THE END OF
FUNDRAISINGHOW TO RAISE MORE BY SELLING YOUR
IMPACT
© 2010 Mission Measurement, LLC.
2
WHY SO HIGH?
$0
$5
$10
$15
$20
$25
Obama McCain Corporations Nonprofits
Cost Per $100 Raised
© 2010 Mission Measurement, LLC.
3
WE HAVE NO LEVERAGE
© 2010 Mission Measurement, LLC.
4
SUPPLY & DEMAND ARE DISCONNECTED
Donors
Nonprofits
Beneficiaries
Impact
Buyers
value
© 2010 Mission Measurement, LLC.
5
BUT THERE’S HOPE
© 2010 Mission Measurement, LLC.
6
SOCIAL CAPITAL MARKET
Programs valued more than
results
Relationship-driven fundraising
The market values social
outcomes
Impact buyers act like
consumers to purchase results
Yesterday: Independent Sector Today: Social Capital Market
© 2010 Mission Measurement, LLC.
7
MOMENT OF GRAND IRONY…
"There are no market forces, there are no
competitors to take market share away, there are
no customers that are going to shop someplace
else...creating this kind of protected zone for
philanthropy."
Tom Tierney, chairman and cofounder of the Bridgespan Group
© 2010 Mission Measurement, LLC.
8
FOCUS ON VALUE CREATION
Economic Value
Strategic Philanthropy
Affinity-based appeal to
individuals & foundations
High-Value Outcomes
Evidence-based appeal to
impact buyers
Charity
Emotional appeal to
individuals
Business Income
Unrelated corporate
(cause) marketing
So
cia
l V
alu
eL
ow
Hig
h
Low HighEconomic Value
© 2010 Mission Measurement, LLC.
9
THE FORMULA
Capture
Your Impact
Market
Your Impact
Sell
Your Impact
Engage
stakeholders
and define
your
outcomes
Identify the
“impact
buyers” who
value those
outcomes
Build your
business case
and show
your value
proposition
© 2010 Mission Measurement, LLC.
10
A NEW SET OF STAKEHOLDERS…
Beneficiaries
Board
DonorsGovernment
Foundations
Independent Sector:
Philanthropists
Corporate Partners
Beneficiaries that can pay
Social Investors
Service Providers
Upstream “Consumers”
Social Capital Market:
Impact Buyers
Psychic
BenefitEconomic
Value
© 2010 Mission Measurement, LLC.
11
RONALD MCDONALD HOUSE CHARITIES
Hospitals
Owner/Operators
McDonald’s
Corporation
RMHC Chapters
Donors
Children & Families
Suppliers
Grantees
© 2010 Mission Measurement, LLC.
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IMPACT BUYERS: SOCIAL INVESTOR
SOCIAL INVESTOR- - - - - - - - - - - - - -
An outcomes-driven funder who has allocated a specified amount of
funding specifically to "purchase " a specific set of results.
© 2010 Mission Measurement, LLC.
13
IMPACT BUYERS: BENEFICIARY THAT CAN PAY
BENEFICIARY THAT CAN PAY- - - - - - - - - - - - - -
An individual or organization who consumes your products or services
and is able to pay for benefits received.
© 2010 Mission Measurement, LLC.
14
IMPACT BUYERS: SERVICE PROVIDER
SERVICE PROVIDER- - - - - - - - - - - - - -
An organization that relies on your outcomes to enhance its service
offering or achieve its own business objectives.
© 2010 Mission Measurement, LLC.
15
IMPACT BUYERS: UPSTREAM CONSUMERS
UPSTREAM CONSUMER- - - - - - - - - - - - - -
An individual or organization that relies on social outcomes produced
earlier in the value chain to generate desired outcomes or income.
© 2010 Mission Measurement, LLC.
16
IMPACT BUYERS: CORPORATE PARTNER
CORPORATE PARTNER- - - - - - - - - - - - - -
Companies that require certain social change in order to create direct
economic value for the business.
© 2010 Mission Measurement, LLC.
17
IT’S NOT ABOUT YOU, IT’S ABOUT THEM
OUR NEED TO SELL THEIR NEED TO BUY
© 2010 Mission Measurement, LLC.
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THE 7 IMMUTABLE LAWS OF SELLING YOUR IMPACT
1. Go through the front door, not the back door.
2. Always use value pricing, not cost-plus
3. Know your customer (and speak their language).
4. Sell painkillers, not vitamins.
5. Sell outcomes, not programs.
6. Don’t oversell.
7. Don’t waste time on idiosyncratic funders.
© 2010 Mission Measurement, LLC.
19
A NEW BUSINESS CASE…
Name their Pain
Explain your Remedy
Show your Proof
Prescribe the Future
What does this stakeholder care about? What is the “big win” for this stakeholder? What is their “need to buy”?
How can you solve their problem? How does your program align with their needs? What value do we add or how does this monetize?
Why should the stakeholder believe you? What is your track record of success?
How can this stakeholder partner with you? What are the next steps? How can you innovate to make this win-win?
© 2010 Mission Measurement, LLC.
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WHAT YOU CAN DO NOW
1
2
Socialize the concept
Know your outcomes
3
Focus on strengths