Newspapers and United Ways

Newspaper.jpg

There was an interesting talk show on NPR several weeks ago about the demise of the printed newspaper. For nearly three decades, newspaper circulation has declined every single year. On a yearly basis, the decline in circulation was never very large, but it has been consistent. As a result, nearly 2,000 newspapers have closed or merged in the past 15 years.

Several newspaper executives participated in the show, and their consistent theme was that if newspapers are going to survive, they must no longer think of themselves as publishers of a printed newspaper, but rather as news content providers. Because when you look closely at the statistics, you will find that people still want to read their news, but now they do so online. This presents an entirely new challenge for newspaper publishers turned content providers - how to make money providing content online.

Does any of this sound familiar?

The reason why newspapers exist has not changed over time. People still want to be informed about the news of the day. What has changed is how newspaper publishers provide the news.

I believe that United Ways have an even bigger challenge than newspaper publishers. Although many workplace campaigns are declining, I am not sure that donors are looking for a more technologically advanced way to give to United Way. The challenge facing United Ways is one of relevance – why would a donor want to give to United Way?

No one buys a newspaper because the newspaper publisher has a goal of selling 35,000 copies of the newspaper. Similarly, we know from our research with United Way donors that no one donates to United Way because they have a campaign goal of $3 million.

Newspaper publishers figured out that their “why” is obtaining and distributing news. For many years, how they distributed the news was via a printed newspaper. United Ways need to figure out their “why.” Workplace campaigns are not why a United Way exists. Workplace campaigns are how United Ways accomplish their “why.”

There are two primary reasons why a United Way exists. Some United Ways exist to fund deserving programs provided by local nonprofit organizations – these are fundraising-focused United Ways. Other United Ways exist to make long-term measurable change on a social issue – these are issue-focused United Ways.

The “why” for many fundraising-focused United Ways is funding deserving programs provided by local nonprofit organizations. Perhaps part of the reason why workplace campaigns are declining is that donors no longer value and need their United Way to provide funding to deserving programs provided by local nonprofit organizations. The younger generation may never truly value or need their United Way to provide funding to deserving programs provided by local nonprofit organizations.

For issue-focused United Ways, examples of their “why” include reducing poverty, increasing the graduation rate, and all children enter kindergarten ready to learn. Donors to issue-focused United Ways donate because they value and need their United Way to reduce poverty, increase the graduation rate, or have all children enter kindergarten ready to learn. Our research has found that most United Way donors prefer the “why” of an issue focus over the “why” of a fundraising focus - especially the younger generation.

Newspaper publishers and United Ways are both facing challenging times. Newspaper publishers are on the path to future success because they understand their “why” and have changed their “how” accordingly. For United Ways to succeed in the future, it will be essential to look beyond the “how” of the workplace campaign and consider why United Ways exist.

If this topic interests you, you may want to check out these previous blog posts I have written about the existential question of why United Ways exist: Why Before How and Can Your Board Answer This Question?

 

Why United Way?

trailmarker.jpg

In the past couple of weeks, several articles and editorials with ominous titles like “Do we still need the United Way?” have once again questioned the relevance of United Ways.

These articles reference all the challenges facing United Ways, such as: declining workplace campaigns, changing demographics, increasing competition, tax law changes, donor advised funds, technological opportunities for charitable giving, lack of understanding of United Way’s work, etc. Several decades ago, United Ways played an integral role in the charitable giving landscape but, with all of these new challenges, it is a role that is no longer needed if you believe these articles.

There is no question in my mind that United Ways are needed now more than ever before. But, the answer to the existential question of why United Ways are needed is dramatically different today. The role United Ways must play now is one of uniting communities to make change.

The goal can no longer be how much money is raised. The goal now must be community change such as increasing the number of high school graduates, reducing the number of homeless, or halting hunger. United Ways have the unique capability to convene their community, donors, volunteers, nonprofits, workplaces, governments, schools, and religious organizations to make measurable change.

We refer to the new role for United Ways as issue-focused. Issue-focused United Ways address a single issue, with a long-term bold goal for how they will change the issue. For example, a United Way focusing on the issue of early childhood education may have a bold goal such as “All children enter kindergarten ready to learn.”

For most United Ways, change is inevitable. It is not a question of if your United Way will need to change, but how your United Way will change. The challenges facing United Ways cannot be overcome by doing more of what United Ways have always done. Organizing more workplace campaigns will not mitigate the fact that workplace campaigns are declining – they will continue to decline. The change must start with a transformation of the role of United Way.

Our communities still need United Way to bring us together, to focus our time and money on addressing a critical community issue, and making measurable and long-lasting change. When United Ways unite communities to make change, no one will question the need for United Ways.

Gary 2017 Blog Signature NEW.png
 

Who Cares?

whocaresquestionmark.jpg

Your donors do NOT care about . . .

  •  The number of partner agencies that receive funding from your United Way
  •  The number of programs funded by your United Way
  •  The number of hours spent by volunteers to determine your allocations
  •  Your number of Facebook likes or Twitter followers
  •  The number of priority areas of investment or targeted goals at your United Way
  •  How many of your workplace campaigns had 100% participation
  •  Your total number of donors and the average amount contributed by your donors
  •  How much donors designated to other nonprofit organizations
  •  How many people used your volunteer connection website
  •  The number of people in your leadership giving society and how much they contributed
  •  How much money was invested in each of your priority areas of investment
  •  How much money was raised at your social fundraising event
  •  The amounts contributed by your top 20 workplace campaigns
  •  How many people are on your board of directors
  •  Your campaign goal

. . . because none of these things tell a donor why they should give to your United Way.

Your donors care about . . .

1)  What issue does your United Way address?

2)  What is your United Way doing to impact your issue?

3)  What results has your United Way achieved to impact your issue?

. . . because when your donors know these three things, they will know why they should contribute to your United Way. Learn more about the power of one issue and one bold goal to attract donors by becoming issue-focused on our website here.

Successful United Ways tell donors what they want and need to know.

Gary 2017 Blog Signature NEW.png
 

Quote of the Month: December 2017

Our December Quote of the Month comes from the former President of South Africa, Nelson Mandela:

Quote of the Month Image.jpg

“May your choices reflect your hopes, not your fears.” – Nelson Mandela

When you think about what your United Way will accomplish next year, do you think about the stark realities of campaign, or do you think about how many people your United Way will help become self-sufficient or enter kindergarten ready to learn? United Ways have the power to change their communities like no other nonprofit organization, but only when they are focused on the hopefulness of changing lives. With 2018 right around the corner, think about what your United Way could accomplish next year if you measured how many lives were changed, and not how much money was raised. Every choice an issue-focused United Way makes changes people’s lives. We hope that your United Way experiences the hopefulness that comes from changing lives in 2018!

If you have a quote you would like to share for our Quote of the Month, please let me know at gary@perspectives4uw.com

Gary 2017 Blog Signature NEW.png
 

 

The Strategic Plan You Have Is Not the One You Need

Compass with people.jpg

In 1976, Eastman Kodak owned the market for photographic film when it was estimated that over 90% of all photographic film sold was Kodak film. Sales continued to grow year-after-year until 1996 when Kodak’s sales reached a high of $16 billion. Sales started to drop in 1997, and it took just 16 years for Kodak’s sales to disintegrate until they were forced to file bankruptcy in 2012. Even the most casual observer would be quick to say that Kodak was too reliant on selling photographic film in a declining market that had moved on to digital cameras.

Was Kodak blind to these new technologies? Not at all – because in 1975 Kodak invented the digital camera. That’s right, Kodak invented the product that led to the demise of their company. Kodak invented the digital camera at the worst possible time – when they were fat and happy with their 90% market share for photographic film. There was little need for Kodak to sell digital cameras when photographic film was their cash cow. Kodak is not the only company to fail due to complacency – think about Blockbuster Video, Borders bookstores, or Atari videogames. 

Several weeks ago, I was talking with a new, first-time, United Way president who had been on the job for about six months. He inherited a United Way with a shrinking workplace campaign and reduced funding to partner agencies. I suggested that it might be time to consider changing direction and consider adopting an issue focus, as their United Way was very active in early childhood initiatives. The response from the president was “We have a plan to move ahead increasing our resources.” I am betting his plan is to find more donors to support United Way, so their United Way can continue doing what they have always done.

This United Way is not alone. I would estimate approximately half of all United Ways have developed a strategic plan. Although every United Way is unique, their strategic plans include statements about how they will increase the amount of money they raise, such as “We have established an aggressive goal to grow revenue to $30 million by 2016” or “Grow capacity for raising more funds and increasing revenue; increase the campaign at least 10% year over year” or “Increase to $7 million total annual revenue with $6 million in resources under management.”

If you read United Way strategic plans carefully, you will find nearly all of them also share another thing in common – their United Ways are planning to continue doing what they have always done. They will be trying to raise more money by asking donors to support what their United Ways have always done. United Ways often use terms like “community impact,” “collective impact,” and “collaborative efforts” to describe their work, but their strategic plan does not outline any substantial changes to their work or outcomes. I wonder if these United Ways are continuing to sell their version of “photographic film?”

We call strategic plans that set goals to increase revenues without changing what United Way is doing “plus one” plans. Plus one strategic plans are based on taking what United Way did the year before and doing one more than the year before, or one level better than the year before. If the goal of a United Way is to raise as much money as they can to fund partner agencies and programs, then setting a goal to increase revenues makes a lot of sense. But, without considering if donors want to support an organization that raises money to fund partner agencies and programs, a goal of increasing revenues may be unachievable.

This is not the kind of strategic plan your United Way needs.

Your strategic plan must answer the question “Why does your United Way exist?” An alternate version of this question is “What do your donors want your United Way to accomplish?” The foundation of a successful strategic plan is based on your United Way offering a service that donors and the community value and are willing to support. Your United Way needs a strategic plan built upon answering “Why does your United Way exist?” with a laser-focused direction and purpose that your donors and community value and are willing to support.

Answering the question “Why does your United Way exist?” comes down to deciding if your United Way will be fundraising-focused or issue-focused. This is your strategic planning first step. Until you answer this question, your United Way cannot develop a strategic plan because you do not know what direction you are heading or what you are trying to accomplish.

Even after working with United Ways for over 25 years, I cannot tell you “Why your United Way exists” or whether your United Way should be fundraising-focused or issue-focused. But, I can help you and your board figure out the answer with our Introduction to an Issue Focus Board Retreat. This half-day board retreat clearly explains the concept of fundraising-focused and issue-focused United Ways, what fundraising and issue-focused United Ways look like and how they operate, and the advantages and disadvantages of a fundraising focus and an issue focus. This is essential information to deciding the future of your United Way, and we frequently hear executive directors say “I wish you could have talked with our board and staff three years ago.” Following our Introduction to an Issue Focus Board Retreat, your board will be able to answer the question “Why does your United Way exist?”

With their significant work in the area of early childhood initiatives, the United Way I was talking about earlier may already have their “digital camera” if they are willing to look beyond what they have always done and transform their work by becoming issue-focused. Perhaps your United Way has an opportunity to transform your work too, but unless you start by answering the question “Why does your United Way exist?” you may never see the opportunity.

In these challenging times, your United Way needs a strategic plan that is built on answering the question “Why does your United Way exist?” and focuses all your efforts on achieving your purpose.

Gary 2017 Blog Signature NEW.png