Presentation on theme: "Thinking Ahead Developing sustainable income streams."— Presentation transcript:
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 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 years are the most likely to give and give the most (typical average/median amount £20 per month). Those aged 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 s from non-profits get opened¹...with 3.4% generating a click.¹ But if fundraising s 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 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/ enquiries Number of NEW people added to mailing list Number of donations / products sold Value of donations / products sold
The Fundraising Pyramid Legacies Major Gifts Committed Giving Appeals Recruitment 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? Legacies Major Gifts Committed Giving Appeals Recruitment
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 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 -text donations -online social media donations e bay for charities charity giving website The Mobile Data Association lots of good information about the mobile technology market useful resource Charities Aid Foundation text donation service
Acknowledgements John Baguley- Marcy Heim –the Artful Asker
For more information Manchester Community Central, FREEPOST NAT4553 Manchester M60 3BR Telephone Web manchestercommunitycentral.org