ACU PPT

1. • Proposed overview for ACU fundraising day
• The market – who raises what, how
– Using actual transactional data from Benchmarking study of 68 major charities
and annual reports of another 100 or so
• Types of non-governmental fundraising, pros, cons and scale
– Corporate, trusts, events, face to face, major donors, mail, phone, online, mobile
– Including breaking these down into types of campaign
• Brand and propositions
– Developing the offer – how to motivate
– The essence of great story telling
• Budgeting
• Managing upwards – the barriers to growth
– Boards, cost of fundraising issues, unrealistic expectations
• All illustrated with case studies
• Interaction would be through lots of questions from me, then group work looking at
fundraising mix, branding, proposition and story telling (which will be their favourite
bit); mixing people up so that they are not in the same groups as their colleagues.

2. About me

3. About me

4. ©Pareto Fundraising

5. What about you? Introductions…

9. The Most Important Thing in Fundraising
• Maths. (Sorry).

10. But maths doesn’t work without a cause

11. Tell me about your cause

12. But maths doesn’t work without a cause
• Your brand must be about your beneficiaries
• Every single communication should reinforce this brand
position – including what you just told me
• Lets look at your charities’ website (or your favourite
charity’s)

13. Charities that do it well from the start
• Cancer Council NSW
• Make a Wish
• Oasis (Salvation Army)

14. Every
Single
person
In a
charity
needs
to tell
STORIES

16. ANALYTICAL
-Your Growth
- Your donor
Behaviour
-Used for targeting
ENVIRONMENTAL
-How much is given
- Growth
- Competition
PERSONAL
-Transactions
- Legacy status
- Pet name
STRATEGIC DATA
- informs
TECHNICAL DATA
- used

17. Focus Groups
Focus
Groups
I

19. Focus Groups
Focus
Groups
I
For actually marketing bequests!

20. Questions for you as a donor
Prefer email
or
mail?
How
often?
Which
pack?

21. The Big
Picture

22. Write Down : Where does non-Gov charity
money come from?
Corporate donations
Trusts / Foundations
Legacies / Bequests
Events
Individuals
NOT Government
© Pareto Fundraising

23. INDIVIDUAL DONORS IN YOUR
FUNDRAISING MIX
Group work

24. The Big Picture
Overall Fundraising Strategy

25. The Big Picture
Overall Fundraising Strategy
Government

26. The Big Picture
Overall Fundraising Strategy
Government
Trusts &
foundations

27. The Big Picture
Overall Fundraising Strategy
Government
Trusts &
foundations
Consider
Corporate &
Events

28. “Chasing the
corporate dollar”

30. Source and © Giving USA Foundation ™
Giving in the USA

32. Source and © Giving USA Foundation ™
Giving in the USA

33. Source and © Giving USA Foundation ™
Giving in the USA

34. Source and © Giving USA Foundation ™
Giving in the USA

35. CAF Charity Trends, 2006
Source and © Charities Aid Foundation, Charity Trends 2006
$16bn
$1.8bn

36. Giving in the USA, 2009
Source and © Giving USA Foundation ™
Corporations,
$14.50 , 5% Foundations,
$41.21 , 13%
Bequests,
$22.66 , 7%
Individuals,
$229.28 ,
75%

37. Growth from Individuals
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
1995-6 1996-7 1997-8 1998-9 1999-00 2000-1 2001-2 2002-3 2003-4 2004-5 2005-6
Ind
Non-Ind

38. My last job
GBP ('000) Income Inc/ F'Raiser Income Inc/ F'Raiser
Bequests 871 871 1,154 1,154
Trusts and Foundations * 1,412 1,412 1,892 757
Direct Marketing 1,309 261 1,878 375
Corporate 62 62 170 68
* 60% comes from the National Lottery
Case Study - MIND (UK - Largest Mental Health Charity)
1999/00 2002/03

39. The Big Picture
Overall Fundraising Strategy
Government
Trusts &
foundations
Consider
Corporate &
Events

40. The Big Picture
Overall Fundraising Strategy
Government
Trusts &
foundations
Consider
Corporate &
Events
Consider
Associations,
groups

41. The Big Picture
Overall Fundraising Strategy
Government
Trusts &
foundations
Consider
Corporate &
Events
Consider
Associations,
groups
Individuals – Long term growth

42. The Big Picture
Overall Fundraising Strategy
Government
Trusts &
foundations
Consider
Corporate &
Events
Consider
Associations,
groups
Individuals – Long term growth
The Giving Constituency

43. The Big Picture
Overall Fundraising Strategy
Government
Trusts &
foundations
Consider
Corporate &
Events
Consider
Associations,
groups
Individuals – Long term growth
The Giving Constituency
Bequests /
Legacies
Major Donors Regular Giving

44. Regular
Giving
Long Term Growth
Individual giving is currently the ONLY long term
solution for growth
Individuals –
Long term
growth
Donor care
Major
Donors
Bequests

45. Charity Begins at Home…?

46. $-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
Top Aus charities >$20m f/r income (exc Unis) from annual reports

48. Charity Begins at Home…?

49. Let’s leave Powerpoint

50. Individual Giving
Trends
Data

51. Gross income by year
$0
$50
$100
$150
$200
$250
$300
$350
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Income
Millions
Year
Gross Individual Giving Income by Year
Bequest Cash Regular Gift
PFBM9_IncomeSummary_v1.xlsm

52. 0
50
100
150
200
250
300
Dec-05
Mar-06
Jun-06
Sep-06
Dec-06
Mar-07
Jun-07
Sep-07
Dec-07
Mar-08
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
12 Month Moving Income Index by Gift Type
12 Months to Dec 05 = 100
Bequest Cash Regular Gift
PFBM9_IncomeSummary_v1.xlsm

53. New Recruits
53
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2004 2005 2006 2007 2008 2009 2010 2011
Cash Regular Gift
PFBM9_Analysis_ALL_v5.xlsm
34%
66%
32%
68%

54. New Recruits Value (1st yr value)
$0
$5
$10
$15
$20
$25
$30
$35
$40
2004 2005 2006 2007 2008 2009 2010
Millions
Cash Regular Gift
PFBM9_Analysis_ALL_v5.xlsm
43%
57%
43%
57%

55. Average bequest by year
$54
$57
$57
$53
$60
$59
$49
$50
$46
$50
$0 $10 $20 $30 $40 $50 $60 $70
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
Average Bequest Amount
Thousands
Year
PFBM9_IncomeSummary_v1.xlsm

56. The Second Most Important Thing in
Fundraising
• Maths. (Sorry, but again it is)…
Age.
why is age important in fundraising?

57. The only two STRATEGIC ways to raise $
from young people (<45 years). Number 1.
Face to Face
fundraising*

58. The only two STRATEGIC ways to raise $
from young people (<45 years). Number 2
Wait 20-40
years

59. The only single STRATEGIC ways to raise $
from even younger people (<30 years).
Number 2
Wait even
longer

62. 1 off income by channel of solicitation
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Income
Millions
Year
IndividualGross Cash Income by Solicitation Channel
Direct Mail Media Online Other Phone
PFBM9_IncomeSummary_v1.xlsm

63. Individual RG income by channel of solicitation
Base: All giving
$0
$20
$40
$60
$80
$100
$120
$140
$160
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Income
Millions
Year
RG Income (Year & Channel of Solicitation)
Direct Mail Face to Face Media Online Other Phone 2Step
PFBM9_IncomeSummary_v1.xlsm

64. F2F recruit Yr1 attrition
by Age
51%
48%
41%
35%
30% 28% 31% 28%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
0%
10%
20%
30%
40%
50%
60%
18-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Year1 Attrition Recruits
PFBM10_AdditionalAnalysis_v2.xlsm
Av age at
acquisition: 36
One year active: 38
All active F2F
donors: 42

66. The last gift

69. Older is better

70. Acquisition methods: pros and cons

71. • Massive!
• The only way to get
committed donations from
younger people
• A brand new audience
• Added more money to
charity coffers than
anything else in last ten
years
• Getting a supplier is a
nightmare
• Don’t bother trying to do it
yourself
• Cash flow issues
• Minimum investment
>$100,000
Pros Cons

72. Average five yr RG Gift Value
Base: All DM & F2F regular giving recruits
Direct Mail Face to Face
Year5 Inc $174.80 $91.99
Year4 Inc $180.33 $106.09
Year3 Inc $163.44 $124.24
Year2 Inc $178.17 $155.83
Year1 Inc $194.18 $231.78
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Year of recruitment
Value to Date - F2F Recruits (All)

73. • Dynamic – can test and
adjust fast
• Great to adjust in
emergency
• Volumes can be ramped
up
• Plenty of experience in
the market
• Donors upgrade by
phone
• New Audience
• Cash and RG both work
• Takes a while to get
satisfactory ROI
• Needs constant
management, every hour
• Lower volumes than
F2F
Pros Cons

74. • Dynamic – can test and
adjust fast
• Great to adjust in
emergency
• When it works – very,
very cheap cost per
donor possible
• High visibility
• Non traditional donor
market
• Very hard to get
working
• Lower loyalty
• Needs mail and phone
to keep donors giving
• Distraction for younger
fundraisers
• Limited bequest
potential (but better
than F2F)
Pros Cons

75. • Targeted Reach / High
frequency
• High Awareness
• Engages 2/5 Human
Sensory Attributes
• Visual Representation
of ‘the Need’
• Storytelling 60/30/15sec
• Targeted Placement
• Direct Response
• Increasingly
Fragmented
• Cluttered Environment
at specific times of year
(i.e. Christmas)
• Rising costs
Pros Cons

76. • ‘Call to Action’ in
conjunction with other
media
• Low Cost Channel
• No Visual Storytelling
• Difficult to Highlight
‘the Need’
• Low volume
Pros Cons

77. • Proven track record and
going through renaissance
• Older donors (new audience
for WV & bequest potential)
• Brilliant ROI on rollouts
• Story telling
• Reaches more targeted
people than anything else
• ~ RG conversion prospect
• Great passive advocacy
opportunity
• Tough to get it working at
first
• Success heavily reliant on
creative
• Finite lists
• Growing competition
• Best results are now
• Mostly single gift donors
Pros Cons

78. Variables for growth
• Region
• Type
– Health, developing, etc
• Age
• Fundraising Technique
• Legacy presence
• Internet presence
• Twitter traffic
• Fundraising
expenditure
• Awareness
• PR / celebrity
involvement
• Consultant / supplier
?

79. Variables for growth
• Region
• Type
– Health, developing, etc
• Age
• Fundraising Technique
• Legacy presence
• Internet presence
• Twitter traffic
• Fundraising
expenditure
• Awareness
• PR / celebrity
involvement
• Consultant / supplier

80. Using the Mail

81. Some weird stuff…

82. Dos and don’ts in the mail
Your thoughts…

83. Your favourite charity….
How often do
you want to get
mailed?

85. The only two STRATEGIC ways to raise $
from young people (<45 years). Number 1.
Wait twenty
to thirty years

86. Three reasons it all fails
1 Brand
nonsense

87. Awareness

88. Three reasons it all fails
2 Cost
control

89. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net
Gross
COF
Cost of fundraising year on year…

90. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net
Gross
COF
Cost of fundraising year on year…
Massive
investment
in
acquisition

91. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net
Gross
COF
Cost of fundraising year on year v net

92. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net
Gross
COF
Cost of fundraising year on year v net
Maintained
slight
growth in
net –
money to
spend on
cause

93. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net
Gross
COF
Cost of fundraising year on year v net
Maintaining
acquisition,
but rewards
of year 2
acquisition
beginning
to show
through

94. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net
Gross
COF
Cost of fundraising year on year v net
Decided to
STOP
acquisition for
one year –
nearly $1.5m
bonanza for
capital
projects and
service
development –
COF plummets

95. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net
Gross
COF
Cost of fundraising year on year v gross

96. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net
Gross
COF
Cost of fundraising year on year v gross
Reduced
acquisition leads to
slight decline in
gross

97. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net
Gross
COF
Cost of fundraising year on year v net v gross

98. $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net
Gross
COF
Cost of fundraising year on year v net v gross
Growth phase complete –
charity stabilises, but still
acquiring more donors than
losing, hovering around 0.4
cost of fundraising

103. Three reasons it all fails
3 unrealistic
expectations

104. Fundraising v Other Investments
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
Property capital gain @ 8.4% Leaving in investments @ 10% Good fundraising program
Five Year ROI

105. Linked In

107. THANK YOU