Tough Times Demand Re-Emphasizing Relationships

Kathy Reeves

You often hear common-sense advice when attending conferences. You take notes and you ask yourself, “This is so basic, I can’t believe I’m writing it down.” But have you ever caught yourself repeating that fundamental information several times after the event?That’s what happened after Kathy Reeves, the Community Relations Manager for Enterprise Holdings, spoke at the eighth annual Charity Symposium by the St. Louis Better Business Bureau on Thursday, Aug. 27, 2009.  

The theme was, “Giving: Focus On The Economy.” Reeves’ presentation could be summed up with the headline, “Tough Times Demand Re-Emphasizing Relationships.”  

“In my mind, this is such an important time to be talking with your partners — both foundations and corporations,” she said. “Invite them for coffee. Invite them for a tour. Show them what their funds have done. Invite them to see programs. Reach out to them and talk about your story. Because if they funded you once, then they wanted you to succeed. They’re your advocates. But the only way they can be your advocates is if they know your story.”  

Once again, here’s a call to action for nonprofit communications and marketing professionals. But communicating to corporate partners and foundations requires an approach that’s embraced and executed by executive directors and the fundraising and development staff. These individuals often have a tendency to shy away from communicating the unvarnished truth because they don’t want to create a perception that they’re failing to fulfill the organization’s mission.  

“The biggest issue is that you have to communicate with funders and tell them that you have two less people and you’re trying to serve 30 percent more people,” Reeves said. “If you don’t communicate that to them, they won’t understand your situation.  

“Most (nonprofits) understand that grant makers don’t love to fund operating expenses. We’re now seeing much more of a willingness from grantmakers to fund operating expenses. Again, part of this goes back to telling your story. If you don’t tell them how the economy is affecting you and impacting your bottom line, they won’t know what your needs are.”  

So what can organizations do? Reeves said the current economic situation requires two-way communication.  

“We’re spending a lot more time talking to our partners,” she said. “In fact, we’re reaching out more to them and asking them what they need, ‘We used to do this with you, now what we should be doing?’ If (funders) are not getting it, help them understand.”  

Reeves also emphasized relationship maintenance with corporations or foundations that no longer provide funding. I probably use the phrase, “St. Louis is a big small town” about once a week. That statement accurately describes the business and philanthropic communities in many towns. But in St. Louis, many nonprofits struggle to navigate a corporate landscape that continues to shift. Anyone working in the nonprofit community for a decade or more can rattle off a list corporations that no longer call St. Louis “home.”  

“If someone starts cutting funding that you’ve received in the past or if somebody cuts it completely, this is not a time to be rude,” Reeves said. “And that happens… it’s amazing how many times that happens. Show loyalty because that will never be forgotten. Not only that, but when they’re talking to other funders, they are probably going to tell other funders a story about how gracious you were. Because all of the grantmakers do talk and they love good stories. They love good organizations.  

“Grantmakers also network and do it fairly well. They talk to each other, mostly about (nonprofits). We talk about who the best directors are and what the best programs are. We talk about people we’ve had challenges with.”  

With so many requests for funding, there’s a perception that grantmakers are overwhelmed with requests. With the stock market down 30 percent or more from its all-time high of two years ago or so, foundations have less money to give.  

When a foundation declines your request, accept it and don’t do an end-run around the person who handles requests.  

“No means no,” Reeves said. “A better approach than going through five other doors in the organization is to call the funder and ask them for reasons why you were turned down. If you just go through another door, they are going to hear about it. It’s probably going to land back on their desk and they’re going to wonder why no means no.”   

Foundations still want to fund organizations that are striving to solve problems.  

“One thing you don’t think about is that grantmakers and funders are the biggest optimists in the world,” Reeves said. “They really believe that they can address a cause or an issue if they give money to a program and that program will fix it or, at least address it. Tell them your story. Tell them about prior successes. And tell them about your struggles. The way that you’re going to get that flexibility from your funders is by helping them understand what your needs are. That’s how you build those partnerships.”  

Tough Economy Requires Nonprofits To Keep Communicating, ‘Use The Seal’

Art Taylor

Eight years ago, Art Taylor spoke at the first Better Business Bureau Charity Symposium in St. Louis. The BBB’s Wise Giving Alliance introduced standards for nonprofits so donors could make sound giving decisions and foster confidence in charitable organizations.

Back then, if a charity met the standards it could not place the Wise Giving Alliance seal on any fundraising materials or elsewhere. I remember addressing Mr. Taylor in front of a crowd of about 200 attendees and stating, “I work for the Boy Scouts and if a Scout meets all of the requirements for a badge, we give him the badge. Why not do the same with the seal if an organization meets the standards?”

 

After a smattering of applause from the assembly, Taylor said, “No, because we’re not going to do your marketing for you.”

 

Taylor, now the President and Chief Executive Officer of the BBB Wise Giving Alliance, returned to St. Louis on Thursday for the Eighth Annual BBB Charity Symposium. It took a few years, but the Wise Giving Alliance now allows organizations to proudly display the logo for meeting the standards. I believe the change increased awareness of the program. Organizations that earned the badge fully understand the importance of accountability, good governance and transparency.

 

“Use that seal,” Taylor said. “I know how many of you have the charity seal. Use it. Show the world that you meet these important standards. I get calls all the time from people who say they don’t give to any organization that doesn’t have the BBB seal. So if you have it, use it.”

 

 

The theme for the symposium was, “Giving: Focus on the Economy.” Taylor highlighted some areas that communicators and marketers should focus on. Organizations must thoroughly assess their ability to communicate their accomplishments.

 

“There will be some (organizations) that do well in these times and some that won’t,” Taylor said. “A lot of it depends on how well you cast your mission and how you reach out to donors. We can see from statistics that things are bad right now. This is not the greatest time to be in the market raising money. But what are we supposed to do? We can either fold up our tents and go home, or we can think about what we can do to manage through this difficult time.”

Taylor suggested that organizations focus on collaborative projects, consider adding or improving fee-based income streams and applying for government and foundation grants.

“When we seem to have money, no one wants to work together,” Taylor said. “But when we don’t have the resources, we tend to come together and figure out ways of getting things done that can actually be more beneficial to the people we serve than going at it alone.”

Taylor sees a trend in donors and others demanding organizational effectiveness information from nonprofits. Marketers and communicators can provide valued skills and expertise here. By providing strategic communication on outcomes, they can enhance their organization’s standing and their own value to the charity.

“People want to know if you are effective in meeting your mission,” Taylor said. “Are you meeting your goals? I think it is important for organizations to share that information. People want to know if you are doing what you were established to do.”

Taylor encouraged communicators to keep pursuing media placements. Media might be more receptive to a story on how organizations are collaborating to solve problems in the community.

“When I talk to media, I tell them that virtually everything going on in society has a charity angle to it,” Taylor said. “For every problem we have, there’s a charity working to solve it in some way. If they want to, there’s a way to put a charity into every story.”

For more information on the BBB’s Wise Giving Alliance Standards, visit http://stlouis.bbb.org/.

A special note of thanks to Jim Judge, who directs the local BBB Wise Giving Alliance, and Michelle Corey, the President and Chief Executive Officer of the St. Louis BBB, for their long-term commitment to assisting local nonprofits and charities through this symposium.