Archive for August, 2014

Rolling your eyes at the thought of strategic planning? Try 4 simple rules

Last week, a colleague called me about facilitating strategic planning for a new group he is managing through his association management firm. He warned me that the executive committee didn’t hold much value in strategic planning, but they had agreed to an initial conference call to, as he put it, “hear me out.”

At least half the calls I get from clients about strategic planning include dire warnings that they don’t really want to do planning, but feel it is a “necessary evil.” I became so intrigued by this apparent aversion to planning that I did my own investigating. What makes boards roll their eyes and shake their heads over the suggestion of annual planning?

Here’s what I found. For many boards (and nonprofit executives), strategic planning means:

1. A lecture from a “talking head” consultant;

2. General, unfocused discussion about what went wrong in the past year;

3. Participation in the dreaded “team-building” exercises;

4. Two to three days out of the office at a remote location (translation: misuse

of volunteer time and organizational resources); and

5. An added cost the organization either can’t or does not want to bear, because

they do not see the benefits of planning.

These perceptions from leadership are insightful. Who among us doesn’t cringe at the thought of two days devoted to strategic planning? Don’t we wonder what we’ll do and how (if) it will really help the organization? What if leadership doesn’t see the value in planning? Will the board only commit a couple of hours to planning as part of its regular board meeting?

To address board apprehensions about strategic planning, I follow a simple set of rules that guide my work with nonprofits:

Rule 1: An organization must devote one full day to strategic planning, with no other business conducted during that day.

Successful strategic planning requires the undivided attention of board and management, conducted with total commitment to the organization’s well being and its focus on the future. Too often boards try to maximize their allotted time together by attempting to conduct business, elect board members and do strategic planning work all at one meeting.

Example: One organization that hired me for a day of strategic planning ended up conducting a quarrelsome board meeting for five of the eight hours originally allotted for planning. The acrimonious nature of the meeting made it virtually impossible for the board to move into team planning, so we ended up rescheduling. Both the organization and I were frustrated about losing both time and resources due to their lack of focus on planning.

Rule 2: The board and management must commit to at least two days preparing for planning.

Successful strategic planning requires advance preparation to ensure the best use of time and organizational resources. I am a firm believer that planning can be accomplished in one day. However, in order to accomplish this, both the consultant and the planning participants must be prepared. Working with the organization’s leadership, I develop a pre-planning survey that is sent to all participants 30 to 45 days before the session. The survey asks for input about organizational value (current and future), mission, future goals, governance and financial issues. The survey results are used to finalize the agenda and identify relevant planning materials. (The survey also greatly decreases the chance of the planning being derailed by a hidden issue.)

Example: A newly-merged association I had been working with insisted they could not do planning in less than two days, even with all the preparation. They made arrangements to spend three full days in planning and board meetings. However, because of the pre-planning work we did, we wrapped up their planning agenda by 4:00 p.m. on the first day, allowing them to do a quick board meeting the next morning and head for home. The results from employing this process were gratifying for the association, as well as for me.

Rule 3: The board must come to consensus around issues discussed.

There is nothing more frustrating than spending a day of planning with no tangible results. An important component of strategic planning is the actual decision making around goals and issues important to the organization. Moving the board to consensus around strategic organizational components such as vision, mission and goals is essential in order to establish a clear direction for management to act upon.

Example: Working with the management of a local credit union (a not-for-profit financial institution), we designed parameters for the board to address at their annual board retreat. The board engaged in an exercise where they “voted” on their comfort level related to institutional growth and risk. The resulting board consensus was used by management to set goals for the upcoming year.

Rule 4: The organization must commit to developing a business plan with a budget and work timetable.

Successful strategic planning requires developing a business plan that becomes the organization’s roadmap for success. The most valuable outcome of strategic planning should not be the session report, but a true business plan with goals and strategies that lead the organization to accomplish its vision and mission. The board’s role is to set the direction by confirming vision, mission and three-year goals. Management’s role is to create a business plan that develops strategies, tactics and tangible outcomes that drive achievement of the goals set by the board.

Example: One organization that has been a client for several years created a “dashboard” that is reviewed at every board meeting to check progress and make strategic decisions about goals and strategies. They have had the same business plan for over three years, using their annual strategic planning to update the plan. In essence, they have created a “rolling business plan” that is carrying them to an ambitious future vision.

What happened to the group that asked me to justify their need for strategic planning? The subsequent call went well, because I had sent them a detailed contract with these four rules and a copy of a business plan to show them the results they would achieve from a day of planning. I’ll be facilitating their strategic planning later this year.

See also:

The Nonprofit Strategy Revolution

Nonprofit Strategic Positioning

The Nonprofit Business Plan

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Three ways to become more attune with your donors

Bestselling author Dan Pink is asking you to call it what it is.

More specifically, your work. If in your job you spend any time persuading, convincing and influencing others, you are in the business of moving others. Frankly, he explains, you’re selling. And if you’re selling, it’s important to recognize major developments over the years that have changed how the best people are moving others. Through a first-of-its-kind study and a collection of a broad spectrum of examples, Pink has thoughtfully made the case for rethinking sales. You will learn how to be, what to do and how to put all the pieces into play in his new book To Sell Is Human: The Surprising Truth About Moving Others.

There are a broad variety of strategies at play in the nonprofit sector when executives are in the midst of convincing, persuading or influencing their boards, staffs and constituents. Some may be using old school techniques, and perhaps others draw on intuition. No matter what the convenient tactic at hand, a strong case can be made for formalizing our approach to moving others and understanding what motivates. It is, after all, the business we’re in.

Three truths about moving others today

Nonprofit leaders constantly find themselves asking how to move a donor to give, how to move a board member to lead, how to move the staff to act. Understanding today’s truths about Pink’s sales ideas such as Attunement, Clarity and Buoyancy is especially relevant due to the sector’s increased presence of competition and general misunderstanding of sales.


For example, Attunement honors the knowledge and goals of the buyer, jettisoning the old sales adage, “ABC” or “Always be closing.” Pink begins the new “ABC” with the first word, Attunement, or “the ability to bring one’s actions and outlook into harmony with other people and with the context you’re in. Think of it as operating the dial on a radio. It’s the capacity to move up and down the band as circumstances demand, locking in on what’s being transmitted, even if those signals aren’t immediately clear or obvious.” He also calls this “perspective-taking.”

Pink describes three ways to become more attune with your buyer/client/funder:

Increase your power by reducing it. Through several social science studies Pink relates, it was found that people who perceived greater power became less attune with others’ points of views. And the inverse is true of those who perceive less power. Because a salesperson no longer holds all the information and therefore, the power, s/he must rely on taking the other’s perspective and giving up power in order to move someone.

Use your head as much as your heart. Perspective-taking is not the same as empathy. Pink describes perspective-taking as a cognitive action where you imagine what someone else is thinking. Empathy means you feel for the other or try to imagine what another person is feeling. Empathy can cause you to toss aside your own interests, as you may feel too deeply, whereas perspective-taking can help both sides achieve their goals. Therefore, perspective-taking with a cognitive focus on people, their relationships and context is more effective to move people.

Mimic strategically. Pink stresses that mimicking your buyer can help you negotiate better. Mimicry builds connections, trust and understanding. However, it must be treated with care so it is not obvious. Otherwise, it can backfire. Pink also discusses how touching (e.g., on the arm) can help build connections and foster negotiations.

Pink’s choice for nonprofits

In addition to attunement, Pink explores many other essential principles surrounding the notion of moving others. We asked him which one he felt was most appropriate for nonprofits for our Page to Practice summary and have excerpted here.

CausePlanet: Nonprofit leaders constantly find themselves convincing or persuading others to support their causes. Is there a principle from your book that you feel stands out as especially appropriate for nonprofit executives to apply?

Dan Pink: Make it personal. There’s an array of research showing that abstract and conceptual appeals (“Increase vaccination rates”) are far less effective than specific and concrete ones (“Vaccinate this child or she risks dying of malaria”). And the principle goes well beyond fundraising. There’s some great research from Israel, for instance, showing that radiologists who see both a scan and a photo of the patient whose scan it is spend more time and are more accurate in their evaluations. The same is largely true for leadership. When leaders put themselves on the line and when others see they’re real people, their leadership effectiveness rises substantially.

For those of you who find yourselves in the business of moving others (and Pink argues virtually everyone is in this business), consider how attune you are with your prospects and then ask yourself how you can make your appeals personal. Stay tuned in the upcoming weeks as we discuss Pink’s observations about clarity, buoyancy and other interview questions we had for him.

See also:

The Influential Fundraiser

It’s Not Just Who You Know

Yours for the Asking


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Five lessons board members can learn about leadership

As my friend Rich Male likes to say, “Leadership is one of the most talked about and least understood ideas in the nonprofit world.” There are volumes of books on leadership, seminars to take and discussions to have. But real leadership development requires action and practice, and you can’t get that from a book.

For a few years now as part of my volunteer work, I’ve been training prospective board members, mostly on the basic legal requirements and top ten responsibilities. We go through the lists, share examples and discuss what meetings can be like. After we’ve covered all the conventional information, I share the biggest thing I’ve learned about being on a board: it’s the best leadership development program available, particularly right now. The tough decisions and thoughtfulness required of boards are ramped up due to the financial crisis in which we find ourselves.

Here are a five valuable things board members can learn about leadership:

1. You cannot do it alone

Boards are set up to have multiple members for a reason. Better decision-making requires more than one mind. In order for ideas and decisions to move forward, a group consensus needs to emerge among board members. You learn to gather the right information, communicate well with others and advocate. Part of being a good leader is sharing a way to move forward and mobilizing those around you to join in. You will also learn to listen and gain a respect for the opinions and thoughts of others.

2. There is no passing the buck

Boards are the final decision-makers for organizations, which is a huge responsibility. On high- functioning boards, the trustees don’t shy away from tough decisions. They gather data, consider the options and then make the best decision given the information. This is not always a fun or pretty process.
Laying off staff is heartbreaking, but sometimes necessary. Declining one opportunity to develop another can be difficult. However, all leaders are required to make tough choices, and learning to do this is both an art and a science. Boards offer opportunities to make these decisions and learn from their effects.

3. You get to witness the good and the bad, and learn from both

During my time of service to organizations, I have had the privilege to watch some outstanding board members and chairs and learned a lot. From the way they conducted meetings, communicated with other members and prioritized issues for the board, these great leaders showed grace, humility and compassion. I also remember the ineffective board members and how they acted or didn’t act. Both types of experiences are important as you think about your own actions and how you want to lead.

4. Develop your own style

Boards offer opportunities to step up the leadership ladder. By taking on the role of committee chair, you can develop your talents while contributing to the larger work of the organization, and learn to drive agendas and important projects for the organization. Reflecting on your success and failures during this process provides strong feedback you can use as you work your way forward in other leadership positions, either on a board or in other arenas.

5. Develop leaders who will come after you

Succession is tantamount to board effectiveness, just as it is in leadership. You will not be the leader forever if the program or project you lead is to continue. Taking time to develop the next leader provides a chance to encourage the best in others and transfer skills that help you refine your own attributes. It will also ensure the future success of the organization, which is a positive outcome for all leaders.

In order for the board experience to be truly worthwhile, you need to select an area about which you are passionate and to which you are committed. Simply joining a board to gain experience would be a somewhat shallow experience. However, as with most volunteer experiences, you will get just as much out of it as you offer to the organization.

This treasure trove of leadership experience on a board is available to you for the small price of financial support for the board’s organization and some good intentions toward your work. It sounds like a pretty good deal to me.

See also:

The Ultimate Board Member’s Book

The Board Game

Super Boards

The Practitioner’s Guide to Governance as Leadership

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Is your bucket watertight? Nine fundraising plugs and leaks

“Fundraising is strategic and mission critical, yet it does not receive the appropriate level of attention it justifies from organizational leadership … With government support for nonprofits waning, the failure to upgrade the management of the fundraising initiative could compromise the long-term viability of nonprofit organizations and NGO’s around the globe.”

This quotation by Ellen Bristol, Fundraising the SMART Way, is representative of data The Bristol Strategy Group’s been collecting through the free online Leaky Bucket Assessment since 1995. Organizations of all sizes and levels of sophistication around the world have responded to this online assessment and Bristol is sharing the results in a full and condensed report below.

The assessment “measures the level of maturity of nine basic business practices that either contribute to or detract from the productivity of the fundraising effort.”

Nine business practices surrounding fundraising effectiveness:

  1. How you qualify donor/grantor prospects
  2. How you acquire new donors
  3. How you retain donors
  4. How you develop donors through “up-selling” and “cross-selling”
  5. How you manage funding diversification
  6. Your staff resources for fundraising
  7. How you measure fundraising performance
  8. What you include in your fundraising “toolkit”
  9. What techniques you use when fundraising results fall below desired levels

We’ve highlighted some of Bristol’s report below in the areas of overall performance, and acquisition, retention and upgrades. We also included her thoughts on qualifying prospects with an excerpt of our Page to Practice™ interview.

Overall performance: How does your leaky bucket compare with others?

Complete the assessment and read the full or condensed report below to find out how your fundraising productivity compares with your organizational peers on the nine areas above. For example, only four percent rate their productivity bucket as “Watertight,” while 21 percent report their bucket as “Leaking Like a Sieve.” Seventy five percent in the middle report a need for help and productivity maintenance. This means 96 percent of all nonprofits that completed the Leaky Bucket Assessment need to apply basic management tools to improve their fundraising results.

Acquisition, retention and upgrading

In fundraising competencies two, three and four from above, Bristol highlights the assessment results in the areas of acquisition, retention and upgrading:

Acquiring new funding sources: 62 percent had no targets or were merely “encouraged” to acquire new funders

Retention: 72 percent had no targets, or were merely “encouraged” to retain new funders

Upgrading current funders (upgrades and multiple gifts): 77 percent had no targets or were merely “encouraged” to upgrade

Qualifying prospects

From our Page to Practice™ summary, we’d like to share Bristol’s interview answer about competency number one, “How you qualify donor/grantor prospects.”

CausePlanet: In applying the Scorecard practice, what common pitfalls have you observed that fundraisers should try to avoid?

Bristol: The SMART Way™ Prospect Scorecard is a method for describing the criteria your agency holds for selecting donor prospects offering the most potential. Our approach is specific enough to score the prospect as an A, B, C, or D, where A’s offer the most potential for lifetime donor

value. One major pitfall comes at the beginning of the process, and that’s the idea that your fundraising team already knows which funders are worth your development team’s efforts. In our Leaky Bucket Assessment for Effective Fundraising, about 76 percent of our 600-plus respondents said either they had no standards or criteria, or they had undocumented preferences. That’s an enormous number of nonprofit agencies winging it when it comes to selecting candidates for cultivation. Unfortunately, a lot of fundraising professionals and nonprofit executives seem to think it’s perfectly OK not to go to the fuss and bother of establishing such criteria. They assume they already know what they’re looking for or they fall prey to the myth that the development pro with the biggest Rolodex, the one with connections to the rich and famous, is the right person for the job. As it turns out, it takes a whole lot more than connections–or giving capacity–to succeed in raising predictable, consistent levels of income.

The second pitfall comes at the end of the process, after the qualifying criteria have been developed, vetted and documented, and that’s not bothering to use it. I’ve been surprised and dismayed to find that agencies with their own homegrown qualifying benchmarks, or even our Scorecard profiles, simply ignore them. And then they wonder why they’re not getting much value out of their efforts to acquire new donors. They rely on connections, guesses, assumptions that the individuals’ alma maters, the cars they drive, the jewelry they wear, or the zip codes they live in are all they need to know to justify investing time and energy to cultivate them. Sometimes a more insidious force is at work, when well-meaning board directors intervene and demand the fundraising team pursue their friends or relatives. If the friend or relative passes the Scorecard test, that’s just fine, but if not, you end up wasting unrecoverable time attempting to cultivate a DOA, a prospect who’s “dead on arrival.”

Plug those leaks

One of the first steps in upgrading the management of your fundraising efforts is to understand not only the areas you can measure but also where you fall on the spectrum of productivity. Bristol’s assessment can help you with this answer. If you are leaking like a sieve or perhaps dripping occasionally, consider reading the full report and how you might plug some of your leaks.



See also:

Fundraising the SMART Way

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

How to Write Fundraising Materials That Raise More Money

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Why leaders fail: Six warning signs

Donald Trump, paragon of the real estate world, files for bankruptcy. Richard Nixon, 37th U.S. President, resigns the presidency over the Watergate scandal. Jennifer Capriati, rising tennis star, enters a rehabilitation center for drug addicts. Jim Bakker, renowned televangelist, is convicted of fraud.

Over the years, we’ve witnessed the public downfall of leaders from almost every area of endeavor — business, politics, religion, and sports. One day they’re on top of the heap, the next, the heap’s on top of them.

Of course, we think that such catastrophic failure could never happen to us. We’ve worked hard to achieve our well-deserved positions of leadership — and we won’t give them up for anything! The bad news is: the distance between beloved leader and despised failure is shorter than we think.

Ken Maupin, a practicing psychotherapist and colleague, has built his practice on working with high-performance personalities, including leaders in business, religion, and sports. Ken and I have often discussed why leaders fail. Our discussions have led to the following “warning signs” of impending failure.

WARNING SIGN #1: A shift in focus

This shift can occur in several ways. Often, leaders simply lose sight of what’s important. The laser-like focus that catapulted them to the top disappears, and they become distracted by the trappings of leadership, such as wealth and notoriety.

Leaders are usually distinguished by their ability to “think big.” But when their focus shifts, they suddenly start thinking small. They micro manage, they get caught up in details better left to others, they become consumed with the trivial and unimportant. And to make matters worse, this tendency can be exacerbated by an inclination toward perfectionism.

A more subtle leadership derailer is an obsession with “doing” rather than “becoming.” The good work of leadership is usually a result of who the leader is. What the leader does then flows naturally from inner vision and character. It is possible for a leader to become too action oriented and, in the process, lose touch with the more important development of self.

What is your primary focus right now? If you can’t write it on the back of your business card, then it’s a sure bet that your leadership is suffering from a lack of clarity. Take the time necessary to get your focus back on what’s important.

Further, would you describe your thinking as expansive or contractive? Of course, you always should be willing to do whatever it takes to get the job done, but try never to take on what others can do as well as you. In short, make sure that your focus is on leading rather than doing.

WARNING SIGN #2:  Poor communication

A lack of focus and its resulting disorientation typically lead to poor communication. Followers can’t possibly understand a leader’s intent when the leader him- or herself isn’t sure what it is! And when leaders are unclear about their own purpose, they often hide their confusion and uncertainty in ambiguous communication.

Sometimes, leaders fall into the clairvoyance trap. In other words, they begin to believe that truly committed followers automatically sense their goals and know what they want without being told. Misunderstanding is seen by such managers as a lack of effort (or commitment) on the listener’s part, rather than their own communication negligence.

“Say what you mean, and mean what you say” is timeless advice, but it must be preceded by knowing what you mean! An underlying clarity of purpose is the starting point for all effective communication. It’s only when you’re absolutely clear about what you want to convey that the hard work of communicating pays dividends.

WARNING SIGN #3:  Risk aversion

Third, leaders at risk often begin to be driven by a fear of failure rather than the desire to succeed. Past successes create pressure for leaders: “Will I be able to sustain outstanding performance?” “What will I do for an encore?” In fact, the longer a leader is successful, the higher his or her perceived cost of failure.

When driven by the fear of failure, leaders are unable to take reasonable risks. They want to do only the tried and proven; attempts at innovation — typically a key to their initial success — diminish and eventually disappear.

Which is more important to you: the attempt or the outcome? Are you still taking reasonable risks?  Prudent leadership never takes reckless chances that risk the destruction of what has been achieved, but neither is it paralyzed by fear. Often the dance of leadership is two steps forward, one step back.

WARNING SIGN #4: Ethics slip

A leader’s credibility is the result of two aspects:  what he or she does (competency) and who he or she is (character). A discrepancy between these two aspects creates an integrity problem.

The highest principle of leadership is integrity. When integrity ceases to be a leader’s top priority, when a compromise of ethics is rationalized away as necessary for the “greater good,” when achieving results becomes more important than the means to their achievement — that is the moment when a leader steps onto the slippery slop of failure.

Often such leaders see their followers as pawns, a mere means to an end, thus confusing manipulation with leadership. These leaders lose empathy. They cease to be people “perceivers” and become people “pleasers,” using popularity to ease the guilt of lapsed integrity.

It is imperative to your leadership that you constantly subject your life and work to the highest scrutiny. Are there areas of conflict between what you believe and how you behave? Has compromise crept into your operational tool kit? One way to find out is to ask the people you depend on if they ever feel used or taken for granted.

WARNING SIGN #5: Poor self management

Tragically, if a leader doesn’t take care of him- or herself, no one else will. Unless a leader is blessed to be surrounded by more-sensitive-than-normal followers, nobody will pick up on the signs of fatigue and stress. Leaders are often perceived to be superhuman, running on unlimited energy.

While leadership is invigorating, it is also tiring. Leaders who fail to take care of their physical, psychological, emotional, and spiritual needs are headed for disaster. Think of having a gauge for each of these four areas of your life — and check them often! When a gauge reaches the “empty” point, make time for refreshment and replenishment. Clear your schedule and take care of yourself — it’s absolutely vital to your leadership that you continue to grow and develop, a task that can be accomplished only when your tanks are full.

WARNING SIGN #6: Lost love

The last warning sign of impending disaster that leaders need to heed is a move away from their first love and dream. Paradoxically, the hard work of leadership should be fulfilling and even fun. But when leaders lose sight of the dream that compelled them to accept the responsibility of leadership, they can find themselves working for causes that mean little to them. They must stick to what they love, what motivated them at the first, to maintain the fulfillment of leadership.

To make sure that you stay on the track of following your first love, frequently ask yourself these three questions: Why did I initially assume leadership? Have those reasons changed? Do I still want to lead?

Heed the signs

The warning signs in life — from stop lights to prescription labels — are there for our good. They protect us from disaster, and we would be foolish to ignore them. As you consider the six warning signs of leadership failure, don’t be afraid to take an honest look at yourself. If any of the warnings ring true, take action today. The good news is: by paying attention to these signs and heeding their warnings, you can avoid disaster and sustain the kind of leadership that is healthy and fulfilling both for yourself and your followers.

See also:

The Fred Factor

The Leadership Challenge

Leaders Make the Future: Ten New Leadership Skills for an Uncertain World

Ordinary Greatness: It’s Where You Least Expect It …Everywhere

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


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

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