Fill in the Blanks

I still have this letter written by Thomas A. McLaughlin that appeared in the October 1, 2007 edition of The NonProfit Times. It seems relevant to the discussion of "warm or competent," so I am sharing it.

It is a well-constructed form letter for the leader of a nonprofit organization to send to the leader of a for-profit organization after having a conversation about the importance of the nonprofit organization "to act more like a business and to become more efficient."

It attempts to explain the differences between how and why for-profit and nonprofit organizations exist and operate. It can be taken at face value or somewhat tongue-in-cheek, depending on your perspective.

Image Credit: Thomas A. McLaughlin, The NonProfit Times, October 1, 2007

Thoughts on "Warm or Competent?"

This image is from the study "Non-Profits Are Seen as Warm and For Profits as Competent: Firm Stereotypes Matter" that the article "'Warm' or 'Competent?' What Happens When Consumers Stereotype Nonprofit and For-profit Firms" is based upon.

It illustrates that the perception of competence in for-profit organizations leads more directly to the willingness to buy (from) for-profit organizations. The willingness to buy (or let's say, donate to) nonprofit organizations takes a different path. The perception of warmth must be coupled with admiration for people to be willing to donate to or support nonprofit organizations.

This can lead to serious roadblocks for nonprofit organizations if not addressed.

Based on this research, the key to the coupling of warmth and admiration that translates into competence for a nonprofit organization can come with an endorsement from a highly credible outside source. Researchers used The Wall Street Journal as an example that seemed to prove this point. It could also be accomplished by linking the nonprofit organization with state-of-the-art products, "rigorous research and data-driven approaches."

One thing is clear: nonprofit organizations must act warm and appear competent to achieve their missions and attract the right mix of donors and constituents.

Image Credit: "http://knowledge.wharton.upenn.edu/papers/download/020410_Firm_Stereotypes_Matter.pdf)