empower: course 2012 module 19 marketing and fundraising day i lecturer: thomas witte
TRANSCRIPT
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emPower: Course 2012
Module 19
Marketing and Fundraising
Day I
Lecturer: Thomas Witte
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Marketing and Fundraising Module
Objectives
Understanding of marketing (NPO vs. PO) Understanding the fundraisingmarket (e.g. In CH)? Understand the fundamental essence of fundraising Know the role of fundraising in an organisation like PCF Know about the attitude of different target groups Know the basic instruments of fundraising Understand how to become a succesful fundraiser
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What's Marketing?
Marketing is the process of communicating the value of a product or service to customers. It is the overall strategy and function of promoting a product or service to the customer.
It's about selling!
Discussion in Groups of 4-5:
What do NPO's like PCF sell? To whom?
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Marketing NPO vs PO (I)
Profit-oriented organisation (PO): marketing entirely geared towards sales market;
Strict separation between PR and marketing desirable because of different objectives;
PR suggests balance of interests between company and environment;
Marketing geared towards sales result – product advertisement as chief means of PR.
It's about profit maximization!
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Marketing NPO vs PO (II)
Non-profit-organisation (NPO): success on supply market is crucial!
Requires activities within the organisation (members, staff) and in the service area (beneficiaries, target groups) balancing act!
NPO: balance marketing! Marketing and PR are closely linked.
It's about benefit maximization!
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Marketing NPO vs PO (III)
Definition of marketing according to the Fribourg Management-Model (FMM):„Management of crucial exchange processes within a NPO.“
Strict separation between PR and marketing is not desirable in the NPO sector.
Department within NPO is often called„Marketing & Communications“
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Marketing NPO vs PO (IV)
According to the FMM PR serve two functions:
- PR as a communication instrument that accompanies marketing activities(e.g. fundraising);
- PR as a separate marketing activity aimed at increasing acceptance of and confidence in the concerns of the NPO.
Discussion: Why is PR extremly important for NPO?
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Marketing NPO vs PO (V)
In addition to the four classic marketing Ps (Product, Promotion, Price, Place), NPO marketing is characterised by two additional Ps:
- Politics: Political action / making an impact(Communicating the organisation‘s ideal)
- People: donation incentive(e.g.: What does the donor receive in exchange for his contribution?)
Question: what might be motivations to donate?
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Some Motivations to donate Religion Good Feeling Image To make a Difference Personal Experience Tax Deductions
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What is fundraising?
All systematic, targeted and planned measures to help procure monetary and non-monetary resources, and services for Non-Profit-Organisations (NPO);
Sub-section of NPO Marketing; „Fundraising is the gentle art of teaching the joy of giving“.
(Hank Rosso, Institute for Philanthropy, Indiana USA)
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Fundraising – Organisational approach
Your Organisation needs to have:
Vision; Strategy; Mission Statement; Positioning; Image; Brand awareness;
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Marketing hierarchy in a Non-Profit-Organisation
StatutesStrategy
Idealsof the organisation
Marketingconcept
Marketinganalysis
Marketingobjectives
Marketingstrategy
Positioning
Marketingmix
Product(Programme)
Price Place Promotion People Politics
Fundraising Public RelationsService
marketing
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Organization chart PCF
Executive Director
Adminis-tration
International Programmes
Programmes Switzerland
MarCom incl. Fundraising
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The donor market in Switzerland
Saturated market – increasing numbers of international NPO‘s – cutthroat competition;
Donation volume 2010: ca. 3 Milliard CHF
Donation from Individuals: ca. 1,25 Milliard CHF
Average donation per household: CHF 694.-
Donation from companies: ca. 0,8 - 1 Milliard CHF
Donation from foundations: ca. 1 - 1,5 Milliard CHF
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The donor market in Switzerland
69 % of all households in Switzerland donated 2010
74 % women; 64 % men
86 % over 64 years old; 47 % up to 34 years old
85 % with income more than CHF 8‘000.-;
46 % with income up to CHF 4‘000.-
77 % with higher formation; 55 % with low formation
CHF 786.- in the german part of Switzerland;
CHF 403.- in the french part of Switzerland
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The donor market in Switzerland
Reasons to spend 2010:
78 % are convinced of the cause and of the organisation 67 % out of solidarity with others 36 % believe that one day they need it too 35 % out of pity 17 % out of dismay in their social network 9 % know people working for organisations 9 % own dismay 5 % because government is not acting properly 4 % out of religious reasons
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The donor market in Switzerland
Reasons not to spend:
42 % because of own financial situation 25 % because of missing trust in organsations 9% say they do not get any support themselves 7 % because they are in-training 4 % give to relatives directly 3 % have no interest 3 % argue that the money is used improperly
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The donor market in Switzerland
Whatfor do people spend:
56 % for the fight against diseases; 56 % for the handicapped; 50 % for children; 43 % for animals; 43 % emergency aid in Switzerland; 42 % against the hunger in the world; 40 % for development aid;
38 % for the nature; 36 % for the Swiss mountaineers; 35 % emerceny aid overseas; 34 % for the poor in the world; 31 % for the human rights; 31 % for the refugees; 29 % for old people; 21 % for prevention of drugs;
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What is Fundraising?
Definition Fundraising
Fundraising is according to Urselmann the systematic analysis, planning, implementation and controlling of all activities of a non-profit-organisation, which have as a objective to raise all the resources (money, benefits in kind and services) needed to fulfill the charter of a Non-Profit-Organisation through a con-sequent orientation to the needs of the provider of the resources without any material reward.
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What is Fundraising?
Formation in Fundraising Management
Organisation: Basics Management; Customs Relationship Mangagement (CRM); Ethics and Data Security; Project Management; Quality Management; Organisational Developement; Accounting.
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What is Fundraising?
Communication and Strategy Marketing, Public Relations, Analysis of Market and Stakeholders, Complaint Management, Trend-Scouting
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What is Fundraising
Fundraising Instruments Face-to-face-Fundraising (Street, Door-to-door) Direct Marketing Dialogue-Marketing Telemarketing E-Marketing On-/Offline-Campaigning Events Cause-related Fundraising (Companies, Foundations) Relationship Fundraising (Personal ask) Database Management (Define Target Groups)
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Donor Pyramid (sophisticated)
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Donors Pyramide (PCF)
LegateLegate
Major DonorMajor Donor
High DonorHigh Donor
GoodparenthoodGoodparenthood
MembersMembers
Regular DonorsRegular Donors
FirsttimedonorsFirsttimedonors
InterestedInterested
Suisse PublicSuisse PublicInte
nsity
of
Rel
atio
nshi
p
Fin
anci
al E
ngag
emen
t
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Fundamental Requirements to a sucessful fundraising
High degree of brand awareness; Good Image; Confidence; Good products = Projects, which are beloved from donors; Serious work on all levels; Linkage Communication – Fundraising; People who act as Door openers; Good Results in the projects which are easy to describe;
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Fundamental fundraising rules
Do not assume Research is the beginning of the game Always seek dialogue Ensure transparency
(confidence, use of donations, be honest, give all informations)
Fundraising never ends with the money:
Show results; impact makes the difference
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The challenges for NPO‘s in Switzerland
Integrated fundraising (in line with PR and other communication instruments)
Cost-efficient fundraising More direct and innovative appeals to target groups More efficient choice of target groups New media (internet, sms, facebook, twitter, etc.) increasing professionalism on both sides (NPO & Donors)
Question: What are the challenges to FR in your Country?
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Ken Burnett's 29 Fundamental Rules1. People give to people. Not to organisations, mission
statements, or strategies.
2. Fundraising is not about money. It’s about necessary work that urgently needs doing. Money is the means to an end.
3. Fundraisers need to be able to see things through their donors’ eyes. Or, to put themselves in their donors’ shoes.
4. Fundraisers need to really understand their donors. If they are to understand you, you must first understand them.
5. It helps if you are a donor yourself. No one should be a fundraiser without first being a donor.
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6. Friend-making comes before fundraising. Fundraising is not selling. Fundraisers and donors are on the same side.
7. Fundraising is about needs as well as achievements. People applaud achievement, but will give to meet a need.
8. Fundraisers need to learn how to harness the simple power of emotion. Fundraising has to appeal first to the emotions. Logic can then reinforce the appeal.
9. Offer a clear, direct proposition people can relate to. For example, ‘make a blind man see. £10.00’.
10. First open their hearts and minds. Then you can open their wallets.
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11. Don’t just ask people to give. Inspire them to give. Fundraising is the inspiration business.
12. Share your problems as well as your successes with your donors. Honesty and openness are usually prized more highly than expert opinion and apparent infallibility.
13. Bring the need close to the donor. To help this idea stick I was taught the adage ‘One needy old person next door equals ten needy old people in Manchester equals 100 needy old people in Maharashtra.’ (Of course I was living in London at the time. If you live in India, then it would be the other way round).
14. You don’t get if you don’t ask. Know whom to ask, how much to ask for, and when.
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15. Present your organisation’s ‘brand’ image clearly and consistently. It’ll pay you if your donors can readily distinguish your cause from all the others.
16. Successful fundraising involves storytelling. Fundraisers have great stories to tell and need to tell them with pace and passion so as to inspire action.
17. Great fundraising is sharing. Share your goals and encourage full involvement. When donors become truly involved in your campaign, great things happen. Share your problems too, as well as your successes.
18. Always try to turn complaints into support. The most loyal donor is the donor who has complained and has then been satisfactorily responded to.
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19. The trustworthiness of a fundraiser and his/her organisation is a reason both to start and to continue support. Trust appears to increase in importance, as people get older.
20. Great fundraising requires imagination. Too much fundraising looks like everything else.21. Great fundraising is getting great results. If your results are mediocre, your fundraising probably is too.
22. Always be honest, open and truthful with your donors. Donors will not forgive you if you are less than straight with them.
23. Avoid waste. Donors hate waste.
24. Technique must never be allowed to obscure sincerity. As all actors know, you can’t fake sincerity.
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25. Fundraisers have to learn to talk to their donors where they are, not where the fundraiser might want them to be.
26. Fundraisers and donors have a relationship of shared conviction. This is much more important than their shared commercial interest.
27. Great fundraising means being ‘15 minutes ahead’. To keep just a little bit ahead you have to learn to spot opportunities and take (careful) risks.
28. Fundraisers should learn the lessons of history and experience. Anyone who would be an effective fundraiser needs first to do some homework.
29. Always say ‘thank you’, properly and often. And accurately (few things are less forgivable than thanking a donor for something he or she hasn't done). It’s also a good idea to be brilliant at saying ‘welcome!’.
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Homework
Quick Fundraising-Market-Analysis of your Country using the Internet
Try to find out the size of your national FR-Market
Try to find out the dimension of Giving by Individuals, Foundations and Companies in your Country
Who are Competitors to your Organisation on your national or regional FR-Market – are they in the same Sector (Education) or in different ones?
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emPower: Course 2012
Module 19
Marketing and Fundraising
Day II
Lecturer: Thomas Witte
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The fundraising action plan
Analysis; Fundraising objectives; Fundraising segments (target groups); Exchange processes (what do you need from the
progamme-staff, what do they need from you); Positioning of action (which PR channels do you use); Fundraising mix (6 P‘s); Organisation (who has to be involved in Project
Management); Budget; Controlling.
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Fundraising objectives
Direct objectives
(Volume of overall donations, target volume for individual and institutional donations);
Indirect objectives
(increase of donor base, raising awareness about the organisation‘s objectives);
Basic action
(market penetration, market extension, diversification)
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Fundraising objectives
Cognitive objectives:
Who has to know what about us and till when?
Image objectives:
How do we want to be seen? How do we want to present ourselves?
Action objectives:
What do we want the target groups to do?
How and till when?
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Fundraising segments
Individuals
(Donors, Major/High Donors, Legacies);
Corporations
(Corporate giving, Sponsoring);
Foundations;
Public Donors / Authorities
(Confederation, Cantons, Municipalities).
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Fundraising Mix
Core message as fundraising product / offer (Product)
Communication instruments / vehicle / booster (Promotion);
Category of donation (Price);
Distribution / Contact potential (Place);
Aspects of donation incentive (People);
Political action / Support (Politics).
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Controlling
Financial results;
Cost / Benefit;
Donor fidelity (RFM: recency, frequency, monetary value);
Degree of popularity;
Image.
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Group Work of 4-5 Students: Fundraing Action Plan Choose one of your Organisations; choose one Project
that needs to be funded; use the available Information about the national/local Fundraising-Market and the aspects of planning Fundraising Actions mentioned before:
To create a Fundraising Action Plan to find funding for the project that fit's for the given context (i.e. Fundraing-Market)
Form: Präsentation at Flip-Chart
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Example of Application-Form
http://www.ramsayfoundation.ch/pdf/Gesuchsformular-en.doc
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Some emotional Fundraising6 Core-Emotions are driving Donors to act/give:
Happyness Surprise Anger Disgust Sadness Fear
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Some emotional FundraisingWatch Fiona
http://www.youtube.com/watch?v=YJkZXh9v_i4
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Individual work Write down a short Fundraising Letter to ask Individuals to
support one of your organisations project. Tell a story of a beneficiary of your project work (your
allowed to use fiona‘s story as a blueprint): What‘s the problem? How can it be solved? What Difference can the donor make if he‘s giving you
financial support? Ask for a donation!
Präsentation: Read the letter
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Thank you very much für your attention!
Feel free to contact me for questions concerning Marketing and Fundraising: