fund raising and revenue generation for non-profit @ diffusion pune 2012
DESCRIPTION
"Fund Raising and Revenue Generation" module lead by Shifa Soomar from ISB (Diffusion Pune - 2 day residential workshop for non-profit and social enterprises)TRANSCRIPT
![Page 1: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/1.jpg)
Fund Raising & Revenue Generation
Shifa Soomar
Sponsored by
![Page 2: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/2.jpg)
Introduction
Donor Behaviour
Fundraising Planning Framework
Methods of Fundraising
Direct Response | Online
Major Gift | Corporate
Importance of Donor Retention
The Government & FR in India
Revenue Generation
Agenda
![Page 3: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/3.jpg)
Introduction to Fundraising
Backbone of a non-profit
‘People give to people to help people’
Relativity of gift size
Giving starts at Home Fundraising
Cover Expenses
Raise Awareness
Bond with Society
Higher Impact
![Page 4: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/4.jpg)
Donor Behaviour Successful fundraising is the right person asking the right prospect for the right amount for the right project at the right time in the right way.
Context
Where
Who
When
How
How much
To whom or what
![Page 5: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/5.jpg)
Who Gives?
Gender Age Education Marital Status
Income Employment No. of children Homeownership
![Page 6: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/6.jpg)
Why They Give?
Self Interest
• Self-Esteem
• Atonement for Sins
• Recognition
• Access to Services
• Reciprocation
• In memoriam
• Tax
Emotions
• Sympathy
• Fear, Pity & Guilt
• Social Justice
Empathy
Values
Altruism
![Page 7: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/7.jpg)
Reasons for Support
Personally asked to contribute
21%
To get a tax deduction 7%
To fulfill religious obligation or belief
20% Something is owed to the
community 22%
Those who have more should give to those who
have less 30%
![Page 8: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/8.jpg)
Reasons for Non Support
I cannot afford to offer my support to charity
23%
Charities ask for inappropriate sums
23%
The government should fund the work undertaken
by charities 19%
I find charity communications
inappropriate 12%
The quality of services provided by charities to
their donors is poor 7%
In the past, charities have not acknowledged my
support 4%
I feel that charities are not deserving
3% Other
9%
![Page 9: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/9.jpg)
Fundraising Planning Framework
Vision/Mission
Organizational Objectives
Fundraising Audit
SWOT Analysis Fundraising Objectives
Key Strategies
Tactical Plans
Budget Schedule
Monitoring & Control
Where are we now? Where do we want to be? How are we going to get there?
![Page 10: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/10.jpg)
Vision/Mission
Serves as a focus point for fundraisers
Reinforces the ‘reason for the fundraiser’s existence’
Powerful motivating factor
Useful reference point for potential donors
All organisations have a vision/mission:
•Some unwritten
•Some unstated
•Some termed otherwise
![Page 11: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/11.jpg)
Organizational Objectives
What the organisation aims to achieve
Applies for the whole organisation
Finance
Human Resources
Service Delivery
![Page 12: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/12.jpg)
Fundraising Audit
Most crucial stage of Planning process
The Fundraising function and its
environment
Internal and external factors affecting
organisation’s fundraising ability
PEST Framework Market Study
Competitor Analysis Internal environment
APPROACH
![Page 13: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/13.jpg)
SWOT Analysis
Take only key information from audit
Contextualise strengths and weaknesses
One step further: SWOT Analyses for each donor segment
What are you good at?
Competitive advantage
Internal drawbacks
Barriers to development
New audiences, new techniques
Potential P,E,S,T Challenges
Strengths
Threats
Weaknesses
Opportunities
![Page 14: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/14.jpg)
Fundraising Objectives
Yardstick for measurement of FR performance
Base for accountability
The amount of funds to be raised
The segments of donors from whom these funds will be raised
The acceptable costs of raising these funds
![Page 15: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/15.jpg)
Key Strategies
Broad means by which objectives will be achieved
Elements of
Fundraising strategy
Overall Direction
Targeting
Positioning
Segmenting
Branding
Case for support
![Page 16: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/16.jpg)
Tactical Plans
Finer detailing of strategies
Action points to achieve key strategies
Small organisation
=1 Action plan
Large Organisation
= Customised action plan for each donor
segment
![Page 17: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/17.jpg)
Budget
Easier with experience
Approaches
% of previous
year’s donations
What can be afforded
Task Method
Competitor matching
% of current year’s
budgeted donations
![Page 18: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/18.jpg)
Scheduling
When will the action points be undertaken? By whom?
PERT
Gantt Chart
TOOLS
CPM
![Page 19: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/19.jpg)
Monitoring & Control
Important to keep a constant check on
•Costs
•Targets
•Performance.
For effective control, break these down into monthly targets
Also, check appropriateness of adopted strategies and tactics
![Page 20: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/20.jpg)
Assessing Fundraising Performance
Face Ratio Cost per
dollar raised
Percent Participation
Average gift size
Average cost per gift
ROI
![Page 21: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/21.jpg)
Fundraising Methods
Direct Response
Fundraising
Online Fundraising
Major Gift Fundraising
Bequest, In Memoriam
& Tribute giving
Planned Giving
Corporate Giving &
Fundraising
Grant Fundraising
![Page 22: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/22.jpg)
Direct Response Fundraising
Primary Elements
Targeting Continuity
Interaction Control
Pillars of Direct Response
Offer Sufficient
Information
Explicit ‘call to action’
A means of response
![Page 23: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/23.jpg)
Direct Response Fundraising
Defining Objectives
Segmenting
Targeting Media:
Selection and Planning
Message
Fulfillment Monitoring, Control and
Appraisal
Key Stages
![Page 24: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/24.jpg)
Stages of Direct Response Fundraising
Objectives
Define:
How Much?
From how many?
How?
At what cost
![Page 25: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/25.jpg)
Stages of Direct Response Fundraising
Segmentation
List of Cold
prospects
Donors of other
nonprofits
Warm potentials
’ list
Lapsed supporters
EMGO
Cheapest, easiest source
Hardest, most expensive source
Targeting: You may have the best campaign/approach, but is it reaching the right people?
![Page 26: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/26.jpg)
Stages of Direct Response Fundraising
Media: Selection & Planning
Direct Mail
• List Purchase
• Test Mailing
• Pack Design
Free-Standing Inserts
• Placed in magazines/newspapers
• Attractive design
• Should be suitable for audience
• Higher effectiveness, but higher costs too
Press & Magazine Advertising
• Tried and tested
• Works well for emergency causes
• Provide the problem and the solution
![Page 27: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/27.jpg)
Stages of Direct Response Fundraising
Media: Selection & Planning
Direct Dialogue
• Face-to-face
• Sites of high foot fall
• Increasing use of technology
• More first-time donors (80% under 30)
Tele-Fundraising
• Donor Acquisition & Development
• Inhouse or outsourced
• Can be integrated with campaigns on various media
Radio
• No visual recall
• Works well when integrated with other media
![Page 28: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/28.jpg)
Stages of Direct Response Fundraising
The Message
• Content over length
• Get to the point
• Active over passive
• Passion, honesty and conviction
Writing Copy
• Back of envelope more important than front
• Top, Bottom, Middle.
• Handwriting vs printed text
• Numbers vs words
• Don’t forget the P.S.
Illustration, Typeface & Design
![Page 29: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/29.jpg)
Stages of Direct Response Fundraising
Fulfillment
‘Back-end’ of a recruitment
campaign
Honeymoon stage is critical
Close the deal
Answer
Bank
Acknowledge
![Page 30: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/30.jpg)
Stages of Direct Response Fundraising
Monitoring, Control & Appraisal
Easy to monitor
Keep tab on statistics through media owners
Performance appraisal based on historic data and across media
Be wary of:
•Outliers
•Ignoring fulfillment costs
![Page 31: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/31.jpg)
Online Fundraising
e-Philanthropy: advocacy, education and fundraising
Creation of communities
Wider, stronger reach
Not ask-give or top-down, but building relationships between the organisation and
supporters
![Page 32: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/32.jpg)
Online Fundraising
Successful Online strategy
Community
Content
Commerce
Characteristics of a successful website
Accessibility
Accountability
Education
Interaction
Empowerment
![Page 33: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/33.jpg)
Online Fundraising
E-Fundraising Mix
Search Engine Marketing
Opt-in E-mail Online
Partnerships
Online PR Interactive Ads Viral Marketing
![Page 34: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/34.jpg)
![Page 35: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/35.jpg)
![Page 36: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/36.jpg)
Major Gift fundraising
Seven faces of
Philanthropy
The Communitarian
The Investor
The Socialite
The Dynast The Repayer
The Altruist
The Devout
![Page 37: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/37.jpg)
Major Gift fundraising
Major Gift Development Process
Identify & Focus
Strategise Engage Evolve
Strategy
Assign ‘ask’ Ask Acknowledge Continued
engagement
Renewal
![Page 38: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/38.jpg)
Corporate Giving and Fundraising
Why do Corporations give?
Corporate productivity
Ethical Reasons
Political Influence
Stakeholder Satisfaction
![Page 39: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/39.jpg)
Corporate Giving and Fundraising
Forms of Support:
Cash Donations Donations of
stocks & shares
Donations of products/servic
es
Donation of employees’
time
Publicity Employee
Matching Gifts Events
Workplace collections
Group Presentations
Employee Fundraising
Sponsorship Workplace
giving
![Page 40: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/40.jpg)
Corporate Giving and Fundraising
Selecting the Right Organisation
Profitability Turnover Longevity
Business Sector Country of ownership
Nature of Shreholding
Potential Fit
Fit can be analysed through values, brand and
objectives
![Page 41: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/41.jpg)
Corporate Giving and Fundraising
Benefits
Increase in amount and
stability in revenue
Larger volunteer base
Increased awareness
Wider reach for donor acquisition
Ability to leverage knowledge of
corporate entity
Exclusivity ‘Selling out’
concern
Access to non-profit’s
database
Credit on collateral
Drawbacks
![Page 42: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/42.jpg)
Importance of Donor Retention
‘Customer Service’ aspect of Fundraising
For every $6 raised through new donors, 5$ are lost through leakage of existing donor
base
Fix the leaky bucket before pouring more water into it
Easier, Cheaper to retain than acquire
Strengthen while Expanding
![Page 43: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/43.jpg)
Importance of Donor Retention
HOW TO MAKE YOUR DONORS STAY
Newsletters Annual Reports
Invitation to Events
Understand the motivation
Donor Recognition (plaques/certificates)
Timely gift acknowledgements (email/telephone)
Donor Milestone Correspondence
Preference & Permission based
Personalized Communication
Keep your donors informed: Make them feel important:
![Page 44: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/44.jpg)
The Government & Fundraising in India
FCRA Act
Recently thousands of registrations cancelled
Service Tax
Providing education to children considered a service
TRAI Regulations
Charities not exempt from ‘DND’ Rule
No Infrastructure support
‘Bill Mail Service’ for commercial companies, but not nonprofits
Tax Exemption
Sec 80G, but no ‘Gift Aid’
![Page 45: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/45.jpg)
Emergence of Revenue Generation
Social enterprises apply business solutions to social problems.
Ultimate goal: achieve sustainability
Generation of:
•Social value (measurable impact) •Economic value (revenue).
![Page 46: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/46.jpg)
Integration Models
• The enterprise and the social program are one and the same
• The business is created to serve clients (central to the mission)
Embedded
• The business activities overlap with the social programs
• The business is created as a funding mechanism and to expand/enhance the mission of the organization
Integrated
• Social and business activities are separate and may or may not be related to the mission of the organization
• The business is created mainly as a funding mechanism to support social activities
External
![Page 47: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/47.jpg)
Hybrid Organisations
Primarily pursue a social mission but high reliance on commercial revenue
Reasons for popularity:
•Less dependency on donations and subsidies
•Creating sustainable financial models
Traditionally existed in job training, health care, and microcredit. Recently in
environmental services, consulting, retail, consumer products, catering, and information
technology.
![Page 48: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/48.jpg)
Hybrid Organisations
Challenges of the Hybrid Structure:
Legal Structure
Financing
Customers & Beneficiaries
Organizational Culture and
Talent Development
![Page 49: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/49.jpg)
Key Factors for a Successful Social Enterprise
Good fit
Realistic expectations
Hire Right Consider it a
business
Industry Knowledge
![Page 50: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/50.jpg)
Perfect Pitch
What do you want?
Give Information
Create Awareness
Connect Get the Money
![Page 51: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/51.jpg)
Perfect Pitch
Introduction
Who you are
Who you serve
Why you are
important
What you want
Elements of the Pitch
![Page 52: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/52.jpg)
Corporate Giving and Fundraising
Delivery Technique
Opener
Memorable Phrase
The Ask
![Page 53: Fund Raising and Revenue Generation for non-profit @ Diffusion Pune 2012](https://reader033.vdocuments.us/reader033/viewer/2022051609/5471ef7cb4af9fa30a8b4d66/html5/thumbnails/53.jpg)
Perfect Pitch