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
British Council VietnamFestival WorkshopJune 2011
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
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?
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
c. Fundraising Capacity
• Past performance of funding undertaken – successes failures, trends• People, Resources, Management • Fundraising budget
British Council VietnamFestival WorkshopJune 2011
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?
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
c. Fundraising Capacity
• Past performance of funding undertaken – successes failures, trends• People, Resources, Management• Fundraising budget
British Council VietnamFestival WorkshopJune 2011
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?
British Council VietnamFestival WorkshopJune 2011
British Council VietnamFestival WorkshopJune 2011
Example Festival SWOT Analysis
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
• 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
British Council VietnamFestival WorkshopJune 2011
Key Strategiesa) Overall Directionb) Segmentation Strategyc) Tactical Plansd) Schedulinge) Monitoring and Control
3. Defining Strategy
British Council VietnamFestival WorkshopJune 2011
Market penetration
Activity development
Market development Diversification
a) Overall Direction
Existing
New
Existing New
Markets
British Council VietnamFestival WorkshopJune 2011
Individualsa) Demographics – age; gender; income
b) Geographicc) Psychographic – attitudes; values; lifestyle
b) Segmentation Strategy
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
Fundraising Schedule - Example Gantt Chart
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
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
British Council VietnamFestival WorkshopJune 2011
• Feedback on exercise• Considerations?• Concerns?
Sharing