Creative Revenue Generation

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September, 2009 presentation for 130 local nonprofit organizations sponsored by the Knight Foundation and the Community Foundation of Northwest Florida.

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Creative Revenue Generation

  1. 1. CREATIVE REVENUE GENERATION Laura Deaton Credit: MSL Chief, Wikimedia Commons, original work by Jim Boroch
  2. 2. Agenda • The “Bad News” AKA “The Need” • The “Good News” AKA “Creative Revenue Generation Examples” • Break • “Your Turn” AKA Group Brainstorming & Sharing • “The New Normal” AKA Plan B and Questions Photo Credit: Torredibabele, Wikimedia Commons
  3. 3. The Bad News AKA The Need
  4. 4. The Need “…recent and extraordinary turbulence in the financial markets…” “…nonprofit and philanthropic sectors are not immune…” Donors “…will need to make programming decisions that balance commitments with costs…” Nonprofits “…will need to craft creative strategies for strengthening revenue and refocusing effort.” [Letter from Michael Hoffman, CEO, Changing Our World, Inc. to Colleagues - October 2008]
  5. 5. Recent Surveys… • May => Giving USA, 2008 giving 2%, first decline in giving since 1987. • June => Index of Nat’l FR performance, “Direct response giving ” in Q1 2009. • August => Johns Hopkins released findings from April 2009 “sounding” of 363 orgs.
  6. 6. Johns Hopkins Sounding “…All sources declining.”
  7. 7. More than half of responding nonprofits experienced: • Increasing demands for more of their services; • Escalating operating costs; and • Decreasing revenues to meet the higher demands and costs; and More than a third of nonprofits have had to cut their operations. Source : National Council of Nonprofits Economic Stimulus and Recovery, Special Report 8, August 10, 2009.
  8. 8. A Perfect Storm • 83% reported some level of fiscal stress. • ~40% considered said “severe” or “very severe” – 73% for theatres and orchestras – 30% for those serving children and aging families • Particularly hard on mid-sized orgs http://www.ccss.jhu.edu/pdfs/LP_Communiques/LP_Communique_14.pdf
  9. 9. Impressive Resilience • Those reporting “severe” or “very severe” lower now than post 9/11 (37% vs. 51%) • Except for arts orgs, majority reporting fiscal stress is “minimal” or “moderate”. • More than two-thirds “successful” or “very successful” in coping. • Nearly three-fourths of the organizations reported being able to maintain or actually increase the number of people they serve, and this was especially true of service to vulnerable populations. http://www.ccss.jhu.edu/pdfs/LP_Communiques/LP_Communique_14.pdf
  10. 10. A Range of Coping Strategies • New or Expanded Fundraising efforts • Stepping Up Marketing and Advocacy • Belt Tightening
  11. 11. Photo Credit: Flickr: Herkie
  12. 12. The Good News CREATIVE REVENUE GENERATION Specific Examples Photo: avmeier, wikimedia commons
  13. 13. Specific Examples RETAINING EXISTING SUPPORTERS
  14. 14. Simple Strategies – Monthly Payment Plans • College students: $5/month = $60 • Young adults: $10/month = $120 • Regular adult donors: $20 = $240 • “Major” donors: $100 = $1200
  15. 15. From Asking Properly: The Art of Creative Fundraising by George Smith, © G. Smith/White Lion Press Limited.
  16. 16. From Asking Properly: The Art of Creative Fundraising by George Smith, © G. Smith/White Lion Press Limited.
  17. 17. Photo Credit: Flickr:LongLiveRock Specific Examples ENGAGING DONORS DIRECTLY
  18. 18. Thank You Calls – Covenant House • Direct mail decline of 20% • Decided to strengthen connections • Had youth call to thank and invite to an open house • Twice as many people came to take tours • Size of gifts increased by 50% http://online.wsj.com/article/SB124025204612335931.html Flickr:Casie Yoder
  19. 19. Donor Roundtables
  20. 20. Specific Examples MAKING EVENTS STILL WORK
  21. 21. http://www.crainsdetroit.com/article/20090615/EMAIL01/906159990#
  22. 22. Pittsburgh
  23. 23. Specific Examples LEVERAGING VOLUNTEERS
  24. 24. Volunteers -Special Olympics • Facing $33.5M budget shortfall before World Winter Games in Idaho. • Cut plans for paid staff in half • Tapped volunteers from National Guard, Defense Dept. AmeriCorps, and other nonprofits. • Instead of training volunteers on-site for two weeks (costly), found a company to design a free online training program for them. Flickr:ForeverSouls
  25. 25. Source: http://socialreporter.com/?p=516
  26. 26. Specific Examples ASKING IN NEW WAYS
  27. 27. Thank You Notes – Teachers’ Supply Closet • Thank you notes from kids with a donation envelope enclosed.
  28. 28. YouTube • charity:water raised $10,000 in one day • Includes donate button, call-to- action overlay, channel listings, ability to request volunteer film- making support • Film school? http://www.youtube.com/nonprofits
  29. 29. Simple Strategies – Ask More Frequently •Huge increased demand for services •Scheduled one week in August •Each of the 39 centers hoped to raise $40K http://cityroom.blogs.nytimes.com/2009/07/13/salvation-army-makes-a-summer- appearance/
  30. 30. One step further… Source: salvationarmatlanta.org
  31. 31. Photo Credit: DarKobra, Wikimedia Commons Specific Examples DASHBOARDING TO MEASURE PROGRESS
  32. 32. Real-Time Dashboards Source: Forge Source: Jan Masoaka, blueavocado.org
  33. 33. Tweet Your Dashboard
  34. 34. FINDING NEW DOLLARS
  35. 35. Specific Examples INCREASING GENERAL AWARENESS
  36. 36. Movie Theatres
  37. 37. Billboards Photo Credit: Flickr:mediaboytodd
  38. 38. Capital Regional Medical Center
  39. 39. Tallahassee Memorial HealthCare
  40. 40. Facebook Fan Page
  41. 41. Best fit is 30-49 age group. Interested in: • Whether or not a nonprofit is successfully making an impact (75%) • Learning about organizations that are actively working on issues and causes they care about (62%) • Success stories and updates on the progress of the nonprofits they support (54%)
  42. 42. Specific Examples FINDING NEW PROSPECTS
  43. 43. Thinking Outside the (Pizza) Box
  44. 44. • Identified “Highly Connected’ Alums, regardless of how much money they gave. • Used Linked-In Profile data to identify alums with warm fuzzies for the school • Developed a process to use Linked-In to keep in- house donor data updated with current information. • Generational sub-lists
  45. 45. Photo Credit: Flickr:Photocapy Specific Examples REVAMPING PROGRAMS
  46. 46. Innovative Income – Joffrey Ballet • 40% decline in ticket sales • Teach dance to the public • Taught in existing space • Between Jan-April, $200K • Increased attendance, too Flickr:oude School
  47. 47. Planning for the Future: Earned Income Strategies • Presented by Cindy Coney, MissionWise • Tuesday, September 29, 8:30a-12 noon • Check-in 8:15 • NOTE: This workshop is targeted for more mature organizations that are better positioned for earned income strategy development.
  48. 48. Expanded Program Definition – Bonnie CLAC • Increased demand for services • Loss of $800 per low- income client • Expanded services up the income ladder • Extra $500 per client to subsidize costs of lower-income
  49. 49. Fee-For-Service Consider charging for previously grant-funded services
  50. 50. Hopelink - Seattle
  51. 51. Ample Harvest - Food Banks
  52. 52. Specific Examples TURNING GIVERS INTO GETTERS
  53. 53. Facebook Causes
  54. 54. Shower Strike
  55. 55. Dumpster Diving
  56. 56. Specific Examples FORGING NEW TERRITORY – EARNED INCOME
  57. 57. FT LAUDERDALE, FL, July 09, 2009 Due to the current real estate market conditions, a Florida couple is raffling off their luxury home in Fort Lauderdale for only $10 per ticket. After the drawing is held, the deed and title to the home will be transferred to the lucky winner (with no mortgage). A portion of the proceeds will go to The Mission of St. Francis.
  58. 58. Specific Examples COLLABORATING IN NEW WAYS
  59. 59. Target Each Other As Customers • Meeting or office space rental • Printing services • In-house designer • IT services • PR • Mailing services Is there a nonprofit from whom we could purchase services?
  60. 60. Event Collaboration • Ballet and orchestra do “Grease” at a local nonprofit theatre and split proceeds. • Youth mentoring org teams up with local Alzheimer’s group to target sandwich generation for a 5K Run/Walk. • Library and PTA team up for donated book drive, and sale. • Staff Swap
  61. 61. Shared Mailing Lists
  62. 62. Advocacy
  63. 63. “Funding for a new program that teaches inner-city youth how to manage money … First Tennessee Bank will present a $35,000 check on July 22 to the Financial Literacy Collaborative…” “The collaborative comprises five nonprofits that operate existing after-school and summer programs for at-risk children…”
  64. 64. Joint Staffing
  65. 65. San Francisco
  66. 66. Transparency - Forge • Changed program model resulted in $100K shortfall Forge founder Kjerstin • Founder blogged about Erickson mistakes, total transparency • $50K foundation donation
  67. 67. THE BALTIMORE SYMPHONY ORCHESTRA
  68. 68. Niche Site http://www.bsomusic.org/bsokids/
  69. 69. Appendix SOCIAL MEDIA RESOURCES
  70. 70. Social Media Guidance
  71. 71. Guidelines http://sncr.org/bestpractices/
  72. 72. How to Reach Me • Laura Deaton, Full Glass Consulting • Phone: 888-784-3433 • Email: laura.deaton@fullglassconsulting.com

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