7 Ways to Kiss Fundraising Goodbye

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7 Ways to Kiss Fundraisi ng Goodbye ©Social Velocity

description

Nonprofit fundraising doesn't work anymore. Here's how to take a more strategic financing approach to create a sustainable financial model for your nonprofit.

Transcript of 7 Ways to Kiss Fundraising Goodbye

Page 1: 7 Ways to Kiss Fundraising Goodbye

7 Ways to Kiss

Fundraising Goodbye

©Social Velocity

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Fundraising doesn’t work anymore…

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Competition is Growing

More Organizations1.4 million nonprofits in US, up 19% since 1999More for-profit social change orgs

Less FundingPrivate donations level over last 30+ yearsGovernment spending cuts at every level

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But Financing brings your nonprofit sustainable funding…

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Financing is...A long-term strategy for bringing enough

money in the door to achieve your mission.

“How much should we raise to accomplish our goals?”

“How much can we accomplish with what we can raise?”

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Board, Staff,

Donors

Money Strategy

Infrastructure

Sustainability

Funding Sources

Programs

Messaging

Fundraising Vs. Financing

Worn out Excited, engaged

Annual, only programsLong-term, all costsInadequate Fully funded

Weak

Few

Strong

GrowingFlat or declining

Diverse, Robust

Community changeNonprofit’s need

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7 ways to move

from Fundraising

to Financing…

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Nonprofit’s Financial Engine

Nonprofit’s Core CompetenciesNonprofit’s Mission

1. Connect Money & Mission

Nonprofits will be most successful

in this sweet spot

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Create a financing plan that…Ties to your strategic plan

Encompasses 3-5 years

Includes revenue & capital goals

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RevenueOngoingSupports day-to-day BUYS services

Vs. CapitalOne timeSupports infrastructure, development, systemsBUILDS the nonprofit organization

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Raised $350K from 6 donorsNew database, websiteStaff & trainingMarket researchMarketing materials

ResultsDollars up $1.6 M (40%)Donors up 36% to 19K+

2. Raise Capacity Capital

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A board member can raise money by…

Advocating for government $Hosting a friend-raiserRecruiting an in-kind service

3. Involve EVERY Board Member

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A board member can raise money by…

Providing info on prospectsCreating an earned income business plan

3. Involve EVERY Board Member

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A board member can raise money by…

Advocating for government $Thanking a donorNegotiating a lower vendor price

3. Involve EVERY Board Member

And much more…

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Sources: Nonprofit Almanac and Giving USA

4. Diversify Funding

Sources of Nonprofit Sector Dollars

Don’t rely too much on a small piece of

the pie

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5. Calculate the Cost of Fundraising

Net RevenueTotal $ Raised − ALL Expenses

Cost to Raise $1.00ALL Expenses ÷ Net Revenue

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$20,000 EventNet Revenue

Income = $20,000Expenses = $15,000

Direct = $8,000 (venue, food, band)Indirect = $7,000 (staff & board time)

$20,000 − $15,000 = $5,000 Net Revenue

Cost to Raise $1$15,000 ÷ $5,000 = $3.00 CTR

It cost $3.00 to raise $1.00

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A donor invests in a nonprofit with shared values

The nonprofit translates that support into change to a social problem

Community change occurs

Your nonprofit is just an

intermediary

6. Message Impact

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The Message of Impact comes from a nonprofit’s

“Theory of Change”…

Inputs ($,

students, teachers,

staff, board)

Activities (read to students 2x per week)

Outputs (#

students, # hours, # of books given)

Outcomes (students

stay in school, do better in school,

graduate from school)

Impact (stronger schools,

safer streets, better

educated citizens)

Nonprofits usually

stop here

But this is where it

gets really compelling

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7. Move From Push…

Pull: Create messages and hope people act(Direct mail, press release, gala,

advertising…)

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…to PullPush: Create space for people to engage

(Social media, friend raisers, alliances…)

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In order to move from Fundraising

to Financing…1. Connect Money & Mission2. Raise Capacity Capital3. Involve Every Board Member4. Diversify Funding5. Calculate the Cost of Fundraising6. Message Impact7. Move from Push to Pull

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