THE END OF

FUNDRAISINGHOW TO RAISE MORE BY SELLING YOUR

IMPACT

© 2010 Mission Measurement, LLC.

2

WHY SO HIGH?

$0

$5

$10

$15

$20

$25

Obama McCain Corporations Nonprofits

Cost Per $100 Raised

© 2010 Mission Measurement, LLC.

3

WE HAVE NO LEVERAGE

© 2010 Mission Measurement, LLC.

4

SUPPLY & DEMAND ARE DISCONNECTED

Donors

Nonprofits

Beneficiaries

Impact

Buyers

value

© 2010 Mission Measurement, LLC.

5

BUT THERE’S HOPE

© 2010 Mission Measurement, LLC.

6

SOCIAL CAPITAL MARKET

Programs valued more than

results

Relationship-driven fundraising

The market values social

outcomes

Impact buyers act like

consumers to purchase results

Yesterday: Independent Sector Today: Social Capital Market

© 2010 Mission Measurement, LLC.

7

MOMENT OF GRAND IRONY…

"There are no market forces, there are no

competitors to take market share away, there are

no customers that are going to shop someplace

else...creating this kind of protected zone for

philanthropy."

Tom Tierney, chairman and cofounder of the Bridgespan Group

© 2010 Mission Measurement, LLC.

8

FOCUS ON VALUE CREATION

Economic Value

Strategic Philanthropy

Affinity-based appeal to

individuals & foundations

High-Value Outcomes

Evidence-based appeal to

impact buyers

Charity

Emotional appeal to

individuals

Business Income

Unrelated corporate

(cause) marketing

So

cia

l V

alu

eL

ow

Hig

h

Low HighEconomic Value

© 2010 Mission Measurement, LLC.

9

THE FORMULA

Capture

Your Impact

Market

Your Impact

Sell

Your Impact

Engage

stakeholders

and define

your

outcomes

Identify the

“impact

buyers” who

value those

outcomes

Build your

business case

and show

your value

proposition

© 2010 Mission Measurement, LLC.

10

A NEW SET OF STAKEHOLDERS…

Beneficiaries

Board

DonorsGovernment

Foundations

Independent Sector:

Philanthropists

Corporate Partners

Beneficiaries that can pay

Social Investors

Service Providers

Upstream “Consumers”

Social Capital Market:

Impact Buyers

Psychic

BenefitEconomic

Value

© 2010 Mission Measurement, LLC.

11

RONALD MCDONALD HOUSE CHARITIES

Hospitals

Owner/Operators

McDonald’s

Corporation

RMHC Chapters

Donors

Children & Families

Suppliers

Grantees

© 2010 Mission Measurement, LLC.

12

IMPACT BUYERS: SOCIAL INVESTOR

SOCIAL INVESTOR- - - - - - - - - - - - - -

An outcomes-driven funder who has allocated a specified amount of

funding specifically to "purchase " a specific set of results.

© 2010 Mission Measurement, LLC.

13

IMPACT BUYERS: BENEFICIARY THAT CAN PAY

BENEFICIARY THAT CAN PAY- - - - - - - - - - - - - -

An individual or organization who consumes your products or services

and is able to pay for benefits received.

© 2010 Mission Measurement, LLC.

14

IMPACT BUYERS: SERVICE PROVIDER

SERVICE PROVIDER- - - - - - - - - - - - - -

An organization that relies on your outcomes to enhance its service

offering or achieve its own business objectives.

© 2010 Mission Measurement, LLC.

15

IMPACT BUYERS: UPSTREAM CONSUMERS

UPSTREAM CONSUMER- - - - - - - - - - - - - -

An individual or organization that relies on social outcomes produced

earlier in the value chain to generate desired outcomes or income.

© 2010 Mission Measurement, LLC.

16

IMPACT BUYERS: CORPORATE PARTNER

CORPORATE PARTNER- - - - - - - - - - - - - -

Companies that require certain social change in order to create direct

economic value for the business.

© 2010 Mission Measurement, LLC.

17

IT’S NOT ABOUT YOU, IT’S ABOUT THEM

OUR NEED TO SELL THEIR NEED TO BUY

© 2010 Mission Measurement, LLC.

18

THE 7 IMMUTABLE LAWS OF SELLING YOUR IMPACT

1. Go through the front door, not the back door.

2. Always use value pricing, not cost-plus

3. Know your customer (and speak their language).

4. Sell painkillers, not vitamins.

5. Sell outcomes, not programs.

6. Don’t oversell.

7. Don’t waste time on idiosyncratic funders.

© 2010 Mission Measurement, LLC.

19

A NEW BUSINESS CASE…

Name their Pain

Explain your Remedy

Show your Proof

Prescribe the Future

What does this stakeholder care about? What is the “big win” for this stakeholder? What is their “need to buy”?

How can you solve their problem? How does your program align with their needs? What value do we add or how does this monetize?

Why should the stakeholder believe you? What is your track record of success?

How can this stakeholder partner with you? What are the next steps? How can you innovate to make this win-win?

© 2010 Mission Measurement, LLC.

20

WHAT YOU CAN DO NOW

1

2

Socialize the concept

Know your outcomes

3

Focus on strengths

© 2010 Mission Measurement, LLC.

21