Presenters: Greg Ulrich, Director of Advisory Services, Hope Consulting; Bob Ottenhoff, President Emeritus, GuideStar USA; Lindsay J.K. Nichols, Communications Director, GuideStar USA (moderator)
business environment micro environment macro environment.pptx
GuideStar Webinar (10/09/12) – More Money for More Good: 3 Steps to Help Nonprofits Fundraise
1. M ONEY FOR G OOD II
How to Get More
Money for More
Good
2012
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2. Poll
1. Who are you?
a. Nonprofit professional
b. Foundation program officer
c. Philanthropy advisor
d. Other
2. Have you heard of the Money for Good research?
a. Yes
b. No
3. Have you downloaded our free Guidebook?
a. Yes
b. No
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3. Where it all started… (for Bob)
To revolutionize philanthropy
and nonprofit practice by
providing information that
advances transparency,
enables users to make better
decisions, and encourages
charitable giving.
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4. Hmmm…
Money for Good research by Hope Consulting gave us pause.
Do people actually care about information… and GuideStar?
Only 1/3 of donors research ~5% research to find the best NPO
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5. Where this led
Money for Good I: 2010 Money for Good II: 2011
• Surveyed 4,000 affluent Americans1 • Surveyed 6,500+ individual donors,
advisors, and grant-makers2
• Created a baseline of Americans’ - Supported by the Gates Foundation,
giving and impact investing Hewlett Foundation, Liquidnet for Good
behaviors and preferences
• Established these groups’ research
• Found that while donors say that behaviors and unmet needs around:
how well a nonprofit performs is − Information
important, few actively try to fund − Format
the “best” nonprofits` − Channel/source
1. Nationwide surv ey of Americans with HH income of $80K+, with ov er-sample of Americans with HH income of $300K+.
2. Nationwide surv ey of 5,075 donors, 875 donor adv isors, and 795 institutionally-affiliated grant-makers
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6. Today’s goals…
1. How donors, advisors, and foundation grant-
makers behave and research nonprofits today
2. What these groups want in terms of information
on nonprofits
3. What nonprofits can do based on this information
to improve their fundraising and operations
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7. How nonprofits are researched…
We Wanted to Know… We found…
• Do individual donors really only • Yup
research 1/3 of donations? • Looking deeper we see that 20% are
core researchers, 30% occasional…
• And research varies by cause area
and familiarity
• What about foundations & advisors? • They research almost all recs/grants
• What information do people use and • All groups get their info from the NPO
where do they get it? • Individual donors rely on basic
information on the organization
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8. Supporting Details
Few donors research charities – even fewer to find the ‘best’
nonprofits
CARE RESEARCH COMPARE
Care about nonprofit Self described as Researched t o
performance doing ‘research’ compare
before donating nonprofits
Individuals
Advisors
Foundations
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9. Supporting Details
Some donors are more prone to research than others
Lost Cause Long Shots Occasional Core
• No research in past • No research in past • Show signs of • Researched in past
• No research future • Possible to convince researching, but • Will research in
• Will never research to research in future not consistently future
% Individual Donors 14% 39% 29% 19%
% research past 0% 0% 32% 100%
% “action” past 38% 49% 83% 100%
% Research > 1HR 6% 7% 24% 44%
% Δ Behavior due 38% 51% 70% 73%
to Research in past
% Interest in HPNP 0% 37% 45% 51%
% looked for 7% 14% 40% 62%
“Effectiveness” info
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10. Supporting Details
However, donors are likely to research when they are not
familiar with a nonprofit…
% OF D ONATIONS R ESEARCHED % T HAT W OULD R ESEARCH W HEN :
% of all
respondents 0% 25% 50% 75% 100%
100%
First-time donation 87%
80%
58% First-time,
60%
recommended by a 81%
friend
41%
40% 33%
Disaster relief donation 74%
20%
0%
Average When Not When Not Repeat donation 35%
Brand Name Brand Name
OR Personally
Recommended
Source: M FGII
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11. Supporting Details
…or in particular cause areas
% OF G IFTS R ESEARCHED % OF D OLLARS R ESEARCHED
0% 25% 50% 75%
International 62%
0
Int'l Disaster Relief 59%
Human Rights 50%
Community Poverty
48% Other
21%
Employment 47% 27%
Environment 46%
Food 41%
Poverty 41%
Children 40%
Women Education
38%
21%
Animal 38%
Disaster Relief 38% Children
Education 36%
15%
Health 34%
Fundraising 31% Health
Arts 25% 16%
Religion 22%
Specific School 18% --- average
Source: M FGII
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12. And what do donors, foundations, and advisors want?
We Wanted to Know… We found…
• What information do they want? • They want a full picture of the NPO
• They need more info on impact /
effectiveness
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13. Supporting Details
What donors want: Donors want a full picture of a nonprofit, and
better information on effectiveness than they have today
Donor’s Information Needs
UNMET NEEDS MET NEEDS Donors look for info on:
Info
Important
− Financials
Important
Financials
− Legitimacy
Info
Legitimacy − Cause
Effectiveness − Organization
Info on Cause
Basic info on Org
− Effectiveness
Donors don’t find info on:
− Effectiveness
NO NEEDS
Donors say they don’t
care as much about:
Not Important
− Endorsements
Endorsements − Information
comparing nonprofits
Info
Comp. Info
Performance Performance
Weak Strong
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14. And what do donors, foundations, and advisors want?
We Wanted to Know… We found…
• What information do they want? • They want a full picture of the NPO
• They need more info on impact /
effectiveness
• How do they want it packaged? • Think “Consumer Reports”
• Where do they want to get it? • Nonprofits or
• Organizations (like GuideStar) that
evaluate or provide info on nonprofits
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15. Supporting Details
Where they get information today: Today, the nonprofit
itself is the donor’s leading source of information
Sources Donors Use Today (check all that apply)
0% 10% 20% 30% 40%
Nonprofit's website 28%
Friend or family member 25%
Nonprofit solicitation 21%
Beneficiary 16%
Internet search 15%
Site visit 14%
Presentation/event 13%
Someone at the nonprofit 13%
Media report 11%
Community foundation/funder 10%
3rd party nonprofit portal (ex. GuideStar) 9%
Expert 6%
Grant proposal or annual report 4%
Advisor 2% Sources prov ided by the
Source: MFGII
nonprofit
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16. Supporting Details
Where they will go tomorrow: But donors would prefer to
use third-party portals or organizations
Sources Donors Would Prefer to Use
0% 25% 50% 75% 100%
Nonprofit evaluation org (ex. GuideStar) 53%
Evaluation org (e.g., Consumer Reports) 48%
Certification org (ex. BBB) 47%
Family and Friends 39%
Nonprofit itself 32%
Leading foundations 28%
People involved with org. 28%
Media 24%
Expert panel 18%
Government agency 18%
Local community foundation 16%
Leading university 12%
General public 10%
MFGII. Q: “Who would you trust to prov ide the information that you are looking for?”. %’s reflect % of respondents rating source as a 5 or 6 on 1-6 scale
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17. And what do donors, foundations, and advisors want?
We Wanted to Know… We found…
• What information do they want? • They want a full picture of the NPO
• They need more info on impact /
effectiveness
• How do they want it packaged? • Think “Consumer Reports”
• Where do they want to get it? • Nonprofits or
• Organizations (like GuideStar) that
evaluate or provide info on nonprofits
• Will they act differently? • 5% … or $15,000,000,000
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18. Supporting Details
The Opportunity: $15,000,000,000
Nonprofits receive $300B annually from donations and grants
Based on our research, we believe that there is an opportunity
to shift ~5% of that – or $15B – through better information
This implies a wonderful opportunity to shift more money to the
best nonprofits
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19. So, let me understand…
Are you saying…
• Donors are rational, analytical beings • No. Not that black and white
that want a lot of data, especially on • Giving is emotional
impact? • But people want to know they are
doing good w/ hard earned $$
• GuideStar had it right all the time? • In some ways, yes
• In others, we are changing
• That there are things nonprofits can • Good question…
do with this information???
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21. Before elaborating, another quick poll
1. Have you heard of the GUIDESTAR EXCHANGE PROGRAM?
a. Yes
b. No
2. Do you have an updated GUIDESTAR EXCHANGE PROFILE?
a. Yes
b. No
c. I don’t know
3. Have you heard of CHARTING IMPACT?
a. Yes
b. No
4. Have you heard of GREAT NONPROFITS?
a. Yes
b. No
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22. Collect, Communicate, Connect
1. Focus on impact. The unmet need. Show how well you are achiev ing your goals
2. Chart your impact. Answer fiv e key questions that will bring you and your donors clarity
on your approach and accomplishments. For more go to www.chartingimpact.org
3. Update / complete your GuideStar Exchange profile at http://bit.ly/GuideStarExchange
4. Use GreatNonprofits to gather input from stakeholders at www.greatnonprofits.org
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23. Collect, Communicate, Connect
1. Lead with impact and competence. Donors want to be sure their money isn’t being
wasted and that you are making a difference. They look to NPOs to find that info
2. Highlight third party accolades, like Philanthropedia, GreatNonprofits, Charity Nav igator
3. Update your GuideStar Exchange profile. You can link directly to it and it will populate
many other portals.
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24. Collect, Communicate, Connect
1. Know your donors. Donors are a div erse group and not ev eryone is going to be the right
fit for your message. Make sure that you are talking to the right groups
2. Target your message. Make sure you tell your story in a way that appeals to each groups
3. Follow up. Thank your donors and let them know what you did with the money and how
you are improv ing what you do. Don’t ruin it by asking for more
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25. More Money for More Good – CAPTURE THE $15 BILLION!
The Guide Includes:
Info: In-depth findings on how individual donors, advisors,
and grant-makers use information today, and are likely
to use information tomorrow
Insights: How nonprofits can increase fundraising and
help create a more effective sector
Applications: Case studies of organizations that use
information to drive donor engagement
Tips: 10 tips to help nonprofits collect better information,
communicate their story, and connect with donors
Document is available at
www.guidestar.org/moneyforgood
Questions? Email Lindsay at lnichols@guidestar.org
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26. Thank you!
Bob Ottenhoff
President and CEO Emeritus, GuideStar
CEO, Center for Disaster Philanthropy
bob.ottenhoff@disasterphilanthropy.org
http://disasterphilanthropy.org/
Greg Ulrich
Director, Hope Consulting
greg@hopeconsulting.us
www.hopeconsulting.us
Lindsay Nichols
Communications Director, GuideStar
lnichols@guidestar.org
www.guidestar.org
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27. Q&A
For more information, including our
full reports, infographics, and other tips,
please visit:
www.guidestar.org/moneyforgood
www.guidestar.org | www.hopeconsulting.us
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28. Appendix
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29. APPENDI X
About GuideStar
GuideStar’s
Mission
To revolutionize philanthropy and
nonprofit practice by providing
information that:
• advances transparency,
• enables users to make better
decisions, and
• encourages charitable giving.
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30. About Hope Consulting
W HAT W E D O W HO W E A RE H OW W E ’ RE U NIQUE
Customer insights and Experienced consultants Deep Customer
strategy consulting from top-tier strategy Insights Capabilities
firms Comprehensive discovery
Identify opportunities for predictive approaches
clients to drive growth Supported by specialists quantification of
and social impact with deep expertise in market opportunity
brand, technology, and
Focus on: industry Strategy Expertise
• Global health
• Financial services Powerful Analytics
• Impact investing
• Philanthropic Experience on the
effectiveness Ground
(50+ countries)
29
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