INCOME GENERATION

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INCOME GENERATION

• Dianne Armstrong, CFRE, FFINZ

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Goals for the presentation

• Background to the sector
• Fundraising 101
• Brief environmental scan
• The importance of Brand
• Challenges
• Possible solutions for sustainability

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Who do we have in the room?

• Any Fundraisers?
• CEOs?
• Service Delivery staff?
• Number of different charities ?
• Others ?

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Fundraising as it should be

• Regarded as core organisational activity
• Positions us in peoples hearts and minds
• Anchors the charity as being community based
• Impacts on every aspect of the organisations
  operations
• Primary mechanism for enhancing brand and image
  contd/.

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• Tool for marketing, educating and informing
  stakeholders
• About building relationships with the wider
  community
• Long term strategic activity measured in both
  quantity and quality terms
• Encouraged as a broad spectrum activity that
  requires balanced involvement at local, regional
  and national levels

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Truths of Fundraising

• We are not raising money for the organisation
  but the service it provides
• The donors are not ours
• Stop looking for wealth, look for generosity!
• Ethical fundraising must be effective!

Dianne Armstrong CFRE
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The Flag for fundraising must always fly from the
flagpole of the Executive or Board and the senior
Management office reminding everyone of the
inter-relatedness of responsible management,
responsive programmes and productive fundraising.

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• Fundraising is a people to people business
• Its professional marketing activity. There is a
  shortage of good fundraising people available
• Requires highly skilled central coordination
  presenting a range of project focused
  opportunities

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Where is income being generated?

• 2002 Funding NZ
• Philanthropic Trusts 142,801,284
• Local Government 28,200,000
• Gaming Machine Trusts 131,241,000
• Lottery Board 91,381,417
• Personal Donations 281,905,620
• Bequests 37,698,180
• Central Government 920,595,000
• 
  _______________
• 1,633,822,501
• Corporate Giving 80,000,000
• Payments fees for
• Service 1,250,000

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New Zealanders are strong supporters of
charities New Zealanders give an estimated
320 million dollars each year to charitable
causes In 2003, 93 of New Zealanders donated
to charity 54 of people prefer to support a
cause or organisation that benefits their local
community and 26 prefer to support a New Zealand
cause 54 of New Zealanders have participated
in voluntary or charity work in 2003
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New Zealand has over 30,000 not-for-profit organis
ations. If each were allowed one day to solicit
donations, every day there would be
90 organisations asking
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So what can we do ?

• Where will our income come from next year and in
  the years to come
• Public have been encouraged to give their new tax
  breaks to us this week!!

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Is this an option?
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Do we all agree why people give?

• Friends or family benefitting from the cause
• Believe in the cause
• A member of, or involved with e.g. church,
  service group
• Ive suffered from this ailment
• Is NZ or local based
• Sector focused e.g. children, animals, disease
• My giving helps altruism
• Reputation of organisation
• Honesty/reliability of organisation

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What might this graph of giving look like in
2008/2009

• What has changed
• Tax rebates
• Gaming Charities
• Financial impacts on Corporate sector

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Five key trends and their impact on the voluntary
sector
The ageing population The any-way-up family
Diverse households The education escalator
Delays in financial independence
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• And in such a period of rapid change the best
  perhaps the only way a business can hope to
  prosper if not to survive, is to innovate.
  (Peter Drucker, 1994)

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INNOVATION

• What would that look like for us?

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The market we are operating in is changing
rapidly. For example, a lot of charities are
moving from campaigning to service delivery
funding structures are changing rapidly
government funding is moving from grant to
contract and lets not even start on new
communication technology. All of this provides
both new ideas and solutions. Innovation is about
keeping your eye on the ball and matching these
new solutions to the new or old problems.
Expectation has changed donors are judging
charities on commercial expectations e.g.
service, transparency. We stand still at our
peril, which is the same for anyone in a
competitive market place., nfpSynergy
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Perspectives on innovation
Innovation means thinking without barriers and
using inspiration as a springboard to achieve
solutions. Innovation is the ability to see
through problems and come out the other side with
exactly (or close to) what you wanted.
Challenging pre-conceived ideas is frequently a
part of innovation particularly in terms of
looking internally at the organisation and
asking, weve always done it this way why? Is
it really valid? Is it the best way of doing
it? Innovation is about having to make things
work with limited resource, having to get the
best value out of what you do. On that basis,
charities should be leading and not following!
NFP Synergy
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To give away money is an easy matter and in any
persons power. But to decide to whom to give
it, and how much and when, and for what
purpose, and how, is neither in every
persons power, nor an easy matter Aristotle
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What are the Boundaries/Challenges to funding

• 25,000 registered charities
• Growing demand for services
• Splintering of brands
• New entrants to the market e.g. hospital wards
• Government Funding
• Long term sustainable funding rather than year on
  year approach
• Restricted/Reserve funds

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Face of our sector

• We are all about
• Independence
• Positive lifestyles
• Give us half a chance and look what we can do
• Positive achievements

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Rather than

• Oh poor me.
• Look at what Ive hand to endure ..
• Scare tactics e.g. if you do or dont, x will
  happen

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Branding

• Who in your organisation is responsible for
  protecting your Brand?
• Where does Brand intersect with Fundraising
• What is a Brand?

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• Who wears/carries the Brand in your organisation
  ?
• Is your Brand instantly recognisable?

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• Is your organisation the supermarket or the
  speciality store?
• Find your niche and exploit them
• Design your product to fit the marketplace
  (donors) rather than expect the marketplace to
  fit your product
• Everyone in the organisation is part of marketing

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What is a Brand

• A name, term, sign, symbol or combination of
  those, intended to identify the services and to
  differentiate you from others
• Brand Equity the value based on the extent to
  which the brand has loyalty, awareness and
  perceived quality
• Brand Extension using a successful brand to
  launch a new product
• Brand Image The set of beliefs consumers hold
  about the brand

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Climb a Mountain, Go to the Jungle, Think Like a
Fish Kevin Roberts

• If you want to look at a tree stay on the ground.
  If you want to see the forest climb a mountain
• This means you have to see the big picture

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• If you want to understand how a lion hunts, dont
  go to the zoo, go to the Jungle
• Many organisations gather information by going to
  the zoo, feed them snacks, let them go through
  the motions of contributing and responding to
  questions. rather than going out into the
  jungle

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• The Maori say, If you want to catch a fish,
  first learn to think like a fish
• Working with consumers, donors and sponsors and
  learning to think and feel as they do is how you
  gain success

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So where is your income coming from tomorrow?

• Can 30,000 of us continue to fragment and
  compete?
• What is/will happen to Gaming income
• What might a new Government bring to the table
• America has coughed so how will the sniffles
  affect us?
• Do we need stars to achieve our goals?

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Mind-sets

• Organisation Orientation Network Orientation
• Mind set Competition Collaboration
• Strategy Grow the organisation Grow the industry
• For impact
• Typical Compete for scarce resources Grow
  funding pie for all
• Behaviours Protect knowledge Share knowledge
• Develop competitive advantage Develop skills
  of competitors
• Hoard talented leadership Cultivate and
  disperse
• leadership
• Act alone Act collectively
• Seize credit and power Share credit and power
• Structure Centralised Decentralised

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A Peacock in the Land of Penguins

• Adapted from a book by
• BJ Gallagher Hateley Warren H. Schmidt

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There once was a time, in the not so distant
past, when penguins ruled many lands in the Sea
of Organisations. These penguins were not
always wise, they were not always popular,but
they were always in charge.
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The top management wore the same outlook in their
distinctive black and white suits. They
believed that uniformity is the way to do
things Uniformity is Unity.
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On the other hand, worker birds wore colours and
outfits that reflected their work and lifestyles.
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Birds who aspired to move up the corporate
ladder were encouraged to adopt the penguins
code of conduct and wear the penguin suits.
They learn the penguin stride and follow the
example of their leaders.
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One day, Perry the peacock joined the Land of
Penguins. He was loud, colourful and full of
new ideas. Although he was different,
the penguins were impressed by his new
ideas. They felt that he has real Penguin
Potential.
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Initially, everyone was happy. The penguins
were pleased with their new recruit. Perry
was creative and he brought in good results.
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However, as time went by, the penguins began
to murmur against Perry. He was too loud, too
colourful and had too many new ideas that
intruded the penguins comfort zone.
Too Loud!
Too colourful
Too many new ideas!
We are NOT comfortable!
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Perry was also unhappy. The penguins tried to
turn him into a penguin. He was told to try
to be like the rest of us, wear a penguin
suit. Both parties were unhappy.
Be like us!
Leave me alone...
Wear a penguin suit!
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We see this story unfolds in many
organisations today. Creativity and
innovation are seen to be a breath of fresh
air in many organisations. Many Perrys are
recruited for their creativity. Yet, along the
way, their creativity is stifled by the need to
conform to the norm.
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There will always be Penguins and Peacocks in
any organisations.
Other than penguins and peacocks, there are also
pigeons who are peacemakers in the office,
Sparrows who try to be neutral so as to keep a
low profile or Ostriches who choose to bury
their heads in the sand.
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Peacocks bring in varieties and new ideas,
But, the stability provided by the penguins
must not be ignored. Penguins, being
the backbone of the organisation, need to
recognise that diversity can exist in an
organisation if there is acceptance and trust.
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When we learn to appreciate one anothers
differences, we become more willing to listen,
more open to new ideas and more eager to
grow. Birds of different feathers can work
together in harmony.
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My view

• We need to work together
• Joint events/campaigns
• If our Brands are secure there will not be an
  issue
• Changed thinking
• Individual donors will be key
• STEWARDSHIP, STEWARDSHIP, STEWARDSHIP
• We need to be ethical and transparent

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Questions
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• THANK YOU
• Dianne Armstrong