Workshop 4 2 fei planning

Sponsorship and Fundraising Planning

British Council VietnamFestival WorkshopJune 2011

Festivals Funding Portfolio

Corporate PublicSector

Trusts & FoundationsIndividuals

Donors

Fundraising Planning Framework

Needs to answer 3 questions:

1. Where are we now? • Fundraising Audit

2. Where do we want to be?

• Sponsorship and Fundraising Objectives3. How are we going to get there?

• Strategies

• Tactical Plans



The Sponsorship and Fundraising Plan

1) Fundraising Audit: a review of the environment; market analysis and competitor benchmarking; information on where the synergies lie; who is likely to support activity and what level of funding is available

2) Fundraising and Sponsorship Objectives: define SMART objectives and setting of realistic income generation targets

3) Definition of the strategy and tactics to achieve these targets

1. Fundraising Audit

Where are we now? a. Analyse your competitorsb. Market factorsc. Fundraising Capacityd. SWOT Analysis


a. Analyse your Competitors

• Who are the direct competitors to my Festival?• Who are indirect competitors (activities/ events competing for

same audience)?• How much are customers paying for my competitors events -

more / less? • What makes my competitors successful and why? • What are they doing right?• How do my competitors position their events in the market?• What are my competitors major strengths and weaknesses?• How does this Festival differ from my competitor’s events? Its USP?


b. Market Factors

2. Market Factors• Who is financially supporting Festival? Consider each

segment (e.g. Corporate, Individual, Foundation)• Supporter motivations – why do

audiences/sponsors/donors support Festival?• Supporter behaviour – How much does each segment

give – longevity of support - reasons for terminating support


c. Fundraising Capacity

• Past performance of funding undertaken – successes failures, trends• People, Resources, Management • Fundraising budget


c. Fundraising CapacityPeople, Resources

• How many staff/volunteers are involved in fundraising?

• How much do your trustees contribute to fundraising for the organisation?

• What time do your staff and volunteers devote to fundraising?

• What skills and knowledge do your staff and volunteers have? Where are the gaps?


c. Fundraising CapacityManagement

• How integrated is the need to fundraise in the culture of your organisation?

• Is fundraising part of your strategic planning process?

• What limitations does your organisation have on the sources it can access?

• What procedures have you in place for receiving funding from a wide variety of sources


c. Fundraising Capacity

• Past performance of funding undertaken – successes failures, trends• People, Resources, Management• Fundraising budget


d. SWOT Analysis

• Tool to summarise audit data• Consider each supporter segment• Provides realistic objectives over planning period and

strategy tactic to be employed• Where are your funding gaps and risks?



Example Festival SWOT Analysis


Example SWOT Analysis – Beverley Festival Strengths Loyal audience Beverley - attractive location Longstanding history with good reputation Perceived to be good value by attenders Broad programming Recognised as a regional asset by ACE Increased revenue generation from Festival Village Few significant competitors in region

Weaknesses Lack of clear strategic vision Uncertain organisational governance Lack of marketing and fundraising strategies Festival is trading in a deficit and could be

considered insolvent No major performance venue Lack of maintenance of stakeholder relationships ‘Folkie’ fringe perceived as unsupportive Reliant on public funding for continued existence

Opportunities Take initiative to expand as there are no significant

competitors in region Relocation to larger green-field site of Beverley

Racecourse Increase audience attending whole weekend Green values attractive to wider target audience Broadening of programme (within folk-roots sector) Attracting key brand sponsorship Increasing revenue generation to be self sufficient Increasing in-house resource

Threats Public funding is withdrawn General economic downturn Audience rejects new initiatives Event is rained off Festival fails to gain appropriate licences Increased costs of security Advent of a major regional competitor Loss of venues Key personnel leave organisation


2. Sponsorship and Fundraising Objectives

Minimum Objectives

•The amount of funds that need to be raised

•The categories of supporters that will supply these funds (i.e. individual / corporate / foundation / individuals

•The acceptable cost of raising these funds


Set SMART Objectives

Specific: related to one aspect of fundraising activity

Measurable: specify quantifiable values wherever possible

Achievable: derived from analysis of audit

Relevant: consistent with objective of festival – supply the detail

Timely: clearly specify duration over which to be achieved


• To attract $10,000 income from individual donors by end of financial year

• To attract $125,000 of (cash) corporate sponsorship by end of March 2012

• To have a Festival title sponsorship for $50,000 agreed by January 2012

• To recruit 50 new Friends of the Festival by December 2011• To finalise $1 million endowment fund strategy by October 2011• To agree 30% reduction in hotel accommodation for performers by

February 2012

Example SMART Objectives


Key Strategiesa) Overall Directionb) Segmentation Strategyc) Tactical Plansd) Schedulinge) Monitoring and Control

3. Defining Strategy


Market penetration

Activity development

Market development Diversification

a) Overall Direction

Existing

New

Existing New

Markets


Individualsa) Demographics – age; gender; income

b) Geographicc) Psychographic – attitudes; values; lifestyle

b) Segmentation Strategy


Businessa. Demographic – industry type; company size; location

b. Characteristics – Customer profile matches Festival audience; positive reputation amongst consumers; Good employer

c. Approach – philanthropic or purely bottom line; current relationships; previous track record in sponsorship/donations

b) Segmentation Strategy


The Segments must be: i. Measurable – information about characteristics should exist

ii. Accessible – Approach to target segment should be cost effective

iii. Substantial - large volume (or small with high margins) for exploitation

iv. Stable –enable future development to be predicted

v. Appropriate – allied to Festival objectives

vi. Unique – Clearly distinguished e.g. corporate donor/sponsor; demographic differences such as age

vii. Sustainable –sponsor/donor long term relationship with Festival - affinity rather than product driven

b) Evaluating Segments


Case for Support• Bank of resources – collate:

– Mission statement– Specific Festival objectives– Outline of programmes– Governance structure financials statements– Festival history

• Understanding specific needs or expectations of sponsors and donors

• Case expressions– Use above resources to explain clearly the benefits the festival provides– why festival warrants support – highlight distinctiveness – tailor to likely interest of segments

3. Tactical Plans


Determining the Fundraising Budget:

a) Percentage of budgeted sponsorship and donations income

b) Competitor matching – ballpark benchmarking

c) What can be afforded

d) Allow for contingencies

3. Tactical Plans

TaskLead

Jan Feb Mar Apr Jun Jul Aug Sep Oct

Sponsorship

Research companies Mimi

Develop sponsorship package Tom

Write Sponsorship Proposal Tom

Sponsor follow-up Rachael

Individuals

Prepare Friends material Mimi

Send pack to database Friends Mimi

Telephone Friends Will

Foundations

Prepare project proposal Tom

Write Application for project Tom


Fundraising Schedule - Example Gantt Chart


Control Mechanismsa) the actual income achieved against budgetb) the actual cost incurred against those budgetedc) the performance of specific forms of the fundraising portfoliod) the appropriateness of strategy / tactics adopted

Monitoring and Control


Are you plugged into what’s happening in your sector?

You need to:• Know the national players • Be aware of current national developments

Without this knowledge, how can you know the best direction to take your festival?

Business opportunities are likely to be missed and lurking disasters may not be avoided.

A Thought for Festival Leaders on Survival


1. Review the DMIAF Proposal

2. Decide who ITS potential competitors are

3. Undertake a Competitor Analysis

4. Undertake a SWOT Analysis aiming for at least6 points in each section

Exercises


• Feedback on exercise• Considerations?• Concerns?

Sharing

Workshop 4 2 fei planning

Education

Transcript of Workshop 4 2 fei planning