In their search for financial capital during this economic downturn, nonprofits would do well to work to build an asset of another sort: their social capital.
In our recent book,
The Charismatic Organization: Eight Ways to Grow a Nonprofit that Builds Buzz, Delights Donors, and Energizes Employees, we shared what we have learned over nearly two decades working with hundreds of nonprofits who have been AmeriCorps grantees or our clients. While many of these nonprofits are worthy but struggle, others thrive, seemingly able to attract donors, dollars, and top quality staff easily. They have the influence that comes from well-placed champions and the resources that come from committed partners. They may worry, but will likely weather the economic storm well. We call them “Charismatic Organizations.”
The secret of these successful organizations is a simple one: they have built high levels of social capital – relationships with people who will make introductions, recommend the organization for funding, build partnerships, advocate for the cause, tell others about the organization’s work, recruit staff and clients, and act in dozens of other ways to support the organization.
This social capital is the key to unlocking all other essential forms of capital that nonprofits need – including financial, human, and political capital.
Increasing social capital offers nonprofit organizations of all types the chance to seize opportunities. Today’s trends, particularly those that move nonprofits to strive for higher quality and consistency, may seem to cut against strategies that would increase social capital. As nonprofits seek to adopt more businesslike practices, they may undercut their “can-do” culture – a key to attracting supporters. As they strive for focus, they may avoid opportunities to broaden their circles. As technology plays a greater role, people may seem less important. And as service providers push to become more professional, they may turn away from volunteers who lack the right degrees. Charismatic Organizations have recognized that these tensions do not present “either/or” choices. Instead, they strive for “both/and” – for example, both reliance on greater professionalization of staff and increased involvement of volunteers.
In an organization with strong social capital, when people person check in, they rarely check out. A former staff person becomes a board member. A donor becomes a key partner. A client becomes a volunteer. And they bring their friends, families, and colleagues with them. Each staff person, board member, volunteer, and client is the hub of a potentially vast network of other contacts. They may belong to clubs or sports teams, religious congregations, or book groups. They have family members – spouses, in-laws, cousins, children, or grandparents. They have current or former employers, and their family members do too. They meet people on planes or trains or bus stops. And they have friends – different friends, in all likelihood, from diverse walks of life.
So when it is time to find a new receptionist or corporate partner, a person who knows the mayor or how to use social networking websites, the organization has the ability to reach beyond the people on its payroll for help. The volunteer who does the Saturday shift may be married to the Mayor’s press assistant and have a daughter who’s a computer wiz. The client who credits the organization with changing his life may know someone who runs the biggest company in town. The receptionist who is moving on may know someone from her synagogue who would be just right for the job. And when it is time to play “Six Degrees of Separation” to find the right person to make a call to a Congressman, these broad social networks significantly increase the likelihood of success.
All nonprofit organizations possess some degree of some social capital. But most could reach even higher levels with reasonable effort, which we explore in detail in our book. They could prioritize their outreach and cultivation efforts. They could tell their story more compellingly and widely. And they could make it easy for new people to join their community – using their strong track records and existing relationships to reach credibly out to a broader network of prospective friends.
And while it will be tempting to turn to new friends with a hand out, the key to turning these friends into long-term supporters will often be resisting the impulse to ask for money early in the relationship. When times make it hard to woo new funders, it may be the perfect time to seek time and talent rather than treasure.
Today this valuable resource may come in many forms:
Obama supporters ready to roll up their sleeves and serve
Corporate employees looking for new careers
National service volunteers, including AmeriCorps members (President-elect Obama has pledged to grow AmeriCorps more than three-fold)
College graduates entering a weak job market who are looking to boost their credentials with volunteer experience
Baby Boomers inspired to pursue encore careers in the nonprofit world
Generous individuals who want to give even though their financial resources are limited.
Many of these individuals will bring valuable skills and the ability to serve more than just a few hours a week. Savvy nonprofits looking to survive the downturn would do well to think about these kinds of volunteers and build into their core operations and programs important roles for them – including supervising other volunteers, publicizing the organization, coaching clients, planning fundraising and other events, and recruiting others to support the cause.
And by taking steps like these to build social capital, nonprofits may well find a path out of the financial crisis – a strong network of friends who will connect the organization to other resources and in many cases, one day write checks themselves.
Shirley Sagawa and Deborah Jospin run a successful consulting practice, sagawa/Jospin, working with dozens of clients in the nonprofit and for-profit sectors, from national nonprofits, foundations, and corporations to small start-ups and local groups on resource development, innovation, strategy, partnerships, and public policy.
A national leader, expert on policy and philanthropy, and former presidential adviser, Shirley Sagawa has been called a “founding mother of the modern service movement.” Deborah Jospin is the former director of AmeriCorps. During her tenure, AmeriCorps grew to an annual budget of $234 million with 60,000 members serving in 925 programs.
Find out more about the authors and book at www.charismaticorganization.com
