Diversifying your income Mike Bartlett Senior Consultant Money Tree Fundraising mike@moneytreefundraising.co.uk @MoneyTreeFR

Sector Trend

Courtesy of FSI Small Charities Trends Report 2016

Sector Trend

Courtesy of FSI Small Charities Trends Report 2016

Why/What/When/How/Who?

• Why diversify or innovate? • What has led you here? • Is this the right time? • What are the real barriers to growth? • Focus on the problem you’re trying to solve • Why are you uniquely placed to solve it? • What one problem costs the £££££s?

4 Factors for Great Innovation

1. Proposition 2. Investment strategies 3. Delivery through other people 4. Personal focus and inspiration Courtesy of Alan Clayton/Plymouth Uni ‘Great Fundraising Report’

4 Factors for Great Innovation

UDCM 1. Proposition Understand 2. Investment strategies Decide 3. Delivery through other people Communicate 4. Personal focus and inspiration Motivate

Why? The 5 ‘P’s

Purpose Passion Pride Profit Performance

Why?

Vision

Values

Resources

Fundraising Diversification

Innovation

Micro vs Macro Factors

Macro

Micro

Product Lifecycles

Product Lifecycles

Why? Unplanned Trend Cause Issues Next Steps

Corporate partners are moving on

Our challenge events are less popular

How to attract new corporate support

Focus group with past companies

Contracts ending Government cuts Dramatic need to upscale fundraising

Assess potential of income areas

Donor numbers declining

Opt in regulation Smaller mailings – less income

Ensure existing donors are stewarded superbly

Similar charities entering the market

Topical cause Reduced share Assess unique answers to the problem

Why?

Risk vs Return High potential income

Low potential income

High risk of raising nothing

Challenge Events

Enterprise

Special/gala events

Community Fundraising

Grant applications

Major Giving

Supporters Programme

Corporate support

Donor acquisition

Online

Low risk of raising nothing

Legacies

ROI vs Timescale High ROI 10+:1

Low ROI 2:1

Short timescale Long timescale

Major Giving

Grant applications

Supporters Programme

Challenge Events

Legacies

Online

Enterprise

Special/gala events

Community Fundraising

Corporate support

Donor acquisition

Look after the pennies?

Existing vs New

Existing vs New

Consolidate (ext. factors?)

Grow (how? – capacity?)

Innovate (test)

Re-invent (for crisis)

Attractiveness vs Appropriateness

Attractiveness (External) • Level of public concern about method or content • Number of potential donors (size of the market) • Perceived impact on the beneficiary group • Uniqueness / novelty value • Ease of participation in activity

Attractiveness vs Appropriateness

Appropriateness (Internal) • Staff expertise • Organizational experience • Fundraising return • Resources (staff, volunteers, IT, time)

Implementing Change - UDCM Vision Skills Incentives Resources Action

Plan Change

Skills Incentives Resources Action Plan Confusion

Vision Incentives Resources Action Plan Anxiety

Vision Skills Resources Action Plan

No Change

Vision Skills Incentives Action Plan Frustration

Vision Skills Incentives Resources False Starts

Evaluating New Activities

In Summary • Ask lots of difficult ‘why’ questions • Go back to what key problem are you there for? • Assess current activities and trends • Consider risk vs return + timescale • Consider attractiveness + appropriateness • Change requires communication and motivation • Evaluate to avoid wasting time and energy • Remember, the biggest error is to do nothing!

Further Reading • www.dsc.org.uk • Marketing Strategy – Peter Maple • Fundraising Management – Adrian Sargeant • SOFII • www.fundraising.co.uk • Twitter • Blogs • Linkedin

Any questions?