Post on 15-Jul-2020
transcript
Fresh approaches:
Creating a fundraising strategy
from scratch
Scottish Fundraising Conference, 5 October 2016
Paul Stein – MQ Director of Fundraising & Engagement
@mqmentalhealth
@paulstein4
mqmentalhealth.org
Presentation Footer in Lucida Sans 10pt 01
Fresh Approaches:
Introduction
My aim today:
To convince you to try doing things differently
We will cover:
• An assessment of the current state of fundraising
• Guidelines to running a lean-start up
• Challenges and opportunities posed by the above
02
Fresh Approaches:
Introduction
Who am I?
03
Fresh Approaches:
Introduction
What is MQ?
• A major new mental health research charity – not yet
launched publically
• To give hope and improve the lives of people with
mental illness
• A long-term project to achieve a lasting impact by
leveraging public support
Part One:
Assessment of Fundraising in
the Third Sector
joinmq.org
04
1. Assessment of Third Sector
Fundraising
06
How has your organisation
responded strategically?
07
1. Assessment of Third Sector
Fundraising
The root of the problem:
• Transactional fundraising – not cause-driven fundraising
• Short-termism rather than maximising long-term success
• Market saturation
Sir Stuart Etherington:
‘There are three practices to blame here: the sharing of
personal data, ‘not taking no for an answer’ and a loose
interpretation of how and when people can be contacted.’
08
1. Assessment of Third Sector
Fundraising
Part Two:
Transactional v Cause Related
Fundraising
joinmq.org
09
2. Transactional v Cause Driven
Fundraising
• Transactional
donors – one off
givers, the cause is
secondary
• Not targeted – e.g.
chuggers
• Often product-led
• Quantity, not quality
10
2. Transactional v Cause Driven
Fundraising
Eric Ries: ‘Create a customer archetype and
source early adopters’
• People who love your cause
• Pull, not push
• Find them by:
o Analysing existing database
o Market research
o Live testing (especially digital)
11
2. Transactional v Cause Related
Fundraising
• Female
• Largely urban
• Mid 30s – Mid 50s
• High-brow
• Families affected
by mental illness
The MQ Supporter Archetype:
12
2. Transactional v Cause Driven
Fundraising
Optimum Supporter Mix Model:
Part Three:
Short Termism v Long Term
Success
joinmq.org
13
3. Short Termism v Long Term
Success
• Too much emphasis on annual
results (often from transactional
products)
• Insufficient analysis & evaluation
• A narrow approach to
acquisition – donations mainly
• Could implement major donor
techniques broadly
• More emphasis on legacy
pledgers required
14
3. Short Termism v Long Term
Success
Eric Ries: ‘Carry out iterative validated learning from
real customers – ‘Build-Measure-Learn’ feedback loop’
‘Long-term success is key - actionable metrics, rather
than vanity metrics, or those over just one iteration
cycle’
• Actual engagement, rather than website hits
• Genuine supporters, not just transactional
• Legacy enquirers and pledgers, not just legators
15
3. Short Termism v Long Term
Success
MQ Approach
• Multi-faceted acquisition
• Continuous testing
• Gradual conversion to
donors
• Building a legacy
programme from day
one
Part Four:
Market Saturation
joinmq.org
16
4. Market Saturation
• Commission
emphasis on how we
engage, steward and
respond to the
preferences of
donors, but little
attention to type of
donors
• All targeting small
cash donors with
same old techniques
• It’s works….a bit…
17
4. Market Saturation
Mark Rovner and Elia McKee ‘The Missing Middle’:
‘New donor acquisition has fallen every year since 2005….
and overall retention is hovering around 25 percent. The
decline of low dollar mass fundraising has arguably
accelerated the use of gimmicks [and]…the habit of using
baubles and banal techniques to solicit donations has
infected online fundraising as well. These practices
dominate the landscape because they “work”— in the short
term, at least. But we continue to wonder whether a donor
relationship built on tote bags and gimmicks can really lead
to long-term committed donor relationships. The latest
research on the subject would in fact suggest not.’
18
4. Market Saturation
Fundraising expert, Roger Craver:
‘Frankly, when you see the amount of money that is left on
the table by these organizations— I mean tens of millions of
dollars—sooner or later they are going to have to deal with
[this neglect] because they can’t squeeze any more blood out
of the particular business-as-usual stone they are currently
working’
19
4. Market Saturation
Eric Ries: ‘Usually companies are very good at
creating improvements to existing products and
serving existing customers – sustaining innovation –
but struggle to create breakthrough new products –
disruptive innovation – that can create new
sustainable sources of growth.’
• Before Crick capital appeal – CRUK raising just 1% of
£600m annual income from major donors
• Factary estimates mid value market value between just
£16m and £25m per annum of £10 billion donated by
British adults every year (0.2%)
20
1 I am the one true
donor – there are no
others quite like me
2 Thou shalt phone
them
3 Thou shalt invite
them to cultivation
events
4 Thou shalt hand
sign all letters
5 Thou shalt use an
“inside track”
approach
6 Thou shalt use
stamps on envelopes
7 Thou shalt update
donors regularly
8 Thou shalt ask
people to “invest” –
not “donate”
9 Thou must remain
flexible – test and
learn
10 Thou must ASK
THEM
4. Market Saturation
Mid Value Ten Commandments
21
4. Market Saturation
Mid Value and Major Donor Success Stories
Mid Value
• Marie Curie 26% growth in mid value over 18 months
- £794k to over £1m
• WJR 28% growth in two years - £485k to over £620k
Major Donors
• MQ – £750k+ in donations and pledges in 18 months
Fresh Approaches:
Summary & Conclusion
22
Summary & conclusion
A fresh approach required for us all:
• To end ‘me too’ syndrome
• Don’t accept a downward trend in ROI
• Focus on quality of supporter & long-termism
• More personalised engagement
• More commercial (and more accountable)
• Go for it... ‘Most entrepreneurs’ biggest fear is not that
their vision will prove to be wrong. More terrifying is
the thought that the vision might be deemed wrong
without having been given a real chance to prove
itself’
Summary & conclusion
Thank you!
Any questions?
Keeping in touch:
• pstein@mqmentalhealth.org
@mqmentalhealth
@paulstein4