HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
MONEY FOR GOOD II
How to Get More Money for More
Good
2012
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Poll
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1. Who are you? a. Nonprofit professional b. Foundation program officer c. Philanthropy advisor d. Other
2. Have you heard of the Money for Good research?
a. Yes b. No
3. Have you downloaded our free Guidebook?
a. Yes b. No
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Where it all started… (for Bob)
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To revolutionize philanthropy and nonprofit practice by providing information that
advances transparency, enables users to make better
decisions, and encourages charitable giving.
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Hmmm…
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Money for Good research by Hope Consulting gave us pause. Do people actually care about information… and GuideStar?
Only 1/3 of donors research ~5% research to find the best NPO
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Where this led
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• Surveyed 6,500+ individual donors, advisors, and grant-makers2
- Supported by the Gates Foundation, Hewlett Foundation, Liquidnet for Good
• Established these groups’ research
behaviors and unmet needs around: − Information − Format − Channel/source
• Surveyed 4,000 affluent Americans1
• Created a baseline of Americans’
giving and impact investing behaviors and preferences
• Found that while donors say that how well a nonprofit performs is important, few actively try to fund the “best” nonprofits`
Money for Good I: 2010 Money for Good II: 2011
1. Nationwide surv ey of Americans with HH income of $80K+, with ov er-sample of Americans with HH income of $300K+. 2. Nationwide surv ey of 5,075 donors, 875 donor adv isors, and 795 institutionally-affiliated grant-makers
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Today’s goals…
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1. How donors, advisors, and foundation grant-
makers behave and research nonprofits today
2. What these groups want in terms of information on nonprofits
3. What nonprofits can do based on this information to improve their fundraising and operations
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
How nonprofits are researched…
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• Yup • Looking deeper we see that 20% are
core researchers, 30% occasional… • And research varies by cause area
and familiarity
• They research almost all recs/grants
• All groups get their info from the NPO • Individual donors rely on basic
information on the organization
• Do individual donors really only research 1/3 of donations?
• What about foundations & advisors?
• What information do people use and where do they get it?
We Wanted to Know… We found…
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Few donors research charities – even fewer to find the ‘best’ nonprofits
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COMPARE RESEARCH CARE Care about nonprofit
performance Self described as doing ‘research’ before donating
Researched to compare nonprofits
Individuals
Advisors
Foundations
Supporting Details
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
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Some donors are more prone to research than others
Lost Cause Long Shots Occasional Core • No research in past • No research future • Will never research
• No research in past • Possible to convince
to research in future
• Show signs of researching, but not consistently
• Researched in past • Will research in
future
% research past % “action” past % Research > 1HR % Δ Behavior due to Research in past % Interest in HPNP % looked for “Effectiveness” info
14% 39% 19% 29% % Individual Donors 0%
38%
6%
38%
0%
7%
0%
49%
7%
51%
37%
14%
32%
83%
24%
70%
45%
40%
100%
100%
44%
73%
51%
62%
Supporting Details
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
87%
81%
74%
35%
0% 25% 50% 75% 100%
First-time donation
First-time,recommended by a
friend
Disaster relief donation
Repeat donation
33% 41%
58%
0%
20%
40%
60%
80%
100%
Average When NotBrand Name
When NotBrand NameOR Personally
Recommended
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However, donors are likely to research when they are not familiar with a nonprofit…
% of all respondents
% OF DONATIONS RESEARCHED
Source: M FGII
% THAT WOULD RESEARCH WHEN:
Supporting Details
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
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…or in particular cause areas
% OF GIFTS RESEARCHED
Source: M FGII
% OF DOLLARS RESEARCHED
Poverty 21%
Education 21%
Health 16%
Children 15%
Other 27%
0 62%
59% 50%
48% 47% 46%
41% 41% 40%
38% 38% 38% 36%
34% 31%
25% 22%
18%
0% 25% 50% 75%
InternationalInt'l Disaster Relief
Human RightsCommunity
EmploymentEnvironment
FoodPoverty
ChildrenWomenAnimal
Disaster ReliefEducation
HealthFundraising
ArtsReligion
Specific School --- average
Supporting Details
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
And what do donors, foundations, and advisors want?
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• They want a full picture of the NPO • They need more info on impact /
effectiveness
• What information do they want?
We Wanted to Know… We found…
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
What donors want: Donors want a full picture of a nonprofit, and better information on effectiveness than they have today
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Donors look for info on: − Financials − Legitimacy − Cause − Organization − Effectiveness
Donors don’t find info on: − Effectiveness
Donors say they don’t care as much about: − Endorsements − Information
comparing nonprofits
Info
Im
porta
nt
Info
N
ot Im
porta
nt
Effectiveness Info on Cause Basic info on Org
Financials
Legitimacy
Comp. Info Endorsements
UNMET NEEDS MET NEEDS
NO NEEDS
Info
Im
porta
nt
Performance Weak
Performance Strong
Donor’s Information Needs
Supporting Details
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
And what do donors, foundations, and advisors want?
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• They want a full picture of the NPO • They need more info on impact /
effectiveness
• Think “Consumer Reports”
• Nonprofits or • Organizations (like GuideStar) that
evaluate or provide info on nonprofits
• What information do they want?
• How do they want it packaged?
• Where do they want to get it?
We Wanted to Know… We found…
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Where they get information today: Today, the nonprofit itself is the donor’s leading source of information
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28%
25%
21%
16%
15%
14%
13%
13%
11%
10%
9%
6%
4%
2%
0% 10% 20% 30% 40%
Nonprofit's website
Friend or family member
Nonprofit solicitation
Beneficiary
Internet search
Site visit
Presentation/event
Someone at the nonprofit
Media report
Community foundation/funder
3rd party nonprofit portal (ex. GuideStar)
Expert
Grant proposal or annual report
Advisor
Sources Donors Use Today (check all that apply)
Source: MFGII
Sources prov ided by the nonprofit
Supporting Details
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
53%
48%
47%
39%
32%
28%
28%
24%
18%
18%
16%
12%
10%
0% 25% 50% 75% 100%
Nonprofit evaluation org (ex. GuideStar)
Evaluation org (e.g., Consumer Reports)
Certification org (ex. BBB)
Family and Friends
Nonprofit itself
Leading foundations
People involved with org.
Media
Expert panel
Government agency
Local community foundation
Leading university
General public
Where they will go tomorrow: But donors would prefer to use third-party portals or organizations
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MFGII. Q: “Who would you trust to prov ide the information that you are looking for?”. %’s reflect % of respondents rating source as a 5 or 6 on 1-6 scale
Sources Donors Would Prefer to Use
Supporting Details
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
And what do donors, foundations, and advisors want?
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• They want a full picture of the NPO • They need more info on impact /
effectiveness
• Think “Consumer Reports”
• Nonprofits or • Organizations (like GuideStar) that
evaluate or provide info on nonprofits
• 5% … or $15,000,000,000
• What information do they want?
• How do they want it packaged?
• Where do they want to get it?
• Will they act differently?
We Wanted to Know… We found…
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
The Opportunity: $15,000,000,000
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Nonprofits receive $300B annually from donations and grants
Based on our research, we believe that there is an opportunity to shift ~5% of that – or $15B – through better information
This implies a wonderful opportunity to shift more money to the best nonprofits
Supporting Details
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
So, let me understand…
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• No. Not that black and white • Giving is emotional • But people want to know they are
doing good w/ hard earned $$
• In some ways, yes • In others, we are changing
• Good question…
• Donors are rational, analytical beings that want a lot of data, especially on impact?
• GuideStar had it right all the time?
• That there are things nonprofits can do with this information???
Are you saying…
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Collect, Communicate, Connect
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HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Before elaborating, another quick poll
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1. Have you heard of the GUIDESTAR EXCHANGE PROGRAM? a. Yes b. No
2. Do you have an updated GUIDESTAR EXCHANGE PROFILE?
a. Yes b. No c. I don’t know
3. Have you heard of CHARTING IMPACT?
a. Yes b. No
4. Have you heard of GREAT NONPROFITS?
a. Yes b. No
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Collect, Communicate, Connect
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1. Focus on impact. The unmet need. Show how well you are achiev ing your goals
2. Chart your impact. Answer five key questions that will bring you and your donors clarity on your approach and accomplishments. For more go to www.chartingimpact.org
3. Update / complete your GuideStar Exchange profile at http://bit.ly/GuideStarExchange
4. Use GreatNonprofits to gather input from stakeholders at www.greatnonprofits.org
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Collect, Communicate, Connect
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1. Lead with impact and competence. Donors want to be sure their money isn’t being wasted and that you are making a difference. They look to NPOs to find that info
2. Highlight third party accolades, like Philanthropedia, GreatNonprofits, Charity Nav igator
3. Update your GuideStar Exchange profile. You can link directly to it and it will populate many other portals.
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Collect, Communicate, Connect
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1. Know your donors. Donors are a diverse group and not everyone is going to be the right fit for your message. Make sure that you are talking to the right groups
2. Target your message. Make sure you tell your story in a way that appeals to each groups
3. Follow up. Thank your donors and let them know what you did with the money and how you are improv ing what you do. Don’t ruin it by asking for more
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
More Money for More Good – CAPTURE THE $15 BILLION!
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The Guide Includes: Info: In-depth findings on how individual donors, advisors,
and grant-makers use information today, and are likely to use information tomorrow
Insights: How nonprofits can increase fundraising and help create a more effective sector
Applications: Case studies of organizations that use information to drive donor engagement
Tips: 10 tips to help nonprofits collect better information, communicate their story, and connect with donors
Document is available at www.guidestar.org/moneyforgood
Questions? Email Lindsay at [email protected]
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
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Bob Ottenhoff President and CEO Emeritus, GuideStar CEO, Center for Disaster Philanthropy [email protected] http://disasterphilanthropy.org/
Greg Ulrich Director, Hope Consulting [email protected] www.hopeconsulting.us
Lindsay Nichols Communications Director, GuideStar [email protected] www.guidestar.org
Thank you!
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Q&A
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For more information, including our full reports, infographics, and other tips,
please visit:
www.guidestar.org/moneyforgood
www.guidestar.org | www.hopeconsulting.us
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
Appendix
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HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
About GuideStar
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AP P ENDI X
To revolutionize philanthropy and nonprofit practice by providing information that: • advances transparency, • enables users to make better
decisions, and • encourages charitable giving.
GuideStar’s Mission
HOPE CONSU LT ING and GU IDESTAR U SA #M oneyforGood
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Customer insights and strategy consulting Identify opportunities for clients to drive growth and social impact Focus on: • Global health • Financial services • Impact investing • Philanthropic
effectiveness
WHAT WE DO
About Hope Consulting
Experienced consultants from top-tier strategy firms Supported by specialists with deep expertise in brand, technology, and industry
WHO WE ARE
Deep Customer Insights Capabilities
Comprehensive discovery predictive approaches
quantification of market opportunity
Strategy Expertise
Powerful Analytics
Experience on the Ground
(50+ countries)
HOW WE’RE UNIQUE