Tag Archives: nonprofit management

Will Your Nonprofit be Ready for the Future of Payments?

This article was originally published on nten.org in January

15NTC poster

from nten.org on instagram

One recent sunny afternoon in Austin, I gathered with a small crowd of NTEN 501 Club NPTechies to lunch and learn about digital currencies and payments innovations.

We were there to talk about Bitcoin—what it is (digital cash), what it isn’t (internet not required), why you would want to take advantage of it (0% transaction fee, anyone?), and what you need to know before implementing (multi signature wallets!)

The informal discussion was led by presenters, David J Neff, Digital Strategy Manager at PwC and Jacob Parks, Legal Researcher at the Association of Certified Fraud Examiners. (You can watch the whole thing on Capital Factory’s YouTube or read my blog post for a summary.)

Most importantly, I learned that tech-savvy charities need to address changes happening in the payments landscape NOW.

Timing is perfect for you to learn from trailblazing organizations already breaking ground on the new frontiers, while still being early enough to claim advantages for your own cause. For example, digital currencies, such as Bitcoin, offer an excellent fundraising currency for micropayments and microlending because they provide a platform where you can give $0.25 without credit card fees eating it up.  Organization who have a good strategy in place will be poised to gain exposure to new sources of support with little accounting risk.

Digital currencies aren’t the only thing shaking up the payments landscape. Changes in physical security, such as chip-and-PIN (smartcard) technology, are already being used widely in Canada and Europe and will be expanding in the United States. ApplePay and others are radically increasing the adoption of tap-to-pay NFC platforms, especially in event-based scenarios. Will your nonprofit be ready?

All this innovation has not gone unnoticed at the major nptech software companies, either. PayPal has added digital currencies and wallets to its lineup for merchants and more is on the way. Even Microsoft is accepting Bitcoin! Software providers who want to keep their customers are looking for creative ways to integrate more payment options into their solutions. As they do, more charities will have more ways to connect with donors within existing toolsets.

At the 2015 Nonprofit Technology Conference, we are going to take this discussion to the next level with an expanded panel of experts to talk about how payments innovations are changing the way organizations engage with their constituents. David J Neff will join NTEN veteran, Jason Shim from Pathways to Education Canada, as well as pros Alissa Ruehl from Blackbaud and Robin Dupont from PayPal in a panel you won’t want to miss!  

See you in at #15NTC

NTC15 Session #1048:
Cryptocurrency that Cares: A primer on how digital currencies and payments innovations can help your organization

 Follow along on Twitter with #15NTCmerchant on Wed, Mar 4 1:30pm – 3pm CT

Nonprofits and Bitcoin – 501 Tech Club Austin panel

In October, the Capital Factory hosted the 501 Tech Club of Austin, an affinity group of NTEN, the Nonprofit Technology Network which is a community transforming technology into change. The panel was entitled “Nonprofits, Bitcoin and Digital Currencies.” Presenters included David J Neff, Digital Strategy Manager at PwC and Jacob Parks, Legal Researcher at the Association of Certified Fraud Examiners.

 

Before our discussion began, participants got a quick primer in bitcoin. You can learn more about Bitcoin in this primer from Princeton:
https://wws.princeton.edu/news-and-events/news/item/bitcoin-primer

 

In the June issue of NTEN: Change, members read about how Bitcoin may be a game-changer for fundraising and nonprofits:
http://issuu.com/ntenorg/docs/nten_change_june2014_final/18?e=11383070/8364413

You can also watch this accompanying recorded webinar with David J Neff and Jason Shim of Pathways of Canada:
http://www.nten.org/events/webinar/2014/05/21/bitcoin-for-nonprofits-a-fundraising-digital-disruptor 

 

Some of the key learnings from the panel included:

What is digital currency or Bitcoin?

  • Bitcoin is a peer-to-peer digital currency. There are many “altcoin” alternative digital currencies too.
  • It’s like digital cash. Once you pass it to someone, there is no real way to track it. 
  • You store your coins in a vault at an online exchange (eg, Coinbase) which generates a wallet key you use to exchange coins. Be sure to pick a reputable exchange!
  • You don’t need a computer to pay with Bitcoin (eg, write your vault number and pass it on a napkin.)
  • Bitcoin value fluctuates more than traditional currencies, making it also like an investment. (Around $650/coin once, now closer to $430/coin and still on the move!)
  • Mining Bitcoins is very complicated. 
  • Accepting Bitcoins on an e-commerce website is technically very easy.

 

Why Bitcoin?

Advantages of implementing Bitcoin at your organization include:

  1. Access to new markets and supporters by being a first leader
  2. Reduced (or zero!) transaction costs 
  3. Increased opportunity of provide micro-financing internationally, especially where anonymity increases program effectiveness (eg, instances of govt oppression, etc) 

 

Security

Tips for reducing your exposure to fraud:

  • Always use 2 factor authentication for bitcoin transactions (eg login with a password, confirm with a text message)
  • Segregate duties (for digital currency transactions, same as you would to reduce check fraud at your organization
  • Multisignature wallets coming soon — support segregation of duties by requiring at least 2 signatures to spend
  • Hot wallet vs Cold Vault — keep a portion of coins in wallet for current use. Unused coins can be put in “cold” storage on a computer that is not connected to the internet

Know before you implement

Before adding bitcoin, know how to account for it! There are no GAAP standards yet, although the IRS has released a statement that bitcoin will be treated as property. Have a strategy in place before you start accepting transactions.

Number 1 source of fraud at organizations is check fraud (#2 is falsified expense reports). Minimize your exposure to risk by segregating duties to spend digital currencies. Implement multisignature wallets as soon as possible.

 

Why now?

By implementing now, organizations can become a leader in nonprofit bitcoin use while still being able to learn from the experience of those already transacting. Organizations can gain exposure to new markets for fundraising messages with little additional accounting risk. Be prepared for the day when a major donor walks in and asks to leave their endowment-starting donation as bitcoin!

 

Additional links mentioned during our discussion:

 

How to mine bitcoin–one of many examples available via search! (this is not an endorsement of any product):
https://www.youtube.com/watch?v=GmOzih6I1zs 

 

Newsweek article on the guy who didn’t invent bitcoin:
http://www.newsweek.com/2014/03/14/face-behind-bitcoin-247957.html 

 

Do you have a link to share about Bitcoin and Nonprofits? Leave a comment!

4 Ticketing Strategies Arts Orgs Can Learn From Sports Teams

Austin Wranglers Fans

Austin Wranglers Fans

During a discussion at a recent Austin 501 Tech Club event a new friend reminded me that the challenges faced by small, producing arts organizations are in fact very similar to those faced by regional “for-profit” sports teams.

Connected with a Shakespeare theatre company in Texas Hill country, my friend’s litany of difficulties in creating both appealing and profitable pricing scenarios for all patrons, from first-time attendees to deeply engaged sponsors is a familiar story to nonprofit managers everywhere. Reconciling rising costs from vendors, such as ticketing systems, with the producing organization’s own need to increase margins to continue operations is a challenge universal to performing arts and sports events alike.

Small to mid-sized sports teams are more successful at marketing and reaching new audiences than their nonprofit counterparts because they treat the entire fan experience as a revenue opportunity, not just the sale of tickets. In fact, there are four key strategies performing arts organizations can learn from the way sports teams produce events and create exceptional experiences for fans while maximizing revenue.

Packaged to Sell
Sure you have single tickets and season tickets. Now get creative! Most ticketing services charge fees based on ticket price, so create packages that include more than just tickets. For example, the Austin Wranglers, an arena football team, included drinks, food, and table service with prime-front row seating. The setup required the sacrifice of an entire section of regular seats from the normal seating map, but the total revenue for the premium packages, which were often included as part of a sponsorship deal, exceeded the maximum revenue that could have generated from that section (if it sold out) by 10 times! In fact the revenue from the premium seating section was almost equal to the entire rest of the house!

Create smaller group packages. Groups don’t have to be ten or more. Include smaller group packages that net the same gross revenue to your organization by providing other “extras” such as coupons to be exchanged for food or drink at the concession stand, t-shirt, or collector’s program book, etc. For example, a family 4-pack including 4 sodas and 4 hot dogs might be priced similarly to a group of 10, and reaches a previously potentially under-served market segment. This kind of creative packaging has the added benefit of maximizing ticket revenue margin–since you sell fewer seats, you pay less ticket fees, and make up the revenue in additional services.

Reward early orders with special printed commemorative tickets. Even if your venue entrance system requires barcode scanning, most ticketing databases allow blocks of seats to be batch printed so you can create custom printed tickets which include barcodes. Companies such as National Ticket Co and Worldwide Ticket Craft are a good place to start getting quotes. If you don’t need barcodes, printing custom tickets is as easy as getting the seat numbers right. The effort you put into to designing and creating collectible tickets season after season, not only creates an urgency in your customer base to order early, but also also creates a deeper engagement with your best, long-term fans.

Something Special
Have a special promotion for every event. Rotate special deals, so it spreads the revenue “hit” across different operating budgets. The Round Rock Express use this technique for almost every home game. Examples of their promotions include: dollar hot dogs and sodas (concessions budget), get in free with a donation to local food bank (tickets budget), fireworks (game operations budget), special program (eg, kids club).

Creating special promotions is limited only by your imagination. Don’t let your ticketing or database system limit you. Think outside the box to create promotions that motivate ticket buyers. Listen to your sales staff, and be open to test new ideas. Don’t be afraid to fail. The promotions that fail never need be repeated, and ones that are successful can become traditions!

Include the Kids
Want to make sure the adults have a good time? Include children’s activities at every event to keep the kids distracted and out of mom and dad’s hair. For sports teams, this often means games or activities that happen during the game, off to the side. If your event allows it, consider creating a safe “kid’s zone” with low cost supplemental activities for families. Parents who want to attend the arts usually budget for childcare. Price the cost of your planned activities less than a night’s babysitter.

Don’t be dissuaded from this tactic if your organization produces art that isn’t necessarily considered “kid-friendly.” Get creative and find ways to include activities for the younger set. For example, most 11-year olds wouldn’t sit through Macbeth, but they would attend a fun Shakespeare “quick camp” while mom and dad see the show. Your organization can potentially supplement revenue and create life-long fans, all while providing a convenient service to parents!

Turn Fans into Cheerleaders
The Austin Wranglers had a very vocal set of fans, nicknamed the “Rowdy Wranglers.” These year-after-year season ticket holders made their presence known at every home and away game, traveling many miles, at their own cost, to support the team. The team recognized these raving fans by officially sanctioning the group, providing “uniforms” (in the form of custom printed official jerseys, which the fans paid for themselves) and allowing the group onto the field to perform pre-game. They literally paid to become cheerleaders for the team!

While pre-show public performances with pom-poms may not be appropriate for all producing organizations, arts groups can leverage their most loyal supporters by engaging them in peer-to-peer fundraising and advocacy campaigns, as well as volunteer opportunities. Have an engagement ladder that lays out the path from first-time ticket buyer to donor to board member. Always consider that butt in that seat gave his/her time and money to be at your event. What else might they be willing to do, if you ask them?

Nonprofit Doesn’t Mean “Doesn’t Make Money”
Being a nonprofit organization doesn’t mean you don’t make money; you just do something else with your profits. Instead of paying shareholders, you provide programs or serve the community. The same as all businesses, nonprofits must maximize revenue while minimizing costs. By following the example of successful events produced by local sports teams, regional producing arts organizations can garner that extra winning edge for themselves!

Volunteers: Herding Cats into a Pack of Lions

Cat wearing tieAnyone who manages volunteers can identify with the analogy of herding cats.  Volunteers want to  be more engaged than ever, but often nonprofits fail to capitalize on their skills and passions. Organizations need actionable ways to change the way they engage with volunteers.  Whether you’re developing interns, young professionals, or working with retirees, learn how to turn your herd of cats into a pack of lions!

Watch this presentation to learn:

  1. Why volunteer programs fail
  2. Strategies for evaluating and identifying gaps in current volunteer system
  3. 6 tips to improve volunteer engagement

Summer Acts at the City Theatre

I am technical director (and stage manager, and marketing director, and photographer, and lighting designer…) for the Polish Thespian Project production of Shakespeare’s Measure for Measure as part of the Summer Acts! festival at City Theatre in Austin, Texas.

Robert Stevens and Martinique Duchene-Phillips star in Measure for MeasureJustice meets mercy and virtue encounters vice in Shakespeare’s probing dark comedy. The Duke leaves his puritanical Deputy Angelo in charge, hoping he will rid the city of corruption. Though Angelo enforces the law, he becomes entangled in a web of lies when he is attracted to a young novice pleading for the life of her condemned brother. The bard masterfully restores order and even creates a happy ending.

Please come out and see our show! The festival runs July 5 -15th.
Show times for Measure for Measure are:
FR6@7, SA7@6, SU8@6, WE11@7, TH12@7, SU15@4

For ticket information, please visit the Polish Thespian Project on Facebook.

 

4 Results from Crowdsource Experiment at #12NTC: Nerd, Geek and Gear Herding

This article originally appeared on the SageWords.net blog.

4 Results from Crowdsource Experiment at #12NTC: Nerd, Geek and Gear Herding

By Grant Howe and Stacy Dyer

At the 2012 Nonprofit Technology Conference (#12NTC) in San Francisco, California, we led a session called Nerd, Geek, and Gear Herding 2.0. Building on last year’s session, we were pleased that this year we had the opportunity to introduce the “crowdsourcing” experiment to collectively solve our nonprofit technology problems.

#1: Bridge Communication Gaps
Our first “crowdsourced” dilemma asked how to deal with a strong technologist who is working towards the right goals, but struggles with communication style. The importance of resolving the communications issues vs. insulating the technologist from communications was discussed. Solutions included bridging communication style gaps with coaching and buffering systems. Appropriately timed conversations can provide focus–sometimes geeks don’t like to be interrupted!

#2: Managing Without Authority
Second, we talked tips for managing without authority, such as project managing a cross functional team and getting buy-in from executives or board leadership. Here the crowd agreed you need to offer solutions, not just bring problems. Also, face-to-face communication is better than email to build trust.

#3: When It Ain’t Broke
Third, we talked about some of the implication to being “too good” at your job. When the server hardly ever crashes (because you’ve moved your IT infrastructure to the cloud), how do you get buy-in for incremental improvements? The key is to leverage technology and technical personnel as trainers and thought leaders within your organization. Raise the visibility of high-tech projects and people.

#4: Newbies Welcome
Finally, the “crowd” offered tips for making valuable, newly hired technical staff feel welcome. Tips included having all the resources they need (eg, desk, email, paperwork) ready to go. A welcome sign, snacks and a drinking cup as a gift was discussed as a high impact / low cost way to make them comfortable.  Invite the new employee to a welcome lunch with staff they will need to work with on a regular basis. Have them pass out treats as way to introduce them to other staff around the office.

Overall, our first “crowdsource” was a great success! If you have other tips or suggestions, please add them to the comments here! Thanks again for another great conference and we look forward to continuing our “experiment” again next year!

Grant Howe and Stacy Dyer presenting at 2012 Nonprofit Technology Conference in San Fransisco

12NTC: Not just for geeks

San Fran at night

San Fransisco hosted the 2012 NTC – Nonprofit Technology Conference

I just got back from #12NTC, the 2012 Nonprofit Technology Conference. As always, it’s an explosion of nptechie geekdom and one of the best parties events I attend all year.

And while I may be a self-proclaimed geek, NTC is not just for geeks anymore! This year’s audience boasted wide variety of folks involved in all levels of nonprofit management, social entrepreneurship, and community organizing. The refreshing diversity of social media influencers, philanthropists, and social responsibility leaders created a unique community of vibrant energy motivated to find a way to “make it work” and do good.

Where AFP is a decidedly more mature organization of fundraising professionals, NTEN’s network of younger, more tech-savvy nonprofit leaders offers a perspective on the future of nonprofit management. As a product marketer, it’s a great opportunity for me to spot new trends — like using mobile technology to engage constituents; moving tech solutions to the cloud; or for the fashion conscience, donning patterned leggings with a vintage dress. (Vanessa R., I’m looking at you!)

If you weren’t able to make it to #12NTC this year, no worries! One of the best things about having a tech-savvy audience is that NTEN is able to leverage the power of their attendees to crowdsource session notes. Check out the full list of Google docs here with session notes from everything from online community engagement to data analysis to nerd-herding!

And, of course, watch this blog for my learnings and key takeaways from #12NTC over the coming months!

Always,
Stacy
Product Marketing Manager, geek, and proud NTEN member

 

 

 

3 Personas You Have to Meet

Maybe you already know them. They certainly already know you. They are your constituents, your supporters, and donors. Want to know who they are? Keep reading…

As a product marketer, I am very familiar with the concept of using personas to help me understand my audience. At Innogive 2012 in San Fransisco, Jeff Dunlap of MobileCause, described the three key personas who interact with causes online.

First, there is the internet artist. He actually doesn’t really care about your cause. What he wants is to impress his friends. He is motivated by the number of retweets and likes he gets in social media. So he makes up something clever–like make up a t-shirt that says, “F**K CANCER.” You can’t say that, but he can! He is, in effect, a “free agent” as Beth Kanter describes in her concept of a Networked Nonprofit.

Next, the curator picks it up. She likes to put things into collections that are easy to browse. She pins that “F**K CANCER” t-shirt in Pintrest, where it gets picked up by Martha-Stewart-types everywhere, and creates a flurry! She doesn’t really care about your cause either, but loves it when her “pin” get shared around.

Now meet mobile grandma. She loves using her smartphone to share mobile photos on Facebook. She posts a picture of her niece wearing the infamous t-shirt. That post gets picked up by another mobile grandma in Denmark, who translates the t-shirt into 3 different languages (in effect, another internet artist) and the cycle starts again.

As you can see, these personas have the power to give your cause a huge boost, even though they may not actually donate cash (or buy the t-shirt) themselves. By understanding what motivates these personas, you can create (or, at least, not squash) opportunities to go viral!

So You Wanna Be a Mobile Superhero?

Ok, so there was a lot of talk about the Justice League at Innogive 2012.

Justice League

I’m more of an Avengers fan, myself, but maybe that’s just because I’ve always liked Stark’s toys.

Anyway…

Kayta Anderson, shared these 5 forgotten questions we need to answer before you can be we can become superheroes in mobile fundraising!

1) Who is it for anyway?

Know your audience. She says that when at least 5% of traffic to your website is from mobile browsers (you are using Google Analytics to track this, right?) However, there was some discussion that if you don’t have a mobile site, you won’t get mobile traffic.

2) What will it do for them?

We download apps to make our lives easier. Unless the app provides a something sought after by your audience, they won’t download it. Don’t build an app for apps sake. Provide value to drive behavior.

3) What do you have?

Time, resources, money, staff. And not just staff to run it, but who in your organization will get behind the project? They have to be willing to take risks.

4) Where does it fit in?

Mobile is another channel in your multichannel communications strategy. You need to align your messages and strategy across all your channels.

5) What will it do for you?

ROI vs ROE. Traditionally, managers focus on return on investment. Instead focus on return on engagement, which measures things like new supporters, brand exposure, added convenience for supporters, improved advocacy results.

 

Why Mobile Won’t Work Magic

I attended a webinar recently where the presenter attempted to demystify mobile magic by explaining that it is more like Houdini magic than Disney magic – that is real and it is something you can learn.

First, let’s call that Harry Potter magic just because I like the balance of Harry/Harry.

Now, I’m going to completely disagree.

Mobile isn’t magic—not even learn-able, slight-of-hand magic. There are no tricks and there are no secrets. Sure there are similarities to theatrical magic; getting mobile right takes a lot of hard work, dedication, and admittedly, a bit of showmanship never hurts!

The truth is mobile is not a magic panacea for all that ails your organization’s lackluster fundraising results. You do not add a mobile website or donation form and – poof – watch those donations roll in. However, mobile can be used as a valid tactic for expanding your reach and reinforcing your message, thereby increasing your level of engagement with your constituents.

Rather than thinking of mobile as a magic trick, I prefer to think of implementing mobile tactics in terms of a learning a new style of dance. You already know how to elegantly waltz your way through a direct mailer. Your sophisticated email strategy is as alluring to your donors as a sultry tango. Adding mobile-enabled elements to your existing communications is like throwing in a little Texas swing. You already know how to dance with your donors, mobile is just about doing to a slightly different beat.

By finding ways to leverage your message into mobile channels, such as text messages or mobile-optimized webpages, you augment the repertoire and relationships you have already built. Identify where mobile can supplement and reinforce your existing efforts. Rather than considering mobile tactics as a separate campaign, look for creative ways mobile can enhance current, already agreed-upon goals. Mobile isn’t a new trick; it’s just another way to dance.

Bottom line? Don’t try to use mobile to pull a rabbit out of your hat. You will fail. Instead, focus on how you are already interacting with your donors and begin integrating a few new mobile steps into your choreography.