Creative Revenue Generation
description
Transcript of Creative Revenue Generation
CREATIVE REVENUE GENERATION
Laura Deaton
Credit: MSL Chief, Wikimedia Commons, original work by Jim Boroch
Agenda
• The “Bad News” AKA “The Need”
• The “Good News” AKA “Creative Revenue Generation Examples”
• Break• “Your Turn” AKA Group
Brainstorming & Sharing• “The New Normal” AKA
Plan B and Questions Photo Credit: Torredibabele, Wikimedia Commons
The Bad News
AKA The Need
The Need“…recent and extraordinary turbulence in the financial markets…”
“…nonprofit and philanthropic sectors are not immune…”
Donors “…will need to make programming decisions that balance commitments with costs…”
Nonprofits “…will need to craft creative strategies for strengthening revenue and refocusing effort.”
[Letter from Michael Hoffman, CEO, Changing Our World, Inc. to Colleagues - October 2008]
Recent Surveys…
• May => Giving USA, 2008 giving 2%, first decline in giving since 1987.
• June => Index of Nat’l FR performance, “Direct response giving ” in Q1 2009.
• August => Johns Hopkins released findings from April 2009 “sounding” of 363 orgs.
Johns Hopkins Sounding
“…All sources declining.”
More than half of responding nonprofits experienced:
• Increasing demands for more of their services;
• Escalating operating costs; and
• Decreasing revenues to meet the higher demands and costs; and
More than a third of nonprofits have had to cut their operations.
Source : National Council of Nonprofits Economic Stimulus and Recovery, Special Report 8, August 10, 2009.
A Perfect Storm
• 83% reported some level of fiscal stress.
• ~40% considered said “severe” or “very severe”– 73% for theatres and orchestras– 30% for those serving children
and aging families• Particularly hard on mid-sized
orgs
http://www.ccss.jhu.edu/pdfs/LP_Communiques/LP_Communique_14.pdf
Impressive Resilience
• Those reporting “severe” or “very severe” lower now than post 9/11 (37% vs. 51%)
• Except for arts orgs, majority reporting fiscal stress is “minimal” or “moderate”.
• More than two-thirds “successful” or “very successful” in coping.
• Nearly three-fourths of the organizations reported being able to maintain or actually increase the number of people they serve, and this was especially true of service to vulnerable populations.
http://www.ccss.jhu.edu/pdfs/LP_Communiques/LP_Communique_14.pdf
A Range of Coping Strategies
• New or Expanded Fundraising efforts
• Stepping Up Marketing and Advocacy
• Belt Tightening
Photo Credit: Flickr: Herkie
CREATIVE REVENUE GENERATION
Specific Examples
Photo: avmeier, wikimedia commons
The Good News
RETAINING EXISTING SUPPORTERSSpecific Examples
Simple Strategies – Monthly
Payment Plans
• College students: $5/month = $60
• Young adults: $10/month = $120
• Regular adult donors: $20 = $240
• “Major” donors: $100 = $1200
From Asking Properly: The Art of Creative Fundraising by George Smith, © G. Smith/White Lion Press Limited.
From Asking Properly: The Art of Creative Fundraising by George Smith, © G. Smith/White Lion Press Limited.
ENGAGING DONORS DIRECTLY Specific Examples
Photo Credit: Flickr:LongLiveRock
Thank You Calls –Covenant House
• Direct mail decline of 20%
• Decided to strengthen connections
• Had youth call to thank and invite to an open house
• Twice as many people came to take tours
• Size of gifts increased by 50%
http://online.wsj.com/article/SB124025204612335931.html
Flickr:Casie Yoder
Donor Roundtables
MAKING EVENTS STILL WORKSpecific Examples
http://www.crainsdetroit.com/article/20090615/EMAIL01/906159990#
Pittsburgh
LEVERAGING VOLUNTEERSSpecific Examples
Volunteers -Special Olympics
• Facing $33.5M budget shortfall before World Winter Games in Idaho.
• Cut plans for paid staff in half• Tapped volunteers from National
Guard, Defense Dept. AmeriCorps, and other nonprofits.
• Instead of training volunteers on-site for two weeks (costly), found a company to design a free online training program for them.
Flickr:ForeverSouls
Source: http://socialreporter.com/?p=516
ASKING IN NEW WAYSSpecific Examples
Thank You Notes –Teachers’ Supply Closet
• Thank you notes from kids with a donation envelope enclosed.
YouTube
• charity:waterraised $10,000 in one day
• Includes donate button, call-to-action overlay, channel listings, ability to request volunteer film-making support
• Film school?
http://www.youtube.com/nonprofits
Simple Strategies – Ask More Frequently
•Huge increased demand for services•Scheduled one week in August
•Each of the 39 centers hoped to raise $40K
http://cityroom.blogs.nytimes.com/2009/07/13/salvation-army-makes-a-summer-appearance/
One step further…
Source: salvationarmatlanta.org
DASHBOARDING TO MEASURE PROGRESS
Specific Examples
Photo Credit: DarKobra, Wikimedia Commons
Real-Time Dashboards
Source: Jan Masoaka, blueavocado.org
Source: Forge
Tweet Your Dashboard
FINDING NEW DOLLARS
INCREASING GENERAL AWARENESSSpecific Examples
Movie Theatres
Billboards
Photo Credit: Flickr:mediaboytodd
Capital Regional Medical Center
Tallahassee Memorial HealthCare
Facebook Fan Page
Best fit is 30-49 age group. Interested in:• Whether or not a nonprofit is successfully
making an impact (75%)• Learning about organizations that are
actively working on issues and causes they care about (62%)
• Success stories and updates on the progress of the nonprofits they support (54%)
FINDING NEW PROSPECTSSpecific Examples
Thinking Outside the (Pizza) Box
• Identified “Highly Connected’ Alums, regardless of how much money they gave.
• Used Linked-In Profile data to identify alums with warm fuzzies for the school
• Developed a process to use Linked-In to keep in-house donor data updated with current information.
• Generational sub-lists
REVAMPING PROGRAMSSpecific Examples
Photo Credit: Flickr:Photocapy
Innovative Income – Joffrey Ballet
• 40% decline in ticket sales
• Teach dance to the public
• Taught in existing space
• Between Jan-April, $200K
• Increased attendance, too
Flickr:oude School
Planning for the Future: Earned Income Strategies
• Presented by Cindy Coney, MissionWise
• Tuesday, September 29, 8:30a-12 noon
• Check-in 8:15
• NOTE: This workshop is targeted for more mature organizations that are better positioned for earned income strategy development.
Expanded Program Definition –Bonnie CLAC
• Increased demand for services
• Loss of $800 per low-income client
• Expanded services upthe income ladder
• Extra $500 per client to subsidize costs of lower-income
Fee-For-ServiceConsider charging for previously grant-funded services
Hopelink - Seattle
Ample Harvest - Food Banks
TURNING GIVERS INTO GETTERSSpecific Examples
Facebook Causes
Shower Strike
Dumpster Diving
FORGING NEW TERRITORY –EARNED INCOME
Specific Examples
FT LAUDERDALE, FL, July 09, 2009
Due to the current real estate market conditions, a Florida couple is raffling off their luxury home in Fort Lauderdale for only $10 per ticket. After the drawing is held, the deed and title to the home will be transferred to the lucky winner (with no mortgage). A portion of the proceeds will go to The Mission of St. Francis.
COLLABORATING IN NEW WAYSSpecific Examples
Target Each Other As Customers
• Meeting or office space rental• Printing services• In-house designer• IT services• PR• Mailing services
Is there a nonprofit from whom we could purchase services?
Event Collaboration
• Ballet and orchestra do “Grease” at a local nonprofit theatre and split proceeds.
• Youth mentoring org teams up with local Alzheimer’s group to target sandwich generation for a 5K Run/Walk.
• Library and PTA team up for donated book drive, and sale.
• Staff Swap
Shared Mailing Lists
Advocacy
“Funding for a new program that teaches inner-city youth how to manage money … First Tennessee Bank will present a $35,000 check on July 22 to the Financial Literacy Collaborative…”
“The collaborative comprises five nonprofits that operate existing after-school and summer programs for at-risk children…”
Joint Staffing
San Francisco
Transparency - Forge
• Changed program model resulted in $100K shortfall
• Founder blogged about mistakes, total transparency
• $50K foundation donation
Forge founder KjerstinErickson
THE BALTIMORE SYMPHONY ORCHESTRA
Niche Sitehttp://www.bsomusic.org/bsokids/
SOCIAL MEDIA RESOURCESAppendix
Social Media Guidance
Guidelines
http://sncr.org/bestpractices/
How to Reach Me
• Laura Deaton, Full Glass Consulting
• Phone: 888-784-3433
• Email: [email protected]