Myths about finding wealth
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From the 2016 NCVO Funding Conference in association with Kingston Smith
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Myths about finding wealth
- 1. MYTHS ABOUT FINDING WEALTH 29 FEBRUARY 2016
- 2. PROGRAMME Myth busting Making a good case Finding Wealth Tools for Campaigns Making the Ask Any Questions? Summary
- 4. MYTH BUSTING Our cause is too difficult to secure major gifts We don’t have enough connections Prospect research is essential to success It takes a long time to secure major gifts There’s a ‘proper’ way to do major giving It’s up to volunteers to ask for gifts It’s all about schmoozing
- 5. MAKING A GOOD CASE
- 6. WHERE DO YOU START? Why? Case for Support Who? Audience How much? Monitor and Evaluate How? Making theAsk Redmond Mullin’s Fundraising Cycle, 1987
- 7. THE IMPACT PARADIGM Products, services and facilities that result from an organisation’s or project’s activities Changes, benefits, learning or other effects that result from what the project or organisation makes, offers or provides Broader or longer-term effects of a project’s or organisation’s outputs, outcomes or activities Output Outcome Impact
- 8. WHAT CHANGES? Number of visitors to a museum exhibition and number of educational visits by schools Visitors increase knowledge about local history and gain pride in local area. Others improve local economy Enhanced identity increases tolerance. More visitors come to local area. Wider economy grows. Output Outcome Impact
- 10. COUTTS MILLION POUND DONORS REPORT 2015 Up by 2% in 2014 (from 292 to 298 gifts) Overall value rose by £200m, from £1.36bn to £1.56bn. The number of million pound donations in the UK in 2014 continued to rise from the low point of the 2007 financial crisis. Most gifts less than £2m, the number of grants over £10m doubled to ten in 2014.
- 11. COUTTS MILLION POUND DONORS REPORT 2015 A total of 243 recipients received the 298 donations, although 29 organisations received more than one. Total - £1.56bn - 298 gifts of £1m+ Foundations Higher Education Health International [1] Overseas [2] Human services Arts, culture & humanities Religious Environment & animals Education (not universities) Public & societal benefit £565m £485m £125m £97m £66m £45m £45m £41m £39m £27m £27m 86 gifts 65 gifts 28 gifts 25 gifts 22 gifts 19 gifts 23 gifts 8 gifts 8 gifts 9 gifts 4 gifts
- 12. SIX DEGREES OF SEPARATION Everyone knows someone Kevin Bacon, 6.6 and 30bn Microsoft messages Who knows the Queen? Contact mapping – what to record?
- 13. TARGETING YOUR BEST PROSPECTS Wealth Warmth Access Success
- 14. WE helps you to identify your best donors and gives you the insights you need to understand what drives their decisions. WE has unique data that takes the guesswork out of fundraising. And that means you can engage the people most likely to donate so that you don’t waste time on the ones who won’t.
- 15. WE SERVICES FOR CHARITIES FindWealth Online Circle of Friends/Inner Circle Database screening Donor segmentation and analysis Training and implementation
- 16. Research and profile individuals in the UK and US Unique analysis returns information from multiple data sources Match summary provides an overview including Estimated Giving Capacity and Propensity to Give Comprehensive profiles of assets, income and business information as well as philanthropic and giving history Circle of Friends FIND WEALTH ONLINE KNOW MORE ABOUT YOUR PROSPECTS THAN EVER BEFORE
- 17. Using their Circle of Friends, WE can find matches with your Inner Circle to identify those with deeper relationships to your target audience. You’ll be able to immediately use these relationships in your prospecting, marketing and engagement campaigns. CIRCLE OF FRIENDS YOUR INNER CIRCLE
- 18. Wealth scores and ratings - identify, segment and prioritize donors and prospects with the right attributes based on propensity to give, charitable giving and more. RFM score – use your giving history as a proxy for affinity SCREEN YOUR DATABASE UNCOVER HIDDEN POTENTIAL IN YOUR DATABASE
- 19. DONOR SEGMENTATION ANDANALYSIS Quickly analyze and segment your database through your screening results Find your best mid-value prospects and legacy prospects as well as your major donor prospects Get more ROI from your fundraising programmes as a result of more accurate targeting of individuals for specific campaigns Build a roadmap for next steps
- 20. SCREENING STATISTICS About 50% of this typical file could give >£12,500
- 21. GIVING TRENDS 0 1 2 3 4 6 5 7 8 9 £0 £5,000 £10,000 £15,000 £20,000 £25,000 Average of Total Gift Amt* Average of Total No. Gifts EGC by Giving History Estimated GivingCapacity Average of Largest Gift Amt
- 22. SEGMENTATION RESULTS: DONORS £25K+ £5k+ <£5K VH Angels TrueBelievers Loyalist H M HighTouch FoundationalGivers PyramidBase L WishList Donors are screened by the RFM scores and Estimated Giving Capacity They are then rank ordered and placed into 7 segments Estimated Giving Capacity RFMScoresTotal
- 25. BREAKING DOWN A CAMPAIGN Target Gift No. approaches No. Funders Total income Prospects £200,000 4 1 £200,000 £50,000 8 2 £100,000 £10,000 20 5 £50,000 £5,000 20 5 £25,000 £1,000 100 25 £25,000 Total 152 37 £400,000
- 26. WHAT ABOUT REVENUE CASES? Impact, not budget line items Who does the asking? Blended finance – diversifying income streams That’s the plan – how do you ask?
- 27. MAKING THE ASK
- 28. WHY DON’T PEOPLE ASK? Fear of looking desperate or like we’re begging Fear of our being exposed for lack of knowledge Fear of not being the best person to ask Fear of rejection There’s always something more immediate that needs our attention Spending too much time on prospect research
- 29. WHY DO PEOPLE GIVE? Your impact matches their reasons to give Todo something that interests them The benefits that they will receive Tobe seen to be giving Timing Duty Because they are asked
- 30. FIRST RULE OF FUNDRAISING If you don’t ask you don’t get Link the ‘What’ with the ‘Who’ Who asks? When do they ask? Remember, ‘People give to people’
- 31. Daniel Kahneman and Amos Tversky’s work published in 2011 Changed thinking about thinking Introduced two ways of how the brain works Deals with heuristics – cognitive biases that we don’t realise are there SCIENCE OFASKING
- 32. Avoid too many choices Don’t fight how the brain is going to work Keep it simple Use stories LAZY BRAIN DILEMMA
- 33. ANCHORING Would you be willing to • • • donate to save 50,000 offshore Pacific Coast seabirds from small offshore oil spills? pay $5 to save 50,000 offshore Pacific Coast seabirds from small offshore oil spills? pay $400 to save 50,000 offshore Pacific Coast seabirds from small offshore oil spills?
- 34. Average with no anchor - $64 Average with low anchor – $20 Average with high anchor – $143 Pitch it right ANCHORING
- 35. FOMO: Fear Of Missing Out Driver of social media and estate agents Offer limited naming opportunities Introduce urgency SCARCITY VALUE HEURISTIC
- 36. Early adopters – Bystander Finishers – Social proof Know what motivates yourdonors SOCIAL PROOF VS BYSTANDER EFFECT
- 37. Sharing gifts is part of human nature Sharing gifts is more important than relative gift sizes A thoughtful offer can result in a high value gift RECIPROCITY PRINCIPLE
- 38. WHO’S ON YOUR TEAM? Fundraising team Fundraising volunteers Board of trustees Senior management team including CEO Staff team Volunteers Supporters
- 39. USE BE TO COACH THEM Thinking about Behavioural Economics helps you be more donor-centric It’s less about recruiting supporters to your charity, and more about finding people with shared visions Excellent fundraising organisations share their fundraising
- 40. ANY QUESTIONS?
- 41. SUMMARY
- 42. IN CONCLUSION A compelling case for support changes everything Major giving is mainly about people, but data can help you find them Flexibility is more important than fixed plans Fundraising can be easy, but it’s also very easy to get it wrong
- 43. FURTHER INFO/CONTACT DETAILS Marcelle Jansen mjansen@wealthengine.com +44 203 318 4835 Leanne McNulty lmcnulty@ks.co.uk 020 7566 3690
- 44. NCVO champions the voluntary sector and volunteer movement to create a better society. We connect, represent and support over 11,500 voluntary sector member organisations, from the smallest community groups to the largest charities. This helps our members and their millions of volunteers make the biggest difference to the causes they believe in. • Search for NCVO membership • Visit www.ncvo.org.uk/join • Email membership@ncvo.org.uk 44