Friday, July 07, 2006

THE GATES/BUFFET EFFECT:
The Money That Changes Lives
Will also Change Philanthropy

The recent actions of Warren Buffet in collaboration with those of Bill and Melinda Gates are indeed the most significant philanthropic moves in decades, if not in the last century. Yet, the nonprofit sector is not publicly commenting. So far they left the comments up to the media. I believe that Gates/Buffet will challenge every aspect of the philanthropic enterprise. All those of us who work within it, either professionally or as volunteers will feel its effects. We will have to adjust our perceptions as well as our actions. It is no longer business as usual. There will be new possibilities, new methodologies, new visions and new accomplishments. Barriers will be broken. Those who choose to hide in old methodologies will become obsolete, as well as their organizations.

We are interested in your comments. So are the influencers of the nonprofit world, many of whom will be reading this blog.

If you are coming to this blog after reading Gary Wexler’s Passion Marketing Inform, please comment below. IF YOU HAVE NOT READ THE FULL TEXT OF THE PASSION MARKETING INFORM ON THIS SUBJECT, CLICK HERE and then return to post your comments on the blog."

It is imperative that the nonprofit world enter into this discussion. You don’t want to be left out in the course of major change.

For more information on Gary Wexler and Passion Marketing, go to passionmarketing.com.

Thank you for your time. I know how busy you are.

Gary Wexler

Wednesday, April 19, 2006

THE CHROMOSOME OF PHILANTHROPY:
Because it is in our blood

Gary Wexler is the President of Passion Marketing

First: Why this blog?

The publications of the Nonprofit/NGO sector (sometimes called The Third Sector) report on this highly emotional and dramatic sector in a narrow, inhibited, deadly, dull manner. They paint a picture of what is deeply human and textured as antiseptic and flat. It creates a culture where many of us do not communicate about the sector in a way that is reflective of the passion we feel for its causes. We dedicate our professional lives, volunteer time, as well as our monetary support to this sector because it is in our blood. We want to see the nonprofit world succeed. There are issues that are holding the sector back. There are issues that are compelling it forward. It is time we open up to robust discussion and debate that reflects the vibrant soul we pour into these causes.

The Chromosome of Philanthropy will delve into the depth of the sector, representing it in all its creativity and intensity, its hopes and dreams as well as its difficult realities. The issues will be tackled through the prism of the marketing discipline. Why? Because when one markets a nonprofit organization, the job requires that the marketer burrows into the core of the organization and its cause. As a result, when marketing is done correctly, all aspects of the organization and the sector are exposed.

Each edition of The Chromosome of Philanthropy will be no more than a 3-minute read.

Through the marketing of over 400 nonprofits, I have gained a unique perspective as to how the sector succeeds and how the sector fails.

In this blog I will share much of what I see and and what I learn. I will offer ideas. Ideas are the ground upon which this sector stands. I will engender discussion and spark debate. My goal is to ultimately create a vibrant conversational agenda for the sector, leading towards industry-wide changes. Send the link to this blog to everyone you know who is dedicated and concerned about nonprofits, the human condition, and the condition of society.

So, let's begin and tear open the first envelope.

The headline:

While spending millions in marketing, many nonprofits are proving themselves incapable of creating marketing programs that lead to quantifiable results.

The issue:

Marketing is about creating results. Yet, many nonprofits are wasting donors' millions on efforts that are destined to fail, as well as wasting the time of their board members and staff. In their marketing efforts they create lots of stuff, rather than having the strength and foresight to make the internal changes necessary to create results. They want the easy way out. They expect magic from their marketing expenditures rather than understanding that the marketing partnership takes intelligent, strategic, and hard work on both sides. As nonprofits who have been successful in their marketing have learned, there are no easy solutions.

Through ten years of working in this field, I have learned that in the Nonprofit/NGO world marketing is ultimately about collaborating to create three results and three results only.

Every other task of Nonprofit/NGO marketing is a subset of these results. Yet, nonprofits get caught up in the subset, losing the forest for the trees.

Ask just about any Nonprofit/NGO, and most likely they can not tell you what the real results of marketing should be. They will quote the subset, "Marketing is about creating an image, a message, a buzz," or the biggest catch phrase of all-
"It's about branding." They love tossing around the word "branding." Marketing, they believe, is about creating brochures, ads, PSA (Public Service Announcements). They also love those PSAs, especially having the excitement and prestige of playing with ad agencies who will do the work pro bono in order to give their creative people a chance to win an award. (Ad agencies have no clue how to create the results that nonprofits need. I know. I was a Creative Director and copywriter in the country's biggest ones for twenty years.)

If nonprofits were to recognize what the real results should be, it means that the corresponding departments - the fundraisers, the policy professionals or the membership directors, would have to make serious changes in order to effectively collaborate with the direction of the marketing.

In theory, everyone embraces organizational change. But in practice, few are willing to accommodate it, including board members. Organizational change is about actions that require extra labor, innovative thinking and commitment as well as risk. I have seen many organizations who talk "change" ultimately choose the safe and same route - a brochure, an ad or a website they can throw at the problem.

Evaluation?
Ask many Nonprofits/NGOs how they will evaluate the success of their marketing expenditures, knowing that the expenditure of donor funds should be responsible expenditures, and they scratch their heads, offering answers such as, "We'll do research. We'll do focus groups. We'll do awareness studies." Rarely do they think to say, "We will judge it by how it affects the bottom-line of our fundraising, our cause advocacy or our participation/membership numbers." And even more rare is when they have an executive director, board or oversight committee that understands how to truly evaluate the marketing. That is why this waste of millions continues.

Do you agree? Do you disagree? What has been your experience? What do you think are the issues? What will it take to make change?
Please comment.


The coming series of The Chromosome of Philanthropy will explore what those new innovations and methods should be in order to create results and what it will take to make them happen. Expect resistance. Expect controversy. But expect change. From its unique perspective through marketing, The Chromosome of Philanthropy will then move on to explore other pressing issues within the sector that no one dares to express.

Stay tuned.
For an email announcing each new edition of The Chromosome of Philanthropy, sign up now for your free entry to what promises to be a boiling hot exchange.

I know how busy you are. Thank you for these few minutes of your time.

Gary Wexler

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