2014 NPD There’s Gold in Them Thar Hills: Applying for-profit thinking to boost sponsorship and other revenue sources

There’s gold in them thar hills!Applying for-profit thinking to boost sponsorship and other revenue sources.

NATIONAL PHILANTHROPY DAY CONFERENCE

November 7, 2014

Greylock Associates NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

The Case for For-Profit Thinking

The Case for For-Profit Thinking NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014


“We have two rulebooks. We have one for the nonprofit sector and one for the rest of the economic world. It's an apartheid, and it discriminates against the [nonprofit] sector…”

“We have two rulebooks. We have one for the nonprofit sector and one for the rest of the economic world. It's an apartheid, and it discriminates against the [nonprofit] sector…”

“…we've all been taught that charities should spend as little as possible on overhead things like fundraising under the theory that, well, the less money you spend on fundraising, the more money there is available for the cause…”

Dan Palotta, TED Talk, February 2013


Nonprofit Starvation Cycle

“…nonprofits feel pressure to conform to funders’ unrealistic expectations…[and] nonprofits respond to this pressure in two ways: They spend too little on overhead, and they underreport their expenditures on tax forms and in fundraising materials. This underspending and underreporting in turn perpetuates funders’ unrealistic expectations. Over time, funders expect grantees to do more and more with less and less—a cycle that slowly starves nonprofits.”

Ann Goggins Gregory & Don HowardStamford Social Innovation ReviewFall 2009


NFP staffs are pressed for time and often lack functional experience.

“There is just not enough time to do the things I know we should we doing.”


Exigencies highjack strategic priorities. Non-profits executives face the challenge of how to grow.

“We need more people and resources.”


Have you ever heard anyone in the business world say, “We should be thinking like a nonprofit?”


Thinking like a for-profit can powerfully impact the bottom line and the ability of an organization to deliver its mission.


Thinking like a for-profit can powerfully impact the bottom line and the ability of an organization to deliver its mission.

Increased Nonprofit Capacity: The business art of making more out of existing resources so organizations can increase their mission impact.


A Case Study in Increasing Nonprofit Capacity: COSMETIC EXECUTIVE WOMEN

Three Pillars People: Achiever AwardsProduct: Beauty AwardsPhilanthropy: Holiday Luncheon and Auction



In five years: Over a three-fold increase in members and dues revenue

Sponsorship income grew to nearly 50% of all revenue and sponsor retention increased from 50% to 66%

Revenue and staff doubled



CEW applied for-profit tools and processes

… in growing membership

… in branding

… in attracting and retaining sponsors

… in planning events

… in uniting employees in common goals


Growing Membership Tools

Competitive Analyses

Consumer Research

Growing Membership NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

Businesses compete for share of market. Nonprofits compete for the hearts, the minds and the pocketbooks of donors and funders.


Tool: Competitive Analysis


CEWFragrance

Foundation FGI NYWICI AWNY

Mission Professional

development Innovation

Preeminent

authority

Women

empowerment

Women

empowerment

Members 1,300 N/A 5,000 3,500 1,700

Dues $125 N/A $175 $150 $100

Initiation Fees N/A N/A 75 50 N/A

Corporate Dues N/A based on $ sales N/A $1200 for ten N/A

Networking Events N/A Foundation TalksTastemaker

Series

Coffee and

Conversations

Accredited

Master Classes

Job Bank N/A N/A Free PostingsPassword

protectedFree Postings

Mentoring N/A N/A N/A Coaching N/A

Other benefitsPrinted

DirectoryN/A Trends Reports

Discounted city

benefits: spas,

zipcars, etc.

Special Interest

Groups

Competitive Analyses: Business Intelligence for Decision MakingIdentify new funders.

Learn how to integrate social media into marketing and fund development.

Compare Missions and branding.

Thieve and doctor innovative fundraising event concepts.

“There is no such thing as a new idea” –Mark Twain


Nonprofits should think of the constituents it serves as consumers and reach as many ‘consumers’ as possible with the ‘product’ that delivers the greatest impact.


Tool: “Consumer” Research(CEW Career Cycle)


Senior women

wanted to give back

Mid-level managers wanted to learn from senior women on how to get to the next step

Young Professionals wanted to meet women in other companies and build

their own networks

Consumer Research: Challenging Conventional WisdomWe think we know our “consumers.”

Capture the “blink”.

Step away from the mirror.

Data trumps gut.

Uncover misperceptions.

Distinguish your brand.


Rebranding

Rebranding NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014









Growing SponsorshipTools

The Quid Pro Quo of Sponsorship

The Sponsorship Food Chain

Expand the Portfolio of Sponsorship Opportunities

Your Board

Pro bono Sponsorships

A Good Customer Experience

Growing Sponsorship NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

Tool: The Quid Pro Quo of SponsorshipSponsors are business-to-business customers making purchase decisions. Companies sponsor or partner with causes that most efficiently achieve business goals.


CEW Sponsorship Benefits


Offer “Advertising impressions”4,000+ professional women in the beauty industry

1,000+ guests including industry leaders

High Frequency: Logo in invites, programs, on website

24/7 Business Resource Guide

One-on-one access to decision makersVIP receptions

Photos with VIPs

Strategic seating

Sponsor Dinner

Incentive to sample sponsorshipIntroductions to the board—no obligation caveat

Incentives to increase sponsorship

A position on the board

A seat on the dais

Speaking role

Larger logo/higher placement

More prominent table

Increased visibilityCategory Exclusivity

Continuous sponsorship reel

Goodie bags


Sponsors Beauty Executives Retailers Beauty Junkies

$$ $$ $$

Tool: Sponsorship Food Chain, or Following the Money Trail

Tool: Expand the Portfolio of Sponsorship Opportunities


CEW on-event sponsorship

Online “Beauty Insider” Newsletter

Job Bank

Member Directory

Website

Attracted sponsors from

Companies with smaller budgets

Companies impacted by exclusivity

New categories of companies; i.e. recruiters

Tool: Your Board

Influential Capital. Intellectual Capital. Financial Capital.

CEW board members made an annual commitment of $10K. The key was in the packaging.

From the board member or her company

• Cash… or in-kind

New sponsor

• Cash… or in-kind

Contribution to CEW or to Cancer and Careers (501)(c)(3)

• One or multiple year grants

• Personal or corporate gift


Tool: Pro Bono Sponsorship

A Quid Pro Quo: You save OOP expenses/They get visibility

Remnant space in trade magazines or local newspapers

Video production

Program printing

Public Relations for Cancer and Careers

Consulting Services


Tool: A Good Customer Experience

Axiom: It costs much less to retain a sponsor than to acquire a new one.

Sponsorship retention is an ongoing activity.

• Sweat the small stuff

• Make sponsors the priority

• Network on their behalf

• Informal one-on-ones with “the powers that be”

• Thank you Sponsor Dinner

• Right of first refusal

• Fulfillment Reports. Fulfillment Reports. Fulfillment Reports.


Optimizing Events Tools

A Great Customer Experience

Pricing Trade-off Analyses

Strategic Pricing

ROI Decision Making

Optimizing Events NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

Tool: A Good Customer ExperienceA great event generates buzz, increases attendance and sponsorship and creates a memorable and lasting impression of your brand. Bottom line: More Income.

It’s a captive audience. Innovate. Inspire.

• New venue, new format, new award, new honoree.

• Choreograph to the objective.

• Be single-minded: “Its the economy, stupid”

• Short powerful video “stories”.

Flawless Execution Counts (and you can serve chicken).

• Registration, check-in, name tags.

• Start on time. End on time.


Tool: Pricing Trade-off Analysis


Ticket Price $34,500 Revenue

$150 230 276 $41,400

$145 238 276 $40,020

$140 246 276 $38,640

$135 256 276 $37,260

$130 265 276 $35,880

$125 276 276 $34,500

Tickets Sold

+20%

Tool: Strategic PricingGoal: Maximize per seat margin


Table Traditional Movie Popcorn Real Estate

Platinum $10,000 $10,000 $9,500

Gold $7,500 $8,500 $8,500

Silver $5,000 $7,000 $6,975

Bronze $2,500 $5,000 $4,999

Tool: ROI Decision MakingLike businesses, think bottom line


Silent Live Online Fund A Need

Funds Raised 20,000 25,000 35,000 25,000

ExpensesAuctioneer 2,850 2,850 Catalog 1,400

Supplies 500 Hosting 5,250

Total Expenses 1,900 2,850 5,250 2,850

Fundraising less Expenses 18,100 22,150 29,750 22,150

Auction Type

Tool: ROI Decision MakingIncluding efficient use of limited staff


Silent Live Online Fund A Need

Funds Raised 20,000 25,000 35,000 25,000

ExpensesAuctioneer 2,850 2,850 Catalog 1,400

Supplies 500 Hosting 5,250

Total Expenses 1,900 2,850 5,250 2,850

Fundraising less Expenses 18,100 22,150 29,750 22,150

Staff Hours 160 114 240 40

at $45/hour 7,200 5,130 10,800 1,800

Net Income 10,900 17,020 18,950 20,350

as a % of fundraising 55% 68% 54% 81%

Auction Type

Thank you.

QUESTIONS?

Greylock Associates NATIONAL PHILANTHROPY DAY CONFERENCE November 7, 2014

Government & Nonprofit

2014 NPD There’s Gold in Them Thar Hills: Applying for-profit thinking to boost sponsorship and other revenue sources