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Philanthropy and Government Funding

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Title: Philanthropy and Government Funding


1
Philanthropy and Government Funding
2
Outline
  • Fundraising facts
  • Nonprofit marketing basics
  • The special problem of young people

3
Not All Donors Are Alike
  • Potential donors prospects who have not given
    yet
  • New donors given for the first time.
  • Transition donors given three or more years in a
    row
  • Core donors given three or more years in a row.
  • Lapsed donors. After two years deeply lapsed.
  • Lapsed but reactivated donors

4
Strategies for different donors
  • WIN
  • KEEP
  • LIFT

5
Donor Ecosystem
6
The dimensions of a typical list
7
Gift sizes
8
Donor retention
9
Average number of donations
10
Long Term Value Index
The LTV of donors can be accurately predicted by
the amount of their first gifts.
10
11
Maslows Pyramid
12
Maslows Fundraising Pyramid
Different donors require different messages
13
Why Do Donors Defect?Survey of British Donors
who Stopped Giving
  • Other NPOs more deserving 27
  • Cant afford 22
  • Dont remember supporting 11
  • Didnt like fundraising 7
  • Not re-asked to give 3
  • Bad service 2
  • Not enough information on uses 2
  • No thank-you 2
  • Felt not needed 1

Ref. Sargeant 2001
14
Do Donors Care About Efficiency?
  • Reporting low operating and fundraising expenses
    is a common fundraising tool
  • Does it make a difference?
  • Greater efficiency
  • Less outreach to new donors
  • Model
  • Result no effect in a sample of different NPO
    types
  • True also for individual subsectors?

Ref. Frumkin Kim 2001
15
The Big Myth Donor Fatigue
  • Data show that complainers are rarely donors in
    the first place
  • People who give to you love you
  • and people who love you like hearing from you
  • People who give once are waiting to give again

16
The Best Donor Pool
  • Volunteering and giving are complements, not
    substitutes
  • Volunteering predicts money giving more strongly
    than income, age, religion, or education
  • Dont forget that donor fatigue doesnt exist

17
Two secret weapons
  • Asking
  • Public giving

18
Important Lessons
  • Enterprises leave money on the table
  • if they dont track donors
  • if they treat all donors as the same
  • Focus on the core
  • but dont neglect the othersthey are the future
    core

19
How to Fundraise
  • Build a donor file
  • Organize it by type of donor
  • Design appeals appropriate to donor type
  • Focus time and money on the high-yield donors

20
Getting beyond the myths
  • Myth 1 Giving makes us poorer
  • Myth 2 People are naturally selfish
  • Myth 3 Giving is a luxury
  • Myth 4 An entrepreneurial nation can afford to
    forgo service
  • Myth 5 Fundraising is a necessary evil

21
Outline
  • Fundraising facts
  • Nonprofit marketing basics
  • The special problem of young people

22
Social Enterprise Marketing
  • Marketing Plan, price, promote, and distribute
    an NPOs programs and products
  • Marketing tasks
  • Define target markets
  • Who should our clients (or donors) be?
  • Link to these clients
  • How do we reach them?
  • What price attracts them?
  • How do we communicate with them?

Ref. Rodos
23
Why Is Social Marketing Difficult?
  • Nonprofit culture (i.e. attitudes about
    efficiency, bottom line, commercialization, etc.)
  • Unrealistic goals
  • Unreliability of resources (i.e. volatile
    donations)
  • HR issues (staff vs. volunteers)

24
Steps in Building aMarketing Strategy
  • External analysis
  • Who are my constituents?
  • Who are my competitors?
  • What is my industry?
  • Internal analysis
  • What do constituents think we do?
  • What do constituents think we ought to do?
  • Firm development
  • Market growth
  • Product growth
  • Strategy selection and evaluation
  • Communication

25
Competition
  • Competition for what?
  • Members/clients
  • Donors/volunteers/donations
  • Inventory (e.g. books, art works, etc.)
  • Competition with whom?
  • Other social enterprises
  • For-profits
  • Governments
  • Identifying competition
  • Similarity of prizes (management perspective)
  • Similarity of services (client/donor perspective)
  • Common competitor inaction (e.g. no medical care)

26
Firm Development
Nonprofit example University
Ref. Rodos
27
Communication Tools
  • Explicit communications
  • Annual reports
  • Newsletters
  • Press releases
  • Brochures
  • Direct mail
  • Media advertising
  • Telemarketing
  • Special events
  • Implicit communications
  • Pricing
  • Products
  • Distribution

28
Targeting Messages to Demographic Groups
Ref. Van Slyke 2002
29
Messages Types
Found to be most effective
Ref. Clary
30
Outline
  • Fundraising facts
  • Nonprofit marketing basics
  • The special problem of young people

31
What Everybody Knows
  • Nonprofits face a generational crisis

32
Generations
  • GI Elders (born before 1925)
  • Silent Generation (1925-1945)
  • Retired
  • Still working
  • Baby Boomers (1946-1964)
  • Gen-X (1965-1975)
  • Gen-Y (1976- )

33
Why are young people a problem?
  • There arent that many of them
  • They are disloyal
  • They are less charity-oriented than older people

34
The baby bust
35
This job doesnt thrill meGoodbye
36
Significantly lower average annual giving
37
But are we looking at the right things?
  • Immigration has helped to backfill younger
    cohorts
  • Workforce loyalty is an old concept
  • Younger generations may not have matured into
    philanthropy yet
  • New generations may give in new ways

38
New generations face a changing workplace
  • Industry Job Growth (millions)
  • Employment services 1.58
  • Local government schools, colleges, and other
    educational services 0.78
  • Local government, excluding education and
    hospitals 0.76
  • Offices of physicians 0.76
  • Full-service restaurants 0.70
  • General medical and surgical hospitals,
    private 0.65
  • Limited-service eating places 0.59
  • Home healthcare services 0.54
  • Colleges, universities, and professional schools,
    private 0.47
  • Management, scientific, and technical consulting
    services 0.47
  • Computer systems design and related
    services 0.45
  • State government schools, colleges, and other
    educational services 0.44
  • Community care facilities for the elderly 0.32
  • Child daycare services 0.30
  • Accounting, tax preparation, bookkeeping, and
    payroll services 0.28
  • Hotel (except casino), motels, and all other
    traveler accommodation 0.24
  • Offices of dentists 0.24
  • Elementary and secondary schools, private 0.22

39
High-end idea professions are ascendant
  • Higher education
  • Financial legal services
  • IT
  • Consulting
  • Design
  • Medicine
  • Prized characteristics in idea professions
  • Entrepreneurship
  • Creativity
  • Individuality

40
Mobile young professionals
  • May appear disloyal by job-hopping
  • but are really just responding to the job market
  • What do they need?
  • Social and professional networks
  • Community
  • Ideas and education

41
Voluntary professional associations make young
people more competitive
42
High-tech vs. high-touch
  • High tech the cutting edge. Innovative newness
  • High-touch filled with human meaning
  • Young people are comfortable with high-tech, but
    still require high-touch experiences

43
Why do people give?
  • To discharge personal duty
  • To have an impact
  • A younger donor wants to know and feel that her
    giving makes a difference.
  • Merkle-Domain
  • Impact is most evident in high-touch giving

44
Membership only by way of a fee very low-touch
Percentage that belong to a fee-based organization
45
Traditional money giving low-touch
Percentage that give money each year
46
Giving time higher touch
Percentage that volunteer each year
47
Giving blood hyper-touch
Percentage that give blood each year
48
Find ways to provide and demonstrate these
benefits
  • Social and career networks
  • Ideas and education
  • Community
  • Opportunities to serve, with tangible impact

49
Use this message Giving is good for you and your
career
  • Money giving pushes up money earning
  • Volunteering has a huge impact on happiness and
    health

50
Be high-touch with donors
  • Create tangible experiences for donors
  • Show people the impact of their gifts
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