Masters fundraising 101 acu australian catholic university

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  • Link into them
  • If you love animals, this works. If you don’t, it doesn’t. Management stuff and everything else is irrelevant to the masses.
  • Ask for them to complete this. We will come back to it later.
  • Draw a chart and guess where Canadian & US money comes from
  • 01:46Let’s look at America – home of capitalism and the most generous nation on earth
  • 01:48With so many companies doing green stuff, Triple bottom line, - flick through slides
  • 01:58Looking beyond the top 500, we find individuals give $8.2bn. And here CAF show us the small amount corporates give us compared to the amount of effort charities put in.
  • Compassion to the awareness lecture
  • Chart shows how much income has grown in each gift type since 2005Bump in BQ is due to 4-5 big bequests, NOT house price changes
  • 74% recruits are 1 off in 201076% recruits are 1 off in 2010
  • Despite more people being recruited to 1 off, RG and 1 off provide equal 1st yr valueIN 2009, 48% of Yr1 income came from 1 off recruits
  • Bequests are almost certainly key for you. But let’s not scare them like this guy is doing
  • Hang in there, more data to come…
  • We don’t include donors who never give a giftWe take first donation as start date, we look at who’s last donation is within the one year of that first donation date******************************CR Notes:Most donors 25-34Lowest attrition in older donors
  • Ask if any Buddhists. Tell me about bequest program
  • 114 year old Besse Cooper.Draw the age chart.
  • Warm – it is not either or, but for cold it is only MAIL – except Honeymoon
  • Interestingly, investment level in rg/mg has a great correlation with growth – but what do you think is the most important variable…in other words, which of these variables when plotted next to growth over last decade has the best correlation
  • It is how much they spend on fundraising. Technique second, but I reckon mistakes would be close too.
  • Tell me about your mail program
  • Tell me about your mail program
  • One of the most expensive packs I have ever seen…
  • Why are you not doing F2F?
  • Do targeting graph
  • Qualitative research shows donors care. Quote some numbers.
  • 02:53If growth is driven by individuals – what about you!?
  • Every stand up – any one write this?
  • http://seantriner.blogspot.com/2008/10/cost-effectiveness-could-be-end-of-your.html
  • Explain research I was doing – not discounted for inflationMention endowment
  • Masters fundraising 101 acu australian catholic university

    1. 1. • Proposed overview for ACU fundraising day • The market – who raises what, how – Using actual transactional data from Benchmarking study of 68 major charities and annual reports of another 100 or so • Types of non-governmental fundraising, pros, cons and scale – Corporate, trusts, events, face to face, major donors, mail, phone, online, mobile – Including breaking these down into types of campaign • Brand and propositions – Developing the offer – how to motivate – The essence of great story telling • Budgeting • Managing upwards – the barriers to growth – Boards, cost of fundraising issues, unrealistic expectations • All illustrated with case studies • Interaction would be through lots of questions from me, then group work looking at fundraising mix, branding, proposition and story telling (which will be their favourite bit); mixing people up so that they are not in the same groups as their colleagues.
    2. 2. About me
    3. 3. About me
    4. 4. ©Pareto Fundraising
    5. 5. What about you? Introductions…
    6. 6. The Most Important Thing in Fundraising • Maths. (Sorry).
    7. 7. But maths doesn’t work without a cause
    8. 8. Tell me about your cause
    9. 9. But maths doesn’t work without a cause • Your brand must be about your beneficiaries • Every single communication should reinforce this brand position – including what you just told me • Lets look at your charities’ website (or your favourite charity’s)
    10. 10. Charities that do it well from the start • Cancer Council NSW • Make a Wish • Oasis (Salvation Army)
    11. 11. Every Single person In a charity needs to tell STORIES
    12. 12. ANALYTICAL -Your Growth - Your donor Behaviour -Used for targeting ENVIRONMENTAL -How much is given - Growth - Competition PERSONAL -Transactions - Legacy status - Pet name STRATEGIC DATA - informs TECHNICAL DATA - used
    13. 13. Focus Groups Focus GroupsI
    14. 14. Focus Groups Focus GroupsI For actually marketing bequests!
    15. 15. Questions for you as a donor Prefer email or mail? How often? Which pack?
    16. 16. The Big Picture
    17. 17. Write Down : Where does non-Gov charity money come from? Corporate donations Trusts / Foundations Legacies / Bequests Events Individuals NOT Government © Pareto Fundraising
    18. 18. INDIVIDUAL DONORS IN YOUR FUNDRAISING MIX Group work
    19. 19. The Big Picture Overall Fundraising Strategy
    20. 20. The Big Picture Overall Fundraising Strategy Government
    21. 21. The Big Picture Overall Fundraising Strategy Government Trusts & foundations
    22. 22. The Big Picture Overall Fundraising Strategy Government Trusts & foundations Consider Corporate & Events
    23. 23. “Chasing the corporate dollar”
    24. 24. Source and © Giving USA Foundation ™ Giving in the USA
    25. 25. Source and © Giving USA Foundation ™ Giving in the USA
    26. 26. Source and © Giving USA Foundation ™ Giving in the USA
    27. 27. Source and © Giving USA Foundation ™ Giving in the USA
    28. 28. CAF Charity Trends, 2006 Source and © Charities Aid Foundation, Charity Trends 2006 $16bn $1.8bn
    29. 29. Giving in the USA, 2009 Source and © Giving USA Foundation ™ Column1 0 0% Corporations $14.50 5% Foundations $41.21 13% Bequests $22.66 7% Individuals $229.28 75%
    30. 30. Growth from Individuals $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 1995-6 1996-7 1997-8 1998-9 1999-00 2000-1 2001-2 2002-3 2003-4 2004-5 2005-6 Ind Non-Ind
    31. 31. My last job GBP ('000) Income Inc/ F'Raiser Income Inc/ F'Raiser Bequests 871 871 1,154 1,154 Trusts and Foundations * 1,412 1,412 1,892 757 Direct Marketing 1,309 261 1,878 375 Corporate 62 62 170 68 * 60% comes from the National Lottery Case Study - MIND (UK - Largest Mental Health Charity) 1999/00 2002/03
    32. 32. The Big Picture Overall Fundraising Strategy Government Trusts & foundations Consider Corporate & Events
    33. 33. The Big Picture Overall Fundraising Strategy Government Trusts & foundations Consider Corporate & Events Consider Associations, g roups
    34. 34. The Big Picture Overall Fundraising Strategy Government Trusts & foundations Consider Corporate & Events Consider Associations, g roups Individuals – Long term growth
    35. 35. The Big Picture Overall Fundraising Strategy Government Trusts & foundations Consider Corporate & Events Consider Associations, g roups Individuals – Long term growth The Giving Constituency
    36. 36. The Big Picture Overall Fundraising Strategy Government Trusts & foundations Consider Corporate & Events Consider Associations, g roups Individuals – Long term growth The Giving Constituency Bequests / Legacies Major Donors Regular Giving
    37. 37. Regular Giving Long Term Growth Individual giving is currently the ONLY long term solution for growth Individuals – Long term growth Donor care Major Donors Bequests
    38. 38. Charity Begins at Home…?
    39. 39. $- $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 Top Aus charities >$20m f/r income (exc Unis) from annual reports
    40. 40. Charity Begins at Home…?
    41. 41. Let’s leave Powerpoint
    42. 42. Individual Giving Trends Data
    43. 43. Gross income by year $0 $50 $100 $150 $200 $250 $300 $350 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Income Millions Year Gross Individual Giving Income by Year Bequest Cash Regular Gift PFBM9_IncomeSummary_v1.xlsm
    44. 44. 0 50 100 150 200 250 300 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 12 Month Moving Income Index by Gift Type 12 Months to Dec 05 = 100 Bequest Cash Regular Gift PFBM9_IncomeSummary_v1.xlsm
    45. 45. New Recruits 53 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2004 2005 2006 2007 2008 2009 2010 2011 Cash Regular Gift PFBM9_Analysis_ALL_v5.xlsm 34% 66% 32% 68%
    46. 46. New Recruits Value (1st yr value) $0 $5 $10 $15 $20 $25 $30 $35 $40 2004 2005 2006 2007 2008 2009 2010 Millions Cash Regular Gift PFBM9_Analysis_ALL_v5.xlsm 43% 57% 43% 57%
    47. 47. Average bequest by year $54 $57 $57 $53 $60 $59 $49 $50 $46 $50 $0 $10 $20 $30 $40 $50 $60 $70 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 Average Bequest Amount Thousands Year PFBM9_IncomeSummary_v1.xlsm
    48. 48. The Second Most Important Thing in Fundraising • Maths. (Sorry, but again it is)… Age. why is age important in fundraising?
    49. 49. The only two STRATEGIC ways to raise $ from young people (<45 years). Number 1. Face to Face fundraising*
    50. 50. The only two STRATEGIC ways to raise $ from young people (<45 years). Number 2 Wait 20-40 years
    51. 51. The only single STRATEGIC ways to raise $ from even younger people (<30 years). Number 2 Wait even longer
    52. 52. 1 off income by channel of solicitation $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Income Millions Year IndividualGross Cash Income by Solicitation Channel Direct Mail Media Online Other Phone PFBM9_IncomeSummary_v1.xlsm
    53. 53. Individual RG income by channel of solicitation Base: All giving $0 $20 $40 $60 $80 $100 $120 $140 $160 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Income Millions Year RG Income (Year & Channel of Solicitation) Direct Mail Face to Face Media Online Other Phone 2Step PFBM9_IncomeSummary_v1.xlsm
    54. 54. F2F recruit Yr1 attrition by Age 51% 48% 41% 35% 30% 28% 31% 28% 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 0% 10% 20% 30% 40% 50% 60% 18-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ Year1 Attrition Recruits PFBM10_AdditionalAnalysis_v2.xlsm Av age at acquisition: 36 One year active: 38 All active F2F donors: 42
    55. 55. The last gift
    56. 56. Older is better
    57. 57. Acquisition methods: pros and cons
    58. 58. • Massive! • The only way to get committed donations from younger people • A brand new audience • Added more money to charity coffers than anything else in last ten years • Getting a supplier is a nightmare • Don’t bother trying to do it yourself • Cash flow issues • Minimum investment >$100,000 Pros Cons
    59. 59. Average five yr RG Gift Value Base: All DM & F2F regular giving recruits Direct Mail Face to Face Year5 Inc $174.80 $91.99 Year4 Inc $180.33 $106.09 Year3 Inc $163.44 $124.24 Year2 Inc $178.17 $155.83 Year1 Inc $194.18 $231.78 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 Year of recruitment Value to Date - F2F Recruits (All)
    60. 60. • Dynamic – can test and adjust fast • Great to adjust in emergency • Volumes can be ramped up • Plenty of experience in the market • Donors upgrade by phone • New Audience • Cash and RG both work • Takes a while to get satisfactory ROI • Needs constant management, every hour • Lower volumes than F2F Pros Cons
    61. 61. • Dynamic – can test and adjust fast • Great to adjust in emergency • When it works – very, very cheap cost per donor possible • High visibility • Non traditional donor market • Very hard to get working • Lower loyalty • Needs mail and phone to keep donors giving • Distraction for younger fundraisers • Limited bequest potential (but better than F2F) Pros Cons
    62. 62. • Targeted Reach / High frequency • High Awareness • Engages 2/5 Human Sensory Attributes • Visual Representation of ‘the Need’ • Storytelling 60/30/15sec • Targeted Placement • Direct Response • Increasingly Fragmented • Cluttered Environment at specific times of year (i.e. Christmas) • Rising costs Pros Cons
    63. 63. • ‘Call to Action’ in conjunction with other media • Low Cost Channel • No Visual Storytelling • Difficult to Highlight ‘the Need’ • Low volume Pros Cons
    64. 64. • Proven track record and going through renaissance • Older donors (new audience for WV & bequest potential) • Brilliant ROI on rollouts • Story telling • Reaches more targeted people than anything else • ~ RG conversion prospect • Great passive advocacy opportunity • Tough to get it working at first • Success heavily reliant on creative • Finite lists • Growing competition • Best results are now • Mostly single gift donors Pros Cons
    65. 65. Variables for growth • Region • Type – Health, developing, etc • Age • Fundraising Technique • Legacy presence • Internet presence • Twitter traffic • Fundraising expenditure • Awareness • PR / celebrity involvement • Consultant / supplier ?
    66. 66. Variables for growth • Region • Type – Health, developing, etc • Age • Fundraising Technique • Legacy presence • Internet presence • Twitter traffic • Fundraising expenditure • Awareness • PR / celebrity involvement • Consultant / supplier
    67. 67. Using the Mail
    68. 68. Some weird stuff…
    69. 69. Dos and don’ts in the mail Your thoughts…
    70. 70. Your favourite charity…. How often do you want to get mailed?
    71. 71. The only two STRATEGIC ways to raise $ from young people (<45 years). Number 1. Wait twenty to thirty years
    72. 72. Three reasons it all fails 1 Brand nonsense
    73. 73. Awareness
    74. 74. Three reasons it all fails 2 Cost control
    75. 75. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Gross COF Cost of fundraising year on year…
    76. 76. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Gross COF Cost of fundraising year on year… Massive investment in acquisition
    77. 77. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Gross COF Cost of fundraising year on year v net
    78. 78. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Gross COF Cost of fundraising year on year v net Maintained slight growth in net – money to spend on cause
    79. 79. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Gross COF Cost of fundraising year on year v net Maintaining acquisition, but rewards of year 2 acquisition beginning to show through
    80. 80. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Gross COF Cost of fundraising year on year v net Decided to STOP acquisition for one year – nearly $1.5m bonanza for capital projects and service development – COF plummets
    81. 81. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Gross COF Cost of fundraising year on year v gross
    82. 82. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Gross COF Cost of fundraising year on year v gross Reduced acquisition leads to slight decline in gross
    83. 83. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Gross COF Cost of fundraising year on year v net v gross
    84. 84. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Net Gross COF Cost of fundraising year on year v net v gross Growth phase complete – charity stabilises, but still acquiring more donors than losing, hovering around 0.4 cost of fundraising
    85. 85. Three reasons it all fails 3 unrealistic expectations
    86. 86. Fundraising v Other Investments 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 Property capital gain @ 8.4% Leaving in investments @ 10% Good fundraising program Five Year ROI
    87. 87. Linked In
    88. 88. THANK YOU

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