"Fund Raising and Revenue Generation" module lead by Shifa Soomar from ISB (Diffusion Pune - 2 day residential workshop for non-profit and social enterprises)

1. Sponsored by
Fund Raising &
Revenue Generation
Shifa Soomar

2. Agenda
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

3. Introduction to Fundraising
Cover
Backbone of a non-profit Expenses
‘People give to people to help people’
 Relativity of gift size
 Giving starts at Home
Higher Raise
Impact Fundraising Awareness
Bond with
Society

4. 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.
To whom
Context
or what
How
Where
much
How Who
When

5. Who Gives?
Gender Age Education Marital Status
Income Employment No. of children Homeownership

6. Why They Give?
Self Interest Emotions
• Self-Esteem
• Sympathy Empathy
• Atonement for Sins
• Recognition
• Access to Services
• Fear, Pity & Guilt Values
• Reciprocation
• Social Justice Altruism
• In memoriam
• Tax

7. Reasons for Support
Personally asked to
contribute
Those who have more 21%
should give to those who
have less
30%
To get a tax deduction
7%
To fulfill religious obligation
Something is owed to the or belief
community 20%
22%

8. Reasons for Non Support
I feel that charities are
not deserving
3%
In the past, charities have Other
not acknowledged my 9%
support
4%
The quality of services
provided by charities to
I cannot afford to offer my
their donors is poor
support to charity
7%
23%
I find charity
communications
inappropriate Charities ask for
12% inappropriate sums
23%
The government should
fund the work undertaken
by charities
19%

9. Fundraising Planning Framework
Vision/Mission Budget Schedule
Organizational Monitoring &
Tactical Plans
Objectives Control
Fundraising
Key Strategies
Audit
Where are we now?
Where do we want to be?
Fundraising
SWOT Analysis
Objectives How are we going to get there?

10. 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

11. Organizational Objectives
What the organisation aims to achieve Finance
Applies for the whole organisation
Human Resources
Service Delivery

12. Fundraising Audit
Most crucial stage of Planning process
PEST Framework Market Study
The Fundraising function and its
environment
Internal and external factors affecting APPROACH
organisation’s fundraising ability
Competitor Analysis Internal environment

13. SWOT Analysis
Take only key information from audit
Contextualise strengths and weaknesses
One step further: SWOT Analyses for each donor segment
Internal drawbacks
Strengths What are you good at? Weaknesses
Barriers to
Competitive advantage
development
Opportunities New audiences, new Potential P,E,S,T Threats
techniques Challenges

14. 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

15. Key Strategies
Broad means by which objectives will be achieved
Overall
Direction
Case for
Targeting
support
Elements
of
Fundraising
strategy
Branding Positioning
Segmenting

16. Tactical Plans
Finer detailing of strategies
Action points to achieve key strategies
Large Organisation
Small organisation = Customised action
=1 Action plan plan for each donor
segment

17. Budget
Easier with experience
% of
previous
year’s
donations
% of current
year’s What can
budgeted be afforded
donations
Approaches
Competitor Task
matching Method

18. Scheduling
When will the action points be undertaken? By whom?
PERT
TOOLS
Gantt
CPM
Chart

19. 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

20. Assessing Fundraising Performance
Cost per
Percent Average Average
Face Ratio dollar ROI
Participation gift size cost per gift
raised

21. Fundraising Methods
Bequest, In
Direct Corporate
Online Major Gift Memoriam Planned Grant
Response Giving &
Fundraising Fundraising & Tribute Giving Fundraising
Fundraising Fundraising
giving

22. Direct Response Fundraising
Primary Elements Pillars of Direct Response
Sufficient
Offer Targeting Continuity
Information
Explicit ‘call to A means of
Interaction Control
action’ response

23. Direct Response Fundraising
Key Stages
Monitoring,
Defining
Fulfillment Control and
Objectives
Appraisal
Segmenting Message
Media:
Targeting Selection and
Planning

24. Stages of Direct Response Fundraising
Objectives
Define:
From how
At what cost
many?
How Much?
How?

25. Stages of Direct Response Fundraising
Segmentation
Cheapest,
Hardest, most
easiest source
expensive source
Warm Donors of List of
EMGO Lapsed potentials other Cold
supporters ’ list nonprofits prospects
Targeting: You may have the best campaign/approach, but is it reaching the right people?

26. Stages of Direct Response Fundraising
Media: Selection & Planning
Press & Magazine
Direct Mail Free-Standing Inserts
Advertising
• List Purchase • Placed in • Tried and tested
• Test Mailing magazines/newspapers • Works well for
• Pack Design • Attractive design emergency causes
• Should be suitable for • Provide the problem
audience and the solution
• Higher effectiveness,
but higher costs too

27. Stages of Direct Response Fundraising
Media: Selection & Planning
Direct Dialogue Tele-Fundraising Radio
• Face-to-face • Donor Acquisition & • No visual recall
• Sites of high foot fall Development • Works well when
• Increasing use of • Inhouse or outsourced integrated with other
technology • Can be integrated with media
• More first-time donors campaigns on various
(80% under 30) media

28. Stages of Direct Response Fundraising
The Message
• Content over length
• Get to the point
Writing Copy
• Active over passive
• Passion, honesty and conviction
• Back of envelope more important than front
• Top, Bottom, Middle.
Illustration, Typeface &
• Handwriting vs printed text
Design
• Numbers vs words
• Don’t forget the P.S.

29. Stages of Direct Response Fundraising
Fulfillment
‘Back-end’ of a recruitment
campaign
Acknowledge Answer
Honeymoon stage is critical
Close the deal
Bank

30. 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

31. 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

32. Online Fundraising
Characteristics of a successful
website
Commerce
Accessibility
Content
Accountability
Community
Education
Interaction
Empowerment
Successful Online strategy

33. Online Fundraising
E-Fundraising Mix
Search Engine Online
Opt-in E-mail
Marketing Partnerships
Online PR Interactive Ads Viral Marketing

36. Major Gift fundraising
The
Communitarian
The Devout The Investor
Seven faces
of
Philanthropy
The Altruist The Socialite
The Repayer The Dynast

37. Major Gift fundraising
Major Gift Development Process
Identify & Evolve
Strategise Engage
Focus Strategy
Continued
Acknowledge Ask Assign ‘ask’
engagement
Renewal

38. Corporate Giving and Fundraising
Why do Corporations give?
Corporate Ethical Political Stakeholder
productivity Reasons Influence Satisfaction

39. Corporate Giving and Fundraising
Forms of Support:
Donations of Donation of
Donations of
Cash Donations products/servic employees’
stocks & shares
es time
Employee Workplace
Publicity Events
Matching Gifts collections
Group Employee Workplace
Sponsorship
Presentations Fundraising giving

40. Corporate Giving and Fundraising
Selecting the Right Organisation
Profitability Turnover Longevity
Country of Nature of
Business Sector
ownership Shreholding
Fit can be analysed
Potential Fit through values, brand and
objectives

41. Corporate Giving and Fundraising
Benefits Drawbacks
Increase in
Larger volunteer ‘Selling out’
amount and
base Exclusivity
stability in revenue concern
Increased Wider reach for Access to
Credit on
awareness donor acquisition non-profit’s
collateral
database
Ability to leverage
knowledge of
corporate entity

42. 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

43. Importance of Donor Retention
HOW TO MAKE YOUR DONORS STAY
Keep your donors informed: Make them feel important:
Timely gift
Donor Recognition
Newsletters Annual Reports acknowledgements
(plaques/certificates)
(email/telephone)
Donor Milestone Preference &
Invitation to Understand the Correspondence Permission based
Events motivation
Personalized
Communication

44. 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’

45. 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).

46. Integration Models
• The enterprise and the social program are one and the
same
Embedded
• The business is created to serve clients (central to the
mission)
• The business activities overlap with the social
programs
Integrated
• The business is created as a funding mechanism and to
expand/enhance the mission of the organization
• Social and business activities are separate and may or
may not be related to the mission of the organization
External
• The business is created mainly as a funding
mechanism to support social activities

47. 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.

48. Hybrid Organisations
Challenges of the Hybrid Structure:
Legal
Financing
Structure
Organizational
Customers & Culture and
Beneficiaries Talent
Development

49. Key Factors for a Successful Social Enterprise
Good fit
Industry Realistic
Knowledge expectations
Consider it a
Hire Right
business

50. Perfect Pitch
What do you want?
Give Create Get the
Connect
Information Awareness Money

51. Perfect Pitch
Elements of the Pitch
Introduction
What you Who you
want are
Why you
Who you
are
serve
important

52. Corporate Giving and Fundraising
Delivery Technique
Opener
Memorable
Phrase
The Ask

53. Perfect Pitch