Posts tagged ‘non-profit’

February 15, 2010

Reducing Costs through Mailing List Cleansing and Skilled Volunteers at Quest

Another great example of how non-profits can utilize technology and skilled volunteers to reduce costs and improve services is with Quest Food Exchange.

The Quest Food Exchange, run by the Quest Outreach Society, leverages an innovative business model to rescue food that would otherwise be thrown in the garbage and headed for landfills, and redirect it the local hungry who need it most.  The organization is B.C.’s only food exchange, diverting almost 6 million pounds of surplus food from landfills each year, amounting in $7.12 million of food.   The organization serves 40,000 people a month by providing food to hundreds of social service agencies.

The viability and success of Quest’s programs relies on engagements with donors and constituents who need the organization’s services.  As such, having a reliable way to stay in touch is essential.  When SAP employee Annette Bazin showed up to perform some general volunteer support at Quest one afternoon, she was surprised to see how much volunteer time needed to be spent fixing incorrect address labels on direct mail materials and restamping returned mail.  In speaking with Quest staff, she learned that unfortunately 25% of Quest’s direct mail campaign mailings were being returned, resulting in boxes upon boxes of undelivered outreach materials due to wrong addresses, incorrect postal codes, and non-deliverable addresses.  All of this returned mail translated into thousands of lost dollars-worth of postage and printing costs, manpower, and, most importantly, lost participation by constituents and funders who were not able to be kept informed.  Faced with this challenge, Annette recognized the opportunity to address this problem in a more meaningful way by not just licking stamps and resorting envelopes but dramatically reducing the organization’s undeliverable mail by improving the soundness of the organization’s contact database through SAP Business Objects products.

Annette, an SAP  Corporate Engagement Manager for the Global Knowledge team, leveraged her engagement management expertise to set up and manage the relationship with Quest for this project. Given the non-product focus of her experience, Annette approached me to bring in colleagues who could provide the necessary product and implementation expertise, while she played the role of program manager serving as the main conduit between Quest and her colleagues’ technical support.

Annette worked with me to explore what opportunities there were to partner to meet Quests needs and identify the product and support that would have the greatest impact on the organization. Together, we established the framework for the engagement, setting the goals of the project, identifying Quest’s involvement, and making sure the framework of the engagement was mutually agreeable. Once a clear outline of work was established, SAP Business Objects OnDemand Group Product Manager Colin Adler stepped in to manage the detailed implementation of the database address cleansing process with Quest’s Community Relations Coordinator, the primary user of the mailing list database, and a volunteer charged with updating all the information.  Colin led the Quest team through the technical details of the implementation, and also served in an advisory role to ensure that the Quest team would be self-sufficient after the initial implementation completed.

This project was completed in April 2009, and a mailing campaign conducted less than a month after the completed implementation had a return rate of only 1.5%, down significantly from the 25% return rate the organization was experiencing prior to the database address cleansing solution.  By cleaning of the mailing list of over 500 bad and duplicate addresses, Quest estimates that the this support SAP provided is saving the organization over $5,000 annually. Since Quest is able to leverage each dollar into six dollars of food donations, this represents an additional $30,000 of food available to constituents.  “From a cost perspective, we are saving dramatically” says Elizabeth Crudgington, Quest’s Interim Executive Director. “Prior to [the SAP  support], we needed to have volunteers coming in for hours and hours at a time sorting through returned mail… and [Quest] lost hundreds of dollars in each mailing campaign in reprinting and mailing costs.” And the benefits have only just begun. Elizabeth shared that “we were so pleased with the outcome of this first phase, we are already in discussion for phase two of making better use of our data: dashboarding.  We’ll be exploring what we can do with [this database] with SAP Business Object’s products and support.  The Board is very excited about partnering for phase two.”

The SAP employee volunteers also walked away from the engagement with tangible professional development benefits.  Because his day-to-day role at SAP Business Objects is not typically client-facing, Colin found this engagement particularly beneficial for the opportunity to “sit down with the client user of our software.”  He felt that “engineering employees, for example, whose roles often have less direct exposure to clients, can really benefit from this interaction.  Getting exposure to the kinds of problems that customers face will be immensely valuable down the road.”  Similarly, Annette found incredible value in seeing another important facet of SAP’s business first-hand – “prior to this project I hadn’t been as aware of the data cleansing and management portion of our tools.” She also appreciated that this project gave her “the opportunity to work with other people in my office, which my role does not generally allow, and to work closer with Colin and learn more about his job and what he does”. Moreover, she also found worth in the altruistic nature of volunteering.  “I think the biggest benefit [of this type of project] is that you are contributing to the good of society.  I feel that even with this small project, it has saved [Quest] money, which means that they can feed more people thanks to our product and services.”

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February 12, 2010

Free Software for Non-profits from TechSoup

Many of my posts talk about how non-profits can use technology to improve operations and better communicate with stakeholders.

However, a big questions non-profits have is: How do I get this technology?

My best answer is TechSoup. TechSoup Global, headquartered in San Francisco, provides a platform for non-profit organizations around the world to gain access to the software and hardware they need. TechSoup has served “more than 83,000 organizations and distributed over 4 million products as of June 2008″

At SAP, we partner with TechSoup to distribute our solutions such as Crystal Reports and Xcelsius to over 900 non-profit organizations in the US, Canada, Germany and Brazil. In 2010 we will be adding another 15 countries to that list.

In addition to SAP software, TechSoup provides access to solutions from Microsoft, Symantec, Cisco, Adobe and many other donors. These offerings are available in 32 countries with more being added all the time.

To get access to the software, non-profits sign up for a TechSoup account in their country. This involves providing proof of non-profit status (i.e. 501c3 status in the US or CRA certification in Canada). Then you can choose from the donor list and download software. The software itself is free but TechSoup charges a modest administration fee to pay for running the platform. Note that the exact mix of software available varies from country to country. Also, each donor will have their own criteria for donations. For example, we do not grant software to political or religious organizations.

In addition to the technology distribution platform, TechSoup offers help and info such as “instructional articles and worksheets for nonprofit staff members who utilize information technologies, as well as technology planning information for executives and other decision makers”. Also part of the TechSoup family is the amazing NetSquared program designed to help non-profits take advantage of Web 2.0 and social web technologies.

TechSoup is an invaluable resource for any non-profit organization looking to add to their technology portfolio. If you are in this sector, signing up with TechSoup for your technology needs is an absolute must. I’m very proud to be partnering with TechSoup to build capacity in the non-profit sector and help organizations better deliver on their mission.

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February 11, 2010

Cutting Reporting Time and Improving Fundraising with Skilled Volunteers at Arts Umbrella

Last time I talked in general about how skilled volunteers can contribute to community organizations. This time I want to talk about a specific example where SAP employees worked with Arts Umbrella to improve reporting and fundraising processes. This is a great example of how technology, combined with business skills (in this case sales processes) can be applied in partnership with a community organization and have a big impact.

Arts Umbrella is Canada’s preeminent arts institute for young people, ages 2 to 19. The not-for-profit began operating in a small rented space in 1979, with 45 children attending. Today, Arts Umbrella operates in a 22,000-square-foot facility in Vancouver, British Columbia, and has numerous partnerships with other organizations across the province of BC. Arts Umbrella estimates that, during 2006 and 2007, more than 36,000 children attended classes, workshops, and outreach performances. Arts Umbrella has more than 150 staff and faculty members, making it the second largest employer of artists in the province. In addition, over 300 volunteers assist in a variety of ways, predominantly in fundraising efforts.

While Arts Umbrella has grown steadily to become a world-class art center, technology in general at the organization has been a slow-going process. In the year 2000, Arts Umbrella changed its database system over to Raiser’s Edge, a database used primarily by not-for-profits in the fundraising sector. “Unfortunately,” says Scott Elliott, director of development at Arts Umbrella, “we didn’t have the capacity in-house to run that system properly. And we had no training. So we floundered around, not able to pull any reports out of the database at all.”

Arts Umbrella requires the production and distribution of a variety of reports, but two reports are especially critical – on a weekly basis. One is a forecast report, which summarizes the other report needed: a full listing of who the organization’s canvassers are, who the canvassers’ prospects are, what kinds of funds are expected from these prospects, and so on. Compiling these reports was a difficult, time-consuming process. “I would export pretty much raw numbers from Raiser’s Edge into an Excel file,” says Scott. “And then I’d spend literally days massaging those numbers to get them into some kind of report. I never had any confidence in the finished report. Another problem was that I wasn’t able to correct errors in a quick manner because we were running two systems. Whatever I had in the Excel system, I had to re-input back into Raiser’s Edge. It just wasn’t dynamic at all.”

Because Arts Umbrella had already worked in partnership with the Business Objects Foundation, which funded core curriculum and technology programs for children and youth, the organization had heard about Crystal Reports and its effectiveness within other organizations. “We knew we had to come up with a better solution,” Scott says, “so we began talking to SAP Business Objects about how Crystal Reports could be integrated with Raiser’s Edge.”
Troy Anderson, SAP Business Object’s Group Vice President, Sales: Small – Mid Size Enterprises, attended the organization’s board meetings to understand how the organization approached raising operating funds, and quickly noted the challenge of having to increase their fundraising capacity while also having to predict whether or not they were on track for expected revenue. “My observations were very similar to ones we see [at SAP]”, Troy noted. “Multiple paper copy reports, not tracking the success of different fundraisers, and making sure the data was accurate instead of having conversations about what the data meant.”

Over the next six months, Troy worked with the organization to articulate what there reporting needs are, and then building those reports. “Key people from Arts Umbrella started attending Crystal Reports training,” says Scott, “so we now have in-house experts who know what questions to ask the experts at SAP Business Objects. We learned that good training was absolutely essential to the success of this deployment.”

Today, with Crystal Reports, says Scott, his “fundraising life” has improved significantly. “For example”, he says “we can now better project our annual campaign. We worked with SAP Business Objects to identify the three or four characteristics that, when tracked, are great indicators of the likelihood that a pledge will or will not actually close. This ‘probability formula’ helps us predict – with a high degree of accuracy – who’s going to eventually give and who isn’t.”

This level of reporting, Scott says, allows Arts Umbrella to motivate its canvassers by being able to say, “You have this prospect, and they’re currently at a 10% chance of coming through with their pledge. Here’s what you need to do to move them up to 70%.” So what Crystal Reports has done “very clearly,” says Scott, “is increase our efficiency – not only within our office, but also with our canvassers. We have the tools now to evaluate our situation midpoint, rather than waiting until it’s too late. We can now react quickly as a business and fix things before they become a major problem.” “And just being able to customize our reports,” Scott says, “it is huge – to get our data out and formatted in the way we need it formatted. Reports that used to take hours or days to produce are now available with the click of a mouse.”

For me, this is the key takeaway from this example. It wasn’t just the technology or the people that made a difference here. It was taking the time to listen and really understand the problem and being creative in applying knowledge and expertise from one sector (software sales) to another (fundraising). We have now taken this example and turned it into a case study, made a template project plan and determined technical requirements so that employees around the world can implement a similar solution with non-profits in their region.

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February 10, 2010

Skilled Volunteering – Making the Most of Employee Engagement

Had a call today with two people from a US corporate foundation looking for advice on making best use of their employee skills in the community. This started me thinking more about what we are doing here at SAP so thought I would write about this.

Most corporations these days have foundations to give money to community organizations and most send employees to work at the food bank at Christmas, plant trees on Earth Day and so on. While these are great team activities, companies can often make a larger impact by leveraging the skills of their employees in the community.

Non-profit organizations are often hamstrung by budgetary restrictions and can make great use of skills in IT, finance, marketing, sales, HR and pretty much any other business function. In fact, according to a survey by Taproot Foundation in 2008, 86% of non-profit executives  said it is a top priority for them to improve their organization’s ability to run effectively.

Over the years, we at SAP have had some great success with projects like:

  • Recruiting training
  • IT assessments
  • Business process analysis
  • Database design and integration
  • Board of Directors’ dashboard building
  • Sales and Marketing coaching

There are risks though –  a study from Deloitte in 2006 states that 77% of nonprofits believe skilled volunteers could significantly improve their organization’s business practices, but only 12% have been able to put volunteers to use in that way.

So why this discrepancy? In my experience I have seen three main causes of failed skilled volunteer engagements:

  • Out of control scope
  • Lack of understanding on both sides
  • Unclear and mismatched expectations

At SAP, we have tried to counteract these issues by:

  • Provide project backup and tightly manage scope. Just as with regular consulting engagements, we want to make sure that the project is well defined, roles and responsibilities are understood on both sides and there is a concrete plan. We have created case studies, template project plans and agreements for our most common engagement types.
  • Educating employees on the environment and challenges faced by non-profits. Ensuring our employees understand the cultural differences and approach the project in a respectful way. Just because we come from “business” doesn’t mean we automatically know best!
  • Making sure that employees understand what time is involved and have best practices on how to engage with managers to make that happen [More on this topic in a later post]. On the non-profit side, making sure that we have buy-in from the staff, board and management for the project and commitment to make people available when needed.

More next time on some examples of how SAP employees have volunteered their skills with community organizations. I would be happy to hear from others on their experiences with skills-based volunteer projects – either from the corporate or non-profit side.

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March 20, 2009

Why do first-time online donors not return?

The New York Times reports on a trend with serious implications for both non-profits and the social media/technology firms who advise them.

The study, which include 24 organizations such as CARE and Doctors Without Borders found that

Of those who did make additional gifts after an initial online donation in 2006, according to 12 organizations offering data in January, 37 percent never gave another gift via the Internet

The article posits a few reasons for this including emails getting trapped in spam filters. But I suspect that the real reason is that non-profit organizaiton have still not caught on to the idea of building relationships with donors rather than purely communicating to them. The web provides a new way to engage donors and volunteers over a long time period and non-profits desparately need to implement these solutions.

When the Director of Online Communications at CARE says

“I think what we’re learning is that we need to be less worried about what channels these donors use and offer them a variety of channels through which they can give,”

the missing link is that those channels are not just giving channels but communication channels, engagement channels and conversations channels. With a mindset built around conversation, non-profits can build relationships not just donations.

[Updated Mar 21 with correct link to original article. Thanks for catching this!]

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