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Strategic Marketing for Nonprofit Organizations
Department of Marketing Patuakhali Science and Technology University Strategic Marketing for Nonprofit Organizations Afjal Hossain Assistant Professor
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Generating Funds Chapter Seven Technology University
Department of Marketing Patuakhali Science and Technology University Chapter Seven Generating Funds
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Objectives Sources Of Funds To Make balance among revenue and cost
Department of Marketing Patuakhali Science and Technology University Balancing Mission and Fund Raising Objectives To Make balance among revenue and cost Generating funds is to achieve an appropriate balance Can free it from reliance on the whilms of grand makers and politicians Sources Of Funds Donation and Grant Revenues Miscellaneous
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Mission Statement Lack of Profitability External causes
Department of Marketing Patuakhali Science and Technology University Reasons for Revenue Undesirable/ Problems of Fundraising 01 Mission Statement External causes Internal causes 02 Lack of Profitability External causes Internal causes
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Nonprofit organizations Government organizations Private nonprofit
Department of Marketing Patuakhali Science and Technology University Fundraising Nonprofit organizations Government organizations Private nonprofit Foundations Corporations Individuals
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Raise money pass through 3 stages:
Department of Marketing Patuakhali Science and Technology University Customer-centered Fundraising Raise money pass through 3 stages: Product orientation stage Sales orientation stage Customer orientation stage
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Diversify their donor bases
Department of Marketing Patuakhali Science and Technology University Fundraising in the 21st Century Diversify their donor bases Shift from periodic fundraising efforts to year round programs Hire specialist in fundraising Develop extensive databases for tracking donors and donor prospects Seek increasingly imaginative means of helping people and organizations
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Donor Markets Analyzing Donor Markets Foundations Corporations
Department of Marketing Patuakhali Science and Technology University Analyzing Donor Markets Donor Markets Foundations Corporations Government Individuals
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The different foundation groups are:
Department of Marketing Patuakhali Science and Technology University Analyzing Donor Markets: Foundations The different foundation groups are: Independent Foundations 1 Family Foundations 2 Corporate Foundations 3 Community Foundations 4
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Proposal for a foundation:
Department of Marketing Patuakhali Science and Technology University Analyzing Donor Markets: Foundations Proposal for a foundation: Fourth Step: The Personnel working on the Project Third Step: The Budget for the Project Second Step: The Proposal First Step: A Cover Letter
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Data required for the proposal of a successful foundation:
Department of Marketing Patuakhali Science and Technology University Analyzing Donor Markets: Proposal for a foundation Data required for the proposal of a successful foundation: Track Record Quality of Staff Ability to measure results Generalizability
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Characteristics of a Corporation:
Department of Marketing Patuakhali Science and Technology University Analyzing Donor Markets: Corporations Characteristics of a Corporation: Local Corporations Kindred Activities Personal Relationship or Contracts Structural Similarity
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Goals of a Corporation:
Department of Marketing Patuakhali Science and Technology University Analyzing Donor Markets: Corporations Goals of a Corporation: Changing the image of an organization Building alliances that give the corporation public support in times of crises Creating awareness and interest in the organization for future customers and future employees Providing a means of binding together employees and distributors in projects Producing increased sales
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State Levels of Government Agencies: Federal Local
Department of Marketing Patuakhali Science and Technology University Analyzing Donor Markets: Government Levels of Government Agencies: State Federal Local
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Motives Donations should not be viewed as a gift but as transaction
Department of Marketing Patuakhali Science and Technology University Motives Motives Donations should not be viewed as a gift but as transaction Most often individuals give in order to get something back
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Segmentation Family Life Cycle: Social Class: Young single
Department of Marketing Patuakhali Science and Technology University Complex General Objectives Measures Segmentation Family Life Cycle: Young single Newly married Full nest I Full nest II Full nest III Empty nest I Empty nest II Solitary survivor Social Class: Upper uppers, lower uppers, upper middles, lower middles, lower lowers and upper uppers
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The later Years (Over 70 years)
Department of Marketing Patuakhali Science and Technology University Analyzing Donor Markets: Individual Givers Robert Sharpe divided individual givers into 3 groups: The Early Years (Up to age 50) The Middle Years (50-70 yrs age) The later Years (Over 70 years)
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Types of individual Fund Raising Annual Giving Major Giving
Department of Marketing Patuakhali Science and Technology University Analyzing Donor Markets: Individual Givers Types of individual Fund Raising Annual Giving Major Giving Planned Giving
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Basic components for an effective annual giving campaign:
Department of Marketing Patuakhali Science and Technology University Analyzing Donor Markets: Annual Giving Basic components for an effective annual giving campaign: Strong volunteer leadership Clear organization structure Ambitious but realistic goals Careful segmentation of donors and prospects Extensive prior research Thorough training of volunteer solicitors A detailed timetable of activities and mileposts Extensive reports and accountability Donor and volunteer recognition Online giving options Building of lifetime donors
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Annual fund drive leaders are also known as:
Department of Marketing Patuakhali Science and Technology University Leadership Annual fund drive leaders are also known as: Community leaders Nationally known figures Senior/ members of the board of directors The volunteer leadership will: Ensure that the volunteers have the information they need to take effective action Maintain continuity between each program stage Prepare the reports and other materials used to track performance
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Multiple approaches are used to raising money are:
Department of Marketing Patuakhali Science and Technology University Organization Multiple approaches are used to raising money are: Direct mail Telephone solicitations Personal contact Fundraising events Telethons Internet
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Characteristics of Goals:
Department of Marketing Patuakhali Science and Technology University Goals Characteristics of Goals: Realistic Motivating Clear Bench Marked Assigned
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Department of Marketing
Patuakhali Science and Technology University Segmenting Markets The overall target market is subdivided in ways that will help campaign managers to decide: How much effort to assign to each target member How specifically to approach him/ her
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Department of Marketing
Patuakhali Science and Technology University Segmenting Markets Warwick suggests a number of ways to make sure donors are “yours” for a lifetime: Thank donors quickly Send new donors a welcome package Telephone every new donor who gives over a given threshold Set up a donor information hotline Offer donors choices as to how gifts will be used Host special events especially for donors Send unsolicited pins, autographed books or certificates to top donors Send proposal notes and annotated news clippings to the very best donors
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Workers are given extensive skills about campaign objectives
Department of Marketing Patuakhali Science and Technology University Training Workers are given extensive skills about campaign objectives Ask for money and get a commitment
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Department of Marketing
Patuakhali Science and Technology University Online Giving This method is expected to grow significantly in importance in the next decade
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Department of Marketing
Patuakhali Science and Technology University Building Lifetime Donors Nonprofits are interested not just in individual gifts but in attracting a donor for his or her lifetime.
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There are several steps involved in developing a major gift program:
Department of Marketing Patuakhali Science and Technology University Major Giving There are several steps involved in developing a major gift program: Identifying prospects Qualifying them Determining appeals that might be used Assigning one or more volunteers to make the personal solicitation Preparing the presentation and making the solicitation Following up the gift with full recognition
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Tactics are used to solicit major gifts:
Department of Marketing Patuakhali Science and Technology University Major Giving Tactics are used to solicit major gifts: Auctions Benefit events Invitational dinners Dances Fairs Fashion shows Small gatherings in a sponsor’s home Celebrity meetings Challenge grants
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Volunteers must be careful to do two things:
Department of Marketing Patuakhali Science and Technology University Volunteers Volunteers must be careful to do two things: Emphasize benefits to the donor not benefits to the organization Tailor the benefits to the individual own needs, wants and lifestyle situation
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Types of Costs of a Major Giver might consider:
Department of Marketing Patuakhali Science and Technology University Cost of a Major Giver Types of Costs of a Major Giver might consider: Opportunity cost Publicity Worries that money might be misused or wasted Worries that a large payment might temporarily put the family at risk in case on emergency arises
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Planned Giving can take a wide range of forms:
Department of Marketing Patuakhali Science and Technology University Planned Giving Planned Giving can take a wide range of forms: Ordinary wills Life Insurance Major complicated forms: Charitable remainder trusts Pooled income fund Charitable gift annuity Charitable lead trust Life estate agreement
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