Top 3 Charity Trends in 2013

Here are the top three trends to watch for in the charitable world in 2013.

1. Fundraising will see a renewed focus on major gifts and individual donations in 2013.

The last few years have seen (and even demanded that) organizations seek new and innovative funding models.  The phrase "revenue diversification" has become overused as charities have sought more corporate funding, initiated social enterprise and enhanced their on-line campaigns, sometimes all at the same time. But the fact remains that the majority of charities still raise the majority of their funds through individual gifts, including major gifts.  2013 started off with a great example: the biggest-ever private gift for cancer research in Canadian history. My prediction is that we'll see a "return to basics" as charities prune back some the less successful initiatives of the last few years.

2. Fundraising will see significant innovation in terms of leveraging technology and on-line giving in 2013.

I remember the first time I received an e-mail from a friend that had a link to an individualized site where I could donate to support them in climbing the CN Tower. At the time it seems quite remarkable... But that was many years ago. My own Movember campaign raised a bit less this year than last, and others I know had the same experience. Yet the web and on-line giving is nothing if not flexible and innovative. My first prediction notwithstanding, I believe that we'll see memorable and innovative new ways to leverage technology in support of philanthropic efforts in 2013.

3. There will be even more new faces leading charities in 2013.

Partly due to demographics, partly due to the ever-increasing challenges facing charities, and partly due to new and more complex expectations of leaders of charities (ONCA, CNCA, AODA, etc.), I have the sense that new leadership will be a theme this year. This isn't a new trend, just one that I believe will accelerate, and a quick review of the Charity Village and LinkedIn job postings would seem to support this belief. My prediction is that we'll see even more postings and a number of long-standing roles change in 2013.

I’ll keep you updated on examples and stories behind these trends all year, and check back in 12 months to let you know how accurate I was.

Everyone on the Charity Bandwagon

Having spent many years in the Consumer Packaged Goods (CPG) world I'm always interested in what happens in that sector. So I make a habit of filling out a survey once in a while as which companies are asking what questions can tell you a lot - and I'm not adverse to a coupon for free stuff once in a while.

I was particularly intrigued last week however when I noticed a question at the bottom of the multi-page survey: a detailed query on which types of charities I liked to support. So clearly the folks at the survey company are either getting interest from the CPG firms in this kind of data, or they believe there's money to be made in having this sort of info available for the CPG firms.  Either way it's another sign of how pervasive the links between corporate giving (and more broadly Corporate Social Responsibility [CSR]) and corporate business plans are becoming.

Whether this is actually good news for the charitable world is being hotly debated, but I believe the debate on the value of greatly increased direct corporate-to-charity giving boils down to simple question of motivation and leadership.  If corporations jump on the bandwagon because it's the "flavour of the month" this will distort charities as they seek to access these funds, and hurt them when the next new marketing vehicle is found. Worse yet, there is the risk that other donors will see through this thin facade of corporate largesse (e.g. "pink-washing" backlash) and begin to believe that all corporate-charitable partnerships are selfishly motivated, which is thankfully and clearly not the case.

But if this is part of a broader move to deeper and broader partnerships between corporations and charities then we all benefit.  In the long run the leadership of the CPG firms, and the CSR values that they infuse into their organizations, will determine the nature of this relationship for better or for worse.

And Stanford Says...

Over the last many months I've written extensively about the worlds of charities, for-profit enterprises, management and where they all intersect.  Obviously, I'm not the only one thinking about these topics.  Here's a great article from the Stanford Social Innovation Review that makes some compelling and interesting points in the same areas.

Have a look at the article and then I'd invite to review some of my "back blogs" - I've had some other thoughts on these topics you might find interesting!

Not Lost in Translation

In a meeting this morning I scribbled down a quick diagram to try and illustrate a point I was making around leadership, and strategic development in particular.  The people I was chatting with seemed to like how it captured some key concepts in a simple way, so I'm sharing it with you.

Obviously there could be more "pros" for each end of the diagram, but for simplicity's sake I've limited it to two.  At the top is "Top Down" leadership, the model of do-as-I-say and autocracy.  At the bottom is the opposite, a purely democratic, consultative and consensus-driven style.

To the far left lurks "Seat of Your Pants"; a pure gut-feel style of passion and hunches, while its opposite extreme of "Analysis Paralysis" patiently crunches numbers off on the far right.

Clearly there are other variables to consider, and where you sit on each axis is based on context or the issue of the day, but I'm glad my little scribble proved a helpful model for our conversation... And what struck me was that this sort of model applies in both the charitable world as well as the for-profit world.  A definite case where nothing is lost in translation!

Not a Fundraiser but raising Money

I had a coffee last week with the Executive Director for a smaller local "branch" of a large, well known charity.  He commented that he wasn't a fundraiser and really didn't know much about that world... And then nonchalantly mentioned he'd just led a successful local capital campaign to renovate their location to the tune of over $4 million!

Among so many things he did right I wanted to highlight three key factors, and then summarize the insights.

1. Where there were truly things he didn't know he sought expert advice, either pro-bono, from his board, or paid for it - but he did most of the work himself.  INSIGHT: Little sells better than a committed leader with a compelling and honest message - so he kept his costs down and impact up by just telling his story. 

2. His Board was actively involved.  INSIGHT: We've all heard the wisdom about the attitude of the Board defining the altitude of the organization, but he could never have achieved his goals (particularly in this economy)without his Board actively opening doors.

3. This leader has been active in this community for years, lives his own cause every day, and understands their Mission deep to his core.  INSIGHT: In a way that "salespeople" (and I've been one of them) don't often realize, relationships matter - not in the "here, I'll put those new golf clubs in your trunk" way, but in the "I need your help for something important" way, and this leader has those kinds of relationships.

In summary, charitable organizations big and small achieve their fundraising goals every day, in tough economies or not, with a "recipe" unique to that organization.  However, some of the ingredients are almost always the same:

• A compelling mission, combined with a strong case for support

• An engaged and active Board that works to support the fundraising

• A point person (usually a key leader) about whom the campaign coalesces 

Wishing you Good Conversations until next time!