emPower: Course 2012
Module 19
Marketing and Fundraising
Day I
Lecturer:
Thomas Witte
Marketing and Fundraising Module
Objectives
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Understanding of marketing (NPO vs. PO)
Understanding the fundraisingmarket (e.g. In CH)?
Understand the fundamental essence of fundraising
Know the role of fundraising in an organisation like PCF
Know about the attitude of different target groups
Know the basic instruments of fundraising
Understand how to become a succesful fundraiser
What's Marketing?
Marketing is the process of communicating the value of a
product or service to customers. It is the overall strategy
and function of promoting a product or service to the
customer.
It's about selling!
Discussion in Groups of 4-5:
What do NPO's like PCF sell? To whom?
Marketing NPO vs PO (I)
 Profit-oriented organisation (PO): marketing entirely
geared towards sales market;
 Strict separation between PR and marketing desirable
because of different objectives;
 PR suggests balance of interests between company and
environment;
 Marketing geared towards sales result – product
advertisement as chief means of PR.
It's about profit maximization!
Marketing NPO vs PO (II)
 Non-profit-organisation (NPO): success on supply market is
crucial!
 Requires activities within the organisation (members, staff)
and in the service area (beneficiaries, target groups) 
balancing act!
 NPO: balance marketing!
 Marketing and PR are closely linked.
It's about benefit maximization!
Marketing NPO vs PO (III)
 Definition of marketing according to the Fribourg
Management-Model (FMM):
„Management of crucial exchange processes within a NPO.“
 Strict separation between PR and marketing is not desirable
in the NPO sector.
 Department within NPO is often called
„Marketing & Communications“
Marketing NPO vs PO (IV)
According to the FMM PR serve two functions:
- PR as a communication instrument that accompanies
marketing activities
(e.g. fundraising);
- PR as a separate marketing activity aimed at increasing
acceptance of and confidence in the concerns of the NPO.
Discussion: Why is PR extremly important for NPO?
Marketing NPO vs PO (V)
In addition to the four classic marketing Ps (Product,
Promotion, Price, Place), NPO marketing is characterised by
two additional Ps:
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Politics: Political action / making an impact
(Communicating the organisation‘s ideal)
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People: donation incentive
(e.g.: What does the donor receive in exchange for his
contribution?)
Question: what might be motivations to donate?
Some Motivations to donate
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Religion
Good Feeling
Image
To make a Difference
Personal Experience
Tax Deductions
What is fundraising?
 All systematic, targeted and planned measures to help procure
monetary and non-monetary resources, and services for NonProfit-Organisations (NPO);
 Sub-section of NPO Marketing;
 „Fundraising is the gentle art of teaching the joy of giving“.
(Hank Rosso, Institute for Philanthropy, Indiana USA)
Fundraising – Organisational approach
Your Organisation needs to have:
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Vision;
Strategy;
Mission Statement;
Positioning;
Image;
Brand awareness;
Marketing hierarchy in a Non-Profit-Organisation
Statutes
Strategy
Ideals
of the organisation
Marketing
concept
Marketing
analysis
Marketing
objectives
Marketing
strategy
Positioning
Marketing
mix
Product
(Programme)
Price
Place
Fundraising
Promotion
Public Relations
People
Service
marketing
Politics
Organization chart PCF
Executive
Director
Administration
International
Programmes
Programmes
Switzerland
MarCom incl.
Fundraising
The donor market in Switzerland
 Saturated market – increasing numbers of
international NPO‘s – cutthroat competition;
 Donation volume 2010: ca. 3 Milliard CHF
 Donation from Individuals: ca. 1,25 Milliard CHF
 Average donation per household: CHF 694. Donation from companies: ca. 0,8 - 1 Milliard CHF
 Donation from foundations: ca. 1 - 1,5 Milliard CHF
The donor market in Switzerland
 69 % of all households in Switzerland donated 2010
 74 % women; 64 % men
 86 % over 64 years old; 47 % up to 34 years old
 85 % with income more than CHF 8‘000.-;
46 % with income up to CHF 4‘000. 77 % with higher formation; 55 % with low formation
 CHF 786.- in the german part of Switzerland;
CHF 403.- in the french part of Switzerland
The donor market in Switzerland
Reasons to spend 2010:
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78 % are convinced of the cause and of the organisation
67 % out of solidarity with others
36 % believe that one day they need it too
35 % out of pity
17 % out of dismay in their social network
9 % know people working for organisations
9 % own dismay
5 % because government is not acting properly
4 % out of religious reasons
The donor market in Switzerland
Reasons not to spend:
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42 % because of own financial situation
25 % because of missing trust in organsations
9% say they do not get any support themselves
7 % because they are in-training
4 % give to relatives directly
3 % have no interest
3 % argue that the money is used improperly
The donor market in Switzerland
Whatfor do people spend:
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56 % for the fight against diseases;
56 % for the handicapped;
50 % for children;
43 % for animals;
43 % emergency aid in Switzerland;
42 % against the hunger in the world;
40 % for development aid;
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38 % for the nature;
36 % for the Swiss mountaineers;
35 % emerceny aid overseas;
34 % for the poor in the world;
31 % for the human rights;
31 % for the refugees;
29 % for old people;
21 % for prevention of drugs;
What is Fundraising?
Definition Fundraising
 Fundraising is according to Urselmann
the systematic analysis, planning, implementation and
controlling of all activities of a non-profit-organisation,
which have as a objective to raise all the resources
(money, benefits in kind and services) needed to fulfill
the charter of a Non-Profit-Organisation through a consequent orientation to the needs of the provider of the
resources without any material reward.
What is Fundraising?
Formation in Fundraising Management
Organisation:
 Basics Management;
 Customs Relationship Mangagement (CRM);
 Ethics and Data Security;
 Project Management;
 Quality Management;
 Organisational Developement;
 Accounting.
What is Fundraising?
Communication and Strategy
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Marketing,
Public Relations,
Analysis of Market and Stakeholders,
Complaint Management,
Trend-Scouting
What is Fundraising
Fundraising Instruments
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Face-to-face-Fundraising (Street, Door-to-door)
Direct Marketing
Dialogue-Marketing
Telemarketing
E-Marketing
On-/Offline-Campaigning
Events
Cause-related Fundraising (Companies, Foundations)
Relationship Fundraising (Personal ask)
Database Management (Define Target Groups)
Donor Pyramid (sophisticated)
Donors Pyramide (PCF)
High Donor
Goodparenthood
Members
Regular Donors
Firsttimedonors
Interested
Suisse Public
Financial Engagement
Intensity of Relationship
Legate
Major Donor
Fundamental Requirements
to a sucessful fundraising
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High degree of brand awareness;
Good Image;
Confidence;
Good products = Projects, which are beloved from donors;
Serious work on all levels;
Linkage Communication – Fundraising;
People who act as Door openers;
Good Results in the projects which are easy to describe;
Fundamental fundraising rules
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Do not assume
Research is the beginning of the game
Always seek dialogue
Ensure transparency
(confidence, use of donations, be honest, give all
informations)
 Fundraising never ends with the money:
Show results; impact makes the difference
The challenges for NPO‘s in Switzerland
 Integrated fundraising (in line with PR and other
communication instruments)
 Cost-efficient fundraising
 More direct and innovative appeals to target groups
 More efficient choice of target groups
 New media (internet, sms, facebook, twitter, etc.)
 increasing professionalism on both sides (NPO & Donors)
Question: What are the challenges to FR in your Country?
Ken Burnett's 29 Fundamental Rules
1. People give to people. Not to organisations, mission
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statements, or strategies.
Fundraising is not about money. It’s about necessary work that
urgently needs doing. Money is the means to an end.
Fundraisers need to be able to see things through their donors’
eyes. Or, to put themselves in their donors’ shoes.
Fundraisers need to really understand their donors. If they are
to understand you, you must first understand them.
It helps if you are a donor yourself. No one should be a
fundraiser without first being a donor.
6. Friend-making comes before fundraising. Fundraising is not
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selling. Fundraisers and donors are on the same side.
Fundraising is about needs as well as achievements. People
applaud achievement, but will give to meet a need.
Fundraisers need to learn how to harness the simple power of
emotion. Fundraising has to appeal first to the emotions. Logic
can then reinforce the appeal.
Offer a clear, direct proposition people can relate to. For
example, ‘make a blind man see. £10.00’.
First open their hearts and minds. Then you can open their
wallets.
11. Don’t just ask people to give. Inspire them to give. Fundraising
is the inspiration business.
12. Share your problems as well as your successes with your
donors. Honesty and openness are usually prized more highly
than expert opinion and apparent infallibility.
13. Bring the need close to the donor. To help this idea stick I was
taught the adage ‘One needy old person next door equals ten
needy old people in Manchester equals 100 needy old people
in Maharashtra.’ (Of course I was living in London at the time. If
you live in India, then it would be the other way round).
14. You don’t get if you don’t ask. Know whom to ask, how much to
ask for, and when.
15. Present your organisation’s ‘brand’ image clearly and
consistently. It’ll pay you if your donors can readily distinguish
your cause from all the others.
16. Successful fundraising involves storytelling. Fundraisers have
great stories to tell and need to tell them with pace and passion
so as to inspire action.
17. Great fundraising is sharing. Share your goals and encourage
full involvement. When donors become truly involved in your
campaign, great things happen. Share your problems too, as
well as your successes.
18. Always try to turn complaints into support. The most loyal donor
is the donor who has complained and has then been
satisfactorily responded to.
19. The trustworthiness of a fundraiser and his/her organisation is a
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reason both to start and to continue support. Trust appears to
increase in importance, as people get older.
Great fundraising requires imagination. Too much fundraising
looks like everything else.21. Great fundraising is getting
great results. If your results are mediocre, your fundraising
probably is too.
Always be honest, open and truthful with your donors. Donors
will not forgive you if you are less than straight with them.
Avoid waste. Donors hate waste.
Technique must never be allowed to obscure sincerity. As all
actors know, you can’t fake sincerity.
25. Fundraisers have to learn to talk to their donors where they are,
not where the fundraiser might want them to be.
26. Fundraisers and donors have a relationship of shared
conviction. This is much more important than their shared
commercial interest.
27. Great fundraising means being ‘15 minutes ahead’. To keep
just a little bit ahead you have to learn to spot opportunities and
take (careful) risks.
28. Fundraisers should learn the lessons of history and experience.
Anyone who would be an effective fundraiser needs first to do
some homework.
29. Always say ‘thank you’, properly and often. And accurately (few
things are less forgivable than thanking a donor for something
he or she hasn't done). It’s also a good idea to be brilliant at
saying ‘welcome!’.
Homework
Quick Fundraising-Market-Analysis of your Country using the
Internet
 Try to find out the size of your national FR-Market
 Try to find out the dimension of Giving by Individuals,
Foundations and Companies in your Country
 Who are Competitors to your Organisation on your national
or regional FR-Market – are they in the same Sector
(Education) or in different ones?
emPower: Course 2012
Module 19
Marketing and Fundraising
Day II
Lecturer:
Thomas Witte
The fundraising action plan
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Analysis;
Fundraising objectives;
Fundraising segments (target groups);
Exchange processes (what do you need from the
progamme-staff, what do they need from you);
Positioning of action (which PR channels do you use);
Fundraising mix (6 P‘s);
Organisation (who has to be involved in Project
Management);
Budget;
Controlling.
Fundraising objectives
 Direct objectives
(Volume of overall donations, target volume for individual
and institutional donations);
 Indirect objectives
(increase of donor base, raising awareness about the
organisation‘s objectives);
 Basic action
(market penetration, market extension, diversification)
Fundraising objectives
 Cognitive objectives:
Who has to know what about us and till when?
 Image objectives:
How do we want to be seen? How do we want to present
ourselves?
 Action objectives:
What do we want the target groups to do?
How and till when?
Fundraising segments
 Individuals
(Donors, Major/High Donors, Legacies);
 Corporations
(Corporate giving, Sponsoring);
 Foundations;
 Public Donors / Authorities
(Confederation, Cantons, Municipalities).
Fundraising Mix
 Core message as fundraising product / offer (Product)
 Communication instruments / vehicle / booster
(Promotion);
 Category of donation (Price);
 Distribution / Contact potential (Place);
 Aspects of donation incentive (People);
 Political action / Support (Politics).
Controlling
 Financial results;
 Cost / Benefit;
 Donor fidelity (RFM: recency, frequency, monetary value);
 Degree of popularity;
 Image.
Group Work of 4-5 Students:
Fundraing Action Plan
 Choose one of your Organisations; choose one Project
that needs to be funded; use the available Information
about the national/local Fundraising-Market and the
aspects of planning Fundraising Actions mentioned
before:
 To create a Fundraising Action Plan to find funding for the
project that fit's for the given context (i.e. FundraingMarket)
Form: Präsentation at Flip-Chart
Example of Application-Form
http://www.ramsayfoundation.ch/pdf/Gesuchsformular-en.doc
Some emotional Fundraising
6 Core-Emotions are driving Donors to act/give:
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Happyness
Surprise
Anger
Disgust
Sadness
Fear
Some emotional Fundraising
Watch Fiona
http://www.youtube.com/watch?v=YJkZXh9v_i4
Individual work
 Write down a short Fundraising Letter to ask Individuals to
support one of your organisations project.
 Tell a story of a beneficiary of your project work (your
allowed to use fiona‘s story as a blueprint):
 What‘s the problem?
 How can it be solved?
 What Difference can the donor make if he‘s giving you
financial support?
 Ask for a donation!
Präsentation: Read the letter
Thank you very much für your attention!
Feel free to contact me for questions concerning Marketing
and Fundraising:
t.witte@pestalozzi.co