Daniel Bernard Kirsten Miller Amanda Signorelli Jason Yakabu
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Transcript of 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
Agenda• Problem• Recommendations• Donations• Advertising• Grants
• Financial Results• Implementation
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
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
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
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
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
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
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)
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Potential Merchants for Advertising
policy initiatives, politicians,
theatre, conferences
organic product, local banks, construction,
cafe
housing, events,
bookstores, fellow aid
centers
Appendix
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
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
Events Calendar
Appendix
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
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
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
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 $/Issue
Com
misi
on
Perc
enta
ge
1,250$ 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
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
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
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
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
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
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
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