Transcript Developing sustainable income streams – workshop presentation

Thinking Ahead
Developing sustainable income
streams
• Worried about where your next funding will come
from?
• 5 foolproof ways to improve your chances of funding
• Anxious about writing reports for your funder?
• 6 key tips to writing reports, even when you have
poor data
• Finding it difficult to connect with new donors?
• 10 failsafe ways to reach new donors
• If these matters are worrying you then
get your free resources by sending me
an e mail
• [email protected]
• make the subject line ‘free resources’
A strategy based on
a single income
stream is always
going to fail one
day.
What is your strategy
• Income analysis- where does your
income come from. What proportion of
your income comes from contracts,
trading , trusts and foundations,
donations
• The rule of Thirds. No more than a third
of your income should come from one
source
Sources of funding
• Government.
• Grant-making
organisations.
• Companies.
• Individuals.
• Trading + fees.
• Events.
• Internet and Social
Media
Six fundraising techniques that work!
Major donor fundraising
Events
Foundation applications
Corporate donations
Membership
Legacies
How funding is divided.
• General public giving and Lottery= 38%
• Statutory agencies=36%
• Voluntary Sector grant making
trusts=8%
• Commercial sector =6%
• Trading and investments=12%
Return on investment
• Have you thought about how you raise funds?
• Raising funds from trust and foundations offers a
return of 1:9
• From corporate donors its a return of 1:8
• From legacies its a return of 1:36
• From individual donors its a return of 1:1.5 at worst
and at best its a return of 1:2.5
• What is your fundraising strategy?
Foundation Applications
• Research the funder
• Follow the
guidelines
• Write a log-frame
• Apply in time
• Monitor & evaluate
• Report back
• Apply again
• Create a
relationship
What we know about the
rejection rates.
• For almost all 2 stage applications there
is an 80% rejection rate at first stage.
• Second stage the rejection is 50%
• In other words 90 % of applications are
failing!
• For Big Lottery Reaching Communities
the rejection rate is currently 94%
What’s your income strategy?
You are competing for funds
• In England and Wales there are 162,000 registered
charities
• In England and Wales there are 647,000 charitable
organisation
• The sector attracts £52 billion funding each
year(£11billion from the public, about 20%)
• How much did you get?
Source: Directory of Social Change/ NCVO/Charities Aid Foundation
If no one has heard of you no one
is going to give to you…
Charitable giving
• Figures released in December 2011, show
that in the year (2010/11) the UK public gave
£11.0 billion to charity.
• 1.1 million people donated money to charity,
who hadn’t previously donated. However, the
average (median) amount given per month
fell from £12 in 2009/10 to £11 in 2010/11.
• How much did you get?
Who donates?
• Women aged 45-64 years are the most likely
to give and give the most (typical
average/median amount £20 per month).
• Those aged 16-24 years are the least likely to
give.
• Who are you asking for money from?
• Who is giving you money?
• Are you asking for gift aid?
What about new technologies
• There are 12 million smart phones in use in
the UK in December 2011
• Another 2 million were forecast to be sold at
Christmas
• If 1% of all the texts sent in the UK were
converted to a £1.50 donation the charity
sector would raise £1.5 billion pounds
Can we afford to ignore this?
Why use the new
technologies
• Over 34million, 16 – 65 year olds in the UK
own a mobile phone, people for you to
potentially reach to help raise money for your
cause, so what are you waiting for!
• In December 2010, for the first time
consumers spent more with debit cards than
cash.( How much cash do you have in your
pocket?)
Charities who use online
funding, raise 6 times
more than those who
don’t
Its not rocket science!
•
•
•
•
Technology is a tool to build relationships.
Understand the technology and its limitations.
Develop a strategy
Here is why you should........
• 83% of the UK use the internet. That’s over
51 million people!¹
• ... and there’s another 2 billion worldwide.¹
• That’s a lot of people... and it’s still growing.
In 2010 there was a 14% increase in users
worldwide.²
• 56% of UK adults have given to charity
(2009/10), that’s 28.4 million UK adults.
• But 58% of people shop online
The average offline donation is £15.¹
• The average online donation is £30.¹
• ... however this rises to £54 when
donors are targeted more
specifically.¹
•
¹ Race Online 2012 Survive & Thrive casebook
• 1 in 5 emails from non-profits get
opened¹
• ...with 3.4% generating a click.¹
• But if fundraising emails are sent from
your friends, then the open rate is 90%
• ...and 1 in 4 lead to a donation!
•
Source MailChimp
• 46% of the UK is on Facebook...¹
• ...and represents 7% of all UK time spent online.¹
• It has more than 750 million users worldwide...²
• ... that’s more than 10% of the worlds population.
• 48% of 18 - 35 yr olds check Facebook when they
wake up.³
¹ Uk Online Measurement (UKOM) , ² Facebook.com ³ onlineschools.org
How much do you know
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Know your metrics
For example...
Number of website visitors
Number of telephone/email enquiries
Number of NEW people added to mailing list
Number of donations / products sold
Value of donations / products sold
• http://www.google.com/analytics/index.h
tml
The Fundraising Pyramid
Trading, Events,
Government,
Foundations,
Corporate donors,
Individuals.
Legacies
Major Gifts
Committed Giving
Appeals
Recruitment
The Golden Prize
• The aim of building donor relationships
is encourage the whole world to
support you through increasing their
level of contribution up to and including
a legacy.
• You need a strategy for fundraising and
a strategy for marketing your project
Why do people give.
• They are asked
• They believe you are stable & ethical
• They want to honor someone/thing
• They want to extend their values
• They have a high regard for the staff and
the volunteer leadership
• They want to belong to something
Why do people give 2?
•
•
•
•
Guilt/Strong Arm
• To meet their numbers
• For recognition
• For promotional materials and
proposals
• • To Reduce or Avoid Taxes
Its not just about the money
Remember the Pyramid?
Legacies
Major Gifts
Committed Giving
Appeals
Recruitment
Here is another way of looking
at the people in the pyramid
ADVOCATE / RAVING FAN
SUPPORTER / CLIENT
DONOR / CUSTOMER
LEAD
PROSPECT
SUSPECT
Where are your supporters likely to be?
• To know where they are you need know who
they are. start to segment your supporter
base
• Gender, age , nationality, income range,
educational attainment, language,
employment, technology literate?
communications preference
What ‘s the attraction?
What keeps your supporters awake at
night? What do they worry about?
• What do your supporters want to hear?
• Not -what do you want to tell them?
Remember this?
• Worried about where your next funding will come
from?
• 5 foolproof ways to improve your chances of funding
• Anxious about writing reports for your funder?
• 6 key tips to writing reports, even when you have
poor data
• Finding it difficult to connect with new donors?
• 10 failsafe ways to reach new donors
Filling the information pipeline
Draw in a crowd
The marketing mix
• These are the tools that you use to
maintain the relationship with your
supporters and recruit new supporters.
• Newsletters, e bulletin, appeals,
campaigns, thank you’s, success stories
The biggest mistake- MWA
• Most wanted action.
• What is the action? have you made it clear? How do
they take the action?
Have a planned approach
• Start by making the first MWA an easy
one- e.g. sign up for our newsletter
• Say thank you
• Build on the relationship by sending
information down the pipeline
• Say thank you
Keeping the relationship going
• Make the next MWA a bit more difficult
• Say thank you
• Ask for more commitment at each stage
of the relationship
• Say thank you
• Keep going until you have someone
who is your biggest fan, because
then....
You will have a fan base!!
Need a hand to manage the
relationship?
Let mailchimp manage your
strategy
Need some ideas for the
information pipeline?
Get inspired, get started, get
fundraising!!!!
• Here are some examples of successful
campaigns.
In 2004 -30 friends in Australia raised
$55,000 for prostate cancer research.
In 2010, 447,000 people worldwide
raised $72,000, 000- ( UK £19,000,000)
Race for Life has raised
£457,000,000 since 1994
The Infinity Fund is a £50 Million
fundraising initiative for Greater
Manchester
Some useful websites
http://www.justgiving.com -text donations
http://www.givey.co.uk -online social media donations
http://www.missionfish.org.uk e bay for charities
http://www.charitytext.org charity giving website
http://www.themda.org The Mobile Data Association lots of good
information about the mobile technology market useful resource
www.cafonline.org Charities Aid Foundation text donation service
www.nfpsynergy
www.mailchimp.com
http://www.charityservice.org.uk
Acknowledgements
• John Baguley- www.ifc.tc
• Marcy Heim –the Artful Asker
www.MarcyHeim.com
• http://www.sofii.org/
• www.queerideas.co.uk
For more information
Manchester Community Central,
FREEPOST NAT4553
Manchester M60 3BR
Telephone 0333 321 3021
Email [email protected]
Web manchestercommunitycentral.org