Let there be no doubt about it, trend-watchers. Gone are the days of not-for-profit PR jobs being written off by the capitalist crowd as cushy nine-to-five gigs devoid of
"real world" challenges. In fact, more than a handful of experts are comparing not-for-profit life in 2001 with the PR agency scene - an environment in which motivated
young guns commonly sacrifice sleep and sanity in the name of professional growth and a good cause, and one in which senior-level strategic counsel is at a premium.
Consider, for example, that many not-for-profit communications departments essentially have become incubators for an increasing number of full-service philanthropic
partnerships, in which nonprofit reps play a liaison role akin to account managers in interfacing with corporate "clients."
"Companies are essentially hiring people in nonprofits to manage the nonprofit's relationship with the company and to look for win-win partnerships - ways for the company to
donate not only grant money, but also employee volunteers, advertising space and [in-kind] goods and services," says Mark Feldman, EVP at Cone, Inc. a Boston agency specializing
in philanthropic partnerships. The linchpin in every deal, however, is an alignment of strategic goals on both sides. Feldman cites ConAgra's "Feeding Children Better"
initiative with America's Second Harvest as a prime example of good chemistry. Tax breaks alone are no longer enough to inspire corporate do-goodery.
This philosophical shift in the giving equation has thrown some of the more venerable nonprofits - particularly arts organizations - for a loop in recent years, according to
Marty Cohn, a PR practitioner with 25 years of experience serving clients such as the National Society for Fundraising Executives, Giving New England and Recording for the Blind
and Dyslexic. Cohn says new economy companies have, if nothing else, forced charitable organizations to rethink the way they communicate with their donor base - not to mention
who their donor base is. "They've had to start talking about the services they provide in a language the new wealth will understand and support. Corporations are looking
for more of a return on their venture philanthropy," he says. And the best nonprofit communicators are refining their elevator pitches.
Indeed, today's biggest not-for-profit players don't look anything like the charities your father once supported - and the issues on the table are about to get even more
interesting in 2001, in light of some of the new policies and proposals set forth by the Bush Administration. Reproductive rights organizations operating abroad have already had
their grants yanked. Now the president's newly launched faith-based initiative, which will allow religious groups to compete for federal tax dollars earmarked for social
programs, will add another wild card to an already tight funding race.
All Eyes on the Economy
Bill Novelli, associate executive director of AARP, the nation's second largest association with 33 million members (AAA is first), aptly observes that the outcome of the
current tax battle in Washington "could affect donations and contributions to nonprofit [charities]" as well.
Which brings us to the myriad "what if" scenarios surrounding the economy. If it tanks, we can expect even more tectonic shifts in the nonprofit landscape. Ann Getman,
principal with Getman Strategic Communications in Cambridge, Mass., whose clients include Volunteers of America, Peace Corps and World Resources Institute, observes that belt-
tightening often results in decreased support for perceived "luxury" causes such as animal, wildlife and organ research organizations. In tighter times, she says, donors tend to
favor human service organizations offering tangible relief such as food stamps, healthcare and housing.
Rough economic roads also tend to yield increased public scrutiny of operational expenditures, Getman adds. "The big challenge for the nonprofit sector is the struggle to
maintain a high ratio of return on dollars channeled into actual programs. The industry norm dictates that you should try to return 85% of your revenues back into programs and
services, using 15% for overhead," she says. Nonprofits that tip the scales often find themselves in the hot seat.
Novelli concurs. "The one thing the nonprofit world always overlooks is how the public views them and the issue of accountability. You can't make the mistake of thinking your
mission speaks for itself. What the public wants to hear is, 'You're giving us your money and we're using it wisely.'"
What About Associations?
The American Society of Association Executives (ASAE) estimates that nine out of 10 adult Americans belong to at least one association, and one in four belong to four or more
associations - although association staffers may face membership declines in the months ahead if budget cuts force businesses to drop their professional affiliations along with
magazine subscriptions and other perceived "perks."
Ken Sommer, PR manager for the event planning company Cvent, and formerly director of PR for ASAE, anticipates that ongoing mergers and consolidations in the association sector
may also lead to overall staff cuts.
But not all communicators are jarred by the prospect of tougher economic times. Henry Chamberlain, senior VP with the Building Owners and Managers Association in DC (and chair
of PRSA's national capital chapter) notes that advertising dollars tend to be much more vulnerable than PR in down cycles. Rough economic waters may, in fact, signal an
opportunity for PR. "Communicators who have done a nice job of getting into the board room" will have a chance to underscore PR's value and cost-effectiveness, he says.
In fact, the majority of not-for-profit counselors seem unfazed by the threat of an economic fallout, having already weathered torrential increases in overall competition for
funding dollars, membership, brand visibility and mindshare in recent years. "Nonprofits have begun to rely less on quiet grassroots methods and more on high-visibility
communications such as direct marketing, PSA ad campaigns and [targeted media relations]," says Getman. They're thinking more about branding, about leveraging technology for
greater communications efficiencies, and about strategic partnerships.
"We have become much more corporate in our approach to things," Chamberlain says.
If that's the case, then the outlook for communicators in the nonprofit sector remains fairly bright - provided they remain wary of dotcom ventures with no sustainable funding
models to speak of.
(Chamberlain, 202/326-6325; Cohn, 617/962-3136, [email protected]; Feldman, 617/272-8403; Getman, 617/576-1847; Novelli,
202/434-2510)
Not-for-Profit Numbers
- There are more than 140,000 associations in the U.S., employing 295,000 people.
- More people work for nonprofit organizations (8.6 million) than for the federal government and all 50 state governments combined (6.8 million).
Source: ASAE