2. Why is Legitimacy necessary? ‘ Resourcing Nonprofits’ Master Class Monday 8 th March 2004 Presented by Siobhán McGee

3. Outcome of session to leave you with more questions than you have now or…… to leave you confused on a higher plane

4. Legitimacy ‘A generalised perception or assumption that the actions of an entity are desirable, proper or appropriate within some socially constructed system of norms, values, beliefs and definitions’ Suchman, 1995: 574

5. Legitimacy Process of Justification Need/cause is deemed legitimate and appropriate for the society. Alignment / Congruence with values and Process of Conformity ‘Right to exist’, fit within society – credibility (endorsers, board, implied by media coverage)

6. Legitimacy How do we choose whom we support? –Awareness –Alignment with core values –Accessibility –Focus – can’t do everything

7. 7 + or - 2

8. Short Cuts Similar to meeting a person for the first time… 30 seconds Based on further exposure we may review original opinion

9. Why NFPs need Legitimacy Once ‘accepted’… Generally little direct interaction with NFP Communication mainly controlled by NFP Decision rarely reviewed until need to take action arises

10. Why NFPs need Legitimacy It’s a licence to trade based on Institutional acceptability Perceived competence to deliver

11. Short Cuts? Which charity is more deserving of support? Charity A - 90% administration costs 10% on ‘the cause’ Charity B - 10% administration costs 90% on ‘the cause’

12. Leveraging Legitimacy Legitimacy = Resources = ?Accountability Four Cs of influence/power Cash – donors (public/government) Clout – board/patrons/media/opinion leaders (i.e. Geldof, Bono) / Academics Connections – board/patrons/management Class – (intellect) board/management/staff

13. Relative Power of Stakeholders – Governments – Corporations – Public – Beneficiaries

14. Dilemmas/Choices for Managers Managing the balance between stakeholders needs… –Fyffes/Fair Trade –Nestle/IFRC

15. Dilemmas/Choices for Managers Politics and Power NFPs deliver government policy – can they challenge the government? One in Four An Taisce / Carrickmines Castle

16. Dilemmas/Choices for Managers Use of celebrities e.g. Jordan ? Legitimate or too high risk?

17. So what do we do with it? Marketing vs. Legitimacy - is it legitimate if exploitative images are used in ads? Shocking images can gain attention, but is it sustainable or a turn-off?

18. Brand as representation of Legitimacy Protecting/Growing/Developing the brand? Trócaire: Working for a just world… Lifeboats

19. More questions than answers… Charity A or Charity B Is it the right question? Still an easy choice to make?