Fund Raising & Revenue Generation

Shifa Soomar

Sponsored by

Introduction

Donor Behaviour

Fundraising Planning Framework

Methods of Fundraising

Direct Response | Online

Major Gift | Corporate

Importance of Donor Retention

The Government & FR in India

Revenue Generation

Agenda

Introduction to Fundraising

Backbone of a non-profit

‘People give to people to help people’

Relativity of gift size

Giving starts at Home Fundraising

Cover Expenses

Raise Awareness

Bond with Society

Higher Impact

Donor Behaviour Successful fundraising is the right person asking the right prospect for the right amount for the right project at the right time in the right way.

Context

Where

Who

When

How

How much

To whom or what

Who Gives?

Gender Age Education Marital Status

Income Employment No. of children Homeownership

Why They Give?

Self Interest

• Self-Esteem

• Atonement for Sins

• Recognition

• Access to Services

• Reciprocation

• In memoriam

• Tax

Emotions

• Sympathy

• Fear, Pity & Guilt

• Social Justice

Empathy

Values

Altruism

Reasons for Support

Personally asked to contribute

21%

To get a tax deduction 7%

To fulfill religious obligation or belief

20% Something is owed to the

community 22%

Those who have more should give to those who

have less 30%

Reasons for Non Support

I cannot afford to offer my support to charity

23%

Charities ask for inappropriate sums

23%

The government should fund the work undertaken

by charities 19%

I find charity communications

inappropriate 12%

The quality of services provided by charities to

their donors is poor 7%

In the past, charities have not acknowledged my

support 4%

I feel that charities are not deserving

3% Other

9%

Fundraising Planning Framework

Vision/Mission

Organizational Objectives

Fundraising Audit

SWOT Analysis Fundraising Objectives

Key Strategies

Tactical Plans

Budget Schedule

Monitoring & Control

Where are we now? Where do we want to be? How are we going to get there?

Vision/Mission

Serves as a focus point for fundraisers

Reinforces the ‘reason for the fundraiser’s existence’

Powerful motivating factor

Useful reference point for potential donors

All organisations have a vision/mission:

•Some unwritten

•Some unstated

•Some termed otherwise

Organizational Objectives

What the organisation aims to achieve

Applies for the whole organisation

Finance

Human Resources

Service Delivery

Fundraising Audit

Most crucial stage of Planning process

The Fundraising function and its

environment

Internal and external factors affecting

organisation’s fundraising ability

PEST Framework Market Study

Competitor Analysis Internal environment

APPROACH

SWOT Analysis

Take only key information from audit

Contextualise strengths and weaknesses

One step further: SWOT Analyses for each donor segment

What are you good at?

Competitive advantage

Internal drawbacks

Barriers to development

New audiences, new techniques

Potential P,E,S,T Challenges

Strengths

Threats

Weaknesses

Opportunities

Fundraising Objectives

Yardstick for measurement of FR performance

Base for accountability

The amount of funds to be raised

The segments of donors from whom these funds will be raised

The acceptable costs of raising these funds

Key Strategies

Broad means by which objectives will be achieved

Elements of

Fundraising strategy

Overall Direction

Targeting

Positioning

Segmenting

Branding

Case for support

Tactical Plans

Finer detailing of strategies

Action points to achieve key strategies

Small organisation

=1 Action plan

Large Organisation

= Customised action plan for each donor

segment

Budget

Easier with experience

Approaches

% of previous

year’s donations

What can be afforded

Task Method

Competitor matching

% of current year’s

budgeted donations

Scheduling

When will the action points be undertaken? By whom?

PERT

Gantt Chart

TOOLS

CPM

Monitoring & Control

Important to keep a constant check on

•Costs

•Targets

•Performance.

For effective control, break these down into monthly targets

Also, check appropriateness of adopted strategies and tactics

Assessing Fundraising Performance

Face Ratio Cost per

dollar raised

Percent Participation

Average gift size

Average cost per gift

ROI

Fundraising Methods

Direct Response

Fundraising

Online Fundraising

Major Gift Fundraising

Bequest, In Memoriam

& Tribute giving

Planned Giving

Corporate Giving &

Fundraising

Grant Fundraising

Direct Response Fundraising

Primary Elements

Targeting Continuity

Interaction Control

Pillars of Direct Response

Offer Sufficient

Information

Explicit ‘call to action’

A means of response

Direct Response Fundraising

Defining Objectives

Segmenting

Targeting Media:

Selection and Planning

Message

Fulfillment Monitoring, Control and

Appraisal

Key Stages

Stages of Direct Response Fundraising

Objectives

Define:

How Much?

From how many?

How?

At what cost

Stages of Direct Response Fundraising

Segmentation

List of Cold

prospects

Donors of other

nonprofits

Warm potentials

’ list

Lapsed supporters

EMGO

Cheapest, easiest source

Hardest, most expensive source

Targeting: You may have the best campaign/approach, but is it reaching the right people?

Stages of Direct Response Fundraising

Media: Selection & Planning

Direct Mail

• List Purchase

• Test Mailing

• Pack Design

Free-Standing Inserts

• Placed in magazines/newspapers

• Attractive design

• Should be suitable for audience

• Higher effectiveness, but higher costs too

Press & Magazine Advertising

• Tried and tested

• Works well for emergency causes

• Provide the problem and the solution

Stages of Direct Response Fundraising

Media: Selection & Planning

Direct Dialogue

• Face-to-face

• Sites of high foot fall

• Increasing use of technology

• More first-time donors (80% under 30)

Tele-Fundraising

• Donor Acquisition & Development

• Inhouse or outsourced

• Can be integrated with campaigns on various media

Radio

• No visual recall

• Works well when integrated with other media

Stages of Direct Response Fundraising

The Message

• Content over length

• Get to the point

• Active over passive

• Passion, honesty and conviction

Writing Copy

• Back of envelope more important than front

• Top, Bottom, Middle.

• Handwriting vs printed text

• Numbers vs words

• Don’t forget the P.S.

Illustration, Typeface & Design

Stages of Direct Response Fundraising

Fulfillment

‘Back-end’ of a recruitment

campaign

Honeymoon stage is critical

Close the deal

Answer

Bank

Acknowledge

Stages of Direct Response Fundraising

Monitoring, Control & Appraisal

Easy to monitor

Keep tab on statistics through media owners

Performance appraisal based on historic data and across media

Be wary of:

•Outliers

•Ignoring fulfillment costs

Online Fundraising

e-Philanthropy: advocacy, education and fundraising

Creation of communities

Wider, stronger reach

Not ask-give or top-down, but building relationships between the organisation and

supporters

Online Fundraising

Successful Online strategy

Community

Content

Commerce

Characteristics of a successful website

Accessibility

Accountability

Education

Interaction

Empowerment

Online Fundraising

E-Fundraising Mix

Search Engine Marketing

Opt-in E-mail Online

Partnerships

Online PR Interactive Ads Viral Marketing

Major Gift fundraising

Seven faces of

Philanthropy

The Communitarian

The Investor

The Socialite

The Dynast The Repayer

The Altruist

The Devout

Major Gift fundraising

Major Gift Development Process

Identify & Focus

Strategise Engage Evolve

Strategy

Assign ‘ask’ Ask Acknowledge Continued

engagement

Renewal

Corporate Giving and Fundraising

Why do Corporations give?

Corporate productivity

Ethical Reasons

Political Influence

Stakeholder Satisfaction

Corporate Giving and Fundraising

Forms of Support:

Cash Donations Donations of

stocks & shares

Donations of products/servic

es

Donation of employees’

time

Publicity Employee

Matching Gifts Events

Workplace collections

Group Presentations

Employee Fundraising

Sponsorship Workplace

giving

Corporate Giving and Fundraising

Selecting the Right Organisation

Profitability Turnover Longevity

Business Sector Country of ownership

Nature of Shreholding

Potential Fit

Fit can be analysed through values, brand and

objectives

Corporate Giving and Fundraising

Benefits

Increase in amount and

stability in revenue

Larger volunteer base

Increased awareness

Wider reach for donor acquisition

Ability to leverage knowledge of

corporate entity

Exclusivity ‘Selling out’

concern

Access to non-profit’s

database

Credit on collateral

Drawbacks

Importance of Donor Retention

‘Customer Service’ aspect of Fundraising

For every $6 raised through new donors, 5$ are lost through leakage of existing donor

base

Fix the leaky bucket before pouring more water into it

Easier, Cheaper to retain than acquire

Strengthen while Expanding

Importance of Donor Retention

HOW TO MAKE YOUR DONORS STAY

Newsletters Annual Reports

Invitation to Events

Understand the motivation

Donor Recognition (plaques/certificates)

Timely gift acknowledgements (email/telephone)

Donor Milestone Correspondence

Preference & Permission based

Personalized Communication

Keep your donors informed: Make them feel important:

The Government & Fundraising in India

FCRA Act

Recently thousands of registrations cancelled

Service Tax

Providing education to children considered a service

TRAI Regulations

Charities not exempt from ‘DND’ Rule

No Infrastructure support

‘Bill Mail Service’ for commercial companies, but not nonprofits

Tax Exemption

Sec 80G, but no ‘Gift Aid’

Emergence of Revenue Generation

Social enterprises apply business solutions to social problems.

Ultimate goal: achieve sustainability

Generation of:

•Social value (measurable impact) •Economic value (revenue).

Integration Models

• The enterprise and the social program are one and the same

• The business is created to serve clients (central to the mission)

Embedded

• The business activities overlap with the social programs

• The business is created as a funding mechanism and to expand/enhance the mission of the organization

Integrated

• Social and business activities are separate and may or may not be related to the mission of the organization

• The business is created mainly as a funding mechanism to support social activities

External

Hybrid Organisations

Primarily pursue a social mission but high reliance on commercial revenue

Reasons for popularity:

•Less dependency on donations and subsidies

•Creating sustainable financial models

Traditionally existed in job training, health care, and microcredit. Recently in

environmental services, consulting, retail, consumer products, catering, and information

technology.

Hybrid Organisations

Challenges of the Hybrid Structure:

Legal Structure

Financing

Customers & Beneficiaries

Organizational Culture and

Talent Development

Key Factors for a Successful Social Enterprise

Good fit

Realistic expectations

Hire Right Consider it a

business

Industry Knowledge

Perfect Pitch

What do you want?

Give Information

Create Awareness

Connect Get the Money

Perfect Pitch

Introduction

Who you are

Who you serve

Why you are

important

What you want

Elements of the Pitch

Corporate Giving and Fundraising

Delivery Technique

Opener

Memorable Phrase

The Ask

Perfect Pitch