This session will look at the perfect storm that faces the sector, the key areas of focus for leaders and the cultural change that is fundamental to building a sustainable future for your organisation. The disruption currently being caused by new technologies and digital communication is huge. Whole sectors such as publishing, financial services and retail are experiencing seismic change with many long established brands falling by the wayside as they struggle to adapt to the new market context. The challenge facing the not-for-profit sector is no less real and pressing, and it is the responsibility of leaders within the sector to fully embrace the need for change and transformation that digital engenders.

1. PROGRESSIVE LEADERSHIP IN A
DISRUPTIVE DIGITAL AGE
Nick Torday
@nicktorday

2. @nicktordayfundraisingonline.com
The components of a perfect storm
● Huge market disruption caused by technology
● Customer / supporter behaviours have changed radically
● Reputational integrity of the sector is under threat
● New data regulatory framework imminent (in the UK)

3. @nicktordayfundraisingonline.com
“Digital technology has fundamentally
changed two things: the dynamics of the
markets in which you operate and the speed
needed to remain competitive and relevant.”
Forrester Research, December 2015

4. @nicktordayfundraisingonline.com

5. @nicktordayfundraisingonline.com
Market context

6. @nicktordayfundraisingonline.com
“A key challenge identified in the 2015 Index is the
continued lack of engagement with digital amongst many
charities. Over half of all charities do not believe that
having a website would help increase their funding and
nearly 70% state the same about social media. With the
level of basic digital skills falling, in contrast with UK
trends, attitudes are of key concern.”
Lloyds Bank UK Business Digital Index 2015

7. @nicktordayfundraisingonline.com
UK: Charities marketing spend vs total marketing spend: 2007

8. @nicktordayfundraisingonline.com
UK: Charities marketing spend vs total marketing spend: 2009

9. @nicktordayfundraisingonline.com
UK: Charities marketing spend vs total marketing spend: 2012

10. @nicktordayfundraisingonline.com
Tracking ROI
● For 77% of the overall marketing spend, DM has represented 9% of overall
annual growth in voluntary income
● For 2% of the overall marketing spend, Digital has represented 6.2% of
overall annual growth in voluntary income
Source: Institute of Fundraising 2013 Fundratios Report

11. @nicktordayfundraisingonline.com
Leadership

12. @nicktordayfundraisingonline.com
Digital leadership
● Rise of the Chief Digital Officer in commercial sectors
● No equivalent roles in charity sector (a few CIOs)
● In 2015 alone, 10 CDOs have gone on to become CEO
● Charities Aid Foundation (CAF) Social landscape study: sector CEOs ranked
digital as 16th out of 18 in their strategic priorities

13. @nicktordayfundraisingonline.com
Core themes to consider
● Sector leadership is not recognising the digital opportunity
● Responsibility for the process has been delegated away from senior levels
● Digital leaders are often focused on delivery not strategy
● Siloed working means limited collaboration between digital and fundraising

14. @nicktordayfundraisingonline.com
Digital trustees?
● Very patchy tech / digital representation at board level
● Only 2.1% of trustees are under the age of 30, the average age being 57
● Tendency to risk aversion - tech investment usually has a chunky price tag
● Specialist recruitment is a challenge but essential

15. @nicktordayfundraisingonline.com
Governance checklist

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Checklist for good governance
Does your organisation:
● Have the right skills and capabilities?
● Ensure that audience needs drive commissioning?
● Have a consensus around organisational priorities?
● Have effective workflow in place?
● Have good internal comms and collaboration?

17. @nicktordayfundraisingonline.com
Blurring boundaries
● The lines between digital, marcomms and IT are becoming increasingly
blurred - this is largely a good thing
● However, there are still disconnects between fundraising, digital and data
functions that result in massive missed opportunities

18. @nicktordayfundraisingonline.com
What the new looks
like...
charity: water

19. @nicktordayfundraisingonline.com

20. @nicktordayfundraisingonline.com
charity: water in numbers
● 10 years old
● Turnover of $44m in 2014/15
● 100% model - every cent raised spent on delivering water
● Operational costs (approx $9m) paid by corporate partners
● Funded 16,000 clean water projects, reaching 5m people

21. @nicktordayfundraisingonline.com
charity: water - innovative model for the sector
● More tech start-up than traditional NGO
● Fully engaged with ‘millennials’ - a digital first mission
● Highly transparent and data-driven
● Innovation in service delivery - well monitors
● Micro-financing & crowdfunding models

22. @nicktordayfundraisingonline.com
What can you do?

23. @nicktordayfundraisingonline.com
It has to start with you...
● Take full ownership of the digital agenda
● Open up the pathways to management for digital and technology ‘natives’
● Bring digital planning to the heart of the strategic process in fundraising
● Set yourself and your team clear KPIs around digital transformation

24. @nicktordayfundraisingonline.com
Be prepared to learn
● Seek guidance and mentoring from your peers in other sectors - who has adapted
well to digital and how?
● Bring in industry expertise at board level - actively address the skills imbalance
● Acquire enough knowledge to be comfortable with the strategy, not the
implementation - and the semantics!

25. @nicktordayfundraisingonline.com
Unpick the DNA
● This is the hardest part - if your organisation is over 50 years old, the
cultural behaviours will be hard to change
● Be brave - it is no longer acceptable for people to be fearful of or
obstructive to technological innovation
● Lead by example: develop pilot innovation programs that meet specific
needs and demonstrate how you can evolve

26. THANK YOU!