Trends in Philanthropy

August 30, 2011 Leave a comment

Philanthropy UK published an article about trends in philanthropy which got me thinking about how many of these trends were being recognised and, more importantly, acted upon by charities. 

So first of all, what are the trends?

1. Private wealth is increasing – The number of wealthy individuals, particularly those who are self-made, has increased.

2. A new type of donor is emerging, altering the giving landscape – Donors are younger, self-made and socially conscious.  They want to be engaged, use their expertise and take risks.

 3. More people are giving during their lifetime – They want to experience the joy of giving.  More people are talking publicly about their giving, providing role models to new givers.

4. Views on the amount of wealth parents should pass on to their children are changing – More individuals are choosing to give much of their wealth ‘back to society’.

5. Givers increasingly want to see the impact of their donations – long term outcomes and not just outputs.

6. More donors are giving together – ‘giving circles’ such as The Funding Network, as well as funding vehicles such as ARK and the Private Equity Foundation.

7. Innovation in charity financing is growing – Venture philanthropy, loans and grants for charities and charitable banks are enabling social investors to help disadvantaged communities achieve sustainable economic growth.

8. There is a growing range of charitable services that help donors to give effectively – Helping donors to take a more informed and strategic approach to giving. Meanwhile, private banks are expanding philanthropy services to high net-worth clients.

9. Information flows are improving – Publicly available information on charities is more readily available to donors and potential donors.

10. Individual giving is becoming increasingly important to third sector organisations – Private individuals provide charities with unrestricted, sustainable income, playing a critical role in maintaining the independence of the voluntary sector.

So what does this mean for charities and social enterprises?  Well, to begin with, organisations need to review the way they communicate the messages about their brand to make sure that it appeals to this new audience.  That doesn’t mean that you should alienate your existing donors but is there potential to develop new income sources and if so, will you be in a position to do this effectively with your current donor communications.  If you want to engage with new, younger donors, you may need to consider different methods and approaches to fundraising.  That doesn’t mean throwing out what’s already working well for you but is about adapting to take advantage of changes.

Be flexible.  Be creative.  Think about how you can communicate with this new audience.  Do you have existing networks – such as board members, staff or volunteers – who can help you reach these high net worth individuals.  Do you need to adapt your donor communications strategy to include social media?

It is also worth considering whether your organisation and the work that you carry out could be funded differently.  Many organisations have lost significant levels of public funding – either by losing public grants or contracts.  Can you look to these new trends in philanthropy to help you bridge the gap?  Perhaps it’s worth considering a grant or a loan to invest in a new project that will generate income for you in the longer term – effectively enabling you to pay off the loan in the future.  Charitable banks and social loans can help organisations to achieve positive outcomes where traditional grants won’t necessarily provide the same level of support.

Donors are increasingly sophisticated.  They want to engage with causes that they believe in and to make a difference – not just through their financial investments but through their personal involvement.  They want to work with organisations that are forward thinking, take a creative approach to achieving their aims, and who have a vision and values that they believe in.  Wealthy individuals have the power to make a sustainable difference to society both now and in the future.  Where once public funding was the answer, in these lean times, charities and social enterprises need to develop to take advantage of the new trends in philanthropy.

Is your organisation ready to adapt to the changes in the funding landscape?

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Good fundraising advice

August 9, 2011 Leave a comment

Over the summer I’ve been more than a little bit quiet on this blog.  Mainly because I’ve been juggling childcare and managing clients rather than because I’ve been sunning myself on a long relaxing holiday I should add.

However, I have managed to read the occasional blog post from others and there are a few that I thought worth a mention.  The ever informative SOFII blog as been a mine of useful info (as usual) and I found Damian O’Broin’s post particularly interesting.  In it he provides a checklist of 12 key points to consider that will help to supercharge your fundraising appeals.  As we come out of the summer you might be considering your own fundraising appeals for the autumn (and of course, the pre-Christmas period – sorry, I shouldn’t mention the C word this early in the year, I know).  If you are about to launch a new appeal or write out to your donors, it’s well worth a read.

And of course, if you’re interested in finding a rich source of information without having to plough through various searches on the internet, you can visit Beth’s Blog, which has a great article on sourcing curated articles (i.e. someone else has done the research for you, which I have to say, appeals hugely particularly given my current lack of time resources!).  Beth has added a list of her favourite curated lists using Scoop.It with posts that non-profits might find useful – from crowdsourcing to storytelling; non-profits to using Facebook.  Definitely a good read if you’ve a spare 15 minutes and a cup of tea.

Back to SOFII and there’s another great piece about dabbling in fundraising  by Christiana Stergiou- and why dabbling just doesn’t work.  I’m often asked by people to fundraise for them in some of the circumstances outlined in this post and I always stress the need for a fundraising plan; the need to recognise that fundraising is a long-term, relationship building activity and not about quick wins; and the need to see fundraising as part of the overall fundraising mix and not just a panic, knee jerk reaction to filling an income void.  For these reasons I this post is well worth a read – if nothing else as it gives some good advice on what to do and what not when considering fundraising.

These are just a few of the good posts that I’ve managed to pick up over the summer – in between short bursts of working and refereeing the sibling squabbles in the house.  Let me know what you think of these and if there are any other posts that you think would be of interest to non-profits.

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Sharper Marketing & Fundraising

March 11, 2011 1 Comment

Do you want to reach more people with your marketing and fundraising messages?  Or perhaps you want to refocus your organisation to target new donors or to reach new customers and clients?

Many of my clients are small organisations who don’t have the resources to employ huge fundraising teams and want to develop skills to enable them to plan and implement their own strategic approach to successful fundraising and marketing. 

With that in mind, Activate Fundraising and Strategy Point  have developed Sharper Marketing & Fundraising – a new, cost-effective programme to give organisations the tools and advice to develop their own marketing and fundraising strategies.  This puts organisations in the position where they gain the skills in-house and can tailor a strategy precisely to their needs – all with our hands-on support, of course. 

What’s more, Skills Development Scotland is currently offering 50% of the costs of training up to a maximum of £500 per person between now and 30 June, so there’s potential to get the programme at an even lower rate for the next couple of months.

So, if you’re a smaller charity or arts organisation based in central Scotland and would like to develop skills that will enable you to make a long-term difference to your organisation, please get in touch to find out more.

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Free Fundraising Makeover

December 10, 2010 1 Comment

The economic situation has changed fundraising for a huge number of organisations – some who didn’t fundraise before are now considering it to help boost their funding as other sources have dwindled (or been dramatically cut).  Others with a history of fundraising are finding it increasingly difficult now that there is greater competition for funds and budgets of donors have become  more restricted.

Or at least that’s the anecdotal evidence – but what about your organisation?  Has fundraising become easier, more difficult or pretty much remained the same? 

We’re carrying out a survey (it’s very short and won’t take more than 5 minutes – honest) to find out how fundraising has changed in recent months – if at all.  As an incentive, all of those taking part will be entered into a prize draw to win a free fundraising audit for their organisation.  And, even if you don’t win, all respondents will receive a copy of the results which will help to establish whether you’re on track or need to do more compared to others.

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Fundraising and the Recession

November 30, 2010 Leave a comment

There’s no denying that the economic climate has made fundraising difficult – and this appears to have been due to a number of factors.  Some organisations have found their earned income has declined dramatically and are trying to fill the gap with fundraising; others have found that, as more organisations start to fundraise, competition for funds has increased; and of course, many of the donors and sponsors have either reduced or stopped providing funding. 

I’m interested to find out how the recession has impacted on organisations – so please complete our short fundraising survey.  Not only will this help us to determine what information organisations need to help their fundraising but everyone who takes part will receive a summary report on the results, helping them to adapt their fundraising ideas and needs according to the current market.  And there’s also a chance to win a free fundraising audit for your organisation – it’s a win win situation!  Please take 5 minutes to complete the survey.

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Is Your Board On Board?

November 15, 2010 Leave a comment

So you’ve decided to fundraise but the Board still aren’t convinced that it’s worth it?  How do you get them behind you? 

Fundraising is a long game.  There aren’t any quick wins but often it’s seen as the way to earn a fast buck.  It isn’t and you need to spell this out to your board.  Fundraising is about relationship building and that doesn’t happen overnight.  Often a board member – or other staff in your organisation – will see you working for months for very little return.  What they don’t see is that with every event, every meeting, every phone call, you’re building relationships and networks, getting your organisation’s name out there and helping to make people understand your organisation when there may have been no awareness before. 

It’s difficult to quantify this and, as a result, board members often feel that it’s not worth the effort.  But you have to speculate to accumulate for most things and fundraising is no different. 

You can’t expect it to be cost free either.  Now I’m not suggesting that you break the bank to try to raise your target but you will need to make some investment in fundraising, even if it’s only the cost of the time of the person doing the fundraising whether that’s an employee, a freelance fundraiser or a fundraising consultancy. 

If you are having trouble convincing your board, set out clear objectives (preferably SMART – specific, measurable, achievable, realistic and time bound) which they can see you making tangible progress against.  You should factor in: 

  • How much you need and what it will fund
  • How you will raise the money e.g from trusts, companies, individuals – and how you are going to do this e.g. direct mail,
  • The timeframe you hope to do this in,
  • How many people you expect to meet,
  • How many approaches you intend to make,
  • How many proposals you will submit and so on – and you can’t expect all of them to pay off.  You may need to make approaches to twice as many prospects as those who finally end up becoming donors – and this is a conservative estimate.  It could be many more. 

 However, once you’ve started to grow your fundraising, you will have a base of donors who will not only convince others that you are a worthy cause simply by their association, but who will introduce you to their peers, lend their weight to appeals and, ultimately, continue to support your organisation over the years, provided you continue to deliver the goods and look after your donors.

Are you having difficulty convincing others in your organisation that fundraising is a worthwhile investment?  Or have you managed to overcome their concerns?

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Fundraising – where do I start?

November 12, 2010 Leave a comment

For many organisations, fundraising is an area that they’ve either never exploited or only dabbled in but, particularly with the current squeeze on resources due to the recession, senior managers and trustees are starting to recognise the need to increase their funding from different areas.  However, a mistake that’s often made is simply to look at the shortfall in your income and assume that it can be filled by fundraising.  Sometimes it can but often, you need to think more creatively about your approach. 

Operational or core costs are difficult to raise through fundraising and sponsorship (although not impossible) so how can you incorporate them into an interesting, value adding project?  Or can you divert some project funds into core and raise funds for some of your activity instead?  You may suddenly need to find a £10,000 shortfall but you can’t assume that you can automatically change one type of funding for another. 

  • Look at all your programmes. 
  • Is there something in there that may appeal more to a donor? 
  • Is there an aspect of work that is entrepreneurial, will increase capacity for your organisation or help you to reach more people or meet a problem in a different way?

Perhaps it’s these areas that you should try to find funding for.  

What have you found to be effective when planning your fundraising?

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Different sector experience can help fundraisers see the bigger picture

November 10, 2010 Leave a comment

I often find that there is an assumption that if you’ve worked in one sector, the skills are not transferable to another – and this isn’t necessarily the case.  The principles of major gift, individual or trust fundraising are the same in an environmental charity as they are in an arts organisation.  The organisational structure may be different, the projects will vary and the donors may be different (although not necessarily) but the methods employed to encourage donations tend to be the same. 

You still need to be clear about what you want funding for, how much you need and what it will be used for.  You will need to make a robust case for support that captures the imagination of donors, demonstrates why you are the best organisation to deliver your particular project and helps your project stand out from the rest of the applications. 

Often, it helps if someone does come in from another sector, casting a fresh eye on your approach to fundraising (or marketing or governance) bringing with them new ideas that are equally applicable to your organisation and sector as they have been to another but perhaps have never been tried in your sector before. 

I worked with a marketing consultant on a fundraising and marketing strategy for an arts client.  The marketing consultant had never worked with a not-for-profit or in the arts before so the client initially started out with concerns that he would not be able to understand their marketing needs. However, the result was a marketing strategy that got them thinking differently, encouraged their creativity and saw them employing new ideas to engage with audiences. 

At the end of the day, employing a fundraiser or bringing in a consultant is the decision of the organisation but don’t narrow your field of choices simply because they haven’t gained their experience in your particular field.  Chances are if they’ve been successful in one sector, they’re likely to be successful in yours.

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The Kitchen Table Entrepreneur

November 8, 2010 Leave a comment

I’ve just realised that I am officially (and literally) a kitchen table entrepreneur – mainly because, after working for a few months in the home office, I began to slowly migrate to the kitchen one book at a time.  First of all, I’d use the kitchen table when I needed more space, using it to spread out books when I was writing or review reports, proposals and strategy documents I’d prepared by laying them out across the table, red pen at the ready. 

Before I knew it, my laptop, books, phone and stationery had all set up permanent residence at one end of the table.  My takeover was complete when I bought a shelving unit for the kitchen which has storage for all my work things. 

However, fed up with shuffling things away at the end of every working day, I’ve finally bitten the bullet and ordered a fold-away desk from IKEA that will fit into the kitchen-diner so my laptop can stay there for good. 

I’m still not sure that I will completely manage to wrestle myself away from the large, solid, kitchen table though.  We’ve become rather attached over the past two years.  It’s large enough to spread out all of my work things and has a view of the garden – which is perfect when I need space to think. 

Perhaps the new desk can wait a bit longer…

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Fundraising as a Career

November 5, 2010 Leave a comment

Out of all the careers you could choose, why would you choose fundraising?  The hours can be long; donors can be demanding; targets can be tough to reach; and potential donors can often say no.

On the other hand, you will have the opportunity to work with people from across your organisation to develop and deliver projects; you can use your creativity to solve problems, craft proposals and ‘make the ask’; you will gain a vast amount of skills – from event management to proposal writing, negotiating to data management – and everything in between.  No two days are ever the same and you have the chance to meet some truly fascinating people – from those who work in different areas of your particular organisation, to your volunteers and donors who come from a range of backgrounds and experiences.

I originally set out to work in arts administration (after finally admitting to myself that I was never going to be an actress!).  My first ever experience of fundraising was being asked to write an application to the Esmée Fairbairn Foundation (or Charitable Trust as it was then) to help the touring theatre company I worked for equip their new accommodation.  It was 1994 and when they sent the cheque for £12,000 it was my first taste of fundraising success! 

I then had various arts administration jobs, where I also dealt with trust applications and sponsorship alongside everything else.  It wasn’t until 1996, when I landed a job in a post-1992 university Development Office, that fundraising became the main element of my work. 

It was a very different landscape to now.  While most of the older, more established universities had been fundraising for some time, the post ‘92’s were playing catch up.  And internally, we were very much seen as a novelty by many of our academic colleagues.  One of the offices I worked in was funded by top slicing all of the departmental budgets to be able to afford to set up our department.  Needless to say, we  had to work hard to get our colleagues on board and it wouldn’t be a lie to say that was a difficult task – although we did achieve it in the end (due in no small part to raising our campaign target two years ahead of schedule). 

Fast forward 14 years and it’s a very different situation with universities young and old having Development Offices focused on proactively engaging with a range of high net worth individuals, trusts and the corporate sector. 

On a personal level, I’ve moved from fundraising being one of a number of tasks, to it being the main focus of my career, as I now work as a fundraising consultant.  But I’m glad that I made the move into fundraising and that I followed my particular career path.  Working a variety of organisations, large and small, has meant that I understand where many clients, particularly those without fundraising staff, are coming from and how best they can resource their fundraising to sustain their future income generation.

Do you think you would like to become a fundraiser?  What’s stopping you?  Or have you been a fundraiser and decided to move into a different field?  If so, how has your experience helped you to do that?

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