The current strain on the social sector is real whether you are a small shop run by volunteers or a large multi-million dollar budget organization…or anything in between.

Day after day I see that the organizations faring the best have a high level of “social capital” — meaning they have a vast and committed network of relationships built with people inside and outside the organization. Why this is so important is that the success of the organization doesn’t rely just on a charismatic engaging board chair or executive director but on the value of the whole organization and their networks’ willingness to be involved.

Here’s an excerpt and recap from a great read: “Social Capital” is a Charity’s Best Investment by Shirley Sagawa and Deborah Jospin published in The Chronicle of Philanthropy, November 27, 2009:

Social capital matters because it leads to all other forms of capital that nonprofit groups need to make a difference, including financial, political, and human capital. Attracting resources is far easier if a nonprofit group has a strong network of dependable relationships at the ready.

To build their social capital, charismatic organizations do several things. Study after study finds that people who support nonprofit organizations, whether as donors, volunteers, or staff members, do so because they want to make a difference. Therefore organizations that want to build their social capital must not only work hard to carry out their charitable goals but also be prepared to show their results with hard numbers and engaging stories. Becoming more focused on results and data makes a nonprofit group more, not less, peoplefocused. Telling their stories compellingly makes them all the more attractive.

Second, people want to be part of a community, and they feel a greater sense of community when they are asked to participate in multiple ways. Charismatic organizations build an appealing culture and make it easy for people to become engaged in their cause, not just as donors but also as volunteers, advisers, and advocates.

Nonprofit groups that want to survive the downturn should:

• Ask for something other than money.
• Keep in mind that while donor dollars may be limited, volunteers may offer an embarrassment of riches.
• Make sure they’re getting results.
• Keep a can-do culture.
• Figure out social networking and other new technologies.
• Collaborate with other organizations to expand a charity’s reach and stretch every dollar
• Invest in people.

I recommend using this list to have meaningful discussions with board and staff about how you are not only striving to raise more dollars, but increasing your level of social capital so that the next time you invite your community to take action they do.

Tagged with: annual fundraising, Communication, fundraising community, social capital cultivation