pareto fundraising recession forum november 2008

WelcomeWelcome

Kalos orisate Kalos orisate

Benvenuto Benvenuto

Irashaimasu Irashaimasu

Bienvenidos Bienvenidos

Jonathon and Matthew from ADRAJonathon and Matthew from ADRA

Claire and David from Amnesty InternationalClaire and David from Amnesty International

Susan and Debra from Australia for UNHCRSusan and Debra from Australia for UNHCR

Michelle from Berry Street VictoriaMichelle from Berry Street Victoria

Brad from Garvan Research FoundationBrad from Garvan Research Foundation

Chris and Stewart from Greenpeace Australia Chris and Stewart from Greenpeace Australia PacificPacific

Kerry and Alexandra from Inspire FoundationKerry and Alexandra from Inspire Foundation

Nicci and Philip from National Heart Foundation of Nicci and Philip from National Heart Foundation of AustraliaAustralia

Mary and Nicky from Royal Australian College of Mary and Nicky from Royal Australian College of PhysiciansPhysicians

Manisha from The Cancer Council of NSWManisha from The Cancer Council of NSW

Donna and Sonia from WSPADonna and Sonia from WSPA

Sara from Pareto PhoneSara from Pareto Phone

Gavin, Dan, Martyn, Justine, Tai, Rob, Martin P, Gavin, Dan, Martyn, Justine, Tai, Rob, Martin P, Martin S, Rachel, Warrick, and Sharon from Pareto Martin S, Rachel, Warrick, and Sharon from Pareto FundraisingFundraising

The bubble bursts

The bubble bursts

What a

bout the ch

arity

world?

Sean with beneficiaries

hide


My favourite Charity:

The Sumba Foundation

How you support: Regular

gift from credit card &

occasional donation

Why?

I went to see them at

Christmas last year

and met loads of the

kids. It was fantastic,

we met ....


The big pictureThe big picture

Pictures from the news about the recession, FTSE photos with lots of red etc

Where money comes fromWhere money comes from

AUD$61.2m

AUD$30.1m


IndividualsAUD$524.2575.6%

Foundations AUD$42.8212.4%

Bequests AUD$26.83 7.8%

Corporations AUD$14.984.3%

2006 charitable giving USA 2006 charitable giving USA

Source: Giving USA Foundation™


Total = $295.02 billion ($440.95billion)

Source and © Charities Aid Foundation, Charity Trends 2005 - highlights

What has What has happenehappened so fard so far

$m

$10m

$20m

$30m

$40m

$50m

$60m

$70m

$80m

$90m

All Individuals Organisations

1st Half 2006

1st Half 2007

1st Half 2008

15

Income in 1st Half 2006 v 2007 v 2008 23 Australian and NZ benchmarked charities

16

$m

$5m

$10m

$15m

$20m

$25m

$30m

Cash Individuals RG Individuals

1st Half 2006

1st Half 2007

1st Half 2008

Income in 1st Half 2006 v 2007 v 2008 23 Australian and NZ benchmarked charities


Key Measures to monitor during


‘Recession’‘Recession’

Acquisition volumes

Acquisition ROI

Attrition among RG’s

Attrition among major donors / high value

donors

Attrition among low value donors

Unsolicited gifts


What is a worry: What is a worry:

current donorscurrent donors


Donations


Major Donors


Events

T

Look after current donorsLook after current donors

Thank ProperlyThank Properly

Frequent CommunicationsFrequent Communications

Phone your top donorsPhone your top donors

Donor care lettersDonor care letters


Most important:

Good appeals and upgrades Good appeals and upgrades People giving is the best retention devicePeople giving is the best retention device

Good upgrades = good customer care*Good upgrades = good customer care*

*even for failed sales!*even for failed sales!


What is a worry: What is a worry:

new donorsnew donors

Return on InvestmentReturn on Investment


Cost of fundraising excl bequestsCost of fundraising excl bequests



Cost of fundraising incl bequestsCost of fundraising incl bequests

Income v Cost against COFIncome v Cost against COF


Income v Net Income v Net



But donors want effective fundraising!?

My favourite Charity:

The Sumba Foundation

How you support: Regular

gift from credit card &

occasional donation

Why?

Their cost of

fundraising is really

low and I am

impressed by their

effective admin

systems...



Recession

Suicide

Sue-Anne WallaceSue-Anne Wallace

CEO, Fundraising Institute AustraliaCEO, Fundraising Institute Australia


Chris Washington-SareChris Washington-Sare

Head of Fundraising and Marketing, Head of Fundraising and Marketing, Greenpeace Australia-PacificGreenpeace Australia-Pacific



Recession StrategyRecession Strategy




‘Recession’‘Recession’

Acquisition volumes

Acquisition ROI

Attrition among RG’s

Attrition among major donors / high value donors

Attrition among low value donors

Unsolicited gifts

Weekly

Monthly

Quarterly

Nobody Knows AnythingNobody Knows Anything

=mc Global Fundraising Study

Causes least effected by the economic climate:

Children’s causes

International relief

Medical research

Faith-based causes

Guidestar Survey

Causes most effected by the economic climate:

Disease-related groups

Mental health

Faith-based groups

Country Overall

Australia Below budget due to DD recruiter issues and credit card processing changes

China No indicators so far - not a lot to benchmark against

France One off donors reduced by 40%Germany Personal impact not being felt yetItaly No impactJapan Expect year end appeal (bonus season) to be most effectedNetherlands Estimated for the year to loose supporters due to strategy issues

Nordic No effect so farRussia DD volume less than budget due to investment - not conversionSpain No impact

Switzerland No indicators so far - most vunerable will be high donor

UK No impact

US No impact

Selected Greenpeace Selected Greenpeace CountriesCountries

Factors Influencing Our PlansFactors Influencing Our Plans

Global Economic MeltdownMay make acquisition harder

Credit Card Processing

Southern Ocean CampaignPotential backlash due to strategic evolution

Core Fundraising Tactics ‘09Core Fundraising Tactics ‘09

1.Focus cold acquisitionson regular giving

2.Focus on upgrading

3.Aggressive re-activation

4.Review 5 year plans regularly

5. Invest in bequests

Planning ScenariosPlanning Scenarios

• Aspirational

• Business As Usual

• Prudent

• Ten tips

Ten tipsTen tips

For managing fundraising in a recessionFor managing fundraising in a recession


Board and managementBoard and management

1. Net not COF

2. Plan long term and don’t commit recession suicide

3. Stop putting off long term investments (eg bequests)

4. Accept donors are not cheap


Apply the Pareto PrincipleApply the Pareto Principle

5. Concentrate on high yield activities like major donors, bequests and regular giving

6. Look at how other charities are performing and where growth is really coming from


Look after your donorsLook after your donors

7. Implement supporter relationship management strategy & accept it is not cheap

8. Be rigorous about tactics – number of mailings, length of letters etc. Accept fact, not prejudice


Get more donorsGet more donors

9. Regular givers still best bet. They are not cheap, and expect TWO years before you see a decent net return

10.Understand the implied life-time value of such donors – look beyond next year or even three years


pareto fundraising recession forum november 2008

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