1. How can non-profit organisations raise more money? Joe Saxton October 2013

2. Overview Build trust and keep trust Fundraising in summary Understand what your donors and public think about you Spend money to raise money and benchmark performance Build awareness and brand Follow our five strategies to increase giving 2

3. Overview Build trust and keep trust Fundraising in summary Understand what your donors and public think about you Spend money to raise money and benchmark performance Build awareness and brand Follow our five strategies to increase giving 3

4. Why does trust matter for charities?

5. What are charities trusted to do?

6. Spend donations wisely Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Jul 11, nfpSynergy “When you think about charities in general, how much do you trust them to spend a donation wisely/ make good use of a donation? Please choose the one that most represents your views” Recent donorsNon donors

7. A sizeable minority remain unsure “Thinking about the charities you regularly support, please indicate to what extent you agree with each of the following statements“ Agree 77 Base: 954 adults who support charities, 16+, Britain Source: Charity Awareness Monitor, Jul 10, nfpSynergy

8. Local and national charities trusted to deliver different services “Please indicate which two types of organisations you would trust the most to deliver services to particular groups in society” 8 Base: 1000 adults 16+, Britain Source: Charity Awareness Monitor, Jul 11, nfpSynergy National Local

9. Base: 1000 adults 16+, Britain Source: Charity Awareness Monitor, Jul 11, nfpSynergy “Please indicate which two types of organisations you would trust the most to deliver services to particular groups in society" Local charities trusted to deliver different services

10. Base: 1000 adults 16+, Britain Source: Charity Awareness Monitor, Jul 11, nfpSynergy “Please indicate which two types of organisations you would trust the most to deliver services to particular groups in society" National charities trusted to deliver different services

11. “From the following statements, please indicate whether you think each applies to any of the following organisations: large charities (with an annual income of over £10 million), medium sized charities (with an annual income of between £1 million and £10 million), small charities (with an annual income of under £1 million).” They are generally trustworthy organisations Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Nov 09, nfpSynergy Smaller charities have an advantage in trust 11

12. A framework for trust 12 1)What makes a charity trustworthy? Levels of Trust External events Type of cause Breadth of public awareness Length of establishment Personal contact with the organisation Fundraise responsibly Spend donations wisely Provide services effectively Vary by: -Charity size -Area of work -Brand name 2) How much are charities trusted? 3) What are charities trusted to do?

13. 10 things you can do to increase trust in your charity 1.Emphasise your charity’s age 2.Increase your awareness 3.Tell people about your endorsements and awards and grants 4.Tell people about how you are battling to improve performance and cut costs 5.Tell people about how you recruit only the best staff 6.Pledge people things – e.g. complaints 7.Sprinkle your website and literature with reassuring facts 8.Choose the cause that maximises trust 9.Give stakeholders a person they can talk to – not an info@ 10.Tell people things they don’t need to know

14. Overview Build trust and keep trust Fundraising in summary Understand what your donors and public think about you Spend money to raise money and benchmark performance Build awareness and brand Follow our five strategies to increase giving 14

15. The principles Principle 1: Fundraising takes time to bear fruit Principle 2: Fundraising takes an investment of energy and money Principle 3: If you want donations you have to ask for them Principle 4: Fundraising takes skills and experience Principle 5: Fundraising is not one skill, but many Principle 6: There is no such thing as donor fatigue – just fundraiser fatigue 15

16. Why do people give? They are personally affected by the cause (think cancer or heart disease) They are thankful that they aren’t affected by the cause (think cancer or heart disease!) They want to have fun and be part of something (think Red Nose Day) They share the values and ideals of the organisation (think human rights) They empathise with the victims or beneficiaries (think Japanese tsunami) They can get a bargain (think charity shops) They want to help their community (think school fundraising) They trust or fancy the person asking (think street fundraising) 16

17. What holds fundraising back? Meddling, distant or unrealistic management A flabby mission or purpose Being asked to fundraise for general funds Trying to do too many different fundraising activities (with tiny resources) Under-staffing or under-resourcing fundraising 17

18. Creating a resilient fundraising portfolio 18

19. Create fundraising income that will bear fruit over different time spans High ROI Low ROI Long timescales to reap rewards Short timescales to reap rewards Major donors committed giving Cash/ cheque Legacies Event/ local Trading/ shops Digital income Grant- making trusts company support Street door to door Statutory 1 year5 years10 years3 years 10++:1 10:1 5:1 2:1

20. Create a balance of risk and return High potential income Low potential reward High risk of raising nothing Low risk of raising nothing Major donors committed giving Cash/ cheque Legacies Event/ local Trading/ shops Digital income Grant- making trusts company support Street door to door Statutory

21. Overview Build trust and keep trust Fundraising in summary Understand what your donors and public think about you Spend money to raise money and benchmark performance Build awareness and brand Follow our five strategies to increase giving 21

22. How do people come into contact with fundraising? “In the last three months, have you been asked for money by a charity in any of the following ways? Please select all that apply.” * NB. wording change – pre-2011 asked ‘Face-to-face on the street’ and ‘Via a cash collection’. 22 Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Nov 12, nfpSynergy

23. 23 Some long term trends: face to face up and telephone “Have you been approached in the following ways in the last three months by somebody looking to sign people up to give a monthly donation to an individual charity or a basket of charities by standing order or direct debit? ” Yes “In the last three months, have you been asked for money by a charity in any of the following ways? Please select all that apply.” Yes (May 09 onwards) Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Nov 12, nfpSynergy

24. 24 Stability in other methods of contact with fundraising Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Nov 12, nfpSynergy “Have you been approached in any of the following ways by charities asking you to make a donation in the last three months?” Yes “In the last three months, have you been asked for money by a charity in any of the following ways? Please select all that apply.” Yes (May 09 onwards)

25. 25 Door-to-door fundraising and calling people’s homes remain unpopular “Which of the following best sum up your feelings towards each of the following types of charity fundraising?” Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Nov 12, nfpSynergy

26. 26 Face-to-face fundraising becoming less irritating “Which of the following best sum up your feelings towards each of the following types of charity fundraising?” Ranked by ‘happy to be asked’ Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Mar 12, nfpSynergy

27. 27 Street collections keep winning hearts “Which is your preferred way to be asked for money by a charity? Please select up to 3 answers.” Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, Mar 12, nfpSynergy

28. Overview Build trust and keep trust Fundraising in summary Understand what your donors and public think about you Spend money to raise money and benchmark performance Build awareness and brand Follow our five strategies to increase giving 28

29. Legacies return on investment Fundraising costs/income ratio Lowest 7.41 Highest 601.83 Median at 64.8 Mean average at 113.01 Base: 117 hospice staff Source: Online survey, nfpSynergy *Mean and median values are of those organisations who have given full information for this slide and thus may vary from those listed on slides 13 & 14, which represent all hospices answering

30. Community and events return on investment Fundraising costs/income ratio Lowest 1.11 Highest 10.00 Median at 3.2 Mean average at 3.42 Base: 117 hospice staff Source: Online survey, nfpSynergy *Mean and median values are of those organisations who have given full information for this slide and thus may vary from those listed on slides 13 & 14, which represent all hospices answering

31. Lotteries return on investment Fundraising costs/income ratio Lowest 1.41 Highest 16.79 Median at 2.28 Mean average at 3.57 Base: 117 hospice staff Source: Online survey, nfpSynergy *Mean and median values are of those organisations who have given full information for this slide and thus may vary from those listed on slides 13 & 14, which represent all hospices answering

32. Retail and shops return on investment Fundraising costs/income ratio Lowest 0.99 Highest 4.65 Median at 1.62 Mean average at 1.85 Base: 117 hospice staff Source: Online survey, nfpSynergy *Mean and median values are of those organisations who have given full information for this slide and thus may vary from those listed on slides 13 & 14, which represent all hospices answering

33. Corporate fundraising return on investment Fundraising costs/income ratio Lowest 0.88 Highest 13.33 Median at 3.33 Mean average at 4.10 Base: 117 hospice staff Source: Online survey, nfpSynergy *Mean and median values are of those organisations who have given full information for this slide and thus may vary from those listed on slides 13 & 14, which represent all hospices answering

34. In memoriam return on investment Fundraising costs/income ratio Lowest 4.47 Highest 134.68 Median at 22.4 Mean average at 30.42 Base: 117 hospice staff Source: Online survey, nfpSynergy *Mean and median values are of those organisations who have given full information for this slide and thus may vary from those listed on slides 13 & 14, which represent all hospices answering

35. Income per staff member

36. Income per staff member – Individual giving Lowest £25,000 Highest £880,000 Median at £200,000 Mean average at £245,259 Base: 117 hospice staff Source: Online survey, nfpSynergy *Mean and median values are of those organisations who have given full information for this slide and thus may vary from those listed on slides 13 & 14, which represent all hospices answering

37. Income per staff member – Trust fundraising Lowest £16,250 Highest £1,250,000 Median at £250,000 Mean average at £340,876 Base: 117 hospice staff Source: Online survey, nfpSynergy *Mean and median values are of those organisations who have given full information for this slide and thus may vary from those listed on slides 13 & 14, which represent all hospices answering

38. Income per staff member – Major donors Lowest £10,000 Highest £700,000 Median at 250,000 Mean average at £252,265 Base: 117 hospice staff Source: Online survey, nfpSynergy *Mean and median values are of those organisations who have given full information for this slide and thus may vary from those listed on slides 13 & 14, which represent all hospices answering

39. Base: 117 hospice staff Source: Online survey, nfpSynergy Fundraising method Average number of staff Average non-staff costs Average staff costs Average total income ROI Income/ Staff member Individual giving2.8£51,822£73,647£468,288 3.73£167,245 Trusts0.51£1,334£13,424£141,789 9.61£278,017 Major donors0.32£4,438£10,776£79,123 5.20£247,259 Legacies0.25£3,666£6,632£835,353 81.12£3,341,412 Community & events3.4£74,055£101,349£541,267 3.09£159,196 Lotteries1.68£148,010£37,758£302,855 1.63£180,270 Retail & shops19.38£402,972£280,099£959,779 1.41£49,524 Corporate0.81£6,051£23,871£153,383 5.13£189,361 In memoriam0.38£2,131£6,790£202,554 22.71£533,036 Income ratios All hospices – using mean values

40. Base: 117 hospice staff Source: Online survey, nfpSynergy Fundraising method Average number of staff Average non-staff costs Average staff costs Average total income ROI Income/ Staff member Individual giving1.27£20,000£33,771£340,500 6.33£268,110 Trusts0.50£500£10,000£100,000 9.52£200,000 Major donors0£0£3,500£31,250 8.93- Legacies0.1£2,000£3,500£500,000 90.91£5,000,000 Community & events3£71,002£81,000£468,027 3.08£156,009 Lotteries1£80,100£26,000£225,000 2.12£225,000 Retail & shops12£206,000£220,000£819,000 1.92£68,250 Corporate0.7£2,761£18,000£80,066 3.86£114,380 In memoriam0.05£400£2,000£140,000 58.33£2,800,000 Income ratios All hospices – using median values

41. Overview Build trust and keep trust Fundraising in summary Understand what your donors and public think about you Spend money to raise money and benchmark performance Build awareness and brand Follow our five strategies to increase giving 41

42. Awareness measures

43. Overview Build trust and keep trust Fundraising in summary Understand what your donors and public think about you Spend money to raise money and benchmark performance Build awareness and brand Follow our five strategies to increase giving 43

44. Strategy 1: Avoid dependency on too few funders or donors 44

45. Strategy 2: Ensure fundraising builds ‘drop dead’ income 45

46. Strategy 3: Be realistic about the timescales for fundraising success 46

47. Legacies Major donors 47

48. Strategy 4: Exploit better demographic segmentation and donor motivations Source: BHPS / The Future Foundation age 16-19 with parents, no job age 20-23 first job, living with parents age 24-26 working, living alone age 27-30 living with partner, first mortgage age 30-32 first child, women exits work age 33-35 second child age 36-42 woman in p/t work, moves to larger house age 43-47 woman in full time work age 48-52 children reach adulthood age 53-56 children leave home age 57-60 early retirement for many, home owned outright age 61-65 all women retired, most men retired age 66-75 both partners retired age 75+ widowed, single person household

49. Social structure of the wealthiest and least wealthy households

50. Strategy 5: Use new ways to give and new ways to integration into people’s lives Face to face Challenge events Direct response TV New-style events Financial services Text message donations 50

51. Finally: campaign to liberate lotteries Make the 20% rule apply across all lotteries over a rolling 3 years Abolish dual registration for remote and non-remote Stop treating lotteries like casinos Get society lotteries properly represented in the new regulatory body Abolish turnover and prize limits Create a win/win culture for all lotteries 51

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