Social media key to surviving the recession
By Karl Quirino - Convergent Digital Solutions Ltd.,
What Is At Stake?
A Statistics New Zealand report published in 2005 revealed that non-profit organisations and their volunteers contributed a massive NZ$6.95 billion to the New Zealand economy. The data used to complete that report was sourced from the Non-Profit Satellite Account, which was the most recent year for which any comprehensive information about the subject was available.
The report revealed that non-profit organisations and the unpaid labour given to them in 2004 equated to 4.9% of New ZealandÕs gross domestic product (GDP) at a market rate. The report also showed that there were 97,000 non-profit organisations operating in New Zealand as of October 2005.
At the time, more than one million New Zealanders volunteered for these organisations and worked extremely hard. Kiwi volunteers worked an average of 5.1 hours per week compared with 3.2 hours in Australia and 3.1 hours in Canada.
"Non-profits make a huge contribution to New Zealand's economic and social well-being", Statistics NZ Minister Clayton Cosgrove said. The success or failure of non-profit organisations relies on the hard work of its leaders, employees and the dedication of volunteers. "The government has an important stake to encourage and support the sector", he added.
But now that world recession has reached our doorstep and is reeling downwards on its spiral, it is becoming increasingly clear that contributions which the non-profit sector can make - as it has for New Zealand's economy in previous years - will just as quickly dissipate unless a significant number of them take a long look at planning for their own self-sustainability, development, delivery of social services and programmes.
Back To The Future
The current economic environment is here to stay with us for a long while. It is going to be a deep and painful for most. It will be a time when the leadership of governments, business, households and social service organisations around the world will be put to the test.
Today, everyone is hurting in one way or another and our Government is not exempted from that either. When you honestly look at it, the new Government and the non-profit sector are facing some of the same challenges - shrinking income, increasing demand, and everyone hoping that someone will save the world.
The Hon. John Key, Prime Minster, made the following key remarks during his 18 March speech at Philanthropy New Zealand's Annual Conference this year:
"Two years ago, and just after I became Leader of the Opposition, I gave a speech at Burnside in Christchurch. I spoke about how I want to promote a culture of generosity and giving, and how the Government needs to get behind the community and voluntary groups that make a real difference in our communities. I said I didn't think 'more government' is the solution to every problem - there is no magic lever the Government can pull to suddenly turn our economy around.
"The government provides a huge amount of funding to the voluntary and community sector - but we do this as a purchaser or funder of services, not as a giver of last resort. As the downturn bites, we are expecting to pay more in unemployment benefits, and we do expect demand for these services will grow, but the fiscal constraints we face mean there is not going to be a lot more money available.
"Our challenge is the same one we face right across government. The age of expanding budgets is over. We need to do more with the resources we have. Like you, we need to prioritise and we need to make choices. We need to tackle our problems with greater creativity and ingenuity.
"We can advocate for a culture of generosity. We can ask people to think about those who are worse off than themselves. And we can encourage them to give. But we cannot do this alone. If we are to build a culture of generosity and giving in the country, the message canÕt just come from the government.
Web-based technology presents another huge opportunity. There are, by some estimates, close to 100,000 non-profit organisations in New Zealand. That's an almost baffling array of causes and organisations. It makes sense to use the web to help people get better information about these causes and ways to support them, and it's good to see the non-government sector leading the way."
Prime Minister John Key couldn't have been more apt when he remarked that web-based technology presents another huge opportunity for nonprofit organisations during these trying economic times.
The Trigger That Creates Potency
During these times of stress one of the essential keys to survival for non-profit organisations today is really just having enough clarity of thinking to embrace a new approach. It involves one that widens their support base by creating a strong sense of community, mutual support and one which effectively makes use of technology -- technology that helps build capabilities to influence, mobilise, fundraise and attract other types of support in ways that may not have been imagined. And, it's sustainable.
If you're asking yourself today how your non-profit organisation can survive this recession and how it can effectively build a capability to gain access to scarce financial resources and supporters, then the answer to those two questions is - invest in social media.
Working Smarter, Not Harder
People don't decide who to give on the basis of facts and ratios. They decide who to give based on the causes they care about or the charity brands they have heard of and trust. Websites cost money to design, build and maintain. If you don't engage people inside and outside your non-profit organisation in conversation who can supply your needs, someone else will. Reach out. Start talking.
Word of mouth on the Web is the fastest and most influential promotion there is today. When a message resonates with someone and they pass it on to a group of friends within minutes it can reach thousands of people. That's why conversations and stories matter. If your organisation can create an online message that is both compelling enough to spread, but also firmly supports your charity brand's values and objectives, you'll have a winner on your hands.
Smart leaders of charities, schools and other non-profit organisations realise that this is the absolute worst time to stop communicating with current and future supporters about their good work. While troubled times won't last forever, social service organisations that do the best job of staying in touch now will be best-positioned when the dollars start flowing again.
A Tremendous Opportunity Awaits
The social web has been a fantastic place for charities, schools and other non-profit organisations to harness the long tail of giving. High levels of participation and donor/fundraiser engagement in the U.K., Canada, Australia, the U.S. and New Zealand suggest that online giving is growing.
What's more, "small-dollar" philanthropy has the potential of reaching its tipping point as an effective way to raise funds and bring new people to the table as it is for bigger ticket items that take much longer to cultivate.
Learn more about how the author and his company, Convergent Digital Solutions Ltd. (http://www.convergentdigital.co.nz/), empower nonprofits with Web 2.0 solutions that work. Also visit WordPress for other articles written about social media for non-profits in New Zealand.
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