2023 IG Strategy

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Income Generation Strategy2012 - 2015

www.demelza.org.uk

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www.demelza.org.uk

1. Executive Summary

2. Strategic Intent

3. Context

4. Income History

5. Dependencies

6. Financial Forecast

7. Action plans

Partnerships

Community

Events

Individuals

8. Trading

Retail

Lottery

9. Marketing and Communications

10. Products and Campaigns

11. PR12. Conclusion

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1. Executive Summary

Terms of Reference:The strategy provides an analysis and evaluation of the current and prospective situation for Income Generation together with recommendations to improve

income across both the fundraising and trading arms of the Charity.

The focus for the coming 3 years is to build sustainable income by recruiting new donors, developing and retaining the donors the charity already has through

improving the customer care service to donors.

2. Our Strategic IntentThe organisation has set out 8 key areas of focus for the next 3 years. Of these, 4 have the most relevance to income generation:

Strategic Intent 2: Raise sustainable funds and use them wisely

Strategic Intent 3: Achieve growth as defined by the number of people we help, the intensity of care required and the equality of access the service.

Strategic Intent 7: Innovative in our fundraising activity and opportunistic in raising funds outside of area.

Strategic Intent 8: Develop the excellence of the volunteers, staff and trustees.

Demelza will diversify activity and secure sustainable funding sources by:

Investing time and resource into research and analysis.

Developing and trialling innovative fundraising activities.

Developing a stronger profile in West Kent, SEL and E Sussex for the recruitment of new donors, using an integrated planning approach.

Investigating the formation of a social enterprise in lottery or elsewhere.

Developing and incubating new ideas to find the next big thing in fundraising at Demelza.

3.ContextSince 2010 much has been achieved in laying the foundations for growth in fundraising. These achievements include:

Cleansing and improving the Donorflex database and training staff on its use.

Launching a new website and building social networks through Facebook and Twitter. Developing improved branding and more consistent design work, making communications more professional.

Opening 6 new shops, refurbishing 6 older shops, launching a new on line shop and relocating to a new distribution centre.

Running a successful Capital Appeal and developing a major donor network of 50 individuals.

Developing new fundraising events, including Music on the Hill, Pooches on the Prom and the Twilight Walk.

Establishing a direct marketing programme with a ROI of 2:1.

Introducing the Fundraising Standards Board code of practice.

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To achieve these objectives this strategy focuses on key priority areas for fundraising:

Actions

Developing people

Supporter care

service and

retention

Develop new

income streams

Raising awareness and recognition across the region

Through the hothouse group, social enterprise and major donors.

Looking for the next big thing and fundraising in new territories.

Looking at the donor journey. Creating a loyal donor base and

ensuring they are properly recognised for support

Introducing project management of key activities and

becoming more target driven.

Investing in our Income Generation team.

Planning, evaluation and monitoring.

Management

All staff

All staff

MarketingDonor acquisition

and development

Priority By whom

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Income Generation Strategy2012 - 20154. Income HistoryThe table below shows income over the past 7 years. Comparisons between years are hard to make due to varying factors of capital

appeals, one off donations and fluctuations in legacy income.

In 2008/09 Damien Hirst made a donation of 750k.

2010/11 saw a large legacy year with 2m income, 400K of which was accrued out of 2011/12

Grants income benefitted from a 270K donation from Goldman Sachs

Gives in 2009/10. Event income has declined over the years but the very significant drop in 10/11 was due to the ball being allocated to the capital appeal (80K).

The significant drop in total income from 2010/11 to 2011/12 is due to a 700k drop in forecast legacy income.

There is some evidence that the underlying trend in community and corporate (which is now sub divided into individuals and major donors) shows a decrease

post recession of 2008. Investment in individual and major donor fundraising has enabled us to stem this decline in 2011/12 but the income is still not

comparable to pre -recession levels.

Fundraising 2005/06 2006/07 2007/08 2008/09 09/10 10/11 11/12

000s forecast

Community 2,017 2,833 2,023 2,810 1,400 1,130 917

Corporate 1,201 891 800

Individuals 492 669

Major donors 750 153

Total

Corp, comm 1,902 2,833 2,023 3,560 2,601 2,556 2,539

individuals

Events 476 575 553 322 357 180 218

Grants 138 354 524 451 486 273 258

Legacies 1,013 634 226 785 456 2,029 1,100

Total VFR 3,643 4,396 3,326 5,118 3,898 5,039 4,115

Capital appeal 53 1,436 197 751 600 28

Total Income 3,643 4,449 4,762 5,315 4,649 5,640 4,143

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5. Dependencies

FinanceThere will be increasing need for timely accurate income and expenditure reporting to enable the fundraisers to track and

forecast income and costs. The charity rely on the finance team for swift banking of income and timely payment of invoices, and

need support from finance in budgeting income forecasting and financial modelling, especially when putting business cases

together for new activity and when trying to predict income.

Care

Fundraisers and Care staff need to have a close and intimate knowledge of each others work in order that we can effectively

engage and communicate with donors and can raise the r ight funds to pay for the services we deliver. There is a need for up to

date stories and anecdotes to share with the public and also a need to know the impact and outcomes that the Hospice delivers

for children so these can be shared with confidence with donors. Supporters increasingly want to be close to the work and want

to participate in helping in deliver Demelzas mission. This means the fundraisers need access to the Care teams and to childrenand families, in person and virtually through training, reports and updates.

HRThe people strategy needs to be supported by HR whose expertise in the law, recruitment and

development is invaluable, and the IG department continue to work closely to recruit and support

volunteers.

InvestmentIncome will grow over the next 3 years but growth will only come if investing in fundraising and retail.

Demelza will be seeking investment from the reserves to support donor acquisition work, research

and analysis, new shops and refurbishments and brand development. There will also be investment

in events where we will need seed funding to establish events with a view to seeing a slower returnbut at a higher net value.

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6. Financial Forecast

The above table shows where growth will come from over the next 3

years. The total value of income will increase over 3 years by 1m.

2012/13 2013/14 2013/14

Community Small Growth Flat FlatIndividuals Growth Growth GrowthPartnerships Flat Small Growth GrowthEvents Small Growth Flat Growth

Legacies Flat Flat GrowthTrusts Growth Flat Flat

Total VFR Growth Growth Growth

Retail 3.0% 5.0% 5.0%

Lottery Growth Flat Flat


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7. Action Plans

PartnershipsDemelza created a 'Partnerships' team in 2011 in response to a growing focus on

philanthropy fundraising and high value donor stewardship. Private philanthropic giving is a

growing market and has huge potential for Demelza in that to date major donors have not

been proactively targeted for revenue fundraising. By bringing all high value fundraising

together, there is an opportunity to improve the way partnerships are account managed.

Demelza can now develop focused products to target corporate and high net worth

individuals such as 'Pay for a Day', and establish a portfolio of high end events, for both

fundraising and stewardship purposes and can begin to tap into peer to peer major gift

fundraising by opening up networks, developing fundraising committees and engaging

Demelza's vice presidents.

The Partnerships Team aims are to:

Leverage existing high value relationships and supporters.

Develop new high value and corporate relationships and supporters.

Develop new fundraising products and events to engage wealthier supporters and

corporates.

Deliver high levels of service, stewardship and account management in return for high

value donations.

Corporate Partnerships:

The department aim to initiate, develop and retain relationships with businesses that

maximise net income for Demelza and where feasible and desirable to generate additional

opportunities and benefits to both parties. Companies are committed to continuing and

growing charity partnerships and investment is forecast to increase1.

However, corporate / charity partnerships need to be regarded not just from a financial

perspective, but in terms of the broader value that can be gained by both parties. Working in

partnership with these businesses is vital to keep them engaged with Demelza over the

longer term, and the relationship needs to be on a mutually beneficial front.


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A large % of corporate support at Demelza is from medium sized enterprises. It is

important for companies that they can achieve a bigger impact at Demelza, than

aligning themselves alongside a multinational brand charity, where they risk getting

lost within the myriad of corporate-charity partnerships. A relationship with Demelza

allows then to be more dynamic in achieving their social responsibility objectives.

Recent figures from the DSC show that the most generous companies give away an

average of only 0.43% of their pre-tax profits in 2009/10, including Gifts in kind2. This

support has moved from philanthropic donations to investment of resources,

expertise and assets. Such a change of emphasis has been driven in the main, by

the need for companies to be regarded as socially responsible and for more

tangible business benefits to come out of such associations. This is not only becauseof stakeholder pressure but also because it now appears to make sound business

sense with evidence of a link between business success and a corporate

commitment to social responsibility.

Clearly, this is vital when looking at how corporates are approached and how

relationships are developed with businesses supporting Demelza.

1 Source: C&E Corporate-NGO Partnerships Barometer, London, C&E Advisory Services

2Lillya, 2011

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Activity

Maximise income andsupport from existingcorporate supporters.

High donor retention.

Work strategically withcorporates to align

Demelza with theircommunity investment

needs.

Create an offer ofstrong fundraisingcampaigns.

New businessdevelopment.

Aim Yr 3Yr 1 Yr 2Measures and

outputs over 3 yearsStaff fundraising, events,gifts in kind and

employee volunteering.

Increase engagement andretain support.

Improve evaluation andfeedback to businesses.

Target new corporatesupporters in different

geographical areas andtarget specific industry

sectors

e.g. pharmaceuticals.

Maximise cross-selling of

Demelza products e.g.events and Lottery.

Develop clear case forsupport to provide

tangible model forbusinesses to fundraise for.

Go Dotty Launch and

market Pay 4 a Day toBusiness supporters.

Developing cause-relatedmarketing and other

product licensinginitiatives.

Increasing regular givingthrough employees.

Developing employee

volunteering in line withcorporates, to help meet

their social responsibility

needs.

Maximise Gift in Kind

opportunities that can bebudget-relieving across the

charity. Increase sponsorship

opportunities forcorporates and developsocial sponsorship.

Develop the Businessclub to increase

membership.

and measure the social

impact.

Targeting high levelpartnerships that couldlead to a step change in

profile and income.

Increase average donation percorporate to 750.

Increase rolling 12 monthcorporates on file to 750.

Increase in number ofemployees volunteering and

converting to financial support.

Numbers of Days sold to reach10 per year in 3 years.

Number Go Dotty partners andvalue increases to achieve100k income across all of IG.

Win new partnerships. Number and value of CRM

partnerships increase from 2 to 5over 3 years.

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Activity

Attract new funders to

Demelza.

Increase value of grants

received.

Increase hit rate of

applications.

Aim Yr 3Yr 1 Yr 2Measures and outputs

over 3 yearsMaximise grant applicationsthrough research and using

directories oftrusts/foundations.

High value and multi-yearfunding packages

Improve funder relations tomaximize repeat donations.

Robust application processand high quality proposal

writing.

Work with the corporateteam to look at specific

corporate foundations e.g.Goldman Sachs Gives.

Develop new proposals fornew trusts and grants suchas Comic Relief.

Increase trust fundraisershours of work. Use grant

finder software.

Work closely with the Careteam to package up

specific projects andservices to give tangiblefunding proposals.

Actively seek feedback onfailed applications and

learn from our competitorsif they have had success

where we have not.

Work with major donor

fundraiser to identifypersonal trusts and

foundations. Work with the Kent

Community Foundation

to help private individuals

to give through grants.

Ensure strong evaluation

and reporting is providedto funders regularly.

Partner with Care staff to

develop fundingproposals.

All trusts to visit the Hospice

or meet the employee (ifrelevant) to show how their

money is being usedeffectively.

Numbers of applications made.

Average value of grant to10,000.

Repeat funding and multi-year

grants awarded.

1 in 4 hit rate target(currently 1 in 5).

Trusts and Foundations.

Trusts at Demelza have performed well this year, in spite of an increase in competition due to cuts in government funding to certain projects. Trusts are

currently operating on a 1 in 4 hit rate.

10

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Activity

Develop the base ofpotential major donors.

Increase engagement

and loyalty of majordonors.

Develop prospectingand stewardship

opportunities.

Increase Celebrityengagement.


outputs over 3 years

Research names and build

HNW networks.

Excellent stewardship to

forge close engagementwith the charity.

High end fundraising eventsProspecting events.

Stewardship and cultivationevents.

Attract high profile supportto Demelza to attract pressand public attention.

Use Donorflex to identify

high value prospects. Ask key supporters to assist

with identifying potentialdonors.

Work with the corporateand trusts fundraisers toensure key prospects are

identified. Develop a strong case for

support.

Develop a bespokestewardship plan for eachprospect .

Package up activity intoattractive asks.

Create events that

engage the specificdemographic beingtargeted e.g. Ball, dinners,

and clay pigeon shoot

Produce a recruitmentand retention plan.

Ensure celebrity supportersare given specifictasks/roles.

Invite celebs to supportkey events.

2 new celebs on board.

Colder prospects buying in data fromprospecting agencies and

using online data researchtools.

Develop a prospectpipeline.

Develop an ambassadorprogramme for key majordonors.

Rolling calendar of events

in place. Events across all 3 regions.

Build Peer networks including trustees and VPs.

Peer to Peer major givingprogramme developed.

2 Funding committeesformed.

Peer to Peer fundraising

events.

Number of prospects in the pool

increases from 50 to 100. Donor pipeline to be defined to

include number of 5K + gifts.

Increase average gift from 2k to

5k and target 20% repeat gifts.

ROI for events (direct and indirectincome) 3 to 1 in year 1.

Shorten lead times from firstcontact to first gift (measures tbc)

Increase number and quality ofactive Celebrities.

All events have celebrity

endorsement.

Major donor fundraising

Major donors are a recent area of fundraising development at Demelza, and proved successful in engaging donors for the Bricks and Water appeal.

However, it is difficult to get donors involved without tangible projects for them to fund and this needs to be the focus when developing a stewardshipplan. Major donor fundraising takes time to develop and is all about a face to face approach.

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Activity

Increase number of

donors writing Demelzain their Will.

Improve our branding

and marketing toincrease In Memory

donations and legacygifts.

Solicit secondary InMem gifts.

Aim Yr 3Yr 1 Yr 2Measures and outputs

over 3 years

Develop a plan of potentiallegators to target.

Review marketing materialsand redesign marketing

collateral.

Communication with In

Mem donors to develop anemotional bond. Buildrelationships with In Mem

donors on line.

Comms to staff, volunteers,key supporters and

committed donors, trustees,patrons, families.

Work with local solicitors topromote will writing to apotential new group of

legators and through Willwriting fortnight and

networking events. Increase research in to

possible legacies throughSmee & Ford.

Raise awareness of Demelzathrough websites such as

Remember a Charityandforging links with the Charities

Aid Foundation. Legacy marketing pack to

be produced.

Develop specific supporter

journey for in Mem donorswith a bespoke thank you.

Promote Tribute fundsthrough websites such asJust giving, Much Lovedor

Facebook.

Training ambassadorvolunteers to give talks

and presentations toprospective legacy

donors in localcommunities.

Monitor and trackpipeline and pledges toimprove forecasting.

Consider a DirectMarketing strategy about

remembering Demelza ina will.

Identify legacy pledgers

and create a commsplan for them.

Number of pledges andnotifications (number tbc).

Average legacy value increases. Number of solictors engaged in will

writing fortnight up from 12 to 20.

Focus groups and stakeholderresearch.

Increase in legacy and In Memincome and average value.

5% Conversion of in mem donation

to a direct supporter/donor.

Legacies and In Memoriam GivingLegacy income at Demelza came in at just over 2m in 2010/11 and has performed at over 1.m for the last 3 years.

The UK legacy market is now worth 1.9 billion and currently provides around 13% of overall voluntary income (Legacy Foresight)Though there was a decline over the past two years of 3.5%, the prediction for legacies till 2015 shows growth.

In Memory gifts come into Demelza via three routes; a direct donation sent from the donor, a collection sent in by a relative or a collection undertaken

on behalf of the family by the funeral director. In Mem donations have grown and will raise 200k in 2011/12.

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Community Fundraising

Community income was the last area to be impacted by the economy, but in

2011 the sector saw this income stream suffer from the ongoing and double dip

recession. The result is that there are fewer activities happening for Demelza as

communities switch loyalty to (perceived) more pressing or deserving causes, or

the charity is having to share the proceeds with other charities or the income from

previous 'banker' events has almost halved in value.

Social trends are also changing and Friends Groups have declined across the

sector as lifestyles of the retired are now more likely to be focused on caring for

grandchildren, saving money or even continuing to work to pay for future carehomes or for the lucky few spending more time on leisure and holidays and less

time in traditional community fundraising groups.

On the plus side, in 2010 there were some key community sectors being

neglected by Demelza where income had declined over the years and these

have been targeted and this has led to growth and renewed support.

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Activity

Increase support fromthe local communities

across the region.

Retain and developvolunteers.

Improve the

effectiveness anddirection of Community

Fundraisers across theRegion.



Encourage supporters and

supporter groups to be selfsufficient and increase

beneficiary events acrossthe region.Utilise the website in a

positive and professionalway.

Work with Vol Services toensure high quality support

to volunteers.

Matrix Management

Fundraisers will each havespecialist focus areasbased on target audiences

that will not be bound by

geography.

Launch Do It For Demelza.

Upgrade Fundraising literatureacross the board.

New Schools and CommunityFundraising packs.

Go Dotty events.

Big Thank You communityevent.

15th birthday celebrations. Map the current volunteer

support across the regions. Develop specific roles for

volunteers such as schoolsfundraising or legacyambassadors.

Formulate a strategy for each

Specialism and each region. Develop centralised tools and

resources. Training and development.

Recruit a fundraising assistantin London and PT admin inKent.

Set individual targets and KPIsper region and per specialism.

Improved panning and reviewprocesses.

Ensure compliance with FRSB

code of conduct.

Formulate Common Interest

Groups. Running Group/Demelza

Walkers. Secure a Mayoral charity of

the Year.

Campaign to recruit youngermore active volunteers.

Staff training and

development in volunteermanagement.

Pro-actively encourage

income generating events ineach area.

Grow autonomy in the regions.

Cross team working to raise

profile in the regions. Map engagement across theregions to highlight gaps and

opportunities. Improved liaison with Care

teams and Trading teams.

Shops as central hubs toattract fundraising in the

community.

Number and average value of community

beneficiary events worth over 1000increases.

Hit rate and membership numbers on Do itfor Demelza site. 50 new supporter groups

in 3 years average value 1000. Increase number and average value of

- Schools: from 40 per month to 50 per

month. Average value from 320 to 450.- Faith groups, from 20 per month to 30 per

month average value from 240 to 300.- Membership groups from 11 a month to

15 and average value from 425 to500.

- SMEs increase in number and value.

Number of active FR volunteers increases. Age demographic reduces. Shortages and gaps filled across all regions.

Income per region increases.

3 to 1 ROI in each region. KPIs achieved. Target sign ups per fundraiser for

Demelza events.


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EventsEvents income peaked at Demelza in 2006/07 at over 575K but has seen annual declines since. It is hard to establish a pattern however, as events

income has not been recorded consistently in the same place and some event income has been posted to the capital appeals, corporate activity and

community beneficiary events. Going forward there will be 3 key event income streams:

Community Beneficiary Events, those that Demelza does not initiate or have responsibility for, but are supported by the community fundraising team.

Demelza Events, that are organised and controlled centrally and are paid for by the charity. (The Run, the Walk, other marathons, Pooches carol

concerts etc) and this will include Open Challenge events where some account management and central coordination is needed (treks, skydives

etc).

Partnership events that are targeted at high net worth or corporate clients and are managed by the Partnerships team (Golf, the Ball, London

Marathon)

Over the past 2 years there has been a review of the events calendar to better understand where return on investment is highest and increase visibility of

costs including staff costs. As a result Demelza has begun to build up a portfolio of new running and challenge events, developed new events Poocheson the Prom and the Twilight Walk and held a successful Ball at the Savoy hotel. In 2011 Demelza were the joint beneficiaries of a music festival 'Music on

the Hill' which made 50,000 for Demelza (before staff costs) and this will be repeated in 2013.

Events should be positioned as a 'service' to help deliver the strategic objectives of all Demelza income lines. For example, clearly outline the fundraising

objectives and design an event/events to meet them. There is a clear need for cross organisational buy in to events and this will be easier if there are

clear strategic goals to be achieved with each event. Different fundraising teams would be fully engaged in that event's promotion because they have

a vested interest in its success. The charity will gain more by jointly fulfilling its over-riding objectives and the success of an event becomes more easily

measurable if clear objectives are set before a plan is put in place.

The challenge with event fundraising is that participant numbers in mass participation events have been falling across the sector and average

sponsorship value has also dropped by up to half. This means the charity is having to spend more on marketing events and seeing lower returns. There

needs to be concentration on net return than ROI, spending more to earn more but and looking at UK challenge events where there has been growth,including skydives, treks and open runs.

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Activity

Review and refresh theevent portfolio.

Increase participantnumbers.

Increase sponsorshipvalue.

Improved planning andevaluation of events.



Focus on target marketsthen find the best event toattract the right audience.

Compelling messaginglinked to our work, with clear

cost examples in allpromotional materials.

Events to be linked tothematic areas of Carewherever possible.

Effective project planningand management, cost

tracking and post eventevaluation.

Remove Twilight walk andreplace with Go Dotty events

in May. Review and develop

Pooches concept.

Identify new ideas from thehothouse meetings to pilot

as new events. E Sussex carol concert

venue secured. MOTH fully resourced. 15th birthday event.

Pilot radio advertising.

Robust marketing plans andbudget in place.

Celebrity endorsement and

a hook for all events. Regional and central teams

all targeted to recruitparticipants.

Cross selling to eventparticipants.

Badges for schools toencourage sponsorship.

Exploit Face book and online giving tools to the max.

Incentivise sponsorship valuefor corporate and groups.

Use Donorflex planning tools. Track staff time and all

related costs. Event plans and business

cases for all new andexisting events in placeeach year.

Alternative max pax eventin place of MOTH.

Leeds castle secured as

a venue for max paxevent.

Text giving at max pax

events. Sponsorship apps. Awards ceremonies.

Full annual calendar ofevents that reach all

target audiences andsupport the aims of

income generationstrategy.

MOTH 3.

New portfolio of events that aresuccessful and meet donor needs.

Increase in participant numbers.

One max pax event to have 1000participants.

Celeb support for all events.

Average value increases from 40

to 60 for a run, other targets to beset per event.

Convert 5% of participants to other

forms of giving or repeat eventers.

Achieve budget for events. Achieve reasonable ROI as per

business cases. High quality event delivery and

supporter care.

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Income Generation Strategy2012 - 2015Individual Fundraising

Demelza currently has a database of 38,000 names, including 23,000 Lottery Members. 8,690 active donors (donated in last 3 years) and 6,428 lapsed

donors (donated between 3 and 6 years).

Cash donations from individuals will generate circa 300,000 in 2011/12 via online donations, unsolicited donations, Just Giving pages and direct mail

response. Currently very few donors give regularly in the form of direct debit or standing order. Currently there are 430 direct debits and standing order donors

who give an average of 11 a month.

Demelza has not considered face to face or 'street' fundraising at this time. Current trends in face to face recruitment are that whilst there are more sign ups

than ever before (100,000 more people signed up via PFRA agents than the previous year, the second highest level in 10 years3), attrition rates are high, the

cost of recruitment is high and public opinion is often antagonistic. Some town councils have restricted the number of face to face fundraisers they allow on

their high streets; some major charities (Oxfam, NSPCC) have canceled their face to face recruitment for the first time in many years. Demelza will continue to

watch this trend and review its position annually.

Activity

Increase donor base ofindividual givers.

Increase response ratesor average donationvalue from direct asks.

Conversion and crossselling.



Integrate postal, on lineand above the linemarketing with fundraising,

retail and lottery activity toadopt a multi channel

approach to recruitment.

Gain insight to develop theirvalue and recruit more of

them.Help donors participate in

our work throughcampaigning andstorytelling as well as

fundraising.

Break down the silos of the

donor structure and bedonor-centric in with theselling approach.

Donor and supporteracquisition through theRevenue Campaign The

Difference is Demelza. Pilot DRTV.

2 Mailings.

Develop a supporterjourney.

Make communicationspersonal wherever

possible. Strong case for support

and cost examples.

Telephone and email

upgrade campaigns forregular givers to increase

their monthly gifts.

Mailings. Buy cold data.

Target retail gift aid, lotteryplayers and in memdonors and design a

supporter journey for them.

Impact and outcome

reporting to donors to feedback the difference theymake.

Upgrades, conversion and

cross selling annually.

Shift from DM to on line, TVand telephone

recruitment campaigns.

Increase base of regular giversfrom 430 to 2,000+ over 3 years.

Number and value cash donorsincreases.

Increase average regular gift from

11 to 13 per month throughtelephone upgrade campaigns.

Measure and improve lifetime

value of key donor groups.

3Public Fundraising Regulatory Association annual report 2012

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8. Trading

RetailAim: Increase portfolio

The charity retail sector is buoyant with charity shop numbers growing considerably over the past 2 years

and income growing. The weak economy has proved to be a favourable environment for the success

of the charity retail proposition. The portfolio is now 19 shops and over the coming 3 years there is a plan

for the net number of shops to rise to 24. By the end of 2013 the aim is to have 20 shops trading. There

will be a review of the trading presence across the region and a plan of where to target new sites.

Improve Retail Gift Aid Penetration percentage

The introduction of claiming gift aid was problematic in the early days but has now established itself with

11% of sales being gift aided. This is below where the charity would like it to be and the aim is for ahigher GA penetration in the coming years after training and promotion across all shops.

Standardise branding and presentation

Retail have started in 2012 a refurbishment program to bring all shop up to a consistent high standard

of presentation and retro fit older units.

Monitor and reduce costs

Whilst income has grown, there has also been a significant increase in costs and as a result the

contribution retail makes to the charity has not risen in line with sales growth.

Proactively generate stock

The ongoing challenge for all charity retail is the consistent supply of quality stock. With rag pricescontinuing to increase there is growing competition for donated stock across both charities and

commercial operators and supply is not keeping up with demand.

Train and manage volunteers effectively

Volunteer numbers are sufficient but the age profile is older and there is a difficulty in trying to recruit

new and younger volunteers for new shops.

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Activity

Improve sales andprofitability.

Improve customerservice and experience.

Improve operationalefficiency.

Add value to the stockcycle.

Create a Portfolio

Strategy.

Develop E Commerce.



Focus on operations,service, merchandising andtraining staff and volunteersto increase return per foot

and profits per shop.

Customer and marketresearch identify what they

want and what needs to bedone to deliver to them.

Maximise contributionthrough the smooth and

efficient management ofshops.

Maximise income fromwaste saving and recycling

Improve volume andquality of donations.

Review current presence

and map areas of growthand opportunity across East

Sussex, Kent and SEL.

Increase on line shop sales.

Increase profitability by driving AverageWeekly Sales and Gift Aid contribution:

Benchmark our sales/profitability across

the region and sector. Review pricing. Stock generation initiatives.

Promotional plan in place for eachseason and event.

Work in partnership with other

departments to increase shops presenceas a community focal point.

Continue to rebrand and update older

shops. Improve customer service and

merchandising standards.

Focus on efficiency and cost savings. Review systems and procedures.

Infrastructure review of Retail.

Car boot sales. Renegotiate rag prices. Rag bins in town centres without shops.

E bay selling. Phone and cartridge recycling

Research and analysis of towndemographic.

Competitor surveys.

Cross team support to raise presence innew areas prior to shop openings.

Target locations identified.

New web site. Improved photography.

Bespoke ranges on line. Virtual Gifts or On line wish list.

Identify low profit shops fordisposal.

Acquire new shops in key areas.

Improve staff & volunteer

awareness of Demelza productsand services in liaison with otherdepartments.

Volunteer and staff training. Bespoke Supporter

communications targeted at giftaid sign ups.

Ongoing procedures reviewed

and quality standards agreed. Invest in infrastructure to support

new shops.

Clearance shops.

New shops identified. Boutique/niche/furniture shops

identified.

Develop database of on line

shoppers and develop a commsplan to increase value.

Give as you Live partnerships.

NVQ/accredited training?

AnnualInternal

Audit inplace.

New shopsopened.

Affiliatesites.

AWS per shop to 1900. Profit per shop to be

agreed.

Gift Aid penetration to 30%in 3 years.

All shops profitable.

All shops branded and

updated.

Gift Aid sales increase. Profits increase

Y1 20%Y2 25%Y3 30%

Rag sales maintained but

increase in income fromrecycling and other outlets.

Number of shops tbc.

On line sales increase.

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Lottery

Demelza has successfully run a Society Lottery since 2001. The charity is registered with the Gambling Commission to run a society lottery and hold both

licences for remote and non-remote gambling.

The Lottery membership is currently 22,400 playing weekly members. As such, Demelza is currently in the top four of Hospice Lotteries in the UK, of which there

are 107 registered members, and are second in showing the largest net growth since May 2009. Growth is ongoing and part of the direct approach used to

recruit potential lottery members by managing self employed direct Sales Advisors. The weekly attrition of membership is below 1% ongoing of total

membership.

The weekly draw is done in house with registered software acknowledged by the Gambling Commission.

Activity

Increase player

numbers.

Increase player value.

Develop new incomestreams.



Continue on a path of

recruitment through sitessuch as supermarkets andevents and sign people to

direct debit mandates.

Start to add value, if growth

slows, by shifting attentionto retaining and cross

selling to players, reducingcosts and targeting newareas.

Scope feasibility of acting

as a bureau to othercharities (see below).

Focus on new territorysuch as East Sussex.

Monitor non payers andreengage where possible.

Promote superdraw.

DM campaign. Bespoke comms and

asks for lottery file.

1 partner identified andpiloted.

Target lottery recruitment

at less affluent areas andyounger women.

Telephone Upgrade

campaign.

More partners identified.

Door to door recruitment?

Once the player numbersreach 28,000-30,000,

need to look at upgradingand converting these

donors to other ways ofgiving.

New income streamestablished.

30,000 players by 2015.

Cost to recruit remains at 11. Attrition below 1% a month.

5% response to other asks.

Weekly Superdraw players x 1000. Lottery contribution reaches 1m

in 3 years.

100k income from new business

initiatives.

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Income Generation Strategy2012 - 2015Lottery Bureau service

The Lottery department plan to leverage its experience in lottery fundraising by supporting other charities and developing income through third parties.

Option one:

Pursue the opportunity to administer the set up and running of a lottery for the RNRM charity. A proposal was presented to the RNRM charity in Portsmouth earlier this

year and this included a financial proposal on setting up a lottery, administering membership and holding a weekly draw. RNRM are still keen to pursue this option

and the outcome of their next Trustee Board meeting will show if this is a possibility. The fact that they are a National Charity with a large donor base both of

current and ex servicemen and families indicates that to achieve a profitable lottery membership would be short term to achieve.

Option Two:

Consider rebranding the lottery to one that would reach out and encourage other charities to join. This would work on the basis that any additional charities that

join the branded lottery would benefit from Demelzas assistance in them setting up and marketing their own lottery under one umbrella branded name. Each

additional lottery members from the charities, as well as the ex Demelza lottery members, would enjoy the possibility of winning higher cash prizes as well as being

marketed under the one umbrella name. Their individual lottery membership donations would still however be funding their own chosen charity.

Demelza would set a cost for administering each charity s membership as well as a contribution of marketing costs. The benefit to the charities starting a lottery is

that they would not have to provide a prize draw fund as this would continue to be provided by Demelza.

A balanced proposal on costs of running this and profits to new charities as well as the Rebranded Demelza Lottery would need to be provided.

Note:

It appears from research that the majority of charities that start a lottery, whether alone or through an umbrella charity, tend to stagnate once they have resourced

their initial individual donor base for members.

Demelzas strength lies in the fact that it has the experience in recruiting and managing self employed advisors, as well as knowledge of capturing members

through direct store/events/corporate employees, town centre routes. There would obviously be an additional cost to the new charities wanting to pursue this route.

Collecting PotsA pilot has been running for 6 months to develop distribution of cash collecting pots. There are two part time paid Sales Advisors to develop distribution and central

volunteer admin support. If successful this model will be rolled across the region with the aim of increasing income and improving service levels. The distributers will

be incentivised on the number of pots distributed by earning a % of the income. This will be a way to access new supporters through SMEs in areas where

Demelza currently have low penetration (West Kent).

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Income Generation Strategy2012 - 20159. Marketing and CommunicationsIn order to maximise marketing impact, it is necessary to build our knowledge of donors and potential donors in terms of profile, awareness, motivations and

understanding of what the charity does and also to get insights into why donors do or dont support Demelza to inform branding and communications. This

could lead to a brand review in 2014.

Activity

Increase understanding of

current, lapsed andpotential donors.

Ensure effective planning

across all activities, eventsand support

communications.

Ensure consistency across

all Brand communications.

Increase effectiveness ofonline.

Further embed Donorflex asan effective business tool.

Increase effectiveness ofDonorflex at delivering

income.



Research programme.

Develop annual planning

calendar.

Update and broaden the

current Brand guidelines.Re-launch briefing processand form.

Drive traffic.Promote website Offline.

Improve internal processesfor keeping the website up todate, user friendly and

relevant.

Continue trainingprogramme across all users

to ensure we capture allrelevant data and keep thedata clean.

Develop suite of reports offDonorflex that help tosupport business planning.

Measure perception of

Demelza Brand. Identify which rational and

emotional factors the

Demelza brand shouldincorporate.

12 month rolling plan. Marketing support plans for

all activities.

Provide template collateralsuch as empty bellies andpresentations for all

departments.

Develop the Donate

section of the site. Increase promotion of

online shop both onlineand offline.

Load up and run Donorflex

10.

Add enhanced data toDonorflex records such asMOSAIC coding to

increase our targetingability.

Set up Donorflex to supporteffective implementation

of the supporter journey.

Brand review.

All Departments update

and use.

Evaluations recorded.

Brand review.

Re-launch site. Automated

communications. More dynamic updating

of site.

Review databaseproviders.

Advanced usage forCRM.

Set up a route tomeasure market share

and track awarenesslevels.

Brand relaunch.

Donations direct toDemelza.

E-mail programme

More informed branding,messaging and communications

delivering greater impact.

Improved internal communicationson planned activities.

Improved branding across allcommunications.

Increased online sign ups anddonations and regular givers.

Improved selections for mailingsacross all groups.

Increased ROI for all activities.

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10. Products and Campaigns

Go Dotty - This is Demelzas biggest fundraising campaign of the year and runs through childrens hospice week. There is an established brand

awareness of the campaign and it is enthusiastically supported across the region by corporates, schools, community groups and individuals. This

campaign will continue to develop and intend to pilot a Go Dotty event as the focal point for the 2013 week. This event (a walk in dotty costume) will be

targeted at schools, families, community groups and the mass public held at a key venue.

Share a Card - This raises 20,000 each year and will continue to be marketed to schools, groups, SMEs and individuals at Christmas.

Pay for a Day- This product will be launched in September 2012. It is a high value product primarily aimed at corporates and major donors to replace

the failing Adopt a Nurse product that has proven too expensive in the current economic climate. The price point is 6900 to pay for a full day of

hospice services and donors are rewarded with special recognition and accreditation.

Demelza Business Club - This initiative will continue to be promoted as part of the portfolio of corporate engagement tools. High value partners will

have use of the site for free, others will pay to be members and the site will be public facing to allow non-members to see its benefits before they join.

Whats That Pong? - This schools product has not had much take up in 2011 so will be reviewed and remarketed to leisure groups as well as schools

and youth groups. A regional championship model will be developed with competitive fundraising and inter school challenges included in the

campaign.

Revenue Campaign - An awareness and fundraising campaign targeted at individuals to encourage sign ups for regular giving, cash donations and

major gifts to support Demelza running costs. Targeted across SEL, Kent and East Sussex using poster campaign, social networking, viral marketing and

above the line press, radio and TV ads.

Demelza will consider DRTV on regional channels or cold marketing mail shots to acquire new donors and raise awareness. A new strap line The

Difference is Demelza will be introduced to the logo and used as a call to action in our communications and fundraising activity.

Do it for Demelza - an online resource tool to encourage supporters to fundraise for Demelza. This is a product to replace the Friends Group model

which has seen dramatic declines in recent years. The password protected membership site is based on the Macmillan Worlds greatest coffee

morning model for recruiting fundraising groups which attracted 51,000 participants and raised 10m in 2011.


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11. PR

As a regional charity, Demelza enjoys media coverage locally, mainly from newspapers but also magazines, radio and occasionally local TV. The

charity is most well-known in Kent but also get coverage in South East London and also East Sussex.

According to the press monitoring agency, Precise there are around 20 articles a month mentioning Demleza in the media and in the last financial year

this equated to 653,000 worth of PR coverage. The target for this year is to increase this to over 1 million but more importantly to increase its

effectiveness through ensuring it delivers key messages about Demelza to the right target audiences.

Activity

Increase value and

impact of mediacoverage.

Increase effectivenessof social media.

Relevant Information

base developed tosupport

communications.



Develop and include key

messages in Press Releases.

Regional coverage.

Keep content up to date.

Bank of cost examples

developed.

Bank of family stories.

Include key messages in

PR stories. Nurture key media

channels. Monthly reporting.

Media training for keypersonnel.

Develop income routesand monthly reports.

PR Calendar

Increase Audio visual

content.

Celebrity support.

Broaden media contacts.

Video diaries

Mobile communications

Increase in value of media

coverage. Increase in effectiveness of PR

delivering supporters.

Facebook likes increased. Twitter followers increased.

Easier to deliver

communications consistently.

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12. Conclusion

Income Generation has never been

tougher but there are still opportunities

for Demelza to grow. Growth will come

through improved understanding of

donors, investment in recruitment of new

supporters and improved donor support

and re-engagement.

The charity needs to be confident and

ambitious in spite of the tough economy

and competition; and can grow andcan win market share if people believe

it, and are disciplined in how they focus

their efforts and think big when making

decisions on investment, risk and

innovation.

The Income generation department are

in a people business and must ensure

that the team is developed and

motivated as well as focussing on

delivering excellent service to

supporters.

Documents

2023 IG Strategy