FBO – Why charities need it

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There are an estimated 85,000 charities in Canada, 180,000 in the UK, and 1.1 million in the US.

(Pause for gasp)

That’s not even factoring in the various other not-for-profits and causes that although they may not issue tax receipts, are still a destination for donors.

So…the big question. Why should anyone give to you?

You can’t compete only on:

  • Product (your cause)
  • Service (how you treat people)
  • Loyalty (how much people like you)

  • Why not? Because these things can be replicated and built by others. In this free market, openly competitive charitable world, when something is seen as successful, originators may win in the early stages, but imitators gravitate to your success. Unless there are real barriers to entry, they can do the same thing that you’re doing.

    So your differentiation factor, the unique space you occupy where there’s no room for anyone else, is the one thing you can use to stand out and get people to pay attention.

    If you don’t differentiate, you end up competing on…price.

    In the charitable sector, this could be seen as competing on administrative costs. As we know, in isolation, this is usually a weak indicator of how well an organization is doing. It also doesn’t connect someone strongly to you when a “cheaper” charity comes along.

    Guess what – it’s our fault.

    If donors want to keep comparing charities based on something like administrative costs, it’s because we haven’t given them something else to talk about. If you’re not different from anyone else, then what’s interesting about you?

    So what do you need to do? Find your FBO.

    Figure out what you do where you are the first, best and only. That’s your differentiation factor.

    First = longevity and trust.

    Best = credibility and confidence.

    Only = exclusivity and pride.

    Then find a way to build this into your branding, communications and organizational soul. More importantly, talk about what it means for people considering getting involved. (Plus gentle reminders to those that already are!)

    One caveat – this must be tempered with ensuring your donor and volunteer communications are focused on their role as the hero in the story. FBO is only for those rare moments when you are talking about yourself. By the way, also stop asking for money. Instead, start conversations.

    FBO – think about it. Then find it and use it! It’s the best shot you have in standing out in a sea of same.

    Thanks to Krishan Mehta for first introducing me to this concept and to Tim Rooney for his wisdom about the importance and mechanics of differentiation.

    Constant Questions: As an individual, what is your first, best and only? How about your organization or charity? Did you think that FBO was a typo and I meant FBI? If you’re worried about the FBI, what for? Something you need to share with us? Maybe this blog isn’t the best place – it’s a public space and I don’t want it to get virtual cyber yellow tape wrapped around it!