myths about finding wealth
TRANSCRIPT
MYTHS ABOUT FINDING WEALTH 29 FEBRUARY 2016
PROGRAMME
Myth busting
Making a good case
Finding Wealth
Tools for Campaigns
Making the Ask
Any Questions?
Summary
MYTHS ABOUT MAJOR GIFTS
MYTH BUSTING
Our cause is too difficult to secure major gifts
We don’t have enough connections
Prospect research is essential to success
It takes a long time to secure major gifts
There’s a ‘proper’ way to do major giving
It’s up to volunteers to ask for gifts
It’s all about schmoozing
MAKING A GOOD CASE
WHERE DO YOU START?
Why?Case for Support
Who?Audience
How much? Monitor and
Evaluate
How?Making theAsk
Redmond Mullin’s Fundraising Cycle, 1987
THE IMPACT PARADIGM
Products, services and facilities that result
from an organisation’s or project’s activities
Changes, benefits, learning or other effects
that result from what the project or
organisation makes, offers or provides
Broader or longer-term effects of a project’s
or organisation’s outputs, outcomes or
activities
Output
Outcome
Impact
WHAT CHANGES?
Number of visitors to a museum exhibition
and number of educational visits by schools
Visitors increase knowledge about local
history and gain pride in local area.
Others improve local economy
Enhanced identity increases tolerance.
More visitors come to local area.
Wider economy grows.
Output
Outcome
Impact
FINDING WEALTH
COUTTS MILLION POUND DONORS
REPORT 2015
Up by 2% in 2014 (from 292 to 298 gifts)
Overall value rose by £200m, from £1.36bn to£1.56bn.
The number of million pound donations in the UK in 2014 continued to rise from the low point of the 2007 financial crisis.
Most gifts less than £2m, the number of grants over £10m doubled to ten in 2014.
COUTTS MILLION POUND DONORS REPORT
2015A total of 243 recipients received the 298 donations, although 29 organisations received more than one.
Total - £1.56bn - 298 gifts of £1m+Foundations Higher Education Health International [1]Overseas [2] Human servicesArts, culture & humanities ReligiousEnvironment & animals Education (not universities) Public & societal benefit
£565m£485m£125m
£97m£66m£45m£45m£41m£39m£27m£27m
86 gifts65 gifts28 gifts25 gifts22 gifts19 gifts23 gifts
8 gifts8 gifts9 gifts4 gifts
SIX DEGREES OF SEPARATION
Everyone knows someone
Kevin Bacon, 6.6 and 30bn Microsoft messages
Who knows the Queen?
Contact mapping – what to record?
TARGETING YOUR BEST PROSPECTS
Wealth Warmth Access Success
WE helps you to identify your best donors and gives you the insights you need to understand what drives their decisions. WE has unique data that takes the guesswork out of fundraising. And that means you can engage the people most likely to donate so that you don’t waste time on the ones who won’t.
WE SERVICES FOR CHARITIES
FindWealth Online
Circle of Friends/Inner Circle
Database screening
Donor segmentation and analysis
Training and implementation
Research and profile individuals in the UK and US
Unique analysis returns information from multiple data sources
Match summary provides an overview including Estimated Giving Capacity and Propensity to Give
Comprehensive profiles of assets, income and business information as well as philanthropic and giving history
Circle of Friends
FIND WEALTH ONLINEKNOW MORE ABOUT YOUR PROSPECTS THAN EVER BEFORE
Using their Circle of Friends, WE can find matches with your Inner Circle to identify those with deeper relationships to your target audience.You’ll be able to immediately use these relationships in your prospecting, marketing and engagement campaigns.
CIRCLE OF FRIENDSYOUR INNER CIRCLE
Wealth scores and ratings - identify, segment and prioritize donors and prospects with the right attributes based on propensity to give, charitable giving and more.
RFM score – use your giving history as a proxy for affinity
SCREEN YOUR DATABASEUNCOVER HIDDEN POTENTIAL IN YOUR DATABASE
DONOR SEGMENTATION ANDANALYSIS
Quickly analyze and segment your database through your screening results
Find your best mid-value prospects and legacy prospects as well as your major donor prospects
Get more ROI from your fundraising programmes as a result of more accurate targeting of individuals for specific campaigns
Build a roadmap for next steps
SCREENING STATISTICS
About 50% of this typical file could give >£12,500
GIVING TRENDS
0
1
2
3
4
6
5
7
8
9
£0
£5,000
£10,000
£15,000
£20,000
£25,000
Average of Total Gift Amt* Average of Total No. Gifts
EGC by Giving History
Estimated GivingCapacity
Average of Largest Gift Amt
SEGMENTATION RESULTS: DONORS
£25K+ £5k+ <£5K
VH
Angels True Believers LoyalistH
M High Touch Foundational Givers
PyramidBase
LWish List
Donors are screened by the RFM scores and Estimated Giving CapacityThey are then rank ordered and placed into 7 segments
Estimated Giving Capacity
RFM
Sco
res
Tota
l
TOOLS FOR CAMPAIGNS
CAPITAL CAMPAIGN MODELLING
BREAKING DOWN A CAMPAIGN
Target Gift No.
approaches
No.
Funders
Total
income
Prospects
£200,000 4 1 £200,000
£50,000 8 2 £100,000
£10,000 20 5 £50,000
£5,000 20 5 £25,000
£1,000 100 25 £25,000
Total 152 37 £400,000
WHAT ABOUT REVENUE CASES?
Impact, not budget line items
Who does the asking?
Blended finance – diversifying income streams
That’s the plan – how do you ask?
MAKING THE ASK
WHY DON’T PEOPLE ASK?
Fear of looking desperate or like we’re begging
Fear of our being exposed for lack of knowledge
Fear of not being the best person to ask
Fear of rejection
There’s always something more immediate that needs our attention
Spending too much time on prospect research
WHY DO PEOPLE GIVE?
Your impact matches their reasons to give
To do something that interests them
The benefits that they will receive
To be seen to be giving
Timing
Duty
Because they are asked
FIRST RULE OF FUNDRAISING
If you don’t ask you don’t get
Link the ‘What’ with the ‘Who’
Who asks? When do they ask?
Remember, ‘People give to people’
Daniel Kahneman and Amos Tversky’s work published in 2011
Changed thinking about thinking
Introduced two ways of how the brain works
Deals with heuristics –cognitive biases that we don’t realise are there
SCIENCE OFASKING
Avoid too many choices
Don’t fight how the brain is going to work
Keep it simple
Use stories
LAZY BRAIN DILEMMA
ANCHORING
Would you be willing to
•
•
•
donate to save 50,000 offshore Pacific Coast seabirds from small offshore oil spills?
pay $5 to save 50,000 offshore Pacific Coast seabirds from small offshore oil spills?
pay $400 to save 50,000 offshore Pacific Coast seabirds from small offshore oil spills?
Average with no anchor- $64
Average with low anchor –$20
Average with high anchor –$143
Pitch it right
ANCHORING
FOMO: Fear Of Missing Out
Driver of social media and estate agents
Offer limited naming opportunities
Introduce urgency
SCARCITY VALUE HEURISTIC
Early adopters –Bystander
Finishers – Social proof
Know what motivates your donors
SOCIAL PROOF VS BYSTANDER EFFECT
Sharing gifts is part of human nature
Sharing gifts is more important than relative gift sizes
A thoughtful offer can result in a high value gift
RECIPROCITY PRINCIPLE
WHO’S ON YOUR TEAM?
Fundraising team
Fundraising volunteers
Board of trustees
Senior management team including CEO
Staff team
Volunteers
Supporters
USE BE TO COACH THEM
Thinking about Behavioural Economics helps you be more donor-centric
It’s less about recruiting supporters to your charity, and more about finding people with shared visions
Excellent fundraising organisations share their fundraising
ANY QUESTIONS?
SUMMARY
IN CONCLUSION
A compelling case for support changes everything
Major giving is mainly about people, but data can help you find them
Flexibility is more important than fixed plans
Fundraising can be easy, but it’s also very easy to get it wrong
FURTHER INFO/CONTACT DETAILS
Marcelle Jansen
+44 203 318 4835
Leanne McNulty
020 7566 3690
NCVO champions the voluntary sector and volunteer movement to create a better society.
We connect, represent and support over 11,500 voluntary sector member organisations, from the smallest community groups to the largest charities.
This helps our members and their millions of volunteers make the biggest difference to the causes they believe in.
• Search for NCVO membership
• Visit www.ncvo.org.uk/join
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