philip spedding h ead of individual giving and international imc 31st march 2011
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Philip Spedding H ead of Individual Giving and International IMC 31st March 2011 . Arts & Business – Business Network. Our national business membership provides access to pioneering research, international networks, advocacy and opportunities to share best practise. - PowerPoint PPT PresentationTRANSCRIPT
Philip SpeddingHead of Individual Giving and International
IMC31st March 2011
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Arts & Business – Business Network
• Our national business membership provides access to pioneering research, international networks, advocacy and opportunities to share best practise.
• More than 500 UK-based companies benefit from being part of our Business Network, including BP, HSBC, Sky Arts, Deutsche Bank, Toshiba, PriceWaterhouseCoopers, Prudential, Eversheds and Lloyds TSB Commercial Finance.
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Arts & Business – Arts Network
• We work with 1200 arts organisations annually, through our arts membership
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Arts & Business – International Network
• We have links to 24 international territories including China, Abu Dhabi, Canada, Russia, Norway, Hungary, USA, Brazil and South Africa.
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Arts & Business
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What is so special about
your organisation
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Arts & Business
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Where’s the money?
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Arts & Business
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Public vs Private
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Funding - What kinds are there?
• Public• Government• Local Authority
• Private• Sponsorship• Grants• Philanthropic Donations
• Commercial• Trading• Hires• Merchandising• Services
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Funding - Public funding
•Likely to be static at best•Reduction more likely
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Building SecurityHow does Mixed Funding help?
• No single reliance on any one source or decision of one individual.
• Wider involvement from a range of individuals, trusts or companies
• A sense of “shared ownership and endeavour”
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Building Security – Mechanics• Legal structure• Build your own or work with another organisation
• Trustees / Friends / Ambassadors
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Arts & Business
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Public vs Private
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History
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History
“Can I have some more, please Sir?”
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Arts & Business
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Sponsorship
Donations
• The payment to an arts organisation by a business in exchange for agreed benefits such as promotion of the business’ name, its products or services. Sponsorship is often a part of a business’ general promotional expenditure.
17Introduction to Fundraising
Definition of Arts Sponsorship
• The payment to an arts organisation by a business or an individual in expectation of nothing in return
18Introduction to Fundraising
Definition of Arts Donation
Everyone wants something in return.
19Introduction to Fundraising
But...
It is about them
It is not about you.
20Introduction to Fundraising
Fundraising...
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Arts & Business
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• Corporate• Foundation• Individual
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Traditional Sponsorship – M&B
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Content Sponsorship – Classic FM
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Connections – Morgan Stanley
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International Sponsorship – CUP
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International Sponsorship - Finnair
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International Sponsorship – Rolls Royce
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Arts Based Training – Rolls Royce
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Reputation - BP
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Partnerships
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Arts & Business
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The Future
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Gorillas
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Gorillas
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Gorilla & Cadburys
• Sales increased by 9%
• Perception of the brand improved by 20%
• Creative direction “founded upon the notion that all communications should be as effortlessly enjoyable as eating the bar itself.”
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Arts & Business
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The Modern Dynamic and The Consumer
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The modern dynamic & the Consumer
Nomura Institute
Four eras of economic activity:
1. Agricultural
2. Industrial
3. Informational
4. Creative
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The modern dynamic & the Consumer
Daniel Pink A Whole New Mind
"Logical and precise, left-brain thinking gave us the Information Age.
Now comes the Conceptual Age — ruled by artistry, empathy, and emotion.“
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The modern dynamic & the Consumer
The Experience Economy
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Computers
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Shoes
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Circuses
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Cities
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Culture as...
• Entertainment
• Brand
• Location
• Content
• Creativity
• Authenticity
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Key targets
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• Customers
• Staff
• Community
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Culture as Entertainment – Eurostar
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Sponsorship with twist - Travelex
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The Travelex £10 ticket season
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Sponsorship Plus - V&A & HSBC
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Hewlett Packard & National Gallery
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Hewlett Packard & National Gallery
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Hewlett Packard & National Gallery
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Culture as Entertainment
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Culture as Entertainment
Jameson & Halloween - Film
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Secret Cinema
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Secret Cinema
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Culture as Location – Sony Playstation
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Edding
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Edding
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Culture as Brand – V&A
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Culture as Brand – UAE
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Creativity - Youtube
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Puma & Serpentine
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Culture as...
• Entertainment
• Brand
• Location
• Content
• Creativity
• Authenticity
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Culture and Challenges
The best relationships involve:
• Understanding
• Vision
• Creativity
• Measurement
• Openness
• Willingness to share
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Arts & Business
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• Corporate• Foundation• Individual
Everyone wants something in return.
67Introduction to Fundraising
Remember...
It is about them
It is not about you.
68Introduction to Fundraising
Fundraising...
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Trusts & Foundations
• 8,800 grant-making trusts and foundations in the UK, giving around £2.7 billlion per year to charities, including the arts.
• Each trust or foundation has been created with a specific remit for their area of giving
• Most Trusts and Foundations are registered charities and derive their income from an endowment which provides tax exempt income to support their grant giving activity.
• Some secure income from company profits or a high profile media appeal, e.g. Comic Relief or Virgin Unite.
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Trusts & Foundations
• Trustees
• Guidelines
• What Trusts support
• What Trusts don’t support
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Approaching Trusts
• Application procedures
• Timescales – Trusts’ funding cycles
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Arts & Business
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• Corporate• Foundation• Individual
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HNWI
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HNWI• Assets $1m (av. $4m)• Growth 7.7% annually• Total Wealth by ’12 $59,100,000,000,000• HNWI in UK 495,070 (2.1%)• CLEWI 6%
Caius Cilnius Maecenas
Philanthropists
Andrew Carnegie
Henry Ford John D Rockefeller
John Paul Getty
Philanthropists
François Pinault
Alberto Vilar
John Studzinski
Dame Vivien Duffield
Philanthropists
Guy & Miriam Ullens
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Crowdfunding
• Kickstarter.com• Project based• Attracts a different
demographic• Network for Good:
Relationships still key
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Arts & Business
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How do you get money?
The 7 Steps of Fundraising
• Identify• Research• Plan• Involve• Ask• Conclude• Reciprocate
The 7 8 Steps of FundraisingX• Prepare
Prepare
Feasibility phase:
• Need for money?• Value for money?• When do you need money?
• Internal buy-in? A good board?• Why is your organisation best?• Staff skills?• Potential support?
• Enough resources?
Case for Support
1. A clearly defined need for support
2. The documentation outlining: • Who you are• What you do• Why that is important
• Clear rationale behind giving• The selling document• An information tool, not the “ask”• Something visual to leave behind• Ensures all staff are on message
• What’s yours?
Case for Support
1. Some quotes to engender trust
2. Clear description of your organisation in supporter focused language• Organisation statement• Legal structure• Finances
3. Artistic Programme
4. Funding
5. How people/organisations can engage with you
The 8 Steps of Fundraising
• Prepare• Identify• Research• Plan• Involve• Ask• Conclude• Reciprocate
Identify Targets - Individuals
Internal contacts:
• Audience/ event guests• Members• Previous donors/ sponsors• Address Lists (Shop – Box Office)
• Board/ staff contacts
Identify Targets - Individuals
External contacts:
•Existing supporters’ peers•Typical social/ work circles•Profiles in magazines•Keyword searches•Media appearances
• Previous sponsors• Corporate members• Staff contacts (including
volunteers)• Board contacts• Business contacts (suppliers,
contractors etc.)• Audience members
Identify Targets - Companies
The 8 Steps of Fundraising
• Prepare• Identify• Research• Plan• Involve• Ask• Conclude• Reciprocate
Research
Individuals
Groups of people
Businesses
Researching IndividualsInformation to find…
• Giving history• Wealth / Ability to give• Interests• Family background• Who they know• Link with your
organisationBy…
• Asking peers• Friends / social circle• Media• Research agency
N.B. Usea database
Researching Groups
Information to find…
• Social Circles• Wealth / Ability to give• Interests
By…
• Questionnaires• Focus Groups• Other memberships in area (the market place)
• Go walkabout• Annual Reports• National Memberships:
• Business in the Community members www.BITC.org.uk
• Confederation of British Industry• Institute of Directors
• Local groupings• Chambers of Commerce• Rotary International
• Local Authority
Researching Business
Researching Business
• Internet and Online Resources• Google• Sponsorship News• companygiving.org.uk• Arts & Business websitewww.artsandbusiness.org.uk
Researching Business
• What is your project’s USP?• Who are your audience?• What is the business’s target
customer?• Do you have similar brand values?• How does the business promote
itself?
The 8 Steps of Fundraising
• Prepare• Identify• Research• Plan• Involve• Ask• Conclude• Reciprocate
Plan
Fundraising plan:
1.Internal input (from who?)2.The need3.Timing4.Resources you need5.Communications/ events6.Budget7.Benefits on offer (cost/ value)8.Target income … triangle of gifts9.Benchmarks
Sponsorship Pricing
•How NOT to do it ...
Cost of staging event (£10,000)
Ticket Sales £6,000
Subsidy £1,500
Donation £500 £8,000
SHORTFALL (£2,000)
Therefore, sponsorship = £2,000
Sponsorship Price Considerations
• Benefits Package• Marketing / PR
Campaign• Audience Profile• Reputation• Unique Selling Points• Relevance to business• Timing
VALUEnot
COST
The 8 Steps of Fundraising
• Prepare• Identify• Research• Plan
• Involve• Ask• Conclude• Reciprocate
Involve
How/ what will they learn about your work?• Intentional and unintentional
Involve them further• Active / Passive involvement
Moving from “Involve” to “ask”• Invite to event
• One-to-one meeting with influencer• Phone call
•Who or what is your key influencer?
The 8 Steps of Fundraising
• Prepare• Identify• Research• Plan
• Involve• Ask• Conclude• Reciprocate
Ask - Individuals
How are they asked?• Donation box• Letter• Event• One-to-one meeting
The ask needs to be:• Clear• Specific• Immediate• Unambiguous• Easy to follow through with gift
Ask - Companies
- 1 -Prepareproposal
- 2 -Telephone
enquiry- 3 -
Writtenapproach
- 5 -First
meeting
- 4 -Telephonefollow up
Ask – Companies - Proposal
Golden Rules:• Keep it short and to the
point• Answer the question:
• “Why should the organisation partnership with this project?”
• Always keep the initiative
Ask – Companies - Proposal
• Interesting title page• The project• Who you are and what
you do• Your audience• Publicity• Benefits to sponsor• Sponsorship fee (plus
VAT)
SELLINGnot
ASKING
Ask – Companies - Proposal
SELLINGnot
ASKING
TIPS:• Short and easy to read
• Scan for arts language
• Test it with a third party
• Samples and leaflets
(keep to minimum)
• Creatively presented
- stand out from the crowd!
The Meeting
•PREPARE• Do your homework -
know the company• Prepare your position
•EXPLORE• Ask questions &
listen to the answers• Make links
•PROPOSE• Identify common ground• If giving concessions lead
with theirs, not yours
•AGREE• Know when to agree &
close the deal• Follow up in writing
Dealing with “No”
• Understand why• Invite contact to a
cultivation event • Try again in 6, 9 or 12
months• Approach more than one
prospect at a time
The 8 Steps of Fundraising
• Prepare• Identify• Research• Plan
• Involve• Ask• Conclude• Reciprocate
Conclude
Letters to individuals:• Thanks for donation / pledge• Reiterate agreement (dates / amounts)• Tie in to upcoming events• Link to outcomes• Endorse reasons for giving
Beware of cognitive dissonance
Public thanks• Print (own / external)• Speech• Events
Reciprocate
• Make them part of the family• Invite to lunch/ exclusive events• Good news / Bad news• Benefits• Appropriate to commitment
The 8 Steps of Fundraising
• Prepare• Identify• Research• Plan• Involve• Ask• Conclude• Reciprocate
“I’m sure I have been a ‘Friend’ or a ‘Patron’ along the way and have followed the usual steps in giving more and getting more involved - being brought closer in - but this seemed a natural development and I didn’t feel imposed upon at any point...
“…Sometimes I think this was achieved through professionalism - sometimes exactly the opposite - sometimes the staff seem quite amateur...”
“… but charming and well-meaning and passionate and that gets the same result”
“… but charming and well-meaning and passionate and that gets the same result”
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Culture as Authenticity
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Culture as Authenticity
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Culture as Authenticity
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Eyebrows
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Eyebrows
Contact Us:
Web www.artsandbusiness.org.ukEmail philip.spedding@
artsandbusiness.org.uk
Founded 1976
Today• 1,300 arts members• 600 business members• Offices across the UK
Turnover: £7m
Royal Opera House Almeida Theatre
Punchdrunk Quicksilver
Royal Opera House Almeida Theatre
Punchdrunk Quicksilver
31%
42%
27%
SalesState, Box Office and Giving
27%
54%
19%
Sales
71%
28%1%
Sales
89%
11%
Sales
£90m £3.7m
£353k£817k