Thinking Ahead Developing sustainable income streams

Thinking Ahead

Developing sustainable income streams

• Worried about where your next funding will come from?• 5 foolproof ways to improve your chances of funding

• Anxious about writing reports for your funder?• 6 key tips to writing reports, even when you have poor

data

• Finding it difficult to connect with new donors?• 10 failsafe ways to reach new donors

• If these matters are worrying you then get your free resources by sending me an e mail

• mikeb@mcrcommunitycentral.org

• make the subject line ‘free resources’

A strategy based on a single income stream is always going to fail one day.

What is your strategy

• Income analysis- where does your income come from. What proportion of your income comes from contracts, trading , trusts and foundations, donations

• The rule of Thirds. No more than a third of your income should come from one source

Sources of funding

• Government.• Grant-making

organisations.• Companies.• Individuals.• Trading + fees.• Events.• Internet and Social

Media

Six fundraising techniques that work!

Major donor fundraisingEventsFoundation applicationsCorporate donationsMembershipLegacies

How funding is divided.

• General public giving and Lottery= 38%

• Statutory agencies=36%

• Voluntary Sector grant making trusts=8%

• Commercial sector =6%

• Trading and investments=12%

Return on investment

• Have you thought about how you raise funds?• Raising funds from trust and foundations offers a

return of 1:9• From corporate donors its a return of 1:8• From legacies its a return of 1:36• From individual donors its a return of 1:1.5 at worst

and at best its a return of 1:2.5

• What is your fundraising strategy?

Foundation Applications

• Research the funder• Follow the guidelines• Write a log-frame• Apply in time• Monitor & evaluate• Report back• Apply again• Create a relationship

What we know about the rejection rates.• For almost all 2 stage applications there

is an 80% rejection rate at first stage.

• Second stage the rejection is 50%

• In other words 90 % of applications are failing!

• For Big Lottery Reaching Communities the rejection rate is currently 94%

What’s your income strategy?

You are competing for funds

• In England and Wales there are 162,000 registered charities

• In England and Wales there are 647,000 charitable organisation

• The sector attracts £52 billion funding each year(£11billion from the public, about 20%)

• How much did you get?

Source: Directory of Social Change/ NCVO/Charities Aid Foundation

If no one has heard of you no one is going to give to you…

Charitable giving

• Figures released in December 2011, show that in the year (2010/11) the UK public gave £11.0 billion to charity. 

• 1.1 million people donated money to charity, who hadn’t previously donated. However, the average (median) amount given per month fell from £12 in 2009/10 to £11 in 2010/11. 

• How much did you get?

Who donates?

• Women aged 45-64 years are the most likely to give and give the most (typical average/median amount £20 per month).

• Those aged 16-24 years are the least likely to give.

• Who are you asking for money from?• Who is giving you money?• Are you asking for gift aid?

What about new technologies

• There are 12 million smart phones in use in the UK in December 2011

• Another 2 million were forecast to be sold at Christmas

• If 1% of all the texts sent in the UK were converted to a £1.50 donation the charity sector would raise £1.5 billion pounds

Can we afford to ignore this?

Why use the new technologies• Over 34million, 16 – 65 year olds in the UK

own a mobile phone, people for you to potentially reach to help raise money for your cause, so what are you waiting for!

• In December 2010, for the first time consumers spent more with debit cards than cash.( How much cash do you have in your pocket?)

Charities who use online funding, raise 6 times more than those who don’t

Its not rocket science!

• Technology is a tool to build relationships.• Understand the technology and its limitations.• Develop a strategy• Here is why you should........

• 83% of the UK use the internet. That’s over 51 million people!¹

• ... and there’s another 2 billion worldwide.¹ • That’s a lot of people... and it’s still growing.

In 2010 there was a 14% increase in users worldwide.²

• 56% of UK adults have given to charity (2009/10), that’s 28.4 million UK adults.

• But 58% of people shop online

The average offline donation is £15.¹

• The average online donation is £30.¹

• ... however this rises to £54 when donors are targeted more specifically.¹

• ¹ Race Online 2012 Survive & Thrive casebook

• 1 in 5 emails from non-profits get opened¹

• ...with 3.4% generating a click.¹

• But if fundraising emails are sent from your friends, then the open rate is 90%

• ...and 1 in 4 lead to a donation!

• Source MailChimp

• 46% of the UK is on Facebook...¹

• ...and represents 7% of all UK time spent online.¹

• It has more than 750 million users worldwide...²

• ... that’s more than 10% of the worlds population.

• 48% of 18 - 35 yr olds check Facebook when they wake up.³

¹ Uk Online Measurement (UKOM) , ² Facebook.com ³ onlineschools.org

How much do you know

• Know your metrics• For example...• Number of website visitors• Number of telephone/email enquiries• Number of NEW people added to mailing list• Number of donations / products sold• Value of donations / products sold

• http://www.google.com/analytics/index.html

The Fundraising PyramidTrading, Events,Government,Foundations, Corporate donors, Individuals.

The Golden Prize

• The aim of building donor relationships is encourage the whole world to support you through increasing their level of contribution up to and including a legacy.

• You need a strategy for fundraising and a strategy for marketing your project

Why do people give.

• They are asked

• They believe you are stable & ethical

• They want to honor someone/thing

• They want to extend their values

• They have a high regard for the staff and the volunteer leadership

• They want to belong to something

Why do people give 2?

• Guilt/Strong Arm

• • To meet their numbers

• • For recognition

• • For promotional materials and proposals

• • To Reduce or Avoid Taxes

Its not just about the money

Remember the Pyramid?

Here is another way of looking at the people in the pyramid

ADVOCATE / RAVING FAN

SUPPORTER / CLIENT

DONOR / CUSTOMER

LEAD

PROSPECT

SUSPECT

Where are your supporters likely to be?

• To know where they are you need know who they are. start to segment your supporter base

• Gender, age , nationality, income range, educational attainment, language, employment, technology literate? communications preference

What ‘s the attraction?

What keeps your supporters awake at night? What do they worry about?

• What do your supporters want to hear?

• Not -what do you want to tell them?

Remember this?

• Worried about where your next funding will come from?• 5 foolproof ways to improve your chances of funding

• Anxious about writing reports for your funder?• 6 key tips to writing reports, even when you have poor

data

• Finding it difficult to connect with new donors?• 10 failsafe ways to reach new donors

Filling the information pipeline

Draw in a crowd

The marketing mix

• These are the tools that you use to maintain the relationship with your supporters and recruit new supporters.

• Newsletters, e bulletin, appeals, campaigns, thank you’s, success stories

The biggest mistake- MWA

•Most wanted action.• What is the action? have you made it clear? How do

they take the action?

Have a planned approach

• Start by making the first MWA an easy one- e.g. sign up for our newsletter

• Say thank you

• Build on the relationship by sending information down the pipeline

• Say thank you

Keeping the relationship going

• Make the next MWA a bit more difficult• Say thank you• Ask for more commitment at each stage

of the relationship• Say thank you• Keep going until you have someone who

is your biggest fan, because then....

You will have a fan base!!

Need a hand to manage the relationship?

Let mailchimp manage your strategy

Need some ideas for the information pipeline?

Get inspired, get started, get fundraising!!!!• Here are some examples of successful

campaigns.

In 2004 -30 friends in Australia raised $55,000 for prostate cancer research.In 2010, 447,000 people worldwide raised $72,000, 000- ( UK £19,000,000)

Race for Life has raised £457,000,000 since 1994

The Infinity Fund is a £50 Million fundraising initiative for Greater Manchester

Some useful websites

http://www.justgiving.com -text donations

http://www.givey.co.uk -online social media donations

http://www.missionfish.org.uk e bay for charities

http://www.charitytext.org charity giving website

http://www.themda.org The Mobile Data Association lots of good information about the mobile technology market useful resource

www.cafonline.org Charities Aid Foundation text donation service

www.nfpsynergy

www.mailchimp.com

http://www.charityservice.org.uk

Acknowledgements

• John Baguley- www.ifc.tc• Marcy Heim –the Artful Asker

www.MarcyHeim.com• http://www.sofii.org/• www.queerideas.co.uk

For more information

Manchester Community Central, FREEPOST NAT4553

Manchester M60 3BR

Telephone 0333 321 3021

Email info@mcrcommunitycentral.org

Web manchestercommunitycentral.org