1. THE END OF
FUNDRAISING
HOW TO RAISE MORE BY SELLING YOUR
IMPACT

2. WHY SO HIGH?
Cost Per $100 Raised
$25
$20
$15
$10
$5
$0
Obama McCain Corporations Nonprofits
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© 2010 Mission Measurement, LLC.

3. WE HAVE NO LEVERAGE
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4. SUPPLY & DEMAND ARE DISCONNECTED
Donors
value
Nonprofits Impact
Buyers
Beneficiaries
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© 2010 Mission Measurement, LLC.

5. BUT THERE’S HOPE
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© 2010 Mission Measurement, LLC.

6. SOCIAL CAPITAL MARKET
Yesterday: Independent Sector Today: Social Capital Market
Programs valued more than The market values social
results outcomes
Impact buyers act like
Relationship-driven fundraising
consumers to purchase results
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© 2010 Mission Measurement, LLC.

7. MOMENT OF GRAND IRONY…
"There are no market forces, there are no
competitors to take market share away, there are
no customers that are going to shop someplace
else...creating this kind of protected zone for
philanthropy."
Tom Tierney, chairman and cofounder of the Bridgespan Group
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© 2010 Mission Measurement, LLC.

8. FOCUS ON VALUE CREATION
High
Strategic Philanthropy High-Value Outcomes
Affinity-based appeal to Evidence-based appeal to
individuals & foundations impact buyers
Social Value
Charity Business Income
Emotional appeal to Unrelated corporate
individuals (cause) marketing
Low
Economic Value
Low Economic Value High
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© 2010 Mission Measurement, LLC.

9. THE FORMULA
Capture Market Sell
Your Impact Your Impact Your Impact
Engage Identify the Build your
stakeholders “impact business case
and define buyers” who and show
your value those your value
outcomes outcomes proposition
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© 2010 Mission Measurement, LLC.

10. A NEW SET OF STAKEHOLDERS…
Independent Sector: Social Capital Market:
Philanthropists Impact Buyers
Corporate
Beneficiaries
Partners
Upstream Beneficiaries
Foundations Board “Consumers” that can pay
Psychic Economic
Benefit Value
Service Social
Government Donors Investors
Providers
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© 2010 Mission Measurement, LLC.

11. RONALD MCDONALD HOUSE CHARITIES
Children & Families
RMHC Chapters
Owner/Operators
Suppliers
McDonald’s
Corporation
Grantees
Hospitals
Donors
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© 2010 Mission Measurement, LLC.

12. IMPACT BUYERS: SOCIAL INVESTOR
SOCIAL INVESTOR
- - - - - - - - - - - - - -
An outcomes-driven funder who has allocated a specified amount of
funding specifically to "purchase " a specific set of results.
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13. IMPACT BUYERS: BENEFICIARY THAT CAN PAY
BENEFICIARY THAT CAN PAY
- - - - - - - - - - - - - -
An individual or organization who consumes your products or services
and is able to pay for benefits received.
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14. IMPACT BUYERS: SERVICE PROVIDER
SERVICE PROVIDER
- - - - - - - - - - - - - -
An organization that relies on your outcomes to enhance its service
offering or achieve its own business objectives.
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© 2010 Mission Measurement, LLC.

15. IMPACT BUYERS: UPSTREAM CONSUMERS
UPSTREAM CONSUMER
- - - - - - - - - - - - - -
An individual or organization that relies on social outcomes produced
earlier in the value chain to generate desired outcomes or income.
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© 2010 Mission Measurement, LLC.

16. IMPACT BUYERS: CORPORATE PARTNER
CORPORATE PARTNER
- - - - - - - - - - - - - -
Companies that require certain social change in order to create direct
economic value for the business.
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© 2010 Mission Measurement, LLC.

17. IT’S NOT ABOUT YOU, IT’S ABOUT THEM
OUR NEED TO SELL THEIR NEED TO BUY
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© 2010 Mission Measurement, LLC.

18. THE 7 IMMUTABLE LAWS OF SELLING YOUR IMPACT
1. Go through the front door, not the back door.
2. Always use value pricing, not cost-plus
3. Know your customer (and speak their language).
4. Sell painkillers, not vitamins.
5. Sell outcomes, not programs.
6. Don’t oversell.
7. Don’t waste time on idiosyncratic funders.
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© 2010 Mission Measurement, LLC.

19. A NEW BUSINESS CASE…
 What does this stakeholder care about?
Name their Pain  What is the “big win” for this stakeholder?
 What is their “need to buy”?
 How can you solve their problem?
Explain your Remedy  How does your program align with their needs?
 What value do we add or how does this monetize?
 Why should the stakeholder believe you?
Show your Proof  What is your track record of success?
 How can this stakeholder partner with you?
Prescribe the Future  What are the next steps?
 How can you innovate to make this win-win?
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20. WHAT YOU CAN DO NOW
1 Focus on strengths
2 Know your outcomes
3 Socialize the concept
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© 2010 Mission Measurement, LLC.