Feast or famine - or what charities should be doing to survive the recession

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View this nfpSynergy presentation to find out the ten key ways that charities can survive the recession.

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  • Hi
    Really clear and well presented presentation - I'll borrow some of it in my work with different not-for-profits, giving accreditation to yourselves.
    Thanks again,
    Jim
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  • Congratulations on your slideshow very interesting ! Great work... beautifully presented ! ! Thank you for sharing. I allowed myself to add it to 'GREAT CAUSES and JUST CAUSES' Slideshare group . Feel free to join us. Thank you in advance for your participation and sharing your 'favorites'. .. With friendship from France. Bernard
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Feast or famine - or what charities should be doing to survive the recession

  1. 1. Feast or Famine: the choice is yours (or how can charities survive the recession) Joe Saxton June 2009 Telephone: (020) 7426 8888 e-mail: joe.saxton@nfpsynergy.net Web: www.nfpsynergy.net
  2. 2. A rule, a question and a warning • The rule: most things that are done in a recession would make sense outside a recession • The question: how many donor decisions would it take to lose half your income • The warning: perception is reality when it comes to giving
  3. 3. Ten things to do in a recession….
  4. 4. Step 1: Cut fixed costs • Staff are fixed costs • Focus on support staff • 1 to 10 not 1 to 1 • Create sustainable savings
  5. 5. Step 2: Review variable costs • Print • Travel • IT • Properties • Training • Postage • Consultants • Research
  6. 6. Step 3: Prioritise expenditure which delivers shorter-term results • How long before profitable • How much profit • How much risk
  7. 7. Chart 2: Gestation period vs profit potential for different fundraising techniques High length of time to Legacies reach profitability Charity shops Individual giving Low potential High potential profit profit One-off donation Major donors Tin-rattling Short length of time to reach profitability
  8. 8. Step 4: Create a balanced portfolio of risk and return
  9. 9. Risk vs return matrix for different fundraising techniques Increasing donation size Major donors Lower returns if Direct Higher return if appeal is successful debits appeal is successful Low risk of raising High risk of One-off nothing raising nothing donation Tin-rattling Decreasing donation size
  10. 10. Step 5: Have a clear income strategy • Helps decide the most importance activities • Helps makes decisions about where to invest resources • Stops tactical responses to the latest opportunities • What are your top five priorities for the coming year?
  11. 11. Developing ideas for growing your income • The next chart helps identify the options • The key is to systematically explore each of the options – using brainstorming, desk research and competitor analysis (and brutal self analysis) j
  12. 12. Identifying your strategic options Increasing net income Increase revenue Cut Costs objective 1. Increase revenue objective 2. Increasing income by objective 3. by increasing the Cut fixed or variable costs number of increasing the value of each relationship relationships strategy 3. strategy 6. Get relationships to Cut variable strategy 1. last for longer costs Increase no. from existing strategy 4. markets Increase value of each strategy 7. relationship activity Cut fixed costs strategy 2. Increase no strategy 5. from new Get donors to do markets more each year BRAND-BUILDING ACTIVITIES
  13. 13. Step 6: Remember the three legged stool • Income that’s given • Income that’s earned • Income that’s granted
  14. 14. Step 7: Make everyone a fundraiser • Many of the best fundraisers are not fundraisers – but frontline staff • Fundraising shouldn’t be ghettoised and left to fundraisers • The CEO should lead the fundraising way
  15. 15. Step 8: Be passionate, persuasive and personal
  16. 16. Step 9: Be really clear about your target audiences
  17. 17. Step 10: Start preparing now for the next recession
  18. 18. Any questions?
  19. 19. You can get an edited version of these slides by giving me your business card or emailing me at: joe.saxton@nfpsynergy.net

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