nfp state of the nation on fundraising - blackbaud...building a culture of philanthropy across your...
TRANSCRIPT
NFP State of the Nation on Fundraising
Scott Lockie - CEO Australian Charity Guide and emPOWER Your MissionTuesday 4th August, 11am AEST
And before anyone asks...
02
03
● I may look like him.
● I may sound like him.
● But I’m not one of the Proclaimers!
● And I won’t be singing “500 Miles”!
Scott Lockie - CEO Australian Charity Guide & emPOWER Your Mission. A bit about me….
02
03
● Most of my career in the Corporate sector (Media & Sales):○ Sensis (White Pages Call Centres Manager) ○ Fairfax Media (Channel Sales Manager Features and
Classifieds)● 10 years ago set up Australian Charity Guide website -
connect donors, clients, corporates and volunteers with Australian Charities/NFP’s
● Worked for 7 years in NFP sector as a National Call Centre and Fundraising Manager - looked after Raffles, Events, Grants, Bequests, Appeals and even Clothing Bins!
Scott Lockie - CEO Australian Charity Guide & emPOWER Your Mission. A bit about me….
02
03
● 3 years ago set up emPOWER Your Mission (training arm of the Australian Charity Guide):○ We’ve run over 70 NFP seminars, workshops, webinars and
boot camps ○ Upskilled over 970 charities across Australia/NZ○ Training sessions focus on domestic and global NFP trends,
marketing, fundraising, technology, digital & stewardship ● I speak with Charities every day and understand the latest
trends, challenges, risks and opportunities for your organisation
What topics will we cover today?….
02
03
● The latest trends, risks, challenges and opportunities within the NFP sector, including the impact of COVID-19
● How the latest technology is assisting charities with their Fundraising, Marketing and Donor Stewardship
Firstly, a Snapshot of the current state of the NFP Sector, plus the key Trends, Challenges, Risks and Focus Areas
03
Australian Charity Sector – Topline Numbers...
02
03
● Topline numbers: ○ 58,193 charities (2.1 per 1,000 Australians) - 50 new ones each week○ Income $155b (up $9b on previous year (6%), due to Govt funding) ○ Donations and bequests are worth $10.5b (around 7% of the total pie) -
around 40% of Australian Charities have DGR status○ Small (<$250k) 66%, Medium ($250k-$1m) 16%, Large (>$1m) 18% ○ 1.3m staff (10% of Australian workforce) - 2nd highest employment sector
in Australia (50% of charities have no paid staff)○ 3.7m volunteers up 12% (80% of charities engage volunteers)○ Only 34% of charities have an online presence (website, social media)○ It’s one of the most competitive sectors in Australia (8.3% of GDP)
● Subsequently, this has implications for your organisation – funding, donations, staff, volunteers, corporate partners, grants
Australian Charity Sector – Topline Numbers...
02
03
● Top 3 activities within the NFP sector are: ○ Religion 30%○ Education and Research 20%○ Social Services 10%
● Charity income comes from:○ 47% Government Grants – greater reliance by larger charities○ 46% from sales of goods and services/member fees/fee for service○ 7% donations & bequests – greater reliance by smaller charities
● Average charity income/revenue per annum is $2.64m● The 50 largest charities account for 34% of the sector’s revenue● Average assets is $5.25m● Average charity would last 18 months if all funding taps were turned off● Charities have $323b in assets, two-thirds of which are in property● 8% of charities operated overseas - India, Philippines, NZ, Indonesia
02
03
Australian Charity Sector – Charity Size...
02
03
Australian Charity Sector – Staff...
Number of Charities in NZ...
02
03
Number of Charities per 1,000 People
02
03
NZ Charity Sector – Topline Numbers...
02
03
Topline numbers:
○ 27,513 charities (1 for every 180 New Zealanders) - highest density of charities in the world
○ Sector income around $19b, expenditure around $17b○ Assets across the sector $60b (45% in property)○ Donations are worth around $4b, around 21% of total income○ Around 130,000 people work full time in the NFP sector, 5% of total
workforce○ 230,000 people volunteer every week, doing on average 6 hours per
week
NZ Charity Sector – Biggest Charity Categories...
02
03
Top NFP sectors in NZ● Education 34%● Health 19%● Religious 10%● Social Services 6%● People with disabilities 6%● Other 25%
Top 4 NFP’s in NZ● The University of Auckland● University of Otago● Massey University● Victoria University of Wellington
NZ Charity Sector – Income Generation...
02
03
● Self Generated (Service and Trading) 49%
● Koha/Donations 21%● Grants and other funding 17%● Other 13%
Key Trends for Charities to Understand
Key Trends for Charities/NFP’s to Understand...● Charity saturation
○ 58,193 charities and 50 new ones in Australia every week○ Need for brand and service differentiation:
■ What is your USP? Why should someone use or support your NFP?
■ How do you make your cause stand out? ■ Do you offer innovative, cutting-edge services?
● Rise in Visual Marketing○ Focus on improving engagement and support via storytelling and
video – Facebook Live, YouTube, LinkedIn, Instagram, TikTok, Twitter
Key Trends for Charities/NFP’s to Understand...● Generational giving trends
○ Rise of sporadic, opportunity donors, who give to single causes, not multiple
○ Younger generations are giving less and seeking experiential engagement, which is sporadic and on their terms
○ Types of causes people want to support is changing:■ Gen Z and Millennials are passionate about Environmental causes■ Gen X it’s Human Rights causes
○ The traditional, dependable, regular donor pool is shrinking○ Giving is declining due to: rising cost of living, slow wage growth,
increasing house prices, COVID-19 (forecast to drop 20%)
How the Different Generations Like to Make an Impact...
Key Trends for Charities/NFP’s to Understand...● The power of Influencer Marketing
○ Identify and engage advocates/social influencers passionate about your cause (ambassadors)
● Increased use of mobile to connect with donors○ SMS/Text Giving○ Integrated payment buttons to donate on platforms such as YouTube
and Facebook ● Return to authenticity and personal contact
○ Social Media has created a lot of white noise. Hard to get cut through
○ Differentiate your organisation by phoning your donors. People give to people, not bricks and mortar
Key Challenges Facing Charities/NFP’s
Key Challenges Facing Charities/NFP’s...● Proactive Board Recruitment
○ Charities are struggling to recruit and retain dependable Board members who can also fundraise
○ Identify and target Millennials (1977-1995) and Gen X (1965-1976)● Engaging Millennial and Gen Z/Centennial donors
○ Adopt the right strategy by utilising technology, using relevant communication channels
○ Provide hands-on engagement opportunities○ Assess and develop your Millennial and Gen Z pipeline
● Building a culture of Philanthropy across your entire organisation○ Everyone is now a fundraiser. Get rid of the silos within your organisation○ Empower your staff, supporters and Board Members to be advocates for your
mission
Key Challenges Facing Charities/NFP’s...● Changing from “cost” focused to “outcomes/impact” focused
○ NFP or Nonprofit is a misnomer. NFP’s are about positive social impact
○ Shift your organisation’s focus and marketing messages from keeping costs down, to highlighting your impact, long term goals, sustainability and achievements
○ Invest in IT, training and recruiting staff with 21st century skills. Get Board onboard!
● Diversification of revenue streams○ Generate revenue from government, individuals, corporates and social enterprises
○ Charities need to be innovative, commercially focused, adaptable and agile and be able to pivot quickly (COVID-19) to seize opportunities and ride out economic downturns
● Increased transparency - net assets, liquidity, programme costs, goals and impact○ Today’s supporters are savvy and expect real-time info about impact
Biggest Risks Facing Charities
Biggest Risks Facing Charities in 2020...● Risks facing charities:
○ COVID-19 and global recession - JB Were predict giving in Australia will fall 7.1% in 2020 and 11.9% in 2021
○ Saturated market and increased competition○ Lack of focus on diversifying income streams○ Recruitment - inability to attract and retain staff and Board Members with
21st century skills and commercial acumen○ Decreased funding from corporates, Govt and individuals○ Impact of Government changes (NDIS in Australia) ○ Reputational risk (brand equity) e.g. Anglicare in Penrith○ Data protection and Cyber/Internet crime ○ Inability to embrace technology and innovation
Key Focus Areas for Charities in 2020
12 Focus Areas to Future Proof Your NFP...
Key Focus Areas for Charities in 2020...● Diversify income streams for long-term sustainability
○ Focus on the three revenue pies: Govt; Self Generated; Donations○ Explore social enterprises and start thinking and acting commercially
● Seek out synergistic collaborations■ NFP sector■ SME’s and Corporates■ Universities, TAFE’s■ Chambers of Commerce■ Local Councils
● Upskill staff in areas such as:○ Digital, marketing, fundraising, innovation and impact measurement
Key Focus Areas for Charities in 2020...● Ability to unlock capital quickly
○ Mitigate risks and ride out unforeseen difficulties (i.e. COVID-19, bushfires, decline in Government Funding or decline in Philanthropy)
○ Capitalise on opportunities that may present themselves (mergers, acquisitions)● Increased transparency and measurement around performance and outcomes
○ Ability to clearly articulate your outputs and impact (use of infographics)○ Very easy for clients, corporates, donors and government to benchmark you
against your competitors www.acnc.gov.au● Improve relations with the Media
○ You have the best stories and they are the best storytellers○ Drive and inform the conversation around your cause, to increase public
understanding, trust and support of your mission
Key Focus Areas for Charities in 2020...● Increase your use of skilled volunteers
○ University/College/TAFE students○ Volunteering Australia (Go Volunteer), Vollie, Seek Volunteer, Communiteer
● Embrace technology
○ Use a CRM tool (Blackbaud) that allows you to:
■ Better attract, manage and retain clients, donors and corporates
■ Segment and personalise your database based on demographics and client/donor preferences
○ Mobile: SMS/Text giving and smartphone wallets - GiveEasy
○ Donation tap points - Quest Payment Systems
○ Wearable technology - NearField Creative
○ Voice donations - Amazon
Value of Volunteers compared to all forms of Fundraising...Increase your use of skilled volunteers● 3.7m volunteers in
Australia● University/College
students● Corporate partners● Donors● Volunteering
Australia● Vollie● Seek Vounteer● Communiteer
GiveEasy NFP Innovation Index 2019...
03
Systems/ Technology/ IT
03
02
03
Emerging NFP Technology Trends
● 30% of NFP’s use mobile
apps - messenger,
WhatsApp (it’s free)
● 12% use bulk SMS to
communicate with clients
and donors
● 7% use Voice/Speech
recognition
● 5% use AI, Chatbots
● 1% cryptocurrency
Systems/Technology/IT...● Embrace digital technology across all functions of your NFP to
help with:○ Efficiency○ Governance and compliance○ Data security○ Staff retention (by making it easier for staff to focus on key tasks
and not double handling)○ Donor, corporate partner, volunteer and client stewardship
(Fundraising and Marketing)○ Impact measurement
Systems/Technology/IT...● Areas where digital technology can assist:
○ Service Delivery - client management, programmes and projects - Asana and G Suite
○ Fundraising - invest in a CRM tool to better attract, manage and retain donors and corporate partners - Blackbaud
○ Marketing and communication - website, social media platforms, email (Mail Chimp), creative design (Canva)
○ Finance and Accounting○ HR and Payroll - better manage your onboarding, contracts,
payroll, employee engagement, benefits and incentives - Employment Hero
Importance of Data – Blackbaud Data Assets Whitepaper...
03
The Economist: “The world’s most valuable resource is no longer oil but data”
● The collection, storage and management of data underpins the success of the world’s largest organisations – Apple, Facebook, Amazon and Microsoft
● NFP’s are no different and it’s crucial for nurturing donors, clients and partners● The average NFP is missing 49% of their supporters’ phone numbers ● The average NFP has valid email addresses for only 26% of their database● Ensure your database allows for:
○ Comprehensive data capture - contact details, age, interests, activity○ Excellent reporting and easy understanding of the data via alerts and
dashboards○ Segmentation and personalisation based on demographics, interests, etc○ Predictive modelling based on past data to inform decision making○ Automated optimisation via Chatbots and AI
New Fundraising Technology Trends...
02
03
● The Rise of Digital Payments on Social Media and Mobile Fundraising Apps:
○ Apple/Samsung Pay, #donate buttons on FB/Twitter, Round Up, Give Tide, Sipora
● Chatbots and AI – Live chat
● Text Giving and text messaging - Rungopher, GiveEasy
● Wearable technology – NearField Creative
● Voice donations - Amazon
● Embrace Google - Ad Grant, Remarketing, GeoFencing, Google Trends, Smart
Speakers
● Pop-Ups
○ A study of pop-ups found they averaged 3.20% conversion rates
○ If you want to gain new email subscribers or bring on new donors at 3 times the
average rate, start looking at pop-ups
03
NFP Digital advertising budget was spent on:
● 46% new donors acquisition
● 22% branding
● 18% lead generation
● 14% current donors
Don’t forget the $10,000 USD per month Google
Ad Grant
Charities are increasing their Digital Marketing spend
Q&A
NFP Roadmap to Success Webinar Recordings Special Offer
02
03
ALL STAFF ACCESS PASS ONLY $299!
● Highly acclaimed NFP Roadmap to Success Webinar Series:
○ 5 hours of “learn at your own pace” training
○ Packed with resources, practical tips, latest NFP sector research, insights, trends and tools
● Interested? Email: [email protected] or REGISTER HERE
How Can We Help You?Here’s how we can help your charity...
● Promoting your organisation to prospective donors, corporate partners, volunteers and staff through our website www.australiancharityguide.org
● Training and upskilling your staff in areas such as Marketing, Fundraising and Digital via our NFP Boot Camps, Workshops, Seminars, NFP Training and Resource Hub
● Coaching and consulting services for NFP sector professionals across a number of areas including Strategy, Marketing, Fundraising, Digital, Volunteers and Recruitment and our NFP Mentorship Programme
Thank you! Contact info:
Scott LockieCEO | Australian Charity Guide and emPOWER Your Mission Phone: 0434 829 556Email: [email protected]: www.charitytraining.net www.australiancharityguide.org LinkedIn: Connect with me HERE