MARKETING LITERACY for the Nonprofit Sector

MARKETING LITERACY for the Nonprofit Sector Why Marketing Professionals Make Great Board Members Presented by A joint project from Library of Cong...
1 downloads 2 Views 4MB Size
MARKETING LITERACY for the Nonprofit Sector Why Marketing Professionals Make Great Board Members

Presented by

A joint project from

Library of Congress Cataloging-in-Publication Data Marketing literacy for the nonprofit sector : why marketing professionals make great board members / by BoardSource. p. cm. "A Joint Project of BoardSource and the Taproot Foundation." ISBN 1-58686-121-2 1. Nonprofit organizations--Marketing. 2. Marketing--Social aspects. 3. Nonprofit organizations--Manangement. 4. Social service--Marketing. I. BoardSource (Organization) II. Taproot Foundation. HF5415.M2196 2010 658.8--dc22 2010044458 © 2011 BoardSource and Taproot Foundation. First Printing, November 2010 ISBN 1-58686-121-2 Published by BoardSource 1828 L Street, NW, Suite 900 Washington, DC 20036

T HIS P ROJECT WAS F UNDED

BY

C HEVRON .

BoardSource and the Taproot Foundation appreciate Chevron’s deep commitment to building the capacity of the nonprofit sector through this and other projects

TABLE OF CONTENTS FOREWORD FROM CHEVRON . . . . . . . . . . . . . . . . . . . . III INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V Aaron Hurst, President and Founder of Taproot Foundation, and board member, BoardSource About Marketing Literacy for the Nonprofit Sector: Why Marketing Professionals Make Great Board Members . . . . . . . . . 1 PART ONE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 For Marketing Professionals: Introduction to Nonprofit Boards and the Nonprofit Sector PART TWO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 For Boards and Chief Executives: How Nonprofit Boards Can Benefit from Including Marketing Professionals APPENDIX 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Interview Subjects for This Project APPENDIX 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Survey Methodology and Results: The Marketing Professional and Board Service APPENDIX 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Understanding Marketing Appendix 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 The Strange and Wonderful Chemistry of the Boardroom Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

i

FOREWORD FROM CHEVRON At Chevron, we have an unwavering commitment to being a good partner focused on building productive, collaborative, trusting, and beneficial relationships with governments, other companies, our customers, our communities, and each other. That’s why we are so delighted to partner with BoardSource and Taproot on this important project: to help connect qualified, interested marketing professionals with nonprofit boards — the quintessential community service. In this handbook, you will learn about the nonprofit sector — how it exists solely for the social benefit; how important it is to our national well-being, and how there is so much more to be done, especially in these turbulent times. You will learn how the boards of directors of these organizations — unpaid volunteers who believe passionately in the mission of the organization they serve — comprise a strategic force for good as they oversee the organization’s activities, set direction for its future, and ensure the sufficiency of its resources. And who are these board members? Ordinary people like you, and like us. People who care and who want to give something back to their communities. They do important work with limited resources. With this project, Taproot and BoardSource have teamed up to discover how more people with needed, professional skills might be inspired to fulfill that desire, by serving on nonprofit boards. It is our fond hope that, whether you are a marketing professional who is wondering whether nonprofit board service might be a good fit for you, or a board member or executive of a nonprofit organization seeking committed, passionate people to serve on your board, you will find the answers in this slim handbook, and make the connection that will help move the sector forward. Your commitment to the betterment of society is evidenced just by picking up this book. May it make a difference! Thank you. Matt Lonner Manager, Global Partnership and Programs Chevron

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

iii

INTRODUCTION I started the Taproot Foundation in 2001 with a vision to ensure all nonprofits had access to the quality pro bono services they need to thrive. As a social entrepreneur working to build an organization that could have a measurable impact in our society, I faced many challenges. One of the greatest ones was getting the word out about the important work I believed (and of course, still believe) we had embarked upon. Nearly every nonprofit thinks it is the best-kept secret. They are doing amazing work and if only more people knew them and really understood the impact of their work...you know the drill. The funny thing is that they are all right (well, nearly all). The nonprofit sector collectively is America’s best kept-secret. Far too few Americans know about the issues facing their communities and the heroic nonprofits battling them every day. Many nonprofit boards are mismanaging one of their greatest assets — their story. The cost to a nonprofit for this disconnect is hard to calculate, but it surely can be counted in donations not made, people not engaged in service, and clients not served. But the cost is much greater to society — the “shareholders” of every nonprofit. Here, the loss may be counted in ineffective public policy and a population that struggles to adapt to address critical social, cultural, economic, and environmental challenges. For decades, nonprofit boards have worked to become financially literate and have refined the process to govern an organization’s fiscal performance. It is time to build the “marketing literacy” of nonprofit boards. Marketing, after all, is not so much a business function as it is a social function. And it is time for it to better serve the social sector. That’s why I am proud to be partnering with BoardSource and Chevron to call on the marketing profession to embrace board service. Every nonprofit needs a marketing voice at the board table to ensure its story is heard, in addition to the financial and human resources it needs to thrive. With the leadership of the marketing profession, one day soon the story of the nonprofit sector will be told. It will help connect Americans with their values and aspirations for their communities, the nation, and the world. Whether you are a marketing professional who wonders what nonprofit board service might be about or a nonprofit board member who wonders how a marketing professional might aid you in telling your organization’s story, I urge you to join me in helping to make this critical connection. MAKE IT MATTER.

Aaron Hurst President & Founder Taproot Foundation

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

v

HOW TO READ THIS BOOK

TO

THE

MARKETING PROFESSIONAL

You have the most fascinating profession in the world. Your specialty is communicating — a brand, an idea, a message — and making sure that the communication is received, accepted, and even celebrated in the marketplace. As a marketing professional, your reach is everywhere. But is it, indeed, everywhere? With this small book, we’d like to introduce you to the world of nonprofits and in particular, the boards of nonprofits, where your talents and expertise will be invaluable. They need you.

Find out why in Part One, For Marketing Professionals: Introduction to Nonprofit Boards and the Nonprofit Sector.

TO THE BOARD AND STAFF ORGANIZATIONS

OF

NONPROFIT

Nobody knows better than you that nonprofits need great boards to help them with their strategic direction, ensure they have the resources to take the organization in that direction, and oversee their progress. Great board members come from all areas and possess a myriad of knowledge and competencies. But one professional skill that has been largely overlooked when boards seek new members is MARKETING. Marketing professionals, who run the gamut from selfemployed marketing consultants to vice presidents of large corporations, all share one thing in common: They focus on communicating the value of an organization. These folks make engaged, focused, and knowledgeable board members. You need them.

Find out how what marketing professionals can do in Part Two, For Boards and Chief Executives: How Nonprofit Boards Can Benefit from Including Marketing Professionals.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

1

WHY HAVE WE BROUGHT YOU TOGETHER? The purpose of this handbook is to connect these two incredibly important groups: leaders of nonprofit organizations who need creative, insightful board members who understand that the mission of an organization must be artfully articulated and communicated and its reputation carefully guarded, and marketing professionals who live and breathe that understanding every single day.

We believe it’s a match that’s long overdue. Any organization, whether for-profit or nonprofit, is only as successful as its reputation. In the nonprofit world, where resources are typically extremely limited, messaging is often erratic, inconsistent, or nonexistent. New media technologies require new and integrated strategies that utilize social media; brand messaging placement; “product” placement, which in the nonprofit sector may be “service” placement; and creative media partnerships. Who is giving nonprofits that help? For organizations that have marketing staff, certainly that staff is their first line of assistance. Smaller organizations that may not have marketing staff may utilize volunteers, either board members or pro bono volunteers who offer their assistance on large projects such as a rebranding exercise or demographic analysis. But, these projects are by their nature managerial and are best suited for staff. Where the board of most organizations comes in is in an advisory capacity. Why do many, if not most, boards think “we need a lawyer and a financial expert on our board” and overlook other professionals like marketing? A nonprofit organization has a brand and a reputation just like any other organization; a marketing professional on the board will raise the vital importance of seeing through the marketing lens — thereby raising the entire board’s level of what we’re calling “marketing literacy.” This handbook gives an overview of the nonprofit sector and board service, and shows, through the results of a survey and interviews with marketing professionals, that the skills and competencies of this group comprise an ideal fit for nonprofit boards. Board members come to nonprofits through a variety of onramps, but especially through volunteerism. BoardSource’s partner in this project, the Taproot

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

3

Foundation, specializes in a particular form of volunteerism: pro bono service. In addition to raising the level of marketing literacy for the board, another great value of having marketing professionals on the board is to help secure pro bono marketing resources. This book also tells you how to secure these important resources to build marketing capacity. It is our hope that boards will begin to recognize the value of broadening the “literacies” on their boards, to include the critical one — marketing literacy — which we introduce with this project, and that nonprofit professionals will recognize that nonprofit board service is a valuable outlet for their talents, their interests, and their altruism. The time is now. The nonprofit sector faces challenges like never before — with increased need for services and decreased financial resources. The sector cannot afford not to leverage the strengths of individuals who are talented, willing, and able to make a difference.

Marketing professionals and nonprofit boards: Come together, right now.

4

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

PART ONE: FOR MARKETING PROFESSIONALS Introduction to Nonprofit Boards and the Nonprofit Sector

NONPROFIT ORGANIZATIONS... ...span a wide spectrum of mission areas, resources, values, history, and stakeholders — from small, local homeless shelters to large, international trade associations; from community foundations operating within a geographic region to educational institutions that attract students from around the country. Nonprofits are a vibrant, essential element of our social landscape. They struggle to reduce poverty and bring an end to homelessness. They strive to build safe places to learn and play, create inspiring art and music, and protect natural resources. A lot of the work of nonprofits is done by volunteers, folks from all walks of life who feel passionate about what the nonprofit does. And there are many, many ways to express that passion.

TEN THINGS YOU NEED TO KNOW ABOUT THE NONPROFIT SECTOR 1. MISSION is the motive, not money. There are no shareholders or owners of the organizations in nonprofits. 2. Nonprofit organizations exist to serve a social purpose, a constituency, or a cause. They are NOT prohibited from creating excess revenue over expenses, but any surplus must be used to support the organization’s mission. 3. Nonprofit funding may come from just a handful of sources, like a foundation, or from an array of charitable contributions, membership dues, grants, fees from programs and services, and more. 4. The sector goes by many names: the not-for-profit sector, the third sector, the independent sector, the philanthropic sector, the voluntary sector, or the social sector. Outside the United States, nonprofits are called nongovernmental organizations (NGOs) or civil society organizations. 5. The sector is HUGE. In 2009, there were more than 1.7 million tax-exempt nonprofit organizations registered with the IRS under the 501(C) tax code. About 70 percent of those are public charities. And most of them are nonprofit corporations also governed by state laws. 6. The tax designation for a public charity is 501(C)(3), meaning these organizations are tax exempt; therefore, you can donate to them and take a charitable deduction off your taxes. 7. There is accountability. Regardless of their level of revenue, all tax-exempt organizations are required to file reports annually with the IRS. 8. Religious organizations are also public charities but they’re not required to register with the IRS. Although, about half of the country’s estimated 350,000 religious organizations do. 9. In 2008, the nonprofit organizations in this country employed 10.5 percent of the country’s work force—close to ten million paid workers. 10. All nonprofits must have a governing board. Sometimes the board members are called directors, sometimes trustees. In case you didn’t notice, MISSION is the number one thing. Every nonprofit has a mission, and everyone who works with a nonprofit —staff, volunteers, and board of directors — needs to CARE about that mission. Passionately.

8

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

WHY DO NONPROFIT ORGANIZATIONS NEED BOARDS? There are legal, ethical, and practical reasons to build a board when a nonprofit is created. These reasons shape the foundation for good governance.

L EGAL R EASONS State laws require that nonprofit corporations have a board to assume the fiduciary role for the organization’s well-being. These laws assign overall responsibility and liability to that board. In addition to the board’s responsibilities as a governing body, individual board members are bound by their legal obligations: the duties of care, loyalty, and obedience. The articles of incorporation and bylaws define the internal authority within the nonprofit and clarify the board’s role on top of the decision-making hierarchy. Federal law is less specific about board structure, but it does expect the board to serve as the gatekeeper for the organization. When applying for recognition of tax-exempt status, board members for a nonprofit must be listed to allow the IRS to determine whether proper oversight has been established.

E THICAL R EASONS The board functions, in part, to assure the public and all stakeholders that the organization is in good hands. It assumes responsibility for the organization’s achievements or lack thereof. It goes beyond the legal requirements to ensure that the organization not only does things right, but does the right thing. The board acts as the agent for the organization’s constituents. Board members are not there to benefit personally from their affiliation; during decision making they are expected to place the interests of the organization above any other considerations. Oversight is the board’s primary duty. It works closely with management to ensure that goals are met and that ethical principles guide all activities.

P RACTICAL R EASONS A board is made up of individuals who, at one time or another, dedicate their efforts to help the organization get its work done. Detached from daily affairs, the board is able to differentiate the trees from the forest — to look at the organization as part of its larger sphere and not just as an office that carries out the strategic plan. Individuals come and go, but the board as an entity remains. When good practices are institutionalized, the changing of the guard does not adversely affect the good work that has been accomplished.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

9

TEN BASIC RESPONSIBILITIES OF NONPROFIT BOARD MEMBERS 1. Determine mission and purposes. Why does the organization exist? Whom does it serve? 2. Select the chief executive. Arguably one of the most important roles: the board delegates management of the organization to the chief executive. 3. Support and evaluate the chief executive. Develop a strategic partnership, and hold the executive’s feet to the fire. 4. Ensure effective planning. Is the organization on track? Where will it be next year? In three years? Ten? 5. Monitor and strengthen programs and services. Bring your expertise to the table. What’s working well? How is the organization delivering on its mission? 6. Ensure adequate financial resources. Examine both sides of the coin: both earned and contributed revenue (if the organization raises money; not all do). 7. Protect assets and provide financial oversight. Make sure all the finances are in order. Be a prudent fiduciary. 8. Build a competent board. This is an ongoing process. The board should always be the RIGHT board for the organization it oversees, with a well-targeted range of perspectives and competencies. 9. Ensure legal and ethical integrity. Comply with the laws and go above and beyond in ethical standards. It will return to you, and to the organization, a thousandfold. 10. Enhance the organization’s public standing. Be a mission ambassador. Keep confidential matters confidential while eagerly advocating for the organization. Source: Excerpted from Richard T. Ingram, Ten Basic Responsibilities of Nonprofit Boards, Second Edition. BoardSource, 2009.

10

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

“GOVERNANCE” IS NOT THE SAME AS “MANAGEMENT.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

11

Without a doubt, the board is accountable for what the organization does. Board members must answer to the stakeholders the nonprofit serves, to funders, and to the public. To carry out their governance roles to the fullest extent, board members should do the following: Understand the respective roles of board and staff. Distinguishing what is strategic — the board’s role — and what is administrative — the staff’s role — helps keep each party focused on its responsibilities. Board members who become involved in operations tend to lose objectivity about personnel, programs, and organizational performance. And chief executives who attempt to control policy development through withholding of critical information or sheer force of personality get in the way of board decision making. Defining these boundaries sounds easier than it is. The responsibility for fund development, for example, may rest with a staff member — but board members are expected to play a significant role in that area. If an organization is experiencing internal turmoil or transition, the board may exert its leadership by implementing policy as well as developing it — but it should accept such a hands-on role only as an interim measure. Board oversight should not be confused with board interference. While boards are accountable for an organization’s decisions, they are not responsible for managing the programs or the people who carry out those decisions. To clarify the distinction, the board and chief executive should openly discuss their roles and agree upon where to draw the line in each case. The discussion should be ongoing: Roles are sure to change as the organization evolves, grows, ages, and reinvents itself. There’s a line between governance and management. Not a bright line, but a line nevertheless. And it’s not always easy for a board to see that line. When boards overstep the line between governance and management, they can easily become MICROMANAGERS. A micromanaging board steps out of its governance role and gets caught up in the operations of the organization. It forgets that the chief executive is responsible for daily management according to the guidelines set by the board. Micromanaging boards want to both set strategic direction AND actively oversee the implementation of the details. Boards that draw the line will do a better job at their top three roles: • setting organizational direction • ensuring necessary resources • providing oversight There is an EXCEPTION to this rule, for organizations that have no paid staff, known as all-volunteer organizations. Boards of these organizations will act as both volunteer managers and board members. In most nonprofits, as soon as the situation allows, the board hires the first staff member — often a chief executive — and delegates the daily affairs to him or her, with the necessary support and guidance. At this point the board can devote its time to governing, providing direction, and ensuring that the mission of the organization stays on course.

12

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

THE NEED

FOR

“LITERACIES”

ON THE

BOARD

To help boards make the best decisions possible, they need diversity of thought, perspective, demographics, background, experience, and most important of all, competence. Boards seek members who have the competence they know they need: legal expertise, perhaps; but almost always accounting or financial expertise.

F INANCIAL L ITERACY All board members are expected to have, or obtain once on the board, “financial literacy.” The accountant or financial expert on the board is expected to weigh in with special authority on matters of money, and by teaching and example, raise the level of financial literacy of the board. That individual is a fully functioning member of the board and involved in all aspects of board work, but might, for example, be an exceptionally fine audit committee chair, or investment committee member, thereby utilizing his or her special expertise to full advantage, while sharing it with the board.

I NTRODUCING M ARKETING L ITERACY Can anyone argue that the reputation of an organization is an asset on a par with its financial assets? As a marketing professional, you understand the importance of that reputation, and as a board member, would raise awareness of it as one of the most critical organizational resources to be understood, nurtured, and overseen by the board. That’s why a marketing professional makes an ideal nonprofit board member: not to perform marketing functions for the nonprofit, but to help the rest of the board understand how important marketing is, in all its forms — reputation and crisis management, marketing communications, organizational messaging, and branding. To raise the level of the board’s…you guessed it… marketing literacy, just as the financial expert raises its level of financial literacy. And why not? Nonprofits need to market their messages just as much as any other kind of organization. No message, no money.

Marketing literacy. You have it. Every board needs it.

Ninety-five percent of marketing professionals serving on boards said it was important to have an opportunity to share their marketing expertise with their organization.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

13

FOUR WAYS MARKETING PROFESSIONALS CAN HELP A NONPROFIT In the classic movie, “Fame” (not to be confused with the 2009 remake), Irene Cara asked the musical question: “Sometimes I wonder where I’ve been, who I am, do I fit in?” Professionals ask themselves this question for many reasons. Maybe they are looking for a way to “give back” to their community. Maybe they are looking to meet new people — for personal or professional reasons. Maybe they are looking for a way to hone their professional skills. Enter the nonprofit sector. There are four main ways for a professional to fit into the sector, and they are not mutually exclusive. All of the quotes are from professionals who have worked with nonprofits in various capacities. BOARD SERVICE The highest level of volunteer engagement; participating in the strategic planning, oversight and development of the organization “From a professional standpoint, my board service is giving me a look into a whole area of business I knew nothing about — nonprofits — how they are run, what the differences are between for-profit and nonprofit arenas. In for-profits, both parties make money; in nonprofits, you need to appeal for the help of so many more individuals — community, government, donors. So, learning how to make a case for the organization and mission and convincing people to support what you need has been quite an experience.” PRO BONO SERVICE Using your professional skills for free for a project or on an ongoing basis (contributing your expertise in accounting, marketing, or HR) “Human capital is a horrible thing to waste. Too often nonprofits struggle with limited or no access to technicians that can enable their cause.” SKILLED VOLUNTEERISM Performing a service for the nonprofit that not everyone could do (tutoring at an after-school program) “Volunteering is a phenomenal way to build your career portfolio. Based on my experience in conjunction with nonprofit volunteer work, I now have enough specific skills on my résumé to meet the requirements of a new job position.” HANDS-ON VOLUNTEERISM Short-term projects that don’t require specialized skills (beach cleanup, serving food at a local shelter) “Any kind of exposure to nonprofits we can provide to our employees is valuable; encouraging individual employees to involve their teams here with their own volunteer work with nonprofits is something we want to see more of.”

14

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

Taproot Foundation created this diagram for their work with corporations to show the relationship between the various methods of service, employees engaged, and the corresponding magnitude of impact. As an individual, this could be useful when considering the range of volunteer activities you could participate in, and their short and long term impact on the organization and issue.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

15

TEN WAYS MARKETING PROFESSIONALS CAN DRIVE IMPACT FOR A BOARD While all marketing professionals — from marketing generalists, market researchers, brand managers, advertising executives — absolutely can bring the following things to nonprofit boards, it is critical to the understanding of nonprofit governance that no board member is ever on the board to do just one thing — board service is not a “job.” Board service offers board members a wealth of opportunities, and board colleagues want and expect each other’s full commitment and intellect as the board discusses and engages in wildly diverse topics: the strategic value of current programs; whether or not to buy a building; the organization’s financial position and investments; whether to merge with another nonprofit with a similar mission; developing a fundraising policy for the board…ad infinitum. All board members should be fully engaged in those discussions. Of course, there are many different marketing specialties and not all marketing professionals engage in all marketing activities. One of our survey respondents told us, “Some people think, ‘I have a marketing person on my board; they can do PR.’ However, the field of marketing is wide and the skill sets are different. Make sure that your marketing person matches the gap in skills that you need on the board.” We have generalized here, with the understanding that not all marketing professionals can do all marketing, branding, or PR tasks. Please see Appendix 3 to learn more about marketing professionals. What all marketing professionals do have in common is bringing a specific and highly valuable lens to the boardroom. Here are 10 ways a board can engage and leverage the talents of a marketing professional. We’ve included comments from survey respondents and interviewees about their own experiences. Featured are quotes from marketing professionals we’ve interviewed about how to best utilize marketing skill and expertise for a nonprofit organization.

1

“MANAGE” THE ORGANIZATION’S REPUTATION. No one knows better than you the value of a positive reputation, nor how easy it is to lose it. Closely connected to the brand, a nonprofit’s reputation is, essentially: How is the organization delivering on that brand in the mind of its many stakeholders — funders, service recipients, other nonprofits, the general public? Is there a disconnect between the promise — the mission — and the delivery — the services provided, and HOW they are provided? In today’s up-to-the-micromillisecond media environment, one whiff of negativity can be repackaged, re-Tweeted, blogged and linked and linked again, before the organization is even aware of the trigger incident — a newspaper article; a lawsuit filed; a random comment to a reporter; an overheard conversation at a conference.

As you’ve learned, one of the 10 basic responsibilities of a board member is to be an ambassador for the organization, but the board might need an occasional nudge. All board members should be there because they believe passionately in the mission of the organization — you can remind them that what they do, how they act, and how they speak about the organization reflects on the organization and its reputation, either positively or negatively. They say that a reputation is what others think of us; our character is what we really are. You can use your influence to ensure that the two are one and the same for your board and organization.

As someone who has either studied this phenomenon or lived it yourself, you are less likely to be swayed by personal feelings and biases and will be able to encourage the organization to maintain its messaging, communications pieces, and responses to media, etc., in a way that is consistent with the organization’s core strategy and brand.

“Organizational reputation is very important, especially in the nonprofit space, where there is so much competition. Organizations are constantly bombarding people for time, attention, and resources. A strong reputation is essential to stand out.”

18

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

HELP ARTICULATE AND REFRESH THE ORGANIZATION’S MISSION, VISION, AND VALUES. Key elements in meaningful, successful, and clear strategic thinking are the mission, vision, and values of the organization. The mission guides the organization today, a vision statement reflects the impact of the organization in the years to come, and the values define the ethical guidelines and standards that direct all action. There are particular times when it is critical to articulate — or rearticulate — an organization’s mission, vision, and values — when the nonprofit is new; when the board decides to change the direction of the organization; and when the message needs to be refreshed because it has gotten indistinct for some reason, either through poor messaging or mission drift.

2

right track and making the right decisions. You will bring an external or audience lens to this discussion and make sure that mission, vision, and values statements appeal to, and resonate with, all those being served and who support the organization. And to resonate well, the statements have to be catchy. The ideas and final wordsmithing may come from the board or management — and certainly must have buy-in from both groups — but your skill with words and crafting pithy statements and taglines will come in extremely handy.

While the messaging surrounding these three important ideas may collectively comprise the brand to the outside world, internally they are very different. The organization cannot develop a brand without a laserfocused mission statement. The mission statement provides the basis for judging the success of the organization and its programs. It helps to verify if the organization is on the

“Particularly with newer nonprofits, I see a great need to really set up a solid mission and goals, and then have monthly reviews to ensure that they’re following these. It’s way too easy for nonprofits to go off on different tangents that don’t really move their organization forward. As well, having a succinct mission makes development of a marketing plan or branding much easier and more beneficial to the organization.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

19

3

SERVE ON THE FUNDRAISING OR DEVELOPMENT COMMITTEE AND/OR HELP DEVELOP FUNDRAISING MESSAGING. Success in fundraising begins with leadership, both from the board and the chief executive. The board’s fundraising responsibilities are directly linked to the organization’s mission, vision, and values. Identifying and clarifying the vision defines the agenda for the organization’s future and justifies a greater effort by the board. As you’ve just learned, your expertise will be critical in the vision-clarification exercise, creating a foundation for a strategic plan that will contain specific goals and objectives to be accomplished over a fixed period of time. In any situation where an organization finds fundraising necessary, board members should actively participate by contributing time and effort, as well as money, to emphasize their personal commitment. Strong, direct evidence of the board’s support — whether through personal contacts, public appearances or appeals, recognition activities, and/or monetary contributions — builds the case for others to join in supporting the organization’s mission and fulfilling its vision. When the board demonstrates its convictions, the public becomes more likely to join in the effort.

As a communications professional, you understand the importance of compelling and appropriate messaging and outreach for effective resource development. If the board has a development/fundraising committee, your skills will be helpful both to suggest strong, persuasive messages that communicate your organization’s value, as well as lending a hand in suggesting channels to communicate the messages and, like all board members, connecting with potential funders. If board members are equipped with talking points or scripts, they may feel more comfortable making the “ask”; your facility with words will be helpful here as well. Finally, while fundraising events planning and management is fundamentally a staff function, your PR experience and media contacts can be extremely useful and your willingness to share them with staff wellappreciated.

“I happen to be a ‘connector’ so I want to use my capabilities to help connect my nonprofit with companies, individuals, and other organizations that can move it forward.”

20

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

TAKE PART IN A BRANDING EXERCISE. Nonprofits are not immune from market forces just by virtue of their social-benefit focus. In a crowded marketplace, the organization must stand out to attract the attention of the media, potential funders, and other stakeholders. One marketing specialist told us, “Many times you can’t tell what a nonprofit does by their name. What a nonprofit does and what they stand for needs to be crystal clear.” Probably your first class in marketing or advertising communications was on determining a client’s Value Proposition, and understanding that all planning, messaging, and outreach would flow from that. The nonprofit sector is no different. Certainly the mission comes first, and all messages flow from that. But so often the challenge is that the organization wants to do everything, and without the laser focus provided by a branding exercise, the mission message can get lost.

4

As a marketing professional on the board, perhaps the most important thing you can do is to take the lead in teaching the board about the importance of your organization’s brand and engage other stakeholders in the process. Once there is buy-in on the board, you can help the organization select paid or pro bono professionals to work with on the branding exercise and provide internal expertise to help guide and steer the process, in conjunction with internal marketing staff and any professionals the board may choose. You can advocate for the branding exercise with the board and in particular, advocate for the organization to devote the resources for it. Focus groups cost money.

“Branding is not just for external reasons — it pulls the organization together — like a North Star.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

21

5

PARTICIPATE IN STRATEGIC PLANNING. No one makes plans better than a marketer. Without a detailed road map, marketing efforts can go seriously awry. And the exercise of creating the plan encompasses pretty much everything from the 50,000-foot view of the landscape — the market — through development of the strategies to focus and disseminate the brand in that market, down to the plethora of communication tactics on the ground. Organizational strategic planning is akin to a marketing plan writ large, and your skills and experience will make you the perfect partner on the board to help management with the process. One specialized area where your marketing skills will be particularly valuable is in the study of demographics, the data-driven analysis of markets. For example, you can assist management in identifying which data points are most important and how to capture that information, helping to define the organization’s markets. A systematic approach will help keep the board from making decisions based on tradition or assumption.

One dirty secret of strategic planning is that all organizations — whether forprofit or nonprofit — are notorious about engaging in the exercise of developing a strategic plan, and then promptly forgetting about it as the realities of organizational busy-ness set in. As a marketing professional, you know that monitoring and evaluation against the plan is the most critical step to success, and your gentle reminder to the board to this effect would be, like all wake-up calls, not exactly appreciated, but certainly effective.

“If you think of a nonprofit like any other type of organization, with the need to attract funding, clients, and volunteers…and if you have a budget of a certain level, you are at the scale at which marketing expertise would be very valuable. Through a strategy lens, you review whether or not you are engaged in the right activities, using your resources in the best possible way, how you are aligning your mission back to the way your resources are deployed — are they in the best places?”

22

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

PROVIDE ACCESS TO PRO BONO MARKETING RESOURCES. What if nonprofits had access to the same marketing resources as corporations? Imagine how helpful these might be in reputation building, brand management or publicity for the organization. As a marketing professional, you have the ability to help assess an organization’s marketing needs and suggest where pro bono could be of most value. Setting the scope for the engagement is a critical step. You can then leverage relationships within your marketing network or at your company to help your nonprofit address their most pressing marketing needs. Seek out an internal functional champion and find out who’s already doing pro bono work within your company. Determine the right fit — perhaps a team of professionals dedicated to developing a strong brand strategy or key messages for the organization, perhaps a coach or mentor for the marketing manager, or maybe a loaned employee dedicated to a large-scale marketing project. Finally, ensure there is proper support for the engagement.

6

A few words of caution. Pro bono isn’t free — it’s an investment of time, energy and talent. Your nonprofit must be ready to spend the time necessary to support their pro bono talent, and must understand that the project will be done in “pro bono time,” which is almost always slower than paid consulting. If managed effectively, pro bono has the potential to infuse valuable resources and longlasting, invaluable relationships. Remember, the role of a board member is to help get your organization the resources it needs, and pro bono is no exception. Tap your network, help scope the project, screen the talent, and support the pro bono engagement — but don’t micromanage it. Use Taproot’s tools listed in the Resources section of this handbook to help your organization get the pro bono resources it needs to thrive.

“There’s always a need for pro bono. I’ve never met a nonprofit organization that isn’t stretched beyond full capacity. Two pieces that are needed: 1) a compelling case made for pro bono service to be provided to the nonprofit organization; they need to be made aware of the necessity and the potential value of a pro bono consulting engagement, and 2) both parties need to be clear in contracting — what are the roles each side needs to play to have a successful outcome. Nonprofit readiness is key.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

23

7

LEAD BOARD COMMUNICATIONS TRAINING. As an expert on the board, you can be a marketing advocate and help your board colleagues — and sometimes staff — understand the value of marketing and external communications. The board will turn to you to bring an external or audience lens to board discussions. There is a fine line here, of course. As a communications specialist, you’re used to having words at your command and may want to jump in and develop marketing messages right off the bat. At the board level, however, that skill may be best leveraged around the board table to help your fellow board members develop an “elevator speech” — an interesting and compelling explanation, delivered in less than a minute, of the organization’s mission and purpose.

It is likely that you have a few horror stories from your day job about the unintended consequences of off-thecuff statements, media ambushes, and boneheaded public relations nightmares. Board members need to be reminded that whatever they utter about the organization carries great weight, whether intended or not. Appointing one spokesperson for the organization, usually the CEO or the chair, is a great idea.

“Very few of these organizations have marketing staff, and as a result, very few have a clear understanding of what marketing is (and is not). They also do not understand what's involved (time, resources, discipline, focus) in embarking on a marketing effort. It is important for board members with marketing expertise to understand and anticipate those factors. A large part of what they will have to do is explain, persuade, and advocate for a market-driven point of view. This can be very frustrating if it’s not expected, but ultimately very rewarding if the marketing board member understands that that will be a large part of their task.”

24

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

DEVELOP AND REVIEW AN ORGANIZATIONAL CRISIS MANAGEMENT PLAN. No one likes to contemplate crisis or disaster, but the events of the last decade have convinced the for-profit sector that crisis management plans are an essential element of risk management. It hasn’t caught on as much in the nonprofit sector, but by bringing you on the board, an organization has taken the first step. As someone who has dealt with the media in a variety of ways, you understand that you never want to be caught off guard.

As a marketing professional, you may have already helped lead your company through a crisis and are aware of how likely they are to occur. Who will speak for the board in a crisis? You will make sure there is “one voice” of the organization. You can build scenarios and work with the board to think through action plans for these scenarios. You can conduct a postmortem of past crises and help the board determine how it could respond more effectively in the future.

There are many kinds of crises, surprises from nature, and surprises from, well, humans. Plans to prepare for the former, such as a hurricane, flood, blizzard, or fire, are largely the purview of management — developing business continuity plans during loss of everything from power to personnel. A “human” disaster, on the other hand, can be equally devastating. Think scandal, embezzlement, personnel imbroglio, the public relations nightmares abound. Your board needs a plan.

The best way to deal with a crisis is before it happens, by preparing for the unexpected. Understanding that a problem may arise, you can help the board and chief executive to make crisis communications planning an integral part of the strategic communications process.

8

“A crisis plan should be simple and unencumbered so that it can be activated should a crisis occur. It must be signed off and approved by everyone, and must be reviewed on a regular basis. You can’t simply put it on a shelf and never review it again. I recommend a review on a quarterly basis, so that preparedness becomes inculcated into the organization’s culture.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

25

9

PROVIDE ACCESS TO MEDIA THROUGH PUBLIC RELATIONS. The marketer tends to have a lovehate relationship with the media. On the one hand, the media comprise the critical conduit of organizational communications — the arteries that conduct the lifeblood of advertising, PR, and all other kinds of messages. On the other hand, the media can be fickle, scandal-hungry, and antiintellectual — and particularly susceptible to the delights of the next shiny object tossed their way. And of course, extremely crowded. While board members arrive in the boardroom with a variety of training and skills, knowledge of, and access to, the media is uncommon and highly prized. Depending on your marketing specialty, you may have relationships with a local newspaper or radio or television station; you might be a media representative yourself, or know one or two of them and could hook your nonprofit up.

Why do nonprofits need access to the media? The simple fact is that much of the nonprofit sector is doing its work “under”: under the radar, underfunded, under-appreciated, and often misunderstood. While there has been a recent resurgence of interest in volunteerism, there continues to be a profound lack of awareness of the extent of the work done by nonprofits. At the individual board level, the marketing professional can provide the connection to the media to allow the organization to tell its story.

“A marketer needs to make sure nonprofits are representing their brand correctly — everything from making sure sound bites are the correct ones, to notifying the right people, etc. Sometimes folks get daunted by a “PR” program, but it’s just a normal part of a marketing plan; for example — rebranding? — notify the media.”

26

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

INCREASE ORGANIZATIONAL AWARENESS OF EMERGING NETWORKING TECHNOLOGY. While everyone who hasn’t lived on an island (and maybe they, too) knows that social networks like Facebook, Twitter, and LinkedIn, as well as blogs, have revolutionized communication, not everyone knows how to leverage them for success. Although use of social media is not limited to the young, board members of all ages need awareness and training in these channels.

10

In fact, the nice thing about having you on the board is you already have to stay current in this field to remain relevant in your professional career, so you can continually share the latest developments with your colleagues and help the board and organization think through how emerging technology might be most useful in meeting their goals.

As someone who understands social media, you know that the phenomenon has not yet come close to its potential. But you also know it is not magic and does not — and should not — completely replace traditional marketing channels, at least for the foreseeable future. However, you can help your board understand the value of social media as part of your organization’s overall communications strategy. Through your professional channels, you might have access to data on how effective new technology has been for other similar organizations or for similar purposes, which you can share with the board.

“Nonprofits need more integrated marketing strategies that utilize social media, new media, product placement, and creative media partnerships. I would advise that they move beyond traditional methods and explore innovative ways of marketing and communicating their brand to a broader audience.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

27

TOP THREE REASONS TO SERVE ON A NONPROFIT BOARD • NETWORKING “Workplaces are the social network to learn about opportunities, not church or community groups any longer.” • PROFESSIONAL DEVELOPMENT “It’s incredibly valuable for alternate skills development. It brings a new challenge, instead of a myopic view of your own company’s brand.” • MISSION FULFILLMENT “I was driven by my own personal desire to be involved. I realized that there was a need, and I got recommendations from others where I could be of use.”

28

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

R EAL P ROFESSIONALS W HO S ERVE ON R EAL N ONPROFIT B OARDS Professionals find different reasons to serve on boards. The top reasons marketing professionals chose to serve on nonprofit boards are because they wanted to use their skills to help nonprofits; they had a positive experience with pro bono or volunteer service at the organization and wanted to do more; and they were interested in professional networking and professional skill development. Here are two of their stories...

PRO BONO SERVICE TO BOARD SERVICE Tamara Brown is the marketing director at Technicolor and has over 15 years of experience as a marketing executive and creative manager in PR for Disney, Nickelodeon, and ESPN, among others. Through Taproot, she participated in a pro bono “Key Messages and Brand Strategy” project for Los Angeles nonprofit LA Commons. Its mission is to engage communities in artistic and cultural expression that tells their unique stories and serves as a basis for dialogue, interaction, and a better understanding of Los Angeles. Once the pro bono engagement had ended, LA Commons’ Executive Director Karen Mack approached Tammy about serving on the board. Karen and the rest of the board were looking for someone to keep them on a clear marketing/messaging path. It was an easy decision for Tammy: “I just knew exactly what Karen was looking for. They wanted somebody who lived and breathed their new marketing strategy, really giving the rest of the board a repository of knowledge.” Tammy has found her board service to be both personally and professionally rewarding. From a personal standpoint, she has valued working in the arts and culture world, an area that often suffers through budget cuts in hard economic times. She said, “Through LA Commons, the ethnic diversity of LA and the art of each culture is showcased. The cause drew me in.” It’s a working board. Unlike at larger nonprofits, the organization’s small staff of three depends on the board to provide both oversight and professional services. Tammy is right in the thick of it; as the only marketing professional on the board, the rest of the organization looks to her for her expertise, and she knows they appreciate her: “Marketing is the one thing people think they can do, but they can’t. Most nonprofits would kill for marketing experts to be on their board to guide the perception of the organization and build PR strategy; it’s just a matter of making the marketing professionals aware of the need.” Wondering why more of her professional colleagues don’t take advantage of the opportunity to serve on nonprofit boards, she figured it was a lack of awareness: “They don’t know what they don’t know, but there’s a huge need on the nonprofit side. We just have to find a way to make marketing professionals aware of the need.”

30

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

TIPS FROM A MARKETING PRO Toni Midderhoff has worked in marketing for over 14 years, choosing the field because she likes the breadth of topics it touches: sales, marketing, profit and loss, financial analysis, and development, among many others. She has served on four nonprofit boards, including two in education, one professional woman’s organization, and the Art of Makin’ Music Foundation, a nonprofit dedicated to enhancing the positive impact of music on young people by giving them opportunities to create, perform, and produce, under the guidance of professionals. From the vantage point of having served on four boards, Toni’s in a great position to understand what a marketer can do, once on a board. She said, “First, you make sure there’s strategic alignment. Then, the marketing professional can help the organization look at themselves and define their brand, then take that information and help them figure out how to leverage it.” As an inveterate marketing professional, she offered some tips on how the board could improve its role in reputation assessment and management: “Google yourself. Find out what people are saying about your organization and understand why they’re saying it. Then, interact with your constituents, and not just when you’re doing fundraising. At least twice a year, the organization should engage them — have touch points — call them, ask them how you’re doing as an organization.” Like most nonprofit board members, Toni’s primary motivation for serving is to give something back to her community, but she is clear that her marketing expertise can and should be leveraged by the organization. In her opinion, it is the joint responsibility of the nonprofit and the board member to articulate and carry out expectations for the board member’s role: “They ask you at your interview what your expectations are, and you talk about what you can bring to the table. Jointly, the individual and the board need to make sure you have the opportunities to enact and use your skills.” Toni believes there is great interest among her marketing peers to help nonprofits, and continues to seek ways to use her own skills in the sector; her board service has been a fascinating and often rewarding journey. Case in point: After a long, tough stretch with a legal issue on one of her boards, she said, “As a marketer, I was able to get the organization to approach the issue from a different perspective, really getting to the root of the problem.”

Thanks for the tips, Toni.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

31

Okay! I’m convinced! What do I do now?

STEP ONE Decide Where You Want to Get Involved Ask yourself: 1. What causes do I care about most? Board service is serious work; you’ll do your best where you feel the greatest passion. No amount of networking and professional development will make up for serving at an organization you don’t care deeply about. 2. What type of organization and board will best match my personal interests and working style? That first question was actually a soft ball; you can probably identify the issues that interest you without difficulty. Think also about the style of board where you will be most effective, and ask the nonprofit questions about its style of operation. New organizations or those undergoing great change often need more hands-on help from board members; you are most likely to be doing marketing and communications projects at this type of organization. As organizations mature, the work of the board becomes more strategic. Once you have decided where your interests lie, what size and type of organization you might want to join, and what you are expecting from board participation, you will be ready to find a nonprofit that is a good match for you. The next question is: what board, and how do I find it?

34

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

STEP TWO Find an Organization That Feels Right 1. Your business may have a formal or informal program that helps locate nonprofits looking for board members. 2. If your business has a corporate foundation, it is likely to have relationships with a number of nonprofits. The foundation may be interested in having corporate employees sit on the boards of its grantees; however, some foundations do not want to risk the appearance that they are trying to scrutinize their grantees at the close range of board participation. Even if you represent the interests of your corporate foundation on a nonprofit board, your obligation as a board member is to act in the best interests of the nonprofit. 3. There may be a matching service in your community. Try the local United Way or your local community foundation. 4. Look online. BoardSource and Bridgespan have a board matching service, www.bridgespan.org, as does All for Good, the volunteer-matching arm of the Corporation for National and Community Service, www.allforgood.org. Check online search engines to find other matching services. 5. Ask people you know who are involved in the nonprofit sector. Referrals from trusted friends or colleagues can be extremely helpful, but remember to do your homework to make sure that you are satisfied with your choice. 6. Still not sure? Try pro bono service at a nonprofit that interests you, as it often is a great way to “date” before “marriage.” Visit www.taprootfoundation.org for information on how pro bono works.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

35

STEP THREE Do Your Due Diligence You’ve identified an organization, but finding the right board is kind of like finding the right employer. To determine whether you have the right things to offer each other, find out everything you can about the organization. If you have already been identified as a candidate for a board position, you can go directly to the board or chief executive for information, but if you are in the “just looking” stage, you may need to rely on search engines and social networking sites for information. Visit the organization’s Web site and sign up for newsletter or blog updates, if available. Now, check out www.guidestar.org. If the organization is large enough to file a Form 990 with the IRS, Guidestar will have a record of its most recently filed return. The information you find may not be from the most current year, but it will give you an idea of the organization’s financial situation.

36

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

PART TWO: FOR BOARDS AND CHIEF EXECUTIVES How Nonprofit Boards Can Benefit from Including Marketing Professionals

MARKETING LITERACY As part of their mutual commitment to building the capacity of the nonprofit sector to achieve its overall mission of creating a better society, BoardSource and the Taproot Foundation teamed up to investigate how the skills and talents of professionals in the private sector might be leveraged for the nonprofit sector. In particular, we wondered why more organizations don’t seek out marketing professionals for their boards. We interviewed and surveyed marketing professionals — those who serve on nonprofit boards and those who do not — to learn about their experiences with board service and their attitudes towards it. Those marketing professionals who serve on nonprofit boards told us that they believed that marketing skills are critically needed on boards. They pointed to the proliferation of nonprofits in recent years: It has created a cacophony of messages and the organization that breaks out of the clutter by building awareness, brand, and positive reputation — the purview of the marketing professional — will be in the best position to “compete” for the attention of funders and other critical stakeholders. We found out that while many of these professionals are interested in board service, they didn’t know how to go about finding a board to serve on. They believe their marketing skills would make them great board members. One interviewee said, “There is a HUGE need from the nonprofit side, and a huge desire from the for-profit marketing side. Marketing is the one thing people think they can do, but they can’t…. Most nonprofits would kill for marketing experts to be on their board to guide the perception of the organization; build PR strategy...you really have to seek it out.”

Y OU N EED T HEM To help your board make the best decisions possible, you need diversity of thought, perspective, demographics, background, experience, and most important of all, competence. Like all boards, you seek members who have the competence you know you need: legal expertise, perhaps; but almost always financial expertise.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

39

F INANCIAL L ITERACY — Y OU A LREADY K NOW A BOUT T HIS O NE All board members are expected to have, or obtain once on the board, “financial literacy.” The accountant or financial expert on the board is expected to weigh in with especial authority on matters of money, and by teaching and example, raise the level of financial literacy of the board. That individual is a fully functioning member of the board and involved in all aspects of board work, but might, for example, be an exceptionally fine audit committee chair, or investment committee member, thereby utilizing his or her special expertise to full advantage, while sharing it with the board.

I NTRODUCING M ARKETING L ITERACY Can anyone argue that the reputation of an organization is an asset on a par with its financial assets? The marketing professional understands the importance of that reputation as one of the most critical organizational resources to be understood, nurtured, and overseen by the board. That’s why the marketing professional makes an ideal nonprofit board member. Not to perform marketing functions for the nonprofit, but to help the rest of the board understand how important marketing is, in all its forms — reputation and crisis management; marketing communications; organizational messaging and branding. To raise the level of the board’s…you guessed it…marketing literacy, just as the financial expert raises its level of financial literacy. And why not? Nonprofits need to market their messages just as much as any other kind of organization. No message, no money, no mission.

Marketing literacy. Every board needs it.

Ninety-five percent of marketing professionals serving on boards said it was important to have an opportunity to share their marketing expertise with their organization.

40

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

TEN WAYS MARKETING PROFESSIONALS CAN DRIVE IMPACT FOR A BOARD There are many different marketing specialties and not all marketing professionals engage in all marketing activities. One of our survey respondents told us, “Some people think, ‘I have a marketing person on my board; they can do PR.’ However, the field of marketing is wide and the skill sets are different. Make sure that your marketing person matches the gap in skills that you need on the board.” We have generalized here, with the understanding that not all marketing professionals can do all marketing, PR, and communications tasks. What all marketing professionals do have in common is bringing a specific and highly valuable lens to the boardroom. Here are 10 ways your board can engage and leverage the talents of a marketing professional. We’ve included comments from survey respondents and interviewees about their own experiences.

1

“MANAGE” THE ORGANIZATION’S REPUTATION. No one knows better than the marketing professional the value of a positive reputation, nor how easy it is to lose it. Closely connected to the brand, a nonprofit’s reputation is, essentially: How is the organization delivering on that brand in the mind of its many stakeholders — funders, service recipients, other nonprofits, the general public? Is there a disconnect between the promise—the mission — and the delivery — the services provided, and HOW they are provided? In today’s up-to-the-micromillisecond media environment, one whiff of negativity can be repackaged, re-tweeted, blogged, and linked and linked again, before the organization is even aware of the trigger incident — a newspaper article; a lawsuit filed; a random comment to a reporter; an overheard conversation at a conference.

As you know, one of the 10 basic responsibilities of a board member is to be an ambassador for the organization, but the board might need an occasional nudge. All board members should be there because they believe passionately in the mission of the organization — this professional can serve as a good reminder that what you do, how you act, and how you speak about the organization reflects on the organization and its reputation, either positively or negatively. They say that a reputation is what others think of us; our character is what we really are. You need help to ensure that the two are one and the same for your board and organization.

As professionals who have either studied this phenomenon or lived it themselves, marketing experts are less likely to be swayed by personal feelings and biases and will be able to encourage the organization to maintain its messaging, communications pieces, and responses to media, etc., in a way that is consistent with the organization’s core strategy and brand.

“Organizational reputation is very important, especially in the nonprofit space, where there is so much competition. Organizations are constantly bombarding people for time, attention, and resources. A strong reputation is essential to stand out.”

42

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

HELP ARTICULATE AND REFRESH THE ORGANIZATION’S MISSION, VISION, AND VALUES. Key elements in meaningful, successful, and clear strategic thinking are the mission, vision, and values of the organization. The mission guides the organization today, a vision statement reflects the impact of the organization in the years to come, and the values define the ethical guidelines and standards that direct all action. There are particular times when it is critical to articulate — or rearticulate — an organization’s mission, vision, and values — when the nonprofit is new; when the board decides to change the direction of the organization; and when the message needs to be refreshed because it has gotten indistinct for some reason, either through poor messaging or mission drift.

2

decisions. The marketing professional will bring an external or audience lens to this discussion and make sure that mission, vision, and values statements appeal to, and resonate with, all those being served and who support the organization. And to resonate well, the statements have to be catchy. The ideas and final wordsmithing may come from the board or management — and certainly must have buy-in from both groups — and adding a board member who has great skills with words and crafting pithy statements and taglines will come in extremely handy.

While the messaging surrounding these three important ideas may collectively comprise the brand to the outside world, internally they are very different. The organization cannot develop a brand without a laserfocused mission statement. The mission statement provides the basis for judging the success of the organization and its programs. It helps to verify if the organization is on the right track and making the right

“Particularly with newer nonprofits, I see a great need to really set up a solid mission and goals, and then have monthly reviews to ensure that they’re following these. It's way too easy for nonprofits to go off on different tangents that don't really move their organization forward. As well, having a succinct mission makes development of a marketing plan or branding much easier and more beneficial to the organization.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

43

3

SERVE ON THE FUNDRAISING OR DEVELOPMENT COMMITTEE AND/OR HELP DEVELOP FUNDRAISING MESSAGING. Success in fundraising begins with leadership, both from the board and the chief executive. The board’s fundraising responsibilities are directly linked to the organization’s mission, vision, and values. Identifying and clarifying the vision defines the agenda for the organization’s future and justifies a greater effort by the board. A visionclarification exercise, mentioned above, will create a foundation for a strategic plan that will contain specific goals and objectives to be accomplished over a fixed period of time. In any situation where an organization finds fundraising necessary, board members should actively participate by contributing time and effort, as well as money, to emphasize their personal commitment. Strong, direct evidence of the board’s support — whether through personal contacts, public appearances or appeals, recognition activities, and/or monetary contributions — builds the case for others to join in supporting the organization’s mission and fulfilling its vision. When the board demonstrates its convictions, the public becomes more likely to join in the effort.

A communications professional will help your board members understand the importance of compelling and appropriate messaging and outreach for effective resource development. If your board has a development/ fundraising committee, a marketing professional will be helpful both to suggest strong, persuasive messages that communicate your organization’s value, as well as lending a hand in suggesting channels to communicate the messages and, like all board members, connecting with potential funders. If board members are equipped with talking points or scripts, they may feel more comfortable making the “ask”; the professional’s facility with words will be helpful here as well. Finally, while fundraising events planning and management is fundamentally a staff function, PR experience and media contacts can be extremely useful.

“I happen to be a ‘connector’ so I want to use my capabilities to help connect my nonprofit with companies, individuals, and other organizations that can move it forward.”

44

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

TAKE PART IN A BRANDING EXERCISE. Nonprofits are not immune from market forces just by virtue of their social-benefit focus. In a crowded marketplace, the organization must stand out to attract the attention of the media, potential funders, and other stakeholders. One marketing specialist told us, “Many times you can’t tell what a nonprofit does by their name. What a nonprofit does and what they stand for needs to be crystal clear.” Marketing professionals learn early on that the fundamental exercise in marketing or advertising communications is determining a client’s Value Proposition, and understanding that all planning, messaging, and outreach flow from that. The nonprofit sector is no different. Certainly the mission comes first, and all messages flow from that. But so often the challenge is that the organization wants to do everything, and without the laser focus provided by a branding exercise, the mission message can get lost.

4

other stakeholders in the process. Once there is buy-in on the board, the organization will be well-advised to select paid or pro bono professionals to work with on the branding exercise and provide internal expertise to help guide and steer the process, in conjunction with internal marketing staff and any professionals the board may choose. The professional will advocate for the branding exercise with the board and in particular, advocate for the organization to devote the resources for it. Focus groups cost money.

A marketing professional on the board can take the lead in teaching the board about the importance of your organization’s brand and engage

“I got a list of 32 things that the organization did, but they needed to identify three things in order to get their message out. Nonprofits can be very unfocused; that’s a branding issue.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

45

5

PARTICIPATE IN STRATEGIC PLANNING. No one makes plans more than a marketer. Without a detailed road map, marketing efforts can go seriously awry. And the exercise of creating the plan encompasses pretty much everything from the 50,000-foot view of the landscape — the market — through development of the strategies to focus and disseminate the brand in that market, down to the plethora of communication tactics on the ground. Organizational strategic planning is akin to a marketing plan writ large, and marketing skills and experience will focus your board on ways to help management with the process. One specialized area where marketing skills are particularly valuable is in the study of demographics, the data-driven analysis of markets. For example, the professional can assist management in identifying which data points are most important and how to capture that information, helping to define the organization’s markets. A systematic approach will help keep the board from making decisions based on tradition or assumption.

One dirty secret of strategic planning is that all organizations — whether forprofit or nonprofit — are notorious about engaging in the exercise of developing a strategic plan, and then promptly forgetting about it as the realities of organizational busy-ness set in. A marketing professional knows that that monitoring and evaluation against the plan is the most critical step to success, and his or her gentle reminder to the board to this effect will be, like all wake-up calls, not exactly appreciated, but certainly effective.

“If you think of a nonprofit like any other type of organization, with the need to attract funding, clients, and volunteers…and if you have a budget of a certain level, you are at the scale at which marketing expertise would be very valuable. Through a strategy lens, you review whether or not you are engaged in the right activities, using your resources in the best possible way, how you are aligning your mission back to the way your resources are deployed — are they in the best places?”

46

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

PROVIDE ACCESS TO PRO BONO MARKETING RESOURCES. What if nonprofits had access to the same marketing resources as corporations? Imagine how helpful these might be in reputation building, brand management, or publicity for the organization. A marketing professional can help assess your organization’s marketing needs and suggest where pro bono could be of most value. Setting the scope for the engagement is a critical step. The professional will then leverage relationships within his or her marketing network or company to help your nonprofit address its most pressing marketing needs. One strategy is to seek out an internal functional champion and find out who’s already doing pro bono work within your company. Determine the right fit — perhaps a team of professionals dedicated to developing a strong brand strategy or key messages for the organization, perhaps a coach or mentor for the marketing manager, or maybe a loaned employee dedicated to a largescale marketing project. Finally, ensure there is proper support for the engagement.

6

must be ready to spend the time necessary to support their pro bono talent, and must understand that the project will be done in “pro bono time,” which is almost always slower than paid consulting. If managed effectively, pro bono has the potential to infuse valuable resources and longlasting, invaluable relationships. Remember, the role of a board member is to help get your organization the resources it needs, and pro bono is no exception. The marketing professional will tap his or her network, help scope the project, screen the talent, and support the pro bono engagement, but like any board function, should not micromanage it. Use Taproot’s tools listed in the Resources section of this handbook to help your organization get the pro bono resources it needs to thrive.

A few words of caution. Pro bono isn’t free — it’s an investment of time, energy and talent. Your nonprofit

“There’s always a need for pro bono. I’ve never met a nonprofit organization that isn’t stretched beyond full capacity. Two pieces that are needed: (1) a compelling case made for pro bono service to be provided to the nonprofit organization; they need to be made aware of the necessity and the potential value of a pro bono consulting engagement, and (2) both parties need to be clear in contracting — what are the roles each side needs to play to have a successful outcome. Nonprofit readiness is key.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

47

7

LEAD BOARD COMMUNICATIONS TRAINING. A marketing advocate will help your board colleagues — and sometimes staff — understand the value of marketing and external communications. You will feel comfortable turning to the professional to bring an external or audience lens to board discussions. There is a fine line here, of course. A communications specialist is used to having words at their command and may want to jump in and develop marketing messages right off the bat. At the board level, however, that skill may be best leveraged around the board table to help fellow board members develop an “elevator speech” — an interesting and compelling explanation, delivered in less than a minute, of the organization’s mission and purpose.

It is likely that the marketing professional will have a few horror stories from the day job about the unintended consequences of off-thecuff statements, media ambushes, and boneheaded public relations nightmares. Board members need to be reminded that whatever they utter about the organization carries great weight, whether intended or not. Appointing one spokesperson for the organization, usually the CEO or the chair, is a great idea.

“Very few of these organizations have marketing staff, and as a result, very few have a clear understanding of what marketing is (and is not). They also do not understand what’s involved (time, resources, discipline, focus) in embarking on a marketing effort. It is important for board members with marketing expertise to understand and anticipate those factors. A large part of what they will have to do is explain, persuade, and advocate for a market-driven point of view. This can be very frustrating if it's not expected, but ultimately very rewarding if the marketing board member understands that that will be a large part of their task.”

48

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

DEVELOP AND REVIEW AN ORGANIZATIONAL CRISIS MANAGEMENT PLAN. No one likes to contemplate crisis or disaster, but the events of the last decade have convinced the for-profit sector that crisis management plans are an essential element of risk management. It hasn’t caught on as much in the nonprofit sector, but by bringing a marketing professional on the board, your organization will be taking the first step. As someone who has dealt with the media in a variety of ways, the professional will help the board understand that you never want to be caught off guard. There are many kinds of crises, surprises from nature and surprises from, well, humans. Plans to prepare for the former, such as a hurricane, flood, blizzard, or fire, are largely the purview of management — developing business continuity plans during loss of everything from power to personnel. A “human” disaster, on the other hand, can be equally devastating. Think scandal, embezzlement, personnel imbroglio, the public relations nightmares abound. Your board needs a plan.

8

The marketing professional may have helped lead his or her company through a crisis and will be aware of how likely they are to occur. Who will speak for the board in a crisis? The professional will ensure there is “one voice” of the organization. Together, you can build scenarios, think through action plans for these scenarios, and can even conduct a postmortem of past crises and help determine how the board could respond more effectively in the future. The best way to deal with a crisis is before it happens, by preparing for the unexpected. Understanding that a problem may arise, the marketing professional will help ensure that crisis communications planning is an integral part of the strategic communications process.

“A crisis plan should be simple and unencumbered so that it can be activated should a crisis occur. It must be signed off and approved by everyone, and must be reviewed on a regular basis. You can’t simply put it on a shelf and never review it again. I recommend a review on a quarterly basis, so that preparedness becomes inculcated into the organization’s culture.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

49

9

PROVIDE ACCESS TO MEDIA THROUGH PUBLIC RELATIONS. The marketer tends to have a lovehate relationship with the media. On the one hand, the media comprise the critical conduit of organizational communications — the arteries that conduct the lifeblood of advertising, PR, and all other kinds of messages. On the other hand, the media can be fickle, scandal-hungry, and antiintellectual — and particularly susceptible to the delights of the next shiny object tossed their way. And of course, extremely crowded.

misunderstood. While there has been a recent resurgence of interest in volunteerism, there continues to be a profound lack of awareness of the extent of the work done by nonprofits. At the individual board level, the marketing or PR professional can provide the connection to the media to allow the organization to tell its story.

While board members arrive in the boardroom with a variety of training and skills, knowledge of, and access to, the media is uncommon and highly prized. Depending on his or her marketing specialty, the professional may have relationships with a local newspaper or radio or television station, or may know media representatives and could provide a conduit to your board. Why do nonprofits need access to the media? The simple fact is that much of the nonprofit sector is doing its work “under”: under the radar, underfunded, under-appreciated, and often

“A marketer needs to make sure nonprofits are representing their brand correctly — everything from making sure sound bites are the correct ones, to notifying the right people, etc. Sometimes folks get daunted by a “PR” program, but it’s just a normal part of a marketing plan; for example — rebranding? — notify the media.”

50

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

INCREASE ORGANIZATIONAL AWARENESS OF EMERGING NETWORKING TECHNOLOGY. While everyone who hasn’t lived on an island (and probably they, too) knows that social networks like Facebook, Twitter, and LinkedIn, as well as blogs, have revolutionized communication, not everyone knows how to leverage them for success. Although use of social media is not limited to the young, board members of all ages need awareness and training in these channels.

10

One of the good things about having a marketing professional on the board is he or she will need to stay current in this field to remain relevant in his or her professional career, and will continually share the latest developments with the board and help you and the organization think through how emerging technology might be most useful in meeting your goals.

As someone who understands social media, the marketing professional understands that the phenomenon has not yet come close to its potential. But everyone needs to also understand: It is not magic and does not — and should not — completely replace traditional marketing channels, at least for the foreseeable future. However, the professional can help your board understand the value of social media as part of your organization’s overall communications strategy. Through professional channels, he or she might have access to data on how effective new technology has been for other similar organizations or for similar purposes, which can be shared with the board.

“Nonprofits need more integrated marketing strategies that utilize social media, new media, product placement, and creative media partnerships. I would advise that they move beyond traditional methods and explore innovative ways of marketing and communicating their brand to a broader audience.”

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

51

Okay! I’m convinced! How can I find a marketing professional for my board?

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

53

STEP ONE Determine the Type of Marketing Firepower You Need. As we’ve written, there are many different marketing specialties and not all marketing professionals engage in all marketing activities. What kind of help do you need? See Appendix 3 for a detailed list of marketing specialties and decide what competencies will best suit your board’s needs.

STEP TWO Find the Marketing Professional for Your Board. Marketing professionals, like all potential board members, are to be found in a variety of places. One of your board members or staff may know someone, or you can begin a more targeted search. Here are some suggestions:

Corporations Many corporations have volunteer service and matching programs. Some offer governance or other preparatory training for their employees, then seek to place them on nonprofit boards. Call corporations in your area to find out if they have such a program and discuss your interest in placing a marketing professional on your board. (If they don’t have a board training or matching program, tell them nonprofit board service is a great way to connect their employees with their communities.)

Board Matching Web Sites Some volunteer-match Web sites include board positions as a form of volunteerism. For free, or a very nominal fee, your organization can post a position and specify your interest in a marketing professional for your board. Examples are the Corporation for National and Community Service, www.serve.gov and www.allforgood.org; and VolunteerMatch www.volunteermatch.org. Some focus on the nonprofit sector in general, and include both board listings and paid, nonprofit positions, like Idealist, www.idealist.org, and Bridgespan, www.bridgespan.org. Bridgespan is also a search firm, which focuses on the nonprofit sector, as is The 360 Group, www.the360group.us. These fee-based options may be appropriate for board positions of large, or national, nonprofits.

54

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

Professional Associations Like most professionals, marketers have their own associations for networking and professional development. While these organizations are not likely to match their members with boards per se, they have conferences and educational programs that might present opportunities for you to connect with potential board members. Consider calling the membership department to determine whether they provide volunteer information for their members. Examples of associations of marketers include American Marketing Association (AMA) www.marketingpower.com Business Marketing Association (BMA) www.marketing.org Marketing Research Association (MRA) www.mra-net.org Promotion Marketing Association (PMA) www.pmalink.org Professionals of all kinds (not necessarily marketers, however) often join groups organized around their particular demographic group, for example: National Association of Professional and Executive Women (NAPEW) www.napew.com National Black MBA Association (NBMBAA) www.nbmbaa.org National Hispanic Professional Organization (NHPO) www.nhpo.us

STEP THREE Once you have identified one or more candidates,, begin the recruitment process. Discuss the candidates with the board, and assign a board member to contact the individual to gauge interest. If he or she is interested, invite the professional to an informal meeting, over a meal, for example to determine whether it’s a good fit. For more information on recruitment and onboarding, see the list of resources at the end of this book, especially The Board Building Cycle; Navigating the Organizational Lifecycle: A Capacity-Building Guide for Nonprofit Leaders.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

55

APPENDIX 1 I NTERVIEW S UBJECTS

FOR

T HIS P ROJECT

BoardSource and the Taproot Foundation are grateful to the following individuals for consenting to be interviewed for this project. We deeply appreciate their time, their insights, and their commitment to helping us make this important connection. Tamara Brown

Senior Director, Marketing, Technicolor

Bob Byrne

SVP Marketing, Wells Fargo

Sarah Gravitt-Baese

VP, Brand Direct Marketing, Capital One Financial

Karen Mack

Founder and Executive Director, LA Commons

Katherine Maynard

Senior Advisor, Spectrum Communications

Marc Mentry

Managing VP, Advertising and Media, Capital One Financial

Brittany Metz

Marketing Manager, Commerce Corporation

Toni Midderhoff

Independent Consultant, Inhanss, LLC

Paul Omps

Presenter Writer, Red Peg Marketing

Urmila Raghavan

SVP/Strategic Planning Manager, Enterprise Marketing at Wells Fargo

Wendi Sturgis

Vice President, Partner Management Group at Right Media/Yahoo!

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

57

APPENDIX 2 SURVEY METHODOLOGY AND RESULTS THE MARKETING PROFESSIONAL AND BOARD SERVICE To inform this report, BoardSource and the Taproot Foundation surveyed 159 marketing professionals to determine their attitudes and experience regarding board service. Fifty-five of the respondents serve or had served on a nonprofit board; 104 had not.

M ARKETING P ROFESSIONALS W HO H AVE S ERVED

ON

N ONPROFIT B OARDS

Most of the marketing professionals (50%) have served on a board for 1–3 years, with another 35 percent having served for over four years. Sixty percent have only served on one board, with 34 percent more serving on 2–3 boards. Forty-one percent of the organizations on whose boards they serve did not have dedicated marketing staff. An additional 28 percent reported that few of the organizations they served had dedicated marketing staff. Most respondents became board members as a result of positive experiences as volunteers. Fifteen percent had performed pro bono service and 13 percent had been donors. Interestingly enough, 33 percent had no prior connection to the organization. Most respondents (60%) believed they were recruited for their marketing background.

W HY J OIN

A

B OARD

We asked these professionals what their primary reasons were for choosing to serve on nonprofit boards, beyond supporting the mission of the organization. Because of the nature of nonprofit board service — unpaid and often with expectations of providing financial support — we assumed they supported the mission. They could choose up to three reasons. The most common reason selected, at 63 percent, was to contribute their other skills to help the organization. Thirty-nine percent had a positive experience with pro bono or volunteer service at the organization, and wanted to do more. There was a tie for third most popular response — 31 percent were looking for professional networking opportunities, and 31 percent wanted opportunities for professional skill development.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

59

W HAT H APPENED W HEN T HEY J OINED ? A full 95 percent of these professionals reported that it was important to share their marketing expertise with the organization. When asked how their marketing skills and expertise are leveraged by the nonprofit boards they’ve served on, a full 76 percent reported being tapped for opinions about the organization’s marketing and branding efforts. Forty-three percent were asked to lead a board committee focusing on marketing and/or brand management. More than a quarter (28%) worked directly with a staff counterpart to provide guidance and feedback on marketing and about the same number (26%) were asked to provide pro bono marketing services to the organization as part of their financial support of the organization. Fifteen percent reported that they did not used their marketing expertise, beyond the general engagement similar to other board members without such expertise.

T HE “R OLE ”

OF THE

M ARKETING P ROFESSIONAL

ON THE

B OARD

We asked these marketing professionals about what they thought the “role” of a marketing professional should be relative to board service. We asked this question in an advisory capacity, to determine how boards might better engage marketing professionals by leveraging their unique skills, with the understanding that all board members are equals and there is no “marketing role” per se. The respondents selected as most important (1) playing a role in the strategic planning process, (2) pro bono marketing or PR resource generation, and (3) setting brand strategy and clarifying messaging. Articulating and refreshing the mission, vision and values ranked fourth, and there was a tie for 5th place among the following skill areas: leading board communications training and proactively managing the organization’s reputation.

H OW H AS I T B EEN ? Finally, we asked the marketing professionals about their satisfaction with their board service; 84 percent of the marketing professionals surveyed were pleased with their board service experiences. Thirty-three percent of that “satisfied” group, however, said they would have like to have had their marketing skills and talents better leveraged by the organization.

M ARKETING P ROFESSIONALS W HO H AVE N OT S ERVED B OARDS

ON

N ONPROFIT

Ninety-two percent of this group expressed at least some interest in serving on a nonprofit board; only one respondent reported zero interest. The others reported they didn’t know enough about nonprofit board service to answer one way or the other. When asked what kept them from joining (and they could select all that apply), the number one response was they didn’t know where to start or whom to approach, at 53 percent. Next, at 33 percent, was the time commitment, and third, at 29 percent, was a reluctance to take on the fundraising responsibilities sometimes associated with a board position, and fourth were the 17 percent who didn’t know what role they could play on a board. Only 22 percent of these marketing professionals had ever been invited to serve on a nonprofit board. However, fully 91 percent of them had provided professional services or expertise, pro bono, to a nonprofit organization.

60

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

W HERE

TO GO TO

F IND

A

B OARD

When asked to imagine where they would turn if they were in interested in board service, 44 percent responded that they would turn to their professional association, 43 percent would talk to friends, and 39 percent would talk to nonprofit staff. (Respondents could choose more than one answer.) Only four percent responded that they would use their company’s matching program. We believe this low number reflects more on the fact that few companies have such programs than a lack of interest in them. We did not ask the hypothetical question, “If your company had a matching program, would you turn to it to find a board position?”

R EASONS

TO

S ERVE

ON A

N ONPROFIT B OARD

We asked this group what would be the most compelling reasons for them to consider joining a nonprofit board, beyond supporting the organization’s mission. The top three were (1) professional skill development, (2) professional networking, and (3) considering a career in the nonprofit industry. Personal networking came in fourth place. Write-in responses focused primarily on the motivation of helping others/society, leadership development and using their expertise to support a good cause. If they were to join a board, the majority of respondents (93 percent) reported that it would be important to have an opportunity to share their marketing expertise with the organization. When asked which specific activities would encourage them, as marketing professionals, to serve on a nonprofit board, the top choices by order of preference were 1. Contributing opinions about the organization’s marketing and branding efforts; 2.Leading a board committee focusing on marketing and/or brand management; 3. Developing or reviewing a branding plan; and 4. Working with staff to provide input or guidance on marketing strategies.

T HE “R OLE ”

OF THE

M ARKETING P ROFESSIONAL

ON THE

B OARD

We asked these marketing professionals who do not serve on boards what the “role” of a marketing professional should be on the board, just as we asked those who do serve on boards. As a reminder, we asked this question in an advisory capacity, with the understanding that all board members are equals and there is no “marketing role” per se. The number one choice for this group was “playing a role in the strategic planning process.” This was also the top response among marketing professionals who have served on boards. In second place was “setting brand strategy and clarifying messaging,” ranked third among those who had board experience. “Articulation and refreshing the mission, vision, and values” came in third place (fourth among those with board service). “Pro bono marketing or PR resource generation” and “leading board communications training” ranked fourth and fifth, respectively.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

61

APPENDIX 3 U NDERSTANDING M ARKETING So now what? How do you find the right marketing professional with the expertise and skill set to help address your organization’s needs? Below is a list of marketing professions from the U.S. Bureau of Labor Statistics to help you understand the marketing field and who might be the right fit for your nonprofit board.

A DVERTISING Advertising manager: Advertising managers direct a group’s advertising and promotional campaign. They can be found in advertising agencies that put together advertising campaigns for clients, in media firms that sell advertising space or time, and in companies that advertise heavily. Account executive: These professionals manage account services departments in companies and assess the need for advertising. In advertising agencies, account executives maintain the accounts of clients, whereas the creative services department develops the subject matter and presentation of advertising. Media director: Media directors oversee planning groups that select the communication medium — for example, radio, television, newspapers, magazines, the Internet, or outdoor signs — that will disseminate the advertising. With the influx and prominence of social media channels, media directors may also specialize in online marketing and advertising strategies.

B RANDING Brand manager, marketing analyst: Brand managers’ main responsibilities include monitoring the competitive landscape of their industry, develop strategies to maximize market opportunities, and deliver the sales volume and project projections for the business. Brand managers can be likened to small business owners because they assume responsibility for the brand or brand family.

M ARKET R ESEARCH Market research director, market research manager, market research supervisor, market analyst: Market research involves researching the intended target audience, whether individuals, organizations or corporations. Research involves understanding the consumers’ needs, their purchasing habits, and how they want to be viewed by the rest of the world. Methods for research include focus groups, surveys, and reviewing past studies.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

63

P UBLIC R ELATIONS Public relations manager: Public relations managers plan and direct public relations programs designed to create and maintain a favorable public image for the employer or client. For example, they might write press releases or sponsor corporate events to help maintain and improve the image and identity of the company or client. They also help to clarify the organization’s point of view to their main constituency. Public relations managers often specialize in a specific area, such as crisis management, or in a specific industry.

S ALES Sales director: Sales directors or managers direct the distribution of the product or service to the customer. They assign sales territories, set sales goals, and establish training programs for the organization’s sales representatives. Promotions manager: Promotions managers direct promotions programs that combine advertising with purchasing incentives to increase sales. Often, the programs are executed through the use of direct mail, inserts in newspapers, Internet advertisements, in-store displays, product endorsements, or other special events. Purchasing incentives may include discounts, samples, gifts, rebates, coupons, sweepstakes, and contests.

M ARKETING Marketing managers: Marketing managers work with advertising and promotion managers to promote the organizations’ products and services. With the help of lower level managers, including product development managers and market research managers, marketing managers estimate the demand for products and services offered by the firm and its competitors and identify potential markets for the firm’s products. For more information, visit the U.S. Bureau of Labor Statistics’ Web site (www.bls.gov) or the American Marketing Association’s Web site (www.marketingpower.com).

64

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

APPENDIX 4 T HE S TRANGE

AND

W ONDERFUL C HEMISTRY

OF THE

B OARDROOM

In many ways, boards are just like any other group. They are made up of people, all of whom bring their eclectic collection of traits — the good, the bad, and the ugly — to the boardroom. Tasked with oversight of the organization, each board member brings a different perspective to the table. Discussions can — and should — be lively, and ultimately the board makes decisions concerning the organization’s operations, its finances, its staff, its future, and most importantly, its mission and how it will deliver on the promise implied in the mission. To make the best decisions, boards NEED those different perspectives. The most effective boards are those that think critically about their strategic direction — today, next year, and for the years to come — and decide what skill sets, knowledge base, and characteristics they need to get them there. The board that doesn’t recognize how changing demographics, nationwide and local, will affect stakeholders and service recipients will be seriously disadvantaged, and the proactive board will ensure that all voices are at the table and listened to. Developing a board matrix can help boards determine their strengths and weaknesses and develop a path forward for board development and better decisions through diversity of viewpoints. Clearly it is our view that the marketing professional provides one of those critical viewpoints. Here is a brief example; for others see The Handbook of Nonprofit Governance for a worksheet to help you develop a detailed matrix for your board (BoardSource, 2010).

1

2

3

4

A

B

C

D

Age

Gender Areas of Expertise Marketing HR Community Connections Corporate Etc.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

65

RESOURCES B OOKS : B OARD S ERVICE • Axelrod, Nancy R. Culture of Inquiry: Healthy Debate in the Boardroom. BoardSource, 2007. • BoardSource. The Business Professional’s Guide to Nonprofit Board Service. BoardSource, 2010. • BoardSource. The Source: Twelve Principles of Governance That Power Exceptional Boards. BoardSource, 2005. • Butler, Lawrence M. The Nonprofit Dashboard: A Tool for Tracking Progress. BoardSource, 2007. • Connolly, Paul M. Navigating the Organizational Lifecycle: A CapacityBuilding Guide for Nonprofit Leaders. BoardSource, 2006. • Dambach, Charles F., Melissa Davis, and Robert L. Gale. Structures and Practices of Nonprofit Boards, Second Edition. BoardSource, 2009. • Lakey, Berit M. The Board Building Cycle: Navigating the Organizational Lifecycle: A Capacity-Building Guide for Nonprofit Leaders. BoardSource, 2007. • Lakey, Berit M. Board Fundamentals: Understanding Roles in Nonprofit Governance, Second Edition. BoardSource, 2010. • Lakey, Berit M., Sandra R. Hughes, and Outi Flynn. Governance Committee. BoardSource, 2004. • Lawrence, Barbara and Outi Flynn. The Nonprofit Policy Sampler. BoardSource, 2006. • Patterson, Sally J. Generating Buzz: Strategic Communications for Nonprofit Boards. BoardSource, coming in 2011.

B OOKS : M ARKETING

AND

V OLUNTEERING

• Andreasen, Alan and Philip Kotler. Strategic Marketing for Non-Profit Organizations, Seventh Edition. Prentice Hall, 2007. • Brinckerhoff, Peter C. Mission-Based Marketing: Positioning Your Not-for-Profit in an Increasingly Competitive World. John Wiley & Sons, 2010. • Ramrayka, Liza. Employee Volunteering: The Guide. National Centre for Volunteering, 2001. www.energizeinc.com/store/1-204-E-1 • Stern, Gary. Marketing Workbook for Nonprofit Organizations. Fieldstone Alliance, 2001.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

67

A RTICLES • “Providers of professional services on board,” BoardSource Topic Paper • “So, you want to become a board member,” BoardSource Topic Paper • Depoy-Warren, Samantha. “PR Professionals Encouraged to ‘Get on Board’.” Maine PR Journal, Winter 2010. http://civicleadership.org/files/2010/05/Winter2010MainePRJournal.pdf • Dumont, Bryan. “Measuring Your Return on Reputation.” APCO, 2009. • Dumont, Bryan and Mark Benson. “Understanding Your Most Valuable Asset. Providing Information for Action.” Reputation Insight, 2007. • Lvovich, Stephanie. “It’s all about the reputation.” PRWeek, January 2009. • Macey, William and Benjamin Schneider. “The Meaning of Employee Engagement.” Industrial and Organizational Psychology: Perspectives on Science and Practice, 1(1), 3–30, February 2007. • Otterbourg, Robert K. Share Your Skills on a Nonprofit Board: Use Your Skills from the Corporate World to Help a Nonprofit Fulfill its Mission. Kiplinger’s Retirement Report, January 2010. www.kiplinger.com/features/archives/krrshare-your-skills-on-a-nonprofit-board.html • Roche, Joyce. “An Insider’s Perspective on Nonprofit Leadership.” Hermes, April 16, 2009. www.gsb.columbia.edu/alumni/news/insider%E2%80%99sperspective-nonprofit-board-leadership

W EB

SITES

• BoardSource www.boardsource.org • Taproot Foundation www.taprootfoundation.org

P RO B ONO R ESOURCES Visit Taproot Foundation’s website at www.taprootfoundation.org to access its pro bono resources. Use these resources to get buy-in from the right people internally (typically marketing or functional champions of the skill set you’d like to use) • Competencies Map: Use to have informed conversations with nonprofit partners and internal functional champions (e.g., marketing heads if you’d like to apply marketing skills) about potential project types and the skills necessary. • Corporate Community Engagement Spectrum • Employee Engagement and Impact Magnitude chart • Business Value Flashcards Use these resources to set the most effective strategy for implementing a program. • Designing for Impact framework • Pro Bono Standards & Valuation tools Use these resources to set the most effective strategy for implementing a program.

68

MARKETING LITERACY FOR THE NONPROFIT SECTOR © 2011 BoardSource and Taproot Foundation

K EEP

THE

C ONVERSATION G OING

If you are a marketing professional who has served on a nonprofit board or a chief executive or board member who has had marketing professionals on your board, please share your experiences with the rest of the community. Please contact us at [email protected] with your stories. For information on how HR professionals are a great resource for nonprofit boards, please see “Human Resources Literacy for the Nonprofit Sector: Why HR Professionals Make Great Board Members.” www.boardsource.org/bookstore.asp

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

69

ABOUT BOARDSOURCE BoardSource is dedicated to advancing the public good by building exceptional nonprofit boards and inspiring board service. BoardSource strives to support and promote excellence in board service, is the premier source of cutting-edge thinking and resources related to nonprofit boards, and engages and develops the next generation of board leaders. For more information, visit www.boardsource.org.

ABOUT TAPROOT Most organizations tackling social problems don’t have access to the marketing, design, technology, management, or strategic planning resources they need to succeed. Without this talent, few are able to have their intended impact on critical issues like the environment, health, and education. Taproot is a nonprofit organization that makes business talent available to organizations working to improve society. We engage the nation’s millions of business professionals in pro bono services both through our award-winning programs and by partnering with companies to develop their pro bono programs. One day, we envision all organizations with promising solutions will be equipped to successfully take on urgent social challenges. For more information, visit www.taprootfoundation.org.

SPECIAL THANKS Taproot Foundation and BoardSource would like to acknowledge Chevron for sharing our vision and supporting this collaboration. We would also like to thank the many research participants, including the interview subjects listed in Appendix 1; the survey participants, including hundreds of Taproot Foundation’s pro bono consultants; and the joint staff team from the Taproot Foundation (Aaron Hurst, Amanda Pape Lenaghan, Melissa Paulo, and Laura Weiss) and BoardSource (Deborah Davidson, Anne Wallestad, Outi Flynn, Trina Ramsey, Jessica Griffin, Kaylan Somerville, and Monica Luchak) whose extraordinary efforts and collaboration made this publication possible.

© 2011 BoardSource and Taproot Foundation MARKETING LITERACY FOR THE NONPROFIT SECTOR

71

Suite 900 1828 L Street, NW Washington, DC 20036-5114

202-452-6262 202-452-6299 Fax www.boardsource.org [email protected]

ISBN 1-58686-121-2

Suggest Documents