ROI and True Sustainability: The Key to Increasing Your ... · The Key to Increasing Your Funding...
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ROI and True Sustainability: The Key to Increasing Your Funding August 2019
Transcript of ROI and True Sustainability: The Key to Increasing Your ... · The Key to Increasing Your Funding...
ROI and True Sustainability:The Key to Increasing Your Funding
August 2019
Andy CoePrincipal, Convergent Nonprofit Solutions
Personally responsible for thousands of investment requests; more than $60 million raised for organizations that are positively impacting local, regional, national, and international communities
Involved in successful fundraising efforts in eighteen states spanning the country from Florida to Washington
Frequent conference speaker and author on topics related to economic and workforce development fundraising
Alumni, Leadership Cary (NC) Chamber of Commerce (2013) North Carolina Director, Southern Economic Development
Council Board of Directors (2015-2017) Past board member and marketing/fundraising liaison, Virgin
Islands Montessori School (St. Thomas) BA in Marketing and MBA from the University of South Florida
| Who We Are|
| Thought Leaders Since 2007 |
| Convergent Overview & Experience |
our clientswe serve a wide variety of nonprofits
| Convergent Overview & Experience |
Convergent Nonprofit Solutionsis the Go-To Fundraising Firm in North Carolina
Here are just some of the North Carolina nonprofits that have chosen Convergent for their fundraising needs:
1. Kay Yow Cancer Fund (Raleigh)
2. Gardner-Webb University (Boiling Springs)
3. Arapahoe Charter School (Arapahoe)
4. Scotland Memorial Hospital (Laurinburg)
5. North Carolina Chamber of Commerce (Raleigh)
6. Economic Development Partnership of NC (Cary)
7. Vance Charter School (Henderson)
8. Jacksonville-Onslow Economic Development (Jacksonville)
9. Southern Wake Academy (Holly Springs)
10. Club Nova Community, Inc. (Carrboro)
11. Inter-Faith Council for Social Services (Carrboro)
12. Burke Development, Inc. (Morganton)
13. Statesville Regional Development (Statesville)
14. Roxboro Community School (Roxboro)
15. Alamance County Area Chamber of Commerce (Burlington)
16. Greater Wilmington Chamber (Wilmington)
17. Greater Raleigh Chamber (Raleigh)
18. Rowan County Economic Development (Salisbury)
19. Anderson Area YMCA (Anderson)
20. YMCA of the Sandhills (Fayetteville)
21. Jacksonville Onslow Economic Development (Jacksonville)
22. Sanford Area Growth Alliance (Sanford)
23. YMCA of Catawba Valley (Hickory)
24. Pitt County Committee of 100 (Greenville)
25. Alamance County Area Chamber of Commerce (Burlington)
26. Wilmington Community Boys & Girls Club (Wilmington)
| Our Core Values |
We offer comprehensive
campaign management to minimize the burden on staff
Our professional presentations/asks minimize the burden on volunteers
We will supplement emotional appeals with a strong rational case for investment
We will position your organization as a community asset,
demonstrating ROI and value proposition
We have a unique approach to fundraising.
Comprehensive Campaign
Management
Professional Presentations
Position Program as
Good Investment
Demonstrate Value
Proposition & ROI
| Our Approach|
The Convergent Difference
Can minimize burden of staff via comprehensive hands on management
Can minimize burden on board/volunteers via professional solicitations
Emphasis on Outcomes/ROI
Flexibility & Customization
Local knowledge & presence
Great reputation & happy clients
Accountability. Outcomes. Impact.
Convergent Nonprofit Solutions helps nonprofits raise the money needed to produce the outcomes funders value.
| Why We’re Different|
| Our Fundraising Philosophy |
| Asking Rights|
Compelling MissionCompelling Need &
Sense of UrgencyEffective Plan to Meet the Need
Organizational Effectiveness &
Fundraising Strength
Constituency has Adequate Financial
Resources
Potential Campaign Leaders
are Available, Interested, & Committed
Feasibility Study
• Develop Draft Plan
• Obtain Input and Feedback (50+ interviews)
• Position Campaign for Success
Campaign: Quiet Phase• Project/Plan of Work
Refinement
• Campaign Collaterals Development
• Potential Investor Evaluations
• Leadership Recruitment
• Major Investor Solicitations
Campaign: Public Phase
• Kick-Off Event
• General Solicitations
• Celebrate Victory!
step-by-step path to success
| Our Process|
|What About You?|
Apply for grant with outcomes
determined by application
Deliver the program
Operations produces required report
Pray for funding to be
renewed
|The Old Way of Thinking|
Outcomes = Activity
Grants + Lots of Donors = Success!
|A New Approach|
|Survey Says…|
AFP’s Fundraising Effectiveness Project findings:
• Overall growth in giving dropped 80% in 2018
• Giving by individuals declined 1.1% in 2018
The good news:
• Giving by foundations up 7.3%
• Giving by corporations up 5.4%
Number of donors is down (5.7% in
first quarter 2019) …
fewer donors means increased reliance on bigger gifts (investments)
|Three Key Concepts|
The Investor’s perspective
- Investors are different
Identifying your most fundable Outcomes
- Emotional vs. Rational
Outcomes are more impactful
- Investable OutcomesTM /ROI
|Why Do You Give?|
The following is most likely to cause
most people surveyed to invest $25 in
a nonprofit:
A. A cause with which you identify 55%
B. Being asked by someone you know 38%
7% did not respond
|Why Do You Give?|
The following is most likely to cause
most people surveyed to invest $500
in a nonprofit:
A. A cause with which you identify 64%
B. Being asked by someone you know 27%
8% did not respond
|Why Do You Give?|
The following is most likely to cause
most people surveyed to invest in a
nonprofit overall:
A. A nonprofit that you identify with, but
are not sure they are delivering valuable
results 25%
B. A nonprofit that you do not identify with,
but are confident they are delivering
valuable results 73%
2% did not respond
1. Cause trumps personal
channel (even more so as
amounts goes up)
2. Results trump cause
|The Bottom Line|
“If your organization doesn’t demonstrate its value to investors, they’ll fund an organization that does.”
|Donors vs. Investors|
How investors think can be
summed up by the following:
If you can't demonstrate results (outcomes),
then you don't have the right to ask for money.
If you can't make your outcomes meaningfulto me, then you don't have the right
to ask me for money.
|Donors vs. Investors|
The ability to deliver
outcomes that are
valuable to investors
TM
| Asking Rights™|
| Asking Rights™|
Earning the right to ask
for big dollars
Ingredients Common
to Success
Credibility
Fundraising Skills
Outcomes
The Recipe1.Discovering Investor Motivations
2. Translating Your Outcomes to Value
3.Matching Your Value to Investor Motivations
4.Using Campaign Dynamics to Maximize
Funding
| Asking Rights™|
|Investor Motivation|
Giving Money to a Nonprofit
|Investor Motivation|
No information is better than
good information
Want the warm glow
Tug at the heartstrings
Sick beats healthy
Sense of urgency appeals
|Emotional Decision|
Does not ignore fundamental
fundraising processes: cultivation,
enlistment, etc.
An alternative to tugging heartstrings
Larger the ask, the better it works
|Rational Decision|
Buying a Car
Emotional
Decision
Rational
Decision
Does Your Perspective
Change?
• There are people who buy
based on color or cuteness
•There are people who buy
based on price, horsepower,
miles per gallon, value
Giving Money to a Nonprofit
A spectrum is better way of looking at it
Emotional
Decision
Rational
Decision
Universe of Appeals
Outcomes/ROI are directly
correlated to funding
|Identifying Your Outcomes|
Your outcomes are
ultimately why
people invest in
nonprofits.
|Why Outcomes Matter|
|Why Outcomes Matter|
They will move you here
I. Provide value to investors
II. Make the value easy to see
III. Get investment from those that benefit
Put another way: You must provide your investors with investable outcomes
| The Three Musts |
An outcome that:o Has a reasonable chance of succeeding
o Has an acceptable “return”
o Can be translated into a value
You will raise more money if results are expected and outcomes are defined
| Outcomes|
|Outcome Example|
|Valuation Techniques|
Present value of future benefits
Cost savings
Opportunity costs
Net present value of the project
Multiplier effects
Positive benefits enhanced
Negative costs reduced or eliminated
Delivery efficiencies
The ubiquitous economic impact
|Valuation Techniques|
Look at it three ways:
Can I identify direct benefits?
Can I present value those
benefits?
Can I ripple the impacts?
(Example from Alamance County, NC – Population 140,000)
FIVE-YEAR CAMPAIGN GOALS
Number of New Primary Jobs 1,500
Primary Wage Rate Paid (hourly) $29.58
Calculated Indirect Jobs Created 890
Calculated Indirect Wage Rate Paid (hourly) $21.52
Total Payroll $128,565,989
Net Personal Consumption Expenditures $71,066,523
Deposit Potential for Area Financial Institutions $11,109,215
Groceries $5,685,321
Apartment Rents $5,116,790
Electricity $2,060,929
Natural Gas $568,532
New Car & Truck Sales $4,619,324
Medical Services $6,395,985
Restaurants $3,766,526
Mortgage Payments $7,888,384
| ROI Methodology |
| ROI Methodology |
18%
27%
15%
19%
21%
18%
27%
15%
19%
21%
$6,038,232
$2,010,200
$3,774,400
$1,495,000
$10,000,000
$1,744,000
$1,683,900
$1,298,300
$2,815,000
$1,709,450
$708,000
$3,200,000
$1,501,500
$1,600,000
$705,133
$8,800,000
$825,000
$1,062,500
$850,000
$2,000,000
$590,554
$450,000
$0 $2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000
Gainesville, FL
Burlington, IA
Greenwood, SC
Goldsboro, NC
Chattanooga, TN
Burlington, NC
Elmira, NY
Freemont, OH
Henderson, KY
Ithaca, NY
Pittsboro, NC
Previous Campaign Convergent's Campaign
| ROI Difference |
| Case Study: Hospice of South Texas |
20,000 square feet, 12-bed,
in-patient facility
Raised over $4.15 million in first 12 months
Current pledge total is $9.2 million
| Case Study: Hospice of South Texas |
Areas of Value from our Return on Investment brief:
Your Investable Outcomes:
A Reality Check
Your Investable Outcomes:
A Reality Check
Your Investable Outcomes:
A Reality Check
Your Investable Outcomes:
A Reality Check
Your Investable Outcomes:
A Reality Check
| Now What?|
Reality Check Results
Which of the sections needed the most attention for your organization to succeed in its funding efforts?
Are these areas easily improved or is a major overhaul necessary?
Things to Remember if Nothing Else:
Not everyone has Asking Rights.
They are earned, not given just because you’re a nonprofit.
Everyone is capable of developing Asking Rights.
It just takes effort and an organization-wide commitment.
There is more to Asking Rights than just
asking for money.
Even though the IRS says you can ask people for money, it does
not mean you will be successful at it.
Things to Remember if Nothing Else:
Those that have Asking Rights make their value obvious.
These organizations stand apart and will have a smoother
road to sustainable funding.
It’s more about the right outcomes being valued than how
the value is determined.
It’s not how good your aim is, but whether you’re aiming
at the right target.
An investor’s motivations are different from a donor’s.
Ignore this at your own peril!
Thank You!questions and answers
Cabarrus County Nonprofit Workshop
Andy Coe, Principal
Convergent Nonprofit Solutions
904.307.3633
in/andymcoe @andymcoe
Contact information:
