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![The Need
“…recent and extraordinary turbulence in the financial
markets…”
“…nonprofit and philanthropic sectors are not immune…”
Donors “…will need to make programming decisions that
balance commitments with costs…”
Nonprofits “…will need to craft creative strategies for
strengthening revenue and refocusing effort.”
[Letter from Michael Hoffman, CEO, Changing Our World, Inc. to Colleagues - October 2008]](https://image.slidesharecdn.com/knightpresentationpdf-1259601747033-phpapp02/85/Creative-Revenue-Generation-4-320.jpg)
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Similar to Creative Revenue Generation
Creative Revenue Generation
- 1. CREATIVE REVENUE GENERATION Laura Deaton Credit: MSL Chief, Wikimedia Commons, original work by Jim Boroch
- 2. Agenda • The “BadNews” AKA “The Need” • The “Good News” AKA “Creative Revenue Generation Examples” • Break • “Your Turn” AKA Group Brainstorming & Sharing • “The New Normal” AKA Plan B and Questions Photo Credit: Torredibabele, Wikimedia Commons
- 3. The Bad News AKA The Need
- 4. The Need “…recent andextraordinary turbulence in the financial markets…” “…nonprofit and philanthropic sectors are not immune…” Donors “…will need to make programming decisions that balance commitments with costs…” Nonprofits “…will need to craft creative strategies for strengthening revenue and refocusing effort.” [Letter from Michael Hoffman, CEO, Changing Our World, Inc. to Colleagues - October 2008]
- 5. Recent Surveys… • May=> Giving USA, 2008 giving 2%, first decline in giving since 1987. • June => Index of Nat’l FR performance, “Direct response giving ” in Q1 2009. • August => Johns Hopkins released findings from April 2009 “sounding” of 363 orgs.
- 6. Johns Hopkins Sounding “…Allsources declining.”
- 7. More than halfof responding nonprofits experienced: • Increasing demands for more of their services; • Escalating operating costs; and • Decreasing revenues to meet the higher demands and costs; and More than a third of nonprofits have had to cut their operations. Source : National Council of Nonprofits Economic Stimulus and Recovery, Special Report 8, August 10, 2009.
- 8. A Perfect Storm • 83% reported some level of fiscal stress. • ~40% considered said “severe” or “very severe” – 73% for theatres and orchestras – 30% for those serving children and aging families • Particularly hard on mid-sized orgs http://www.ccss.jhu.edu/pdfs/LP_Communiques/LP_Communique_14.pdf
- 9. Impressive Resilience • Thosereporting “severe” or “very severe” lower now than post 9/11 (37% vs. 51%) • Except for arts orgs, majority reporting fiscal stress is “minimal” or “moderate”. • More than two-thirds “successful” or “very successful” in coping. • Nearly three-fourths of the organizations reported being able to maintain or actually increase the number of people they serve, and this was especially true of service to vulnerable populations. http://www.ccss.jhu.edu/pdfs/LP_Communiques/LP_Communique_14.pdf
- 10. A Range ofCoping Strategies • New or Expanded Fundraising efforts • Stepping Up Marketing and Advocacy • Belt Tightening
- 11. Photo Credit: Flickr:Herkie
- 12. The Good News CREATIVEREVENUE GENERATION Specific Examples Photo: avmeier, wikimedia commons
- 13. Specific Examples RETAINING EXISTINGSUPPORTERS
- 14. Simple Strategies – Monthly Payment Plans • College students: $5/month = $60 • Young adults: $10/month = $120 • Regular adult donors: $20 = $240 • “Major” donors: $100 = $1200
- 16. From Asking Properly:The Art of Creative Fundraising by George Smith, © G. Smith/White Lion Press Limited.
- 17. From Asking Properly:The Art of Creative Fundraising by George Smith, © G. Smith/White Lion Press Limited.
- 18. Photo Credit: Flickr:LongLiveRock SpecificExamples ENGAGING DONORS DIRECTLY
- 19. Thank You Calls– Covenant House • Direct mail decline of 20% • Decided to strengthen connections • Had youth call to thank and invite to an open house • Twice as many people came to take tours • Size of gifts increased by 50% http://online.wsj.com/article/SB124025204612335931.html Flickr:Casie Yoder
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- 21. Specific Examples MAKING EVENTSSTILL WORK
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- 27. Volunteers -Special Olympics •Facing $33.5M budget shortfall before World Winter Games in Idaho. • Cut plans for paid staff in half • Tapped volunteers from National Guard, Defense Dept. AmeriCorps, and other nonprofits. • Instead of training volunteers on-site for two weeks (costly), found a company to design a free online training program for them. Flickr:ForeverSouls
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- 30. Specific Examples ASKING INNEW WAYS
- 31. Thank You Notes– Teachers’ Supply Closet • Thank you notes from kids with a donation envelope enclosed.
- 32. YouTube • charity:water raised $10,000 in one day • Includes donate button, call-to- action overlay, channel listings, ability to request volunteer film- making support • Film school? http://www.youtube.com/nonprofits
- 33. Simple Strategies –Ask More Frequently •Huge increased demand for services •Scheduled one week in August •Each of the 39 centers hoped to raise $40K http://cityroom.blogs.nytimes.com/2009/07/13/salvation-army-makes-a-summer- appearance/
- 34. One step further… Source:salvationarmatlanta.org
- 35. Photo Credit: DarKobra,Wikimedia Commons Specific Examples DASHBOARDING TO MEASURE PROGRESS
- 36. Real-Time Dashboards Source: Forge Source: Jan Masoaka, blueavocado.org
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- 39. Specific Examples INCREASING GENERALAWARENESS
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- 41. Billboards Photo Credit: Flickr:mediaboytodd
- 42. Capital Regional MedicalCenter
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- 45. Best fit is30-49 age group. Interested in: • Whether or not a nonprofit is successfully making an impact (75%) • Learning about organizations that are actively working on issues and causes they care about (62%) • Success stories and updates on the progress of the nonprofits they support (54%)
- 46. Specific Examples FINDING NEWPROSPECTS
- 47. Thinking Outside the(Pizza) Box
- 48. • Identified “HighlyConnected’ Alums, regardless of how much money they gave. • Used Linked-In Profile data to identify alums with warm fuzzies for the school • Developed a process to use Linked-In to keep in- house donor data updated with current information. • Generational sub-lists
- 50. Photo Credit: Flickr:Photocapy SpecificExamples REVAMPING PROGRAMS
- 51. Innovative Income –Joffrey Ballet • 40% decline in ticket sales • Teach dance to the public • Taught in existing space • Between Jan-April, $200K • Increased attendance, too Flickr:oude School
- 52. Planning for theFuture: Earned Income Strategies • Presented by Cindy Coney, MissionWise • Tuesday, September 29, 8:30a-12 noon • Check-in 8:15 • NOTE: This workshop is targeted for more mature organizations that are better positioned for earned income strategy development.
- 53. Expanded Program Definition– Bonnie CLAC • Increased demand for services • Loss of $800 per low- income client • Expanded services up the income ladder • Extra $500 per client to subsidize costs of lower-income
- 54. Fee-For-Service Consider charging forpreviously grant-funded services
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- 56. Ample Harvest -Food Banks
- 57. Specific Examples TURNING GIVERSINTO GETTERS
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- 62. Specific Examples FORGING NEWTERRITORY – EARNED INCOME
- 67. FT LAUDERDALE, FL,July 09, 2009 Due to the current real estate market conditions, a Florida couple is raffling off their luxury home in Fort Lauderdale for only $10 per ticket. After the drawing is held, the deed and title to the home will be transferred to the lucky winner (with no mortgage). A portion of the proceeds will go to The Mission of St. Francis.
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- 69. Target Each OtherAs Customers • Meeting or office space rental • Printing services • In-house designer • IT services • PR • Mailing services Is there a nonprofit from whom we could purchase services?
- 70. Event Collaboration • Balletand orchestra do “Grease” at a local nonprofit theatre and split proceeds. • Youth mentoring org teams up with local Alzheimer’s group to target sandwich generation for a 5K Run/Walk. • Library and PTA team up for donated book drive, and sale. • Staff Swap
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- 74. “Funding for anew program that teaches inner-city youth how to manage money … First Tennessee Bank will present a $35,000 check on July 22 to the Financial Literacy Collaborative…” “The collaborative comprises five nonprofits that operate existing after-school and summer programs for at-risk children…”
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- 78. Transparency - Forge •Changed program model resulted in $100K shortfall Forge founder Kjerstin • Founder blogged about Erickson mistakes, total transparency • $50K foundation donation
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- 88. How to ReachMe • Laura Deaton, Full Glass Consulting • Phone: 888-784-3433 • Email: laura.deaton@fullglassconsulting.com