Strategies for fund raising by Grace Raja

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Strategies for fund raising by Grace Raja

  1. 1. Strategies for Fund Raising VOLUNTARY SECTOR By P. Grace Raja
  2. 2. Why Fund Raising at all?  SURVIVAL, EXPANSION AND DEVELOPMENT  REDUCING DEPENDENCY  SHIFTING OF INTERNATIONAL RESOURCES  POTENTIAL WITHIN INDIA  FLEXIBLE FUNDS AND PLANNED AGENDA  ENCOURAGING OTHER DONORS TO CONTRIBUTE  PROSPECT RESEARCH  VIABLE AND SUSTAINABLE ORGANISATION
  3. 3. Motivations to Give  SOCIAL PARTICIPATION AND CHARITABLE GIVING  WEALTH AND GIVING BY THE NUMBERS.  PEOPLE GIVE TO PEOPLE.  FOUNDATIONS GIVE TO FULFILL THEIR MISSION.  CORPORATIONS GIVE TO HAVE A RETURN ON THEIR INVESTMENT.  PUBLIC INSTITUTIONS GIVE TO IMPLEMENT THEIR PUBLIC POLICIES.  CORPORATE SOCIAL RESPONSIBILITY (CSR)  TAX  LOCAL COMMUNITY RELATIONS  MARKETING AND IMAGE BUILDING  SOME DONORS FEEL THEY ARE BEING ASKED FOR DONATIONS TOO FREQUENTLY
  4. 4. Key Principles of Fundraising  THE PERSONAL APPROACH  YOU HAVE TO ASK  UNDERSTANDING THE DONOR’S VIEWPOINT  THE RETURN TO THE DONOR  FUNDRAISING IS A PEOPLE BUSINESS  FUNDRAISING IS SELLING  CREDIBILITY AND PUBLIC RELATIONS  SAYING THANK YOU
  5. 5. Raising Funds through  PROJECTS PROPOSAL WRITING  DIRECT MARKETING  SOCIAL MEDIA, ONLINE FUNDRAISING & TELECALLING  TRADING, AWARENESS EVENTS & SPONSORSHIP PROGRAMME  CORPORATE FUND RAISING – IN KIND, CASH, PARTNERSHIP  EMPLOYEE GROUPS & INDIVIDUAL DONATIONS  SOCIAL CAMPAIGNS, TRAININGS & SEMINARS  DONATION BOXES ,DEFERRED OR PLANNED GIFT  FOUNDATIONS ,INSTITUTIONAL & GOVERNMENT FUND RAISING
  6. 6. Projects Proposal Writing Concepts of proposals • Write for the donor, not yourself • Simple language that is interesting • Clarity and descriptive text • Avoid superlatives • Defense is the worst offense • Friend-raising, not fundraising Components of Proposal Cover Letter Impact Title Page Beneficiaries Summary Sheet Sustainability Project Description Methodology Goals & Objectives Attachments Activities Budget Input & Output Project Description • This is the first (and could be the only) part of the proposal that a busy reviewer will see. • The PD should be a map of the rest of the proposal. • It should be able to stand alone • Give it careful time and effort • Provide a clear statement of the problem. • Describe the factors that have contributed to the problem. • Describe what has and has not worked in the past. • Indicate what needs to be done (by you) now • Never assume the proposal reviewer knows what you know. • Convince the reviewer that the problem is IMPORTANT
  7. 7. Direct Marketing Direct Marketing Tool Box • Direct Mailers • Telemarketing • FTF (Face to Face) • On-line solicitation • DR (Direct Response) TV Direct Mail • Lift Letter • Warm Mail • Banks’ high net worth client lists • Gold card / Diner card lists • Good Magazine subscription lists • Newsletter / Annual Report • Tax-mail • Stories • Corporate/Software/CA/Doctor/Lawyer/Employees lists • Educational and training industry • Finance and Insurance • Textiles and showrooms • Industries, Factories and mills • Clubs and Groups • Production Units • Construction and real estate • BPO/KPO Direct Mail Aspects • Cold Mail • Warm Mail • Thank you Mail • Response Rates • Profitability-RoI
  8. 8. Social Media
  9. 9. Social Media Social media is a conversation online between •your customers • your donors • your volunteers • your employees • your investors • your critics • your fans • your competition.... • anyone who has internet access and an opinion. How should NGOs leverage Social Media? As an NGO, your social media activities should aim at creating awareness, generating interest, encouraging sharing, and enlisting support and participation for your initiatives. The purpose is to first grab attention and then sustain it through compelling communication. Social media is changing our world The power to define and control a brand is shifting from corporations and institutions to individuals and communities. Social Media for Social Good • As an NGO, you work for a cause because you support it with all your heart. • A thankless job at times, you still pursue and persevere because someone, somewhere, is happier because of your efforts and that makes you carry on the good work. • There are people who might want to lend you a helping hand but don’t know where to start; there are people who need your help but don’t know how to reach you. • Reach out to them. Connect with them. • Let your tireless passion for your cause reflect in your social media presence. • Let social media do its bit to energize your efforts for social good. • And if you need someone to help out with it, we are always there!
  10. 10. Online Fundraising
  11. 11. Telecalling Calling on Home Numbers Calling on Office Numbers Calling on Mobiles In-house Outsourced Cold & Warm Very effective for new donors and retention both Backed by cheque pick-up facility Smart communicator- non-intrusive Crisp script Effective even during weekdays 1. Ease of entry - you can reach out the prospects easier than other marketing tools 2. Cost effective - Telemarketers can do more with less time, giving you greater saving an operation cost. 3. Greater interaction - lead generation is a people-oriented profession, so you ought to put your people in the forefront. Talking and interacting with prospects is a must for business. 4. Rapport - talking to business prospects directly can help you establish a better relationship with team 5. Clarity of explanation - be it on the technical issues or clarification of question, it would be much easier to relay them on the phone then email. 6. More data collected - conducting a telemarketing survey can be handy for businesses in need for a more in-depth understanding of market trends and buyer attitudes. 7. Flexibility in sales- you can sell to both you current customers as well as your post customers. If you use it right, then this flexibility will help you earn more leads. 8. More measurable results - At the end of the calls we can mesure the results.
  12. 12. Trading, Awareness Events & Sponsorship Programme Trading -Most fundraising opportunities involve securing a charitable gift to support your work with little or no tangible return for a contribution. Trading is more in keeping with a traditional business where a price is set on the delivery of products and services. This is the mainstay of most social enterprises who work to be sustainable by selling something of value. Awareness Events - Events and activities are an essential and often lucrative part of fundraising for a majority of organisations. As with all fundraising, organising and carrying out fundraising events and activities should be planned strategically. Events and activities are also a way of promoting awareness of the causes and services of the organisations involved. They are also a way other reason of recruiting volunteers, supporters and long-term donors. Inviting existing donors to help organise or to simply attend fundraisers is a good way of keeping them involved in your organisation. Sponsorship Programme - Corporate sponsors can bring revenue and a professional image to a fundraising event. Asking for a corporate fundraising sponsor involves the same process as trying to sell a company a product. You must develop a compelling presentation that gives the company why it should support your cause. It helps to include some kind of value for the company in your presentation, such as having all donations be tax deductible, or promising media exposure in return for being involved in your event.
  13. 13. Corporate Fund Raising Corporate Giving Motivations in India • Philanthropic • Planned Philanthropy • Corporate Social Responsibility (CSR) • Tax • Local Community Relations • Marketing and Image Building • Relationship building with government • Employee Relations Corporate sponsorship can provide a vital source of funding. To secure sponsorship you need to understand what sponsors are looking for and offer benefits and value that meet their needs. Sponsorship is a business relationship that does not end when you receive the money—you need to work hard to ensure that sponsors obtain the benefits they sought. See our advice on seeking corporate sponsorship Ways to corporate give • Sponsorship • Payroll giving • Recycling • Cause related marketing • Staff fundraising • Customer fundraising • Gift in kind • Pro bono • Charitable trusts • Challenge events • HR products
  14. 14. Employee Groups & Individual Donations Employee giving is a simple and effective way for employees to support a cause while building a stronger team. The organization has an opportunity to foster a collaborative and motivated work environment where employees feel engaged and passionate with the company they are employed by. Research has illustrated that companies that support employee fundraising and volunteer activities enhance their public image, boost employee morale and cultivate stronger relationships with communities and stakeholders. Additionally, the following benefits have been identified: • Increased employee motivation and retention • Greater professional development and team- building opportunities • Enhanced collaboration • Positive perception of the organization • Positive public profile Why do individual give away their money ? • Make a difference • Become involved • Help others • Feel good • Recognition • Gratitude •Tax Break The best, most efficient, cost-effective way to raise fund from individual is • The right person... • Ask the right person... • For the right amount of money... • At the right time...
  15. 15. Donation Boxes Or Planned Gift When making collections, carry change in case someone only has a large note that they are not prepared to part with. Wear your cycling equipment or rucksack so no one can walk past you without noticing you (and hopefully contributing). Most charities have their own stickers and collection boxes; collectors must carry collection permits (ask charity); collectors must wear an official badge (ask charity); money must be collected in a sealed tin or envelope; boxes must be opened and money counted in the presence of two or more people; a return must be made by the licensing authority; street collectors may not cause an obstruction or solicit activity for money (don't rattle tins). Contributions in the form of goods or professional services can be a great asset to an NGO and operates as a cost effective way for a business or corporation to offer effective support. Examples of In Kind gifts include a telecommunications company donating either phone handsets or discounted air time to an NGO. This serves to reduce costs for the NGO and allow them to spend a greater proportion of their income on supporting their beneficiaries.
  16. 16. Government Fund Raising Receiving Government support may bring a degree of recognition and credibility to the organization. Government funding is substantial in terms of volume and it is a great source of fund. However, dependence on Government could also make the organization vulnerable to government control or political pressure. The Central and the State Governments, however, have several schemes for assistance to voluntary agencies in areas of human resource development, welfare of women, children and marginalized communities; health, family welfare etc As Rati Misra (Resource Alliance) said NGOs should realize that government funding will add value to the profile of their NGO and they should put their focus in communicating their work to concerned government department. In the year 2008-09, Government has spent 2.5 billion dollars in social sector.
  17. 17. Increasing Donor Expectations Integrity • Walk your talk; • Keep your promise and honour your word; • If that is not possible, say when it will be and how the impact will be solved. Transparency • Being easily understood; • Being open, frank and honest in all communications, transactions and operations; • Accountability and transparency go hand-in-hand. Accountability • Being responsible to someone for actions taken by explaining, clarifying and justifying the actions. • On behalf of organisation its your duty to explain account to donor. Professional and Managerial Capacity Being effective: Doing the right things Being efficient: Doing the things right Peter Drucker
  18. 18. Types And Tactics Of Marketing Strategies Sense Reach Convert Relationship
  19. 19. Cause Marketing: Find a cause both your customers and your company care about. It can create magic for your business. Instead of doing the traditional “buy one get one free” promotion, Toms Shoes built a strong customer following and reputation for giving back by giving away a free pair of shoes to someone in need for every shoe purchase made by their customers. Word-of-Mouth Marketing: Create authentic word of mouth for your company and the products you represent. Word-of-mouth Marketing is the passing of information from person to person by oral communication.
  20. 20. Relationship Marketing: Focus on building relationships with you customers instead of always exclusively trying to sell them something (called transactional marketing). Customers who love your brand more will also spend more money with your brand. Many traditional retailers have found this to be true. Walgreens has seen that customers who buy from all of their purchasing channels (store, web, mobile, etc) buy up to six times more than the average customer that only buys in their store. Offline Marketing: Find new ways of integrating offline marketing with new technologies to create more engaging customer experiences.
  21. 21. Scarcity Marketing: Where appropriate, consider making your products accessible to only a few customers. Rolls-Royce’s release of their Year of the Dragon Collection edition of the Phantom sold quickly. Although the cost of the car was higher than other luxury cars, the scarcity drove the desire and the price. Digital Marketing: Use various digital devices like smartphones, computers, tablets, or digital billboards to inform customers and business partners about your products. The Coca-Cola company has create vending machines that invite customers to hug them. This continues to tie the Coca-Cola brand to the core emotion of happiness, but also invites customers to experience the real product offline.
  22. 22. Call-to-Action Marketing: Convert more customers on the web. CTA is a part of inbound marketing used on websites in the form of a banner, text, or graphic. The CTA prompts a customer to click and move into the conversion funnel from navigating an online store to making a purchase. Diversity Marketing: Take into account the different diversities in a culture in terms of beliefs, expectations, tastes, and needs. Then, create a customised marketing plan to target those consumers effectively. Undercover Marketing: Hide some of your products and services’ best features. Sometimes not telling everyone everything can become a great source of buzz. Think of a movie trailer that got you very excited to go see the movie. While not showing all the aspects of the movie, the advertiser can create enough intrigue to drive viewers to want to see more.
  23. 23. Transactional Marketing: Encourage consumers to buy using coupons, discounts, liquidations, and sales events. Mass Marketing: Go big! Big businesses spend big money to understand big data. (That’s a lot of big!) This gives them insight into where to place media for their potential national customers who buy their products and services. Walmart is an example of an effective mass market retailer. As the number one retailer in the world, they are very smart about their mass marketing efforts, often giving their customers a feeling of locality and warmth. Seasonal Marketing: Offer seasonal events. Seasonal events provide a great way to meet new consumers and reinforce relationships with existing customers. Sometimes these events can be changes of weather or national holidays.
  24. 24. PR Marketing: Work with the media to bring awareness to your products and the benefits your products offer. When Apple’s founder Steve Jobs was alive, Apple held a major press conference to announce every new product. This tradition is now continued by their new Apple CEO and CMO. When things go wrong, a good PR marketing strategy is vital too. Viral Marketing: Get your customers talking about your products and services by hitting on something so great that people can’t help but share with others. Each time a new product is created, customers have to be given a reason to dream about their future purchase. Online Marketing: Discover ways to leverage the web. Most online strategic marketing efforts today are a mix of growth hacking strategies (A/B testing taken to the max) and a variety of awareness tactics that drive attention
  25. 25. Email Marketing: Collect and organize emails for potential prospects and customers. Send them meaningful messages of value, while respecting their inbox. Evangelism Marketing: Surprise, delight, and over-serve your customers so they will become voluntary advocates of your product and promote its features and benefits on behalf of your company. Outbound Marketing: Let your potential customers know you exist. By developing a list of prospects, a company can begin to reach out to individual target groups in order to find new customers. When Microsoft was selling their accounting software they often used outbound marketing to identify potential targets before trying to call the companies for an in-person meeting.
  26. 26. Inbound Marketing: Sell customers additional products and services they currently don’t have when they contact you. When business customers call to check their balances, the business bank Chase often takes the opportunity to ask if they are interest in a credit line, a 401(k) plan, or a variety of other services the bank offers. Freebie Marketing: Sell items at low rates or give them away free to boost the sales of another complementary item or service. Augmented Marketing: Provide additional services through innovative offerings and benefits to your customers to increase their level of satisfaction. Amazon.com offers their Prime program to customers who want free 2- day shipping for a one-time annual fee.
  27. 27. Newsletter Marketing: Write a newsletter that highlights some of the newsworthy things that have happened for the organization Content Marketing: Create and publish content on various platforms to give information about a certain products or services to potential customers and to influence them, without making a direct sales pitch Tradeshow Marketing: Many products have to be experienced before being purchased. There are very few customers that will buy a new automobile without doing a great deal of research and test-driving the car first. Tradeshows are industry gatherings where customers are invited to come sample all that the industry has to offer.
  28. 28. Article Marketing: If expertise is highly valued in your industry, articles can offer a powerful tool to showcase your knowledge and expertise. Some innovations are shared in the form of articles or white papers where technical information needs to be conveyed to specialized buyers. Search Marketing: Make Google your business partner. These days, when consumers have questions they often don’t ask their friends; they go straight for Google. Learn to master search engine optimization techniques for your web pages. Direct Mail Marketing: Communicate directly with the customer, with advertising techniques that can include text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising. Direct marketing messages emphasize a focus on the customer, data, and accountability.
  29. 29. Niche Marketing: Finding a niche and filling it could be described as the secret recipe for growth in over-crowded marketplaces. Community Marketing: Cater to the needs and requirements of your existing customers (as opposed to using resources to attract new consumers). This promotes loyalty and product satisfaction and also gives rise to word of mouth within your brand’s community. Social Media Marketing: Engage your customers through sites like Facebook and Twitter. Social media provides a unique opportunity for savvy businesses willing to invest in customer engagement. Social media marketing is still in its infancy but it is growing up rather quickly.
  30. 30. Cross-Media Marketing: As the name suggests, multiple channels like emails, letters, and web pages are used to give information about products and services to customers in the form of cross promotions Business-to-Business Marketing: B2B marketing allows businesses to sell products or services to other companies or organizations that resell the same products or services, use them to augment their own products or services, or use them to support their internal operations. International Business Machines is a well known B2B marketer. IBM’s business has grown by taking an intelligent approach to marketing their products to other business and governments around the world. Promotional Marketing: Designed to stimulate a customer to take action towards a buying decision, promotional marketing is a technique that includes various incentives to buy, including contests, coupons, and sampling.
  31. 31. Ambush Marketing: Advertisers associate with and capitalize on a specific event without the payment of any sponsorship fee, thereby bringing down the cost of sponsorship B2C Marketing: Convert shoppers into buyers as aggressively and consistently as possible. B2C marketers employ merchandising activities like coupons, displays, store fronts (both physical and online), and special offers to entice the target market to buy. Cloud Marketing: An Internet-based marketing approach where all marketing resources and assets are transferred online so that the respective parties can develop, modify, utilise, and share them. Consider how Amazon.com gets customers to buy digital books, movies, and televisions shows in a digital library that is accessible in the customers online accounts or on their digital devices like the Kindle Fire.
  32. 32. Mobile Marketing: Provides customers with time- and location-sensitive personalized information that promotes goods, services, and ideas via mobile devices like smartphones and tablets. Alliance Marketing: Two or more businesses entities come together to pool their resources to promote and sell a product or service, which will not only benefit their stakeholders, but also have a greater impact on the market. Humanistic Marketing: Human needs are “a state of felt deprivation.” They distinguish between physical needs (food, shelter, safety, clothing), social needs (belonging and affection), and individual needs (knowledge, self-expression). Needs are a relatively narrow set of non-cultural states of felt deprivation.
  33. 33. Free Sample Marketing: Unlike Freebie Marketing, this is not dependent on complementary marketing, but rather consists of giving away a free sample of the product to influence the consumer to make the purchase. Database Marketing: A form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service. Database marketing emphasizes the use of statistical techniques to develop models of customer behavior, which are then used to select customers for communications. Affinity Marketing: Also known as Partnership Marketing, this technique links complementary brands, thereby creating strategic partnerships that benefit both companies. While one adds value to existing customers by generating more income, the other builds new customer relationships
  34. 34. Permission Marketing: The privilege (not the right) of delivering anticipated, personal, and relevant messages to people who actually want to get them. It recognizes the new power of the best consumers to ignore marketing, and that treating people with respect is the best way to earn their attention. Loyalty Marketing: Grow and retain existing customers through incentives. It includes the use of point of purchase software that tracks transaction history or other forms of CRM to get to know individual customers and provide them with the best service or products. Personalized Marketing: Sometimes called One-to-One Marketing, it makes a unique product offering for each customer. This is different than differentiation, which tries to differentiate a product from competing ones. Nike ID is a popular brand that has developed a strong business around this personalized marketing concept.
  35. 35. Guerrilla Marketing: Use unconventional and inexpensive techniques with imagination, big crowds, and a surprise element to market your products and services. A popular example is flash mobs. Brand Lover Marketing: Brand Lovers bring brands to life. For a brand to elevate itself into the “Cult Brand” category, it has to give customers a feeling of belonging while generating strong feelings of love for its customers. Creating loyalty beyond reason requires emotional connections that generate the highest levels of love and a sense of belonging for your brand. Present Era Secret Build Relationship Thank You

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