Getting noticed in a crowd- how to impress funders, commissioners, supporters

A strategy based on a single income stream is always going to fail one day.

What we know about the rejection rates For almost all 2 stage applications there is an 80% rejection rate at first stage. Second stage the rejection is 50% In other words 90 % of applications are failing!

What’s your income strategy?

What is your strategy Income analysis- where does your income come from. What proportion of your income comes from contracts, trading, trusts and foundations, donations The rule of Thirds. No more than a third of your income should come from one source

Sources of funding Government. Grant-making organisations. Companies. Individuals. Trading + fees. Events. Internet and Social Media

How funding is divided. General public giving and Lottery= 38% Statutory agencies=36% Voluntary Sector grant making trusts=8% Commercial sector =6% Trading and investments=12%

Return on investment Have you thought about how you raise funds? Raising funds from trust and foundations offers a return of 1:9 From corporate donors its a return of 1:8 From legacies its a return of 1:36 From individual donors its a return of 1:1.5 at worst and at best its a return of 1:2.5 What is your fundraising strategy?

Foundation Applications Research the funder Follow the guidelines Write a log-frame Apply in time Monitor & evaluate Report back Apply again Create a relationship

What we know about the rejection rates. For almost all 2 stage applications there is an 80% rejection rate at first stage. Second stage the rejection is 50% In other words 90 % of applications are failing! For Big Lottery Reaching Communities the rejection rate is currently 94%

Reaching Communities is a competitive fund In 2010/11, 5,730 outline proposals requesting over £1 billion (many not eligible for funding) 1,322 eligible full applications asking for £354,713,780.

Reaching Communities made 500 grants totalling £124,127,283. The average grant size awarded was £248,255.

Esmee Fairbairn Funded £32,000,000 in 2010 There were 2330 applications to their main fund 357 were invited to 2 nd stage application 270 received funding Rejection rate = 83%

Tudor Trust In the trust received 2712 applications 2506 were eligible 349 went to the grant panel 338 received awards (average of 56K) Rejection rate = 84%

Henry Smith Total eligible applications in 2010/ Total awards 330 Average grant 57,000 Rejection rate 79%

What is your strategy? Income analysis- where does your income come from. What proportion of your income comes from contracts, trading, trusts and foundations, donations The rule of Thirds. No more than a third of your income should come from one source

Return on investment Have you thought about how you raise funds? Raising funds from trust and foundations offers a return of 1:9. This means for each pound you spend on fundraising you should get £9 back From corporate donors its a return of 1:8 From legacies its a return of 1:36 From individual donors its a return of 1:1.5 at worst and at best its a return of 1:2.5 What is your fundraising strategy? Where are you targeting your fundraising energy? Don’t forget the rule of thirds!!!

You are competing for funds In England and Wales their are registered charities In England and Wales their are charitable organisation The sector attracts £52 billion funding each year (£9.3 billion comes from the public, about 20%) How much did you get?? Of the £11billion donated by the public what share did you get? (0.075% of this would give you an annual income of £8.25Million!) Source: Directory of Social Change/ NCVO/Charities Aid Foundation

Charitable giving Figures released December 2012, show that over the year (2011/12) the UK public gave £9.0 billion to charity. A fall of 20%. Source NCVO and CAF ; UK Giving report 2012 A report by Blackbaud on giving indicated that 70% of respondents had maintained their giving, 17% had reduced their giving How much did you get?

Who does the giving? Women aged years are the most likely to give and give the most (typical median amount £20 per month). Those aged years are the least likely to give. Who are you asking for money from? Who is giving you money? Are you asking for gift aid?

What about new technologies Their were 12million smart phones in use in the UK in 2011 Another 2million were forecast to be purchased at Christmas If 1% of all the texts sent in the UK were converted to a £1.50 donation the charity sector would raise £1.5 billion pounds Can we afford to ignore this?

Why use the new technologies Over 34million, 16 – 65 year olds in the UK own a mobile phone, people for you to potentially reach to help raise money for your cause, so what are you waiting for! In December 2010, for the first time consumers spent more with debit cards than cash.( How much cash do you have in your pocket?)

Charities who use online funding, raise 6 times more than those who don’t

Its not rocket science! Technology is a tool to build relationships. Understand the technology and its limitations. Develop a strategy Here is why you should

83% of the UK use the internet. That’s over 51 million people!¹... and there’s another 2 billion worldwide.¹ That’s a lot of people... and it’s still growing. In 2010 there was a 14% increase in users worldwide.²

56% of UK adults have given to charity (2009/10), that’s 28.4 million UK adults. But 58% of people shop online

The average offline donation is £15.¹ The average online donation is £30.¹... however this rises to £54 when donors are targeted more specifically.¹ ¹ Race Online 2012 Survive & Thrive casebook

1 in 5 s from non-profits get opened¹...with 3.4% generating a click.¹ But if fundraising s are sent from your friends, then the open rate is 90%...and 1 in 4 lead to a donation! Source MailChimp

46% of the UK is on Facebook...¹...and represents 7% of all UK time spent online.¹ It has more than 750 million users worldwide...²... that’s more than 10% of the worlds population. 48% of yr olds check Facebook when they wake up.³ ¹ Uk Online Measurement (UKOM), ² Facebook.com ³ onlineschools.org

How much do you know Know your metrics For example... Number of website visitors Number of telephone/ enquiries Number of NEW people added to mailing list Number of donations / products sold Value of donations / products sold

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The Fundraising Pyramid Legacies Major Gifts Committed Giving Appeals Recruitment.

The Golden Prize The aim of building donor relationships is encourage the whole world to support you through increasing their level of contribution up to and including a legacy. You need a strategy for fundraising and a strategy for marketing your project

Why do people give. They are asked They believe you are stable & ethical They want to honor someone/thing They want to extend their values They have a high regard for the staff and the volunteer leadership They want to belong to something

Remember the Pyramid? Legacies Major Gifts Committed Giving Appeals Recruitment

Here is a transalation ADVOCATE / RAVING FAN SUPPORTER / CLIENT DONOR / CUSTOMER LEAD PROSPECT SUSPECT

Where are your supporters likely to be?

To know where they are you need know who they are. start to segment your supporter base Gender, age, nationality, income range, educational attainment, language, employment, technology literate? communications preference

What ‘s the attraction?

What keeps your supporters awake at night? What do they worry about?

What do your supporters want to hear? Not -what do you want to tell them?

Filling the information pipeline

Draw in a crowd

The marketing mix These are the tools that you use to maintain the relationship with your supporters and recruit new supporters. Newsletters, e bulletin, appeals, campaigns, thank you’s, success stories

The biggest mistake- MWA Most wanted action. What is the action? Have you made it clear? How do they take the action?

Have a planned approach Start by making the first MWA an easy one- e.g. sign up for our newsletter Say thank you Build on the relationship by sending information down the pipeline Say thank you

Keeping the relationship going Make the next MWA a bit more difficult Say thank you Ask for more commitment at each stage of the relationship Say thank you Keep going until you have someone who is your biggest fan, because then....

You will have a fan base!!

Need a hand to manage the relationship?

Let mailchimp manage your strategy

Need some ideas for the information pipeline?

Get inspired, get started, get fundraising!!!! Here are some examples of successful campaigns.

In friends in Australia raised $55,000 for prostate cancer research. In 2010, 447,000 people worldwide raised $72,000, 000- ( UK £19,000,000)

Race for Life has raised £457,000,000 since 1994

The Infinity Fund is a £50 Million fundraising initiative for Greater Manchester