There’s Gold in Them Thar Hills: Applying for-profit thinking to boost sponsorship and other revenue sources Marjorie French Greylock Associates, LLC "There’s Gold in Them Thar Hills" Applying for-profit thinking to boost sponsorship and other revenue sources Marjorie French - Greylock Associates, LLC Funding and revenue growth are time-consuming and require precious administrative resources. Thieving and doctoring for-profit business practices can mine financial rewards for nonprofits. As COO of a nonprofit membership organization, Margie French co-led a doubling of revenue in a five-year period. Some of the key factors that contributed to this growth were thinking of potential sponsors as B2B customers, understanding the “food chain” of sponsorship, and pricing trade-off analyses. In this session, Margie will discuss how ROI decision making, historical event analyses and other tools of for-profits can increase revenue and capacity so organizations can increase mission impact. Learning Objectives/Takeaways: To demonstrate to nonprofit managers that by analyzing, customizing and institutionalizing the tools of for-profits they can generate incremental income. LEARNING OBJECTIVES/TAKEAWAYS: ␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣␣ income.

2. Greylock Associates NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
There’s gold in them thar hills!
Applying for-profit thinking to
boost sponsorship and other
revenue sources.
NATIONAL PHILANTHROPY
DAY CONFERENCE
November 7, 2014

3. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
The Case for
For-Profit
Thinking

4. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
“We have two rulebooks. We have one for the nonprofit sector
and one for the rest of the economic world. It's an apartheid,
and it discriminates against the [nonprofit] sector…”

5. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
“We have two rulebooks. We have one for the nonprofit sector
and one for the rest of the economic world. It's an apartheid,
and it discriminates against the [nonprofit] sector…”
“…we've all been taught that charities should spend as little as
possible on overhead things like fundraising under the theory
that, well, the less money you spend on fundraising, the more
money there is available for the cause…”
Dan Palotta, TED Talk, February 2013

6. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Nonprofit Starvation Cycle
“…nonprofits feel pressure to conform to
funders’ unrealistic expectations…[and]
nonprofits respond to this pressure in two
ways: They spend too little on overhead,
and they underreport their expenditures
on tax forms and in fundraising materials.
This underspending and underreporting
in turn perpetuates funders’ unrealistic
expectations. Over time, funders expect
grantees to do more and more with less
and less—a cycle that slowly starves
nonprofits.”
Ann Goggins Gregory & Don Howard
Stamford Social Innovation Review
Fall 2009

7. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
NFP staffs are pressed for time and often
lack functional experience.
“There is just not enough
time to do the things I know
we should we doing.”

8. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Exigencies highjack strategic priorities.
Non-profits executives face the challenge
of how to grow.
“We need more people
and resources.”

9. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Have you ever heard anyone
in the business world say,
“We should be thinking like
a nonprofit?”

10. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Thinking like a for-profit can powerfully
impact the bottom line and the ability of
an organization to deliver its mission.

11. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Thinking like a for-profit can powerfully
impact the bottom line and the ability of
an organization to deliver its mission.
Increased Nonprofit Capacity:
The business art of making more
out of existing resources so
organizations can increase their
mission impact.

12. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
A Case Study in Increasing Nonprofit
Capacity: COSMETIC EXECUTIVE WOMEN
Three Pillars People: Achiever Awards
Product: Beauty Awards
Philanthropy: Holiday Luncheon and Auction

13. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
A Case Study in Increasing Nonprofit
Capacity: COSMETIC EXECUTIVE WOMEN
In five years:
Over a three-fold increase in members and dues revenue
Sponsorship income grew to nearly 50% of all revenue and sponsor
retention increased from 50% to 66%
Revenue and staff doubled

14. The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
A Case Study in Increasing Nonprofit
Capacity: COSMETIC EXECUTIVE WOMEN
CEW applied for-profit tools and processes
… in growing membership
… in branding
… in attracting and retaining sponsors
… in planning events
… in uniting employees in common goals

15. Growing Membership NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Growing Membership
Tools
Competitive Analyses
Consumer Research

16. Growing Membership NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Businesses compete for share of
market. Nonprofits compete for the
hearts, the minds and the
pocketbooks of donors
and funders.

17. Growing Membership NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: Competitive Analysis
CEW
Fragrance
Foundation
FGI NYWICI AWNY
Mission
Professional
development
Innovation
Preeminent
authority
Women
empowerment
Women
empowerment
Members 1,300 N/A 5,000 3,500 1,700
Dues $125 N/A $175 $150 $100
Initiation Fees N/A N/A 75 50 N/A
Corporate Dues N/A based on $ sales N/A $1200 for ten N/A
Networking Events N/A Foundation Talks
Tastemaker
Series
Coffee and
Conversations
Accredited
Master Classes
Job Bank N/A N/A Free Postings
Password
protected
Free Postings
Mentoring N/A N/A N/A Coaching N/A
Other benefits
Printed
Directory
N/A Trends Reports
Discounted city
benefits: spas,
zipcars, etc.
Special Interest
Groups

18. Growing Membership NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Competitive Analyses: Business
Intelligence for Decision Making
Identify new funders.
Learn how to integrate social media into marketing and
fund development.
Compare Missions and branding.
Thieve and doctor innovative fundraising event concepts.
“There is no such thing
as a new idea”
–Mark Twain

19. Growing Membership NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Nonprofits should think of the constituents it
serves as consumers and reach as many
‘consumers’ as possible with the ‘product’ that
delivers the greatest impact.

20. Growing Membership NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: “Consumer” Research
(CEW Career Cycle)
Senior
women
wanted to
give back
Mid-level managers
wanted to learn from
senior women on how
to get to the next step
Young Professionals wanted to meet
women in other companies and build
their own networks

21. Growing Membership NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Consumer Research: Challenging
Conventional Wisdom
We think we know our “consumers.”
Capture the “blink”.
Step away from the mirror.
Data trumps gut.
Uncover misperceptions.
Distinguish your brand.

22. Rebranding NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Rebranding

23. Rebranding NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

24. Rebranding NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

25. Rebranding NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

26. Rebranding NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

27. Rebranding NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

28. Rebranding NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

29. Rebranding NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

30. Rebranding NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

31. Growing Sponsorship NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Growing Sponsorship
Tools
The Quid Pro Quo of Sponsorship
The Sponsorship Food Chain
Expand the Portfolio of Sponsorship
Opportunities
Your Board
Pro bono Sponsorships
A Good Customer Experience

32. Growing Sponsorship NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: The Quid Pro Quo
of Sponsorship
Sponsors are business-to-business customers
making purchase decisions. Companies sponsor or
partner with causes that most efficiently achieve
business goals.

33. Growing Sponsorship NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
CEW Sponsorship Benefits
Offer “Advertising
impressions”
4,000+ professional women
in the beauty industry
1,000+ guests
including industry leaders
High Frequency: Logo in invites,
programs, on website
24/7 Business Resource Guide
One-on-one access to
decision makers
VIP receptions
Photos with VIPs
Strategic seating
Sponsor Dinner
Incentive to sample
sponsorship
Introductions to the board—
no obligation caveat
Incentives to increase
sponsorship
A position on the board
A seat on the dais
Speaking role
Larger logo/higher placement
More prominent table
Increased visibility
Category Exclusivity
Continuous sponsorship reel
Goodie bags

34. Growing Sponsorship NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: Sponsorship Food Chain, or
Following the Money Trail
Sponsors Beauty Executives Retailers Beauty Junkies
$$ $$ $$

35. Growing Sponsorship NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: Expand the Portfolio of
Sponsorship Opportunities
CEW on-event sponsorship
Online “Beauty Insider” Newsletter
Job Bank
Member Directory
Website
Attracted sponsors from
Companies with smaller budgets
Companies impacted by exclusivity
New categories of companies;
i.e. recruiters

36. Growing Sponsorship NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: Your Board
Influential Capital. Intellectual Capital. Financial Capital.
CEW board members made an annual commitment of $10K. The key was
in the packaging.
From the board member or her company
• Cash… or in-kind
New sponsor
• Cash… or in-kind
Contribution to CEW or to Cancer and Careers (501)(c)(3)
• One or multiple year grants
• Personal or corporate gift

37. Growing Sponsorship NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: Pro Bono Sponsorship
A Quid Pro Quo: You save OOP expenses/They get visibility
Remnant space in trade magazines or local newspapers
Video production
Program printing
Public Relations for Cancer and Careers
Consulting Services

38. Growing Sponsorship NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: A Good Customer Experience
Axiom: It costs much less to retain a sponsor than to
acquire a new one.
Sponsorship retention is an ongoing activity.
• Sweat the small stuff
• Make sponsors the priority
• Network on their behalf
• Informal one-on-ones with “the powers that be”
• Thank you Sponsor Dinner
• Right of first refusal
• Fulfillment Reports. Fulfillment Reports. Fulfillment Reports.

39. Optimizing Events NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Optimizing Events
Tools
A Great Customer Experience
Pricing Trade-off Analyses
Strategic Pricing
ROI Decision Making

40. Optimizing Events NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: A Good Customer Experience
A great event generates buzz, increases attendance and sponsorship and
creates a memorable and lasting impression of your brand.
Bottom line: More Income.
It’s a captive audience. Innovate. Inspire.
• New venue, new format, new award, new honoree.
• Choreograph to the objective.
• Be single-minded: “Its the economy, stupid”
• Short powerful video “stories”.
Flawless Execution Counts (and you can serve chicken).
• Registration, check-in, name tags.
• Start on time. End on time.

41. Optimizing Events NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: Pricing Trade-off Analysis
Ticket
Price $34,500 Revenue
$150 230 276 $41,400
$145 238 276 $40,020
$140 246 276 $38,640
$135 256 276 $37,260
$130 265 276 $35,880
$125 276 276 $34,500
Tickets Sold
+20%

42. Optimizing Events NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: Strategic Pricing
Goal: Maximize per seat margin
Table Traditional Movie Popcorn Real Estate
Platinum $10,000 $10,000 $9,500
Gold $7,500 $8,500 $8,500
Silver $5,000 $7,000 $6,975
Bronze $2,500 $5,000 $4,999

43. Optimizing Events NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: ROI Decision Making
Like businesses, think bottom line
Auction Type
Silent Live Online Fund A Need
Funds Raised 20,000 25,000 35,000 25,000
Expenses
Auctioneer 2,850 2,850
Catalog 1,400
Supplies 500
Hosting 5,250
Total Expenses 1,900 2,850 5,250 2,850
Fundraising less Expenses 18,100 22,150 29,750 22,150

44. Optimizing Events NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Tool: ROI Decision Making
Including efficient use of limited staff
Auction Type
Silent Live Online Fund A Need
Funds Raised 20,000 25,000 35,000 25,000
Expenses
Auctioneer 2,850 2,850
Catalog 1,400
Supplies 500
Hosting 5,250
Total Expenses 1,900 2,850 5,250 2,850
Fundraising less Expenses 18,100 22,150 29,750 22,150
Staff Hours 160 114 240 40
at $45/hour 7,200 5,130 10,800 1,800
Net Income 10,900 17,020 18,950 20,350
as a % of fundraising 55% 68% 54% 81%

45. Greylock Associates NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014
Thank you.
QUESTIONS?