New Models of FundingFRASER NELSONDIRECTOR OF DATA AND INNOVATIONSALT LAKE COUNTY MAYOR BEN MCADAMS

Where the money is People

People with Facebook pages

People with twitter accounts

People with smart phones

People who don’t see the difference between their work lives and their causes and their social media personality

What Would Andrew Carnegie

Tweet?

Andrew Carnegie 1835–1919

Established the Carnegie Corporation of New York in 1911. One of the earliest, largest, most innovative philanthropic funds

in US history.

#ToTheVictorTheSpoils“THE FIRST MAN GETS THE OYSTER, THE SECOND MAN GETS THE SHELL.”

What people want – and expect

For most donors ◦ fundraising not a simple transaction◦ It is a way of operating

People connect on multiple levels◦ Social media, meet ups, petitions, advocacy◦ Based on a relationship with the organization and its mission.

Donors philanthropy be ◦ More transparent◦ More open ‘democratized’◦ Relational – not just about money◦ Results based

#PayforSuccess“THINK OF YOURSELF AS ON THE THRESHOLD OF UNPARALLELED SUCCESS. A WHOLE, CLEAR, GLORIOUS LIFE LIES BEFORE YOU. ACHIEVE! ACHIEVE!”

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What is Pay for Success?

PFS is performance-based contracting where government pays only if specified results are achievedPFS

Overview of the PFS Process

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Government(Salt Lake County) Lead Agency Funder(s) Evaluator

If success outcomes are achieved, SALT LAKE COUNTY repays FUNDERS

The EVALUATOR measures success outcomes and determines total success payments due

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The LEAD AGENCY delivers services to the target population

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FUNDERS provide upfront financing to provide payment for services to LEAD AGENCY

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SALT LAKE COUNTY initiates and constructs the PFS contract with all project stakeholders, LEAD AGENCY designs the intervention, EVALUATOR creates

evaluation plan for the project, and FUNDERS negotiate funding terms

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Evaluators

Utah’s Unique Pay for Success Ecosystem

End Payers

Service Providers

Program ManagementPolicy Innovation

Lab

Financial and Legal

Pay for Success advisory for the County

#HaveIntention“CONCENTRATION IS MY MOTTO - FIRST HONESTY, THEN INDUSTRY, THEN CONCENTRATION.”

Funders want complex information accessible

63% want to know exactly how their money is being used

You should present information in a way that is: ◦ easy to understand ◦ easy to act on

Data is key to relationship fundraising◦ “Transforms raw data into intelligence”

Do you have data? Do you understand it?

Before you can tell your story and use data to do it, you have to FIND IT, EXTRACT IT, and INTEGRATE IT.

Data must meet three criteria to be useful:◦ It be valid and reliable, including frequency of collection.◦ It must closely align with your initiatives.◦ It must reflect what your staff, Board and community care about and want to

know.

The data in your grants should not be

A mosh pit of available data we think can be important with no useful context.

Just things you care about.

Cherry-pick successes.

Data should convey Your vision - what you want to be true, and what you are doing to make it happen.

Current, meaningful and actionable information at a glance. ◦ For staff◦ For Board◦ For supporters

◦ Why would I fund you?◦ What are you wanting to change about your community?◦ How do I know you can do that?◦ How do I know you HAVE done it?

What does any of this mean to anyone except the person who built it?

How does this improve lives?

Built for citizens

Simple categoriesClear results Shows targets, progress, successes and failures at a glance

Easy to find and navigate

#Evaluate!“THE WAY TO BECOME RICH IS TO PUT ALL YOUR EGGS IN ONE BASKET AND THEN WATCH THAT BASKET.”

Take an outcome focus Outcome: The conditions of well-being you want for children, families and the region you serve as a whole.

◦ An outcome is a population condition of well-being for children, adults, families and communities, stated in plain language. These are conditions that clients and supporters can understand.

Indicator: How you measure these conditions. ◦ An indicator is a measure that helps quantify the achievement of an

outcome. Indicators answer the question: “How would we recognize the outcome if we fell over it?”

Baseline: The measure of where you’ve been and where youare.◦ Baselines have two parts: the historical data that tells where we’ve been and

the current snapshot of where we are.

Initiative: What works to improve these conditions? ◦ An initiative is a coherent collection of actions that has a reasoned chance of

improving results. Initiatives are made up of our best thinking about what works, and include the contributions of many partners.

Target: A specific goal for an indicator or performance measure. ◦ It should have a relationship to quality service or quality of life conditions.

Performance measure: How youknow if strategies are working. ◦ They answer the question “How are we doing?” It is usually something that

we have operational control over.

#ItTakesACrowd“NO MAN WILL MAKE A GREAT LEADER WHO WANTS TO DO IT ALL HIMSELF OR GET ALL THE CREDIT FOR DOING IT.”

Change is here 72% of giving comes from individuals

◦ Just 15% from foundations; 5% from corporations

6.7% of all giving is on line◦ But growing fast◦ Online giving grew 13.5% in 2013.◦ For every 1,000 fundraising emails sent a nonprofit raises $17.

Monthly donors key◦ Give 42% more in one-year than one-time donors.

Sixty-four percent of donations are made by women.

What you need for crowd funding

Be realistic◦ The average nonprofit crowdfunding campaign raises $9,237.55.

Make it easy◦ 64% of nonprofits take 3 clicks to get to the donate button

Ask for something – but just ONE thing!◦ Call to action

#ROI“AS I GROW OLDER, I PAY LESS ATTENTION TO WHAT MEN SAY. I JUST WATCH WHAT THEY DO.”

Things to measure for return

How much did we do? ◦ Customers served (by customer characteristic)

Activities undertaken (by type of activity) ◦ How well did we do it?

Activity-specific measures◦ Is anyone better off?◦ Link to cost per client = ROI

What is a return?◦ Changes in skills/knowledge◦ Changes in attitude/opinion◦ Changes in behavior◦ Changes in circumstance

#LoveUTGiveUT“THERE IS NO CLASS SO PITIABLY WRETCHED AS THAT WHICH POSSESSES MONEY AND NOTHING ELSE.”

Take advantage of this free service

Don’t just ask for $10

1,231,521 raised in 24 hours◦ Unique Donors: 14,612◦ Donations: 21,991

143 arts organizations / causes participated◦ Shout out to UOCA, Plan B Theater and Salt Lake Acting Company!◦ Why successful