Tribes Make a Difference    20

Individuals like independence, but they also like to belong.

When individuals come together they form what marketing guru, Seth Godin, has extensively written about, namely, tribes.  A tribe is a strongly or loosely knit group of individuals who may share a common worldview, opinion, concern or focus upon a cause.  As Godin found in his book Tribes, a shared interest and a way to communicate are what is needed for the existence of a tribe. (1)  When an individual sees they have company in terms of a belief, it creates a stronger sense of conviction and worth.  It also creates a sense of belonging which is different than isolation and being alone.

The creation of a tribe, opens the door for individuals to combine their assets to impact a problem or need in the world.  It also creates an environment to share a common cause and create an impetus to change a society and culture.

In the world of philanthropy, there are many worldviews and causes represented by nonprofits.  Some nonprofits are focused upon housing, food, health, education, environment, animals, and the list goes on.  Each one of those categories may have a nonprofit that represents a certain philosophy that may be different from other nonprofits in that category.  For example, some nonprofits may believe that food should be provided to those in need while another nonprofit may believe individuals should be shown how to grow their own food in order to address their need.

There are more than one million nonprofits in the United States alone. Many individuals may have 5 or 7 nonprofits on average which they support.  Some donors will provide donations and feel enough comfort from that exchange.  Other donors will want to be more closely engaged with a nonprofit to the point of feeling and being formally included as a member of a club or society.

Giving Clubs

Because of this desire to belong, it is important for nonprofits to have giving clubs which recognize the generosity of individuals.  It serves a number of purposes:

• Clubs provide a way for donor to be more deeply engaged through communications, events and recognition of their loyalty.
• Clubs create an opportunity for a nonprofit to create a pathway for donors to grow in their lifetime giving. In other words, donors may increase their giving amount over time.  Some donors may also provide legacy gifts to share their remaining assets at their passing.
• Clubs provide a social group which can create new relationships with other individuals and replace relationships that were provided by work roles prior to retirement.
• Clubs generate a solution for community needs that may otherwise go unaddressed.
• Clubs instill an emotional connection which integrates well with the importance of emotion to philanthropy.

With the creation of giving clubs, comes the importance to spend time and effort in developing ways to meaningfully engage donors and align them with the club.  It costs 10 times more to gain a new donor than it does to retain a current donor.  Nonprofits in general do not have a stellar record when it comes to donor retention.  On average, less than 50% of donors are retained from year to year in the United States.  In fact, a large survey of donors indicated that 40% of donors were willing and able to give more but did not. (2)

Once a nonprofit has an identified tribe or what we call giving clubs or societies, it is important to spend time on how donors will be engaged.  How often will they be meaningfully touched?  How will they be touched and will it be well received by donors?  What type of feedback mechanism will be created to understand donor interests and effective methods to deepen their donor loyalty?

Vision and Leadership in Tribes

What makes certain tribes more successful than others – is a vision and leadership.  It is one thing to share a belief and to be able to communicate among the tribe, but it is another thing to also have a shared vision and effective leadership.

A vision can generate greater emotion.  Individuals can get excited about a new direction or innovation.  They can also feel more worthy because of the direction to be taken.  A vision provides a commonly held focus upon where the group needs to be in the future.  The vision also helps to bolster the tribe’s commonly held view of the world.  For example, a nonprofit focused on providing mobile grocery stores in poor inner city neighborhoods is promoting and supporting a view that families should have access to healthy food.

Effective leadership is needed to take the tribe from status quo to a better community. This leadership may come from volunteers and/or paid nonprofit staff.  It may be fueled by an overriding story that is the basis or foundation for the existence of the nonprofit.  Leadership helps to move a tribe toward a view of an improved community.

Ideas for a Stronger Tribe

There are a number of ideas that can strengthen the bonds of a tribe and grow the size of a tribe:

• Identify a vision that includes emotion
• Share brief stories which underscore the purpose and importance of the nonprofit and the role of the tribe.
• Create a symbol of membership – a membership pin – which can be worn.
• Provide ceremonies that are used to recognize new and loyal members of the tribe, such as recognition during a social that is held periodically for the group of donors.
• Develop a meaningful name for the tribe.
• Give periodic appreciation to individuals for their being a member and long-term support.
• Show the impact of the tribe; it is important to show how their support has made a difference.
• Tie the tribe to the history surrounding the nonprofit. It creates a sense of permanence and importance.
• Provide an opportunity for tribe members to share their story about why they give, what it means to them and the importance of the tribe. This should be shared with other tribe members to grow a sense of shared loyalty.

Toolkit Suggestions:  Once giving clubs are created, it is important to make sure a plan is created which identifies what is to be done, who is responsible for the tactic, and the timing of the tactic.  A method should be developed to gain feedback from donors especially mid-level and major gift donors to identify what works and what needs to be changed in order to create a stronger bond

NOTES for Tribes/Belonging Episode 20:

(1) Seth Godin, Tribes: We Need You to Lead Us, (New York City, Portfolio/The Penguin Group, 2008), 1.

(2) Penelope Burk, “The Burk Donor Survey: Where Philanthropy is Headed in 2014,: September 2014, 12.

Young Executives    19

There is a growing interest on the part of young executives to become a part of nonprofit activity.  Many young executives are interested in combining generosity with social gatherings.  It is a way to make a difference in the community while strengthening and expanding their social circle.  It is also a way to become more actively engaged with a nonprofit beyond the gift transaction.  For many young executives, it is an opportunity to network with other nonprofit executives who may be viewed within the community as a leading executive.

One such group in the Midwest was created in association with a regional nonprofit in 2013.  The group was created by a bank executive who had previous experience in creating a similar group in different metropolitan area.  The group consisted of approximately 24 young executives who made individual commitments to give a specific amount.  Not only did the group raise a significant amount of money, their gifts were matched by a company who was impressed with the determination and support showed by the group.  Because the young executives took care of scheduling, agendas and other organizational matters, minimal effort required by the nonprofit.  The program provided $20,000 to $40,000 per year for the nonprofit.

From this three year experience, which was more successful than expected, there were a number of key elements which led to success:

• Leadership of both the young executives group and the nonprofit were committed to a shared goal. In fact, the nonprofit foundation board identified a board member to be a liaison to the young executives.  The group had a charter and written expectations which each member signed.
• Each young executive committed to the same specific dollar goal to be raised in one year. The goal could be reached through a combination of personal gift, company donation, and/or social event.  Most executives used all three methods to reach their personal goal.   The leader of the young executives is the one who recruited and gained the pledge from each member.
• The young executives held quarterly meetings to keep aware and to maintain the social network. Local businesses and professional organizations normally provided space and food for the sessions.  Some meetings were held at the nonprofit location, providing opportunities for key nonprofit leaders to participate and provide tours.  As time went on, the social fundraising events became an informal way for the young executives to keep connected.
• The young executives selected a specific project for use of their dollars. The project was selected from a list of four or five projects provided by the nonprofit which met the general interests noted by the young executives.
• The leader of the young executives met face-to-face, via email, and through text messages with the group members.
• The nonprofit provided several lunches during the year for young executives to meet and talk with the CEO, COO and other key leaders of the nonprofit.
• There was a written document of understanding in terms of what could and could not be used in social media and associated with the social events sponsored by young executives. This gave the marketing department a greater comfort level with the social media presence of the young executives group.
• The foundation used different mediums to share information about the young executives and their impact. This created more interest on the part of young executives, leading to discussions about how to create and manage a second group of young executives.  Once 30 young executives are engaged, it is important to consider whether another group should be created.  Once the group reaches 30 individuals, it becomes difficult to create a strong connection for individual members.
• The leader of the young executives became a member of the foundation board because of his role in initiating the young executive group. This gave greater importance and visibility to the program.  It also served as a breeding ground for new board and committee members.  It also provided a way for second and third generation donors of families to become engaged at an early time in their career.
• Young executives tend to be in their late 20s, 30s and possibly early 40s.
• This group also initiated discussions to consider a mentor program or formal program to train new, young leaders in nonprofit volunteer leadership.

Toolkit Suggestion:  The Young Executive program is a game changer for a nonprofit because it diversifies the audience of the nonprofit, creates a new channel for future leaders, and establishes another channel of revenue.  It often opens doors to businesses that were not open before the young executive program existed.  When considering the international and large nonprofits, the young executives program provides an effective way for local and regional nonprofits to connect with the younger population which otherwise tends to be a gap for many nonprofits.

TWIG   18

A twig of a tree allows for growth.  Just like a tree, some nonprofits have created a formal program to allow members to join online and create their own social community in support of the nonprofit.  These will grow if a purposeful approach is taken to encourage membership in a TWIG type of program.

A children’s hospital has been most successful in creating such a program.  It has grown because of the use of online tools.  Social groups can come together and subscribe online.  Their purpose is to raise money for the children and to share information about the nonprofit.

The program is essentially a social giving and ambassador program combined.  Like the young executives programs suggested earlier by Deep Generosity, there is a set of rules to be followed, and processes to be followed.  This insures money raised is appropriately applied to the cause and there is a consistent use of the nonprofit brand.

Major key points for consideration of TWIGs program:

• A leader is identified who must be of a certain age.
• The leader and social group must agree to a list of reasonable expectations which include appropriate methods and events for raising funds.
• Encourage the use of checks by donors which are made out to the nonprofit to generate donations. This insures tax letters and appropriate recognition are possible.
• Provide a list of suggestions for the social group or a basic “how to” list for them to organize and proceed.
• Encourage the social group to set financial and participant goals. This keeps the group focused.
• Provide social media space for updates from TWIGs to be shared.
• Periodically include updates from your organization including impacts.

Toolkit Suggestions:  TWIG is not for every nonprofit.  Because it takes more time and online capabilities than the young executives program, TWIG is not necessarily a good program for small nonprofits.  Like young executives, this program provides an opportunity to diversify donors, identify potential new volunteer leaders and generate more buzz within the community.

From the Shoes of the Donor    17

If you have seen one donor, you have seen one donor.  In other words, donors may be similar but they are also very different.  Age groups of donors generally have different expectations with respect to their nonprofit experience.  For example, the generation that grew up during World War II has tended to write a check and leave the nonprofit to work on the cause.  The generation in the 20 to 40 year old range tend to like more involvement and control of the relationship than the older generation.  They also like to communicate in a paperless environment.

Women and men are also different in their approach to generosity.  Indiana University has a good report that is worth reviewing on this subject. (1)

When sitting down and planning how to develop a relationship with donors, it should be pursued from the perspective of the donor.  This may require discussions with donors of that age to find out what they would like to see.  This also provides an opportunity to form a deeper relationship with these donors.

A written plan is best used to develop a tribe.  The plan should identify the action, timeframes, responsible persons, resources required and tracking required to measure impact.  Where do you start?  Start with a manageable sized group.  Often, it is good to start with major and mid-level donors.

The plan should consider how to create that emotional linkage to donors as well as how to impact and steward to grow a loyal donor.

Stelter provides some very good documents for consideration for the development of legacy donors where they take into consideration the diverse interests of different potential groups of donors.  They highlight the often missed group of donors who offer potential for legacy gifts. (2)  It is also important to remember to connect with donors through emotion and their interest in making a difference.  This means one should avoid a focus and use of technical terms and death.  See their legacy through their eyes, not as a transaction.

Toolkit Suggestions:  The days of treating donors alike is quickly fading.  Donors are used to being addressed from their worldview and areas of interest in other areas of their life.  Therefore, it is important to consider how your nonprofit can look at groupings of donors in a manageable way.  This will improve the level of giving and longevity of donor relationships.  When approaching donors for consideration of a legacy gift, it is important to remember to lead with emotion, instead of weighing down discussions with technical terms and instruments.

NOTES for Tribes/Belonging Episode 17

(1)  Women and Giving Report.  Accessed at https://philanthropy.iupui.edu/institutes/womens-philanthropy-institute/research/gender-giving.html

(2)  Stelter, Research and Webinars.  Accessed at https://www.stelter.com/white_papers.