[News] Communicating Loss Avoidance to Encourage Change and other Nonprofit and Leadership News

Leadership and Fundraising News Roundup

news-roundupIt turns out, people are motivated more by loss than they are by vision or something we’ll gain. So many change initiatives focus on the vision, while what many people need is help seeing how the change will help avoid a future loss. The Harvard Business Review article included in this week’s roundup covers that, as well as conformity and the role that plays in .

Is there a system you’re trying to change? Thinking through potential losses (loss of competitiveness for your nonprofit or business by not changing, loss of jobs) and determining how to communicate that (in addition to the vision of course) can help your chances of success.

Forgiveness does not change the past, but it does enlarge the future. – Paul Boese

Leadership and Nonprofit News Roundup


canstockphoto7867487How Loss Aversion and Conformity Threaten Organizational Change | Harvard Business Review
To achieve true transformational change, CEOs must have more than a strategic plan. To effect actual change, they need to understand how biases — their own, and their employees’ — can shape behaviors and decisions, and prevent them from achieving what they set out to achieve. CEOs need to be especially aware of how the subtle forces of bias can operate in our subconscious and influence our choices.  This author looks at the two he sees most often: loss aversion and conformity.

The Urban Institute analyzes changes in nonprofit organizations’ gross receipts | Urban Institute
The Urban Institute analyzes changes in nonprofit organizations’ gross receipts (or the funds received from all sources in a fiscal year) to track the sector’s growth and decline. In 2014, the most recent year for which we have data, 36 percent of public charities grew financially by more than 10 percent over the previous year. About 28 percent saw their gross receipts decline—falling more than 10 percent from 2013 to 2014. But the national picture can only tell us so much. The sector is diverse and local context matters, which is why this interactive tool allows you to slice the data by city, state, and nonprofit type.

Creating Board Member Income Heroes | Karen Eber Davis Consulting
Board member income heroes are created, not born. Hero creation is developmental. At some point in the past, even the best income heroes suggested garage sales and contacting Warren Buffet. What happen to change them? Someone like you taught them. To create income board heroes, you help ordinary people to take intentional steps toward heroism.

FPThe Monthly-Donor-After-Ask… | A Direct Solution
Say, you’re an advocacy organization and you do ask people to sign your petition. Did you know that you can use the auto-responder after they signed the petition not only to share the petition with others? You can also use that opportunity to ask petition signers to consider making a small donation each month. All you need is a short reference to this option and a link straight to your monthly donor page. You’ve just converted prospects to sustaining donors!

New Report Explores Implications of Growth of “Top Heavy Philanthropy” | Nonprofit Quarterly
Yes, overall giving rose in 2015 to more than $373 billion, a 10 percent increase since 2013, but does this trend mirror your own budget? While even for social service agencies the 80-20 fundraising rule is likely a quaint memory (for most, it’s edging beyond 90-10), what causes are catching the attention of the billionaire class? What implications does this study have on your annual fundraising plan? Even those that do have the elite wealthy among their donors and/or presiding on their boards have no guarantees the money will be there when times get tough, as the Big Apple Circus is experiencing these days.

THANKS(for)GIVING: 9 Mistakes Nonprofits Make Thanking Donors | Clairification
After you’ve sent out your appeal is too late to start thinking about what your thank you letter or email will say. Or who will sign it. Or whether someone who donates online will also receive an actual letter. Or thank you call. Or who will make the call. Everything must be well thought-out in advance. You must be ready to go, with different templates and strategies for different target audiences, well before you’ve asked for your first donation.

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