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 Presentation Transcript

  • 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. About me
  • 3. About me
  • 4. ©Pareto Fundraising
  • 5. What about you? Introductions…
  • 6. The Most Important Thing in Fundraising • Maths. (Sorry).
  • 7. But maths doesn’t work without a cause
  • 8. Tell me about your cause
  • 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. Charities that do it well from the start • Cancer Council NSW • Make a Wish • Oasis (Salvation Army)
  • 11. Every Single person In a charity needs to tell STORIES
  • 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. Focus Groups Focus GroupsI
  • 14. Focus Groups Focus GroupsI For actually marketing bequests!
  • 15. Questions for you as a donor Prefer email or mail? How often? Which pack?
  • 16. The Big Picture
  • 17. Write Down : Where does non-Gov charity money come from? Corporate donations Trusts / Foundations Legacies / Bequests Events Individuals NOT Government © Pareto Fundraising
  • 18. INDIVIDUAL DONORS IN YOUR FUNDRAISING MIX Group work
  • 19. The Big Picture Overall Fundraising Strategy
  • 20. The Big Picture Overall Fundraising Strategy Government
  • 21. The Big Picture Overall Fundraising Strategy Government Trusts & foundations
  • 22. The Big Picture Overall Fundraising Strategy Government Trusts & foundations Consider Corporate & Events
  • 23. “Chasing the corporate dollar”
  • 24. Source and © Giving USA Foundation ™ Giving in the USA
  • 25. Source and © Giving USA Foundation ™ Giving in the USA
  • 26. Source and © Giving USA Foundation ™ Giving in the USA
  • 27. Source and © Giving USA Foundation ™ Giving in the USA
  • 28. CAF Charity Trends, 2006 Source and © Charities Aid Foundation, Charity Trends 2006 $16bn $1.8bn
  • 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. 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. 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. The Big Picture Overall Fundraising Strategy Government Trusts & foundations Consider Corporate & Events
  • 33. The Big Picture Overall Fundraising Strategy Government Trusts & foundations Consider Corporate & Events Consider Associations, g roups
  • 34. The Big Picture Overall Fundraising Strategy Government Trusts & foundations Consider Corporate & Events Consider Associations, g roups Individuals – Long term growth
  • 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. 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. 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. Charity Begins at Home…?
  • 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. Charity Begins at Home…?
  • 41. Let’s leave Powerpoint
  • 42. Individual Giving Trends Data
  • 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. 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. 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. 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. 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. The Second Most Important Thing in Fundraising • Maths. (Sorry, but again it is)… Age. why is age important in fundraising?
  • 49. The only two STRATEGIC ways to raise $ from young people (<45 years). Number 1. Face to Face fundraising*
  • 50. The only two STRATEGIC ways to raise $ from young people (<45 years). Number 2 Wait 20-40 years
  • 51. The only single STRATEGIC ways to raise $ from even younger people (<30 years). Number 2 Wait even longer
  • 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. 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. 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. The last gift
  • 56. Older is better
  • 57. Acquisition methods: pros and cons
  • 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. 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. • 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. • 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. • 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. • ‘Call to Action’ in conjunction with other media • Low Cost Channel • No Visual Storytelling • Difficult to Highlight ‘the Need’ • Low volume Pros Cons
  • 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. 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. 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. Using the Mail
  • 68. Some weird stuff…
  • 69. Dos and don’ts in the mail Your thoughts…
  • 70. Your favourite charity…. How often do you want to get mailed?
  • 71. The only two STRATEGIC ways to raise $ from young people (<45 years). Number 1. Wait twenty to thirty years
  • 72. Three reasons it all fails 1 Brand nonsense
  • 73. Awareness
  • 74. Three reasons it all fails 2 Cost control
  • 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. $- $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. $- $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. $- $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. $- $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. $- $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. $- $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. $- $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. $- $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. $- $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. Three reasons it all fails 3 unrealistic expectations
  • 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. Linked In
  • 88. THANK YOU