Introduction to effective fundraising

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Introduction to Effective FundraisingThe elements of building a successful fundraising strategy

Fiona McPheeFebruary 2016

What is effective fundraising?Low spend / high return?Cost per dollar raisedReturn on Investment

A program delivering more net each year?

A sustainable program delivering more net each year?Diversification are you eggs all in one basket?So more people need you than you can reach today?

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TodayFundraising in context big picture sources of fundingNew Zealands individual giving marketStrategy optionsCouple of critical factors to success

You as a donor

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My favourite Charity:

How you support:

Why?

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My favourite Charity: Blind Foundation How you support: Regular gift from credit card & volunteerWhy? My daughter was born with cataracts, they have made a huge difference to her life and I want to ensure other children can get the help they offer

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What does Effective Fundraising Look Like?

My fundraising strategyBecause of the need to diversify from our reliance on events and corporates, our plan is to keep the income from those secure, whilst investing our surplus in a new regular giving program. We will also be investing more in....

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Data / information we collected to come up with that strategyCorporate and events have been growing, but seem to be harder every year and our demand for services is greater. World Vision seem to do well from regular giving, and I went to a training...

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My fundraising strategy driverGrowth? Stability? Diversification? Other?My fundraising strategy targetsNext yearThree years / five yearsNet / Gross / Return on investment etc

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Fundraising in contextThe big picture

Facts not anecdotes

The Big PictureOverall Fundraising Strategy

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The Big PictureOverall Fundraising StrategyInvestments

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The Big PictureOverall Fundraising StrategyGovernment

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The Big PictureOverall Fundraising StrategyGovernmentTrusts & foundations

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The Big PictureOverall Fundraising StrategyGovernmentTrusts & foundations

ConsiderCorporate &Events

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Chasing the corporate dollar

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Home of capitalism, most generous nation on earth.19660.9% of corporate profit donatedRise of the Triple Bottom Line, Corporate Social Responsibility20120.8% of corporate profit donated1986Peaks at 2.1% of corporate profit donatedSource: www.slate.com

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Source: Giving USA & Giving New Zealand

Gross Income - by year New Zealand

$0 $40 M$80 M$120 M$160 M

20052005200620062007200720082008200920092010201020112011201220122013201320142014Income

IndividualOrganisation

The Big PictureOverall Fundraising StrategyGovernmentTrusts & foundations

ConsiderCorporate &Events

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The Big PictureOverall Fundraising StrategyGovernmentTrusts & foundations

ConsiderCorporate &EventsConsiderAssociations, groups

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The Big PictureOverall Fundraising StrategyGovernmentTrusts & foundations

ConsiderCorporate &EventsConsiderAssociations, groups

Individuals Long term growth

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The Big PictureOverall Fundraising StrategyGovernmentTrusts & foundations

ConsiderCorporate &EventsConsiderAssociations, groups

Individuals Long term growth

The Giving Constituency

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Types of Individuals

The Big PictureOverall Fundraising StrategyGovernmentTrusts & foundations

ConsiderCorporate &EventsConsiderAssociations, groups

Individuals Long term growth

The Giving ConstituencyBequests / LegaciesMajor DonorsRegular Giving

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The Big PictureOverall Fundraising StrategyGovernmentTrusts & foundations

ConsiderCorporate &EventsConsiderAssociations, groups

Individuals Long term growth

The Giving ConstituencyBequests / LegaciesMajor DonorsRegular Giving

Other areas:LotteryMerchandiseCommunity / Peer-to-Peer

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The Big Picture

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Simplified

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Individual giving is currently the ONLY long term solution for growth

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New Zealands Individual Giving Market

FundraisingIndividual Report 2015Benchmarking

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Amnesty International New Zealand | Blind Foundation | CBM New Zealand | Child Cancer Foundation | Child Fund New Zealand | Coastguard New Zealand | Fred Hollows Foundation New Zealand | Greenpeace New Zealand | IHC New Zealand | Life Flight New Zealand | Mary Potter Hospice | New Zealand Breast Cancer Foundation | New Zealand Red Cross Society | Oxfam New Zealand | Plunket | Royal Forest and Bird Society of New Zealand | SPCA Auckland | St John New Zealand | Starship Foundation | The Stroke Foundation of NZ | UNICEF New Zealand2015 Members: New Zealand33

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Gross Individual Income - by year

$0 $50 M$100 M

200520052005200520052005200620062006200620062006200720072007200720072007200820082008200820082008200920092009200920092009201020102010201020102010201120112011201120112011201220122012201220122012201320132013201320132013201420142014201420142014Income

BequestCashChild SponsorshipRegular GiftEventOther

New Recruits - by year

0 50 K100 K150 K

200720072007200720072007200820082008200820082008200920092009200920092009201020102010201020102010201120112011201120112011201220122012201220122012201320132013201320132013201420142014201420142014Recruitment YearRecruits

BequestCashChild SponsorshipRegular GiftEventOther

Individual Gross Cash Income - by channel of solicitation

$0 $10 M$20 M

200520052005200520052005200620062006200620062006200720072007200720072007200820082008200820082008200920092009200920092009201020102010201020102010201120112011201120112011201220122012201220122012201320132013201320132013201420142014201420142014Income

Direct MailFace to FaceMediaOnlineOtherPhone

Regular Giving Income - by channel of solicitation

$0 $10 M$20 M$30 M$40 M

200520052005200520052005200620062006200620062006200720072007200720072007200820082008200820082008200920092009200920092009201020102010201020102010201120112011201120112011201220122012201220122012201320132013201320132013201420142014201420142014Income

Direct MailFace to FaceMediaOnlineOtherPhone

Average Bequest - by charity (excluding gifts below $1K)

Avg Gift last 5 yrs

$0 $100 K$200 K$300 K

Average Bequest

Pledged Bequest Rate - by type of support

0%1%2%3%4%

Face to Face CSFace to Face RGRegular GiversCash DonorsLoyal F2F DonorsActive Cash DonorsNon Face to Face RGRG & Cash DonorsLoyal Active Cash DonorsLoyal Non F2F Donors1k+ DonorsConfirmed Bequest Rate

Older is better

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New Zealand Donor Pyramid0.2%0.3%44.0% (234,784 donors)55.5% (296,271 donors)$37,344$4,800$240$81

28%20%7%46%2014 Income

Bequest

Lots from few v little from manyBequestsMajor DonorsGrantsBIG events

AppealsRegular givingSponsorsLotteries

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Lots from few v little from manyBequestsMajor DonorsGrantsBIG events

AppealsRegular givingSponsorsLotteries

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Approaching Strategy

The need for growth

A fundraising vision that answers the questionsHow many donors do we want? Do we want a large number of donors or do we want to focus on larger gifts from fewer sources? What kind of donors do we want? Do we want a donor base of individuals? Do we want corporate donors? Do we want to take funds from the government? Are we looking to diversity or to focus our fundraising? What do we want our funding source pie chart to look like at the end of five years? What donor audiences can we best reach with the channels of communication have we built? Will these channels of communication most effectively carry our message to our target donor audiences? What do we want our donors to do for us? Just give money? Or is there some other way we want them involved in our mission? How can we best leverage their support to make real change on our issue?

http://www.frontrangesource.com

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The need for growth

Ten Steps to Fundraising SuccessMal Warwick & Stephen Hitchcock.www.josseybass.com

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GrowthAudacious goals. Bold.Big ImpactResource intensiveInvolvementVoluntary.Lobbying. Public participationStaff intensiveVisibilityBrand identification.Broad public awarenessResource intensive(usually)EfficiencyCost-conscious. Well establishedFrugal managementStaff and time intensiveStabilityUnchanging values. Broad $ baseCash reserves. Long term viewResource intensive

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How have others grown?

Cancer Council NSW Example2 year growth 2013 2015: 8%9 year growth: 66%

Amnesty Australia Example2008 strong regular giving program, small occasional pool, tens of thousands of interactions, monologue not dialogueInvolvement & Efficiency focused2009 Seven year vision to inspire over 500,000 people every year to take action (more people = more activism = more members and donors = more impact)Stability & Involvement focusBuilding engagement through online actions, social media, volunteer groups, donor care, tied givingCross-sell, Regular Giving, Acquisition, Major Donors, BequestsRefining programs

2 year growth 2013 2015: 18%9 year growth: 115%

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Critical Factor: Your Proposition

Your fundraising propositionWhat the charity does the services you provide, the research you do, the teams helping, the campaigns undertakenYour history and track recordYour board, your leader