0. The Nonprofit Niche Opportunities & Challenges
Charles Tate, CPA,
Managing Partner
(202)
LEA Managing Partner Meeting
January 16, 2017

1. Firm Background 100% nonprofit
131 staff & partners (18th largest in DC Metro Area)
50% audit /50%outsourcing & IT
8 people focus exclusively on EO Tax
No individual tax

2. Evolution of the Nonprofit Niche
Big 8 departs the niche
Niche practices emerge/Dot.com
Enron/SOX distracts larger firms from niche
2010-Today firms are driving down niche prices

3. Perspective on the Nonprofit Industry
Traditional services are becoming very price sensitive
Large national firms dominate the > $100M sector
Long marketing/sales cycle
RFP driven - prospects ask about experience/references
Retain clients 5-15 years, depending on type of service
Business practices tend to lag behind corporate sector

4. Major Players in the Nonprofit Niche
Large National Firms - Large Healthcare and Higher Ed.
CLA, RSM, BDO (sometimes KPMG & Grant)
3-4 other local/regional firms
Non-audit services – non-CPA firms
Chicago market appears similar to DC

5. Marketing Approach: How We Got Started
Face to face networking
Print advertising and newsletters

6. Top Deciding Factors in Firm Selection
35% of buyers ranked specialized expertise as top deciding factor, well ahead of referrals, reputation, or customer service. Expertise came out just ahead of existing relationships as a deciding factor.
Source: Accounting Today/September 2016

7. Factors Increasing the Probability of Referrals?
Source: Hinge Marketing

11. Marketing Approach: What Tate & Tryon Does Today
CRM
Digital Media
Speaking & Writing
Networking events
One-on-one
Microsoft CRM
Click Dimensions
Syncs with Time & Billing
Niche Newsletters
Announcements
Social Media
Proposals
Website
AICPA/GWSCPA Symposiums
In-house Seminars
ASAE/CEO Update
EO Commentary
Emerging practices white papers
Symposiums
FAR/Council of Nonprofits/GWBOT
Seminars hosted by other service providers
Get to know brown bags with attorneys
Board or Committee positions
Hosted dinners with other professionals (10-15 prospects)
Lunches
Sporting or cultural events
Golf

12. The Marketing Engine is Our CRM
Microsoft Dynamics CRM - 15,000 contacts
Opportunities distributed to the Management Team
Notification of “Won” Opportunities
Used as forecasting tool
Used a marketing strategy tool

13. 1. Example: Opportunity Created
A new Proposal Opportunity has been created in CRM: Subrecipient consulting work for National Academy of Sciences.  If you have any contacts that would be able to assist us in winning this opportunity, please contact the Proposal Lead.   
National Academy of Sciences Primary Contact:         Didi Salmon    Service:                      Audit Topic:                          Subrecipient consulting work Status:                         Proposing Revenue Size:            $50M + Proposal Lead:          Doug Boedeker Est. Close Date:        11/15/2016 Est. Fees:                   $‎17, Proposal Due Date:   10/20/2016
Opportunity Submission Method:           to Individual Opportunity Submitted to:                      Doug Boedeker How did Opportunity Hear about us?     Existing Relationship (or previously worked with) Opportunity Referral Source Details:     Referred to Doug by Laura Douglas. Proposal Lead                                        Doug Boedeker                         

14. 2. Example of a “Won” Opportunity
A new opportunity has been won!
The opportunity in CRM called Sub-award Monitoring Assistance for National Academy of Sciences has been closed as won.
Lynne,
Please add a new client number if necessary for National Academy of Sciences in CRM, as well as any necessary projects to Tenrox.
Debbie, Fred,
Please update FIT as needed.
Account Name National Academy of Sciences
Acronym: NAS
Revenue Size $50M +
Main Phone (202)
Primary Contact Didi Salmon
IRC Section C3
Year End December
Est Fees $‎17,000.00
Partner Responsible: Doug Boedeker

15. 3. Forecasting Tool is the Weekly Opportunities Report

16. 3. Forecasting Tool is the Weekly Opportunities Report

17. 4. Data Influences Marketing Strategy

18. Niche Focused Seminars

19. Niche Focused Monthly Newsletters

20. Non-Traditional Service Offerings Opportunities
Business process improvement
Risk management
Data analytics
Human resources/compensation data benchmarking
Investment management
HR Outsourcing

21. Considerations for Your Nonprofit Niche
Do your homework – particularly your geographic region
Develop a plan – Traditional or non-traditional services
Develop a strong reference list
Be patient - profitability will take time

22. Thank you for your time!
Questions?