Playing the Not-for-Profit Prophet

I have been following a really interesting discussion on the CSAE Conference Group on LinkedIn over the past few days.  Bud Crouch, who will be leading the 2009 Governance Summit, asked association professionals to weigh in on what they think associations will look like five-to-six years from now.  His own thoughts (which I think are pretty spot-on) can be found in this article.

I thought it would be fun to play the not-for-profit prophet for a moment and weigh in on what I think a successful association will look like in the not-so-distant future. 

So here’s my take:  I think that while tactics will evolve and achieving success will become more of a challenge than ever before, the things that will take an association to the top and keep it there will be the same as what they are now:  In my version of the future, differentiation, innovation, value and engagement will continue to be the factors that make or break not-for-profits of all shapes and sizes. 

While the basic rules will remain the same, I agree wholeheartedly that the game is changing.  Based on what I’ve been seeing and hearing, here is how I think things might evolve:

Customized Membership

Associations will have to battle ever-harder for a shrinking number of members in the face of competition from other associations, online networks and resources, and private sector providers.   The survivors will be those who are truly able to stand out from the crowd by being able to deliver value in a world where the term means something different to each member. In order to provide a unique experience that members can’t replicate elsewhere, membership and all that it involves will become more customizable. 

New Revenue Models

The increased competition from the sources mentioned above, particularly from the internet and social media are allowing people to access networks and resources without having to pay a membership fee. Associations will increasingly have to give away for free a lot of what they have until now leaned on as their main sources of revenue.  Some real outside-of-the-box thinking will be needed to help associations figure out how to generate enough revenue to continue with their mandates.

Flatter, Less Hierarchical Structures

The key to achieving differentiation will be in the hands of associations that do more than just pay lip service to the term “putting members in the driver’s seat.”   

In the for-profit world, the traditional organizational structure looks a lot like a triangle with the company leadership at the top and the customers at the bottom.  In the not-for-profit sector, this triangle should be turned on its head because the members are the de-facto owners of the association (associations can’t exist without their members).  The reality is that many of today’s not-for-profits continue to imitate the for-profit environment and adopt a top-down governance approach.

The democratic and transparent nature of tools like social media will help to tear these traditional structures apart.  Jeff Decagna in this very relevant session at ASAE over the summer suggested that association ‘leaders’ will become the stewards or caretakers of their associations and that governance will go from being inside-out to “outside-in.”

As an extension to his, I would add that members truly will become the leaders of their associations and dictate in a more direct way than ever before what the association is, where it is headed and what its priorities will be. 

Evolution of Volunteerism…and Engagement

Volunteerism has been on the decline for awhile now.  The reality is that people are busier than ever before and have more things competing for their time.  Bud Crouch suggests that volunteerism in the future should address these challenges by being “fast, flexible, focused and fun.” 

I would add that social media will be a great tool for the innovative association looking to achieve the above.  Beyond this, I also think the markedly ‘un-linear’ and transparent nature of this medium has real potential to help boost engagement among all stakeholder groups, from members and volunteers to staff, board members and donors.

Transparency Will No Longer Be An Option

As social media moves more into the foreground, non-transparency just won’t be an option anymore.  When associations mess up, they will have to face the music.  If you haven’t followed the Kiva.com saga, this charity is a great example of how social media makes this happen.  Here’s an article on the debate from the New York Times.

The Great Age Divide

The baby boomer generation is retiring and this will continue to have a significant impact on not-for-profits.  All of the stakeholder groups will start looking a lot younger - from association staff, board members to volunteers and donors. 

Helping members to attract ‘young blood’ to their industries, adjusting to the new leadership styles of a younger generation, and finding ways to transfer tacit knowledge between seasoned executives and young leaders are just some of the challenges associations will face in this arena.

So What Say You?

I've given my two cents, now it’s your turn!  Put yourself in the shoes of the all-knowing Prophet to Not-for-Profits for a moment. Look into your crystal ball and let us know what you see!

Comments

[Jeff Hurt]

Great thoughts CaroleAnne and I agree with everything you wrote!

In addition to what you wrote, I would add the following.

Customized co-created, stellar content for member-only consumption
I think nonprofits will have to begin to provide exceptional, unique, provocative content for its members. Not something members have to pay extra dollars to get but something that is exclusive to membership only. Members already pay a membership fee and they want to returns from it. That content must be beyond the typical 101 and 201 levels of instruction. The free content distributed to all can be at the 101 or 201 levels but in order to keep members and show value, the association will have to provide deep, high-quality content. And they'll have to provide many opportunities for members to engage in analysis, debate, and co-creation of knowledge with that content.

Unique Face-To-Face and Digital Experiences
Every touchpoint with a member will have to be viewed under the lens of "Is this adding value to our membership community experience or detracting from it?" Members won’t put up with ongoing emails asking for donations. They’ll want emails and social interaction that provides unique experiences all year long. And nonprofits that can frame those experiences with the thought of building and maintaining rich relationships will succeed. It’s time to return to basics and view all of the nonprofit’s annual experiences as an opportunity to engage a community with a mission.

A New Breed Of Members With Limited Dollar Mindsets
While many claim the Great Recession is over, I believe that nonprofits will feel its impact for another 12-18 months as they are traditionally laggards behind the economy. I also believe the Great Recession has created some consumer habits that will stick for a long time such as steadfast frugalists, penny-pinchers and pragmatic spenders.

Micro-Volunteerism
Those that choose to become members will be looking for ways they can contribute to the organization and the mission. Due to the demands on their time and money, they'll look for short-bursts of volunteer opportunities--micro-volunteering if you will. They'll take a half day off work to assist with stuffing envelopes or building a house—but they want those opportunities to feel like unique experiences--not grunt work the staff refuses to do. Also, they don't want to commit to a full year's of meetings or long-term projects.

I also think we'll see the rise of mergers and acquisitions of many nonprofits as well as those that close their doors because they're unable to be nimble, change on a dime and find alternative revenue streams. That's just some of my thoughts off the top of my head. Hey, I just wrote a blog post. H-m-m.

[Carol-Anne Moutinho]

@jeff: blog post indeed! Wow, I'm impressed and thank you very much for adding such depth to this discussion.

You hit close to my heart when you talked about co-creation and I think you are right in suggesting it will be one of the keys to providing that elusive added value and uniqueness associations will need in order to survive and thrive over the next few years.

To add to your second point, I think that as the importance of relationship building and engagement comes to the forefront, associations and all organizations for that matter will need to change tact considerably by putting the 'sell' or the 'ask' in the background. This will come as a result of stakeholders who feel connected and engaged with the organization.

I also think you are probably right about the lagging effects on members and on the less nible associations undergoing a period of merger and acquisition. In Canada at least, I am hopeful that the not-for-profit sector comes out of this a little less unscathed than you predict - I certainly think we will also see a lagging effect up here and probably a 'u-shaped' recovery (gradual) but perhaps not as prolonged as some of the other countries that have been hit by this crises.

[Ellis Carter]

Wow! Insightful comments here.

I would only add that while Associations are seeing more organizations competing for their membership's time, attention and support, I believe that in the future, the nonprofits that find ways to engage not only with their members and donors, but with other nonprofits and other community stakeholders striving to achieve the same breakthrough goals will prosper. Those that cordon themselves into silos and hunker down to compete will quickly find the world has passed them by. The emphasis should be on achieving the breakthrough goals in support of the organization's mission. Associations that keep their eye on that prize will continue to succeed.

[Carol-Anne Moutinho]

@Ellis - thank you for joining the conversation! I agree with your thoughtful comments related to collaboration.I think that knocking down silos to share and synergize is something that will become more prevalent among not-for-profit and private sector organizations alike in the years to come. Collaboration not only has the potential to give associations an advantage in terms of economies of scope and scale, but combining forces can lead to the type of sharing of ideas that breeds the true innovation associations will need to thrive in the future.