Nonprofits: Running on Empty

Most nonprofits are running on empty, according to a new survey by BDO.

Forty percent have less than six months' reserves; thirteen percent have none.

The financial picture's worse among small nonprofits (those with annual revenue under $25 million).

Loss of revenue can cripple a nonprofit. That's why BDO recommends keeping liquid reserves for at least six months.

Executive directors and board members in a bind over money have a clear choice: they can hide their heads in the sand, or take action now to bolster income and reserves.

The economy's rolling, but the joyride can't last forever.

Pick up the phone an call a few revenue-generation experts today.

Words and Pictures

“The effect in sickness of beautiful objects, of variety of objects, and especially of brilliancy of color is hardly at all appreciated.”

— Florence Nightingale

After a five-year effort, the Susan Sebastian Foundation has just completed the permanent installation of original artworks in every inpatient room in Vermont's 14 hospitals.

The project resulted from ideas expressed in Dr. Esther Sternberg's Healing Spaces: The Science of Place and Well-Being.

Citing research, the book argues that art activates endorphin-rich parts of patients' brains, speeding their recovery.

The nonprofit's founders read Sternberg's book and tackled the project in memory of a long-suffering patient, Susan Sebastian, whose last wish was, “When I get out of here, I am going to sell my house to buy art for hospital patient rooms.”

Sternberg, a pioneer in the science of the mind-body connection, is floored.

"When you write a book, you never know the impact it will have, and to see my words made into reality on this scale is tremendously fulfilling," she says.

Esther Sternberg is a friend of mine, and I can recall vividly the manuscript pages of Healing Spaces stacked on her writing desk. Who knew all those words would matter six years later?

Pictures have power; words do, too.

We're so awash in both, that's easy to forget.

It takes activists like the folks at the Susan Sebastian Foundation to remind us.

HAT TIP: Edward Segal pointed me to this story.

Does the Events Industry Have Any Political Influence?

Michael Hart contributed today's post. He's a business consultant and writer who focuses on the event industry.

Everybody’s heard at least a little bit of the political chatter over restrictions on LGBT people in Georgia and North Carolina lately.

A week or so ago, Georgia’s governor rejected a bill the legislature passed that would have allowed businesses not to serve gay people if it conflicted with their religious beliefs. About the same time, the North Carolina state governor said of a similar bill—this one creating a law about which public restroom people are supposed to use—“Bring it on!”

According to Atlanta Convention & Visitors Bureau CEO William Pate, the billion-dollar business the events industry brings to Atlanta every year had something to do with the Georgia governor’s decision. In North Carolina, a statement from the High Point Market Executive Committee made it clear customers are already starting to pull out of its event later this month—and North Carolina Gov. Pat McCrory isn’t budging.

So, did lobbying on behalf of the events industry make a difference in Georgia, but not North Carolina?

The truth is that it’s hard to know. While those of us who run tradeshows, conventions and conferences feel like we’re pretty important people—especially when we bring a citywide to town—the reality is that, compared to other industries, we’re small change.

But our customers are the real thing. And the fact that companies like Disney and Coca-Cola feel a need to take a political position in order to retain their customers tells you something about how much the way they approach their businesses has changed over the years. They aren’t just merely responding to markets anymore; they’re responding to the sentiments of their customers in ways that go beyond whether they’ll pay a certain price for a certain product.

Nothing in business is as simple as it once was—and that applies to the events industry as well. Yes, there are show organizers who still get away with selling their quota of 10 x 10s every year and creating a lineup of PowerPoint presentations by sponsors that they then call a conference program. But their days are numbered.

As customers in every part of the business world change how they do business, so must event organizers.

Effecting Change on a National Level: 3 Lessons I've Learned

Youth leader and activist Susan Rosenstock contributed today's post. She is a cofounder of umttr, a nonprofit that champions the caring support and mental well-being of teens.

My 16-year old son Evan, a high school sophomore, took his life on May 20, 2013, leaving a community shocked and saddened. 

Evan had never suffered from any mental illness prior to a basketball injury. That injury led to a back surgery, which then led him to feeling as though he'd lost his identity as a varsity athlete.

Four of Evan's friends came to me and said, “We have to do something to raise awareness about depression and teen suicide because, if this could happen to a kid like Evan, it could happen to anyone.” Their concern became the foundation of our non-profit umttr (you matter).

umttr has grown more than I would have believed possible only two years ago. With that growth, I have learned what it takes to create positive change in a community and on a national scale.

How do you do it? Here are the three most important lessons I can pass on to anyone hoping to effect change:

1. One size does not fit all.

To reach a large audience effectively, you need to understand what motivates that audience. What may work for adults may not work for teenage students. Be sure to tailor your promotional activities to the audience you want to reach by asking that audience what would work. Don’t guess! 

We work with teens and often find ourselves in situations where the adults and teens disagree about how to market to the “teen” audience. We always go with the teens.

2. Ask, ask ask.

Ask a sample of your audience about your promotional plans. Ask sponsors about the best way you can work with them for mutual benefit. Ask other activists if you can help to advance their goals. When in doubt, ask. 

Here's an example. When the Campaign to Change Direction, a White House Initiative launched by Michelle Obama in March 2015, asked umttr to become a founding member, we made a pledge to educate 70,000 students about the five signs of emotional distress over five years. In just six months we have already reached 50,000. All the campaign had to do was ask.

3. You're only as good as your words.

Language matters. Check with other activists, educators, nonprofits and companies in your field, to make sure the language you’re using promotes effective change.

We try, for example, never to say an individual “committed suicide.” That language still carries the stigma of suicide as a crime. Saying someone “died by suicide” or “ended his life” is preferred. This may seem like a small difference, but changing word-choice alone represents a big step toward recognizing that every suicide can be prevented.

10 Steps to Better Media Coverage for Your Association

Association executive Edward Segal, CAE, wrote today's guest post. He is CEO of the Marin Association of Realtors and the author of several exceptional books on public relations.

Associations face two important challenges in generating the publicity they want. First, it's impossible to know what stories every reporter, editor, or blogger is working on or may be planning. Second, if journalists don't know your organization exists, they'll never think to contact you for quotes or information for their stories.

Your association can quickly overcome these hurdles by becoming a resource to as many news outlets as possible. Here are 10 steps to help make that happen:

1.   Take stock and cast a wide net. Make a list of all the topics and issues in which your organization has knowledge, expertise, or information. With this list in hand, identify the news organizations, as well as Websites and blogs, that follow or might have an interest in these matters. To ensure you haven't missed anyone, conduct a search of relevant keywords and phrases in Google's Web, blog, and news categories.

2.    Initiate contact. Send emails to appropriate contacts at these outlets to tell them about the topics and issues in which your organization has expertise. Explain that your association wants to be a resource for their stories in these areas, and ask how you can be of help in upcoming articles.

3.    Stay in touch. Reach out to these reporters on a regular basis. By staying on their radar, journalists are more likely to think of you when they need you. But don't become a pest.

4.    Alert yourself. Set up Google Alert for the topics and issues for which you'd like to generate additional publicity for your organization. Evaluate the results and, as appropriate, contact the editors, reporters, and bloggers to offer your organization as a resource on future stories. If you contact them quickly enough and have something to contribute, they might include you in updates to those stories.

5.    Cast an even wider net. Join one or more online services that provide subscribers with inquiries from journalists, or help link experts with reporters. These sites include Help a Reporter Out, Muck Rack, PR Newswire's ProfNet, The Yearbook of Experts, and Radio-TV Interview Report.

6.    Don't wait. Respond immediately to all media inquiries. Whether reporters are on deadline or not, the sooner you get back to them, the more likely it is that you will have an opportunity to be a resource. Given the competition organizations face for publicity and the deadlines under which reporters work, the expiration dates of these opportunities may be very short.  

7.    Give good quotes. Journalists can be inclined to interview people who have demonstrated that they can give good quotes. When reporters see you've been interviewed by other news organizations, they may seek to contact you for interviews for their own stories. Consider your sound bites to be auditions that can lead to additional publicity opportunities.  

8.   Get a room. Establish a "press room" page on your Website. Make it as easy as possible for visiting journalists and bloggers to immediately see your association's areas of knowledge and expertise and how to contact designated spokespeople. Keep press materials current and ensure that links to news stories where your organization is mentioned are working.

9.    Plan ahead. News organizations may post editorial calendars on their Websites, or will be glad to send them to you on request. The calendars can be an early warning system about future stories: armed with this advance notice, you might be able to position your organization as a resource to the reporter or editor and wind up with more coverage for your association.

10.  Be patient. Providing journalists with whom you've had no prior dealings with tips and information for their stories can be an investment in time and resources. Sometimes the payoff will be immediate, such as a quote, attribution, or profile. At other times, your efforts may take some time to bear fruit. But if you don't try, the payoff will be zero.

Nonprofits and Noble Cause Corruption

Washington, DC (where I live and work) is the cradle of cause-related nonprofits.

The majority do great things, no doubt.

But I've also seen the dark side of a few of these organizations.

Some never pay their bills and don't think twice about stiffing honest, hard-working suppliers.

In fact, I've seen so many defaults by cause-related nonprofits, I won't take work from them.

Call it holier-than-thou zeal, if you want. 

I think the better term is noble cause corruption.

Noble cause corruption is a form of "police crime" in which cops break the law in pursuit of a goal they believe will benefit society at large.

A common example: fabricating evidence to ensure a conviction.

Noble cause corruption may serve society. 

But it can just as easily lead to the punishment of innocents.

Do you work for a cause-related non-profit? 

If so, have you checked your accounts payable lately?

With apologies to Eldridge Cleaver, if you're part of a solution, you may be part of a problem.