How do you measure influence in the nonprofit world?

I’ve become intrigued with the concept of influence  - perhaps because of the “buzz” about influence on Twitter with Klout, PeerIndex, as well as other measurements.  Or perhaps because of what’s going on in the Middle East.  Or perhaps it’s because I’m just compelled by the idea that nonprofits can be influential in their communities.

But what is influence and how does one measure it?   

Beth Kanter, someone who’s thought a lot about the issue of influence on Twitter and other social media networks, was one of the first to shout that numbers – the following of the masses – does not equal influence.  In a blog from back in 2009 she states: “…there’s more to influence besides numbers, there is also affinity.”  She summarizes her argument, advising: “don't get distracted by meaningless metrics like the number of followers, and value the relationships.”  And I agree with her – it’s about relationships and value.

If influence is about relationships – how does one measure these?  I suggest thinking beyond the communities served by an organization and including the communities in which nonprofits operate, as well as other communities, such as funders, donors, and businesses or the public at large. 

I would argue that the most influential nonprofits are those whose reach far exceeds their “designated” constituency.  For national examples, I’m thinking of the Susan G. Komen Foundation "For the Cure", which has spawned fabulous pink-glove videos as well as walks and events all over the U.S., touching well beyond its “designated” constituency. 

I’m thinking, for example, of the Special Olympics, which offers inspiration to many more than just the athletes who compete, or their families.  I'm thinking of UNICEF, which not only helps those whose funds it serves but which also taught a generation how to ask for donations (remember those orange boxes of change at Halloween?). 

There are many others that have pierced the national culture in ways we all recognize.  And there are those that have similarly pierced their local communities.  

How would you measure influence in the nonprofit world?  

Teaching Nonprofit Leaders is Big Business... Show me the Money!

Have you noticed how many organizations promise to “teach leadership skills” to nonprofits?  They’re jumping on a great trend.  Nonprofits are losing their babyboomer leaders to retirement in droves – now and in the next ten years.  So there’s a real, a perceived, and a future “gap” in leadership for the social sector.

How do we fill the leadership “gap?”  Since there wasn’t funding, planning, or vision to do much in the way of succession-planning in this sector, there’s a scramble going on to either recruit older “for-profit” leaders to try their hand in nonprofits. Or there’s the idea that newer, younger professionals can be taught the skills they need.

That’s where the business of “teaching nonprofit leaders” comes in.  There’s quite a few of them – just google it.  HBS has jumped in with both feet.  Peter Drucker has joined in.  Others, especially in D.C., where nonprofits are prolific, are in the fray.

What I want to know is – where are the results?  Who are the successful graduates?  What are the “benchmarks” for these great schools and leadership programs?  Show me the money! 

What have these leaders gone off and done after these training sessions?  What successes can be attributed to what they learned?  Skills they picked up?  Networking they did or learned to do? 

Don’t get me wrong – as someone with more education than I ever needed I’m all for training and believe in it fervently.  I even do it myself!  I’d just like to have some of these “schools” and programs tracking the success of their graduates – the way other institutions do. 

The Sunny Side of the Tax Law

A recent New York Times article, Tax Cut Deal Could Benefit Charities, illustrates how nonprofits can benefit from recent changes to the tax law.  Though the changes have been called “tax cuts for the rich,” there are some gift-and-estate tax advantages that personal wealth advisors see as a way to direct more funds to nonprofits. 

With regard to gift and estate taxes, the new law exempts donations of $5 million per person.  As the article points out, this means a couple is now able to give or bequeath up to $10 million in any combination of assets “tax-free.” 

Why is this good news? Because estate planning and donations made through wills is strong.  Statistics have shown that while 8% of those individuals who die every year leave funds to nonprofits, double that number - 16% - who do estate planning, plan to leave funds for their favorite charities.

The math of the interest stream from these assets can often add up to significant amounts.  In addition, for assets held long-term for a nonprofit, to provide an ongoing asset stream for others (perhaps an older living relative), the final capital amount can also be substantial.  

What can nonprofits do to be proactive about this?  Reach out to their wealthier donors and talk to them about estate planning.  Show how they are currently good stewards of the dollars they are receiving.  Illustrate how they are thinking about and planning for the future, also.  Give donors a reason to be passionate about their future, too. 

One Toolkit for 14 Different Flavors

The Center for What Works has joined forces with The Urban Institute to “provide the first sector-wide framework for nonprofit program outcomes and indicators for success.”  This framework, they say, is to help nonprofit users to “identify and measure common program outcomes to benchmark and improve.”  

It’s called the “Nonprofit Effectiveness Toolkit” (details at www.whatworks.org).  And although it’s not all that elegant – kind of kludgy, actually, because it is customized and therefore not one-size-fits-all – it looks as though they’re onto something here. 

They’ve come up with 14 different program areas you, as a nonprofit, can categorize yourself into, ranging from Adult Education to Emergency Shelters to Performing Arts to Youth Mentoring and Tutoring.  Makes sense – since there are so many nonprofits with such varying missions.

The “toolkit” consists of webinars, phone consultations, and an action plan that they help you to create (through the phone consults).  Custom-tailoring, so to speak. 

It’s a good idea – part standardization and benchmarking, part customized buckets and missions.  We look forward to seeing how successfully it works for the participants.  Does it help them with funders?  Does it help them stay on-task with their missions?  Keep us in the loop!