Barrer & Co can provide comprehensive recommendations regarding the fundraising streams that will be the most suitable for your fundraising goals, and how you can approach and manage these for the best outcomes.
Annual Giving is the annual appeal made to your audiences which seeks to support operational needs. A handful of key funding options are provided for donors to choose from, that will support your organisation in its overall mission.
Annual Giving utilises multiple channels to reach your audiences, including direct mail, website, email, phone and social media solicitations, to drive donations to the identified funds.
It is a key driver for new donor acquisition, as well as providing existing donors the opportunity to give on a regular basis, and upgrade their giving over time. Annual Giving is also a way to identify and moves manage donors through their donor journey to the peak of the fundraising pyramid.
Bequest fundraising requires a different approach to other forms of fundraising; the way the information is communicated to prospects needs to be managed with confidence and diplomacy. This is a long-term funding stream and it will start generating revenue once the donor has passed away and their estate has been distributed.
Historically, many not-for-profit organisations have obtained their largest assets through bequests. There is currently a great opportunity for organisations to create or improve their bequest programmes due to a number of factors:
- The population is aging
- The great transfer of wealth from baby boomers
- Technology and media are making it much easier for New Zealanders to make gifts
- New Zealanders increasingly want to make their mark on the world
Legacy gifts are a valuable fundraising stream because they don’t require an immediate financial outlay from the donor. They are thoroughly planned and are very easy to set up.
Bequest donors are usually motivated by a simple desire to support the organisation, or the wish to create a lasting memorial for themselves or for a loved one. Most donors are likely to have had a previous connection with the organisation before making a bequest, normally in the form of a previous donation. People tend to give to large, established organisations that have good reputation and brand.
Read more about our Bequest Programme service.
Cause-related marketing is a mutually beneficial collaboration between a corporation or business and a not-for-profit organisation in which their respective assets are combined to connect with a range of audiences and communicate the shared values of both organisations.
Not-for-profit organisations benefit from increased fundraising and exposure, growing their ability to reach possible supporters through a company’s customer base. Likewise, corporations that are socially involved benefit from increased brand loyalty and employee morale.
Partnerships with businesses can provide revenue, in-kind products and services, and access to sponsorship opportunities or major donors.
For New Zealand companies, values alignment is typically the number one reason for choosing an organisation to support. Brand fit, staff involvement, the opportunity to showcase their product/service to a desirable market, and being seen as socially responsible are other frequently stated benefits.
Many New Zealand businesses now have a Corporate Social Responsibility (CSR) policy. As part of a CSR policy, businesses typically have three streams through which to financially support not-for-profit organisations:
This is where a business chooses to make a donation to an organisation through their social responsibility scheme. This is considered a philanthropic gift and is generally a one-off gift rather than an ongoing annual gift.
Sponsorship creates a link in the minds of target audiences between the charitable organisation and the brand of the business, its products and services. The sponsorship provides exposure or recognition in a desired context and can serve to increase customer awareness and sales.
Sometimes businesses prefer to provide in-kind support of goods or services rather than cash.
Direct mail fundraising is a form of direct marketing widely used to acquire new donors, to inform and cultivate current donors, and to re-solicit and upgrade the level of their contributions. Direct mail should work in symbiosis with regular giving and directives should made to give in that manner through the newsletter being mailed.
While one part of marketing is the ability to communicate your message clearly, the other side is about building relationships with your audience. It’s important to personalise direct mail whenever possible and ensure the newsletter is relevant to the recipient. If they are a current donor, recognise their relationship and how important their support has been to date. Highlight how they have made a difference.
Your content should lead with a positive, emotively powerful story. Focus on communicating success, not distress. Stories about the plight of an individual tend to be more powerful than those that relate to many. When reading about one individual, it is easier to comprehend at a personal level and see how a difference can be made.
Although revenue generated through events is generally low compared to other fundraising stream options, events offer valuable opportunities for public relations, and community awareness and engagement for day-to-day operations and for capital projects.
These can be events that are managed entirely by your organisation, or run by supporters on your behalf, depending on your organisation’s budget and relationships with volunteers.
Major gifts are higher value one-off gifts, that are considered significant, relative to your organisation and its giving history.
Major donors who make these gifts are prosperous people in the community with an established connection with your organisation, who are ready and able to support you financially in a significant way.
It is worth noting that most times a major donor takes approximately 18 months (and several face-to-face meetings, as well as other points of contact) to make a financial contribution. This means it is important that you start identifying and approaching your major donor prospects early in your capital fundraising campaign.
A typical major donor ideally has to have three components: linkage, interest and the ability to give. These three categories are the foundation behind prospect research and planning ‘the ask.’
To determine a prospect’s linkage to a cause a number of factors related to their giving trends need to be analysed; these include which projects they usually support, how recent their last donation was, how frequently they donate, and the value of their donations. Finding a link or connection between the potential donor and the project is often the key to making initial contact with them.
What issues resonate best with a donor? It’s important to know if the prospect’s interests connect with your purpose. Their interest will be mainly based on their knowledge of the project, and/or their involvement with a similar cause in the past.
The prospect’s ability to contribute will be based on their capacity to give in a single donation at any one time. Researching a potential donor’s capacity to give in order to understand their financial situation is helpful when approaching prospects.
Payroll giving is where employees opt to donate a set amount to registered NFP’s directly from their pay through their company’s payroll. The employer may also choose to match employee payroll giving as part of its corporate social responsibility scheme.
This is an attractive option attracting regular donors as the donation amount is removed from wages before it is received into the employees’ bank account, receipts are not needed as the tax rebate is calculated automatically, and it allows donors to give at a regular and affordable level.
Pledged giving can look quite different depending on the organisation and the project need, but effectively it is a commitment from a donor to give a set amount periodically (often annually) over a long period of time.
Regular giving is an important area to grow since it delivers a steady cash flow over time, providing long-term sustainable revenue and the ability to plan programmes and activities in advance.
Acquiring donors without a clear retention plan can be brand damaging and financially consuming for not-for-profits. The best way to grow this funding stream is to contact prospects directly and engage with them in a meaningful way that allows them to feel connected by the work you do. This way you will achieve genuine connections that will allow you to develop long-term relationships with your donors.
Trusts & Grants
Trust and grant funding can provide significant return on investment for organisations that are doing unique, important work, and for relevant capital projects that make a difference in the community.
They can be time-consuming, but with well-managed plans and well-written applications, this source of funding can prove more than worth doing for one-off or regular funding income. It is key to develop relationships with trustees or grant managers so that they can understand your organsation and the impact their support will have on your cause.
Like to know more? We'd love to help