Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012
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This document outlines a comprehensive framework for fundraising and revenue generation in non-profit organizations, highlighting the importance of donor behavior, retention strategies, and various fundraising methods. It emphasizes the need for effective planning, including objectives, budgeting, and strategic audits to assess and optimize fundraising efforts. Additionally, it discusses the evolving landscape of fundraising, including online methods and corporate giving, while underlining the significance of maintaining donor relationships for sustainable success.
Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012
- 1. Sponsored by Fund Raising & Revenue Generation Shifa Soomar
- 2. Agenda Introduction Donor Behaviour Fundraising Planning Framework Methods of Fundraising Direct Response | Online Major Gift | Corporate Importance of Donor Retention The Government & FR in India Revenue Generation
- 3. Introduction to Fundraising Cover Backbone of a non-profit Expenses ‘People give to people to help people’ Relativity of gift size Giving starts at Home Higher Raise Impact Fundraising Awareness Bond with Society
- 4. Donor Behaviour Successful fundraising is the right person asking the right prospect for the right amount for the right project at the right time in the right way. To whom Context or what How Where much How Who When
- 5. Who Gives? Gender Age Education Marital Status Income Employment No. of children Homeownership
- 6. Why They Give? Self Interest Emotions • Self-Esteem • Sympathy Empathy • Atonement for Sins • Recognition • Access to Services • Fear, Pity & Guilt Values • Reciprocation • Social Justice Altruism • In memoriam • Tax
- 7. Reasons for Support Personally asked to contribute Those who have more 21% should give to those who have less 30% To get a tax deduction 7% To fulfill religious obligation Something is owed to the or belief community 20% 22%
- 8. Reasons for Non Support I feel that charities are not deserving 3% In the past, charities have Other not acknowledged my 9% support 4% The quality of services provided by charities to I cannot afford to offer my their donors is poor support to charity 7% 23% I find charity communications inappropriate Charities ask for 12% inappropriate sums 23% The government should fund the work undertaken by charities 19%
- 9. Fundraising Planning Framework Vision/Mission Budget Schedule Organizational Monitoring & Tactical Plans Objectives Control Fundraising Key Strategies Audit Where are we now? Where do we want to be? Fundraising SWOT Analysis Objectives How are we going to get there?
- 10. Vision/Mission Serves as a focus point for fundraisers Reinforces the ‘reason for the fundraiser’s existence’ Powerful motivating factor Useful reference point for potential donors All organisations have a vision/mission: •Some unwritten •Some unstated •Some termed otherwise
- 11. Organizational Objectives What the organisation aims to achieve Finance Applies for the whole organisation Human Resources Service Delivery
- 12. Fundraising Audit Most crucial stage of Planning process PEST Framework Market Study The Fundraising function and its environment Internal and external factors affecting APPROACH organisation’s fundraising ability Competitor Analysis Internal environment
- 13. SWOT Analysis Take only key information from audit Contextualise strengths and weaknesses One step further: SWOT Analyses for each donor segment Internal drawbacks Strengths What are you good at? Weaknesses Barriers to Competitive advantage development Opportunities New audiences, new Potential P,E,S,T Threats techniques Challenges
- 14. Fundraising Objectives Yardstick for measurement of FR performance Base for accountability The amount of funds to be raised The segments of donors from whom these funds will be raised The acceptable costs of raising these funds
- 15. Key Strategies Broad means by which objectives will be achieved Overall Direction Case for Targeting support Elements of Fundraising strategy Branding Positioning Segmenting
- 16. Tactical Plans Finer detailing of strategies Action points to achieve key strategies Large Organisation Small organisation = Customised action =1 Action plan plan for each donor segment
- 17. Budget Easier with experience % of previous year’s donations % of current year’s What can budgeted be afforded donations Approaches Competitor Task matching Method
- 18. Scheduling When will the action points be undertaken? By whom? PERT TOOLS Gantt CPM Chart
- 19. Monitoring & Control Important to keep a constant check on •Costs •Targets •Performance. For effective control, break these down into monthly targets Also, check appropriateness of adopted strategies and tactics
- 20. Assessing Fundraising Performance Cost per Percent Average Average Face Ratio dollar ROI Participation gift size cost per gift raised
- 21. Fundraising Methods Bequest, In Direct Corporate Online Major Gift Memoriam Planned Grant Response Giving & Fundraising Fundraising & Tribute Giving Fundraising Fundraising Fundraising giving
- 22. Direct Response Fundraising Primary Elements Pillars of Direct Response Sufficient Offer Targeting Continuity Information Explicit ‘call to A means of Interaction Control action’ response
- 23. Direct Response Fundraising Key Stages Monitoring, Defining Fulfillment Control and Objectives Appraisal Segmenting Message Media: Targeting Selection and Planning
- 24. Stages of Direct Response Fundraising Objectives Define: From how At what cost many? How Much? How?
- 25. Stages of Direct Response Fundraising Segmentation Cheapest, Hardest, most easiest source expensive source Warm Donors of List of EMGO Lapsed potentials other Cold supporters ’ list nonprofits prospects Targeting: You may have the best campaign/approach, but is it reaching the right people?
- 26. Stages of Direct Response Fundraising Media: Selection & Planning Press & Magazine Direct Mail Free-Standing Inserts Advertising • List Purchase • Placed in • Tried and tested • Test Mailing magazines/newspapers • Works well for • Pack Design • Attractive design emergency causes • Should be suitable for • Provide the problem audience and the solution • Higher effectiveness, but higher costs too
- 27. Stages of Direct Response Fundraising Media: Selection & Planning Direct Dialogue Tele-Fundraising Radio • Face-to-face • Donor Acquisition & • No visual recall • Sites of high foot fall Development • Works well when • Increasing use of • Inhouse or outsourced integrated with other technology • Can be integrated with media • More first-time donors campaigns on various (80% under 30) media
- 28. Stages of Direct Response Fundraising The Message • Content over length • Get to the point Writing Copy • Active over passive • Passion, honesty and conviction • Back of envelope more important than front • Top, Bottom, Middle. Illustration, Typeface & • Handwriting vs printed text Design • Numbers vs words • Don’t forget the P.S.
- 29. Stages of Direct Response Fundraising Fulfillment ‘Back-end’ of a recruitment campaign Acknowledge Answer Honeymoon stage is critical Close the deal Bank
- 30. Stages of Direct Response Fundraising Monitoring, Control & Appraisal Easy to monitor Keep tab on statistics through media owners Performance appraisal based on historic data and across media Be wary of: •Outliers •Ignoring fulfillment costs
- 31. Online Fundraising e-Philanthropy: advocacy, education and fundraising Creation of communities Wider, stronger reach Not ask-give or top-down, but building relationships between the organisation and supporters
- 32. Online Fundraising Characteristics of a successful website Commerce Accessibility Content Accountability Community Education Interaction Empowerment Successful Online strategy
- 33. Online Fundraising E-Fundraising Mix Search Engine Online Opt-in E-mail Marketing Partnerships Online PR Interactive Ads Viral Marketing
- 36. Major Gift fundraising The Communitarian The Devout The Investor Seven faces of Philanthropy The Altruist The Socialite The Repayer The Dynast
- 37. Major Gift fundraising Major Gift Development Process Identify & Evolve Strategise Engage Focus Strategy Continued Acknowledge Ask Assign ‘ask’ engagement Renewal
- 38. Corporate Giving and Fundraising Why do Corporations give? Corporate Ethical Political Stakeholder productivity Reasons Influence Satisfaction
- 39. Corporate Giving and Fundraising Forms of Support: Donations of Donation of Donations of Cash Donations products/servic employees’ stocks & shares es time Employee Workplace Publicity Events Matching Gifts collections Group Employee Workplace Sponsorship Presentations Fundraising giving
- 40. Corporate Giving and Fundraising Selecting the Right Organisation Profitability Turnover Longevity Country of Nature of Business Sector ownership Shreholding Fit can be analysed Potential Fit through values, brand and objectives
- 41. Corporate Giving and Fundraising Benefits Drawbacks Increase in Larger volunteer ‘Selling out’ amount and base Exclusivity stability in revenue concern Increased Wider reach for Access to Credit on awareness donor acquisition non-profit’s collateral database Ability to leverage knowledge of corporate entity
- 42. Importance of Donor Retention ‘Customer Service’ aspect of Fundraising For every $6 raised through new donors, 5$ are lost through leakage of existing donor base Fix the leaky bucket before pouring more water into it Easier, Cheaper to retain than acquire Strengthen while Expanding
- 43. Importance of Donor Retention HOW TO MAKE YOUR DONORS STAY Keep your donors informed: Make them feel important: Timely gift Donor Recognition Newsletters Annual Reports acknowledgements (plaques/certificates) (email/telephone) Donor Milestone Preference & Invitation to Understand the Correspondence Permission based Events motivation Personalized Communication
- 44. The Government & Fundraising in India FCRA Act Recently thousands of registrations cancelled Service Tax Providing education to children considered a service TRAI Regulations Charities not exempt from ‘DND’ Rule No Infrastructure support ‘Bill Mail Service’ for commercial companies, but not nonprofits Tax Exemption Sec 80G, but no ‘Gift Aid’
- 45. Emergence of Revenue Generation Social enterprises apply business solutions to social problems. Ultimate goal: achieve sustainability Generation of: •Social value (measurable impact) •Economic value (revenue).
- 46. Integration Models • The enterprise and the social program are one and the same Embedded • The business is created to serve clients (central to the mission) • The business activities overlap with the social programs Integrated • The business is created as a funding mechanism and to expand/enhance the mission of the organization • Social and business activities are separate and may or may not be related to the mission of the organization External • The business is created mainly as a funding mechanism to support social activities
- 47. Hybrid Organisations Primarily pursue a social mission but high reliance on commercial revenue Reasons for popularity: •Less dependency on donations and subsidies •Creating sustainable financial models Traditionally existed in job training, health care, and microcredit. Recently in environmental services, consulting, retail, consumer products, catering, and information technology.
- 48. Hybrid Organisations Challenges of the Hybrid Structure: Legal Financing Structure Organizational Customers & Culture and Beneficiaries Talent Development
- 49. Key Factors for a Successful Social Enterprise Good fit Industry Realistic Knowledge expectations Consider it a Hire Right business
- 50. Perfect Pitch What do you want? Give Create Get the Connect Information Awareness Money
- 51. Perfect Pitch Elements of the Pitch Introduction What you Who you want are Why you Who you are serve important
- 52. Corporate Giving and Fundraising Delivery Technique Opener Memorable Phrase The Ask
- 53. Perfect Pitch