Daniel Bernard Kirsten Miller Amanda Signorelli Jason Yakabu

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Daniel Bernard Kirsten Miller Amanda Signorelli Jason Yakabu Expanding the Mission: More than Dollars and Cents Arch Consulting

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Arch Consulting. Expanding the Mission: More than Dollars and Cents. Daniel Bernard Kirsten Miller Amanda Signorelli Jason Yakabu. Agenda. Problem Recommendations Donations Advertising Grants Financial Results Implementation. Goals and Weaknesses. Weaknesses. - PowerPoint PPT Presentation

Transcript of Daniel Bernard Kirsten Miller Amanda Signorelli Jason Yakabu

Page 1: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Daniel Bernard Kirsten Miller Amanda Signorelli Jason Yakabu

Expanding the

Mission:More than

Dollars and Cents

Arch Consulting

Page 2: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Agenda• Problem• Recommendations• Donations• Advertising• Grants

• Financial Results• Implementation

Page 3: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Goals and Weaknesses

Agenda Problem Agenda Agenda Agenda

Source: 180 donors / 16,000 readers

• For vendors• For Street

SenseIncrease revenue

• Help the homeless• Create awareness

Further the

mission

Weaknesses

Low individual donor

participation (1%)

Mission is limited due to

revenue constraints

Problem Recommendations Financial Results Implementation

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Revenue: Money on the Table

Agenda Problem Agenda Agenda Agenda

Vendor Donor

Donor Donor

Donor

¢$$$

• Necessity to monetize relationships with donors• Increased funds leads to enhanced mission fulfillment

Donor

$$$

Problem Recommendations Financial Results Implementation

Page 5: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Mission: Limited Scope

Agenda Problem Agenda Agenda Agenda

Breadth

• Aid more homeless individuals

• Educate the masses

Depth• Supply wider

range of services

• Provide more meaningful engagement

Problem Recommendations Financial Results Implementation

Page 6: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Street Paper Comparison

StreetWise Real Change Spare Change Street Sense0

0.51

1.52

2.53

0.74%

1.78% 1.70%

2.59%

Street Paper

Perc

ent

Mar

ket

Pene

trat

ion

Problem Recommendations Financial Results Implementation

StreetWise Real Change Spare Change Street SenseCity Chicago, IL Seattle, WA Boston, MA D.C.Cost to Vendor 0.90$ 0.35$ 0.25$ 0.35$ Street Price 2.00$ 1.00$ 1.00$ 1.00$ Vendors 200 250 100 125Reach 20,000 11,000 10,000 16,000 How Often Weekly Weekly Biweeky BiweeklyCity Pop 2,700,000 617,000 589,000 618,000 Metro Area Pop 9,800,000 3,340,000 4,400,000 5,580,000 Percent Penetration 0.74% 1.78% 1.70% 2.59%

Source: Papers’ Annual Reports

Page 7: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Growing Interest

Agenda Problem Agenda Agenda Agenda

Increasing Revenue Furthering the Mission

Increase interest in homeless issues

Increase in vendor sales

Translate vendor purchases into

Street Sense donations

Increase donation frequency and

amount

• How do we get more people engaged in the issues?• How do we get more people reading the publication?

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results Implementation

Page 8: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Recommendations

Agenda Problem Agenda Agenda Agenda

Source: Total Benefit calculated by Arch Consulting; see appendices

Grants

Advertising

Donations$49,706

Total Benefit

HUGE Potential

Problem Recommendations Financial Results Implementation

$38,360

$11,346

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Veteran Focus: Expand Involvement

Revenue• Positive publicity• Salient reciprocity appeal• Increased readership• New grant and corporate sources

Mission• 1 out of 4 homeless are veterans• Overcoming the negative stigma• Increasing awareness and educating

Agenda Agenda Agenda Agenda AgendaProblem Recommendations Financial Results ImplementationSource: Continuum of Care Point-in-Time Counts, 2010 (2010 Annual Homelessness Assessment Report to Congress)

Page 10: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Increase Website Effectiveness

Agenda Problem Agenda Agenda Agenda

Source: Street Sense website

Vendor PortfolioProposed Website

Current Website

-Resume-Donations

-Writings-Blog

• Static vendor presence• No way to donate to vendor• No vendor-created content

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results Implementation

Page 11: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Increase Website Traffic

Agenda Problem Agenda Agenda Agenda

Vendor PortfolioVendor Stickers

Donor newsletter Writing contest

Increase traffic to vendor portfolios

Writing Contest

Visit My Portfolio @ www.streetsense.org/philliphoward

• Reader-submitted pieces about homeless issues

• Online voting• Winner featured in Street

Sense

• Vendor incentive to promote website

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results Implementation

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Formalize Corporate Matching

• Website provides no way to solicit corporate matches

Website Modification• Donors include employer information• Street Sense collects employer matches

On average, 10% of nonprofit gifting is corporate match eligible

Sources: “Maximizing Matching Gifts.” Philanthropy Journal.

Hilltop Consulting

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results Implementation

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Sustain Donor Engagement

Agenda Problem Agenda Agenda Agenda

Content• Creative ways to donate time

and money• Upcoming events• Policy issues and advocacy• Interviews

Donor NewsletterCollect donor

demographic information

Problem Recommendations Financial Results Implementation

Page 14: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu
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Increased Conversion

Additional Web Visitors

Paper Sales

Corporate Matching

0 5000 10000 15000 20000 25000 30000

Additional Revenue

Total Revenue from Donations $-

$5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000

$12,960

$12,000

$10,400

$3,000

New Revenue from Donations:

$38,360

Increased ConversionAdditional Web VisitorsPaper SalesCorporate Matching

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results Implementation

Donations: Forecasted Financial Impact

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Redeem forDonation to

Strengthen Advertising Revenue

Agenda Problem Agenda Agenda Agenda

New Merchants

• American companies• Veteran interests• Local businesses• Other aid centers

Merchant Redemptions

• Free ad space in exchange for donation cards

• For every redeemed donation card, an amount is donated to Street Sense

Ad Interns

• Interns contract merchants for advertisements

• Commission based structure per ad sold

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results Implementation

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Advertising: Forecasted Financial Impact

Agenda Problem Agenda Agenda AgendaProblem Recommendations Financial Results ImplementationProblem Recommendations Financial Results Implementation

Total Profit from Advertising $-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$4,846

$6,500

New Profit from Advertising:

$11,346

Redemption AdvertisingAdvertising Revenue

Advertising Profit

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Secure Grant Funding

Source: NYTimes “Helping Veterans Find Civilian Jobs;” foundations’ websites

GE Foundation• $2 million to Disabled

American VeteransWal-Mart Foundation • $10 million over 5 years to

veteran programsMicrosoft • $2 million future veteran givingHoneywell• $15,000 for homeless veterans

in Minneapolis

Homeless Veterans’ Reintegration Program

• $100 million– Gift sizes range from

$75,000 to $300,000

Corporate GivingGovernment

Agenda Agenda Agenda Agenda AgendaProblem Recommendations Financial Results ImplementationProblem Recommendations Financial Results Implementation

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Total Benefit to Street Sense

0 10000 20000 30000 40000 50000 60000 70000 80000 90000

Increased Conversion

Additional Web Visitors

Redemption Advertising

Advertising Revenue

Corporate Matching

Paper Sales

$27,000

$85,000

$50,000Base Case

Optimistic Case

Pessimistic Case

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results Implementation

Page 20: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Agenda Problem Agenda Agenda Agenda

SHORT TERM(1-6 months)

MEDIUM TERM(6-12 months)

LONG TERM & ONGOING(+1 year)

Vendor Sponsorship

Seek New Merchants

Veteran CampaignRecruit Veteran Vendors

Implementation

Hire Ad Interns Redeem Donation Cards

Website

Corporate Matching

Vendor Portfolio

Literary Contests

Apply for Grants

Special Events

Donor Newsletter

Based on current staffing:2 part-time, 2 full-time

Problem Recommendations Financial Results ImplementationAgenda Problem Agenda Agenda AgendaProblem Recommendations Financial Results Implementation

Page 21: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Closing: Recommendations

Agenda Problem Agenda Agenda Agenda

Source: Total Benefit calculated by Arch Consulting; see appendices

Grants

Advertising

Donations$49,706

Total Benefit

HUGE Potential

Problem Recommendations Financial Results Implementation

$38,360

$11,346

Page 22: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

AppendixFinancial Benefits• Conversion Rate Growth• Unique Visitor Growth• Merchant Redemption Cards• Additional Advertising• Corporate Matching• Newspaper Sales• Revenue/Profit Stream Range

s• Total Benefits to Firm• Income Statement

Recommendations• Donations - overview• Advertising - overview• Grants - overview

Demographics• Street Paper Circulation Trend

s• Increase in Veteran Homeless

ness• Discrimination Against the Ho

meless

Recommendation Support• Potential Merchants for Adver

tising• Events Calendar

Page 23: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Total Revenue/Profit Stream Ranges

Increased Conversion

Additional Web Visitors

Paper Sales

Redemption Advertising

Advertising Revenue

Corporate Matching

0 5000 10000 15000 20000 25000 30000

Additional Revenue/Profit

Appendix

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Street Paper Circulation Trends•US average increased 36%(2011)•Nashville and L.A. have quadrupled their sales

•Europe average increased 6.4%•Asia average increased 48%

Source: NPR, Megaphone magazine

Appendix

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Potential Merchants for Advertising

policy initiatives, politicians,

theatre, conferences

organic product, local banks, construction,

cafe

housing, events,

bookstores, fellow aid

centers

Appendix

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Increase in Veteran Homelessness 8.9% of homeless population in DC are

veterans Estimated 1,200 in DC in 2011 Nationwide: 1 in 4 homeless are

veterans Predicted to increase over time with

Iraq and Afghanistan veterans

Source: Continuum of Care Point-in-Time Counts, 2010 (2010 Annual Homelessness Assessment Report to Congress)

Appendix

Page 27: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Discrimination Against the Homeless 1,184 acts of violence against the homeless (1999-

2010) 312 deaths

Laws: 28% prohibit “camping” in particular public places in the

city 16% had citywide prohibitions on “camping”

27% prohibit sitting/lying in certain public places. 39% prohibit loitering in particular public areas

16% prohibit loitering citywide 43% prohibit begging in particular public places

21% have city-wide prohibitions on begging 45% prohibit aggressive panhandling

Source: National Coalition for the Homeless “Hate Crimes Against the Homeless”, “A Dream Denied: The Criminalization of Homelessness in U.S. Cities”

Appendix

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Events Calendar

Appendix

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45,833$ 25$ 50$ 100$ 200$ 400$ 0.04% 240 480 960 1,920 3,840 0.14% 840 1,680 3,360 6,720 13,440 0.34% 2,040 4,080 8,160 16,320 32,640 0.54% 3,240 6,480 12,960 25,920 51,840 0.74% 4,440 8,880 17,760 35,520 71,040 0.94% 5,640 11,280 22,560 45,120 90,240 1.14% 6,840 13,680 27,360 54,720 109,440

Average Online Donation

Increased Conversion

Rate of Online

Visitors to Donors over

.46%

Incremental Revenue from Higher Conversion Rate of Online Visitors

AssumptionsUnique Visitors/Month 2000

Appendix

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5,000$ 100 250 500 750 1000 150050$ 600 1,500 3,000 4,500 6,000 9,000

100$ 1,200 3,000 6,000 9,000 12,000 18,000 150$ 1,800 4,500 9,000 13,500 18,000 27,000 200$ 2,400 6,000 12,000 18,000 24,000 36,000 250$ 3,000 7,500 15,000 22,500 30,000 45,000 300$ 3,600 9,000 18,000 27,000 36,000 54,000 400$ 4,800 12,000 24,000 36,000 48,000 72,000

Incremental Additional Unique Monthly Visitors

Average Donation

Size

Incremental Revenue of Additional Monthly Visitors

AssumptionsConversion Rate 1%

Appendix

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Incremental Profit from Merchant Redemption Cards

### 0.10$ 0.15$ 0.20$ 0.25$ 0.30$ 0.35$ 1% (260) 260 780 1,300 1,820 2,340 2% 780 1,820 2,860 3,900 4,940 5,980 3% 1,820 3,380 4,940 6,500 8,060 9,620 4% 2,860 4,940 7,020 9,100 11,180 13,260 5% 3,900 6,500 9,100 11,700 14,300 16,900 6% 4,940 8,060 11,180 14,300 17,420 20,540

Coupon Redemption Value

Rede

mpti

on R

ate

AssumptionsPapers/Vendor 133Issues/Year 26Commission 25.00$ Number of Ads/Issue 2Papers/Issue 20,000

Appendix

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Incremental Profit from Additional Advertising

Source: Ad rates are from “Street Sense Ad Brochure 2011”

Full Page 7501/2 Page 4131/4 Page 2331/8 Page 1281/16 Page 71Cover Ear 203Cover Strip 178

Ad Rates

Appendix

4165.2 71 128 233 413 75010% 1661 2995 5452 9664 1755015% 1569 2829 5149 9127 1657520% 1477 2662 4846 8590 1560025% 1385 2496 4544 8054 14625

Total Additional Ad $/Year

Additional Ad $/Issue

Com

misi

on

Perc

enta

ge

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1,250$ 100$ 200$ 300$ 400$ 500$ 1.00% 300 600 900 1,200 1,500 2.00% 600 1,200 1,800 2,400 3,000 3.00% 900 1,800 2,700 3,600 4,500 4.00% 1,200 2,400 3,600 4,800 6,000 5.00% 1,500 3,000 4,500 6,000 7,500

10.00% 3,000 6,000 9,000 12,000 15,000 20.00% 6,000 12,000 18,000 24,000 30,000

Average Online Donation

Percent of Online

Donations w/Corporate

Matching

Incremental Revenue from Corporate Matching

AssumptionsConversion Rate 1.00%Online Donors 300Unique Visitors 2500

Source: Philanthropy Journal

Appendix

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0 1000 2000 4000 6000 8000 100000.05 1300 2600 5200 7800 10400 13000

0.1 2600 5200 10400 15600 20800 260000.15 3900 7800 15600 23400 31200 39000

0.2 5200 10400 20800 31200 41600 520000.25 6500 13000 26000 39000 52000 65000

0.3 7800 15600 31200 46800 62400 78000Aver

age

Uni

t Cos

t

Additional Incremental Paper Sales

Incremental Revenue from Higher Paper Sales

Appendix

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Veterans: Incremental Increase in Readership

17086.38 1.00% 1.25% 2.50% 3.00% 4.00% 5.00% 6.00%1.00% 1709 2074 3903 4635 6098 7561 90241.25% 1770 2136 3965 4696 6159 7623 90862.50% 2077 2443 4272 5003 6466 7929 93933.00% 2200 2565 4394 5126 6589 8052 95154.00% 2445 2811 4640 5371 6835 8298 97615.00% 2691 3056 4885 5617 7080 8543 100066.00% 2936 3302 5131 5862 7326 8789 10252

Market Penetration from Veterans in City

Mar

ket P

enet

ratio

n fr

om V

eter

ans

Com

muti

ng in

to C

ity

Assumption: For every veteran commuting, there is one additional person interested in veteran issues, and for each person living in the city there are an additional three people that are interested

Appendix

Page 36: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Recommendations

Agenda Problem Agenda Agenda Agenda

Grants

Advertising

Donations

Increase Individual Donations

• Website enhancements

•Vendor stickers

• Literary contests

• Corporate gift matching

• Donor newsletter$38,360

Source: Donations calculated by Arch Consulting; see appendices

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results ImplementationAppendix

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Increase Donations, Further the Mission

Agenda Problem Agenda Agenda Agenda

Vendor Portfolio-Resume

-Donations-Writings-Blog

Vendor Stickers

Donor Newsletter Writing Contest

Increase traffic to vendor portfolios

Increase donor engagement and

demographic information

Increase reader engagement

Vender Portfolios-Resume

-Donations-Writings & blogs

Vendor StickersIncrease traffic to website

and vendor portfolios

Formalize Corporate Matching

Maximize corporate matching

Writing ContestIncrease reader engagements

Donor NewsletterIncrease donor

engagement and demographic information

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results ImplementationAppendix

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Recommendations

Agenda Problem Agenda Agenda Agenda

Grants

Advertising

Donations

Increase Advertising

• Intern advertising team

• New merchant focus

• Merchant redemption model

$11,346

Source: Advertising calculated by Arch Consulting; see appendices

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results ImplementationAppendixAppendix

Page 39: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

Recommendations

Agenda Problem Agenda Agenda Agenda

Grants

Advertising

Donations

Increase Grant Funding

• Corporate “cause” grants

• Government grants

Source: Grants examples included in appendices

Potential

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results ImplementationAppendix

Page 40: Daniel Bernard   Kirsten Miller   Amanda Signorelli   Jason  Yakabu

2013 2012 2011 2010 2009 2008 2007Support and RevenueSupportGrants and Contributions 225,299 194,767 174,636 154,545 113,140 115,684 107,104 Donated Goods and Services 44,118 38,069 32,849 28,345 24,459 12,326 6,815 Total Support 269,416 232,836 207,485 182,890 137,599 128,010 113,919

RevenueInterest Income - - - - - 41 112 Paper Sales 88,798 75,551 62,305 49,515 42,602 35,472 24,854 Subscriptions - - 2,315 2,480 2,390 2,475 3,050 Advertising Sales 29,637 23,344 17,050 15,893 11,786 15,564 12,871 Merchandise Sales - - - - 2 11 1,707 Total Revenue 118,435 98,895 81,670 67,888 56,780 53,563 42,594

Total Support and Revenue 387,852 331,731 289,154 250,778 194,379 181,573 156,513

ExpensesProgram Services 339,342 289,590 247,133 210,900 181,558 180,518 131,084 Supporting ServicesGeneral and Administration 23,047 20,547 18,047 15,547 17,342 11,417 17,194 Fundraising 14,544 12,044 9,544 7,044 7,805 11,997 7,127

Total Expenses 376,933 322,181 274,724 233,491 206,705 203,932 155,405

Change in Net Assets 10,919 9,550 14,431 17,287 (12,326) (22,359) 1,109

Net Assets, Beginning of Year 61,596 52,046 37,615 20,328 32,654 55,013 53,924 Net Assets, End of Year 72,515 61,596 52,046 37,615 20,328 32,654 55,033

All numbers were projected using CAGR for the period 2007-2010 and afterwards, where applicable, estimated numbers from other spreadsheets were supplemented.

Consolidated Income StatementIncome Statement

Agenda Problem Agenda Agenda Agenda

Potential

Problem Recommendations Financial Results ImplementationProblem Recommendations Financial Results ImplementationAppendix