“Keeping the faith”:

1. “Keeping the faith”: Addressing the gap between public perceptionand the ‘not-for-profit’ reality. • Amalia Matheson • Nickey Wilson • University of the Sunshine Coast – www.usc.edu.au

2. "John Donaldson. Age 23. Battered as a child, it was always possible that John would turn to drugs. With Barnardo's help, child abuse need not lead to an empty future."

3. Richard Fox | Died: aged 5 Carl White | aged 2 "We are not a commercial organisation that is spuriously attracting attention to shift goods off shop shelves, we are a charity trying to raise awareness of our work, all of which aims to create better and different futures for today's children and young people." - Barnardo's spokesman, Andrew Nebel.

4. Introduction • Examine utilising communication models into practice ... • ...to facilitate openness, transparency and accountability of agencies with the whole of their base-community: ‘keeping the faith’ • The presentation works from the assumption that community misperception due to poor communication can result in an operational crisis for the agency; and will demonstrate the need for issues management through open communication.

5. Australia’s charitable impulse: • The human universal value of the charitable impulse • A gap occurs between the current reality and the desired situation • A belief in a just world causes action

6. 600,000 Australia’s charitable impulse: NGDO = Non Governmental Development Organisations Source: ACFID 2008.

8. Public Scrutiny • Intense scrutiny occurs for not-for-profit organisations, shown in the media • Unsustainable perception gap • Return on investment evaluated • 700 000+ NFPs • Heavily competitive industry – problems with skepticism, apathy, desensitisation, shrinking support yet increasing demand

9. Why? Well, it’s your values... • Complex objectives – driven by ethos, beliefs and constituencies’ needs • Values are the measure for acceptableness of actions • Third sector has a different relationship with the public than do corporate/government the ‘tipping point’ is set lower with greater potential for outrage • Proactive approach to issues management is required; being mindful of values for all communications

10. Your story needs to be told ... • Need for transparency and accountability to battle misconception • Important for “base community” to know how funds are spent • Publically available information • Report things how they are It’s how you tell the story ...

11. Importance of the base community • Relationships with donors has received high levels of attention • A large gap in research of communication with non-donors • NFP organisations represent their base community The Public’s perception is 100% of their reality.

12. Public Policy • Public policy, formulated and then implemented by government, is often a direct result of the pressure of public opinion • Public opinion is therefore a strong influencing factor on the operating environment • Eg – the potential tax reforms • Messages must provide some base of knowledge • It is not only the active public (i.e. donors) that make public policy decisions – but all members of the base community

13. The issues life cycle • Issues develop through stages and have a life or energy seemingly of their own • All issues will resolve or reach a peak • Good management of the issue will determine whether it escalates into a crisis or if there is an amicable reconciliation • Environmental scanning – constantly but not consciously – is essential • Must have your finger on the pulse of society

14. The tax reform situation • Australia is one of the few countries in the world where religious groups are not forced to pay tax on business ventures. • The extent of these tax concessions is estimated that in 2006-07 total concessions, benefits and incentives provided through the tax system to taxpayers and beneficiaries amounted to approximately $50.12 billion.1 • Current Senate Inquiry has potential to impact upon all charities / NGOs 1: Commonwealth of Australia, Tax Expenditures Statement 2007, released 25 January 2008, p. 8

15. Mediation/Amplification Organisation Origin Resolution Opportunity to influence Pressure Period of increasing awareness Potential Emerging Current Crisis Dormant Development over time Source: Hainsworth & Meng The Issues Lifecycle "Any fool can survive a crisis. Its the daily living that wears you out." Anton Chekov

16. Period of increasing awareness Comprehension Origin Resolution Legislative resolution A strong leader champions the issue Stage 3: Public Policy implementation Period of increasing awareness Stage 2: Public Policy Formulation Pressure Stage 1: Public opinion formation Early issue identification Potential Emerging Current Crisis Dormant Time/ Development The public affairs lifecycle MEDIA Adapted from: Hainsworth & Meng

17. Period of increasing awareness Comprehension Origin Resolution Stage 2: Public Policy Formulation Legislative resolution Stage 1: Public opinion formation 27 Nov 2008: Senate inquiry reports 18 June 2008: Senate inquiry into disclosure regimes Stage 3: Public Policy implementation 1995 & 2001: inquiry into definition of charity Pressure 1936: first federal income tax debate re charities 1930: Citizen arrested for petitioning tax privileges 1905: Catholic Church laundry Potential Emerging Current Crisis Dormant Time/ Development The Public Affairs lifecycle re: ‘Inquiry into Disclosure Regimes’ MEDIA Adapted from: Hainsworth & Meng

18. Riding the lifecycle To be a part of the process and not merely subject to it, communicating with ALL publics is essential.

19. LOW INVOLVEMENT HIGH INVOLVEMENT High Knowledge Aware publics Active publics Low Knowledge Inactive publics Aroused publics No Knowledge (and No Involvement)‏ Non-publics NFP’s “base community” segments: Potentially vocal and aggressive Potentially positively influential Potentially volatile Inert Irrelevant Hallahan, K 2000, ‘Inactive publics: the forgotten publics in public relations,’ public relations review, 26(4) (amended by Mahoney, J 2008)‏

20. Public Relations operation NOT-FOR-PROFIT ORGANISATION OPEN AND CLOSED SYSTEMS OF COMMUNICATION: general systems theory mutual, external communication PUBLICS • High Knowledge • Currently vocal, involved, influential • Low knowledge • Potentially active, and influential, need activating • No Knowledge • Currently ignored except as potential donors in crisis; ignored in terms of potential public policy influence Management / Administration Service Delivery Fundraising

21. A proactive approach to communication is essential for the reality of – and the perception of –transparency and accountability Public Affairs (Public Relations): • Focuses on the ‘Goodwill Bank’ through reputation management (not just branding)‏ • Optimises unpaid promotion for credibility • Aims to improve relations – with all publics.

22. LOW INVOLVEMENT HIGH INVOLVEMENT High Knowledge Aware publics Active publics Low Knowledge Inactive publics Aroused publics No Knowledge (and No Involvement)‏ Non-publics Open System approach seeks to re-shape the “base community”: Potentially vocal and aggressive Potentially positively influential Potentially volatile Inert

23. Where do we begin... • The practical approach is to attempt to communicate with each target public using information according to their needs / understanding: • High knowledge → sophisticated message • No knowledge → basic, clear, inclusive messages • High Involvement → ‘riding instructions’ • Low Involvement → an invitation to act or a call to action (break out of inertia).