesses with author Joe Waters.

Questions in this interview will touch on the book’s following highlights:
Apply literally dozens of case stories, instructive reminders and highly creative ideas to incorporate business partnerships and revenue into your fundraising plan.

Yield incredibly rewarding company collaborations by adopting the author’s recommended ideas, visual examples and steps for implementation.

Gain inspiration for growing your corporate involvement beyond the single strategy of asking for a check and identify what companies want from nonprofit partners.

Tap into your business partner’s numerous assets, including customer loyalty and employees’ desire to engage in the community.

Image credit: leighscottparenting.com, health.com

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Waters’ new book gives you license to steal

“To be successful in anything you need inspiration. It’s what drives us to keep pushing and excelling. Without it you just hit a dead end. You stop learning and exploring,” explains cause marketing author Joe Waters.

Joe Waters recently inspired us with his new book Fundraising with Businesses: 40 New and Improved Strategies for Nonprofits, which tells a great success story in each of his 40 chapters dedicated to a revenue strategy with companies. I’ve excerpted one of his stories to give you inspiration and glimpse of Waters’ numerous featured partnerships:

Hashtag fundraiser

Over the holidays in 2012, global supermarket chain Lidl offered to donate five four-course Christmas dinners to food banks in Belgium for each tweet with the hashtag #luxevooriedereen, which is Dutch for “luxury for everyone.” The campaign went viral and spread rapidly on Twitter. While Lidl had privately committed to only 1,000 meals, they graciously increased their donation to 10,000 meals.

License to steal!

Waters advises you that when your nonprofit uses hashtag fundraisers and social media in general, you have to plan for the unexpected and be clear on your donation. After Waters explores the case story, some of the meaty sections that follow are “How it Works in 1-2-3,” “Things to Remember,” and “Steal These Ideas!” Who wouldn’t want to read a section called “Steal These Ideas!”? Brilliant.

Too big, too small or just right?

Despite the fact that cause marketing has been in existence since the early 1980s, author Joe Waters is still surprised by the amount of confusion surrounding this idea. Additionally, smaller nonprofits that represent the bulk of our sector are misdiagnosing why great cause marketing partnerships are passing them by and going to the bigger nonprofits. Too often, smaller charities approach businesses for cash gifts when they could be leveraging much more if they are willing to get creative.

“Just because you’re small doesn’t mean you have to think small,” says Waters. He asks, “What if the business is new or struggling?” Does your strategy account for the other assets the business may bring to the table if it can’t write a check? Or, if the company does have money to give, can you see beyond the check and realize the enormous amount of possible donations from customers and employees through an innovative campaign?

Welcome pieces of advice

Each of Waters’ chapters are further bolstered by advice boxes where Waters shares best practices in areas such as “Three Types of Decision Makers,” “Four Ways to Turn Unwanted Gifts Into Nonprofit Gold,” or “Ten Fundraising Ideas for B2B [Business to Business] Companies.”

I encourage you to indulge in a little guilt-free stealing and experiment with Waters’ Fundraising with Businesses. Your bottom line won’t be sorry.

See also:

The End of Fundraising: Raise More by Selling Your Impact

How to Write Fundraising Materials that Raise More Money

The Influential Fundraiser

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Get smart on QR Codes with Joe Waters

They’re everywhere from billboards to business cards. They’re gaining momentum so people don’t mistake them for decorative designs anymore. QR (Quick Response) Codes are the latest technological advance and now with Joe Waters’ assistance, you can access them with ease. Waters’ new portable edition of QR Codes for Dummies covers everything you need to know, including how to access them, create them, troubleshoot and use them effectively.

Even though Waters honestly admits QR Codes may not stick around forever, as technology is fickle and fast-paced, their purpose will always serve. They are a way to “link the offline world with online content” or simply, they are “offline hyperlinks.“So, the codes may be replaced with other devices or methods, but this new wave of “offline hyperlinks” through some type of code/method is here to stay. Waters asserts the “third screen,” i.e. the one found on smart phones, is taking over, which is where you access QR Codes.

The basics

With illustrations and extensive, clear explanations, Joe Waters shows you how to download a QR code reader, scan it and link to the site. He even provides codes with which to practice. The benefit of QR codes vs. bar codes is they store more information and link more easily online. He also explains how to create your own QR code by choosing and downloading a mobile generator. Other available features include abilities to test, accessorize and track the codes. One of the most useful pieces of a QR Code is the ability to track its use, including where and how often it is scanned. Waters’ constant advice, though, is to keep it simple and non repetitive. Make sure your QR Code links to new information on a website or URL. For example, if a restaurant provides a menu with a QR Code, the code should not link to another copy of the menu online, but should give more information, such as ingredients or how the food is specially prepared.

General uses

“In 2011, a survey of 415 smart phone users by marketing firm MGH in Baltimore, Maryland, showed that consumers would scan a QR Code for these top reasons [most used to least used]: 1) to get a coupon, discount, ordeal; 2) enter a sweepstakes; 3) access additional information; 4) make a purchase; 5) sign up to receive more information; 6) access video; and 7)interact with social media properties.” If you look at this list, you can see the trend is catching on with consumers, as you are seeing them in grocery stores, in businesses and most recently, in women’s magazines. (Interestingly, in 2011, women’s magazines led in QR codes’ use).

Nonprofit sector specific uses

The nonprofit sector, as in any business, needs to spread the word about QR Codes, explaining what they are and how to use them. They can place them on email signatures, on all marketing materials, in presentations and at conferences. These codes could link to a nonprofit’s website or other pertinent information. Joe Waters focuses on using QR Codes with fundraising and cause marketing in the following ways: The QR code can link to pictures, video, etc. that tell your organization’s story or educates your visitor. The codes can link to a donation page, thank-you page, petition page, frequently asked questions page or informative page about a demonstration. They can also link to your Facebook page so scanners can like your organization. Finally, QR Codes are the best option right now for mobile giving. Waters suggests Give.mobi as a service to connect to a donation page and a link to your PayPal account. The advantage of a QR code over a text campaign, says Waters, is you can donate any amount you want versus a set amount with a text.

Waters, in no uncertain terms, states that nonprofits can lag in the latest technology use, suggesting it could help them with their good work. QR codes are an easily accessible, growing way to market your cause effectively and the best way to connect people with your online newsletters, donation page and other information. Getting the word out is half the battle, which can be fought with another weapon, the QR Code.

Waters has extended a special promotion for our CausePlanet readers. Please email him, telling him you read about his book on CausePlanet, and he will send you an entire chapter of “QR Codes for Dummies” free. His email is iamjoewaters@gmail.com.

You can follow more of Joe Waters’ cause marketing insights at www.SelfishGiving.com.

See also:

Fundraising with Businesses

Image credit: the2dcode.com

 

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Don’t “blandify” your message, be bold

I read a blog post today called “Why Steve Jobs and I Hate Charity” by one of our featured authors, Joe Waters, who has generated a lot of mixed responses with this post, some even angry. I can’t help but be happy for him. Call me crazy, but this month I have author Tom Ahern backing me up on this one. We’re currently featuring his new book, How to Write Fundraising Materials That Raise More Money (Emerson & Church Publishing, 2011) at CausePlanet.

“Content that interests your reader is mandatory,” says Ahern. He says we should ask if our message is bold and passionate. (Not bland, predictable or boring.) I would say Joe Water’s post meets these requirements on all counts.

One of Tom Ahern’s chapters in particular had me jumping out of my seat because it’s so rarely discussed, much less overcome in the workplace. The chapter is called “On the delicate subject of committee and board approvals.” Tom’s remarks in this chapter further support the priority we must all put on preserving communications that are bold, controversial and surprising. Tom argues that your board and committee’s instincts and good intentions aren’t enough. Effective communications are, in Ahern’s opinion, 99 percent science and one percent art. You are a professional. You’ve done the research and understand what makes communications effective. Committees tend to “blandify” the piece and scrub away the bold, the controversial and the crazy surprises you’ve worked hard to incorporate into your piece, says Ahern.

I was so enthusiastic about this opinion after having survived numerous direct mail pieces written by committee over the years that I asked more about the subject in our interview and here’s what Tom had to say:

CausePlanet: We love chapter eight about how to mitigate the influence of committee or board approval on the written appeal. How liberating! Would you say the same rules apply for management?

Tom Ahern: There are two kinds of bosses: those who trust their employees and those who don’t. The trusting boss says to the fundraiser, “Look, this is your area of expertise. And it’s your neck on the line. Do what you think is best.” If that’s not your kind of boss, start looking for a new job.

Tom explains his book that there are seven ways you can guarantee poor results. I would argue that number seven needs to added as I’ve done below. Then again, he did dedicate an entire chapter to the subject.

  1. You don’t target your audience narrowly enough: You must sharpen your message by grouping your constituency by donors (at least two gifts), prospects (shown some interest or lapsed donors) and suspects (might yield a gift but show no proof yet of interest). The second layer of grouping is segmentation by demographics (age, sex, income, educational level, number of children or zip code) and psychographics or “lifestyle traits” (values, beliefs, attitudes and interests).
  2. You don’t know what your BIG message is: Choose one message for each target audience and beat that message to death for a few years. That’s how you get results, says Ahern.
  3. You don’t repeat your messages often enough: Marketers cite the “rule of seven,” which means you must bring the same message to a target audience at least seven times in an 18-month period in order for that message to penetrate.
  4. You don’t have real goals: Every goal should be concrete, measurable, achievable and worth doing.
  5. You think “bland” is a safe choice: You have to be BOLD to capture a person’s attention in today’s hyperactive messaging environment. Bold always outsells bland.
  6. You have unreasonable expectations: You hope for blockbusters. Instead, have patience with the slow trickle of interest. It will soon amount to a river of support, says Ahern.
  7. You use a committee and board approval process: Your board or committee’s instincts and good intentions aren’t enough. Effective fundraising communications are, in Ahern’s opinion, 99 percent science and one percent art. Professionals on staff have done the research and understand what makes a communications piece effective. Committees tend to feed each other’s doubts; they “blandify” the piece and scrub away the bold, the controversial and the crazy surprises you’ve worked hard to incorporate. (See # 5.)

Thanks, Joe, for the great post and keep your readers guessing. You have us in your court. Visit www.SelfishGiving.com.

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The four great truths of cause marketing

Cause marketing is the talk of the town, and with good reason. Cause marketing,  a partnership between a nonprofit and for-profit for mutual profit,  is a progressive fundraising strategy that can help nonprofits raise money, build awareness and diversify their support from corporate funders. But to succeed with cause marketing, nonprofits need to accept the four truths of cause marketing.

First, the reality.

Cause marketing is a life preserver not a lifesaver. Nonprofits need to be realistic about how much they can do with companies and how much their partnership will raise. The bad news is that cause marketing won’t solve all their financial woes. It will help, for sure, but we’re not talking about a mountain of money. Jocelyne Daw has a good rule of thumb on this: 5-15% of your total revenues: that’s what nonprofits can expect to raise from cause marketing. So, if your nonprofit has a $500,000 budget, you can expect to raise between $25,000 and $75,000. It’s not chump change, but it may not be as much as you expected.

Second, follow the money.

The real money isn’t in the companies. It’s in the customers. People often make a big mistake with cause marketing: they confuse it with sponsorship. They talk about logos and billboards and companies cutting fat checks. For every cause marketing program that is funded by a company, there should be three more that allow consumers to give through or because of a company. The reason is quite simple: you’ll almost always raise more money from consumers.

Third, walk toward the light.

Skip ahead to mobile. You need to jump ahead with mobile technology and tap text messaging, location-based services and QR codes. (Here are some posts to get you started!) Don’t get me wrong, I love traditional tools like point-of-sale and purchase-triggered donations, but the future is in the mobile. And I wouldn’t begrudge any nonprofit that looked ahead instead of over its shoulder.

Finally, forget cause marketing. Really.

It’s about philanthrotunity. It’s not about cause marketing. It’s about nonprofits thinking innovatively about their unique assets and how they can leverage them creatively and lucratively with companies, consumers and donors. Cause marketing is just another hammer in the toolbox. You may need to choose something else to get the job done.

Nonprofits need to reorient themselves to rediscover who they are and what they do to survive. Henry David Thoreau, the father of environmentalism, set off to live a deliberate life in the woods but journeyed just two miles from his mother’s house in Concord, Massachusetts. No matter. Thoreau’s journey was within, not without.

Nonprofits don’t need to sell their souls to save themselves, but they do need to adjust their thinking and work inside out or deny themselves a better future. But it won’t happen by itself. As Thoreau extolled, “Only that day dawns to which we are awake.”

See also:

www.selfishgiving.com

Fundraising with Businesses

Cause Marketing for Dummies

QR Codes for Dummies

Image credit: amptoons.com

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Social good by the slice

You love pizza. Why not be purposeful about it? A new company called Naked Pizza agrees. Naked Pizza’s mission is to demonstrate, by example, that fast food can be part of the solution in the global epidemic of obesity and chronic illness by, 1) proving that an unhealthy and popular fast food can be made healthier and tasty, and, 2) making a business case for investment, profit and scale. Naked Pizza’s corporate social responsibility strategy is textbook, or in this case, business book—Do More Than Give: The Six Practices of Donors Who Change the World to be exact. Naked Pizza now shares company with GE and other large companies that are opening up new business markets by blending social good with the bottom line.

According to Do More authors, Crutchfield, Kania and Kramer, one of the six best practices of highly effective donors is to blend profit with purpose. Businesses have a lot to offer as vehicles for social progress, and donors can engage business tools in three ways:

1) They can tap corporate know-how to create direct social impact: They can utilize the knowledge, skills and abilities of employees, as well as company systems and processes; intellectual property such as patents and trade secrets; and other assets. For example, GE used their industry know-how to upgrade thirty-seven clinics and hospitals and retrained local staffs in poor communities in Africa, Asia and Latin America, all without charge. GE continues to open a new clinic every month as part of its $90 million annual budget for philanthropy.

2) They can create shared values through profit-making initiatives that serve social objectives: In the GE example, senior executives saw a tremendous range of opportunities for their business. The company invested $6 billion to develop new, inexpensive products and treatments that meet the health needs of low-income populations around the world with a goal of reaching 100 million new patients every year. GE partners with Grameen Bank, the microfinance institution, to build a sustainable rural health model, reducing maternal and infancy mortality rates by 20 percent.

3) They can use their investment capital to further their social impact: The authors report that catalytic donors are using their vote and their cash to further social issues through “impact investments.” The authors explain a strategy called “shareholder advocacy,” where a foundation can purchase shares of stock in a company in which they wish to have policy influence. For example, the Nathan Cummings Foundation, whose interest in the environment prompted them to purchase stock in Smithfield Foods so they could file a shareholder resolution requesting complete disclosures of environmental impacts. They filed annually, eventually gaining 29 percent of the shareholders’ votes, and the company began to negotiate with the foundation. The foundation brought in their grantees for expertise, which led to the company’s commitment to track and report environmental indicators relating to its farms.

Even more immediate social impact can be accomplished by foundations offering low- or no-interest loans to grantees, which has been done for decades. These loans qualify as program related investments, which means foundations can count these loans as part of their payout requirements. This strategy allows foundations to “recycle” their funds because they can be used multiple times to achieve social impact.

Another example of impact investing is when foundations or donors are willing to be the lead investors in a socially responsible business solution to attract other venture capitalists. Kiva is a great example—in 2010 users lent more than $100 million in microloans. The Packard Foundation similarly was the first investor to the table in their case, taking the risk and lower return in order to fund a sustainability project, which eventually attracted substantial venture capital from traditional sources.

For more examples about blending profit with purpose, visit Joe Waters’ blog www.selfishgiving.com.

For more information about Do More Than Give, visit www.DoMoreThanGiveBook.com or our Page to Practice book summary library.

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