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Developing-sustainable-income-streams

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					Thinking Ahead

Developing sustainable income
streams
• Worried about where your next funding will come
  from?
• 5 foolproof ways to improve your chances of funding

• Anxious about writing reports for your funder?
• 6 key tips to writing reports, even when you have
  poor data

• Finding it difficult to connect with new donors?
• 10 failsafe ways to reach new donors
• If these matters are worrying you then
  get your free resources by sending me
  an e mail

• mikeb@mcrcommunitycentral.org
• make the subject line ‘free resources’
A strategy based on
a single income
stream is always
going to fail one
day.
What is your strategy
• Income analysis- where does your
  income come from. What proportion of
  your income comes from contracts,
  trading , trusts and foundations,
  donations
• The rule of Thirds. No more than a third
  of your income should come from one
  source
Sources of funding
• Government.
• Grant-making
  organisations.
• Companies.
• Individuals.
• Trading + fees.
• Events.
• Internet and Social
  Media
Six fundraising techniques that work!
Major donor fundraising
Events
Foundation applications
Corporate donations
Membership
Legacies
How funding is divided.
• General public giving and Lottery= 38%
• Statutory agencies=36%
• Voluntary Sector grant making
  trusts=8%
• Commercial sector =6%
• Trading and investments=12%
Return on investment
• Have you thought about how you raise funds?
• Raising funds from trust and foundations offers a
  return of 1:9
• From corporate donors its a return of 1:8
• From legacies its a return of 1:36
• From individual donors its a return of 1:1.5 at worst
  and at best its a return of 1:2.5

• What is your fundraising strategy?
Foundation Applications
• Research the funder
• Follow the
  guidelines
• Write a log-frame
• Apply in time
• Monitor & evaluate
• Report back
• Apply again
• Create a
  relationship
What we know about the
rejection rates.
• For almost all 2 stage applications there
  is an 80% rejection rate at first stage.
• Second stage the rejection is 50%
• In other words 90 % of applications are
  failing!
• For Big Lottery Reaching Communities
  the rejection rate is currently 94%
What’s your income strategy?
You are competing for funds
• In England and Wales there are 162,000 registered
  charities
• In England and Wales there are 647,000 charitable
  organisation
• The sector attracts £52 billion funding each
  year(£11billion from the public, about 20%)
• How much did you get?

Source: Directory of Social Change/ NCVO/Charities Aid Foundation
If no one has heard of you no one
is going to give to you…
Charitable giving
• Figures released in December 2011, show
  that in the year (2010/11) the UK public gave
  £11.0 billion to charity.
• 1.1 million people donated money to charity,
  who hadn’t previously donated. However, the
  average (median) amount given per month
  fell from £12 in 2009/10 to £11 in 2010/11.
• How much did you get?
Who donates?
• Women aged 45-64 years are the most likely
  to give and give the most (typical
  average/median amount £20 per month).
• Those aged 16-24 years are the least likely to
  give.

• Who are you asking for money from?
• Who is giving you money?
• Are you asking for gift aid?
What about new technologies
• There are 12 million smart phones in use in
  the UK in December 2011
• Another 2 million were forecast to be sold at
  Christmas
• If 1% of all the texts sent in the UK were
  converted to a £1.50 donation the charity
  sector would raise £1.5 billion pounds

  Can we afford to ignore this?
Why use the new
technologies
• Over 34million, 16 – 65 year olds in the UK
  own a mobile phone, people for you to
  potentially reach to help raise money for your
  cause, so what are you waiting for!
• In December 2010, for the first time
  consumers spent more with debit cards than
  cash.( How much cash do you have in your
  pocket?)
Charities who use online
funding, raise 6 times
more than those who
don’t
Its not rocket science!
•   Technology is a tool to build relationships.
•   Understand the technology and its limitations.
•   Develop a strategy
•   Here is why you should........
• 83% of the UK use the internet. That’s over
   51 million people!¹
• ... and there’s another 2 billion worldwide.¹
• That’s a lot of people... and it’s still growing.
   In 2010 there was a 14% increase in users
   worldwide.²
• 56% of UK adults have given to charity
   (2009/10), that’s 28.4 million UK adults.
• But 58% of people shop online
 The average offline donation is £15.¹
• The average online donation is £30.¹
• ... however this rises to £54 when
   donors are targeted more
   specifically.¹
•   ¹ Race Online 2012 Survive & Thrive casebook
• 1 in 5 emails from non-profits get
   opened¹
• ...with 3.4% generating a click.¹
• But if fundraising emails are sent from
   your friends, then the open rate is 90%
• ...and 1 in 4 lead to a donation!
•   Source MailChimp
• 46% of the UK is on Facebook...¹
• ...and represents 7% of all UK time spent online.¹
• It has more than 750 million users worldwide...²
• ... that’s more than 10% of the worlds population.
• 48% of 18 - 35 yr olds check Facebook when they
    wake up.³

¹ Uk Online Measurement (UKOM) , ² Facebook.com ³ onlineschools.org
How much do you know
•   Know your metrics
•   For example...
•   Number of website visitors
•   Number of telephone/email enquiries
•   Number of NEW people added to mailing list
•   Number of donations / products sold
•   Value of donations / products sold
• http://www.google.com/analytics/index.h
  tml
    The Fundraising Pyramid
Trading, Events,
Government,
Foundations,
Corporate donors,
Individuals.
The Golden Prize
• The aim of building donor relationships
  is encourage the whole world to
  support you through increasing their
  level of contribution up to and including
  a legacy.
• You need a strategy for fundraising and
  a strategy for marketing your project
Why do people give.
• They are asked
• They believe you are stable & ethical
• They want to honor someone/thing
• They want to extend their values
• They have a high regard for the staff and
  the volunteer leadership
• They want to belong to something
Why do people give 2?
• Guilt/Strong Arm
• • To meet their numbers
• • For recognition
• • For promotional materials and
  proposals
• • To Reduce or Avoid Taxes
Its not just about the money
Remember the Pyramid?
Here is another way of looking
at the people in the pyramid
          ADVOCATE / RAVING FAN

           SUPPORTER / CLIENT

            DONOR / CUSTOMER

                  LEAD

               PROSPECT

                SUSPECT
Where are your supporters likely to be?
• To know where they are you need know who
  they are. start to segment your supporter
  base

• Gender, age , nationality, income range,
  educational attainment, language,
  employment, technology literate?
  communications preference
What ‘s the attraction?
What keeps your supporters awake at
night? What do they worry about?
• What do your supporters want to hear?

• Not -what do you want to tell them?
Remember this?
• Worried about where your next funding will come
  from?
• 5 foolproof ways to improve your chances of funding

• Anxious about writing reports for your funder?
• 6 key tips to writing reports, even when you have
  poor data

• Finding it difficult to connect with new donors?
• 10 failsafe ways to reach new donors
Filling the information pipeline
Draw in a crowd
The marketing mix
• These are the tools that you use to
  maintain the relationship with your
  supporters and recruit new supporters.

• Newsletters, e bulletin, appeals,
  campaigns, thank you’s, success stories
The biggest mistake- MWA




• Most wanted action.
• What is the action? have you made it clear? How do
  they take the action?
Have a planned approach
• Start by making the first MWA an easy
  one- e.g. sign up for our newsletter
• Say thank you
• Build on the relationship by sending
  information down the pipeline
• Say thank you
Keeping the relationship going
• Make the next MWA a bit more difficult
• Say thank you
• Ask for more commitment at each stage
  of the relationship
• Say thank you
• Keep going until you have someone
  who is your biggest fan, because
  then....
You will have a fan base!!
Need a hand to manage the
relationship?
Let mailchimp manage your
strategy
Need some ideas for the
information pipeline?
Get inspired, get started, get
fundraising!!!!
• Here are some examples of successful
  campaigns.
In 2004 -30 friends in Australia raised
$55,000 for prostate cancer research.
In 2010, 447,000 people worldwide
raised $72,000, 000- ( UK £19,000,000)
Race for Life has raised
£457,000,000 since 1994
 The Infinity Fund is a £50 Million
fundraising initiative for Greater
Manchester
Some useful websites
http://www.justgiving.com -text donations
http://www.givey.co.uk -online social media donations
http://www.missionfish.org.uk e bay for charities
http://www.charitytext.org charity giving website
http://www.themda.org The Mobile Data Association lots of good
   information about the mobile technology market useful resource
www.cafonline.org Charities Aid Foundation text donation service
www.nfpsynergy
www.mailchimp.com
http://www.charityservice.org.uk
Acknowledgements
• John Baguley- www.ifc.tc
• Marcy Heim –the Artful Asker
  www.MarcyHeim.com
• http://www.sofii.org/
• www.queerideas.co.uk
For more information
 Manchester Community Central,
 FREEPOST NAT4553
 Manchester M60 3BR
 Telephone 0333 321 3021
 Email info@mcrcommunitycentral.org
 Web manchestercommunitycentral.org

				
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posted:11/22/2012
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