Asking Rights

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Why are some nonprofits successful at attracting funding while others struggle? How do funders differentiate between the myriad of nonprofits that want their money? How has the process of successfully approaching funders changed? This cutting edge webinar, based on the practical experience of hundreds of successful funding campaigns, examines the fundraising process from the other side of the desk, that of the funders, and illustrates the techniques that work in today’s economic environment, all designed to help you earn Asking Rights™.

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Asking Rights

  1. 1. Asking Rights Tom Ralser October 30, 2013 Twitter Hashtag - #4Glearn Part Of: Sponsored by:
  2. 2. INTEGRATED PLANNING Advising nonprofits in: • Strategy • Planning • Organizational Development Part Of: www.synthesispartnership.com (617) 969-1881 info@synthesispartnership.com Sponsored by:
  3. 3. Coming Soon Part Of: Sponsored by:
  4. 4. Today’s Speaker Tom Ralser Principle Convergent Nonprofit Solutions Assisting with chat questions: Jamie Maloney, 4Good Part Of: Founding Director of Nonprofit Webinars and Host: Sam Frank, Synthesis Partnership Sponsored by:
  5. 5. Asking Rights TM Nonprofits have the legal right to ask for money
  6. 6. Asking Rights TM Nonprofits have the obligation to ask for money
  7. 7. Not all nonprofits have Asking Rights
  8. 8. Many have not earned the right to ask for money
  9. 9. “Son, what gives you the right to ask me for money?”
  10. 10. The Genesis Unique position to see macro trends and common denominators  Experience (500+ projects)  National projects and local projects, nationally  All types (arts & culture, human services, economic development, education, health, etc.)
  11. 11. Had to Ask . . . Why do some projects experience wild success, while others struggle?
  12. 12. It Came Down to This: Because they did not have Asking Rights!
  13. 13. Asking Rights TM What are they?
  14. 14. Asking Rights TM The ability to deliver outcomes that are valuable to investors
  15. 15. Asking Rights TM Actually deliver on promises, not print glossy brochures that repeat your mission Ability to deliver outcomes that are valuable to investors
  16. 16. Results in terms of impact on customers’ lives, not just measures of activity that tell how the money was spent Asking Rights TM Ability to deliver outcomes that are valuable to investors
  17. 17. Asking Rights TM Ability to deliver outcomes that are valuable to investors Are they meaningful/ desired/coveted/longed for by those whose investment made them possible?
  18. 18. Asking Rights TM Ability to deliver outcomes that are valuable to investors Those who make the outcomes possible. Carries the expectation of performance.
  19. 19. Key Concepts  Outcomes are correlated to funding  Investors are different  Emotional and Rational Camps
  20. 20. Outcomes Are Correlated to Funding Theoretical concepts can appeal to common sense: the Laffer Curve TAX REVENUE TAX RATE
  21. 21. FUNDING Outcomes Are Correlated to Funding OUTPUTS OUTCOMES
  22. 22. Investors Are Different More of a mindset than actual amount of $ A nonprofit investor, like any other investor, NOT donor, who makes a gift! is concerned with a return on that investment Not an impulsive decision, has multi-year commitments
  23. 23. How investors think can be summed up by the following: If you can’t demonstrate results (outcomes), then you do not have the right to ask for money. If you can’t make your outcomes meaningful to me, then you do not have the right to ask me for money.
  24. 24. Emotional and Rational Camps
  25. 25. Motivations
  26. 26. Giving Money to a Nonprofit Emotional Decision ? Rational Decision
  27. 27. Universe of Appeals Emotional Appeals Rational Appeals
  28. 28. Emotional Camp  No information is better than good information  Want the warm glow  We want to be like Warren
  29. 29. Emotional Camp  Sick beats healthy  We want to be winners  Blondes beat brunettes
  30. 30. Rational Camp “The Rokia study points to a real danger in the movement to encourage donors to give more rationally. While most everyone would like to see donors allocate their money based on a logical understanding of the problems they hope their gifts will solve, it turns out that encouraging donors to act this way may thwart their natural urge to give.”
  31. 31. Emotional "Proof"  Participants were given 5 $1 bills  Could give one to five dollars  Four scenarios with Identifiable victims and/or statistical victims
  32. 32. Conclusion The more statistical information people were given, the less generous they became
  33. 33. The Rest of the Story It's not that the studies are wrong, it's that they are studies!
  34. 34. Refuting Rokia  Small amounts of money  Artificial circumstances  Subjects not personally connected to the cause  Only deal with individuals, not boards or families
  35. 35. Refuting Rokia Somewhat risky to base your funding strategy on privileged twentysomethings that made trivial decisions about insignificant amounts of money that was just given to them
  36. 36. Can't Make the Leap  These exercises have little to do with the outcomes delivered by the organization  The conclusion has become perverse
  37. 37. Universe of Appeals Sweet Spot = Largest Investments Emotional Appeals Rational Appeals
  38. 38. Commonalities  On an individual level, easy to spot  Collectively, more difficult
  39. 39. Asking Rights The Ingredients/Formula 1. Outcomes 2. Credibility
  40. 40. Asking Rights The Ingredients/Formula Outcomes + Credibility = Asking Rights These accounted for most, but not all successes
  41. 41. Asking Rights The Ingredients/Formula Outcomes + Credibility + Fundraising Skills = Asking Rights
  42. 42. Asking Rights The Ingredients/Formula C + F + O = AR
  43. 43. Asking Rights The Ingredients/Formula Let’s define each component C+F+O
  44. 44. Asking Rights Examples of Success Strongest Component: Credibility Type of Organization: Value-added Transitional Housing Campaign Goal: $6.5 million
  45. 45. Asking Rights Examples of Success Strongest Component: Fundraising Skills Type of Organization: National Sports Hall of Fame Campaign Goal: $6 million
  46. 46. Asking Rights Examples of Success Strongest Component: Outcomes Type of Organization: Youth Services Campaign Goal: $1.35 million
  47. 47. Asking Rights Examples of Struggle Weakest Component: Credibility Type of Organization: Museum of Art and Science Campaign Goal: $6.5 million
  48. 48. Asking Rights Examples of Struggle Weakest Component: Fundraising Skills Type of Organization: International Institution of Higher Education Campaign Goal: $2 million
  49. 49. Asking Rights Examples of Struggle Weakest Component: Outcomes Type of Organization: Startup Health Services Campaign Goal: $6.5 million
  50. 50. Asking Rights The Recipe The Investment-Driven Model™
  51. 51. The Recipe 1. Discovering Investor Motivations 2. Translating Your Outcomes to Value 3. Matching Your Value to Investor Motivations 4. Using Campaign Dynamics to Maximize Funding
  52. 52. Emotional, rational, both? The Recipe Ask’em 1. Discovering Investor Motivations Investable Outcomes™ 2. Translating Your Outcomes to Value 3. Matching Your Value to Investor Motivations 4. Using Campaign Dynamics to Maximize Funding Often done backwards More art than science
  53. 53. Speaking of Motivations… Why Do You Give?
  54. 54. Worksheet 1 Why Do You Give? Please circle one response per question 1. When are you most likely to give? A. B. C. D. E. When asked in person When asked by telephone When asked by mail When asked by email When asked by social media 2. When asked in person to give, in which situation are you most likely to give? A. When someone you know asks you to give B. When someone you do not know personally, but representing a nonprofit that you are familiar with, asks you to give C. When someone that you do not know personally, representing a nonprofit that you are not familiar with, asks you to give 3. Which of the following is most likely to cause you to invest in a nonprofit? A. A hand-written letter from an acquaintance (not a personal friend) B. A form with predetermined financial levels that you can check C. A note with a small gift (value under $5) D. A brochure with a picture of a person in need looking directly at you 4. Which of the following is most likely to cause you to invest $25 in a nonprofit? A. A cause with which you identify B. Being asked by someone you know 5. Which of the following is most likely to cause you to invest $500 in a nonprofit? A. A cause with which you identify B. Being asked by someone you know 6. Which of the following is most likely to cause you to invest in a nonprofit? A. A nonprofit that you identify with, but are not sure they are delivering valuable results B. A nonprofit that you do not identify with, but are confident they are delivering valuable results
  55. 55. Summarizing Your Attributes 1. What channel(s) do you believe to be most effective? (#1) 87% when asked in person 2. What situation(s)? (#2) 85% when know the person asking 3. What medium(s)? (#3) 61% when not in person, a hand-written note
  56. 56. Which of the following is most likely to cause you to invest $25 in a nonprofit? A. A cause with which you identify 55% B. Being asked by someone you know 38%
  57. 57. Which of the following is most likely to cause you to invest $500 in a nonprofit? A. A cause with which you identify 64% B. Being asked by someone you know 27%
  58. 58. Which of the following is most likely to cause you to invest in a nonprofit? A. A nonprofit that you identify with, but are not sure they are delivering valuable results 25% B. A nonprofit that you do not identify with, but are confident they are delivering valuable results 73%
  59. 59. Bottom Line 1. Cause trumps personal channel, even more so as amounts goes up 2. Results trump cause
  60. 60. Which is why the One Sentence Introduction of Asking Rights is this:
  61. 61. Takeaways  Outcomes are correlated to funding  There are alternatives to the old fallback of emotional appeals and volunteer asks  Don’t be afraid of rational motivations  The right ingredients, combined into the right recipe, make for a highly sustainable organization
  62. 62. Things to Remember If Nothing Else:  Not everyone has Asking Rights. They are earned, not given just because you are a nonprofit.  Everyone is capable of developing Asking Rights. It just takes effort and an organization-wide commitment.  There is more to Asking Rights than just asking for money. Even though the IRS says you can ask people for money, it does not mean you will be successful at it.
  63. 63. Things to Remember If Nothing Else:  Those that have Asking Rights make their value obvious. These organizations stand apart from the ones that don’t and will have a smoother road to sustainable funding.  It’s more about the right outcomes being valued than how the value is determined. It’s not how good your aim is, but whether you are aiming at the right targets.  An investor’s motivations are different than a donor’s. Ignore this at your own peril.
  64. 64. Learn more about Asking Rights Follow us online for exclusive Asking Rights excerpts, insights, and discussions, as well as staying up to date on book release details, special offers, and future speaking events. @FundingResults #AskingRights Facebook.com/ConvergentNonprofitSolutions
  65. 65. Thank You! www.ConvergentNonprofit.com TRalser@ConvergentNonprofit.com (800) 886-0280

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