PUBLIC RELATIONS PRACTICE

2014 Week 12

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DR KANE HOPKINS

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Fundraising & sponsorship

The exam

Volunteers

FUNDRAISING

FundraisingDefined as the purposive process of soliciting and accepting monetary gifts from individuals, corporations, and foundations by non-profit organisations having educational, medical, religious, political, charitable, or other stated purposes

Right now…• Kaibosh Food Rescue are raising $20000 for a van

to collect donated food • Auckland Art Gallery Foundation have committed

to raising $33.4 million to build an extension to the gallery

• Te Horo School are holding a high tea and Beerfest, as well as doing the 40 Hour Famine.

• Not forgetting all the fundraising that is going on for Christchurch

 Fundraising Institute of NZThe Fundraising Institute of New Zealand is the professional body for those employed in or involved with fundraising, sponsorship and events in the not-for-profit sector. They serve: • Organisations working to provide services and raise

funds in the charitable sector. • Fundraisers and volunteers employed to assist

charitable organisations to achieve their mission. • The public of New Zealand who donate funds and

obtain services from charitable organisations.

Social Exchange TheoryThis theory suggests that relationships are formed or not formed, maintained or discontinued, on the basis of constant cost-benefit analyses by the participants, and comparisons with alternatives such as other relationships or no relationships at all

For example: … if one person helps a friend, this friend will experience an obligation to reciprocate at some time in the future, offering a form of assistance that is equal in magnitude. If this norm of reciprocity is fulfilled, a trusting and loyal relationship evolves. !(Cropanzano & Mitchell, 2005)

Relationships are…• Give and take, but balance is not always equal • SET explains how we feel about a relationship with

another person as depending on our perceptions of: • The balance between what we put into the

relationship and what we get out of it. • The kind of relationship we deserve. • The chances of having a better relationship with

someone else.

Social Exchange Theory …• … should be taken as a frame of reference that

takes the movement of valued things (resources) through social process as its focus.

• … its scope is defined by an assumption that a resource will continue to flow only if there is a valued return contingent upon it.

• Psychologists call this contingent return reinforcement and economists simply call this reciprocally contingent flow exchange.

Types of Fundraising• Sponsorship • Corporate donations • Structured capital campaigns • Direct mail • Telephone solicitations • 0800 and 0900 numbers • Email • Commercial enterprises

IHC Fundraising 2010

Principles of successful fundraising

1. Don’t confuse budget and capital fundraising • Budget Fundraising

– Charges for services – Memberships – Donations from appeals

• Capital Fundraising – Large one off donations – Grants – Subsidies

Principles of successful fundraising2. Ensure that your appeals have

• An urgent specific need that provokes giving • A project that will meet that need • A logical and readily identifiable group of potential

donors • A nucleus of interested, influential volunteers who will

support the project from the start. Both time and money

3. Identify your givers • A captive group – members, parents • Natural partners • A community-wide group – a town, city or province

Principles of successful fundraising4. Be honest when selecting prospects

• Ask why someone would give • The total number of givers in any community is usually

no more than 10% of that community’s population 5. Never think you can use professional fundraisers

to do the asking for you • Outside collectors can never be as effective as those

with a genuine interest • Can impact on future fundraising

Principles of successful fundraising6. Make sure the campaign is well coordinated.

Four essential elements • Preparation of a complete plan • Organisation of groups selected and trained for

specific tasks • Education of everyone involved, askers and givers • Personal appeal to prospects asking for their

donation using direct mail or personal calls

Principles of successful fundraising7. Look for few and big donations

– Some people are able to give more than others and large donations inevitably come from those with substantial means

– Major donors should always be involved – any potential large donor should be included in the campaign planning

– The rule of thirds • One third of the donations come from the top 10 donors • One third of the donations come from the next 100 largest

donors • The final third come from every one else

Principles of successful fundraising8. Choose you askers carefully

• People who do the asking will have more influence on givers than your cause

- People from the same community or group - Must be qualified

9. Make the campaign fast and furious – Using direct mail or an 0900 number can achieve this

10. Don’t forget to ask for the donation • Awareness of the campaign is not enough • Asking remains the critical factor

Donors respond to a good cause

• Relevance – to contemporary public needs or problems. You must provoke significant personal interest and concern

• Importance – that ensures stand out quality amongst numerous appeals. You need your cause to rate higher than others

• Urgency – that precludes decisions making delays among potential donors. Try and create immediate action

What do donors want?• Prompt acknowledgment of their gift • Confirmation that their gifts have been used in the

way that was initially communicated to them • Sometimes between gift acknowledgement and

the next ask, measurable results of their gifts at work

Avoid these fundraising errors• Pretended you or the people involved know more

about fundraising that you actually do • Implement a poorly planned campaign, wrong

scheduling • Choosing the wrong leaders – a respected person

is better than a well known person • Poor targeting through not recognising your

natural and most likely givers • Dragging out a campaign

SPONSORSHIP

Sponsorship• Sponsorship is the purchase of the right to

associate the sponsor’s name, products or services with the sponsored organisation’s service, product or activity in return for negotiated benefits

Types of SponsorshipThere are basically three types of sponsorship 1. Those which are seen as an alternative form of

advertising 2. Low recognition funding of a true community

service or event 3. The sponsorship of special public events as

touring art shows

Things are getting serious

Major Events Management ActThe Major Events Management Act 2007 (MEMA) provides protection for major international events that are held in New Zealand and are declared to be major events. Its purpose is to:

– obtain the maximum benefits from the major event for New Zealanders

– prevent unauthorised commercial exploitation at the expense of either a major event organiser or an official sponsor of a major event

– ensure the smooth running of major events

Protection from Ambush MarketingSection 2.3.16The key protections in the MEMA for events that have been declared to be major events are prohibitions against:

– representations that create an unauthorised association between the event and a brand, good or service

– unauthorised advertising and street trading within declared 'clean' areas around major event venues and transport routes to venues.

Types and CharacteristicsType

Typical Association (image to be conveyed)

Predominant audience type

Typical audience size

Market-based reasons for sponsorship

Example

Entertainment Established  progressive

Par4cularly  dependant  on  genre  of  broadcas4ng

Mass  na4on  appeal

Market  penetra4on  media  cluster  fragmenta4on  evasion

ASB  Business,  Telecom/  Campbell  Live

Arts Excellence,  crea4vity  

Exclusive,  fairly  specific Niche

Niche  market  development,  posi4oning

Meridian  Energy/NZ  Ballet

SportDynamism,  vitality,  compe44ve

Youth  young  people

OLen  large,  some4mes  global

Interna4onal  market  development

Adidas/Abs,  America’s  Cup/Family  of  5

Social causesCaring,  socially  concerned,  good  corporate  ci4zen

OLen  community  based,  some4mes  regional,  local,  or  interna4onal

Variable

Corporate  image  development,  market  development,  reposi4oning

Westpac/Life  Educa4on  Trust

Key RequirementsBefore you enter into a sponsorship arrangement two key requirements need to be considered1. The relevance of the sponsorship to your particular

product2. The need to get full value from any investment

made

Arranging a Sponsor• Ask yourself these questions

• What benefits can we offer?• How can its name be promoted alongside ours?

• Consider the following• Can the companies logo be used on promo material,

posters, banners, giveaways• Can the company’s staff be involved?• Wold the program attract media coverage?• Can the program be called the XYZ Company Event

VOLUNTEERING

Volunteering

Clary & Snyder, 1999

All the kids are doing it• Individuals spend an average of four to five hours a

week as voluntary members in various community, religious, and arts organisations (Hooghe, 2003).

• Collectively, their activities create 5% of the gross domestic product (Salamon, 1995).

Volunteering in New Zealand• It is estimated 1,241,000 people volunteered in

2008 (34.0% of the population aged 10 years and over).

• 34.8% of Pacific People • 34.5% Pakeha, • 34% non NZ born Europeans, • 33.4% Asia • 33.2% Maori.

Volunteering in New Zealand• Volunteering in metropolitan areas has reached

34% in 2008, while in rural areas decreased for 5.9% to 34.3%. In 2008 34.3% of people from the provincial urban and 33.7% from the secondary rural areas volunteered.

• 37.8% of females were engaged in voluntary activating, comparing with 30% of males

THE

EXAM

THE EXAM