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Getting noticed in a crowd- how to impress funders, commissioners, supporters. A strategy based on a single income stream is always going to fail one day. What we know about the rejection rates. For almost all 2 stage applications there is an 80% rejection rate at first stage.
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Getting noticed in a crowd- how to impress funders, commissioners, supporters
A strategy based on a single income stream is always going to fail one day.
What we know about the rejection rates • For almost all 2 stage applications there is an 80% rejection rate at first stage. • Second stage the rejection is 50% • In other words 90 % of applications are failing!
What is your strategy • Income analysis- where does your income come from. What proportion of your income comes from contracts, trading , trusts and foundations, donations • The rule of Thirds. No more than a third of your income should come from one source
Sources of funding • Government. • Grant-making organisations. • Companies. • Individuals. • Trading + fees. • Events. • Internet and Social Media
How funding is divided. • General public giving and Lottery= 38% • Statutory agencies=36% • Voluntary Sector grant making trusts=8% • Commercial sector =6% • Trading and investments=12%
Return on investment • Have you thought about how you raise funds? • Raising funds from trust and foundations offers a return of 1:9 • From corporate donors its a return of 1:8 • From legacies its a return of 1:36 • From individual donors its a return of 1:1.5 at worst and at best its a return of 1:2.5 • What is your fundraising strategy?
Foundation Applications • Research the funder • Follow the guidelines • Write a log-frame • Apply in time • Monitor & evaluate • Report back • Apply again • Create a relationship
What we know about the rejection rates. • For almost all 2 stage applications there is an 80% rejection rate at first stage. • Second stage the rejection is 50% • In other words 90 % of applications are failing! • For Big Lottery Reaching Communities the rejection rate is currently 94%
Reaching Communities is a competitive fund • In 2010/11, 5,730 outline proposals requesting over £1 billion (many not eligible for funding) • 1,322 eligible full applications asking for £354,713,780.
Reaching Communities made 500 grants totalling £124,127,283. The average grant size awarded was £248,255.
Esmee Fairbairn • Funded £32,000,000 in 2010 • There were 2330 applications to their main fund • 357 were invited to 2nd stage application • 270 received funding • Rejection rate = 83%
Tudor Trust • In 2010-11 the trust received • 2712 applications • 2506 were eligible • 349 went to the grant panel • 338 received awards (average of 56K) • Rejection rate = 84%
Henry Smith • Total eligible applications in 2010/11 1583 • Total awards 330 • Average grant 57,000 • Rejection rate 79%
What is your strategy? • Income analysis- where does your income come from. What proportion of your income comes from contracts, trading, trusts and foundations, donations • The rule of Thirds. No more than a third of your income should come from one source
Return on investment • Have you thought about how you raise funds? • Raising funds from trust and foundations offers a return of 1:9. This means for each pound you spend on fundraising you should get £9 back • From corporate donors its a return of 1:8 • From legacies its a return of 1:36 • From individual donors its a return of 1:1.5 at worst and at best its a return of 1:2.5 • What is your fundraising strategy? Where are you targeting your fundraising energy? Don’t forget the rule of thirds!!!
You are competing for funds • In England and Wales their are 187000 registered charities • In England and Wales their are 647000 charitable organisation • The sector attracts £52 billion funding each year (£9.3 billion comes from the public, about 20%) • How much did you get?? Of the £11billion donated by the public what share did you get? (0.075% of this would give you an annual income of £8.25Million!) Source: Directory of Social Change/ NCVO/Charities Aid Foundation
Charitable giving • Figures released December 2012, show that over the year (2011/12) the UK public gave £9.0 billion to charity. A fall of 20%. • Source NCVO and CAF ; UK Giving report 2012 • A report by Blackbaud on giving indicated that 70% of respondents had maintained their giving , 17% had reduced their giving How much did you get?
Who does the giving? • Women aged 45-64 years are the most likely to give and give the most (typical median amount £20 per month). • Those aged 16-24 years are the least likely to give. • Who are you asking for money from? • Who is giving you money? • Are you asking for gift aid?
What about new technologies • Their were 12million smart phones in use in the UK in 2011 • Another 2million were forecast to be purchased at Christmas • If 1% of all the texts sent in the UK were converted to a £1.50 donation the charity sector would raise £1.5 billion poundsCan we afford to ignore this?
Why use the new technologies • Over 34million, 16 – 65 year olds in the UK own a mobile phone, people for you to potentially reach to help raise money for your cause, so what are you waiting for! • In December 2010, for the first time consumers spent more with debit cards than cash.( How much cash do you have in your pocket?)
Charities who use online funding, raise 6 times more than those who don’t
Its not rocket science! • Technology is a tool to build relationships. • Understand the technology and its limitations. • Develop a strategy • Here is why you should........
• 83% of the UK use the internet. That’s over 51 million people!¹ • ... and there’s another 2 billion worldwide.¹ • That’s a lot of people... and it’s still growing. In 2010 there was a 14% increase in users worldwide.²
• 56% of UK adults have given to charity (2009/10), that’s 28.4 million UK adults. • But 58% of people shop online
The average offline donation is £15.¹ • The average online donation is £30.¹ • ... however this rises to £54 when donors are targeted more specifically.¹ • ¹ Race Online 2012 Survive & Thrive casebook
1 in 5 emails from non-profits get opened¹ • ...with 3.4% generating a click.¹ • But if fundraising emails are sent from your friends, then the open rate is 90% • ...and 1 in 4 lead to a donation! • Source MailChimp
46% of the UK is on Facebook...¹ • ...and represents 7% of all UK time spent online.¹ • It has more than 750 million users worldwide...² • ... that’s more than 10% of the worlds population. • 48% of 18 - 35 yr olds check Facebook when they wake up.³ ¹ Uk Online Measurement (UKOM) , ² Facebook.com ³ onlineschools.org
How much do you know • Know your metrics • For example... • Number of website visitors • Number of telephone/email enquiries • Number of NEW people added to mailing list • Number of donations / products sold • Value of donations / products sold
. The Fundraising Pyramid
The Golden Prize • The aim of building donor relationships is encourage the whole world to support you through increasing their level of contribution up to and including a legacy. • You need a strategy for fundraising and a strategy for marketing your project
Why do people give. • They are asked • They believe you are stable & ethical • They want to honor someone/thing • They want to extend their values • They have a high regard for the staff and the volunteer leadership • They want to belong to something
Here is a transalation ADVOCATE / RAVING FAN SUPPORTER / CLIENT DONOR / CUSTOMER LEAD PROSPECT SUSPECT
To know where they are you need know who they are. start to segment your supporter base • Gender, age , nationality, income range, educational attainment, language, employment, technology literate? communications preference
What keeps your supporters awake at night? What do they worry about?
What do your supporters want to hear? • Not -what do you want to tell them?
The marketing mix • These are the tools that you use to maintain the relationship with your supporters and recruit new supporters. • Newsletters, e bulletin, appeals, campaigns, thank you’s, success stories
The biggest mistake- MWA Most wanted action. • What is the action? Have you made it clear? How do they take the action?