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Masters fundraising 101 acu australian catholic university

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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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